Labor Relations Reviewer

LABOR RELATIONS
Atty. Peter Joey B. Usita

A.Y. 2018 - 2019
MIDTERMS No. The Labor Arbiter will not automatically have jurisdiction over a case for the sole
reason of the four-fold test.
How do you determine the existence of an employer – employee relationship? The Supreme Court ruled in the Bombo Radyo case that the use of this test is not solely
The elements to determine the existence of an employer-employee relationship are: limited to the NLRC. The DOLE Secretary, or his or her representatives, can utilize the
1. The selection and engagement of an employee same test. The Supreme Court likewise provided the rules to be followed as follows:
2. The payment of wages 1. If a complaint if brought before the DOLE to give effect to labor standards
3. The power of dismissal provisions of the Labor Code or other labor legislation, and there is a finding in
4. The employers’ power to control the employee on the means and methods by DOLE that there exists an employee-employer relationship, DOLE exercises
which the work is accomplished jurisdiction to the exclusion of the NLRC
2. If DOLE finds no employer-employee relationship, the jurisdiction is with the
Why is it important to determine the existence of an employer – employee NLRC
relationship? 3. If a complaint is filed with the DOLE, and is accompanied by a claim of
It is important to determine the existence of an employer-employee relationship because: reinstatement, the jurisdiction is with the Labor Arbiter under Art 217(3) of the
1. It determines the rights of the employees and employers (such as hours of work, Labor Code
overtime pay, benefits under the Social Security Law, among others) 4. If a complaint is filed with the NLRC, and there is still an existing employer-
2. It determines the proper jurisdiction to try and decide the case employee relationship, the jurisdiction is properly with DOLE
X is the City of Manila, Y is the employee of X who was illegally dismissed. Where Sonza v. ABS – CBN (G.R. No. 1318051; June 10, 2004)
will Y file the complaint? FACTS:
In a case where the employer is a government agency or a government instrumentality, ABS-CBN signed an Agreement with the Mel and Jay Management and Development
such as the City of Manila in this case, the employee Y, who was illegally dismissed Corporation ("MJMDC"). MJMDC agreed to provide SONZA's services exclusively to
may file a complaint at the Civil Service Commission or CSC. ABS-CBN as talent for radio and television. ABS-CBN agreed to pay for SONZA's
services a monthly talent fee of P310,000 for the first year and P317,000 for the second
X employer of Y dismisses him. Y files a case for illegal dismissal, where will he and third year of the Agreement. ABS-CBN would pay the talent fees on the 10th and
file? 25th days of the month.
Y should file the case with the Labor Arbiter. Citing Rule IV, Sec 1(b) of the 2011
NLRC Rules of Procedure which provides “Labor Arbiters shall have original and Sonza resigned in view of recent events concerning his programs and career. He
exclusive jurisdiction to hear and decide cases involving all workers, whether considered the acts of the station violative of the Agreement.
agricultural or non-agricultural… involving termination disputes”
SONZA filed a complaint against ABS-CBN before the DOLE for unpaid talent fees,
Power of selection 13th month pay, separation pay, service incentive leave, signing bonus, travel allowance,
The power of selection is the determination of the qualifications and fitness of workers and amounts due under the Employee Stock Option Plan. ABS-CBN filed a Motion to
for hiring which is the prerogative of the employer Dismiss on the ground that no employer-employee relationship existed between the
parties. Labor Arbiter dismissed the complaint for lack of jurisdiction. NLRC affirmed
If an employer – employee relationship is established through the 4 – fold test, will LA’s decision.
the Labor Arbiter automatically have jurisdiction?
ISSUE: Whether or not an employer-employee relationship existed between Sonza and
ABS-CBN
SAN BEDA COLLEGE OF LAW – MENDIOLA 1
ABRILLO – ANGARA – ARCE – ARGONZA – AREÑO – BARNACHEA – BERNAL – BONETE - CABRAL – CAJIGAL – CAPUCHINO – CHUA – DE LA PEÑA - DELA CRUZ – DIMACULANGAN – HILARIO – HIQUIANA – KASEY – LLEDO – LUZURIAGA - MARIANO – MAWAK - MIGUEL – MIRABEL –
PADERAYON - QUISMORIO – ROCES – ROMANO – SANGKAL - SANTOS, E – SANTOS, L – TORRES – UNARCE - VENENCIANO – VISTA
LABOR RELATIONS
A.Y. 2018 - 2019
Salaries, separation pay, service incentive leave pay, 13th month pay, signing bonus,
travel allowance, amount due under Employees Stock Option Plan (ESOP)
a. Was there an employer – employee relationship in this case? i. Where was the case first filed? – DOLE
No, there was no employer-employee relationship. Sonza is not an employee but an
independent contractor. j. SC observation regarding payment of wages of Sonza (talent fee)
Whatever benefits SONZA enjoyed arose from contract and not because of an employer-
b. If he was an independent contractor, what would be the effect of him filing employee relationship. SONZA's talent fees, amounting to P317,000 monthly in the
with the Labor Arbiter? second and third year, are so huge and out of the ordinary that they indicate more an
If he was an independent contractor, then the complaints filed by him with the Labor independent contractual relationship rather than an employer-employee relationship
Arbiter would be dismissed for lack of jurisdiction. Sonza’s claims are all based on the
May 1994 Agreement and stock option plan, and not on the Labor Code, since there is k. Ruling of the LA, NLRC, CA and SC
no employer-employee relationship. In effect, SONZA's cause of action is for breach of LA: NO. A “talent” cannot be considered as an employee by reason of the peculiar
contract which is intrinsically a civil dispute cognizable by the regular courts. circumstances surrounding the engagement of his services. Complainant was engaged
by respondent by reason of his peculiar skills and talent as a TV host and a radio
c. In resolving the case of Sonza, what test was applied applied? broadcaster. Unlike an ordinary employee, he was free to perform the services he
The 4-fold test: undertook to render in accordance with his own style.
1. The selection and engagement of the employee;
2. The payment of wages; NLRC: NO. We find it erroneous to assert that MJMDC is a mere labor-only’ contractor
3. The power of dismissal; and of ABS-CBN such that there exist[s] employer-employee relationship between the latter
4. The employer's power to control the employee on the means and methods by and Mr. Sonza. On the contrary, We find it indubitable, that MJMDC is an agent, not of
which the work is accomplished. ABS-CBN, but o the talent/contractor Mr. Sonza, as expressly admitted by the latter and
MJMDC in the May 11994 Agreement.
d. What law was applied?
Sonza’s contractual relations with ABS-CBN are founded on the New Civil Code, rather CA: NO. The CA affirmed the ruling of the NLRC. The existence of an employer-
than the Labor Code. Instead of merely resigning from ABS-CBN, Sonza served upon employee relationship between Sonza and ABS-CBN is a factual question that is within
the ABS-CBN a 'notice of rescission' of Agreement the jurisdiction of the NLRC to resolve.
e. Reason for the cancellation of his show SC: NO. Case law has consistently held that the elements of an employer-employee
Breach of contract. Sonza considered the acts of the station as violative of the relationship are: (a) the selection and engagement of the employee; (b) the payment of
Agreement. wages; (c) the power of dismissal; and (d) the employer’s power to control the employee
on the means and methods by which the work is accomplished. The last element, the so-
f. Nature of the complaint – Action for alleged breach of contract called control test, is the most important element
g. What prompted Sonza to file a case against ABS – CBN? A. Selection and Engagement of Employee
ABS-CBN ceased in airing his show, Mel & Jay, which sonza considers as violative or ABS-CBN engaged SONZAs services to co-host its television and radio programs
a breach of the Agreement because of SONZAs peculiar skills, talent and celebrity status.
h. What are the claims in the complaint?

LABOR RELATIONS
A.Y. 2018 - 2019
The specific selection and hiring of SONZA, because of his unique skills, talent and
celebrity status not possessed by ordinary employees, is a circumstance indicative, but Last, being an exclusive talent does not by itself mean that SONZA is an employee of
not conclusive, of an independent contractual relationship. If SONZA did not possess ABS-CBN. Even an independent contractor can validly provide his services exclusively
such unique skills, talent and celebrity status, ABS-CBN would not have entered into to the hiring party. In the broadcast industry, exclusivity is not necessarily the same as
the Agreement with SONZA but would have hired him through its personnel department control.
just like any other employee.
Jurisdiction of the Labor Arbiter
B. Payment of Wages Under Article 224 of the Labor code, paragraph (a):
All the talent fees and benefits paid to SONZA were the result of negotiations that led
to the Agreement. Whatever benefits SONZA enjoyed arose from contract and not Except as otherwise provided under this Code, the Labor Arbiters shall have original
and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after
because of an employer-employee relationship.
the submission of the case by the parties for decision without extension, even in the
absence of stenographic notes, the following cases involving all workers, whether
SONZA’s talent fees, amounting to P317,000 monthly in the second and third year, are agricultural or non-agricultural:
so huge and out of the ordinary that they indicate more an independent contractual 1. Unfair labor practice cases;
relationship rather than an employer-employee relationship. ABS-CBN agreed to pay 2. Termination disputes;
SONZA such huge talent fees precisely because of SONZA’s unique skills, talent and 3. If accompanied with a claim for reinstatement, those cases that workers may file
celebrity status not possessed by ordinary employees. involving wages, rates of pay, hours of work and other terms and conditions of
employment;
C. Power of Dismissal 4. Claims for actual, moral, exemplary and other forms of damages arising from the
The manner by which SONZA terminated his relationship with ABS-CBN is immaterial. employer-employee relations;
Whether SONZA rescinded the Agreement or resigned from work does not determine 5. Cases arising from any violation of Article 264 of this Code, including questions
his status as employee or independent contractor. involving the legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and
D. Power of Control maternity benefits, all other claims arising from employer-employee relations,
Applying the control test to the present case, we find that SONZA is not an employee including those of persons in domestic or household service, involving an amount
but an independent contractor. exceeding five thousand pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement.
First, ABS-CBN was not involved in the actual performance that produced the finished
product of SONZAs work. ABS-CBN did not instruct SONZA how to perform his job. a. What if the claim exceeds 5,000 pesos?
ABS-CBN merely reserved the right to modify the program format and airtime schedule Regardless of the amount, if there is still an Er-Ee relationship existing at the time of the
for more effective programming. ABS-CBNs sole concern was the quality of the shows filing of the complaint, the jurisdiction is with the Regional Director. The Labor Arbiter
and their standing in the ratings. Clearly, ABS-CBN did not exercise control over the acquires jurisdiction if the Er-Ee relationship no longer exists either because the
means and methods of performance of SONZAs work. employee has resigned, retired, or has been dismissed by the employer.
Second, SONZA failed to show that these rules controlled his performance. We find that b. Effect of reinstatement
these general rules are merely guidelines towards the achievement of the mutually In case of reinstatement, the employee shall be entitled to backwages for the period
desired result, which are top-rating television and radio programs that comply with which he was “illegally dismissed”. However, if the reinstatement of the employee is no
standards of the industry.
LABOR RELATIONS
A.Y. 2018 - 2019
longer practicable, the employees shall be entitled to backwages of the unexpired portion FACTS:
of his employment contract. Private respondent Jandeleon Juezan filed a complaint against petitioner with the
Department of Labor and Employment (DOLE) Regional Office No. VII, Cebu City, for
illegal deduction, nonpayment of service incentive leave, 13th month pay, premium pay
Article 129 of the Labor Code for holiday and rest day and illegal diminution of benefits, delayed payment of wages
Recovery of wages, simple money claims and other benefits. Upon complaint of any and noncoverage of SSS, PAG-IBIG and Philhealth. After the conduct of summary
interested party, the Regional Director of the Department of Labor and Employment or investigations, and after the parties submitted their position papers, the DOLE Regional
any of the duly authorized hearing officers of the Department is empowered, through Director found that private respondent was an employee of petitioner, and was entitled
summary proceeding and after due notice, to hear and decide any matter involving the to his money claims. Petitioner sought reconsideration of the Director's Order, but failed.
recovery of wages and other monetary claims and benefits, including legal interest, On appeal to the DOLE Secretary, petitioner denied once more the existence of
owing to an employee or person employed in domestic or household service or employer-employee relationship|||dismissed petitioner's appeal on the ground that
househelper under this Code, arising from employer-employee relations: Provided, That petitioner submitted a Deed of Assignment of Bank Deposit instead of posting a cash or
such complaint does not include a claim for reinstatement: Provided further, That the surety bond. When the matter was brought before the CA, where petitioner claimed that
aggregate money claims of each employee or househelper does not exceed Five it had been denied due process, it was held that petitioner was accorded due process as
thousand pesos (P5,000.00). The Regional Director or hearing officer shall decide or it had been given the opportunity to be heard, and that the DOLE Secretary had
resolve the complaint within thirty (30) calendar days from the date of the filing of the jurisdiction over the matter, as the jurisdictional limitation imposed by Article 129 of
same. Any sum thus recovered on behalf of any employee or househelper pursuant to the Labor Code on the power of the DOLE Secretary under Art. 128 (b) of the Code had
this Article shall be held in a special deposit account by, and shall be paid on order of, been repealed by Republic Act No. (RA) 7730.
the Secretary of Labor and Employment or the Regional Director directly to the
employee or househelper concerned. Any such sum not paid to the employee or a. Who are the parties?
househelper because he cannot be located after diligent and reasonable effort to locate Petitioner: People’s Broadcasting Service (Bombo Radyo Phils., Inc.)
him within a period of three (3) years, shall be held as a special fund of the Department Respondents: Secretary of Labor and Employment; Regional Director, DOLE Region
of Labor and Employment to be used exclusively for the amelioration and benefit of VII and Jandeleon Juezan
workers.
b. Did he file the case before the Court?
Any decision or resolution of the Regional Director or hearing officer pursuant to this Juezan filed a complaint against People’s Broadcasting Service with the DOLE Regional
provision may be appealed on the same grounds provided in Article 223 of this Code, Office No. VII, Cebu City.
within five (5) calendar days from receipt of a copy of said decision or resolution, to the
National Labor Relations Commission which shall resolve the appeal within ten (10) c. What division of the NLRC?
calendar days from the submission of the last pleading required or allowed under its The complaint was filed with the DOLE Regional Office No. VII, Cebu City.
rules.
d. How did the ruling affect the jurisdiction of the Labor Arbiter?
The Secretary of Labor and Employment or his duly authorized representative may If a complaint is filed with the DOLE, and it is accompanied by a claim for
supervise the payment of unpaid wages and other monetary claims and benefits, reinstatement, the jurisdiction is properly with the Labor Arbiter, under Art 217(3),
including legal interest, found owing to any employee or househelper under this Code. which provides that the LA has original and exclusive jurisdiction over those cases
(As amended by Section 2, Republic Act No. 6715, March 21, 1989) involving wages, rates of pay, hours of work, and other terms and conditions of
employment, if accompanied by a claim for reinstatement.
PBC v. Secretary of Labor
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A.Y. 2018 - 2019
e. 3 legal principles to remember in this case the NLRC. The DOLE must have the power to determine whether or not an employer-
1. Under Art. 128(b) of the Labor Code, the DOLE is fully empowered to make a employee relationship exists, and from there to decide whether or not to issue
determination as to the existence of an employer-employee relationship in the compliance orders in accordance with Art. 128(b) of the Labor Code, as amended by
exercise of its visitorial power, subject to judicial review, not review by the NLRC. RA 7730.
2. Art 128(b) has been amended to expand the powers of the DOLE Secretary and The determination of the existence of an employer-employee relationship by the DOLE
his duly authorized representatives by RA 7730. In these cases, the Court resolved must be respected. The expanded visitorial and enforcement power of the DOLE granted
that DOLE had the jurisdiction, despite the amount of the money claims involved. by RA 7730 would be rendered nugatory if the alleged employer could, by the simple
3. expedient of disputing the employer- employee relationship, force the referral of the
a. If a complaint is brought before the DOLE to give effect to the labor standard matter to the NLRC. The Court issued the declaration that at least a prima facie showing
provisions and there is a finding by the DOLE that there is an existing er-ee of the absence of an employer-employee relationship be made to oust the DOLE of
relationship, DOLE exercises jurisdiction to the exclusion of NLRC. jurisdiction. But it is precisely the DOLE that will be faced with that evidence, and it is
b. If the DOLE finds that there is no er-ee relationship, the jurisdiction is properly the DOLE that will weigh it, to see if the same does successfully refute the existence of
with the NLRC an employer-employee relationship. (PEOPLE'S BROADCASTING (BOMBO
c. If a complaint is filed with the DOLE, and it is accompanied by a claim for RADYO PHILS., INC.) vs. SECRETARY OF DOLE G.R. No. 179652)
reinstatement, the jurisdiction is properly with the Labor Arbiter, under Art
217(3) Right to control means and methods or right to control the result, what happens?
d. If a complaint is filed with the NLRC, and there is an existing er-ee a. What law would govern?
relationship, the jurisdiction is properly with the DOLE When the control test is not sufficient to give a complete picture of the relationship
between the parties, two- tiered test must be applied. The proper standard of economic
Does the Regional Director have the power to determine Employer – employee dependence is whether the worker is dependent on the alleged employer for his
relationship? continued employment in that line of business.
YES. No limitation in the law was placed upon the power of the DOLE to determine the
existence of an employer-employee relationship. No procedure was laid down where the There are instances when, aside from the employers power to control the employee with
DOLE would only make a preliminary finding, that the power was primarily held by the respect to the means and methods by which the work is to be accomplished, economic
NLRC. The law did not say tht DOLE would first seek the NLRC’s determination of the realities of the employment relations help provide a comprehensive analysis of the true
existence of an er-ee relationship, or that should the existence of the er-ee relationship classification of the individual, whether as employee, independent contractor, corporate
be disputed, the DOLE would refer the matter to the NLRC. The DOLE must have the officer or some other capacity. The better approach would therefore be to adopt a two-
power to determine whether or not an er-ee relationship exists, and from there to decide tiered test involving: (1) the putative employer’s power to control the employee with
whether or not to issue compliance orders in accordance with Art. 128(b) of the Labor respect to the means and methods by which the work is to be accomplished; and (2) the
Code, as amended by RA 7730. underlying economic realities of the activity or relationship.
How was the visitorial power expanded? The determination of the relationship between employer and employee depends upon
No limitation in the law was placed upon the power of the DOLE to determine the the circumstances of the whole economic activity, such as: (1) the extent to which the
existence of an employer employee relationship. No procedure was laid down where the services performed are an integral part of the employers business; (2) the extent of the
DOLE would only make a preliminary finding, that the power was primarily held by the workers investment in equipment and facilities; (3) the nature and degree of control
NLRC. The law did not say that the DOLE would first seek the NLRC’s determination exercised by the employer; (4) the workers opportunity for profit and loss; (5) the
of the existence of an employer-employee relationship, or that should the existence of amount of initiative, skill, judgment or foresight required for the success of the claimed
the employer-employee relationship be disputed, the DOLE would refer the matter to independent enterprise; (6) the permanency and duration of the relationship between the
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A.Y. 2018 - 2019
worker and the employer; and (7) the degree of dependency of the worker upon the employer-employee relationship, the jurisdiction is properly with the NLRC. If a
employer for his continued employment in that line of business. complaint is filed with the DOLE, and it is accompanied by a claim for reinstatement,
the jurisdiction is properly with the Labor Arbiter, under Art. 217(3) of the Labor Code,
It must be taken into account that the two-tiered test is not applied automatically or which provides that the Labor Arbiter has original and exclusive jurisdiction over those
immediately. The same is only to be applied when there is a clear ambiguity, doubt or cases involving wages, rates of pay, hours of work, and other terms and conditions of
difficulty in using the four-fold test solely. (ANGELINA FRANCISCO vs. employment, if accompanied by a claim for reinstatement. If a complaint is filed with
NATIONAL LABOR RELATIONS COMMISSION G.R. No. 170087) the NLRC, and there is still an existing employer-employee relationship, the jurisdiction
is properly with the DOLE. The findings of the DOLE, however, may still be questioned
b. Why is the power to control important? through a petition for certiorari under Rule 65 of the Rules of Court. (PEOPLE'S
The control test is the most important test our courts apply in distinguishing an employee BROADCASTING (BOMBO RADYO PHILS., INC.) vs. SECRETARY OF
from an independent contractor. This test is based on the extent of control the hirer DOLE G.R. No. 179652)
exercises over a worker. The greater the supervision and control the hirer exercises, the
more likely the worker is deemed an employee, and the less control the hirer exercises, If there is power to control, does that mean there is automatically an employer –
the more likely the worker is considered an independent contractor. (JOSE Y. SONZA employee relationship?
vs. ABS-CBN BROADCASTING CORPORATION G.R. No. 138051) Yes. As held in Sonza vs. ABS-CBN Broadcasting Corporation, the greater the
supervision and control the hirer exercises, the more likely the worker is deemed an
If there is an Employer – employee relationship based on 4 fold test, does LA always employee. On the contrary, the less control the hirer exercises, the more likely the
have jurisdiction? worker is considered an independent contractor.
There is a view that despite Art. 128(b) of the Labor Code, as amended by RA 7730,
there is still a threshold amount set by Arts. 129 and 217 of the Labor Code when money What if there is a problem as to the determination of whether the alleged employer
claims are involved, i.e., that if it is for PhP 5,000 and below, the jurisdiction is with the has power to control, is there any other way to determine an employer – employee
regional director of the DOLE, under Art. 129, and if the amount involved exceeds PhP relationship?
5,000, the jurisdiction is with the labor arbiter, under Art. 217. The view states that Yes. We apply the two-tiered approach laid down in the case of Francisco vs. National
despite the wording of Art. 128(b), this would only apply in the course of regular Labor Relations Commission.
inspections undertaken by the DOLE, as differentiated from cases under Arts. 129 and
217, which originate from complaints. There are several cases, however, where the In certain cases the control test is not sufficient to give a complete picture of the
Court has ruled that Art. 128(b) has been amended to expand the powers of the DOLE relationship between the parties, owing to the complexity of such a relationship where
Secretary and his duly authorized representatives by RA 7730. In these cases, the Court several positions have been held by the worker. There are instances when, aside from
resolved that the DOLE had the jurisdiction, despite the amount of the money claims the employers power to control the employee with respect to the means and methods by
involved. Furthermore, in these cases, the inspection held by the DOLE regional director which the work is to be accomplished, economic realities of the employment relations
was prompted specifically by a complaint. Therefore, the initiation of a case through a help provide a comprehensive analysis of the true classification of the individual,
complaint does not divest the DOLE Secretary or his duly authorized representative of whether as employee, independent contractor, corporate officer or some other capacity.
jurisdiction under Art. 128(b).
The better approach would therefore be to adopt a two-tiered test involving:
To recapitulate, if a complaint is brought before the DOLE to give effect to the labor 1. The putative employer’s power to control the employee with respect to the means
standards provisions of the Labor Code or other labor legislation, and there is a finding and methods by which the work is to be accomplished; and
by the DOLE that there is an existing employer-employee relationship, the DOLE 2. The underlying economic realities of the activity or relationship. (Francisco vs.
exercises jurisdiction to the exclusion of the NLRC. If the DOLE finds that there is no NLRC)
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2. if in the affirmative; whether petitioner was illegally dismissed

