Preliminary Title: San Beda College of Law

San Beda College of Law 1
MEMORY AID IN LABOR LAW
1. wages
PRELIMINARY TITLE 2. hours of work
3. cost-of-living allowance
4. other monetary and welfare
 LABOR – exertion by human beings of
benefits, including occupational
physical or mental efforts, or both,
safety, and health standards.
towards the production of goods and
(Maternity Children’s Hospital vs
services. Labor also means that sector or
Sec. of Labor G.R. No. 78909. June
groups in a society which derives its
30,1989)
livelihood chiefly from rendition of work
or services in exchange for compensation
 LABOR RELATIONS LAW – that which
under managerial direction. (Mendoza:
defines the status, rights, and duties and
2001)
the institutional mechanisms that govern
the individual and collective interactions
of employers, employees or their
CHAPTER I representatives.
GENERAL PROVISIONS
-the law which seeks to stabilize
 ART. 1. NAME OF DECREE the relation between employers and
“Labor Code of the Philippines” employees, to forestall and thresh out
their differences through the
 ART. 2. DATE OF EFFECTIVITY encouragement of collective bargaining
and the settlement of labor disputes
 The Labor Code took effect on through conciliation, mediation, and
November 1, 1974 (six months after its arbitration.
promulgation on May 1,1974).
1. 2.
 LABOR LEGISLATION - consists of LABOR LAW SOCIAL
statutes, regulations and jurisprudence 3.
governing the relations between capital LEGISLATION
and labor, by providing for certain 4. 5.
1. directly affects 1. governs the effects
standards of terms and conditions of
employment (e.g. 6.
employment or providing a legal wages) of employment (e.g.
framework within which these terms and 7.
conditions and the employment compensation
relationship may be negotiated, adjusted 8.
and administered. for injuries)
9. 10.
- body of statutes, rules and 2. designed to meet 2. involves long
doctrines that defines State policies on the daily needs of 11.
labor and employment, and governs the workers range benefits
12. 13.
rights and duties of workers and
3. covers 3. covers
employers respecting terms and employment for employment, profit
conditions of employment by prescribing profit or gain and non-profit
certain standards therefore, or by 14. 15.
establishing a legal framework within 4. affects work of 4. affects life
which better terms and conditions of employee 16.
work could be obtained through of employee
collective bargaining or other concerted
activity.  OVERVIEW OF THE LABOR CODE
 LABOR STANDARDS - the minimum BOOK ONE – On Pre-employment, sets

requirements prescribed by existing the period and groundwork to attain a
laws, rules and regulations relating state of full employment by making the
to : full possible use of its manpower.
LABOR LAW COMMITTEE

 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry
Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
2 2005 CENTRALIZED BAR OPERATIONS
BOOK TWO – On Human Resource  CONSTITUTIONAL PROVISIONS THAT

Development, emphasizes the need of GUARANTEE THE RIGHTS OF WORKERS,
developing human resources. PROTECT THEIR SPECIAL INTEREST, OR
PROMOTE THEIR GENERAL WEFARE:
BOOK THREE – On Conditions of
Employment, deals with the mechanism 1. Protection to labor (Sec. 3,
to protect or secure the workers who Article XIII)
may be employed especially after 2. Right of workers to form unions
appropriate qualification and training. (Sec.3, Article XIII, 2nd par., Bill
of Rights)
BOOK FOUR – On Health, Safety and 3. Principle of shared responsibility
Social Welfare Benefits, deals with (3rd par., Article XIII)
protection and promotion of the health 4. Right of employers to profit (last
and safety of the worker. par., Article XIII, section 3)
5. Employment of women workers
BOOK FIVE – On Labor Relations, spells (Sec. 14, Article XIII)
out the terms and conditions of
employment. RELATED LAWS:
BOOK SIX – On Post Employment, 1. CIVIL CODE:

provides for security of tenure and · Art. 1700. The relations between
conditions under which security of capital and labor are not merely
tenure and conditions under which a contractual. They are so
worker may be dismissed. impressed with public interest
that labor contracts must yield
BOOK SEVEN – On Transitory and Final to the common good. Therefore,
Provisions, provides for sanctions for such contracts are subject to the
violation or non-compliance with the special laws on labor unions,
Code; it also provides for procedure and collective bargaining, strikes and
prescription for the enforcement of lockouts, closed shop, wages,
rights under the Code. working conditions, hours of
labor and similar subjects.
 BASIC RIGHTS OF WORKERS AS
GUARANTEED BY THE · Art. 1701. Neither capital nor
CONSTITUTION: (Art.13, Sec.3, 2nd labor shall act oppressively
par. Consti.) against the other, or impair the
(POWEERSC) interest or convenience of the
1. Right to Participate in policy & public.
decision-making processes · Art. 1703. No contract which
affecting their rights and practically amounts to
benefits as may be provided by involuntary servitude, under any
law guise whatsoever, shall be valid.
2. Right to Organize themselves
3. Right to Work under humane
conditions 2. REVISED PENAL CODE:
4. Right to Engage in peaceful - Art. 289. Formation, maintenance
concerted activities including and prohibition of combination of
strike in accordance with law capital or labor through violence or
5. Right to Enjoy security of tenure threats. — The penalty of arresto
6. Right to Receive a living wage mayor and a fine not exceeding 300
7. Right to Share in the fruits of pesos shall be imposed upon any
production person who, for the purpose of
8. Right to Conduct collective organizing, maintaining or
bargaining or negotiation with preventing coalitions or capital or
management labor, strike of laborers or lock-out
of employees, shall employ violence
2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT
CHAIRPERSONS
Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), Yolanda
Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VC-
EDP), Anna Margarita Eres (VC-Logistics) Jonathan
Mangundayao (Political Law), Francis Benedict Réotutar (Labor Law), Romuald Padilla (Civil Law),
Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (Commercial
Law), Jinky Ann Uy (Remedial Law), Jackie Lou Bautista (Legal Ethics)
or threats in such a degree as to

