Labor Law 1 Course Outline

School Year 2019-2020

Atty. Jerwin Lim

II. Pre-Employment and Recruitment

A. Pre-Employment

1. Employment Contracts

a) Article 4, Labor Code of the Philippines

b) Article 1701, New Civil Code.
c) Cases:
(1) Brew Master International, Inc, vs. National Federation of Labor
Unions, et. al., G.R. No. 119243, 17 April 1997
(2) Leyte Geothermal Power Progressive Employees Union - ALU – TUCP
vs. Philippine National Oil Company - Energy Development
Corporation, G.R. No. 170351, 20 March 2011

2. Prohibited Stipulations in Employment Contracts

a) Article 136, Labor Code of the Philippines.

b) Article 248(b), Labor Code of the Philippines.
c) Article 135 and Article 140, Labor Code of the Philippines.

3. Restrictive Covenants in Employment Contracts

a) Cases:
(1) Rolando Rivera vs. Solid Bank Corporation, G.R. No. 163269, 19 April
2006
(2) Daisy Tiu vs. Platinum Plans Phils., Inc., G.R. No. 163512, 28
February 2007
(3) Ferrazzini v. Gsell, GR No. 10712, 10 August 1916
(4) Del Castillo v. Richmond, GR No. 21127, 9 February 1924

B. Kinds of Employment

1. Regular Employment

a) Article 295 (280), Labor Code of the Philippines

b) Cases:
(1) Pure Foods Corporation vs. National Labor Relations Commission, et.
al., G.R. No. 122653, 12 December 1997.
(2) Buenaventura C. Magsalin & Coca Cola Bottlers, Phils. Inc. vs.
National Organization of Working Men, et. al., G.R. No. 148492, 9 May
2003.
(3) Romares v. NLRC, G.R. No. 122327, 19 August 1998.
(4) Association of Trade Unions v. Abella, G.R. No. 100518, 24 January
2000.
 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

(5) Bustamante v. NLRC, G.R. no. 111651, 15 March 1996.

2. Casual Employment

a) Cases:
(1) Maranaw Hotels & Resort Corp. v Court of Appeals, GR No. 149660
(2009)
(2) Mercado v NLRC, 201 SCRA 332 (1991)
(3) See also: Philippine Jai-Alai & Amusement Corporation v Clave, G.R.
No. L-54136, 21 December 1983
(4) University of Santo Tomas vs Samahang Mangagagwa ng UST, et. al.,
G.R. No. 184262, 24 April 2017

3. Seasonal Employee

a) Cases:
(1) Hacienda Bino/Hortencia Starke, Inc. et. al. vs. Candindo Cuence, at.
al., G.R. No. 150478, 15 April 2005.
(2) Manila Hotel Company vs. Court of Industrial Relations, et. al., G.R.
No. L-18873, 30 September 1963.

4. Project Based Employment

a) Article 295 (280), Labor Code of the Philippines

b) Section 5[a], Rule I, Book VI, Rules to Implement the Labor Code, as
amended by Article IV, Department Order No 10, Series of 1997
c) Project Employment in the Construction Industry - DOLE Department
Order No. 19, Series of 1993.
d) Cases:
(1) Saberola v. Suarez, G.R. No. 151227, 14 July 2008.
(2) GMA Network Inc. v. Pabriga, G.R. No. 1746419, 27 November 2013.
(3) ALU-TUCP, et. al. vs. NLRC, G.R. No. 109902, 2 August 1994.
(4) Hermonias L. Liganza vs. RBL Shipyard Corp., G.R. No. 159862, 17
October 2006.
(5) Judy O. Dacuital et. al. vs. L.M. Camus Engineering Corporation, G.R.
no. 176748, 1 September 2010.
(6) San Miguel Corporation vs. National Labor Relations Commission,
G.R. No. 147566, 6 December 2006.

e) Work Pool

(1) Maraguinot, Jr. et. al., v. NLRC and Viva Films, G.R. No. 120969
January 22, 1998
(2) Tomas Lao Construction, et al. v. NLRC, et al., G.R. No. 116781, 5
September 1997
 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