Is there a Labor Code provision on the four-fold test? – There is none.
Why do we apply the four-fold test if it is not found on the Labor Code? RULING:
Jurisprudence has laid down the basis in determining employee-employer relationship. 1. YES. In this jurisdiction, there has been no uniform test to determine the existence
It is not the Labor Code but court rulings that explain the indicators or tests of an of an employer-employee relation. Generally, courts have relied on the so-called
employer-employee relationship. right of control test where the person for whom the services are performed reserves
a right to control not only the end to be achieved but also the means to be used in
Does the Labor Code define an employer or employee? What about the employer reaching such end. In addition to the standard of right-of-control, the existing
– employee relationship? economic conditions prevailing between the parties, like the inclusion of the
Yes. Under Art. 219(e), an “employer” includes any person acting in the interest of an employee in the payrolls, can help in determining the existence of an employer-
employer, directly or indirectly. The term shall not include any labor organization or employee relationship.
any of its officers or agents except when acting as employer. On the other hand, under
Art. 219(f), an “employee” includes any person in the employ of an employer. The term By applying the control test, there is no doubt that petitioner is an employee of Kasei
shall not be limited to the employees of a particular employer, unless the Code so Corporation because she was under the direct control and supervision of Seiji Kamura,
explicitly states. It shall include any individual whose work has ceased as a result of or the corporations Technical Consultant. She reported for work regularly and served in
in connection with any current labor dispute or because of any unfair labor practice if various capacities as Accountant, Liaison Officer, Technical Consultant, Acting
he has not obtained any other substantially equivalent and regular employment. Manager and Corporate Secretary, with substantially the same job functions, that is,
rendering accounting and tax services to the company and performing functions
Employer-employee relationship is not defined under the Labor Code. necessary and desirable for the proper operation of the corporation such as securing
business permits and other licenses over an indefinite period of engagement.
Francisco v. NLRC
FACTS: Under the broader economic reality test, the petitioner can likewise be said to be an
Petitioner Angelina Francisco was hired by respondent Kasei Corporation during its employee of respondent corporation because she had served the company for six years
incorporation stage as Accountant and Corporate Secretary and later as Liaison Officer. before her dismissal, receiving check vouchers indicating her salaries/wages, benefits,
Subsequently she was also designated Acting Manager until she was replaced by Liza 13th month pay, bonuses and allowances, as well as deductions and Social Security
Fuentes, but was assured by the company that she was still connected as Technical contributions from August 1, 1999 to December 18, 2000. When petitioner was
Consultant. Thereafter, Kasei Corporation reduced petitioner’s salary by P 2,500 a
month until it was later withheld despite repeated follow-ups. Petitioner once again designated General Manager, respondent corporation made a report to the SSS signed
asked for her salary but was informed that she is no longer connected with the company. by Irene Ballesteros. Petitioners membership in the SSS as manifested by a copy of the
Petitioner then no longer reported to work and filed an action for constructive dismissal SSS specimen signature card which was signed by the President of Kasei Corporation
before the Labor Arbiter. Respondent Kasei Corporation averred that petitioner is not and the inclusion of her name in the on-line inquiry system of the SSS evinces the
their employee as she performed her work at her own discretion without their control existence of an employer-employee relationship between petitioner and respondent
and supervision. Both the Labor Arbiter and NLRC tribunal found for petitioner. CA corporation.
reversed the decision.
Based on the foregoing, there can be no other conclusion that petitioner is an employee
ISSUES:
of respondent Kasei Corporation. She was selected and engaged by the company for
1. Whether there was an employer-employee relationship between petitioner and
compensation, and is economically dependent upon respondent for her continued
private respondent Kasei Corporation; and
employment in that line of business. Her main job function involved accounting and tax
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services rendered to respondent corporation on a regular basis over an indefinite period necessary and desirable for the proper operation of the corporation such as securing
of engagement. Respondent corporation hired and engaged petitioner for compensation, business permits and other licenses over an indefinite period of engagement.
with the power to dismiss her for cause. More importantly, respondent corporation had
the power to control petitioner with the means and methods by which the work is to be
accomplished. d. Application of Two – tiered test
The better approach would therefore be to adopt a two-tiered test involving: (1) the
2. YES. The corporation constructively dismissed petitioner when it reduced her putative employers power to control the employee with respect to the means and
salary by P2,500 a month from January to September 2001. This amounts to an methods by which the work is to be accomplished; and (2) the underlying economic
illegal termination of employment, where the petitioner is entitled to full realities of the activity or relationship.
backwages. Since the position of petitioner as accountant is one of trust and
confidence, and under the principle of strained relations, petitioner is further This two-tiered test would provide us with a framework of analysis, which would take
entitled to separation pay, in lieu of reinstatement. into consideration the totality of circumstances surrounding the true nature of the
relationship between the parties. This is especially appropriate in this case where there
A diminution of pay is prejudicial to the employee and amounts to constructive is no written agreement or terms of reference to base the relationship on; and due to the
dismissal.Constructive dismissal is an involuntary resignation resulting in cessation of complexity of the relationship based on the various positions and responsibilities given
work resorted to when continued employment becomes impossible, unreasonable or to the worker over the period of the latters employment.
unlikely; when there is a demotion in rank or a diminution in pay; or when a clear
discrimination, insensibility or disdain by an employer becomes unbearable to an e. Economic Reality Test
employee. Under economic reality test, the benchmark in analyzing whether employment relation
exists between the parties is the economic dependence of the worker on his employer.
a. Was the petitioner prevented from returning back to work? That is, whether the worker is dependent on the alleged employer for his continued
No. Petitioner did not report for work since she was not being paid her salary and instead employment in the latter’s line of business.
filed an action for constructive dismissal before the labor arbiter
f. What are the factual reasons that led the court to apply the two – tiered test?
b. What kind of dismissal? In view of today’s highly specialized workforce, the court are often faced with situations
Constructive Dismissal - an involuntary resignation resulting in cessation of work where the right-of-control-test alone can no longer adequately determine the existence
resorted to when continued employment becomes impossible, unreasonable or unlikely; of employer-employer relationship. Thus, another test has been devised to fill the gap,
when there is a demotion in rank or a diminution in pay; or when a clear discrimination, known as the economic reality test.
insensibility or disdain by an employer becomes unbearable to an employee.
Constructive Dismissal
c. Application of control test An involuntary resignation resulting in cessation of work resorted to when continued
By applying the control test, there is no doubt that petitioner is an employee of Kasei employment becomes impossible, unreasonable or unlikely; when there is a demotion
Corporation because she was under the direct control and supervision of Seiji Kamura, in rank or a diminution in pay; or when a clear discrimination, insensibility or disdain
the corporations Technical Consultant. She reported for work regularly and served in by an employer becomes unbearable to an employee
various capacities as Accountant, Liaison Officer, Technical Consultant, Acting
Manager and Corporate Secretary, with substantially the same job functions, that is, When do we apply the two-tiered approach?
rendering accounting and tax services to the company and performing functions Generally, the four-fold test is applied to determine the employee-employer relationship
except when there is difficulty, doubt or ambiguity in defining the employee-employer
LABOR RELATIONS
A.Y. 2018 - 2019
relationship the two-tiered test is applied. Economic realities of the employment

relations help provide a comprehensive analysis of the true classification of the ISSUE: Whether or not there is an employer-employee relationship between the
individual, whether as employee, independent contractor, corporate officer or some petitioners and PLDT
other capacity.
Labor dispute SC RULING:
“Labor dispute” includes any controversy or matter concerning terms and conditions of YES, there is employer-employee relationship between the petitioners and PLDT. From
employment or the association or representation of persons in negotiating, fixing, the foregoing circumstances, reason dictates that we conclude that petitioners remained
maintaining, changing or arranging the terms and conditions of employment, regardless at their post under the instructions of respondent. We can further conclude that
of whether the disputants stand in the proximate relation of employer and employee. respondent dictated upon petitioners that the latter perform their regular duties to
(Art. 211[l]) secure the premises during operating hours. This, to our mind and under the
circumstances, is sufficient to establish the existence of an employer-employee
a. Is it necessary that the parties have employer – employee relationship? relationship.
Yes. Dispute arises from employer-employee relationship, although disputants need not
be proximately “employee” or “employer” of the other. To reiterate, while respondent and SSCP no longer had any legal relationship with the
termination of the Agreement, petitioners remained at their post securing the premises
Locsin Case of respondent while receiving their salaries, allegedly from SSCP. Clearly, such a
Doctrine: The power of control, in this case, has been explained as the “right to control situation makes no sense, and the denials proffered by respondent do not shed any light
not only the end to be achieved but also the means to be used in reaching such end.” to the situation. It is but reasonable to conclude that, with the behest and, presumably,
With the conclusion that respondent directed petitioners to remain at their posts and directive of respondent, petitioners continued with their services. Evidently, such are
continue with their duties, it is clear that respondent exercised the power of control over indicia of control that respondent exercised over petitioners.
them; thus, the existence of an employer-employee relationship.
Such power of control has been explained as the right to control not only the end to
FACTS: be achieved but also the means to be used in reaching such end. With the conclusion
Respondent PLDT and the Security and Safety Corporation of the Philippines that respondent directed petitioners to remain at their posts and continue with their
entered into a Security Services Agreement whereby SSCP would provide armed duties, it is clear that respondent exercised the power of control over them; thus, the
security guards to PLDT to be assigned to its various offices. Pursuant to such existence of an employer-employee relationship. Evidently, respondent having the
agreement, petitioners Raul Locsin and Eddie Tomaquin, among other security guards, power of control over petitioners must be considered as petitioners’ employer from the
were posted at a PLDT office. termination of the Agreement onwards as this was the only time that any evidence of
control was exhibited by respondent over petitioners.
Then respondent issued a Letter terminating the Agreement. Despite the termination
of the Agreement, however, petitioners continued to secure the premises of their Citibank Case
assigned office. They were allegedly directed to remain at their post by representatives DOCTRINE: Non-renewal of Security Guard Service agreement is a civil dispute and
of respondent. In support of their contention, petitioners provided the Labor Arbiter with not a labor dispute.
copies of petitioner Locsin’s pay slips for the period after the said termination of
Agreement. FACTS:
Citibank and El Toro Security Agency, Inc. (hereafter El Toro) entered into a contract
Then, after a year, petitioners’ services were terminated. Thus, petitioners filed a for the latter to provide security and protective services. In 1990, the contract between
complaint before the Labor Arbiter for illegal dismissal and recovery of money claims. Citibank and El Toro expired. Integrated Guards Labor Alliance-SEGA-TUPAS/FSM
LABOR RELATIONS
A.Y. 2018 - 2019
(hereafter CIGLA) filed with the National Conciliation and Mediation Board (NCMB) It has been decided also that the Labor Arbiter has no jurisdiction over a claim filed
a request for preventive mediation citing Citibank as respondent therein giving as issues where no employer-employee relationship existed between a company and the security
for preventive mediation the following: (1) Unfair labor practice (2) Dismissal of union guards assigned to it by a security service contractor. In this case, it was the security
officers/members; and (3) Union busting.Three days after, Citibank served on El Toro a agency El Toro that recruited, hired and assigned the watchmen to their place of work.
written notice that the bank would not renew anymore the service agreement with the It was the security agency that was answerable to Citibank for the conduct of its guards.
latter. Simultaneously, Citibank hired another security agency, the Golden Pyramid 2. No. It is a civil dispute.
Security Agency, to render security services at Citibank's premises. Article 212, of the LC: Labor dispute = includes any controversy or matter concerning
terms or conditions of employment or the association or representation of persons in
Hence, CIGLA filed a manifestation with the NCMB that it was converting its request negotiating, fixing, maintaining, changing or arranging the terms and conditions of
for preventive mediation into a notice of strike for failure of the parties to reach a employment, regardless of whether the disputants stand in the proximate relation of
mutually acceptable settlement of the issues, which it followed with a supplemental employer and employee.
notice of strike alleging as supplemental issue the mass dismissal of all union officers
and members. The following day the guards of El Toro were replaced by guards of the If at all, the dispute between Citibank and El Toro security agency is one regarding the
Golden Pyramid Security Agency. They threatened to go on strike against Citibank and termination or nonrenewal of the contract of services. This is a civil dispute. El Toro
picket its premises. CIGLA filed a notice of strike directed at the premises of the was an independent contractor. No employer-employee relationship existed between
Citibank main office. Citibank and the security guard members of the union in the security agency who were
assigned to secure the bank's premises and property.
Citibank filed with the Regional Trial Court, Makati, a complaint for injunction and
damages to which respondent CIGLA filed with the trial court a motion to dismiss the Since, there was no labor dispute, there was no right to strike against the bank. It is a
complaint. The motion alleged that the Court had no jurisdiction, this being labor basic rule of procedure that "jurisdiction of the court over the subject matter of the action
dispute. is determined by the allegations of the complaint, irrespective of whether or not the
plaintiff is entitled to recover upon all or some of the claims asserted therein. The
ISSUES: jurisdiction of the court cannot be made to depend upon the defenses set up in the answer
1. Is there an employer-employee relationship? or upon the motion to dismiss, for otherwise, the question of jurisdiction would almost
2. Is there a labor dispute between Citibank and the security guards, members of entirely depend upon the defendant. "What determines the jurisdiction of the court is the
respondent CIGLA, regardless of whether they stand in the relation of employer nature of the action pleaded as appearing from the allegations in the complaint. The
and employees? averments therein and the character of the relief sought are the ones to be consulted."
SC RULING: Austria v. NLRC

1. No. In determining the existence of an employer-employee relationship, the DOCTRINE: Under the Labor Code, the provision which governs the dismissal of
following elements are generally considered: employees, is comprehensive enough to include religious corporations, such as the SDA,
a. The selection and engagement of the employee; in its coverage.
b. The payment of wages;
c. The power of dismissal; and FACTS:
d. The employer's power to control the employee with respect to the means and Private Respondent Central Philippine Union Mission Corporation of the Seventh-Day
methods by which the work is to be accomplished. Adventists (SDA) is a religious corporation. Petitioner, on the other hand, was a Pastor
of the SDA until 31 October 1991, when his services were terminated. Petitioner
received several communications from Mr. Eufronio Ibesate, the treasurer of the Negros
LABOR RELATIONS
A.Y. 2018 - 2019
Mission asking him to admit accountability and responsibility for the church tithes and
offerings collected by his wife, Mrs. Thelma Austria, in his district which amounted to SC RULING:
P15,078.10, and to remit the same to the Negros Mission. YES. Under the Labor Code, the provision which governs the dismissal of employees,
is comprehensive enough to include religious corporations, such as the SDA, in its
Petitioner reasoned out that he should not be made accountable since it was private coverage. Article 278 of the Labor Code on postemployment states that the provisions
respondents Pastor Gideon Buhat and Mr. Eufronio Ibesate who authorized his wife to of this Title shall apply to all establishments or undertakings, whether for profit or not.
collect the tithes and offerings since he was very sick to do the collecting at that time. Obviously, the cited article does not make any exception in favor of a religious
corporation. This is made more evident by the fact that the Rules Implementing the
On 16 October 1991, Petitioner went to the office of Pastor Buhat, the president of the Labor Code, particularly, Section 1, Rule 1, Book VI on the Termination of Employment
Negros Mission. During said call, petitioner tried to persuade Pastor Buhat to convene and Retirement, categorically includes religious institutions in the coverage of the law,
the Executive Committee for the purpose of settling the dispute between him and the to wit:
private respondent, Pastor David Rodrigo. The dispute between Pastor Rodrigo and
petitioner arose from an incident in which petitioner assisted his friend, Danny Diamada, Section 1. Coverage. This Rule shall apply to all establishments and undertakings,
to collect from Pastor Rodrigo the unpaid balance for the repair of the latters motor whether operated for profit or not, including educational, medical, charitable and
vehicle which he failed to pay to Diamada. Due to the assistance of petitioner in religious institutions and organizations, in cases of regular employment with the
collecting Pastor Rodrigos debt, the latter harbored ill-feelings against petitioner. When exception of the Government and its political subdivisions including government-owned
news reached petitioner that Pastor Rodrigo was about to file a complaint against him or controlled corporations.
with the Negros Mission, he immediately proceeded to the office of Pastor Buhat on the
date abovementioned and asked the latter to convene the Executive Committee. Pastor With this clear mandate, the SDA cannot hide behind the mantle of protection of the
Buhat denied the request of petitioner since some committee members were out of town doctrine of separation of church and state to avoid its responsibilities as an employer
and there was no quorum. Thereafter, the two exchanged heated arguments. under the Labor Code.
A fact-finding committee was created to investigate petitioner. Subsequently, petitioner a. What is an ecclesiastical affair?
received a letter of dismissal citing misappropriation of denominational funds, willful An ecclesiastical affair is "one that concerns doctrine, creed, or form of worship of the
breach of trust, serious misconduct, gross and habitual neglect of duties, and commission church, or the adoption and enforcement within a religious association of needful laws
of an offense against the person of employers duly authorized representative, as grounds and regulations for the government of the membership, and the power of excluding from
for the termination of his services. Reacting against the adverse decision of the SDA, such associations those deemed unworthy of membership."
petitioner filed a complaint before the Labor Arbiter for illegal dismissal against the
SDA and its officers and prayed for reinstatement with backwages and benefits, moral Based on this definition, an ecclesiastical affair involves the relationship between the
and exemplary damages and other labor law benefits. church and its members and relate to matters of faith, religious doctrines, worship and
governance of the congregation. To be concrete, examples of this so-called ecclesiastical
Private respondents contend that by virtue of the doctrine of separation of church and affairs to which the State cannot meddle are proceedings for excommunication,
state, the Labor Arbiter and the NLRC have no jurisdiction to entertain the complaint ordinations of religious ministers, administration of sacraments and other activities with
filed by petitioner. Since the matter at bar allegedly involves the discipline of a religious attached religious significance.
minister, it is to be considered a purely ecclesiastical affair to which the State has no
right to interfere. b. Can the Labor Arbiter take cognizance over the case? Is it not a violation of
the separation of church and state?
ISSUE: Does the LA have jurisdiction over the case?
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A.Y. 2018 - 2019
Yes, the Labor Arbiter may take cognizance. The case at bar does not concern an 3. Must have experience or exposure in handling labor management relations for at
ecclesiastical or purely religious affair as to bar the State from taking cognizance of the least 5 years
same. While the matter at hand relates to the church and its religious minister it does not 4. Preferably a resident of the region where he is to hold office
ipso facto give the case a religious significance. Simply stated, what is involved here is
the relationship of the church as an employer and the minister as an employee. It is
purely secular and has no relation whatsoever with the practice of faith, worship or Halaguena v. PAL
doctrines of the church. Doctrine:
Not every controversy or money claim by an employee against the employer pr vice-
In this case, petitioner was not excommunicated or expelled from the membership of the versa is within the exclusive jurisdiction of the labor arbiter. Actions between employees
SDA but was terminated from employment. Indeed, the matter of terminating an and employer where the employer-employee relationship is merely incidental and the
employee, which is purely secular in nature, is different from the ecclesiastical act of cause of action preceded from a different source of obligation is within the exclusive
expelling a member from jurisdiction of the regular court
the religious congregation.
FACTS:
Requirements to become a LA Petitioners were employed as female flight attendants of PAL. They are members of the
1. Must be a member of the Philippine Bar Flight Attendants and Stewards Association of the Philippines (FASAP), the exclusive
2. Must be engaged in the practice of law in the Ph for at least 10 years bargaining representative of the flight attendants.
3. Must have experience/exposure in handling labor management relations for at
least 5 years Section 144A of the PAL-FASAP CBA, provides that: “3. Compulsory Retirement.
Subject to the grooming standards provisions of this Agreement, compulsory retirement
Tripartite membership in the NLRC, what are the 2 sectors? shall be 55 for females and 60 for males. xxx”
Tripartism is the representation of the three sectors in the policy making bodies of the
government namely: Petitioners and several female cabin crews manifested that the aforementioned CBA
1. Public government provision on compulsory retirement is discriminatory, and demanded for an equal
2. Employers treatment with their male counterparts. This demand was reiterated in a letter.
3. The workers
Mr. Anduiza, President of FASAP submitted their 2004-2005 CBA proposals and
Composition of the NLRC manifested their willingness to commence the collective bargaining negotiations
One (1) chairman and twenty-three (23) members between the management and the association, at the soonest possible time.
How many divisions are there? Petitioners, filed a Special Civil Action for declaratory relief with prayer for the issuance
There are 8 divisions with 3 members each to be headed by the Chairman and 7 other of TRO and Writ of preliminary injunction with the RTC of Makati City against
members as Presiding Commissioners respondents for the invalidity of Section 144, Part A of PAL-FASAP CBA
Qualifications of the Commissioner ISSUE: Whether or not the RTC has jurisdiction over the Petitioners’ action
1. Must be a member of the Philippine Bar challenging the legality or constitutionality of the provisions of the compulsory
2. Must have been engaged in the practice of law in the Philippines for at least 15 retirement age contained in the CBA between respondent PAL and FASAP
years
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A.Y. 2018 - 2019
In the instant case, the thrust of the Petition is Sec. 144 of the subject CBA which is
SC RULING: allegedly discriminatory as it discriminates against female flight attendants, in violation
YES. The said issue cannot be resolved solely by applying the Labor Code. Rather, it of the Constitution, the Labor Code, and the CEDAW.
requires the application of the Constitution, labor statutes, law on contracts and
Convention on the Elimination of All Forms of Discrimination Against Women, and the
power to apply and interpret the constitution and CEDAW is within the jurisdiction of d. What was the convention?
trial courts, a court of general jurisdiction. Convention on the Elimination of All Forms of Discrimination Against Women
(hereafter, CEDAW), a multilateral convention that the Philippines ratified in 1981.
The jurisdiction of the LA and the NLRC under Article 217 of the Labor Code is limited The Government and its agents, including our courts, not only must condemn all forms
to disputes arising from an employer-employee relationship which can only be resolved of discrimination against women, but must also implement measures towards its
by reference to the Labor Code, other labor statutes, or their CBA. elimination.
Not every controversy or money claim by an employee against the employer or vice- e. What was the justification for ruling that the jurisdiction is properly lodged
versa is within the exclusive jurisdiction of the LA. Actions between employees where with in the RTC despite the existence of the employer – employee
the employer-employee relationship is merely incidental and the cause of action relationship?
precedes from a different source of obligation is within the exclusive jurisdiction of the From the petitioners' allegations and relief prayed for in its petition, it is clear that the
regular court. Here, the employer-employee relationship between the parties is merely issue raised is whether Section 144, Part A of the PAL-FASAP CBA is unlawful and
incidental and the cause of action ultimately arose from different sources of obligation. unconstitutional. Here, the petitioners' primary relief in Civil Case No. 04-886 is the
annulment of Section 144, Part A of the PAL-FASAP CBA, which allegedly
a. What was the prayer in the complaint? discriminates against them for being female flight attendants. The subject of litigation is
PRAYER incapable of pecuniary estimation, exclusively cognizable by the RTC, pursuant to
WHEREFORE, it is most respectfully prayed that the Honorable Court: Section 19 (1) of Batas Pambansa Blg. 129, as amended.Being an ordinary civil action,
c. after trial on the merits: the same is beyond the jurisdiction of labor tribunals.
(I) declare Section 114, Part A of the PAL-FASAP 2000-2005 CBA INVALID, NULL
and VOID to the extent that it discriminates against Petitioners; x x x x The said issue cannot be resolved solely by applying the Labor Code. Rather, it requires
the application of the Constitution, labor statutes, law on contracts and the Convention
From the petitioners' allegations and relief prayed for in its petition, it is clear that the on the Elimination of All Forms of Discrimination Against Women,and the power to
issue raised is whether Section 144, Part A of the PAL-FASAP CBA is unlawful and apply and interpret the constitution and CEDAW is within the jurisdiction of trial courts,
unconstitutional. Here, the petitioners' primary relief in Civil Case No. 04-886 is the a court of general jurisdiction.
annulment of Section 144, Part A of the PAL-FASAP CBA, which allegedly
discriminates against them for being female flight attendants. Kawachi v. Del Acero
a. How is it different from Halaguena?
b. Where was the complaint filed? On Kawachi v. Del Acero, the RTC has no jurisdiction because the claim asserted
Petitioners filed a Special Civil Action for Declaratory Relief with Prayer for the has a causal connection between the ee-er relations..
Issuance of Temporary Restraining Order and Writ of Preliminary Injunction with the
Regional Trial Court (RTC) of Makati City, Branch 147. Article 217(a) of the Labor Code, as amended, clearly bestows upon the Labor Arbiter
original and exclusive jurisdiction over claims for damages arising from employer-
c. What were the laws invoked in support of the complaint?
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A.Y. 2018 - 2019
employee relations —in other words, the Labor Arbiter has jurisdiction to award not 3. Cases decided by the Labor Arbiters pursuant to Article 124 of the Labor COde
only the reliefs provided by labor laws, but also damages governed by the Civil Code. on Wage Distortion problem in non-unionized establishment and cases certified
by the Regional Director under Art. 128 (b); and
Under the reasonable causal connection rule, if there is a reasonable causal connection 4. Denial of the claim of the 3rd party where property was levied by the Sheriff of
between the claim asserted and the employer-employee relations, then the case is within Labor Arbiter can be appealed to the NLRC.
the jurisdiction of our labor courts. In the absence of such nexus, it is the regular courts
that have jurisdiction.
Powers of the NLRC
Jurisdiction of the court is determined on the basis of the material allegations of the 1. Power to hear Certified Cases
complaint and the character of the relief prayed for irrespective of whether plaintiff is 2. Contempt — the chairman or any commissioner or labor arbiter may summarily
entitled to such relief. adjudge guilty of direct contempt any person;
3. Indirect contempt;
Contrary to the HALAGUEÑA, et. al. v. PAL, the issue in the case cannot be resolved 4. Injunction — the power of the NLRC to enjoin or restrain the commission of any
solely by applying the Labor Code. Rather, it requires the application of the Constitution, or all prohibited or unlawful acts under Art. 225 (e) of the Labor Code can only
labor statutes, law on contracts and the Convention on the Elimination of All Forms of be exercised in a labor dispute; and
Discrimination Against Women, and the power to apply and interpret the constitution 5. Issue Writ of Execution.
and CEDAW is within the jurisdiction of trial courts, a court of general jurisdiction. 6. Power to grant Extraordinary Remedies
Thus, the RTC has the jurisdiction over the case.
PAL v. NLRC
Jurisdiction of NLRC DOCTRINE: INJUNCTION CAN ONLY BE AN ANCILLARY WRIT IN
ARTICLE 294: EXCLUSIVE AND ORIGINAL JURISDICTION OF THE NLRC ORDINARY LABOR DISPUTES.
1. Certified Cases — Cases certified to it by compulsory arbitration by the SOLE
under Artile 278(g) or the President under Artile 279(a); The power of the NLRC to issue an injunctive writ originates from “any labor dispute”
2. Verified Petition to annum or modify the order or resolution (including those upon the application by a party thereof, which application if not granted “may cause
issued during execution proceedings) of the Labor Arbiter grave and irreparable damage to any party or render ineffectual any decision in favor of
3. Petition for Injunction in: such party”. The term “labor dispute” is defined as “any controversy or matter
a. Ordinary Labor Cases (Art. 225 (e)) concerning terms and conditions of employment x x x x”. The term “controversy” is
b. Strikes and Lockouts (Art. 278); and likewise defined as “a litigated question or a justiciable controversy”. A “justiciable
c. Contempt Cases (Art, 225) controversy” is “one involving an active antagonistic assertion of a legal right on one
side and a denial thereof on the other concerning a real, and not a mere theoretical
EXCLUSIVE APPELLATE JURISDICTION OF NLRC question or issue”. Given the definitions, it is thus essential that there must be a labor
1. Cases decided by the Regional Offices of the DOLE in the exercise of dispute between the contending parties before the LA to enable the NLRC issue a
their adjudicatory functions under Art. 129 over monetary claims of workers injunction writ.
NOT exceeding P5,000.00;
2. Cases decided by the Labor Arbiters under Article 224(b) of the Labor Code and FACTS:
Section 10 of Migrant Worker’s Act; Pineda and Cabling were flight stewards of PAL. Both were dismissed from service for
their alleged smuggling in Hong Kong of a bag said to contain some PHP2.5 Million in
cash. Instead of filing a case for illegal dismissal, Pineda and Cabling filed a Petition for
LABOR RELATIONS
A.Y. 2018 - 2019
Injunction, with a prayer for the issuance of TRO, against PAL before the NLRC, 1. Motion to dismiss the complaint except on the grounds of lack of jurisdiction over
seeking to prohibit PAL from enforcing their Order of Dismissal against them and to the subject matter, improper venue, res judicata, prescription and forum
ultimately reinstate them upon a favorable decision. shopping;
2. Motion for a bill of particulars;
NLRC RULING: TRO GRANTED The NLRC adopted the view that Pineda and 3. Motion for new trial;
Cabling have been illegally dismissed, for the reason that PAL’s Code of Discipline was 4. Petition for Relief from Judgment;
formulated without the participation of its employees. The baseless dismissal has caused 5. Motion to declare respondent in default;
Pineda and Cabling “grave and irreparable injury with no speedy and adequate remedy 6. Motion for reconsideration of any decision or any order of the Labor Arbiter;
at law”. PAL filed the present petition for certiorari. 7. Appeal from any interlocutory order of the Labor Arbiter, such as but not limited
to, an order:
ISSUE: Can the NLRC issue an injunctive writ even without a complaint for illegal a. Denying a motion to dismiss;
dismissal before the LA? b. Denying a motion to inhibit;
c. Denying a motion for issuance of writ of execution; or
RULING: d. Denying a motion to quash writ of execution.
NO. The power of the NLRC to issue an injunctive writ originates from “any labor 8. Appeal from the issuance of a certificate of finality of decision by the Labor
dispute”, which means that there must be an existing controversy or a litigated question Arbiter;
before it can issue the same. Since there is no labor dispute between the parties as there 9. Appeal from orders issued by the Labor Arbiter in the course of execution
has yet been no complaint for illegal dismissal filed before the labor arbiter by Pineda proceedings;
and Cabling against PAL, the NLRC cannot, therefore, issue the assailed Order. 10. Such other proceedings, motions and petitions of similar nature intended to
circumvent above provisions.
Contrary to the findings of the NLRC, there is no grave and irreparable damage in this
case because Pineda and Cabling can be adequately compensated if they are indeed If you are the Labor Arbiter and there is a complaint filed by the Laborer. He
illegally dismissed. It cannot be also said that there is no adequate remedy because submits a duly accomplished form of complaint. After receiving the complaint
Pineda and Cabling can still file a complaint for illegal dismissal with the LA. form, what should you look for?
It should also be noted that the Petition for Injunction filed before the NLRC is really in The existence of Employer and Employee relationship. This is so because the same is
the nature of an action for illegal dismissal. As such, it falls under the original and essential to determine which shall have jurisdiction over the complaint filed.
exclusive jurisdiction of the LA. The NLRC cannot therefore entertain the petition since
it only exercises appellate jurisdiction over illegal dismissal cases. How do you require the conciliation – mediation proceedings?
Conciliation – Mediation Proceedings are required by the issuance of summons
Pareto principle; why is it called such? according to Rule V, Sec. 3 of the 2011 NLRC Rules of Procedure:
The 80-20 Rule — “for many events, roughly 80% of the effects come from 20% of the Within two (2) days from receipt of a complaint or amended complaint, the Labor
causes” — Pareto Arbiter shall issue the required summons, attaching thereto a copy of the
complaint or amended complaint and its annexes, if any. The summons shall
Therefore, 20% of the effort produces 80% of the results but the last 20% of the results specify the date, time and place of the mandatory conciliation and mediation
consumes 80% of the effort conference in two (2) settings.
Prohibited pleadings under 2011 NLRC Rules of Proceedings Who are the parties? (Rule III, Sec. 2)
1. The party initiating the action – “Complainant” or “Petitioner”
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A.Y. 2018 - 2019
2. The opposing party – “Respondent” 5. he/she is the owner or president of a corporation or establishment which is a party
3. Their counsel to the case: Provided, that he/she presents:
i. a verified certification attesting that he/she is authorized to represent said
Aside from legal counsel, who may appear for the parties? corporation or establishment; and
According to Rule III, Sec. 6 (b) of the NLRC Rules: ii. a copy of the resolution of the board of directors of said corporation, or other
similar resolution or instrument issued by said establishment, granting him/her
A non-lawyer may appear in any of the proceedings before the Labor Arbiter or such authority
Commission only under the following conditions:
1. He/she represents himself/herself as party to the case;
2. He/she represents a legitimate labor organization, as defined under Article 212 How will the parties be informed that there will be a mandatory conciliation
and 242 of the Labor Code, as amended, which is a party to the case: Provided, conference?
that he/she presents to the Commission or Labor Arbiter during the mandatory According to Rule V, Sec. 3:
conference or initial hearing: Within two (2) days from receipt of a complaint or amended complaint, the Labor
i. a certification from the Bureau of Labor Relations (BLR) or Regional Office Arbiter shall issue the required summons, attaching thereto a copy of the
of the Department of Labor and Employment attesting that the organization complaint or amended complaint and its annexes, if any.
he/she represents is duly registered and listed in the roster of legitimate labor
organizations; In relation to that, according to Rule V, Sec. 4:
ii. a verified certification issued by the secretary and attested to by the president Summons shall be served personally upon the parties by:
of the said organization stating that he/she is authorized to represent the said 1. The bailiff or;
organization in the said case; and 2. duly authorized public officer within three (3) days from his/her receipt
iii. a copy of the resolution of the board of directors of the said organization thereof; or
granting him such authority; 3. by registered mail; or
3. He/she represents a member or members of a legitimate labor organization that is 4. by private courier authorized by the Commission; or
existing within the employer’s establishment, who are parties to the case: 5. in accordance with pertinent provisions of the Rules of Court under special
Provided, that he/she presents: circumstances
i. a verified certification attesting that he/she is authorized by such member or
members to represent them in the case; and If you are the respondent, what are you supposed to do with the summons?
ii. a verified certification issued by the secretary and attested to by the president If I were the respondent, I would file an Answer to the summons since the complaint is
of the said organization stating that the person or persons he/she is representing attached therein. An Answer is a responsive pleading, according to the Rules of Court,
are members of their organization which is existing in the employer’s applying suppletorily.
establishment;
4. He/she is a duly-accredited member of any legal aid office recognized by the As the Respondent, I may also, in accordance with Rule V, Sec. 6, file a Motion to
Department of Justice or Integrated Bar of the Philippines: Provided, that he/she Dismiss based on the grounds provided in Sec. 5(a) of this Rule, before the date set for
i. presents proof of his/her accreditation; and the mandatory conciliation and mediation conference.
ii. represents a party to the case;  
What will happen if you are the respondent and you do not respond to the
summons?