compel or force the laborers or  ART. 3. DECLARATION OF BASIC
employers in the free and legal POLICY
exercise of their industry or work, if
the act shall not constitute a more 1 The State shall: [PEARA]
serious offense in accordance with a. Promote full employment,
the provisions of this Code. b. Ensure equal work
3. SPECIAL LAWS: opportunities regardless of
· SSS Law sex, age or creed,
· GSIS Law c. Afford protection to labor,
· Comprehensive Agrarian Reform d. Regulate the relations
Law between workers and employers,
· 13th Month Pay Law e. Assure the right of workers
· Magna Carta for Public Health to: [JSSC]
Workers
· Migrant Workers Act of 1995 1.Just and humane conditions of
· National Health Insurance Act work
2. Self-organization
 AIM, REASON & JUSTIFICATION OF 3. Security of tenure
LABOR LAWS: 4. Collective bargaining
- raison d’etre : SOCIAL JUSTICE

“the humanization of laws and the  ART. 4. CONSTRUCTION IN FAVOR
equalization of social and economic OF LABOR
forces by the State so that justice in
its rational and objectively secular The rule is applicable if there is a
conception may at least be doubt as to the meaning of the legal and
proximated. Social justice means the contractual provision. If the provision is
promotion of the welfare of all clear and unambiguous, it must be
people, the adoption by the applied in accordance with its express
government of measures calculated terms.
to ensure economic stability of all
the component elements of the In interpreting the Constitution’s
society through the maintenance of protection to labor and social justice
proper economic and social provisions and the labor laws and rules
equilibrium in the interrelations of and regulations implementing the
the members of the community, Constitutional mandate, the SC adopts
constitutionally, through the the liberal approach which favors the
adoption of measures legally exercise of labor rights.(Meralco vs.
justifiable or extra-constitutionally, NLRC, G.R.No. 78763. Jul.12, 1989)
through the exercise of powers
underlying the existence of all While the Constitution is committed
governments, on the time honored to the policy of social justice and the
principle of “salus populi suprema protection of the working class, it should
est lex” (Calalang vs. Williams) not be supposed that every labor dispute
shall be automatically resolved in favor
 BASIS OR FOUNDATION OF LABOR of labor. It is mandated that there be
LAWS: POLICE POWER equal protection and respect not only
the laborer’s side but also the
- "State’s authority to enact management and/or employer’s side.
legislation that may interfere with The law, in protecting the rights of the
personal liberty or property in order to laborer, authorizes neither oppression
promote the general welfare." (PASEI vs. nor self-destruction of the employer
Drilon, G.R.No.L-81958. June 30,1988) (Colgate Palmolive Philippines vs. Ople,
G.R.No. 73681. June 30,1988)
LABOR LAW COMMITTEE

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REASONS FOR AFFORDING GREATER  AGRICULTURAL OR FARM WORKER -

PROTECTION TO EMPLOYEES one employed in an agricultural or farm
enterprise and assigned to perform tasks
1. There is greater supply than which are directly related to the
demand for labor. agricultural activities of the employer,
such as cultivation and tillage of the soil,
2. The need for employment by dairying, growing and harvesting of any
labor comes from vital, and even agricultural and horticultural
desperate, necessity. commodities, the raising of livestock or
 MANAGEMENT RIGHTS: [CPST ] poultry, and any activity performed by a
farmer as an incident to or in
C Right to conduct business conjunction with such farming
P Right to prescribe rules operations.
S Right to select and hire employees
T Right to transfer or discharge - There may be, in one
employees employer, both agricultural as well as
industrial workers.
 ART.5. RULES AND REGULATIONS
· Agricultural workers receive salaries
 The rules and regulations issued by lower than the prescribed minimum
the DOLE shall become effective 15 days for industrial and commercial
after announcement of their adoption in employees.
newspapers of general circulation.
CHAPTER II
DELEGATED LEGISLATIVE POWER - It is
true that police power is the domain of EMANCIPATION OF TENANTS
the legislature, but it does not mean (amended by RA 6657, CARL)
that such an authority may not be
lawfully delegated. The Labor Code  ARTS. 7-11.
itself vests the Department of Labor and
Employment with rule-making powers in  Constitutional bases :
the enforcement whereof. (PASEI vs Art.III, Sec.21.
Drilon) “The State shall promote
comprehensive rural development and
 ART. 6. APPLICABILITY agrarian reform.”
 The LC applies to all workers, Art.XIII, Sec.4

whether agricultural or non-agricultural, “The State shall, by law, undertake
including employees in a government an agrarian reform program founded on
corporation incorporated under the the right of farmers and regular
Corporation Code. farmworkers, who are landless, to own
directly or collectively the lands they
- government corporations till or, in the case of other
created by special (original) charter are farmworkers, to receive a just share of
subject to the Civil Service Law, while the fruits thereof. To this end, the
those corporations under the general State shall encourage and undertake the
corporation law are not within the just distribution of all agricultural
coverage of the Civil Service Law, but is lands, subject to such priorities and
subject to the provisions of Labor Code. reasonable retention limits as the
Congress may prescribe, taking into
- It is important to distinguish if account ecological, developmental, or
the employee is employed in a GOCC equity considerations, and subject to
with an original charter or not. (see the payment of just compensation. In
discussion in Art. 244) determining retention limits, the State
shall respect the rights of small