5. Fixed-Term Employment

a) Brent School Inc. v Ronaldo Zamora, et. al., G.R. No. L-48494, 5
February 1990
(1) Cherry J. Price, et al. vs. INNODATA Phils. Inc., et al., G.R. No.
178505, 30 September 2008.
(2) Lynvil Fishing Enterprises Inc. v Ariola GR 181974, Feb 1 2012
(3) Purefoods Corp. v NLRC, 283 SCRA 133 (1997)
(4) Universal Robina Sugar Milling Corporation and Rene Cabati, G.R.
No. 186439. January 15, 2014
(5) Fuji Television Network Inc. v Espiritu, G.R. No. 204944-45, December
03, 2014
(6) Fontera Brands Phils., Inc. vs. Leonardo Largado and Teotimo
Estrellado, G.R. No. 205300, March 18, 2015

6. Special Types of Employment

a) Learners

(1) Article 73, Labor Code of the Philippines

(2) Omnibus Rules: Book II, Rules VI-VII
(3) Republic Act 7686 otherwise known as the Dual Training System Act
of 1994
(4) TESDA Circular No. 16, Series of 2004

b) Apprentices

(1) Article 58, Labor Code of the Philippines

(2) Republic Act No. 7796 otherwise known as the Technical Education
and Skills Development Act of 1994
(3) Cases
(a) Century Canning Corporation vs. CA, G.R. No. 152894, 17 August
2007
(b) Nitto Enterprises v. NLRC, 248 SCRA 654

c) Foreign or Alien Employment

(1) Articles 40-42, Labor Code of the Philippines

(2) Omnibus Rules: Book I, Rule XIV,
(3) DOLE Department Order No. 146 series of 2015
(4) Cases:
(a) General Milling Corp. v. Torres, 196 SCRA 215
(b) Almodiel v NLRC 223 SCRA 341
 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

(c) Pacific Consultants International Asia Inc. v Schonfeld, GR No.

166920, Feb 19, 2007
(d) WPP Marketing Communications, Inc. et al. vs. Jocelyn M. Galera/
Jocelyn M. Galera vs. WPP Marketing Communications, Inc. et al.,
G.R. No. 169207/G.R. No. 169239, March 25, 2010
(e) Dreamland Hotel Resort v Stephen B. Johnson, G.R. No. 191455,
March 12, 2014

C. Hiring Policies/Standards

1. Management Prerogative
a) Michelle Tuason vs. Bank of Commerce, et. al., G.R. No. 192076, 21
November 2012
b) Armando G. Yrasuegi vs. Philippine Airlines, Inc., G.R. No. 168081, 12
October 2008
c) Duncan Association of Detailman-PTGWTO
vs. Glaxo Wellcome Philippines, Inc., G.R. No. 162994, 17 September
2004
2. Women
a) Article 135, the Labor Code of the Philippines
b) Section 22, Republic Act 9710, otherwise known as the Magna Carta for
Women
3. Solo Parent
a) Section 7, RA 8972, otherwise known as the Solo Parents’ Welfare Act of
2000
4. Persons with Disabilities
a) Title Two, Chapter I, Section 5, the Magna Carta for Disabled Persons
b) Title One, Chapter I, Section 4(k), the Magna Carta for Disabled Persons

D. Recruitment and Placement

1. Recruitment and Placement Defined

a) Article 13 (b), Labor Code of the Philippines

b) Cases:
(1) People v. Saley, 291 SCRA 715 (1998)
(2) People v Goce, 247 SCRA 780 (1995)
(3) People v. Panis, G.R. Nos. L-58674-77, 11 July 1986

2. Illegal Recruitment

a) Local vs Overseas

(1) Illegal Recruitment in Local Employment

 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

(a) Article 38 Labor Code of the Philippines

(b) Section 42, Department Order No. 141-14, Series of 2014, Revised
Rules and Regulations Governing Recruitment and Placement for
Local Employment

(2) Illegal Recruitment in Overseas Employment

(a) Section 6, R.A. No. 8042 as amended by Section 5 of R.A. No.