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A.Y. 2018 - 2019
Rule V, Sec. 10 of the Rules provide for the following in case the Respondent fails to of action and thereupon render his decision on the basis of the evidence on record. (Sec
respond to the summons: 10, Rule 5)
In case of non-appearance by the respondent during the first scheduled
conference, the second conference as scheduled in the summons shall proceed. If Requirement for the filing of the answer – difference between the Rules of Court
the respondent still fails to appear at the second conference despite being duly and the Rules of Procedure
served with summons, he/she shall be considered to have waived his/her right to Under the Rules of Court, the answer is filed by the defendant wherein he sets forth his
file position paper. The Labor Arbiter shall immediately terminate the mandatory defenses based on the allegations in the complaint. Under the NLRC Rules, verified
conciliation and mediation conference and direct the complainant or petitioner to position papers are submitted by the parties simultaneously, accompanied by the
file a verified position paper and submit evidence in support of his/her causes of supporting documents and affidavits. Within 10 days from receipt of the position paper
action and thereupon render his/her decision on the basis of the evidence on of the adverse party, a reply may be filed.
record. You are the complainant, you fail to appear twice without valid excuse, what will
be the consequences? With or without prejudice?
Duly accomplished complaint, notarized at the back – the complaint is raffled to The case will be dismissed. Dismissal of the case for the second time due to the
you as the Labor Arbiter. How will you now set into motion the proceedings? unjustified non-appearance of the complainant or petitioner who was duly notified
Under the 2011 NLRC Rules of Procedure, the Labor Arbiter within 2 days from the thereof shall be with prejudice (NLRC RULES, RULE V, Sec. 10).
receipt of the complaint or an amended complaint (Sec 3, Rule 5) shall issue
SUMMONS. Such Service of Summons be served personally upon the parties by the As the respondent, you have been notified for the conciliation – mediation, but you
bailiff within 3 days from receipt (Sec. 4 Rule 5) have a valid ground not to appear on said date, and it is already the second setting.
What will you do?
What is stated in the summons? I will file a motion to lift the order of waiver. As provided under Rule V, Sec. 22 of the
The summons shall specify the date, time and place of the mandatory conciliation and NLRC Rules, “[a] party declared to have waived his/her right to file a position paper
mediation conference in two (2) settings. (Sec 3, Rule 5) may at any time after notice thereof and before the case is submitted for decision, file a
motion under oath to set aside the order of waiver upon proper showing that his/her
How do you call the one filing the complaint according to the Rules of Procedure? failure to appear was due to justifiable and meritorious grounds.”
In all cases filed with the Commission or with any of its Regional Arbitration Branches,
the party initiating the action shall be called the "Complainant" or "Petitioner", and the Can the Labor Arbiter decide the case based on the complaint?
opposing party the "Respondent". (Sec 2. Rule 3) Yes. If the respondent fails to appear at the second conference despite being duly served
with summons, he/she shall shall be considered to have waived his/her right to file
Most important thing that you have to state in the summons? position paper. The LA shall immediately terminate the mandatory conciliation and
The summons shall specify the date, time and place of the mandatory conciliation and mediation conference and direct the complainant or petitioner to file a verified position
mediation conference in two (2) settings. (Sec 3, Rule 5) paper and submit evidence in support of his/her causes of action and thereupon render
his/her decision on the basis of the evidence on record (NLRC RULES, RULE V, Sec.
What is the consequence if the respondent fails to file his answer? 10).
THE NON-APPEARANCE BY THE RESPONDENT: at the second conference
despite being duly served with summons, he shall be considered to have waived his/her Primary purpose of conciliation and mediation
right to file position paper. LA immediately terminates the MCMC and directs the The mandatory conciliation and mediation conference shall be called for the purpose of:
complainant to file a verified position paper and submit evidence in support of his causes (AR-NIET)
1. Amicably settling the case upon a fair compromise;
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2. Determining the Real parties in interest; What is a position paper? What are its contents? Are you supposed to attach or
3. Determining the Necessity of amending the complaint and including all causes of append to your paper?
action; The position papers of the parties shall cover only those claims and causes of action
4. Defining and simplifying the Issues in the case; stated in the complaint or amended complaint, accompanied by all supporting
5. Entering into admissions or stipulations of facts; and documents, including affidavits of witnesses, which shall take the place of their direct
6. Threshing out all other preliminary matters (NLRC RULES, Rule V, Sec. 8) testimony, excluding those that may have been amicably settled. (Sec. 12©)
If there is amicable settlement, will the LA decide base on that? ATTY USITA: Position papers include:
Yes. Under the 2011 NLRC Rules on Procedure, a compromise agreement duly entered 1. names of the parties;
into in accordance with the requirements set by law, shall be final and binding upon the 2. brief statement of facts;
parties and shall have the force and effect of a judgment rendered by the LA. (Sec. 8, 3. issues (parties’ arguments and discussions)
(d)) 4. relief or prayer
Requisites: What are examples of attachments?

1. The parties understand the agreement, its terms, conditions and consequences; Affidavits of witnesses
2. Was freely and voluntarily entered into; and Other supporting documents, such as: Pay slip or ID card
3. Not contrary to law, morals and public policy
Will the LA conduct trial? What if you have witnesses, can you present their
What if they can’t settle? testimonies?
If the parties fail to agree on an amicable settlement, either in whole or in part, the LA No. Upon the submission by the parties of their position papers or replies, or the laps of
or said duly authorized personnel shall proceed to the other purposes of said conference, the period to submit the same, the case shall be deemed submitted for decision. (Sec.
such as: 16)
1. determining the real parties-in-interest;
2. determining the necessity of amending the complaint and including all causes of This is unless the LA calls for a hearing or clarificatory conference, which necessity is
action; determined by the LA. (Sec. 13) During the preliminary conference, the there may be:
3. defining and simplifying the issues in the case; 1. Presentation of testimonial evidence;
4. entering into admissions or stipulations of facts; and 2. Right of cross-examination by the opposing parties; and
5. threshing out all preliminary matters 3. Presentation of evidence limited to matters relevant to the issue before them.
(Sec. 9)
Upon termination of the hearing or conference, the case is submitted for decision. (Sec.
How many days for the simultaneous filing? 16)
The simultaneous filing of verified position papers with supporting documents and
affidavits, shall be on a date set by the LA within ten (10) calendar days from the date After the position paper, what’s next?
of termination of the mandatory conciliation and mediation conference. (Sec. 12 (b)) LA will now decide if there is a need for a clarificatory hearing.
ATTY USITA: Usually, 10 days is given. But the LA may grant 15 days. Clarificatory hearing
As soon as the parties have submitted their position papers/memorandum, the Labor
Arbiter shall, motu propio, determine whether there is a need for a formal trial or
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A.Y. 2018 - 2019
hearing. The Labor Arbiter may, at his discretion, ask clarificatory questions to further You are the employer, you receive the decision. Dispositive portion states that the
elicit facts or information, including but not limited to the subpoena of relevant respondent is guilty of illegal dismissal. He is ordered to reinstate the complainant
documentary evidence from any party or witness. and to pay the following amounts: P100,000 for back wages, etc.; P50,000 for moral
damages; P50,000 for exemplary damages; 10% total attorney’s fees. What are the
After the decision, then what?
options that are available to you?
LA must come up with Summary of proceeding which will be submitted for decision. It If reinstatement is ordered by the Labor Arbiter in an illegal dismissal case, it is
will be final and executory immediately executory even pending appeal. Such award does not require a writ of
execution.
How long should the Labor Arbiter determine the case after the clarificatory
Options available to employer in complying with an order of reinstatement:
hearing? What if there is no clarificatory hearing? From when do you reckon that
1. Actual Reinstatement – employer can admit the dismissed employee back to
period?
work:
The Arbiter shall render his decision within thirty (30) calendar days, without extension,
a. Under the same terms and conditions prevailing prior to his
after the submission of the case by the parties for resolution, even in the absence of
dismissal/separation
stenographic notes, provided however that cases involving Overseas Filipino Workers
b. To a substantially equivalent position if the former position is already filled up
shall be decided within ninety (90) calendar days after the filing of the complaint which
shall be deemed perfected upon acquisition by the labor arbiter of jurisdiction over the
2. Payroll reinstatement – the employer can reinstate the employee merely in the
respondent/s. (Sec. 5, Rule 5, NLRC Rules as Amended) payroll with payment of the accrued salaries
Can it be also later than receipt?

Must pleading before the LA be verified?
It may be extended due to the volume of the cases handled by the LA.
Yes, but the lack of verification of the position paper-affidavit is a formal, rather than
substantial defect. It is not fatal. It could easily be corrected by requiring an oath.
After submission of position papers, may the parties submit another paper?
Within ten (10) days from receipt of the position paper of the adverse party, a reply may
If you are not in favor of the decision?
be filed on a date agreed upon and during a schedule set before the Labor Arbiter. The
Decisions, awards, or orders of the Labor Arbiter are final and executory unless
reply shall not allege and/or prove facts and any cause or causes of action not referred appealed to the Commission by any or both parties within ten (10) calendar days from
to or included in the original or amended complaint or petition or raised in the position receipt of such decisions, awards, or orders. Such appeal may be entertained only on
paper. (Sec 11 (d), Rule 5, NLRC Rules of Procedure) any of the following grounds:
1. If there is prima facie evidence of abuse of discretion on the part of the Labor
Appeal based on NLRC Rules of Procedure Arbiter;
Decisions, awards, or orders of the Labor Arbiter shall be final and executory unless 2. If the decision, order or award was secured through fraud or coercion, including
appealed to the Commission by any or both parties within ten (10) calendar days from graft and corruption;
receipt thereof; and in case of decisions or resolutions of the Regional Director of the 3. If made purely on questions of law; and
Department of Labor and Employment pursuant to Article 129 of the Labor Code, within 4. If serious errors in the findings of facts are raised which would cause grave or
five (5) calendar days from receipt thereof. If the 10th or 5th day, as the case may be, irreparable damage or injury to the appellant.
falls on a Saturday, Sunday or holiday, the last day to perfect the appeal shall be the first
working day following such Saturday, Sunday or holiday. (Sec 1, Rule 6, NLRC Rules In case of a judgment involving a monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond issued by a reputable bonding
of Procedure)
company duly accredited by the Commission in the amount equivalent to the monetary
award in the judgment appealed from.
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In any event, the decision of the Labor Arbiter reinstating a dismissed or separated In case the decision of the Labor Arbiter or the Regional Director involves a monetary
employee, insofar as the reinstatement aspect is concerned, shall immediately be award, an appeal by the employer may be perfected only upon the posting of a bond,
executory, even pending appeal. The employee shall either be admitted back to work which shall either be in the form of cash deposit or surety bond equivalent in amount to
under the same terms and conditions prevailing prior to his dismissal or separation or,
the monetary award, exclusive of damages and attorney’s fees.
at the option of the employer, merely reinstated in the payroll. The posting of a bond by
the employer shall not stay the execution for reinstatement provided herein.
How is 10 calendar days different from 10 working days?
Calendar days mean that Saturdays, Sundays, and Legal Holidays are not to be excluded,
but included, in counting the 10-day period. This is in line with the objective of the law
for speedy disposition of labor cases with the end in view of protecting the interests of
Requirements to perfect the appeal the working man. On the other hand, working day is considered every official work day
a. The appeal shall be: of the week.
1. Filed within the reglementary period provided in Section 1 of this Rule;
2. Verified by the appellant himself/herself in accordance with Section 4, Rule Reglementary period
7of the Rules of Court, as amended; Reglementary period refers to the number of days within which the party must file
3. in the form of a memorandum of appeal which shall state the grounds relied his/her pleading to court/tribunal/body.
upon and the arguments in support thereof, the relief prayed for, and with a
statement of the date the appellant received the appealed decision, award or How much is the appeal bond?
order; Either be in the form of cash deposit or surety bond equivalent in amount to the monetary
4. in three (3) legibly typewritten or printed copies; and accompanied by: award, exclusive of damages and attorney’s fees.
i. proof of payment of the required appeal fee and legal research fee; 100 million pesos – 10 days; must be raised to perfect your appeal. If the amount is
ii. posting of a cash or surety bond as provided in Section 6 of this Rule; and too much, do you have another option?
iii. proof of service upon the other parties. File a Motion to Reduce Appeal Bond
b. A mere notice of appeal without complying with the other requisites aforestated What is the effect if you were not able to perfect your appeal?
shall not stop the running of the period for perfecting an appeal. The decision becomes final and executory; it cannot be amended.
c. The appellee may file with the Regional Arbitration Branch or Regional Office
where the appeal was filed, his/her answer or reply to appellant's memorandum of McBurnie Case
appeal, not later than ten (10) calendar days from receipt thereof. Failure on the FACTS:
part of the appellee who was properly furnished with a copy of the appeal to file McBurnie, an Australian citizen filed an illegal dismissal case against EGI. The Labor
his/her answer or reply within the said period may be construed as a waiver on Arbiter ruled in favor of McBurnie, awarding US$ 985 162 as salary and benefit plus
his/her part to file the same d) Subject to the provisions of Article 218 2M damages and 10% attorney’s fees. EGI appealed to the NLRC, posted an appeal
of the Labor Code, once the appeal is perfected in accordance with these Rules, bond of 100K and filed a memorandum of appeal appeal and a motion to reduce bond.
the Commission shall limit itself to reviewing and deciding only the specific issues NLRC denied the motion and required an additional 54M. Because of failure to post the
that were elevated on appeal. (4a) required additional bond, NLRC dismissed EGI’s appeal.
(Sec 4, Rule VI, NLRC Rules of Procedure)
ISSUE: Whether or not the filing of a motion to reduce bond shall be sufficient to
How would you know if you have perfected the appeal? suspend the running of the period to file a appeal