CHAIRPERSONS
landowners. The State shall further RECRUITMENT AND PLACEMENT OF

provide incentives for voluntary land- WORKERS
sharing.”
CHAPTER I
- Share tenancy has been abolished GENERAL PROVISIONS
placing in its stead a leasehold system.
 ART. 13. DEFINITIONS
- Under Art. 8, the land covered
by operation land transfer must be
private agricultural land, tenanted, (a) WORKER - any member of the labor
primarily devoted to rice and/or corn, force, whether employed or unemployed
and more than seven hectares in area. (b) RECRUITMENT AND PLACEMENT -
any act of (CEC-TUHP) canvassing,
 PRESENT RETENTION LIMITS: enlisting, contracting, transporting,
- 5 hectares per landowner and 3 utilizing, hiring or procuring workers,
hectares per child provided the child and includes (RCPA) referrals, contract
is: services, promising or advertising for
employment, locally or abroad, whether
· at least 15 years of age; and
for profit or not; PROVIDED, that any
· actually/personally tilling the
person or entity which, in any manner,
land or directly managing the
offers or promises for a fee employment
farm
to two or more persons shall be deemed
engaged in recruitment and placement.
 LANDS NOT COVERED:
· livestock and poultry farms - The number of persons dealt with is
· those covered by homestead not an essential ingredient of the act of
patents recruitment and placement of workers.
· residential subdivisions The proviso merely creates a
presumption.(People vs Panis, G.R. No.
EMANCIPATION PATENT - the title L-58674-77. July 11, 1986)
issued to the tenant upon compliance
with all the requirements of the  ELEMENTS OF ENGAGING IN
government. It represents the full RECRUITMENT & PLACEMENT
emancipation of the tenant from the ACTIVITIES:
bondage of the soil.
These conditions must concur to
 PROHIBITION AGAINST ALIENATION IS constitute recruitment & placement:
INTENDED TO:
1. The complainant had a distinct
1. preserve the landholding in the impression that the accused had the
hands of the owner-tiller and his power to send complainant abroad for
heirs; work; and
2. minimize land speculation; and
3. prevent a return to the regime of 2. The complainant was convinced to
land ownership by a few. part with his money in order to be so
employed. (People vs. Goce,
G.R.No.113161. Aug. 29, 1995)
BOOK ONE  ART. 16. PRIVATE RECRUITMENT
 ENTITIES AUTHORIZED TO RECRUIT:

PRE-EMPLOYMENT
1. Public employment offices
TITLE I 2. Private recruitment entities
3. Private employment agencies
LABOR LAW COMMITTEE

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4. Shipping or manning agents or 1. Commission of a felony punishable

representatives by the laws of the Philippines or by
5. POEA the host country;
6. Construction contractors if 2. Drug addiction or possession or
authorized by the DOLE and the trafficking of prohibited drugs;
Construction Industry Authority 3. Desertion or abandonment;
7. Members of the diplomatic corps 4. Drunkenness, especially where the
(but hiring must also go through laws of the host country prohibit
POEA) intoxicating drinks;
8. Other persons or entities as may be 5. Gambling, especially where the laws
authorized by the DOLE Secretary. of the host country prohibit the
same;
 ART. 17. (POEA) 6. Initiating or joining a strike or work
stoppage where the laws of the host
 The POEA has taken over the country prohibit strikes or similar
functions of the OEDB & NSB. actions;
7. Creating trouble at the worksite or
 PRINCIPAL FUNCTIONS OF THE POEA: in the vessel;
(FPD ) 8. Embezzlement of company funds or
1. Formulation, implementation, & of money and properties of a fellow
monitoring of overseas worker entrusted for delivery to kins
employment of Filipino workers or relatives in the Philippines;
2. Protection of their rights to fair 9. Theft or robbery;
and equitable employment 10. Prostitution;
practices 11. Vandalism or destroying company
3. Deployment of Filipino workers property;
through government-to- 12. Gunrunning or possession of deadly
government hiring weapons;
13. Unjust refusal to depart for the
 REGULATORY FUNCTION OF THE worksite after all employment and
POEA: travel documents have been duly
- regulates private sector approved by the appropriate
participation in the recruitment and government agencies; and
overseas placement of workers through 14. Violation of the laws and sacred
its licensing and registration system. practices of the host country and
unjustified breach of government
 ADJUDICATORY FUNCTIONS OF THE approved employment contract by a
POEA: worker.
1.All cases which are administrative
in character, involving or arising  WHERE TO FILE DISCIPLINARY
out of violations of rules and ACTION CASES
regulations relating to licensing - Rule VII of Book VII of the
and registration of recruitment POEA Rules provides that complaints for
and employment agencies or breach of discipline against a contract
entities; and worker shall be filed with the
2.Disciplinary action cases and other Adjudication Office or Regional Office of
special cases which are the POEA, as the case may be. The POEA
administrative in character, may motu propio undertake disciplinary
involving employers, principals, action against a worker for breach of
contracting partners and filipino discipline. It shall establish a system of
migrant workers. watching and blacklisting of overseas
contract workers.
 GROUNDS FOR DISCIPLINARY ACTION
(Under the MWA of 1995, RA 8042):