10022
(b) Section 1, Rule II, Omnibus Rules and Regulations Implementing
the Migrant Workers and Overseas Filipinos Act of 1995, as
amended by R.A. No. 10022, 8 July 2010.

b) Types of Illegal Recruitment

(1) Simple Illegal Recruitment

(a) Republic of the Philippines v. PASEI, G.R. No. 167590, 13

November 2012.
(b) People v. Engr. Diaz, 328 Phil. 794, 806 (1996)

(2) Illegal Recruitment Involving Economic Sabotage

(a) Syndicated Illegal Recruitment

i) People v. Lalli, G.R. No. 195419, 12 October 2011
ii) People v. Guevarra, G.R. No. 120141, 21 April 1999

(b) Large Scale Illegal Recruitment

i) People v. Laurel, G.R. No. 120353, 12 February 1998
ii) People v. Trinidad, G.R. No. 181244, 9 August 2010
(c) Cases
i) People v. Fernandez, G.R. No. 199211, 4 June 2014]
ii) Rodolfo v. People, G.R. No. 146964, 10 August 2006
iii) People v. Ballesteros, G.R. Nos. 116905-908, 6 August 2002
iv) People v. Jamilosa, G.R. No. 169076, 27 January 2007

c) Illegal Recruitment v ESTAFA

(1) Sy v. People, G.R. No. 183879, 14 April 2010

(2) People v. Ballesteros, G.R. No. 116905-908, 6 August 2002

d) Liability of Local Recruitment Agency and Foreign Employer

(1) Solidary Liability

 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

(a) Section 10, R.A. No. 8042, as amended by Section 7, R.A. No.
10022
(b) Section 3, Rule VII, Omnibus Rules and Regulations Implementing
the Migrant Workers and Overseas Filipinos Act of 1995, as
amended by R.A. No. 10022, 8 July 2010

(2) Theory of Imputed Knowledge

(a) Sunace International Management Services, Inc. v NLRC, G.R. No.

161757, January 25, 2006
(b) Serrano v. Gallant Maritime Services, G.R. No. 167614, March 24
2009
(c) Sameer Overseas Placement Agency v Cabiles, G.R. No. 170139,
August 05, 2014

e) Money Claims

(1) Section 10, R.A. No. 8042 as amended by R.A. No. 10022
(2) Cases:
(a) Vir-Jen Shipping and Marine Services Inc v. NLRC, G.R. No.
L-58011 & L-58012, November 18, 1983
(b) Serrano v. Gallant Maritime Services, G.R. No. 167614, March 24
2009;
(c) Yap v. Thenamaris Ship’s Management and Intermare Maritime
Agencies, Inc., G.R. No. 179532, May 30, 2011
(d) Sameer Overseas Placement Agency v Cabiles, G.R. No. 170139,
August 05, 2014
(e) Becmen Service Exporter and Promotion v. Cuaresma, G.R. Nos.
182978-79, April 7, 2009

f) Jurisdiction

(1) Criminal Action:

(a) RA 8042 Sec 9, Omnibus Rules Implementing RA 8042 as
amended Rule IV sec 6.
(2) Money Claims
(a) RA 8042 Sec 10 1st par, Omnibus Rules Implementing RA 8042 as
amended Rule VII, Sec 1
(3) Administrative Cases
(a) Omnibus Rules Implementing RA 8042 as amended, Rule X, Sec 6
(a), (b)

3. POEA Land-Based Rules and Regulations (2016)

 Labor Law 1 Course Outline
School Year 2019-2020
Atty. Jerwin Lim

a) Licensing (Part II, Rule I)

b) Fees, Costs, and Contributions (Part II, Rule V)
(1) http://www.gov.ph/2015/06/09/poea-cancels-license-of-manning-
agency-over-placement-fee/
c) Recruitment Outside Registered Office, (Part II, Rule VII), Illegal
Recruitment (Part II, Rule X)
d) Placement by the Private Sector (Part III, Rules I and II)
(1) ABD Overseas Manpower Corp. v. NLRC, 286 SCRA 454
e) Recruitment Violations and Related Cases
(1) Datuman v. First Cosmopolitan Manpower and Promotion Services,
G.R. No. 156029, 14 November 2008
f) Repatriation of Workers (Part VIII, Rule II)
(1) Equi-Asia Placement Inc. v. Department of Foreign Affairs, G.R. No.
152214, 19 September 2006