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A.Y. 2018 - 2019
RULING: It shall be sufficient to suspend the running of the period to perfect an appeal from the
Filing of a motion to reduce bond, coupled with compliance with the two conditions: labor arbiter's decision to the NLRC.
1. the motion must be must be based on meritorious grounds;
2. a bond in a reasonable amount is posted shall suffice to suspend the running of the SUSPENSION OF PROCEEDINGS
period to perfect an appeal from the labor arbiter's decision to the NLRC. To allow labor cases to proceed would clearly defeat the purpose of the automatic stay
and severely encumber the management committee’s time and resources.
All motions to reduce bond that are to be filed with the NLRC shall be accompanied by
the posting of a cash or surety bond equivalent to 10% of the monetary award that is
subject of the appeal, which shall provisionally be deemed the reasonable amount of the Discussed in Sara lee vs. Macatlan
bond in the meantime that an appellant's motion is pending resolution by the a. McBurnie case
Commission. Only after the posting of a bond in the required percentage shall an The Corporations gravely misappreciated the ruling in McBurnie. The 10% requirement
appellant's period to perfect an appeal under the NLRC Rules be deemed suspended. pertains to the reasonable amount which the NLRC would accept as the minimum of the
The NLRC retains its authority and duty to resolve the motion and determine the final bond that should accompany the motion to reduce bond in order to suspend the period
amount of bond that shall be posted by the appellant, still in accordance with the to perfect an appeal under the NLRC rules. The 10% is based on the judgment award
standards of "meritorious grounds" and "reasonable amount. Should the NLRC, after and should in no case be construed as the minimum amount of bond to be posted in order
considering the motion's merit, determine that a greater amount or the full amount of the to perfect appeal. There is no room for a different interpretation when McBurnie made
bond needs to be posted by the appellant, then the party shall comply accordingly. The it clear that the percentage of bond set is provisional.
appellant shall be given a period of 10 days from notice of the NLRC order within which
to perfect the appeal by posting the required appeal bond. b. Lepanto case
The underlying purpose of the appeal bond is to ensure that the employer has properties
a. How many employees were there? – One. Only McBurnie. on which he or she can execute upon in the event of a final, providential award. Thus,
non-payment or woefully insufficient payment of the appeal bond by the employer
b. How much was the award? - S985 162 as salary with 2M damages frustrates these ends. As a matter of fact, the appeal bond is valid and effective from the
date of posting until the case is terminated or the award is satisfied. Our Decision
What else should accompany the bond? highlights the importance of an appeal bond such that said amount
In case of surety bond, the same shall be issued by a reputable bonding company duly should be the base amount for negotiation between the parties.
accredited by the commission and shall be accompanied by original or certified true
copies of the following: Meritorious ground as a condition for the reduction of the appeal bond
1. A joint declaration under oath by the employer, his or her counsel, and the bonding a. McBurnie vs. Ganzon
company attesting that the bond posted is genuine and shall be in effect until final The requirement on the existence of a "meritorious ground" delves on the worth of the
disposition of the case parties' arguments, taking into account their respective rights and the circumstances that
2. An indemnity agreement between the employer-appellant and bonding company attend the case. The condition was emphasized in University Plans Incorporated v.
3. Proof of security deposit or collateral securing the bond: provided, that a check Solano, 95 wherein the Court held that while the NLRC's Revised Rules of Procedure
shall not be considered as an acceptable security "allows the [NLRC] to reduce the amount of the bond, the exercise of the authority is
4. Notarized board resolution or secretary’s certificate from the bonding company not a matter of right on the part of the movant, but lies within the sound discretion of the
showing its authorized signatories and their specimen signatures NLRC upon a showing of meritorious grounds." 96 By jurisprudence, the merit referred
to may pertain to an appellant's lack of 􀀼nancial capability to pay the full amount of the
What is the effect of posting reduction and 10%? bond, 97 the merits of the main appeal such as when there is a valid claim that there was
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no illegal dismissal to justify the award, 98 the absence of an employer-employee Prohibited pleading – motion for reconsideration; what is the consequence if a
relationship, 99 prescription of claims, 100 and other similarly valid issues that are party files a motion for reconsideration?
raised in the appeal. 101 For the purpose of determining a "meritorious ground", the Rule V, Section 5 of the 2011 NLRC Rules, prohibits a motion for reconsideration of
NLRC is not precluded from receiving evidence, or from making a preliminary any decision or order of the labor arbiter. However, this prohibition does not accord with
determination of the merits of the appellant's contentions. the ruling in Philtranco requiring the filing of an MR as requisite of certiorari.
You are the complainant. You received a decision in your favor, but for whatever
reason, you are not satisfied. You filed a motion for reconsideration. What is the
What other legal principles are we supposed to learn from McBurnie case? effect?
The lawmakers clearly intended to make the bond a mandatory requisite for the Having filed an MR, the petitioner is allowed to file for further or subsequent remedies.
perfection of an appeal by the employer as inferred from the provision that an appeal by A motion for reconsideration of the Resolution of the Secretary of DOLE is a
the employer may be perfected only upon the posting of a cash or surety bond. The word precondition for subsequent remedies pursuant to the doctrine of exhaustion of
only makes it clear that the posting of a cash or surety bond by the employer is the administrative remedies.
essential and exclusive means by which an employers appeal may be perfected. On the
other hand, the word may refers to the perfection of an appeal as optional on the part of Diamond Taxi v. Llamas
the defeated party, but not to the compulsory posting of an appeal bond, if he desires to FACTS:
appeal. The meaning and the intention of the legislature in enacting a statute must be Llamas worked as a taxi driver for petitioner Diamond Taxi, owned and operated by
determined from the language employed; and where there is no ambiguity in the words petitioner Bryan Ong. On July 18, 2005, Llamas filed before the Labor Arbiter (LA) a
used, then there is no room for construction. complaint for illegal dismissal against the petitioners.
You are compliant with the McBurnie case, can you now say to the NLRC – you The petitioners claimed that Llamas had been absent without official leave for several
have to grant my motion for Reduction of Bond because you will be violating the days. The petitioners submitted a copy of the attendance logbook to prove that Llamas
McBurnie ruling? had been absent. They also pointed out that Llamas committed several traffic violations
No. While the bond may be reduced upon motion by the employer, this is subject to the and that they had issued him several memoranda for acts of insubordination and refusal
conditions that (1) the motion to reduce the bond shall be based on meritorious grounds; to heed management instructions. They argued that these acts – traffic violations,
and (2) a reasonable amount in relation to the monetary award is posted by the appellant, insubordination and refusal to heed management instructions – constitute grounds for
otherwise the filing of the motion to reduce bond shall not stop the running of the period the termination of Llamas’ employment. The LA rendered a decision dismissing
to perfect an appeal. The qualification effectively requires that unless the NLRC grants Llamas’ complaint for lack of merit. The LA declared that Llamas left his job and had
the reduction of the cash bond within the 10 day reglementary period, the employer is been absent for several days without leave.
still expected to post the cash or surety bond securing the full amount within the said
10-day period. If the NLRC does eventually grant the motion for reduction after the In his position paper, Llamas claimed that he failed to seasonably file his position paper
reglementary period has elapsed, the correct relief would be to reduce the cash or surety because his previous counsel, despite his repeated pleas, had continuously deferred
bond already posted by the employer within the 10-day period. compliance with the LA’s orders for its submission. Hence, he was forced to secure the
services of another counsel in order to comply with the LA’s directive.
Otherwise stated, compliance with the McBurnie guidelines merely suspends the
running of the 10-day reglementary period by which to perfect an appeal. The NLRC He then filed before the LA a motion for reconsideration. The LA treated Llamas’
retains its authority and duty to resolve the motion to reduce bond. motion as an appeal per Section 15, Rule V of the 2005 Revised Rules of Procedure of
the NLRC. In its resolution, the NLRC dismissed for non-perfection Llamas’ motion for
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reconsideration treated as an appeal. The NLRC pointed out that Llamas failed to attach Consistently, we have emphasized that "rules of procedure are mere tools
the required certification of non-forum shopping per Section 4, Rule VI of the 2005 designed to facilitate the attainment of justice. A strict and rigid application
NLRC Rules. Llamas moved to reconsider the resolution but this was denied. which would result in technicalities that tend to frustrate rather than promote
substantial justice should not be allowed
The CA reversed the NLRC, excusing the failure to attach the required certification on e. We should remember that "the dismissal of an employee’s appeal on purely
equitable grounds. technical ground is inconsistent with the constitutional mandate on protection
ISSUES: to labor."
1. Whether or not the NLRC acted with grave abuse of discretion in denying the
motion for reconsideration? 2. There is constructive dismissal
2. Whether or not there is abandonment or constructive dismissal a. To constitute abandonment of work, two elements must concur:
i. the employee must have failed to report for work or must have been absent
HELD: without valid or justifiable reason; and
1. Yes. ii. there must have been a clear intention on the part of the employee to sever
a. Article 223 (now Article 229) of the Labor Code states that decisions (or the employer-employee relationship manifested by some overt act.
awards or orders) of the LA shall become final and executory unless appealed
to the NLRC within ten (10) calendar days from receipt of the decision. b. The employer bears the burden of proving the employee’s unjustified refusal
b. Indisputably, Llamas did not file a memorandum of appeal from the LA’s to resume his employment. In this case, they did not present proof of some
decision. Instead, he filed, within the ten (10)-day appeal period, a motion for overt act of Llamas that clearly and unequivocally shows his intention to
reconsideration. Under Section 15, Rule V of the 2005 NLRC Rules, motions abandon his job. We note that, aside from their bare allegation, the only
for reconsideration from the LA’s decision are not allowed. They may, evidence that the petitioners submitted to prove abandonment were the
however, be treated as an appeal provided they comply with the requirements photocopy of their attendance logbook and the July 15, 2005 memorandum that
for perfecting an appeal. The NLRC dismissed Llamas’ motion for they served on Llamas
reconsideration treated as an appeal for failure to attach the required certificate c. The CA, therefore, correctly regarded Llamas as constructively dismissed for
of non-forum shopping the petitioners' failure to prove the alleged just cause -abandonment - for his
c. Ordinarily, the infirmity in Llamas’ appeal would have been fatal and would dismissal. Constructive dismissal exists when there is cessation of work
have justified an end to the case. However, a careful consideration of the because continued employment is rendered impossible, unreasonable or
circumstances of the case would allow the appeal: unlikely. Constructive dismissal is a dismissal in disguise or an act amounting
i. In his motion for reconsideration of the NLRC’s resolution, Llamas attached to dismissal but made to appear as if it were not.
the required certificate of non-forum shopping. d. In constructive dismissal cases, the employer is, concededly, charged with the
ii. He was only able to file a belated paper because of the hiring of the new burden of proving that its conduct and action were for valid and legitimate
counsel. While not the fault of the LA, Llamas, nevertheless, did not have a grounds. The petitioners' persistent refusal to give Llamas the key to his
meaningful opportunity to present his case, refute the contents and assigned taxi cab, on the condition that he should first sign the resignation
allegations in the petitioners’ position paper and submit controverting letter, rendered, without doubt, his continued employment impossible,
evidence. unreasonable and unlikely; it, thus, constituted constructive dismissal.
d. Under Article 221 (now Article 227) of the Labor Code, "the Commission and
its members and the Labor Arbiters shall use every and all reasonable means Disposition: Petition Granted.
to ascertain the facts in each case speedily and objectively and without regard
to technicalities of law or procedure, all in the interest of due process."
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A.Y. 2018 - 2019
There is a decision by the LA. The employer was able to perfect the appeal. What pay the accrued salaries as a consequence of such non-reinstatement in the amount
is now the effect of the perfected appeal to the decision? specified in the decision.
As Provided under Section 9 of Rule XI
The perfection of an appeal shall stay the execution of the decision of the Labor Also as provided under sec.9 of Rule XI, if he/she disobeys the writ, such employer or
Arbiter on appeal, except execution for reinstatement pending an appeal. person may be cited for contempt in accordance with Rule IX.
What are the conditions of the Rules that will give effect to the execution of the
reinstatement? Can the LA cite the employer in contempt?
Section 18 of Rule V provides that in case the decision of the Labor Arbiter includes an Yes. Section 9 of Rule XI provides that the Sheriff shall serve the writ of execution upon
order of reinstatement, it shall likewise contain: a) a statement that the reinstatement the employer or any other person required by law to obey the same. If he/she disobeys
aspect is immediately executory; and b) a directive for the employer to submit a report the writ, such employer or person may be cited for contempt in accordance with Rule
of compliance within ten (10) calendar days from receipt of the said decision. IX.
Is there any provision in the Rules that will support reinstatement pending appeal? What are the two types of reinstatement?
YES Section 9 of Rule XI OF 2011 NLRC Rules of Procedure which provides Actual Reinstatement- if execution pending appeal is granted, the employee concerned
SECTION 9. EXECUTION OF REINSTATEMENT PENDING APPEAL. - In shall be admitted back to work under the terms and conditions prevailing prior to his
case the decision includes an order of reinstatement, and the employer disobeys dismissal or separation.
the directive under the second paragraph of Section 18 of Rule V or refuses to
reinstate the dismissed employee, the Labor Arbiter shall immediately issue writ Payroll Reinstatement - a reinstatement were an employee is not actually admitted back
of execution, even pending appeal, directing the employer to immediately to work, nevertheless he would still be included in the payroll and entitled to receive her
reinstate the dismissed employee either physically or in the payroll, and to pay the salary and other benefits as if he were in fact working.
accrued salaries as a consequence of such non-reinstatement in the amount
specified in the decision. Is it possible that the decision will not immediately become final and executory
when a motion for reconsideration is filed?
The Sheriff shall serve the writ of execution upon the employer or any other Yes. In the case of Diamond Taxi v. Llamas, the Supreme Court held that although
person required by law to obey the same. If he/she disobeys the writ, such respondent filed a motion for reconsideration, they may, however, be treated as an
employer or person may be cited for contempt in accordance with Rule IX. appeal provided they comply with the requirements for perfecting an appeal.
What can the LA do if the employer refuses to comply with the order for Article 223 (now Article 229) of the Labor Code states that decisions (or awards or
reinstatement? orders) of the LA shall become final and executory unless appealed to the NLRC within
In case the decision includes an order of reinstatement and the employer disobeys the ten (10) calendar days from receipt of the decision, consistent with Article 223,
directive under second paragraph of Section 18 of Rule V ( In case the decision of the Section 1, Rule VI of the 2005 NLRC Rules also provides for a ten (10)-day period for
Labor Arbiter includes an order of reinstatement, it shall likewise contain: a) a statement appealing the LA’s decision. Under Section 4(a), Rule VI of the 2005 NLRC Rules,
that the reinstatement aspect is immediately executory; and b) a directive for the the appeal shall be in the form of a verified memorandum of appeal and accompanied
employer to submit a report of compliance within ten (10) calendar days from receipt of by proof of payment of the appeal fee, posting of cash or surety bond (when
the said decision.) or refuses to reinstate the dismissed employee, the Labor Arbiter shall necessary), certificate of non-forum shopping, and proof of service upon the other
immediately issue (a) writ of execution, even pending appeal, directing the employer to parties. Failure of the appealing party to comply with any or all of these requisites
immediately reinstate the dismissed employee either physically or in the payroll, and to within the reglementary period will render the LA’s decision final and executory.

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Indisputably, Llamas did not file a memorandum of appeal from the LA’s decision. 5. It filed an original petition for mandatory injunction with the NLRC on November
Instead, he filed, within the ten (10)-day appeal period, a motion for reconsideration. 16, 1995. This was docketed as Case No. NLRC-NCR-IC. 0000602-95. This case
Under Section 15, Rule V of the 2005 NLRC Rules, motions for reconsideration from is still pending with that Commission.
the LA’s decision are not allowed; they may, however, be treated as an appeal provided 6. It filed a complaint in the Regional Trial Court in Manila which was docketed as
they comply with the requirements for perfecting an appeal. Civil Case No. 95-76395. The dismissal of this case by public respondent
triggered the filing of the instant petition.
You are not a party to the case, but NLRC sheriff took away your property after
showing a writ of execution. What is your remedy? In all of the foregoing actions, petitioner raised a common issue, which is that it is
In the case of Yupangco Cotton Mills v. CA, the Supreme Court held a third party the owner of the properties located in the compound and buildings of Artex
whose property has been levied upon by a sheriff to enforce a decision against a Development Corporation, which were erroneously levied upon by the sheriff of the
judgment debtor is afforded with several alternative remedies to protect its NLRC as a consequence of the decision rendered by the said Commission in another
interests. The third party may avail himself of alternative remedies cumulatively, and labor case.
one will not preclude the third party from availing himself of the other alternative
remedies in the event he failed in the remedy first availed of. ISSUE: Whether or not the Court of Appeals erred in dismissing the action on the
ground of lack of jurisdiction of the trial court
Thus, a third party may avail himself of the following alternative remedies:
1. File a third party claim with the sheriff of the Labor Arbiter, and RULING:
2. If the third party claim is denied, the third party may appeal the denial to the A third party whose property has been levied upon by a sheriff to enforce a decision
NLRC. against a judgment debtor is afforded with several alternative remedies to protect
its interests. The third party may avail himself of alternative remedies cumulatively,
Even if a third party claim was denied, a third party may still file a proper action with and one will not preclude the third party from availing himself of the other alternative
a competent court to recover ownership of the property illegally seized by the remedies in the event he failed in the remedy first availed of.
sheriff. As shown in Section 17 (now 16), Rule 39, Revised Rules of Court.
Thus, a third party may avail himself of the following alternative remedies:
YUPANGCO COTTON MILLS, INC. vs. COURT OF APPEALS 1. File a third party claim with the sheriff of the Labor Arbiter, and
FACTS: 2. If the third party claim is denied, the third party may appeal the denial to the
Petitioner filed the following: NLRC.
1. It filed a notice of third-party claim with the Labor Arbiter on May 4, 1995.
2. It filed an Affidavit of Adverse Claim with the National Labor Relations Even if a third party claim was denied, a third party may still file a proper action with
Commission (NLRC) on July 4, 1995, which was dismissed on August 30, 1995, a competent court to recover ownership of the property illegally seized by the
by the Labor Arbiter. sheriff. As shown in Section 17 (now 16), Rule 39, Revised Rules of Court.
3. It filed a petition for certiorari and prohibition with the Regional Trial Court of
Manila, Branch 49, docketed as Civil Case No. 95-75628 on October 6, 1995. The The aforesaid remedies are nevertheless without prejudice to any proper action
Regional Trial Court dismissed the case on October 11, 1995 for lack of merit. that a third-party claimant may deem suitable to vindicate his claim to the
4. It appealed to the NLRC the order of the Labor Arbiter dated August 13, 1995 property. Such a proper action is, obviously, entirely distinct from that explicitly
which dismissed the appeal for lack of merit on December 8, 1995. prescribed in Section 17 of Rule 39, which is an action for damages brought by a third-
party claimant against the officer within one hundred twenty (120) days from the date
of the filing of the bond for the taking or keeping of the property subject of the terceria.
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The remedies above mentioned are cumulative and may be resorted to by a third- does not want to actually or physically reinstate him and instead, at the employer’s
party claimant independent of or separately from and without need of availing of option, merely reinstates the employee in the payroll pending appeal.
the others.
Moreover, in the case of Pfizer Inc v. Velasco, the Court reiterates the principle that
In light of the above, the filing of a third party claim with the Labor Arbiter and the reinstatement pending appeal necessitates that it must be immediately self-executory
NLRC did not preclude the petitioner from filing a subsequent action for recovery of without need for a writ of execution during the pendency of the appeal, if the law is to
property and damages with the Regional Trial Court. serve its noble purpose, and any attempt on the part of the employer to evade or delay
How would you characterize these remedies? Cumulative? its execution should not be allowed.
The remedies are cumulative and may be resorted to by a third-party claimant Refund Doctrine (Pfizer case)
independent of or separately from and without need of availing of the others. If a third- Even outside the theoretical trappings of the discussion and into the mundane realities
party claimant opted to file a proper action to vindicate his claim of ownership, he must of human experience, the "refund doctrine" easily demonstrates how a favorable
institute an action, distinct and separate from that in which the judgment is being decision by the Labor Arbiter could harm, more than help, a dismissed employee. The
employee, to make both ends meet, would necessarily have to use up the salaries
enforced, with the court of competent jurisdiction even before or without need of filing
received during the pendency of the appeal, only to end up having to refund the sum in
a claim in the court which issued the writ, the latter not being a condition sine qua non case of a final unfavorable decision. It is mirage of a stop-gap leading the employee to
for the former. In such proper action, the validity and sufficiency of the title of the third- a risky cliff of insolvency.
party claimant will be resolved and a writ of preliminary injunction against the sheriff
may be issued. Advisably, the sum is better left unspent. It becomes more logical and practical for the
employee to refuse payroll reinstatement and simply find work elsewhere in the interim,
What are the legal remedies available if properties are levied against? if any is available. Notably, the option of payroll reinstatement belongs to the employer,
The following are the remedies available: even if the employee is able and raring to return to work. Prior to Genuino, it is
1. Motion for Exclusion or Release of the property wrongfully levied on; unthinkable for one to refuse payroll reinstatement. In the face of the grim possibilities,
2. Service by the third party claimant on the officer making the levy and upon the the rise of concerned employees declining payroll reinstatement is on the horizon.
judgment creditor of an affidavit of title (RULES OF COURT, Rule 39, Sec. 16).
This is also known as terceria; a. Is it not contrary to unjust enrichment doctrine?
3. If the third party claim is denied, the third party may appeal the denial to the Further, the Genuino ruling not only disregards the social justice principles behind the
NLRC (Yupangco Cotton Mills v. CA); rule, but also institutes a scheme unduly favorable to management. Under such scheme,
4. Independent civil action to recover the title and possession of the property the salaries dispensed pendente lite merely serve as a bond posted in installment by the
wrongfully levied on execution (RULES OF COURT, Rule 39, Sec 16). employer. For in the event of a reversal of the Labor Arbiter's decision ordering
reinstatement, the employer gets back the same amount without having to spend
ordinarily for bond premiums. This circumvents, if not directly contradicts, the
Perfected appeal and there was payroll reinstatement. Pending 2Y, EE still keeps proscription that the "posting of a bond [even a cash bond] by the employer shall not
collecting wages. stay the execution for reinstatement."
Employee is entitled to the collection of wages pending appeal and there having been a
payroll reinstatement. In playing down the stray posture in Genuino requiring the dismissed employee on
payroll reinstatement to refund the salaries in case a final decision upholds the validity
Payroll reinstatement exists when an employee is paid his monthly salary without of the dismissal, the Court realigns the proper course of the prevailing doctrine on
reinstatement pending appeal vis-à-vis the effect of a reversal on appeal.
making him perform actual work. It applies in termination cases where the labor court
declares the dismissal illegal and orders reinstatement of the employee, but the employer
b. Does that mean the employee can work somewhere else?
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Yes. It becomes more logical and practical for the employee to refuse payroll 3. Other related labor relations dispute
reinstatement and simply find work elsewhere in the interim, if any is available.
Intra – union disputes; give an example.
Since reinstatement is immediate, is there a need for an issuance of a writ of It refers to any conflict between and among union members, including grievances arising
execution? from any violation of the rights and conditions of membership, violation of or
The order of reinstatement is immediately executory. The unjustified refusal of the disagreement over any provision of the union’s consitution and by-laws, or disputes
employer to reinstate a dismissed employee entitles him to payment of his salaries arising from chartering or affiliation of union
effective from the time the employer failed to reinstate him despite the issuance of a writ Example: propriety of the disqualification of candidates in the union elections
of execution. Unless there is a restraining order issued, it is ministerial upon the Labor Inter – union dispute involving election of officers, is it possible?
Arbiter to implement the order of reinstatement. In the case at bar, no restraining Yes
order was granted. Thus, it was mandatory on PAL to actually reinstate Roquero or
reinstate him in the payroll. Having failed to do so, PAL must pay Roquero the salary Inter – union disputes; give an example.
he is entitled to, as if he was reinstated, from the time of the decision of the NLRC until It refers to any conflict between and among legitimate labor unions involving
the finality of the decision of the Court.||| (Pfizer, Inc. v. Velaso, G.R. No. 177467, representation questions for purposes of collective bargaining or to any other conflict or
[March 9, 2011], 660 PHIL 434-455) dispute between legitimate labor organizations.
Example: dispute as to who will be the sole and exclusive bargaining agent
Functions of the BLR
1. Set policies, standards, and procedures on the registration and supervision of Compromise agreement
legitimate labor union activites including denial, cancellation, and revocation of It is a contract whereby the parties, by making reciprocal concessions, avoid litigation
labor union permits; or put an end to one already commenced
2. Set policies, standards, and procedures relating to collective bargaining
agreements, and the examination of financial records of accounts of labor When is it valid and binding?
organizations to determine compliance with the relevant laws; and Substantial Requirements:
3. Provide proper orientation to workers on their schemes and projects for 1. It must be freely entered into
improvement of the standards of living of workers and their families. 2. It must not be contrary to law, morals, or public policy
3. It must be reasonable
Administrative Functions of the BLR 4. It must be approved by the authority before whom the case is pending
1. Regulation of registration of the labor unions;
2. Keeping of a registry of labor unions Formal Requirements:
3. Maintenance of a file of CBAs; and 1. In writing
4. Maintenance of a file of all settlements or final decisions of the Supreme Court, 2. Signed in the presence of the Regional Director or his duly authorized
Court of Appeals, NLRC, and other agencies on labor disputes. representative
Jurisdiction of BLR; What types of disputes do they handle? It may be effected at any stage of the proceedings and even when there is already a final
The exclusive and original jurisdiction of BLR executory judgment
To act on its own initiative or upon the request of either or both parties on all:
1. Intra-union conflicts Requisites of a valid compromise agreement
2. Inter-union conflicts The substantial requisites of a valid compromise agreement are the following:
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First, it must be freely entered into by the parties; Second, it must not be contrary to law, YES. A compromise agreement covering a case which is either pending trial, or on
morals or public policy; Third, it must be reasonable; and Fourth, its must be approved appeal, or with final judgment, is allowed and valid, assuming that the elements of a
by the authority before whom the case is pending. valid contract are present. (Mabanua v. Uy)
Formal Requisites: (1) It must be in writing and (2) Signed in the presence of the regional Provision in the Civil Code prohibiting compromise agreement in the execution
director or his duly authorized representative (Rules on Disposition of Labor Standard stage
Cases in Regional Offices) Art. 1306. The contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, morals,
Can there be a valid compromise during: good customs, public order, or public policy. (1255a)Art. 1306. The contracting parties
a. Mediation may establish such stipulations, clauses, terms and conditions as they may deem
YES. The primary purpose of Mediation Conference under Article 234 of the Labor convenient, provided they are not contrary to law, morals, good customs, public order,
Code and Section 8, Rule V of the 2011 NLRC Rules of Procedure is to amicably settle or public policy. (1255a)
the case upon a fair compromise. It is highly encouraged that the parties enter into a
compromise agreement to give a speedy and inexpensive assistance in any kind of labor Art. 1409. The following contracts are inexistent and void from the beginning:
issue or conflict. 1. Those whose cause, object or purpose is contrary to law, morals, good customs,
public order or public policy; xxx
b. Presentation of evidence
YES. A compromise agreement covering a case which is either pending trial, or on How does it violate public policy?
appeal, or with final judgment, is allowed and valid, assuming that the elements of a It will violate public policy because there would be no end to litigation when the case is
valid contract are present. (Mabanua v. Uy) supposed to end because it is already in the execution stage. What is left is the execution
of the judgment and all things and issues already settled. It will only stay and delay the
c. After final judgment resolution of the case.
YES. A compromise agreement may be effected at any stage of the proceedings and
even when there is already a final executory judgment (Article 2040 of the Civil What is a union?
Code). The Court noted that Article 2040 impliedly allowed such agreements; there was A union is any labor organization in the priate sector organized for the collectie
no limitation as to when these should be entered into. (Magbanua v. Uy, G.R. No. bargaining and for other legitimate purposes.
161003, [May 6, 2005], 497 PHIL 511-527) Rights may be waived through a
compromise agreement, notwithstanding a final judgment that has already settled the What is a Legitimate Labor Organization?
rights of the contracting parties. To be valid it must be voluntarily, freely and A legitimate labor organization is any labor organization which is duly registered with
intelligently executed by the parties who have knowledge of the judgment and it must DOLE; the term includes a local/chapter directly chartered by a legitimate federation or
not be contrary to law, morals, good customs and public policy. national union which has been duly reported to the Department in accordance with
Section , Rule VI, Book V of the Implementing Rules.
However, it cannot be entered into when the final judgment is already in the process if
execution (Jesalva v. Bautista). Labor organization v. Legitimate Labor organization
A labor organization is an union or association of employees which exxists in whole or
d. During the decision of final judgment in part for the purpose of collectie bargaining with employers concerning terms and
conditions of employment.