CHAIRPERSONS
 JURISDICTION TRANSFERRED TO THE contract concerned has a term of at

LABOR ARBITERS OF THE NLRC (Sec. least 1 year or more. This is evident
10, RA 8042): from the words “for every year of the
-claims arising out of an unexpired term” which follows the
employer-employee relationship or by salaries x x x for three months.”
virtue of any law or contract involving
Filipino workers for overseas deployment - Under Section 10, RA 8042, the
including claims for actual, moral, claim for unpaid salaries of overseas
exemplary and other forms of damages. workers should be whichever is less
between salaries for unexpired portion
VENUE: Money claims or claims for of the contract or 3 months for every
damages should be filed before the year of the remaining unexpired portion
Regional Arbitration branch of the NLRC of the contract (in case contract is one
where the complainant resides or where year or more) (Skippers Pacific, Inc. Vs.
the principal office of the Mira, et al. NOV. 21, 2002).
respondent/employer is situated, at the - The basis for the award of
option of the complainant. backwages is the parties’ employment
contract, stipulating the wages and
COMPROMISE AGREEMENT: Consistent benefits.
with the policy encouraging amicable
settlement of labor disputes, Sec 10, RA  N.B.: SIGNING A SATISFACTION
8042 allows resolution by compromise of RECEIPT IS NOT A WAIVER. Any
cases filed with the NLRC. agreement to receive less compensation
that what the worker is entitled to
 RULE ON PREMATURE TERMINATION recover is INVALID (MR Yard Crew Union
OF CONTRACT vs. PNR).
1. RULE: Termination before the
agreed termination date based not on  RULE ON SIDE AGREEMENTS
lawful or valid ground, employer will pay
employee corresponding to the An agreement that diminishes the
unexpired portion of the employment employee’s pay and benefits as
contract (Tierra Int’l Construction Corp. contained in a POEA – approved contract
vs. NLRC) is void, unless such subsequent
agreement is approved by POEA (Chavez
2. HOWEVER, under R.A. 8042, vs. Bonto-Perez; G.R.No. 109808;
Mar.1,1995).
Cut-off date: JULY 15, 1995
- illegally dismissed employees are  MINIMUM REQUIREMENTS OR
entitled to full reimbursement of his EMPLOYMENT CONDITIONS OF
placement fee with interest at 12% per OVERSEAS EMPLOYMENT
annum PLUS salary for unexpired portion PRESCRIBED BY POEA :
of his employment OR for three (3) (GFF-JW-RAF)
months for every year of the unexpired
term whichever is less. 1. Guaranteed wages for regular
working hours and overtime pay for
- However, SC clarified in the case services rendered beyond regular
of Marsaman Manning Agency vs. NLRC working hours in accordance with
(G.R.No. 127195. Aug.25, 1999) that “A the standards established by the
plain reading of section 10 clearly POEA;
reveals that the choice of which amount 2. Free Transportation from point of
to award an illegally dismissed OCW, i.e. hire to site of employment and
whether his salaries for the unexpired return;
portion of his employment contract or 3 3. Free emergency medical and dental
months’ salary for every year of the treatment and facilities;
unexpired term whichever is less, comes
into play ONLY when the employment
LABOR LAW COMMITTEE

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4. Just causes for termination of the

contract or of the services of the  RATIONALE OF THE PROHIBITION
workers;
5. Workmen’s compensation benefits Filipino workers hired directly
and war hazard protection; by a foreign employer without
6. Repatriation of worker’s remains and government intervention may not be
properties in case of death to the assured of the best possible terms and
point of hire, or if this is not conditions of work. The foreign
possible, the proper disposition employer must also be protected as he
thereof; may chance upon a Filipino worker who
7. Assistance on remittance of worker’s does not possess sufficient knowledge
salaries, allowances or allotments to for which he is employed.
his beneficiaries; and
8. Free and adequate board and
lodging facilities or compensatory  ART. 22. MANDATORY REMITTANCE
food allowance at prevailing cost of OF FOREIGN EXCHANGE EARNINGS
living standards at the jobsite.
AGENCIES GIVEN THE DUTY TO  MANDATORY REMITTANCE
PROMOTE THE WELFARE AND PROTECT REQUIREMENTS:
THE RIGHTS OF MIGRANT WORKERS: - It shall be mandatory for all Filipino
1. DFA workers abroad to remit a portion of
2. DOLE their foreign exchange earnings to their
3. POEA families, dependents, and/or
4. OWWA- provides social and welfare beneficiaries in the country.
services including insurance coverage, -The POEA Rules (Book III, Rule VIII)
legal assistance, placement assistance prescribe the percentages of foreign
and remittance services to Filipino exchange remittance ranging from 50%
overseas workers. to 80% of the basic salary, depending on
5. Re-Placement and Monitoring the worker’s kind of job.
Center (RPM)- develops livelihood
programs for the returning workers, the
purpose of which is to reintegrate the
returning migrant workers to the
Philippine society.
 ART. 18. BAN ON DIRECT HIRING
 GENERAL RULE: Direct hiring of

Filipino workers by a foreign
employer is NOT allowed.
 EXCEPTIONS:
1. Direct hiring by:
a. the members of the diplomatic
corps;
b. international organizations; and
c. such other employers as may be
allowed by DOLE
2. NAME HIREES – individual workers

who are able to secure contracts for
overseas employment on their own
efforts and representations without
the assistance or participation or any
agency.

CHAIRPERSONS
Nature of Job Foreign Exchange

Remittance
(% of the Basic
salary)
CHAPTER II
Seamen or 80%
REGULATIONS OF RECRUITMENT mariners
AND PLACEMENT ACTIVITIES
Workers for Filipino 70%
 ART. 25. PRIVATE SECTOR contractors and
PARTICIPATION IN THE RECRUITMENT construction
AND PLACEMENT OF WORKERS companies
 QUALIFICATIONS FOR PARTICIPATION Professionals 70%

IN THE OVERSEAS EMPLOYMENT whose
PROGRAM: employment
1. Citizenship requirement (Art.27,LC) contract provide
· Filipino citizens, partnerships or for lodging facilities
corporations
· at least 75% of the authorized Professionals 50%
and voting capital stock of which without
is owned and controlled by board
Filipino citizens and lodging
2. Capitalization (Art. 28, LC)
Domestic and other 50%
· For single proprietorship
service
or partnership -
Workers
minimum capitalization
1. Travel agencies and sales
of two (2) million.
agencies of airline companies
· For corporations - a
(Art.26,LC);
minimum paid up capital
2. Officers or members of the
of 2 million provided
board of any corporation or
that in those with
members in a partnership
existing licenses shall,
engaged in the business of a
within 4 years from
travel agency;
effectivity hereof,
3. Corporations and partnerships,
increase their
when any of its officers,
capitalization or paid-up
members of the board or
capital, as the case
partners, is also an officer,
maybe, to two million
member of the board or partner
pesos at the rate of two
of a corporation engaged in the
hundred fifty thousand
business of a travel agency
pesos (P250,000) every
(interlocking officers);
year.
4. Persons, partnerships, or
3. Those not otherwise disqualified by
corporations which have
law or guidelines to engage in the
derogatory records;
recruitment and placement of workers
- such as but not limited to
for overseas employment.
those directed to be included in
the list of persons and entities
 THE FF. ARE DISQUALIFIED FROM
issued by POEA pursuant to:
RECRUITMENT & PLACEMENT OF a) those certified to have
WORKERS FOR OVERSEAS EMPLOYMENT derogatory record or
WHETHER FOR PROFIT OR NOT: information by NBI or by the
Anti-illegal Recruitment Branch
of POEA
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b) those against whom probable cause the automatic revocation of

cause or prima facie finding of the license.
guilt or illegal recruitment of
other related cases exist  ART. 31. BONDS
c) those convicted for illegal
recruitment or other related
cases and/or crimes involving - All applicants for license or authority
moral turpitude shall post such cash and surety bonds as
d) those agencies whose licenses determined by the Sec. of Labor.
have been previously cancelled
or revoked by POEA for violation  PURPOSE: (GE)
of RA 8042, PD 442 as amended 1. To guarantee compliance with
and their implementing rules prescribed recruitment
and regulations as well as the procedures, rules and
Labor Code’s implementing
regulations, and terms and
rules and regulations
5. Persons employed in the conditions of employment as
Department of Labor or in other may be appropriate;
government agencies directly 2. To ensure prompt and effective
involved in overseas employment recourse against such companies
program and their relatives when held liable for applicants
within the 4th degree of or worker’s claim (Finman
consanguinity or affinity; or General Assurance vs.
those whose license has been Innocencio; G.R.No. 90273-75;
previously canceled or revoked Nov.15,1989)
(POEA Rules & Regulations
governing the Recruitment & Cash bond filed by applicants for
Employment of Land-Based license or authority is not subject to
Overseas Workers of 2002 ). garnishment by a judgment creditor of
the agency.
 ART. 29. NON-TRANSFERABILITY OF - POEA: possesses the power to
LICENSE OR AUTHORITY enforce liability under cash or surety
bonds.
- No license or authority shall be
used directly or indirectly by any  ART. 32. FEES TO BE PAID BY
person other than the one in whose WORKERS
favor it was issued or at any place - Any person applying with a private
other than that stated in the license fee-charging employment agency for
or authority, nor may such license or employment assistance shall not be
authority be transferred, conveyed charged any fee until he has
or assigned to any other person or obtained employment though its
entity. efforts or has actually commenced
employment.
- Licensees or holders of authority or
their duly authorized representatives - Fees paid shall always be covered
may as a rule, undertake with the appropriate receipt clearly
recruitment and placement activities showing the amount paid.
only at their authorized official  POEA: has the power to:
addresses. (Under existing 1. suspend/cancel license
regulations, they may be allowed to 2. order the refund/reimbursement
conduct provincial recruitment of such fees as may have been
and/or job fairs only upon written illegally collected
authority from POEA) 3. award damages to repair the
injury caused to the victim
- Change of ownership or relationship
of single proprietorship licensed to Private Fee Charging Employment
engage in overseas employment shall Agency -any person or entity engaged in