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Does a labor organization have a legal personality? f. To vote on special assessment

As a general rule, it is only the government, through the DOLE that can clothe a labor g. To be deducted of special assessment only with the member’s written
organization with a legal personality to exercise the rights that are provided by law. The authorization
4. Political right- the right to vote and be voted for subject to lawful provisions on
exception would be that chapters, created by the issuance of a duly registered legitimate
qualifications and disqualifications.
federation or national union of a charter certificate indicating the establishment of the
aforementioned chapters, would have a Tentative Legal Personality only for the purpose Types of Legitimate Labor Organization
of filing a petition for certification election. Independent Union – Is any labor organization operating at the enterprise level whose
legal personality is derived through independent action for registration with the BLR or
Furthermore, we would note though that those labor organizations organized under the DOLE prescribed under Art. 240 of the LC. It may be affiliated with a federation,
Corporation Code and is issued a certificate of incorporation by the SEC shall only have national or industry union, in which case it may also be referred to as an affiliate.
a juridical capacity before the regular courts of justice and will not acquire the rights Company union – any labor organization whose formation, function or administration
and privileges of a legitimate labor organization. has been assisted by any act defined as ULP under the LC.
Labor organization is registered where? Bargaining Representative – means a legitimate labor organization whether or not
1. For registration of: independent labor unions, chartered locals, or worker’s employed by the employer.
associations, it shall be filed with the Regional office where the applicant
principally operates. It shall be processed by the Labor Relations Division at the Exclusive Bargaining Representative – Is a legitimate labor union duly recognized or
Regional office. certified as the sole and exclusive bargaining representative or agent of all the employees
2. Applications for registration of federations, national unions or workers association in a bargaining unit.
operating in more than one region shall be filed with the Bureau or Regional
offices, but shall be processed by the Bureau. Legitimate Worker’s Association – Is an association of workers organized for mutual
aid and protection of its members or for any legitimate purpose other than collective
bargaining registered with the DOLE.
How do you create a labor organization?
Modes of Acquiring Legitimacy for Labor Organizations: National Union/Federation – any labor organization with at least 10 locals/chapters
1. Registration with the BLR (Independent Union) each of which must be a duly certified or recognized collective bargaining agent.
2. Chartering or issuance of a federation or national union of a charter certificate.
Industry Union – group of legitimate LLO within an identified industry, organized for
Rights of LLO collective bargaining or for dealing with employers concerning terms and conditions of
1. Deliberative and Decision- Making Right- the right to participate in deliberations employment within an identified industry or for participating in the formulation of social
on major policy questions and decide by secret ballot. and employment policies, standards, and programs in such industry registered with
2. Right to information- the right to be informed about: A.) the organization’s DOLE.
constitution and by laws; B.) The collective bargaining Agreement, and labor laws
3. Rights over Money-matters- the rights of members: Trade Union Center – group of registered national unions/ federations organized for
a. against imposition of excessive fees mutual aid and protection of its members and for assisting such members in collective
b. Against unauthorized collection of contributions or unauthorized bargaining or for participating in the formulation of social and employment policies,
disbursements standards and programs duly registered with the Department.
c. To require adequate records of income and expenses
d. To access financial records Alliance – aggregations of unions existing in one line of industry or in a conglomerate,
e. To vote on officer’s compensation a group of franchisees, a geographical area, or an industrial center.
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4. The annual financial reports if the applicant has been in existence for one or more
Is there any special power or privilege granted by law to a Federation? years, unless it has not collected any amount from the members, in which case a
Yes, they are given the power to clothe a labor organization with a legal personality to statement to this effect shall be included;
exercise the rights that are provided by the law. A power which is vested only to the 5. The applicant’s constitution and by - laws, minutes of its adoption or ratification,
Government, through the DOLE. and the list of the members who participated in it. The list of ratifying members
shall be dispensed with where the constitution and by - laws was ratified or
How is this exercised? – By issuing a charter certificate adopted during the organizational meeting. In such a case, the factual
circumstances of the ratification shall be recorded in the minutes of the
organizational meeting(s).
Tentative Legal Personality If you are the BLR, and those documents are submitted to you, do you think they
A duly registered federation or national union may directly create a local chapter by are sufficient?
issuing a charter certificate indicating the establishment of a local chapter. The chapter No. The documents submitted have to be reviewed as a ministerial duty.
shall acquire legal purposes for purposes of filing a petition for certification election
from the date it was issued a charter certificate. What is supposed to be the action of the Bureau if those requirements are
complete?
What is a trade union? Why is it referred to as such? It becomes mandatory for the BLR to check if the requirements under Art. 240 have
It is a group of registered national unions or federations organized for the mutual aid been sedulously complied with.
and protection of its members and for assisting such members in collective bargaining
or for participating in the formulation of social and employment policies, standards, and Can the Bureau deny the application? On what grounds?
programs duly registered with the Department. If its application for registration is vitiated by falsification and serious irregularities,
especially those appearing on the face of the application and the supporting documents,
What is an independent union? a labor organization should be denied recognition as a legitimate labor organization.
Any labor organization operating at the enterprise level whose legal personality is
derived through an independent action for registration with the BLR or DOLE Chartering
prescribed under Art. 240 of the Labor Code. It may be affiliated with a federation, A duly registered federation or national union may directly create a local chapter by
national or industry union, in which case it may also be referred to as an affiliate. issuing a charter certificate indicating the establishment of the local chapter. The chapter
shall acquire legal personality only for purposes of filing a petition for certification
ILU Requirements for Registration election from the date it was issued a charter certificate.
1. The name of the applicant labor union, its principal address, the name of its
officers and their respective addresses, approximate number of employees in the Outline the procedure for chartering
bargaining unit where it seeks to operate, with a statement that it is not reported 1. A duly registered federation or national union issues a charter certificate indicating
as a chartered local of any federation or national union; the establishment of the local chapter.
2. The minutes of the organizational meeting(s) and the list of employees who 2. The charter certificate is filed with the Regional Office or BLR within 30 days
participated in the said meeting(s); after the issuance of the charter certificate
3. The name of all its members comprising at least 20% of the employees in the 3. The chapter shall be entitled to all other rights and privileges of a legitimate labor
bargaining unit; organization only upon the submission of the additional requirements:

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a. Names of the chapter’s officers, their addresses, and the principal office of the 4. To own property, real or personal , for the use and benefit of the labor organization
chapter and its members;
b. Chapter’s constitution and by-laws 5. To sue and be sued in its registered name; and
c. Provided, that where the chapter’s constitution and by-laws are the same as that 6. To undertake all other activities designed to benefit the organization and its
of the federation or the national union, this fact shall be indicated accordingly members, including cooperative, housing, welfare and other projects not contrary
4. The additional requirements shall be certified under oath by the secretary or to law.
treasurer of the chapter and attested by its president.
Notwithstanding any provision of a general or special law to the contrary, the income
and the properties of legitimate labor organizations, including grants, endowments, gifts,
donations and contributions they may receive from fraternal and similar organizations,
local or foreign, which are actually, directly and exclusively used for their lawful
What is its purpose? purposes, shall be free from taxes, duties and other assessments. The exemptions
The purpose is for a duly registered federation or national union may directly create a provided herein may be withdrawn only by a special law expressly repealing this
local chapter which shall acquire legal personality only for purposes of filing a petition provision.
for certification election from the date it was issued a charter certificate.
Employees of San Miguel Corporation – Rank and file; are you qualified to be a
Rights and Privileges of a Legitimate Labor organization member of the SMC’s employee union?
(USER-FOE) Yes. Under Art.292(c), any employee, whether employed for a definite period or not,
1. Undertake activities for the benefit of the organization and its members; shall beginning on his first day of service, be eligible for purposes of union membership.
2. Sue and be sued;
3. Exclusive representative of all employees; Does it follow that if you are member, may you run as its officer?
4. Represent union members; Yes. Under Art.250(c), no qualification requirements for candidacy to any position shall
5. Furnished by employers of audited financial statements; be imposed other than membership in good standing in subject labor organization. And
6. Own properties; and provided that the member is not an individual belonging to any subversive organization
7. Exemption from taxes or engaged in any subversive activity nor convicted of a crime involving moral
turpitude.(Art 250(e)&(f)).
Article 251: “A legitimate labor organization shall have the right:
1. To act as the representative of its members for the purpose of collective To be a member, must you not be convicted of a crime that makes you a subversive?
bargaining; Yes. Under art 250(e),”no labor organization shall knowingly admit as members or
2. To be certified as the exclusive representative of all the employees in an continue in membership any individual who belongs to a subversive organization or who
appropriate bargaining unit for purposes of collective bargaining; is engaged directly or indirectly in any subversive activity.”
3. To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss statement, How about convicted of moral turpitude?
within 30 calendar days from the date of the receipt of the request, after the union Under Art. 250(f), “no person who has been convicted of a crime involving moral
has been duly recognized by the employer or certified as the sole and exclusive turpitude shall be eligible for election as a union officer or for appointment to ang
bargaining representative of the employees in the bargaining unit, or within 60 position in the union.” So as long as the person is not running as an officer or for any
calendar days before the expiration of the existing collective bargaining position in the union, the person may become a member of the union.
agreement, or during the collective bargaining negotiation;
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Rights and Conditions of Membership in a Labor Organization telegraph operators, who having access to confidential information, may become the
Please refer to Art.250 of the labor code. source of undue advantage. (Golden Farms, Inc. vs. Ferrer-Calleja)
You are an employee in good standing – is there any reason why you may be Why are managerial employees disqualified from forming unions?
disqualified in joining a union? Conflict of interest. Managerial Employees are the alter ego of the employers and thus
Yes, if I am one of the employees disqualified to join a union. they are supposed to be on the side of the employer to act as its representatives, and to
see to it that its interests are well-protected. The employer is not assured of such
Who are disqualified from joining a union? protection if these employees are union members. In the same manner, the labor union
1. Employees of international organizations with immunities such as UN, IRRI and might not be assured of their loyalty to the union in view of the evident conflict of
International Catholic Migration Commission; interest. The union can also become company-dominated with the presence of
2. Members of the Armed Forces of the Philippines, including police officers, managerial employees in union membership. (Bulletin Publishing Co, Inc. v. Sanchez)
policemen, firemen and jail guards;
3. Managerial employees Is it possible to have 2 unions at the enterprise level?
a. Whose functions are normally considered as policy – making or managerial; Yes, it is possible to have 2 unions or more representing different trades per enterprise.
b. Whose duties are of a highly confidential or highly technical in nature;
4. Confidential employees whose position are linked to labor relations matters 10,000 employees in X Company located in only one compound. Can you have 10
5. High – level or managerial government employees; unions of Rank and File employees?
6. Aliens without valid working permits; or aliens with valid working permits but No. 20% of the employees is the required minimum members for an independent union.
are nationals of a country which do not allow Filipinos to exercise the right of self In this case, 20% of 10,000 employees is 2,000. Hence, only 5 independent unions of
– organization and to join or assist labor organizations; rank and file employees are allowed.
7. Non – employees;
By implication, the maximum number of members that an LLO could have is the entire
8. Government employees, including Government – owned and controlled
number of employees of the company. It should not exceed the said number, because
corporations with original charters;
the LLO will have unqualified members if that happens.
9. Employees of cooperatives who are at the same time its members;
10. Subversives or those engaged in subversive activities.
Is double membership allowed?
Yes, it is possible in case of an enterprise where there are or more labor unions
Confidential employees – illustrate.
representing different trade in that enterprise.
Those who by reason of their positions or nature of work are required to assist or act in
a fiduciary manner to managerial employees and hence, are likewise privy to sensitive FINALS
and highly confidential records. Although Article 245 of the Labor Code limits the
ineligibility to join, form and assist any labor organization to managerial employees,
COLLECTIVE BARGAINING
jurisprudence has extended this prohibition to confidential employees. By the very
nature of their functions, they assist and act in a confidential capacity to, or have access What is a Collective Bargaining Unit? (As defined by Book 5)
to confidential matters of, persons who exercise managerial functions in the field of Bargaining Unit refers to a group of employees sharing mutual interest within a given
labor relations. As such, the rationale behind the ineligibility of managerial employees employer unit, comprised of all or less than all of the entire body of employees in the
to form, assist or join a labor union equally applies to them. (Philips Industrial employer unit or any specific occupational or geographical grouping within such
Development v. NLRC; Metrolab Industries, Inc. vs. Roldan-Confesor) This rationale government unit
holds true also for confidential employees such as accounting personnel, radio and
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What is the relevance of determining the Collective Bargaining Unit? 3. Employment Status: such as (a) temporary; (b) seasonal; and (c) probationary
To encourage a truly democratic method of regulating the relations between the employee.
employers and employees by means of agreements free entered into through collective 4. Prior Collective Bargaining History: The principle puts premium to the prior
bargaining collective bargaining history and affinity of the employees. However, this has
been held as neither decisive nor conclusive.
Are all employees included in the CBU?
No. Similar to the ineligibility of managerial employees to join any labor organizations What is the most important factor?
as provided for under Art 255 of the Labor Code, employees who are managerial Mutuality of interests. Industrial experience indicates that the most efficacious
employees, supervisory employees and confidential employees are excluded from a bargaining unit is one which is comprised of constituents enjoying a community of
CBU interest (Alhambra Cigar v Alhambra Employee’s Assoc, 1960)
Factors in determining mutuality of interests: Similarity in…
All v. Less than all 1. Determination of earnings
It comes from the provision as defined by Book 5 where a collective bargaining unit 2. Benefits, hours of work, other terms and conditions of employment
shall comprise of ALL or LESS THAN ALL of the entire body of employees… 3. Kinds of work performed
An example (as provided by Sir ) of All would be all the rank-and-file employees of X 4. Qualifications, skills and training of employees
company, while Less than all would be when there are rank-and-file employees and 5. Geographic proximity
managerial employees, they would be part of the less than all since they are not included 6. Continuity or integration of production processes
in the unit 7. Common supervision and determination of labor-relations policy
8. Extent of union organization
How do we determining if these employees belonging in one CBU?
Bargaining Unit is a group of employees of a given employer, comprised of all or less What is Collective Bargaining? Why do we call it collective? Who are the parties?
than all the entire body of the employees, which, consistent with equity to the employer, Who represents the employees?
indicate to be best suited to serve the reciprocal rights and duties of the parties under the Collective Bargaining: A democratic framework to stabilize the relation between the
collective bargaining provision of law. labor and management to create a climate of sound and stable industrial peace. It is a
mutual responsibility of the employer and the union and is their legal obligation (Kiok
Why do rank - and - file employees belong to the same CBU? Loy v. NLRC, 1986)
There is a mutuality of interests among rank-and file employees. They have similar
employment status, same duties and responsibilities and substantially similar Collective Bargaining does not end with the execution of an agreement. It is a
compensation and working conditions. continuous process which requires both parties, the employer and duly authorized
representatives of employees, to deal with each other with open and fair minds and
What is the Globe Doctrine? sincerely endeavor to fight the obstacles in the process to stabilize the employer-
In defining the appropriate bargaining unit for purposes of collective bargaining or as 3 employee relationship (PAMBUSCO v. PAMBUSCO Employees Union)
separate and distinct units, the determining factor is the desire of the workers themselves
(Globe Machine and Stamping Co). Purpose of Collective Bargaining: Encourage a truly democratic method of regulating
the relations between the employers and employees by means of agreements freely
Are there important factors to consider in determining the appropriate CBU? entered in through collective bargaining.
1. Community of Interest Doctrine/ Substantial Mutual Interest Rule:
characterized by the similarity of employment status, same duties and Is there a duty to bargain collectively on the part of the employer if there is no
responsibilities and substantially similar compensation and working conditions exclusive representative?
2. Globe Doctrine: In defining the appropriate bargaining unit for purposes of NO. Both parties must negotiate through their representatives. Even though no majority
collective bargaining or as 3 separate and distinct units, the determining factor is representative has been designated, an employer who bargains with a minority
the desire of the workers themselves. representative does so at his peril since the subsequent appearance of a properly
designated majority representative may oblige the employer to negotiate with the latter
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despite the antecedent negotiations with or commitments to the minority representative. NMCB may upon request of either or both parties or at its own initiative, and encourage
(Azucena) the parties to submit the dispute to a voluntary arbitrator. If not resolved, the parties may
go to where they want and resort to any other lawful means.
What are the jurisdictional preconditions in collective bargaining? (SPED)
The employer is not under any legal duty to initiate contract negotiation. The mechanics Normally a bargaining process is initiated by proposal or demand, who usually
of contract negotiation are set in motion only when the following jurisdictional initiates the collective bargaining?
preconditions are present: It is the union which is tasked to represent the employees that initiate collective
1. Possession of the Status of majority representation of the employees’ bargaining
representative in accordance with any of the means of selection or designation
provided for by the Labor Code, Art 267 et seq Can the employer also demand?
Exclusive Bargaining Representative - “any legitimate labor organization duly Yes. Although the representative bargaining union is the one who usually initiates a
recognized or certified as the sole and exclusive bargaining agent of all the employees collective bargaining, the employer is not precluded from doing so.
in a bargaining unit. (Implementing Rules of Book V) [NOTE: The bargaining
representative of the employees is an entity--the union--and not the officers of the union]
2. Proof of majority representation What will happen if the employer does not reply to the proposal?
A. Certification of the BLR that the representative of the employees is the sole and The Lock, Stock and Barrel Rule shall apply as held in the case of Kiok Loy vs. NLRC
exclusive bargaining agent having won in a certification election “Under this rule, the CBA proposed by the union may be imposed lock, stock and barrel
B. Where a majority representative has been designated, it is a ULP for the on employer who refused to negotiate a CBA. The employer which violates the duty to
employer as a refusal of collective bargaining, to deal and negotiate with the bargain collectively, loses its statutory right to negotiate or renegotiate the terms and
minority representative to the exclusion of the majority representative conditions of the draft CBA proposed by the union. Hence, the proposals of the union
(Azucena pg 362) may be adopted as the CBA and, consequently, imposed on the employer, lock, stock
and barrel”
3. Employer-Employee relationship
The duty to bargain collectively arise only between the employer and its employee. What is the duty to bargain collectively? (2 provisions)
Where neither party is an “employer” nor an “employee” of the other, no such duty Article 263 Meaning of duty to bargain collectively. The duty to bargain collectively
would exist (Allied Free Workers’ Union v. Compania Maritima, 1967) means the performance of a mutual obligation to meet and convene promptly and
expeditiously in good faith for the purpose of negotiating an agreement with respect to
4. A demand to bargain under Art 261 par (a), Labor Code (Kiok Loy v NLRC, wages, hours of work and all other terms and conditions of employment including
1986) proposals for adjusting any grievances or questions arising under such agreement and
An employer’s duty to recognize and bargain collectively with a union does not arise executing a contract incorporating such agreements if requested by either party but such
until the union requests the employers to bargain. duty does not compel any party to agree to a proposal or to make any concession.
In general, what are the procedures in collective bargaining? Article 264 DUTY TO BARGAIN COLLECTIVELY WHEN THERE EXISTS A
When a party desires to negotiate an agreement, it shall serve a written notice upon the COLLECTIVE BARGAINING AGREEMENT Duty to Bargain Collectively is an
other party with a statement of proposals. obligation to meet and convene promptly and expeditiously in good faith for the purpose
of negotiating an agreement with respect to wages, hours of work and all other terms
Reply by the other party within 10 calendar days with counter proposals and conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating such
in case of differences, either party may request doe a conference which must be held agreements if requested by either party but such duty does not compel any party to agree
within 10 calendar days from receipt if request to a proposal or to make any concession
What if there is no success in negotiation? What are the 4 ULPs in Collective Bargaining?
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1. Bad faith in bargaining (boulwalrism), including failure or refusal to execute the

CBA, if requested Mandatory provisions of the CBA
2. Evading the mandatory subjects of bargaining Wages, hours, and other terms and conditions of employment are considered mandatory
3. Gross violation of the CBA provisions of the CBA. A mere remote, direct, or incidental impact is insufficient to
4. Failure or refusal to meet and convene render a subject a mandatory subject of bargaining. It must materially or significantly
Violations of the collective bargaining agreement, except those which are gross in affect the terms or conditions of employment.
character, shall no longer be treated as an unfair labor practice but as a grievance under
the CBA The following are examples of matters considered as mandatory subjects of bargaining:
1. Wages and other types of compensation, including merit increases
What is ULP? 2. Working hours and working days, including work shifts
ARTICLE 258 - Unfair labor practices violate the constitutional right of workers and 3. Vacations and holidays
employees to self-organization, are inimical to the legitimate interests of both labor and 4. Bonuses
management, including their right to bargain collectively and otherwise deal with each 5. Pensions and retirement plans
other in an atmosphere of freedom and mutual respect, disrupt industrial peace and 6. Seniority
hinder the promotion of healthy and stable labor-management relations. 7. Transfer
Consequently, unfair labor practices are not only violations of the civil rights of both 8. Lay-offs
labor and management but are also criminal offenses against the State which shall be 9. Employee workloads
subject to prosecution and punishment as herein provided. 10. Work rules and regulations
11. Rent of company houses
Kiok Loy Doctrine 12. Union security arrangements
Under the Kiok Loy Ruling or Lock Stock and Barrel Rule, the CBA proposed by the
union may be imposed lock, stock, and barrel on employer who refused to negotiate a Non - mandatory provisions of the CBA
CBA. The employer which violates the duty to bargain collectively, loses its statutory To determine non-mandatory provisions, relate to the employer-employee relationship
right to negotiate or renegotiate the terms and conditions of the draft CBA proposed by if it is not in line with the usual course of employment then it is non-mandatory. Any
the union. Hence, the proposals of the union may be adopted as the CBA and, party may not insist on bargaining to the point of impasse otherwise, he will be construed
consequently, imposed on the employer lock, stock, and barrel. as bargaining in bad faith.
Bargaining in Bad Faith Why is it important to determine mandatory and non - mandatory provisions of
Good faith or bad faith bargaining is an inference to be drawn from the facts. It requires the CBA?
that the reviewing court look into the evidence to find if indeed there is proof that is The importance in determining mandatory from non-mandatory provisions is that the
substantial enough to show such bad faith. employer’s duty to bargain is LIMITED to MANDATORY bargaining subjects; as to
the other matters, the employer is free to bargain or not to bargain. It must also be
Good faith bargaining demands more than sterile and repetitive discussion of formalities remembered that the initiation of a Collective Bargaining Agreement is on the part of
precluding actual negotiation, more than formal replies which constitute in effect a the employee for the employer would like to maintain the status quo of no existing CBA.
refusal to treat with the union, and more than a willingness to enter upon a sterile Thus, there would be different effects in negotiation.
discussion of union-management differences.
What is boulwarism?
3 types of Bargaining in Bad Faith Also known as BAD FAITH BARGAINING, a labor law principle in which
1. Surface Bargaining - going through the motion of negotiating without any legal management opens the negotiation with a generous offer that is not meant to be
intent to reach an agreement negotiated. Pioneered by General Electric's Lemuel Boulware, the National Labor
2. Boulwarism - employer submits its proposals and adopts a “take it or leave it” Relations Board considered this as an unfair labor practice as essentially, no labor
stand. This is not negotiation because the “take it or leave it” stand implies threat. negotiation has taken place. This is the famous for the TAKE IT OR LEAVE IT posture
3. When the employer directly bargains with the employee disregarding the union. of the employer.
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What is bargaining to the point of impasse? The CBA should be posted in at least 2 conspicuous places for in the establishment 5
Impasse is synonymous to deadlock or standstill which presupposes reasonable effort in days before its ratification.
good faith bargaining but despite noble intentions does not conclude an agreement
between the parties (Divine Word University of Tacloban vs Sec. of Labor). When does the CBA take effect?
If the CBA is the very first in the bargaining unit, the effectivity date is whatever date
If over a mandatory subject, party may insist on bargaining and will not be construed as the parties agree on.
bargaining in bad faith. This is because the duty to bargain requires meeting and
convening on the terms and conditions of employment but does not require assent to the If the CBA is a renegotiated one, the following rules apply:
other party’s proposals. 1. If the renegotiation is finished and the new CBA is concluded within six (6)
months from the expiry of the old CBA, then the new CBA starts to take effect on
If over a non-mandatory subject, party may not insist on bargaining to the point of the date following such expiry date;
impasse otherwise, he will be construed as bargaining in bad faith. 2. If no new CBA was completed within the six-month period, the new CBA, when
done, will not automatically retroact. If it will retroact at all, the retroaction date
will have to be agreed upon by the negotiating parties.
Is bargaining to the point of impasse allowed? Automatic Renewal Doctrine
It depends; bargaining to the point of deadlock may or may not amount to bargaining in The Collective Bargaining Agreement shall remain effective and enforceable even after
bad faith depending on whether the insistence refers to a mandatory or non-mandatory the expiration of the period fixed by the parties as long as no new agreement is reached
subject of bargaining. by them. It is in intended to avoid or prevent a situation where no collective bargaining
agreement at all would govern between the employer and its employees. Pertains only
Over a mandatory subject a party may insist on bargaining, even to the point of to the economic provisions of the CBA.
deadlock, and his insistence will not be construed as bargaining in bad faith. The duty
to bargain requires meeting and convening on terms and conditions of employment but What does the code say when it comes to the duration of the CBA?
does not require assent to the other party’s proposals. With respect to the representation aspect, the same lasts for five (5) years. As to the
economic and non-economic provisions, the same may last for a maximum period of
Over a non-mandatory subject- a party may not insist on bargaining to the point of three (3) years after the the execution of the CBA.
impasse, otherwise his insistence can be construed as bargaining in bad faith. It may be
construed as evasion of duty to bargain. Such evasion is considered ULP. Why is the minimum period of the representation 5 years?
Sen. Ernesto F. Herrera proposed a five-year term for the representation of a CBA so
What if there is deadlock in non - mandatory subjects? that any “outside union” could not disturb the political situation in the enterprise except
This is construed as bargaining in bad faith, an evasion of duty to bargain. This is in the last 60 days of the fifth year. The five-year term would also train the members to
considered as ULP. be careful in choosing their union. He expressed the view that within the five-year period
(except the during its last 60 days), the union that negotiated the CBA could not be
When is violation of CBA considered as ULP? replaced. But the union officers could be changed because after all, he said, the
The violation must be gross, flagrant and/or malicious refusal to comply with the members’ problem was usually more the union officers than the union itself. (Azucena)
economic provision of the CBA.
What is the freedom period?
Note: If the violation is not gross, it is not ULP but only a grievance under the CBA. As provided under Article 265, the freedom period refers to the 60-day period
immediately before the date of expiry of the 5-year term of the CBA. It is the last 60
Who will ratify the CBA? What is the procedure involved? days of the 5th and last year of the CBA wherein a petition questioning the
The agreement negotiated by the employees’ bargaining agent should be ratified or majority status of an incumbent bargaining agent and the holding of a certification
approved by the majority of all the workers in the bargaining unit represented in the election may be allowed.
negotiation.
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When does the CBA expire?