CHAIRPERSONS
the recruitment and placement of 9. To substitute or alter

workers for a fee which is charged employment contracts approved
directly or indirectly, from the workers and verified by the DOLE from
or employers or both. the time of actual signing
thereof by the parties up to and
 ART. 34. PROHIBITED PRACTICES including the periods of
expiration of the same without
 It shall be unlawful for any individual, the approval of the Secretary of
entity, licensee, or holder of authority: Labor;
1. To charge or accept, directly or 10. To become an officer or member
indirectly, any amount greater of the Board of any corporation
than that specified in the engaged directly or indirectly in
schedule of allowable fees the management of a travel
prescribed by the Secretary of agency; and
Labor, or to make a worker pay 11. To withhold or deny travel
any amount greater than that documents from applicant
actually received by him as a workers before departure for
loan or advance; monetary or financial
2. To furnish or publish any false considerations other than those
notice or information or authorized under this Code and
document in relation to its implementing rules and
recruitment or employment; regulations.
3. To give any false notice,
testimony, information or
document or commit any act of  ART. 35. SUSPENSION AND/OR
misrepresentation for the CANCELLATION OF LICENSE OR
purpose of securing a license or AUTHORITY
authority under this Code;
4. To induce or attempt to induce a - “AUTHORITY” - document issued by
worker already employed to quit DOLE authorizing a person or
his employment in order to offer association to engage in recruitment
him another unless the transfer and placement activities as a private
is designed to liberate the recruitment entity (Art.13 f, LC)
worker from oppressive terms - “LICENSE” - a document issued by
and conditions of employment; the DOLE authorizing a person or
5. To influence or attempt to entity to operate a private
influence any person or entity employment agency.
not to employ any worker who
has not applied for employment  GROUNDS FOR REVOCATION OF
through his agency. LICENSE: (IVEE)
6. To engage in the recruitment or 1. Incurring an accumulated three
placement of jobs harmful to counts of suspension by an
public health or morality or to agency based on final and
the dignity of the Republic of executory orders within the
the Philippines; validity period of its license;
7. To obstruct inspection by the 2. Violation/s of the conditions of
Secretary of Labor or by his duly license;
authorized representatives; 3. Engaging in act/s of
8. To fail to file reports on the misrepresentation for the
status of employment, purpose of securing a license or
placement, vacancies, renewal thereof;
remittances of foreign exchange 4. Engaging in the recruitment or
earnings, separation from jobs, placement of workers to jobs
departures and such other harmful to the public health or
matters as may be required by morality or to the dignity of the
the Secretary of Labor;
LABOR LAW COMMITTEE

Basquiñez
Republic of the Philippines.  ILLEGAL RECRUITMENT - Any act of

(POEA 2000 Rules) canvassing, enlisting, contracting,
transporting, utilizing, hiring or
 GROUNDS FOR SUSPENSION/ procuring workers and includes referring
CANCELLATION OF LICENSE: contract services, promising or
1. Charging a fee before the worker advertising for employment abroad,
is employed or in excess of the whether for profit or not when
authorized amount; undertaken by a non-licensee or non-
2. Doing recruitment in places holder of authority; PROVIDED that any
outside its authorized area; such non-licensee or non-holder of
3. Deploying workers without authority who in any manner, offers or
processing through the POEA; promises for a fee employment abroad
4. Substituting or altering to two or more persons shall be deemed
employment contracts; and so engaged. It shall likewise include the
5. Publishing job announcements commission of the following prohibited
without the POEA’s prior acts whether committed by a non-
approval. (Sec.4, Rule2, Book IV, licensee or non-holder of authority or a
POEA Rules) licensee or holder of authority (Sec.6,
RA 8042):
 NON-LICENSEE OR NON-HOLDER OF a) Those prohibited practices
AUTHORITY - any person, corporation or enumerated under Art. 34;
entity which has not been issued a valid
license or authority to engage in b) Failure to actually deploy
recruitment and placement by the without valid reason as
Secretary of Labor, or whose license or determined by DOLE; and
authority has been suspended, revoked,
or cancelled by the POEA and the c) Failure to reimburse
Secretary. (PP vs. Diaz 259 SCRA 441 expenses incurred by the
(1996) worker in connection with
- The DOLE Secretary and the POEA his documentation and
Administrator exercise concurrent processing for purposes of
jurisdiction to suspend or cancel a deployment, in cases where
license. (TransAction Overseas Corp. the deployment does not
vs. Sec. of Labor. G.R.No.109583. actually take place without
Sept.5,1997) the worker’s fault.
 Recruitment and placement

CHAPTER III activities of agents or
representatives appointed by a
MISCELLANEOUS PROVISIONS licensee, whose appointments
 ART. 38. ILLEGAL RECRUITMENT (as were not previously authorized
per RA 8042 otherwise known as by the POEA shall likewise
the Migrant Workers’ Act of 1995) constitute illegal recruitment.
 QUALIFYING CIRCUMSTANCES THAT

WOULD MAKE ILLEGAL
RECRUITMENT AS AN OFFENSE
INVOLVING ECONOMIC SABOTAGE:
5.
6. When illegal recruitment is
committed by a SYNDICATE
- if it is carried out by a group of

three (3) or more persons more
persons individually or as a group, it

CHAIRPERSONS
must be understood as referring to

the number of complainants in each
 SUMMARY OF RULES ON
case who are complainants therein,
PRESCRIPTIVE PERIOD &
otherwise, prosecutions for single
PENALTY:
crimes of illegal recruitment can be
cumulated to make out a case of
large scale illegal recruitment. In ILLEGAL REGULAR ECONOMIC
other words, a conviction for large RECRUITMENT SABOTAGE
scale illegal recruitment must be
based on a finding in each case of Prescriptive 5 years 20 years
illegal recruitment of three or more Period
persons whether individually or as a
group (People vs. Sps Karl and Imprison- Prision Life imprison-
Yolanda Reichl; MAR. 7, 2002). ment mayor ment
I. When illegal recruitment is

Fine 200T- 500T-1M
committed in a LARGE SCALE
500T
· if it is committed against
three (3) or more N.B.: maximum penalty shall be
persons. imposed if the person illegally recruited
is less than 18 years of age or
These circumstances only qualify committed by a non-licensee or non-
the offense. They do not define the holder of authority.
offense themselves.
 CONSEQUENCES OF CONVICTION: TITLE II