The CBA, with respect to the representation aspect, shall be for a term of 5 years; with Proof must also be submitted to show:
respect to other provisions— economic and non-economic— the same may last for a 1. Bargaining Unit is ununionized
maximum period of 3 years after the execution of the CBA. 2. Requesting Union is the only Union
3. CBU majority are members of the Union
How do we determine the 60 - day period?
It is the 60-day period immediately preceding the expiration of the CBA. It only Evidence: Payroll, registration certificate as Independent Labor Organization, etc.
applicable to Organized Establishments (Art.268). The 60-day period shall be
determined based on when is the effectivity date of the CBA. What is the effect if you are certified as the SEBA when there exist other two unions
1. If it is the first ever CBA, the effectivity date is whatever date the parties agree in the company?
on. Effect of SEBA Certification:
2. If it is renegotiated CBA, the effectivity date depends upon the duration of 1. Upon issuance of certification as SEBA, the certified union shall enjoy the rights
conclusion: and privileges of an exclusive bargaining agent of all the employees within the
a. If it is concluded within 6 months from the expiry date, the new CBA will bargaining unit
retroact to the date following the expiry date; 2. Certification shall bar the filing of a Petition for Certification Election by any LLO
b. If the renegotiated CBA is concluded beyond 6 months from the expiry date, for period of 1 year from issuance
the matter of retroaction and effectivity is left with the parties.
Thus, the other LLO may file a Petition for Certification Election after 1 year from
What can you do during the 60 - day freedom period? issuance of certificate.
Within the 60-day freedom period a labor union may disaffiliate from the mother union
to form a local or independent union, or a labor union may file a request for SEBA Who may file the petition for certification election?
Certification. 1. Any LLO including a national union or federation that has issued a charter
certificate to its local/chapter or the local/chapter itself.
Three methods of determining the Bargaining Union 2. An employer, when requested to bargain collectively in a bargaining unit where
1. SEBA Certification no registered CBA exists
2. Certification Election w/ or w/o runoff
3. Consent Election When may an employer file a certification election?
When requested to bargain collectively by a bargaining unit where no registered CBA
What is SEBA? exists
SEBA Certification is the process whereby the DOLE recognizes a labor organization
as exclusive bargaining representative of the employees in the appropriate bargaining What is certification year?
unit Refers to the period wherein collective bargaining should begin, which is within 12
months following the determination and certification of employees’ exclusive
What must be stated or shown by the applicant of a SEBA? bargaining representative
Where to file application: Regional Office which issued its certificate of registration
or certificate of creation of chartered local What will trigger the right of the employer to file for a petition for certification
election?
Request shall indicate: The request to bargain collectively in a bargaining unit where no registered CBA exists
1. Name and address of the requesting LLO
2. Name and address of the company where it operates Procedure involved in filing a certification election
3. Bargaining unit sought to be represented In organized establishments, when a verified petition questioning the majority status of
4. Approximate number of employees in the bargaining unit the incumbent bargaining agent is filed by any legitimate labor organization including a
5. Statement of non-existence of other LLO/CBA national union or federation which has already issued a charter certificate to its local
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chapter participating in the certification election or a local chapter which has been issued If the Regional Director finds the documents to be complete, he/she shall issue, during
a charter certificate by the national union or federation before the Department of Labor the conference, a certification as sole and exclusive bargaining agent enjoying the rights
and Employment within the sixty (60)-day period before the expiration of the collective and privileges of an exclusive bargaining agent of all employees in the covered
bargaining agreement, the Med-Arbiter shall automatically order an election by secret bargaining unit.
ballot when the verified petition is supported by the written consent of at least twenty-
five percent (25%) of all the employees in the bargaining unit to ascertain the will of the Is there a need to show that it enjoys the support of the majority of the employees?
employees in the appropriate bargaining unit. How will it be proved?
Yes, it must be shown that a majority of the employees support the legitimate labor
To have a valid election, at least a majority of all eligible voters in the unit must have organization be the one representing them as a particular bargaining unit as provided for
cast their votes. The labor union receiving the majority of the valid votes cast shall be by the Rules (Department Order No. 40-03, as amended by Department Order No. 40-i-
certified as the exclusive bargaining agent of all the workers in the unit. When an 15, Rule VII, Section 4):
election which provides for three or more choices results in no choice receiving a
majority of the valid votes cast, a run-off election shall be conducted between the labor “a.) Names of the employees in the covered bargaining unit who signify the
unions receiving the two highest number of votes: Provided, That the total number of support for the certification, provided that said employees comprise at least
votes for all contending unions is at least fifty percent (50%) of the number of votes cast. the majority of the number of employees in the covered bargaining unit.”
In cases where the petition was filed by a national union or federation, it shall not be Can employer apply for voluntary recognition?
required to disclose the names of the local chapter’s officers and members At the Yes, provided the following requirements are present:
expiration of the freedom period, the employer shall continue to recognize the majority 1. Voluntary recognition is possible only in an unorganized establishment
status of the incumbent bargaining agent where no petition for certification election is 2. Only 1 union is asking for recognition, and
filed. 3. The Union voluntarily recognized should be the majority union as indicated by
the fact that members of the bargaining unit did not object the projected
Can you file for a petition for certification election when there is only one LLO? recognition.
Yes. According to Department Order No. 40-03, as amended by Department Order No.
40-i-15, Rule VII, Section 4 to Section 4.1, if the Regional Director finds the What is employer is a bystander in certification?
establishment unorganized with only one legitimate labor organization, he/she shall call In all cases, whether the petition for certification election is filed by an employer or a
a conference within five (5) work days for the submission of the following: legitimate labor organization, the employer shall not be considered a party thereto with
1. Names of the employees in the covered bargaining unit who signify the support a concomitant right to oppose a petition for certification election. the employer's
for the certification, provided that said employees comprise at least the majority participation in such proceedings shall be limited to:
of the number of employees in the covered bargaining unit; and 1. Being notified or informed of petitions of such nature; and
2. Certification under oath by the President of the requesting union or local that all 2. submitting the list of employees during the pre-election conference should the
documents submitted are true and correct based on his/her personal knowledge. Med-Arbiter act favorably on the petition.
The submission herein mentioned shall be presumed to be true and correct unless Two rights of an employer as a mere bystander
contested under oath by any member of the bargaining unit during the validation Article 271 of the Labor Code -
conference. For this purpose, the employer or any representative of the employer shall The employer’s participation in such proceedings shall be limited to:
not be deemed a party-in-interest but only as a by-stander to the process of certification. 1. Being notified or informed of petitions of such nature; and
2. Submitting the list of employees during the pre-election conference should the
If the requesting union or local fails to complete the requirements for SEBA Med-Arbiter act favorably on the petition
Certification during the conference, the request for SEBA Certification shall be referred
to the election officer for the conduct of election pursuant to Rule IX (Conduct of What if there is a request from employees, the employer is allowed to file a petition
Certification Election) of these Rules. for certification election?
Yes, the employer is allowed to file a petition for certificate election. Under Article 270
of the Labor Code, when requested to bargain collectively, an employer may petition
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the Bureau for an election. If there is no existing certified collective bargaining 2. The name and address of the company where it operates
agreement in the unit, the Bureau shall, after hearing, order a certification election. 3. The bargaining unit sought to be represented
4. The approximate number of employees in the bargaining unit
What if the employer does by himself, is it an interference of their constitutional 5. The statement of the existence/non-existence of other labor organization/CBA.
rights? Will it amount to ULP?
Yes, it will amount to ULP. Under Article 259 (d) of the Labor code, it shall be unlawful Assuming that X union is the only LLO in the company, what is the procedure for
for an employer to initiate, dominate, assist or otherwise interfere with the formation or the certification?
administration of any labor organization, including the giving of financial or other According to Department Order No. 40-03, as amended by Department Order No.
support to it or its organizers or supporters. 40-i-15, Rule VII, Section 4 to Section 4.1, if the Regional Director finds the
establishment unorganized with only one legitimate labor organization, he/she shall call
The general rule is that an employer has no standing to question a certification election a conference within five (5) work days for the submission of the following:
since this is the sole concern of the workers. Law and policy demand that employers 1. Names of the employees in the covered bargaining unit who signify the support
take a strict, hands-off stance in certification elections. The bargaining representative of for the certification, provided that said employees comprise at least the majority
employees should be chosen free from any extraneous influence of management. A labor of the number of employees in the covered bargaining unit; and
bargaining representative, to be effective, must owe its loyalty to the employees alone 2. Certification under oath by the President of the requesting union or local that all
and to no other (Golden Farm Inc. vs. The Honorable Sec. of Labor, G.R. 102130, July documents submitted are true and correct based on his/her personal knowledge.
26, 1994).
. The submission herein mentioned shall be presumed to be true and correct unless
BARGAINING REPRESENTATIVES, GRIEVANCE MACHINERY AND contested under oath by any member of the bargaining unit during the validation
VOLUNTARY ARBITRATION conference. For this purpose, the employer or any representative of the employer shall
not be deemed a party-in-interest but only as a by-stander to the process of
Duty to bargain collectively certification.
Article 263 - The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good faith for the purpose If the requesting union or local fails to complete the requirements for SEBA
of negotiating an agreement with respect to wages, hours of work and all other terms Certification during the conference, the request for SEBA Certification shall be referred
and conditions of employment including proposals for adjusting any grievances or to the election officer for the conduct of election pursuant to Rule IX (Conduct of
questions arising under such agreement and executing a contract incorporating such Certification Election) of these Rules.
agreements if requested by either party but such duty does not compel any party to agree
to a proposal or to make any concession. If the Regional Director finds the documents to be complete, he/she shall issue, during
the conference, a certification as sole and exclusive bargaining agent enjoying the rights
How do we choose the exclusive bargaining representative? and privileges of an exclusive bargaining agent of all employees in the covered
Section 3 of Department Order No. 40-i-15, which has repealed the rules on Voluntary bargaining unit.
Recognition in Department Order No. 40-03, therefor, the determination of exclusive
bargaining representative shall be done through a SEBA (Sole and Exclusive Is there a need to show that it enjoys the support of the majority of the employees?
Bargaining Agent) Certification. SEBA Certification is the process whereby the How will it be proved?
DOLE recognizes a labor organization as the exclusive bargaining representative of Yes, it must be shown that a majority of the employees support the legitimate labor
employees in the appropriate bargaining unit. organization be the one representing them as a particular bargaining unit as provided for
by the Rules (Department Order No. 40-03, as amended by Department Order No.
What are the requirements for SEBA certification? 40-i-15, Rule VII, Section 4):
Department Order No. 40-03, as amended by Department Order No. 40-i-15, Rule
VII, Section 2 provides for the following requirements in SEBA Certification: “a.) Names of the employees in the covered bargaining unit who signify the
support for the certification, provided that said employees comprise at
1. The name and address of the requesting legitimate labor organization
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least the majority of the number of employees in the covered

bargaining unit.” Who may file for a petition for certification election?
In organized establishments, a verified petition questioning the election may be filed by
If it cannot prove that it enjoys majority support, will the Regional Office deny the any legitimate labor organization including a national union or federation which has
petition? already issued a charter certificate to its local chapter participating in the certification
Yes, the Regional Office shall deny the petition. Under section 4 of DO 40-i-5, the election or a local chapter which has been issued a charter certificate by the national
requisites for SEBA are as follows: union or federation.
1. The names of employees in the covered bargaining unit who signify their support
for the certification, provided that said employees comprise at least majority of In any establishment where there is no certified bargaining agent, a certification election
the number of employees in the covered bargaining unit; and shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any
2. Certification under oath by the president of the requesting union or local that all legitimate labor organization, including a national union or federation which has already
documents submitted are true and correct based on his personal knowledge issued a charter certificate to its local/chapter participating in the certification election
or a local/chapter which has been issued a charter certificate by the national union or
If the requesting union or local fails to complete the requirements for SEBA during the federation.
conference, the request for SEBA shall be referred to the election officer for the conduct
of election. It may also be filed by the employer.
So it is not required to show the majority support as long as it is the only LLO? If you are an employer and you want to file for a petition for certification election.
Why is there no need? Would that be tantamount to ULP?
Under section 4 of DO 40-i-15, the proof of majority support is a requirement for the No, not automatically. When requested to bargain collectively, an employer may petition
petition for SEBA to be granted. However, before a labor organization becomes an the Bureau for an election. If there is no existing certified collective bargaining
LLO, showing that majority of the CBU is a member of the LLO is a requirement. Thus, agreement in the unit, the Bureau shall, after hearing, order a certification election.
if an LLO files for SEBA certification, there may be a presumption that there is already
majority support, the proof of majority support under the DO may no longer be If you are the employer and you want to file to petition for certification election,
necessary. (NOT SURE) what is the most important requirement you need to show? What if there is no
request?
Let us say that you are the president of the LLO, instead of filing a SEBA, can you That there is a request to bargain collectively.
file a petition for a certification election?
There is no law stating that one should be filed before the other. Assuming that the LLO If there is no request, then the employer cannot validly file a petition for certification
is qualified to file for either SEBA or Certification Election, the President may file a election.
petition for certification election instead of SEBA.
When may a Petition for Certification Election be filed?
Which is easier, filing a SEBA or certification election? Organized Establishment:
In SEBA, there is only one union asking to be the sole and exclusive bargaining agent. When there is a CBA: The labor organization can file a petition for certification
While in Certification Election, there are two or more unions asking to be the sole and election within the 60-day freedom period (contract-bar rule)
exclusive bargaining agent and, also, there is a requisite for double majority (majority
of all eligible voters in the appropriate bargaining unit and majority of all valid vote When there is no CBA: The labor organization can file a petition for certification
cast). election at any time, subject to the deadlock bar rule.
Do you know any reason that will push the LLO to file for certification election Unorganized Establishment: Any time, subject to the one-election-per-year rule.
instead of SEBA?
If there are 2 or more LLOs and there is a question in the majority status of the What is the freedom period?
incumbent bargaining agent
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Freedom period is the 60-day period immediately preceding the expiration of the Certification election in organized establishments requires that:
representation period of five (5) years in the CBA. During this period, a labor union 1. a petition questioning the majority status of the incumbent bargaining agent is
may: filed before the DOLE within the 60-day freedom period;
1. Disaffiliate from the mother union to form a local or independent union; 2. such petition is verified; and
2. Either party can serve a written notice to terminate or modify the agreement; and 3. the petition is supported by the written consent of at least twenty-five percent
3. A petition for certification election may be filed. (25%) of all employees in the bargaining unit.
When does the CBA expire? Certification election in unorganized establishments shall “automatically” be
With respect to the representation aspect: lasts for five (5) years conducted upon the filing of a petition for certification election by an independent union
or a federation in behalf of the chartered local or the local/chapter itself.
With respect to other provisions (economic and non-economic) the same may last for
a maximum period of three (3) years after the execution of the CBA. it may be
renegotiated not later than 3 years.
Can the parties agree that the CBA will be for 20 years? How many choices for the candidates?
The parties may agree to set the duration of the economic provisions, provided that the There are at least two candidates in certification election. Even if there is no intervening
period does not exceed three years. However, they cannot agree to set the duration of union, The “No Union” vote is always one of the choices in a certification election.
the representation provisions as it is fixed by law. (Atty PJU)
Explain the requirement of double majority:
What is a consent election? To have a valid election, at least a majority of all eligible voters in the unit must have
It is voluntarily agreed upon by the parties with or without the intervention of the DOLE. cast their votes. The labor union receiving the majority of the valid votes cast shall be
certified as the exclusive bargaining agent of all the workers in the unit. [Art. 256]
What is a certification election? 1. In determining the eligible votes cast (First Majority), include spoiled ballots.
Certification is the process, ordered and supervised by the DOLE, of determining, 2. In determining valid votes (Second majority) eliminate spoiled ballots but include
through secret ballot, whether or not a majority of the employees wish to be represented challenged votes
by a labor organization and, in affirmative case, by which particular labor organization.
Note: When the winning choice is a local chapter without a certificate of creation of
Requisites for a valid certification election chartered local,such local chapter shall submit its DOLE issued certificate within 5 days
Important requirements: from the conclusion of election.
1. A statement indicating any of the following: Spoiled ballots are not reckoned to determine majority.
A. That the bargaining unit is unorganized or that there is no registered CBA
covering the employees in the bargaining unit; There are 51 votes with no spoiled ballots. If X union garners 26 votes, will they be
B. If there exists a duly registered CBA, that the petition is filed within the sixty- declared as the winner?
day freedom period of such agreement; NO. For there to be a valid certification election, the two majorities must be complied
C. If another union had been previously recognized voluntarily or certified in a with:
valid certification, consent or run-off election, that the petition is filed outside 1. Majority of bargaining unit must have voted; and
the one-year period from entry of voluntary recognition or conduct of 2. The winning union must have majority of the vote
certification or run-off election and no appeal is pending thereon.
Garnerning 26 votes out of 51 votes does not present a majority of the votes cast, hence,
2. In an organized establishment, the signature of at least twenty-five (25%) percent X union cannot be declared the winner.
of all employees in the appropriate bargaining unit shall be attached to the petition
at the time of its filing (Section 4, Rule VIII, of the Department Order No. 40-03). If X union is declared as certified bargaining representative, does it follow that he
has the majority?
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A.Y. 2018 - 2019
The union which obtained a majority of the valid votes cast by the eligible voters shall It is a contractual proceeding where parties to a dispute select a judge of their own choice
be certified as the sole and exclusive bargaining agent of all the workers in the and by consent submit their controversy to him for determination.
appropriate unit. [par (f) Section 8, Rule VI, Book V of the Omnibus rules of the Labor
Code] What issues may be submitted to the grievance machinery?
1. Disputes arising from the interpretation or implementation of the CBA
When do we have a run-off election? Who will be the candidates? How about the 2. Disputes arising from the interpretation or enforcement of company personnel
no union choice, will it still be included? policies.
"Run-Off" refers to an election between the labor unions receiving the two (2) higher
number of voters when a certification election which provides for three (3) or more If there are no violations to the CBA, will there be no issues or subject matters that
choices results in no choice receiving a majority of the valid votes cast, where the total may be submitted to the grievance machinery?
number of votes for all contending unions is at least fifty percent (50%) of the number No. Grievance machinery encompasses interpretation of the CBA and/or company
of votes cast. personnel policies
Requirements What is a grievance?

1. A valid election took place because majority of the Collective Bargaining Unit Grievance refers to any question by either the ER or the Union regarding the
members voted interpretation or application of the CBA, or company personnel policies, or any claim
2. majority of the bargaining unit voted (first majority of the double majority rule) by either party that the other party is violating any provision of the CBA or company
3. three or more choices (note: “no union” is a choice) personnel policies
4. not one of the choices receives a majority of the valid votes cast
5. total number of votes for all contending unions is at least 50% of the total number What are the two matters cognizable by the grievance machinery?
of votes cast [this means that at least 50% of the bargaining unit wants to have a 1. Interpretation/ implementation of the CBA
union 2. Interpretation/ enforcement/ implementation of company personnel policies
6. the run-off election shall be conducted between the labor unions receiving the two
highest number of votes Why do we call it grievance machinery?
Because it refers to a system and a set of procedures to be followed whenever there is a
If the “No Union” option wins the election, there is no run-off election. conflict or issue or any possible arising conflict or issue between the ER and the Union.
The Unions receiving the highest and second highest number of votes case participates Note: A grievance machinery must involve the procedures to be followed, the guidelines
in the run-off election. and the possible sanctions, and most importantly the persons involved.
What is a grievance machinery? In the absence of an agreement between the parties, what should be the procedure
Is a mechanism for the adjustment of controversies or disputes arising from the that must be undertaken?
interpretation or implementation of the CBA and the interpretation or enforcement of In the absence of a specific provision in the collective bargaining agreement or existing
company personnel policies company practice prescribing for the procedures in handling grievance, the following
shall apply:
Can the parties validly execute a CBA without a grievance machinery? 1. An employee shall present this grievance or complaint orally or in writing to the
In the absence of applicable provision in the CBA, a grievance committee shall be shop steward. Upon receipt thereof, the shop steward shall verify the facts and
created within 10 days from signing of the CBA. The committee shall be composed of determine whether or not the grievance is valid.
at least 2 representatives each from the members of the bargaining unit and the employer, 2. If the grievance is valid, the shop steward shall immediately bring the complaint
unless otherwise agreed by the parties. The representatives from among the members of to the employee's immediate supervisor. The shop steward, the employee and his
the bargaining unit shall be designated by the union. immediate supervisor shall exert efforts to settle the grievance at their level.
3. If no settlement is reached, the grievance shall be referred to the grievance
What is voluntary conciliation? committee which shall have ten (10) days to decide the case.
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A.Y. 2018 - 2019
4. Where grievance remains unresolved, either party may serve notice upon the other Yes. Petition for Review (Rule 43) with Court of Appeals or Petition for Certiorari (Rule
of its decision to submit the issue to voluntary arbitration (DO 40-03, Rule X, Sec. 65) with the Supreme Court
2)
The Labor Code and its Implementing Rules reflect the important public policy of
Who is a voluntary arbitrator? encouraging recourse to voluntary arbitration and of shortening the arbitration process
A person named and designated in advance by the parties to the CBA or a person by rendering the arbitral award nonappealable to the NLRC. The result is that a voluntary
selected through a procedure as agreed upon by the parties, preferably from the listing arbitral award may be modified and set aside only upon the grounds on which a decision
of qualified voluntary arbitrators accredited by the board. A person who acts as a judge of the NLRC itself may be modified or set aside by the Supreme Court. (p. 558, Azucena
for the determination of the controversy submitted before him. Vol. II, 2016)
Supreme Court may take cognizance of petitions questioning decisions of certain

administrative agencies where want of jurisdiction, grave abuse of discretion, violation
of due process, denial of substantial justice, or erroneous interpretation of the lawyer
Where do we find the voluntary arbitrator or panel of voluntary arbitrator? brought to its attention. (p. 558, Azucena Vol. II, 2016)
A voluntary arbitrator is chosen by the parties themselves. Their choice is not limited to
the arbitrator accredited by the NCMB, although Art. 272 says they should preferably In the case of Luzon Development Bank v Association of Luzon Development Bank
choose the accredited ones. Employees, the SC held that the decision or award of the VA should likewise be
appealable to the CA, in line with the procedure outlined in Revised Administrative
What is the jurisdiction of a voluntary arbitrator? Circular No.1-95 (now embodied in Rule 43 of the 1997 Rules of Civil Procedure), just
Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. — The like those of the quasi-judicial agencies, boards and commissions enumerated therein,
Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive and consistent with the original purpose to provide a uniform procedure for the appellate
jurisdiction to hear and decide all unresolved grievances arising from the interpretation review of adjudication of all quasi-judicial entities. (p. 561, Azucena Vol. II, 2016). The
or implementation of the Collective Bargaining Agreement and those arising from the period of appeal is 10 days.
interpretation or enforcement of company personnel policies referred to in the
immediately preceding article. Accordingly, violations of a Collective Bargaining Where will you file the petition?
Agreement, except those which are gross in character, shall no longer be treated as unfair Petition for Review (Rule 43) with Court of Appeals
labor practice and shall be resolved as grievances under the Collective Bargaining Petition for Certiorari (Rule 65) with the Supreme Court
Agreement. For purposes of this article, gross violations of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the economic Can you file a motion for reconsideration?
provisions of such agreement. No, Except if there is a petition for a writ of certiorari.
The Commission, its Regional Offices and the Regional Directors of the Department of Section 7, Rule XIX of D.O. No.40, series of 2003, states that the decision, order,
Labor and Employment shall not entertain disputes, grievances or matters under the resolution or award of the VA or panel of VA shall not be subject of a motion for
exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary reconsideration. However, this prohibition cannot stand in a petition for a writ of
Arbitrators and shall immediately dispose and refer the same to the Grievance certiorari because such petition inherently requires having filed a motion for
Machinery or Voluntary Arbitration provided in the Collective Bargaining Agreement. reconsideration. ( p.559, Azucena Vol. II, 2016 )
Jurisdiction over Other Labor Disputes. — The Voluntary Arbitrator or panel of What is a zipper clause?
Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other A device to forestall negotiation proposals after the CBA has been signed. It is a
disputes including ULP and Bargaining Deadlocks. (Presidential Decree No. 442 as stipulation in a CBA indicating that issues that could have been negotiated upon but not
Amended) contained in the CBA cannot be raised for negotiation when the CBA is already in
effect.( p. 527, Azucena Vol. II, 2016 )
If you are dissatisfied with the award of the VA, do you have a remedy?
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A.Y. 2018 - 2019
What is the purpose of the zipper clause? Is welga ng bayan, a legal strike?
A zipper clause is a stipulation in CBA indicating that issues that could have been No, A welga ng bayan is illegal because it is a POLITICAL STRIKE amd therefore
negotiated upon but not contained in the CBA cannot be raised when the CBA is already there is neither a bargaining deadlock nor any ULP. It is a political rally. Welga ng bayan
in effect. Its main purpose is to forestall further negotiation proposals. is a cause oriented strike
Wylie doctrine Generally, what are the types of strike?

Wiley Doctrine states that, a duty to arbitrate arising from a collective bargaining 1. Legal strike
agreement survives the employer’s ceasing to do business as a separate entity after its 2. Illegal strike
merger with a substantially large corporation, so as to be binding on a larger corporation, 3. Economic Strike
where relevant similarity and continuity of operations across the change in ownership is 4. ULP strike
evidenced by the wholesale transfer of smaller corporation’s employees to the larger 5. Primary strike
corporations plant. 6. Secondary strike
Substitutionary doctrine 7. Sit down strike
Substitutionary Doctrine is when there occurs a shift in the employees’ union 8. Wildcat strike
allegiance after the execution of a collective bargaining contract with the employer, the 9. Sympathetic strike
employees can change their agent but the collective bargaining contract which is still 10. Slowdown strike
subsisting continues to bind the employees up to its expiration period. 11. Quickie strike
12. Cause oriented strikes
STRIKES AND LOCKOUTS 13. Good faith strike
14. General strike
Strike v. picket 15. Loca strike
STRIKE PICKET 16. Recognitional strike
Stoppage of work; Publicizing the labor dispute and its
Includes: Slowdowns, Mass leaves, incident to inform the public of what is Factors that affect the legality or illegality of strike
sitdowns, attempts to damage, destroy, or happening in the company struck 1. Statutory prohibition
sabotage plant equipment and facilities against 2. Procedural requirements of law
and similar activites and 3. Purpose must be ULP and economic
Overtime boycott. 4. Lawful means and methods
Right to self-organization Freedom of expression 5. Injunction
Can only be done when there is a labor Labor dispute not necessary 6. Agreement of the parties
dispute
Statutory prohibition as affecting the legality of strike -Is there any specific law
In a company with 100 employes, two employees stop working. Do you consider prohibiting government employees in participating in strikes?
them to be on strike? Employees in the public service may not engage in strikes. While the Constitution
No. Although concerted activity means one undertaken by two or more employees or recognizes the right of government employees to organize, they are prohibited from
by one on behalf of others, there is no exact number of employees to determine whether staging strikes, demonstrations, mass leaves, walk outs, and other forms of action which
or not they are on strike; as long as there are sufficient number of employees which will will result in temporary stoppage or disruption of public services.
cause work stoppage, there is a strike.
Basis: Civil Service Circular/Memorandum in relation to the Constitution
How do you define strike?
Any temporary stoppage of work by the concerted action of the employees as a result of Grounds and purposes
an industrial labor dispute. ART 212(o), Labor Code. Purpose Test - the strike must be due to either a bargaining deadlock and/or unfair labor
practice
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A.Y. 2018 - 2019
strike shall not constitute sufficient ground for termination of his employment,
Agreement of the Parties even if a replacement had been hired by the employer during such lawful strike.
A CBA contains a no strike/no lockout clause. It provides that disputes between parties, 3. No person shall obstruct, impede, or interfere with, by force, violence, coercion,
including alleged U.L.P. act by the employer should be resolved through voluntary threats or intimidation, any peaceful picketing by employees during any labor
arbitration instead of through a strike. controversy or in the exercise of the right to self-organization or collective
bargaining, or shall aid or abet such obstruction or interference.
What are lawful means? 4. No employer shall use or employ any strike-breaker, nor shall any person be
A strike has to be pursued within the bounds of law. A strike does not suspend the employed as a strike-breaker.
binding force of law; it does not put the strikers above the law or above their fellow men. 5. No public official or employee, including officers and personnel of the New
The right to self-organization and the right to strike, as offspring of the industrial Armed Forces of the Philippines or the Integrated National Police, or armed
civilization, are not envisioned to create an uncivilized situation. person, shall bring in, introduce or escort in any manner, any individual who seeks
to replace strikers in entering or leaving the premises of a strike area, or work in
A strike may be legal at its inception but eventually be declared illegal if the strike is place of the strikers. The police force shall keep out of the picket lines unless
accompanied by violence which is widespread, pervasive and adopted as a matter of actual violence or other criminal acts occur therein: Provided, That nothing herein
policy and note merely violence which is sporadic which normally occur in a strike area. shall be interpreted to prevent any public officer from taking any measure
necessary to maintain peace and order, protect life and property, and/or enforce
What is a good faith strike? the law and legal order. (As amended by Executive Order No. 111, December 24,
A strike may be considered legal where the union believed that the company committed 1986)
ULP and the circumstances warranted such belief in good faith, although subsequently 6. No person engaged in picketing shall commit any act of violence, coercion or
such allegations of ULP are found out as not true. intimidation or obstruct the free ingress to or egress from the employer’s premises
for lawful purposes, or obstruct public thoroughfares. (As amended by Batas
Consequence or effect of a good faith strike Pambansa Bilang 227, June 1, 1982)
Good Faith strike may justify a strike and not be held illegal because it was induced in
the honest belief that management had committed unfair labor practice. However, the Consequence if you committed violence, force or intimidation
doctrine does not tolerate groundless strike. It does not excuse the union’s non- It could be a valid cause for the dismissal of the employee. However, the penalty
presentation of substantial evidence to support its allegation of U.L.P by the employer. imposable on the erring strikers does not always have to be dismissal; it may be scaled
down to suspension. (Azucena, 2016, pg 694 and 870)
Specific acts prohibited by the Labor Code during strikes
The law limits certain activities such as those enumerated in Article 264. Is there an instance where an employee may be dismissed for participating in a
1. No labor organization or employer shall declare a strike or lockout without first strike?
having bargained collectively in accordance with Title VII of this Book or without Yes. Who may lose employment by reason of strike:
first having filed the notice required in the preceding Article or without the 1. Any union officer who knowingly participates in an illegal strike;
necessary strike or lockout vote first having been obtained and reported to the 2. Any worker or union officer who knowingly participates in the commission of
Ministry. illegal acts during a strike may be declared to have lost his employment, even if a
2. No strike or lockout shall be declared after assumption of jurisdiction by the replacement had been hired by the employer during such lawful strike
President or the Minister or after certification or submission of the dispute to
compulsory or voluntary arbitration or during the pendency of cases involving the Distinction of the liability of the union officer and union member
same grounds for the strike or lockout.Any worker whose employment has been 1. Union Officers
terminated as a consequence of any unlawful lockout shall be entitled to The mere declaration of illegality of the strike will result in the termination of all union
reinstatement with full backwages. Any union officer who knowingly participates officers who KNOWINGLY PARTICIPATED in the illegal strike. Unlike ordinary
in an illegal strike and any worker or union officer who knowingly participates in members, it is not required, for purposes of termination, that the officers should commit
the commission of illegal acts during a strike may be declared to have lost his an illegal act during the strike.
employment status: Provided, That mere participation of a worker in a lawful
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A.Y. 2018 - 2019
However, absent any showing that the employees are union officers, they cannot be not, they shall be considered a regular employee with respect to the activity they are
dismissed based solely on the illegality of the strike. employed and will continue rendering service while such activity exists.
2. Ordinary Union Members Notwithstanding the foregoing distinctions every employee shall be entitled to the rights
The mere finding or declaration of illegality of a strike will not result in termination of and privileges that are granted to regular employees during the period of their actual
ordinary union members. For ordinary union member to suffer termination, it must be employment
shown by clear evidence that he has committed illegal acts during the strike.
How about casual employees?
Reason for the distinction Notwithstanding the foregoing distinctions every employee shall be entitled to the rights
The union officers have the duty to guide their members to respect the law. If instead of and privileges that are granted to regular employees during the period of their actual
doing so, the officers urged the members to violate the law and defy the duly constituted employment.
authorities, their dismissal from the service is a just penalty or sanction for their unlawful
act. Their responsibility as main players in an illegal strike is greater than that of the
ordinary union members and , therefore, limiting the penalty of dismissal only to the Can you terminate the service of a regular employee without any authorized or just
former for their participation in an illegal strike is in order. cause? How about casual employees?
No. Regular and casual employees, pursuant to their right to security of tenure, may only
POST - EMPLOYMENT be dismissed for just causes provided under Art. 297 and authorized causes under Arts.
298 and 299.
What is security of tenure?
Security of Tenure is the constitutional right granted the employee, that the employer Just Causes (Art. 297)
shall not terminate the services of an employee except for just cause or when authorized 1. Serious Misconduct;
by law 2. Willful disobedience or insubordination;
3. Gross and habitual neglect of duties;
Do all types of employees enjoy security of tenure? - YES. 4. Fraud or willful breach or contract;
Regular employment is when an employee performs activities that are usually 5. Commission of a crime or offenses;
necessary or desirable in the usual business or trade of the employer. They enjoy the 6. Analogous cases.
benefit of security of tenure provided by the Philippine Constitution and cannot be
terminated for causes other than those provided by law and only after due process is Authorized Causes
given to them. 1. Automation/ Robotics- installation of labor-saving device;
2. Redundancy- when the service of an employee are in excess of what is reasonably
Project employment is when an employee is hired for a specific project or undertaking demanded by the actual requirement of the enterprise.
and the employment duration is specified by the scope of work and/or length of the 3. Retrenchment/ Downsizing- reduction of personnel usually due to poor financial
project. returns to cut down on costs of operations in terms of salaries and wages to prevent
bankruptcy of the company.
Seasonal employment is when the work to be performed is only for a certain time or 4. Closure or Cessation of operation of the establishment or undertaking- the
season of the year and the employment is only for that duration. Both are entitled to complete or partial cessation of the operations and/or shutdown of the
security of tenure at least for the duration of the project or the season. establishment to either starve off the financial ruin or promote the business interest
of the ER.
Casual employment is where an employee is engaged to perform a job, work or service 5. Disease- EE suffering from disease and continued employment is prohibited by
which is merely incidental to the business of the employer, and the definite period of law or prejudicial to his/her health as well as his/her co-employees.
employment is made known to the employee at the time of engagement. If the employee
has rendered at least 1 year of service, whether the casual employment is continuous or What happens if you terminate the services of a casual employee without any
authorized or just cause?
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A.Y. 2018 - 2019
Article 294 of the Labor Code applies to all kinds of employees. It provides that the 1. Serious misconduct or willful disobedience by the employee of the lawful orders
employee can ask for reinstatement, for full backwages inclusive of allowances and of his employer or representative in connection with his work;
other benefits from the time his compensation was withheld up to the time of his actual 2. Gross and habitual neglect by the employee of his duties;
reinstatement and for the recovery of moral and exemplary damages. 3. Fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative;
Are there any reliefs available to a casual employee illegally dismissed? 4. Commission of a crime or offense by the employee against the person of his
The employee shall file for illegal dismissal. He shall be entitled to reinstatement with employer or any immediate member of his family or his duly authorized
full backwages. representatives; and
5. Other causes analogous to the foregoing.
How much backwages? - Unexpired portion of his contract
ART. 298:. Closure of establishment and reduction of personnel. - The employer may
also terminate the employment of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the closing or cessation of
What if there is no period for the casual employees? operation of the establishment or undertaking unless the closing is for the purpose of
The status of regular employment attaches to the casual employee who has rendered at circumventing the provisions of this Title, by serving a written notice on the workers
least one year of service, whether such service is continuous or broken, with respect to and the Ministry of Labor and Employment at least one (1) month before the intended
the activity in which he is employed and his employment shall continue while such date thereof. In case of termination due to the installation of labor-saving devices or
activity exists. redundancy, the worker affected thereby shall be entitled to a separation pay equivalent
to at least his one (1) month pay or to at least one (1) month pay for every year of service,
Are all casual employees under a fixed period of employment? whichever is higher. In case of retrenchment to prevent losses and in cases of closures
Yes. There is a casual employment where an employee is engaged to perform a job, or cessation of operations of establishment or undertaking not due to serious business
work or service which is merely incidental to the business of the employer and such job, losses or financial reverses, the separation pay shall be equivalent to one (1) month pay
work, or service is for a definite period made known to the employee at the time of the or at least one-half (1/2) month pay for every year of service, whichever is higher. A
engagement. fraction of at least six (6) months shall be considered one (1) whole year.
If you want to dismiss a casual employee, is he entitled to due process? What are the requisites for termination due to a disease?
Yes. Security of tenure extends to regular employment as well as non-regular ART. 299: Disease as ground for termination. - An employer may terminate the services
employment. of an employee who has been found to be suffering from any disease and whose
continued employment is prohibited by law or is prejudicial to his health as well as to
Does he become regular if he was dismissed illegally? the health of his co-employees: Provided, That he is paid separation pay equivalent to at
It depends. Under Art. 295 (2): An employment shall be deemed to be casual if it is not least one (1) month salary or to one-half (1/2) month salary for every year of service,
covered by the preceding paragraph: Provided, That any employee who has rendered at whichever is greater, a fraction of at least six (6) months being considered as one (1)
least one year of service, whether such service is continuous or broken, shall be whole year.
considered a regular employee with respect to the activity in which he is employed and
his employment shall continue while such activity exists. Is there a disease not prohibited by law?
None. The only requirements for disease prohibited by law are :
Hence, if the employee fits the criteria above of one year service when he was illegally 1. The employee is suffering from a disease
dismissed, he is considered to be a regular employee already. 2. The continued employment of the employee is prohibited by law or prejudicial to
his s/her health as well as to the health of his co-employees
What are the valid causes of termination by the employer? 3. In DO NO. 147-15, Sec 5.4(e), there is a certification by a competent public health
Art. 297: Termination by employer. - An employer may terminate an employment for authority that the disease is of such nature or at such stage that it cannot be cured
any of the following causes: within a period of 6 months even with proper medical treatment.

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Is there any particular period required by law? 8. Commission of illegal acts in a strike
Yes. In DO NO. 147-15, Sec 5.4(e), there is a certification by a competent public health 9. Non -feasible reinstatement
authority that the disease is of such nature or at such stage that it cannot be cured within 10. Resignation
a period of 6 months even with proper medical treatment. 11. Violation a contractual employment (Azucena, 2016, pg. 870)
What will happen if the employer does not dismiss the employee with the disease? Salary for employee with disease
The employee cannot compel the employer to dismiss him as it is a management The employee who was dismissed due to his/her disease is entitled to a separation pay
prerogative. There is no compulsory obligation based on law. The law only states “may” equivalent to at least 1 month salary, or to ½ month salary for every year of service,
dismiss, which means that it is discretionary. The option left is for the employee to resign whichever is greater. A fraction of at least 6 months shall be considered 1 whole year
himself. However, the disadvantage is resigning is that the will not receive separation (memoryaid, 2018, pg 178)
pay, unless there is a provision in the CBA, or the employer still gives the separation
pay for human considerations.
Causes for termination Is the disease the one that is prohibited?

There are 2 general classes of valid causes for termination of employment. No. It is the continued employment of the employee who has been found to be suffering
1. Just Causes (Art 297) from any disease and whose continued employment is prohibited by law or is prejudicial
2. Authorized Causes (Art 298-299) to his health as well as to the health of his co-employees (Article 299).
JUST CAUSES (FC-SWAG) Distinctions between just and authorized causes

1. Fraud or willful breach of trust In Authorized Causes, there is no fault n the part of the employee, unlike in Just Causes.
2. Commission of a crime or offense They also differ in the Nominal Damages paid if there is substantial due process, but the
3. Serious Misconduct procedural due process is not followed; P30,000 in case of Just Causes, while P50,000
4. Willful disobedience or insubordination in Authorized Causes.
5. Gross and habitual neglect of duties
6. Analogous cases What is retirement?
A withdrawal from office, public station, business, occupation, or public duty. It is the
AUTHORIZED CAUSES (DARRC) result of a bilateral act of the parties, a voluntary agreement between the employer and
1. Installation of labor-saving device or Automation the employee whereby the latter, after reaching a certain age, agrees and/or consents to
2. Redundancy sever his employment with the former.
3. Retrenchment
4. Closure or cessation of operation of the establishment or undertaking (Art. 298) The retirement pay law under this article applies to private sector employees who have
5. Disease (Art. 299) served the employer establishment for at least five years and reached age sixty (for
optional retirement) or sixty - five (for compulsory retirement). It covers either full -
Article 298 and 299 are not a complete enumeration of authorized causes of employment time or part - time employees, regular or non - regular. But it does not cover government
termination. Among them are: employees and employees of retail, service and agricultural establishments or operations
1. Total and permanent disability of an employee that regularly employ not more than 10 employees.
2. Valid application of a union security clause
3. Expiration of period in term employment Retirement v. Resignation
4. Completion of a project in project employment In case of Resignation, the employee who resigns is not entitled to benefits under the
5. Failure in probation Labor Code, unless the CBA so provides for the said benefits. In Retirement, on the
6. Sale amounting to closure of the business other hand, the retired employee is entitled to benefits under the Labor Code such as
7. Defiance of return-to-word order retirement pay.
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A.Y. 2018 - 2019
Art 258 of the Labor Code provides “Unfair labor practices violate the constitutional
You already reach the age of 65, can you retire? right of workers and employees to self-organization, are inimical to the legitimate
Yes, you must retire because 65 is the age of compulsory retirement. interests of both labor and management, including their right to bargain collectively
and otherwise deal with each other in an atmosphere of freedom and mutual respect,
How about 60 years old?
Optional Retirement disrupt industrial peace and hinder the promotion of healthy and stable labor
Primarily determined by the CBA or other employment contract, or employer’s management relations. It is also a violation of the civil rights of both labor and
retirement plan. management, and a criminal offense against the State which shall br subject to
prosecution and management.”
Let us say you were employed at 63 years old and you are not 65 years old. Can
you retire? The elements of Unfair Labor Practice are:
No. The minimum five years’ service applies to both optional and compulsory
1. Employer-employee relationship between the offender and the offended
retirement. Art. 301 mentions 60 and 65 years as the optional and compulsory retirement
ages of employees. Then, after a comma, it adds, “who has served at least five (5) years 2. Act done is expressly defined in the code as an act of unfair labor practice
in the establishment.” This construction suggests that “who has served” refers to both
ages of 60 and 65. Regular seasonal employees
Seasonal Employees are considered Regular Employees:
How much are you entitled to as retirement pay? a. When there is reasonable connection between the particular activity performed by
The retirement pay is equal to half - month’s pay per year of service. But “half - month’s the employee in relation to the usual trade or business of the employer; and
pay” is expanded because it means not just the salary for fifteen days but also one -
b. When seasonal workers are repeatedly engaged to perform the same tasks for more
twelfth of the 13th - month pay and the case value of five - day service incentive leave,
totaling 225 days. This is the minimum. The retirement pay package can be improved than 1 season.
upon by voluntary company policy, or particular agreement with the employee, or
through a collective bargaining agreement. Doctrine of apparent authority
Also known as the Holding Out theory / Doctrine of Ostensible Agency / Agency by
For covered workers who are paid by results and do not have a fixed monthly salary estoppel. This doctrine imposes liability, not as the result of the reality of a contractual
rate, the basis for the determination of the salary for fifteen days shall be their average
relationship, but rather because of the actions of a principal or an employer in somehow
daily salary.
misleading the public into believing that the relationship or the authority exists. Under
the rule, the principal is bound by the acts of his agent with the apparent authority which
SAMPLEX QUESTIONS
he knowingly permits the agent to assume, or which he holds to the agent out to the
public as possessing. The question in every case is whether the principal has by his
OBJECTIVE
voluntary act placed the agent with business usages and the nature of the particular
business, is justified in presuming that such agent has authority to perform the particular
DEFINE THE FOLLOWING:
act in question.
Collective Bargaining Unit
It is a group of employees of a given employer, comprised of all or less than all the entire
Contract bar rule
body of employees, which, consistent with equity to the employer, indicate to be the
Art. 238 of the Labor Code refers to the contract bar rule which means that while a valid
best suited to serve the reciprocal rights and duties of the parties under the collective
and registered CBA is subsisting, the Bureau is not allowed to hold an election
bargaining provision of the law.
contesting the majority status of the incumbent Union.
Unfair Labor Practice
Duty to bargain collectively (Not included in MT coverage)
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A.Y. 2018 - 2019
Art. 263. Meaning of Duty To Bargain Collectively.-- The duty to bargain collectively Modified Union Shop
means the performance of a mutual obligation to meet and convenec promptly and Modified Union Shop Agreement is a union security which provides that the employees
expeditiously in good faith for the purpose of negotiating an agreement with respect to who are not union members at the time of signing the CBA need not join the union, but
wages, hours of work and all other terms and conditions of employment including all the workers hired thereafter must join.
proposals for adjusting any grievances of questions arising under such agreement and
executing a contract incorporating such agreements if requested by either party but such Trade Union Center
duty does not compel any party to agree to a proposal or to make any concession. Group of Registered national unions or federations organized for the mutual aid and
protection of its members and assisting such members in collective bargaining or for
Constructive Dismissal participating in the formulation of social and employment policies, standards and
Constructive dismissal exists when there is cessation of work because continued programs duly registered with the DOLE.
employment is rendered impossible, unreasonable or unlikely. Constructive dismissal is
a dismissal in disguise or an act amounting to dismissal but made to appear as if it were Exclusive original jurisdiction of NLRC
not. (Diamond Taxi v Llamas, Jr.) 1. Certified Cases under Art. 278 and 279
2. Injunction Cases under Arts. 225 and 278
Featherbedding 3. Contempt Cases
The act of causing or attempting to cause an employer to pay or deliver any money or 4. Verified Petition
other things of value for services which were not performed or not to be performed 5. Petition to annul or modify the order or resolution of the Labor Arbiter
(Ungos, 2015)
DISCUSS BRIEFLY THE FOLLOWING:
Yellow Dog Contract
An agreement which requires as a condition of employment, that a person or employee: Factors to be considered in determining the appropriateness of a CBU (Not
a. Declares that he is not a member of a labor organization; included in Midterms Coverage)
b. Refrains from joining a labor organization; 1. Community of Interest Doctrine or Substantial Mutual Interest Rule
c. Withdraws his membership in a labor organization; or Characterized by the similarity of employment status, same duties and responsibilities
d. Quits his employment upon joining a labor organization and substantially similar compensation and working conditions
Labor Dispute 2. Globe Doctrine