(AFC)
EMPLOYMENT OF NON-RESIDENT
1. automatic revocation of the ALIENS
license or authority (Art39
e,LC)
 ART. 40. EMPLOYMENT PERMIT OF
2. forfeiture of the cash and NON-RESIDENT ALIENS
surety bonds(Art.39 e,LC)
- No alien seeking employment,
3. conviction for the crime of whether on resident or non-resident
estafa provided all the status, may enter the Philippines
elements of the crime are without first securing an
present (PP vs Calonzo; G .R. employment permit from the DOLE
No.115150-55; Sept.27, 1996) (Bureau of Local Employment).
- If an alien enters the country under

VENUE OF ACTIONS ON ILLEGAL
a non-working visa and wishes to be
RECRUITMENT
employed thereafter, he may only be
allowed to be employed upon
- RTC of the province or city:
presentation of a duly approved
employment permit.
1.where the offense was committed;
or
 Requirements before an alien can
2.where the offended party resides
work in the Philippines:
at the time of the commission of the
offense.
a) Work permit from DOLE - BLE
b) Working visa from Bureau of
· at the option of the complainant
Immigration
LABOR LAW COMMITTEE

Basquiñez
- Instances where there is no need

 REQUIREMENTS FOR EMPLOYMENT for employer to designate
PERMIT APPLICATION (Section 5, LC understudies:
Implementing Rules)
The application for an employment 1) elected board members in
permit shall be accompanied by the multinational companies
following: 2) artists / athletes
3) missionaries
(a) Curriculum vitae duly signed by the 4) lecturers/ instructors / trainors
applicant indicating his educational 5) foreign technicians who install
background, his work experience and equipments
other data showing that he possesses
high technical skills in his trade or UNDERSTUDY – any qualified Filipino
profession; citizen designated by a local employer to
be trained by a foreign national allowed
(b) Contract of employment between to work in the country by virtue of an
the employer and the principal employment permit granted him by the
which shall embody the following, Secretary under an approved understudy
among others; training program (Implementing Rules,
Book 1, Rule 1, Section 1[1]).
1) That the non-resident alien
worker shall comply with
all applicable laws and  ISSUANCE OF EMPLOYMENT PERMIT
rules and regulations of (Section 6, LC Implementing Rules)
the Philippines;
2) That the non-resident alien - The Secretary of Labor and

worker and the employer Employment may issue an employment
shall bind themselves to permit to the applicant based on:
train at least two (2)
Filipino understudies for a
period to be determined by a) Report of the Bureau
the Secretary of Labor and Director as to the availability
Employment; and or non-availability of any
person in the Philippines who
3) That he shall not engage in is competent, able and
any gainful employment willing to do the job for
other than that for which which the services of the
he was issued a permit. applicant are desired at the
time of application to
(c) A designation by the employer of at
perform the services for
least two (2) understudies for every alien
which the alien is desired;
worker. Such understudies must be the
most ranking regular employees in the
b) His assessment as to whether
section or department for which the
or not the employment of
expatriates are being hired.
the applicant will redound to
the national interest;
- The employer shall submit a training
program for his understudies to the
c) Admissibility of the alien as
Bureau within thirty (30) days upon
certified by the Bureau on
arrival of the alien workers.
Immigration and
Deportation;
- Purpose of understudy: to ensure
the actual transfer of technology.
d) The recommendation of the
Board of Investments or
other appropriate
government agencies if the
CHAIRPERSONS
applicant will be employed participation in the capital of

in preferred areas of such entities; (DOJ Opinion
investments or in accordance No.143)
with imperatives of
economic developments; C. OTHER PROHIBITIONS
and 1. Aliens shall not transfer to
another job or change his
e) Payment of a P100.00 fee. employer without prior approval
of the secretary of Labor.
- For an enterprise registered in 2. Non-resident alien shall not
preferred areas of investments, take up employment in violation
said employment permit may be of the provisions of the Code.
issued upon recommendation of
the government agency charged - violations of the abovementioned acts
with the supervision of said will subject the alien to the punishment
enterprise. provided in Art 289 and 290 and shall
subject the alien worker to deportation
 DURATION OF EMPLOYMENT PERMIT after service of sentence.
(Section 7, LC Implementing Rules)
- Subject to renewal upon showing
of good cause, the employment
permit shall be valid for a
BOOK TWO
minimum period of one (1) year
starting from the date of its HUMAN RESOURCES DEVELOPMENT
issuance unless sooner revoked
by the Secretary of Labor and
1. TITL
Employment for violation of any
of the provisions of the Code or EI
of these Rules. NATIONAL MANPOWER
DEVELOPMENT PROGRAM
 PROHIBITION AGAINST EMPLOYMENT
OF ALIENS
CHAPTER I
A. GENERAL RULE.
- Foreigners may not be employed in
certain nationalized business. NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
- Section 2-A of the Anti-Dummy Law THEIR IMPLEMENTATION
prohibits the employment of aliens
in entities that own or control a  ART. 43. STATEMENT OF
right, franchise, privilege, property OBJECTIVES OF NATIONAL MANPOWER
or business whose exercise or DEVELOPMENT PROGRAM
enjoyment is reserved by law only to 1. to develop human resources;
Filipinos or to corporations or 2. to establish training institutions;
associations whose capital should be and
at least 60% Filipino-owned. 3. to formulate such integrated
plans, policies, & programs that
B. EXCEPTIONS: will ensure efficient and proper
1. where the Secretary of allocation, development and
Justice specifically authorizes optimum utilization of the
the employment of technical nation's manpower, and thereby
personnel; promote employment and
2. where the aliens are elected accelerate economic and social
members of the board of growth.
directors or governing body of 7.
corporations or association in 8.  ART. 44. DEFINITIONS
proportion to their allowable
LABOR LAW COMMITTEE