Article 219 (l): This is based on the expressed will or desire of the employees.
“Labor dispute” includes any controversy or matter concerning terms and conditions of
employment or the association or representation of persons in negotiating, fixing, 3. Employment Status
maintaining, changing or arranging the terms and conditions of employment, regardless Status such as temporary, seasonal and probationary employee
of whether the disputants stand in the proximate relation of employer and employee.
4. Prior Collective Bargaining History
Affiliate
An affiliate is an independent union affiliated with a federation or national union; or a When bargaining even to the point of impasse is not equivalent to bargaining in
chartered local which was subsequently granted an independent registration but did not bad faith
disaffiliate from its mother federation or national union The adamant insistence on a bargaining position to the point where the negotiations
reach an impasse does not establish bad faith.
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A.Y. 2018 - 2019
monetary claims and benefits was qualified by the proviso that the complaint shall not
The so-called “extraordinary remedies” under the 2011 NLRC Rules of Procedure include a claim for reinstatement, or that the aggregate money claims shall not exceed
that may be availed of by a party aggrieved by an order or resolution of the Labor PhP 5,000. RA 7730 did away with the PhP 5,000 limitation, allowing the DOLE
Arbiter, including those issued during execution proceedings Secretary to exercise its visitorial and enforcement power for claims beyond PhP 5,000.
A party aggrieved by any order or resolution of the Labor Arbiter including those issued The only qualification to this expanded power of the DOLE was that, there still be an
during execution proceedings may file a verified petition to annul or modify such order existing employer-employee relationship.
or resolution. The petition may be accompanied by an application for the issuance of a
temporary restraining order and/or writ of preliminary or permanent injunction to enjoin If there is no employer-employee relationship, whether it has been terminated or it has
the Labor Arbiter, or any person acting under his/her authority, to desist from enforcing not existed from the start, the Department of Labor and Employment (DOLE) has no
said resolution or order. (Section 1, Rule XII, 2011 NLRC Rules of Procedure) jurisdiction. An employer-employee relationship must exist for the exercise of the
visitorial and enforcement power of the Department of Labor and Employment (DOLE).
How to criminally prosecute an employer for a ULP-related offense The effectivity and duration of a collective bargaining agreement
The officers and agents of corporations, associations or partnerships who have actually EFFECTIVITY:
participated in, authorized or ratified unfair labor practices shall be liable. 3. If the CBA is the very first of the bargaining unit, the parties have to decide the
CBA’s effectivity date
To prosecute ULP as criminal offense is not possible until after finality of judgment in 4. Those made within 6 mo. after the date of expiry of the CBA are subject to
the labor case, finding that respondent indeed committed ULP. But such judgment will automatic retroaction to the date immediately following such date of expiry
not serve as evidence of ULP in the criminal case; the criminal charge must be proved 5. Those not made within 6 mo., the parties may agree on the date of retroaction
independently from the labor case and proof beyond reasonable doubt is needed to
convict in the criminal case of ULP. AUTOMATIC RENEWAL CLAUSE:
The CBA shall remain effective and enforced even after the expiration of the period
The legal remedies of an aggrieved party in case of CBA violations fixed by the parties, as long as no new agreement is reached by them. The automatic
Under Article 261 of the Labor Code, as amended by R.A. No. 6715, violations of a renewal pertains only to the economic provisions of CBA and does not include
collective bargaining agreement, except those which are gross in character, shall no representational aspect of CBA.
longer be treated as unfair labor practice and shall be resolved as grievances under the
collective bargaining agreement. Gross violations of a collective bargaining agreement DURATION: With respect to representation aspect, the CBA lasts for 5 years.
shall mean flagrant and/or malicious refusal to comply with the economic provisions of However, not later than 3 years after the execution of the CBA, the economic provisions
such agreement shall be renegotiated.
The aggrieved parties may file a complaint for ULP based on gross violation of CBA— The doctrine of “non-commingling” of membership
as long as they are able to show prima facie the concurrence of two things, namely: [1] Non-commingling of membership, as provided for by Article 256, is the inclusion as
gross violation of the CBA; and [2] the violation pertains to the economic provisions of union members of employees outside the bargaining unit.
the CBA.
However, it bears noting that in case there is commingling or mixed membership of
How the DOLE Secretary’s visitorial and enforcement powers have been supervisors and rank-and-file employees in one union, the new rule enunciated in Article
strengthened by RA 7730 256 of the Labor Code, unlike in the old law, is that it cannot be invoked as a ground for
Under Art. 129 of the Labor Code, the power of the DOLE and its duly authorized the cancellation of the registration of the union. The employees so improperly included
hearing officers to hear and decide any matter involving the recovery of wages and other
LABOR RELATIONS
A.Y. 2018 - 2019
are automatically deemed removed from the list of members of said union. In other his/her answer or reply within the said period may be construed as a waiver on
words, their removal from the said list is by operation of law. his/her part to file the same d) Subject to the provisions of Article 218
of the Labor Code, once the appeal is perfected in accordance with these Rules,
Reason: after the certificate of registration is issued to a union, its legal personality the Commission shall limit itself to reviewing and deciding only the specific issues
cannot be subject to a collateral attack. It may be questioned only via a petition for that were elevated on appeal. (4a)
cancellation, under the grounds provided for in Art. 246 (Tagaytay Highlands
International Golf Club vs. Tagaytay Highlands Employees Union, GR. No. 142000, How to differentiate a local union from its mother union / Federation
Jan. 22, 2003) National Union/Federation means any labor organization with at least ten (10) locals or
chapters each of which must be a duly recognized collective bargaining agent.
The doctrine of the “employer being a mere bystander”
Indeed, the demand of the new law and policy for an employer to take a strict, hands- A duly registered federation or national union may directly create a local chapter by
off stance in certification elections is based on the rationale that the employees’ issuing a charter certificate indicating the establishment of the local chapter. The chapter
bargaining representative should be chosen free from any extraneous influence of the shall acquire legal personality only for purposes of filing a petition for certification
management; that to be effective, the bargaining representative must owe its loyalty to election from the date it was issued a charter certificate.
the employees alone and no other (Holy child catholic school v. Sto. Tomas, G.R. No.
179146, July 23, 2013) The chapter shall be entitled to all other rights and privileges of a legitimate labor
organization only upon the submission of the required documents in addition to its
How to perfect an appeal from the LA’s decision, award or order charter certificate. Creation of local chapter doesn't need subscription of at least 20
a. The appeal shall be: percent of the members.
4. Filed within the reglementary period provided in Section 1 of this Rule;
5. Verified by the appellant himself/herself in accordance with Section 4, Rule The rights and obligations of membership in a labor organization
7of the Rules of Court, as amended; ARTICLE 250: RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR
6. in the form of a memorandum of appeal which shall state the grounds relied ORGANIZATION
upon and the arguments in support thereof, the relief prayed for, and with a 1. Deliberative and Decision-Making Right — the right to participate in
statement of the date the appellant received the appealed decision, award or deliberations on major policy questions and decide by secret ballot;
order; 2. Right to information — the right to be informed about:
7. in three (3) legibly typewritten or printed copies; and accompanied by: a. The organizations’ constitution and by-laws;
b. The collective bargaining agreement, and labor laws
iv. proof of payment of the required appeal fee and legal research fee; 3. Rights over Money Matters — the rights of the members:
v. posting of a cash or surety bond as provided in Section 6 of this Rule; and a. Against imposition of excessive fees;
vi. proof of service upon the other parties. b. Against unauthorized collection of contributions or unauthorized
disbursements;
b. A mere notice of appeal without complying with the other requisites aforestated c. To require adequate records of income and expenses;
shall not stop the running of the period for perfecting an appeal. d. To access financial records;
c. The appellee may file with the Regional Arbitration Branch or Regional Office e. To vote on officers’ compensation;
where the appeal was filed, his/her answer or reply to appellant's memorandum of f. To vote on special assessment; and
appeal, not later than ten (10) calendar days from receipt thereof. Failure on the g. To be deducted a special assessment only with the member’s written
part of the appellee who was properly furnished with a copy of the appeal to file authorization.
LABOR RELATIONS
A.Y. 2018 - 2019
Perfection of appeal b. If such claim is denied, the denial may be appealed to the NLRC;
15 days c. Independent civil action to recover ownership of the property illegally seized; and
d. Motion for Exclusion or Release of the property wrongfully levied on execution.
Disaffiliation from Mother Union or Federation
According to Sec. 49 of the 1992 Rules of Procedure on Mediation-Arbitration, a labor Pending appeal, decision of LA shall be stayed
union may disaffiliate from the mother union to form an independent union only during The decision of the Labor Arbiter ordering the reinstatement of a dismissed or separated
the 60-day freedom period immediately preceding the expiration of the CBA. employee shall be immediately executory insofar as the reinstatement aspect in
concerned, and the posting of the appeal bond shall not stay such execution. There is no
This rule admits of an exception. Even before the onset of the freedom period, the need for a motion for the issuance of a writ of execution as regards the reinstatement
disaffiliation may still be carried out, but such disaffiliation must be effected by a order which is immediately self-executing. The basis for this is police power in order to
majority of the union members in the bargaining unit. prevent the continuing threat or danger to the survival of the dismissed or separated
employee and his family.
Valid Dismissal of an Employee under a Closed Shop Agreement Minimum membership for LLO application
A Closed Shop Agreement is a form of Union Security Clause where only union As a requirement for application or for the issuance of a certificate of registration, in
members can be hired by a company and they must remain as union members to retain case the applicant is an independent union, a list of names of all its members comprising
employment in the company. at least 20% of all the employees in the bargaining unit must be submitted. The creation
of a local chapter, however, does not need an initial membership of at least 20% of the
According to the case of Alabang Country Club, Inc. v. NLRC, in terminating the bargaining unit.
employment of an employee by enforcing the union security clause, the employer needs
only to determine and prove that: Expulsion by union members
11. the union security clause is applicable; The expulsion of a member should not be based on the whims and caprice of the union
12. the union is requesting for the enforcement of the union security provision in the members. The provisions of the constitution and by-laws as regards the expulsion of
CBA; and union members should be stated in clear and unequivocal terms. More so, the
13. there is sufficient evidence to support the decision of the union to expel the constitution and by-laws should be fair and reasonable. The 3⁄4 vote may be considered
employee from the union. unreasonable and be a subject of abuse by the members who may cause the expulsion of
other members due to personal reasons.
These requisites constitute just cause for terminating an employee based on the union
security provision of the CBA. Resolution by board members
The resolution should not have been passed by the board of directors only. Article 250(d)
Remedies of Third Party whose property has been wrongfully levied to enforce a of the Labor Code provides that in case of any question of major policy affecting the
decision entire membership—such as the undertaking in this case to supply 50% of the food in
As held in the case of Yupangco Cotton Mills vs. CA, the third party is afforded several the university canteen and 30% of the janitorial services in the main building of the
alternative remedies which may be availed cumulatively, and one will not preclude said university in order to raise union funds—the members shall determine by secret ballot,
third party from availing of the other alternative remedies in case he failed in the remedy after due deliberation, unless the nature of the organization or force majeure renders
first availed of. These are: such secret ballot impractical, in which case, the board of directors of the organization
a. Third-party claim with the sheriff if the Labor Arbiter which must be filed not may make the decision in behalf of the general membership.
later than 5 days from the last day of posting or publication of the notice of
execution sale; Election of union officers by union members due to mismanagement
LABOR RELATIONS
A.Y. 2018 - 2019
If the election was held in violation of, or not in accordance with, the constitution and
by-laws of the union. Confidential employees are those who, by reason of their position or nature of their work
are required to assist or act in a fiduciary manner to managerial employees. As they act
It was held in the case of UST Faculty Union vs. Bitonio that the union’s constitution in a confidential capacity, and have access to confidential matters of persons who
and by-laws is the fundamental law which governs the relationship between and among exercise managerial functions, the ineligibility that applies to the latter also applies to
the members of the union. It is where the rights, duties and obligations, powers, them.
functions, and authority of the officers and the members are defined. Moreover, it was The sample is true for non-employees when there is no EE-ER relationship.
stated in the said case that worker’s organizations shall have the right to draw up their
constitution and rules and to elect their representatives in full freedom. Pursuant to a check - off stipulation, the employer who fails to make the requisite
deductions may be held liable for unfair labor practice as well as for the aggregate
Thus, if the election of the new set of officers was done not in accordance with the dues or assessments uncollected from the union members, or agency fees for non -
constitution and by- laws of the union, then the petition shall be denied. However, if the union employees.
election of new set of officers may be effected by the union members, in such way, is DISAGREE. No provision of law makes the employer directly liable for the payment
sanctioned by the constitution and by-laws, then the petition shall prosper. to the labor organization of union dues and assessments that the former fails to deduct
from its employees' salaries and wages pursuant to a check-off stipulation. The
AGREE OR DISAGREE. EXPLAIN. employer's failure to make the requisite deductions may constitute a violation of a
To interfere with, restrain or coerce the employees in the exercise of their right to contractual commitment for which it may incur liability for unfair labor practice. But it
self - organization is considered unfair labor practice. does not by that omission, incur liability to the union for the aggregate of dues or
Under Article 257 of the Labor Code, it shall be unlawful for any person to restrain, assessments uncollected from the union members, or agency fees from non-union
coerce, discriminate against or unduly interfere with employees and workers in their employees. Check-offs in truth impose an extra burden on the employer in the form of
exercise of the right to self-organization. Any act intended to weaken or defeat the right additional administrative and bookkeeping costs. It is a burden assumed by management
is regarded by law as an offense, which is technically called "unfair labor practice. at the instance of the union and for its benefit, in order to facilitate the collection of dues
necessary for the latter's life and sustenance. But the obligation to pay union dues and
Following the rule on segregation, supervisors and rank - and - file employees agency fees obviously devolves not upon the employer, but the individual employee. It
cannot join the same union; neither can their respective unions affiliate with the is a personal obligation not demandable from the employer upon default or refusal of
same federation the employee to consent to a check-off. The only obligation of the employer under a
Under the Labor Code, as amended by RA 9481, supervisory employees shall not be check-off is to effect the deductions and remit the collections to the union. The principle
eligible for membership in the collective bargaining unit of the rank-and-file employees of unjust enrichment necessarily precludes recovery of union dues - or agency fees -
but may join, assist or form separate collective bargaining units and/or legitimate labor from the employer, these being, to repeat, obligations pertaining to the individual worker
organizations of their own. However, under the same provision, the rank and file union in favor of the bargaining union. Where the employer fails or refuses to implement a
and the supervisors’ union operating within the same establishment may join the same check-off agreement, logic and prudence dictate that the union itself undertake the
federation or national union. collection of union dues and assessments from its members (and agency fees from non-
union employees); this, of course, without prejudice to suing the employer for unfair
Managerial employees, confidential employees and temporary employees are not labor practice.
eligible in form, join, or assist labor organizations.
AGREE. Managerial Employees are the alter ego of the employers, thus they are In the absence of a certified exclusive bargaining representative, the employer
supposed to be on the side of the employer, acting as their representative and to see if cannot be legally compelled to bargain collectively with its employees. An exclusive
their interests are well protected.
LABOR RELATIONS
A.Y. 2018 - 2019
bargaining representative always enjoys the majority support of the CBU have remained to be members of RFLU. Is the petition meritorious? Explain. (5
members. points)
Rule VI Section 1 of Department Order No. 40-03 Policy. - It is the policy of the State No. RA 9481 or an Act Strengthening the Workers' Constitutional Rights to Self-
to promote free trade unionism through expeditious procedures governing the choice of Organization made the cancellation of a union’s registration harder.
an exclusive bargaining agent. The determination of such exclusive bargaining agent is
a non-litigious proceeding and, as far as practicable, shall be free from technicalities of The grounds for cancellation of union registration has been reduced from ten to three,
law and procedure, provided only that in every case, the exclusive bargaining agent these are:
enjoys the majority support of all the employees in the bargaining unit. a. Any falsehood about the union’s constitution and by-laws;
b. Any falsehood about the election of officers; and
A Labor Arbiter’s decision cannot be immediately enforced once an appeal is c. Voluntary dissolution
seasonably perfected by a party.
DISAGREE. When the complaint is accompanied with a claim for reinstatement, the The BLR may cancel a union registration based ONLY on the grounds enumerated in
LA’s decision as to the reinstatement is immediately executory even pending appeal. Article 247 as amended.
There is no need for a motion for the issuance of a writ of execution as regards the 1. May the union’s constitution and by - laws provide that a member may be
reinstatement order which is immediately self-executing. expelled from the union only “after due deliberation by, and upon a vote of
three - fourths of its total membership”? Explain.
The basis for this is police power in order to prevent the continuing threat or danger to No. Just an officer is entitled to due process, so does a member. Such member of a labor
the survival of the dismissed or separated employee and his family. union may be expelled only for a valid cause and by following the procedure outlined
in the constitution and by laws.
If a motion to reconsider the Labor Arbiter’s decision is filed by a party, the same
shall be denied for being a prohibited pleading/ motion. In the case of Ferrer v NLRC, the LA and NLRC erred in dismissing the complaint for
DISAGREE. illegal dismissal and unfair labor practice on the ground that both the company and the
It is true that, as provided in Section 5(f), Rule V of the 2011 NLRC Rules of Procedure, union merely complied with the collective bargaining agreement provision sanctioning
a Motion for Reconsideration of any decision or any order of the Labor Arbiter is a the termination of any employee who fails to retain membership in good standing with
prohibited pleading/motion. However, when one such motion for reconsideration is the union.
filed, it shall be treated as an appeal provided that it complies with the requirements for
perfecting an appeal. (St. Martins case; Section 15, Rule v, 2002 NLRC Rules of The union has a specific provision for the permanent or temporary "expulsion" of its
Procedure) erring members in its constitution and by-laws ("saligang batas at alituntunin"). Under
the heading membership and removal ("pag-aanib at pagtitiwalag"), it states: “Sec. 4.
HYPOTHETICAL QUESTIONS Ang sinumang kasapi ay maaring itwalag ng Samahan pangsamantala o tuluyan sa
pamamagitan ng tatlo't ikaapat (¾) na bahagi ng dami ng bilang ng Pamunuang
X Company has two recognized labor unions, one for its rank-and-file employees Tagapagpaganap. Pagkaraan lamang sa pandinig sa kanyang kaso. Batay sa
(RFLU) and one for its supervisory employee (SELU). Recently, the company sumusunod…”
instituted a restructuring program by virtue of which A, a rank-and-employee and
President of RFLU, was promoted to a supervisory position along with the 3 other In this case, no hearing was ever conducted by the union (SAMAHAN) to look into
colleagues who are also active officers of RFLU. KJLU, a rival union seeking petitioners' explanation of their moves to oust the union leadership under Capitle, or
recognition as the rank-and-file bargaining agent, filed a petition for the their subsequent affiliation with another union (FEDLU). While it is true that petitioners'
cancellation of the registration of RFLU on the ground that A and his colleagues actions might have precipitated divisiveness and, later, showed disloyalty to the union,
LABOR RELATIONS
A.Y. 2018 - 2019
still, the union (SAMAHAN) should have observed its own constitution and by-laws by 4. X, Y and Z are officers of GF union who claims that their promotions
giving petitioners an opportunity to air their side and explain their moves. If, after an in accordance with the CBA were bypassed by SanBida University. They
investigation the petitioners were found to have violated union rules, then and only then filed a complaint for ULP before the LA grounded on discrimination and
should they be subjected to proper disciplinary measures. violation CBA provisions on job security. Will the action prosper? Explain.
No. Article 248 (e) and (i) states that:
2. In order to raise union funds, GF Union’s board of directors unanimously It shall be unlawful for an employer to commit any of the following unfair labor
adopts a resolution undertaking to “supply 50% of the food in the university practices:
canteen and 30% if the janitorial services in the main building of the (e) To discriminate in regard to wages, hours of work, and other terms and conditions of
university”. Is the resolution valid? employment in order to encourage or discourage membership in any labor organization.
The resolution is invalid. The resolution should not have been passed by the board of xxx
directors only. Article 250(d) of the Labor Code provides that in case of any question of (i) To violate a collective bargaining agreement. x x x
major policy affecting the entire membership—such as the undertaking in this case to
supply 50% of the food in the university canteen and 30% of the janitorial services in In the case herein, the facts averred fails to constitute unfair labor practice under Article
the main building of the university in order to raise union funds—the members shall 248(e) for it does not allege that the non-promotion was done in order to encourage or
determine by secret ballot, after due deliberation, unless the nature of the organization discourage membership in a labor organization. The test of discrimination is whether or
or force majeure renders such secret ballot impractical, in which case, the board of not the giving of benefits and privilege to others and not giving the same to others is
directors of the organization may make the decision in behalf of the general membership. directed to encouraging or discouraging union membership.
3. Charging their union officers with mismanagement, corruption and other As regard the violation of a collective bargaining agreement under Article 248(i), on the
serious anomalies, 200 members of the GF Union called for a general other hand, the said non-promotion does not amount to violation of the CBA provisions
assembly wherein they elected a new set of officers. Thereafter, the on job security because the said employees were not discharged. Moreover, to amount
incumbent officers filed a petition with the Med - Arbiter to nullify and set as unfair labor practice, Silva vs. NLRC instructs that the said violation must be a gross
aside the election of the new set of officers. Rule on the petition. violation of the economic provisions of the Collective Bargaining Agreement.
The petition shall prosper if the election was held in violation of, or not in accordance
with, the constitution and by-laws of the union. 5. Following a deadlock in the CBA negotiations, GF Union threatened the
management that it will go on strike if its demands are not met. To forestall
It was held in the case of UST Faculty Union vs. Bitonio that the union’s constitution their action, the management of San Bida University immediately filed a
and by-laws is the fundamental law which governs the relationship between and among Petition for the Issuance of a Temporary Restraining Order before the
the members of the union. It is where the rights, duties and obligations, powers, NLRC. Should the NLRC grant the petition? Explain.
functions, and authority of the officers and the members are defined. Moreover, it was
stated in the said case that worker’s organizations shall have the right to draw up their Atty. No Case, a faithful and courageous lawyer of GF Union, died. In deep
constitution and rules and to elect their representatives in full freedom. appreciation of his services to the union, the board of directors passed a resolution
granting a death aid benefit to Atty. No Case’s family. May such death aid benefit
Thus, if the election of the new set of officers was done not in accordance with the be deducted from the wages of the union members? Explain.
constitution and by- laws of the union, then the petition shall be denied. However, if the No. Article 250(n) of the Labor Code provides that “no special assessments or other
election of new set of officers may be effected by the union members, in such way, is extraordinary fees may be levied upon the members of a labor organization unless
sanctioned by the constitution and by-laws, then the petition shall prosper. authorized by a written resolution of a majority of all the members in a general
membership meeting duly called for the purpose.”
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A.Y. 2018 - 2019
2. Should the company comply with the union’s demand of terminating the
Thus, the death aid benefit may not be deducted from the wages of the union members services of the members of the religious sect? Explain.
by virtue of a board resolution only. For the deduction to be validly made, the same must
be authorized by a written resolution of a majority of all the members in a general NO. Although close-shop agreement is valid, employees belonging to any religious sect
membership meeting duly called for the purpose. which prohibit affiliation of their members with any labor organization are not covered
by such agreement. The free exercise of religious belief is superior to contract rights.
A group of employees in NOPQ Factory belonging to a religious sect, in conformity
with the teachings and dictates of their religion, refused to join the labor union of DEF Union was voluntarily recognized as the exclusive bargaining agent by GHI
the factory. The labor union was able to negotiate a substantial wage increase in its Corp, an unorganized establishment. Thereafter, a CBA was executed and
collective bargaining agreement with the management. A provision therein stated registered.
that the wage increase would be paid to the members of the union only in view of
the “closed shop” union security clause in the new agreement. The members of the 1. Before the expiration of the freedom period, may DEF Union again request
sect protested and demanded that the wage increase be extended to them. The GHI Corp for voluntary recognition?
officers of the sect protested and demanded that the wage increase be extended to NO. D.O. No. 40-I-15 has already repealed and replaced the rules on voluntary
them. The officers of the union countered by demanding their dismissal from the recognition in D.O. No. 40-03 with rules on request for sole and exclusive bargaining
company pursuant to the closed-shop provision in the just-concluded CBA. agent (SEBA). Hence, as the president of Z Corporation, I can no longer voluntarily
recognize Z Union as the exclusive bargaining representative (EBR). Z Union should
1. Is the CBA provision valid? Explain. ask for SEBA certification from DOLE to be recognized as the EBR of the employees
in the appropriate bargaining unit.
Respondent union in Philippine Diamond Hotel and Resort, Inc. [Manila Diamond
Hotel] v. Manila Diamond Hotel Employees Union, insists that it could validly bargain 2. Assuming GHI Corp agrees to the request, will such voluntary recognition
in behalf of “its members” only. The Supreme Court, however, ruled that the same give rise to a complaint for ULP? Why or why not?
would only “fragment the employees” of petitioner. What respondent union will be YES. If there is already an exclusive bargaining representative chosen through a
achieving is to divide the employees, more particularly, the rank-and-file employees of certification election, the employer will commit ULP if he voluntarily recognizes Z
petitioner hotel. The other workers who are not members are at a serious disadvantage, Union and chooses to bargain with him rather than with the EBR.
because if the same shall be allowed, employees who are non- union members will be
economically impaired and will not be able to negotiate their terms and conditions of 3. Enumerate 5 salient features of RA 9481 which strengthen the worker’s right
work, thus defeating the very essence and reason of collective bargaining which is an to self-organization.
effective safeguard against the evil schemes of employers in terms and conditions of A. Employer as Bystander. - In all cases, whether the petition for certification
work. Petitioner’s refusal to bargain then with respondent cannot be considered an election is filed by an employer or a legitimate labor organization, the employer
unfair labor practice to justify the staging of the strike. shall not be considered a party thereto with a concomitant right to oppose a
petition for certification election. The employer's participation in such
YES. In a closed-shop agreement, only member of the union can be hired by the proceedings shall be limited to: (1) being notified or informed of petitions of
company and they must remain as union members to retain employment in the company. such nature; and (2) submitting the list of employees during the pre-election
In view of the close-shop agreement, the provision on wage increase was not conference should the Med-Arbiter act favorably on the petition.
discriminatory as it was intended to cover all the employees of the NOPQ Factory.
B. Voluntary Cancellation of Registration. - The registration of a legitimate labor
organization may be cancelled by the organization itself. Provided, That at least
LABOR RELATIONS
A.Y. 2018 - 2019
two-thirds of its general membership votes, in a meeting duly called for that
purpose to dissolve the organization: Provided, further, That an application to
cancel registration is thereafter submitted by the board of the organization,
attested to by the president thereof."
C. Chartering and Creation of a Local Chapter. - A duly registered federation or

national union may directly create a local chapter by issuing a charter certificate
indicating the establishment of the local chapter. The chapter shall acquire legal
personality only for purposes of filing a petition for certification election from
the date it was issued a charter certificate.
D. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. -

The inclusion as union members of employees outside the bargaining unit shall
not be a ground for the cancellation of the registration of the union. Said
employees are automatically deemed removed from the list of membership of
said union."
E. Reportorial Requirements. Failure to comply with the requirements shall not

be a ground for cancellation of union registration but shall subject the erring
officers or members to suspension, expulsion from membership, or any
appropriate penalty."


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LABOR RELATIONS

Atty. Peter Joey B. Usita

h. What are the claims in the complaint?

2. if in the affirmative; whether petitioner was illegally dismissed

relationship the two-tiered test is applied. Economic realities of the employment

SC RULING: Austria v. NLRC

SAN BEDA COLLEGE OF LAW – MENDIOLA 16

Requisites: What are examples of attachments?

Can it be also later than receipt?

SAN BEDA COLLEGE OF LAW – MENDIOLA 20

SAN BEDA COLLEGE OF LAW – MENDIOLA 24

SAN BEDA COLLEGE OF LAW – MENDIOLA 28

Does a labor organization have a legal personality? f. To vote on special assessment

SAN BEDA COLLEGE OF LAW – MENDIOLA 30

1. Bad faith in bargaining (boulwalrism), including failure or refusal to execute the

When does the CBA expire?

least the majority of the number of employees in the covered

Requirements What is a grievance?

Supreme Court may take cognizance of petitions questioning decisions of certain

Wylie doctrine Generally, what are the types of strike?

SAN BEDA COLLEGE OF LAW – MENDIOLA 47

Causes for termination Is the disease the one that is prohibited?

JUST CAUSES (FC-SWAG) Distinctions between just and authorized causes

Labor Dispute 2. Globe Doctrine

C. Chartering and Creation of a Local Chapter. - A duly registered federation or

D. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. -

E. Reportorial Requirements. Failure to comply with the requirements shall not

SAN BEDA COLLEGE OF LAW – MENDIOLA 58

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