Basquiñez
a. MANPOWER - that portion of the supplemented by related

nation’s population which has actual or theoretical instruction.
potential capability to contribute b. APPRENTICE - a worker who is
directly to the production of goods and covered by a written
services. apprenticeship agreement with
b. ENTREPRENEURSHIP - training for an individual employer or any of
self-employment or assisting individual the entities recognized under
or small industries within the purview this chapter.
of Title II of the Labor Code. c. APPRENTICEABLE OCCUPATION
- any trade, form of employment
TITLE II or occupation which requires
more than 3 months of practical
TRAINING AND EMPLOYMENT OF training on the job
SPECIAL WORKERS supplemented by related
theoretical instruction.
d. APPRENTICESHIP AGREEMENT -
1. CHA an employment contract wherein
PTER I the employer binds himself to
APPRENTICES train the apprentice and the
apprentice in turn accepts the
Types of Special Workers: terms of training.
1. Apprentice e. ON-THE-JOB TRAINING –
2. Learner practical work experience
3. Handicapped through actual participation in
productive activities given to or
2.  ART. 57. acquired by an apprentice.
STATEMENT OF OBJECTIVES FOR THE f. HIGHLY TECHNICAL INDUSTRIES
TRAINING & EMPLOYMENT OF SPECIAL – a trade, business, enterprise,
WORKERS industry or other activity, which
is engaged in the application of
 The promotion, development, and advanced technology.
maintenance of apprenticeship
programs shall have the following  ART. 59. QUALIFICATIONS OF
objectives: APPRENTICES
(a) To help meet the needs or 9.  Qualifications of an

demands of the economy for Apprentice:
trained manpower in the widest 1. at least 15 years of age; [provided
possible range of employment; that those who are at least 15 years
of age but less than eighteen may
(b) To establish a national be eligible for apprenticeship only
apprenticeship program through in non-hazardous occupations and
the participation of employers, the apprenticeship agreement shall
workers, government, civic and be signed in his behalf by the parent
other groups; and or guardian or authorized
(c) To establish apprenticeship representative of DOLE]
standards for the protection of 2. possess vocational aptitude and
apprentices and upgrading of capacity for appropriate tests; and
skills. 3. possess the ability to comprehend
3. and follow oral and written
4.  ART. 58. instructions
DEFINITION OF TERMS 4. The company must have an
apprenticeship program duly
a. APPRENTICESHIP - practical approved by the DOLE.
training on the job

CHAIRPERSONS
[Note: The apprenticeable age under Art. 59 LC is

14 but it is 15 under the Implementing Rules. The
 ART. 62. SIGNING OF
question of variance is rendered moot and
academic by RA 7610 which explicitly prohibits APPRENTICESHIP AGREEMENT
employment of children below 15 yrs. of age. RA
7610 recognizes certain exceptions, but being an 10.  Who shall sign the
apprentice is not one of the exceptions.]
Apprenticeship Agreement:
- Every apprenticeship agreement
 Trade and industry associations may, shall be signed by the employer or
recommend to the Secretary of Labor his duly authorized representative
and Employment appropriate and by the apprentice.
educational qualifications for - An apprenticeship agreement with a
apprentices in certain occupations. Such minor shall be signed in his behalf by
qualifications, if approved, shall be the his parent or guardian, or if the
educational requirements for latter is not available, by an
apprenticeship in such occupations authorized representative of the
unless waived by an employer in favor of DOLE.
an applicant who has demonstrated
exceptional ability.
 ART. 63. VENUE OF
APPRENTICESHIP PROGRAMS
 ART. 60. EMPLOYMENT OF
 ON-THE-JOB TRAINING OF
APPRENTICES
APPRENTICES MAY BE UNDERTAKEN IN:
(a) the plant, shop or premises of the
 Qualifications for an Employer:
employer or firm concerned if the
- Only employers in highly technical
apprenticeship program is organized
industries may employ apprentices
by an individual employer or firm;
and only in apprenticeable
(b) the premises of one or several firms
occupations as determined by the
designated for the purpose by the
Secretary of Labor.
organizer of the program if such
organizer is an association of
 REQUESITES FOR A VALID
employers, civic group and the like;
APPRENTICESHIP:
and
1. Qualifications of the apprentice
(c) DOLE Training Center or other public
2. Qualifications of the employer
training institutions with which the
3. Apprenticeship agreement duly
Bureau has made appropriate
executed and signed which shall
arrangements.
contain the ff: (art.61, LC )
a. the duration of apprenticeship
which shall not exceed 6 months  ARTS. 65-67. VIOLATION OF
b. the wage rates below the legal APPRENTICESHIP AGREEMENT
minimum wage which in no case
shall start below 75% of the  INVESTIGATION OF VIOLATION OF
applicable minimum wage in the APPRENTICESHIP AGREEMENT:
place where he is working { i.e. (Art.65,LC)
compensation which must not - Either party to an agreement may
be less than 75% of the
terminate the same after the
applicable minimum wage
except on-the-job training (OJT)
probationary period only for a valid
4. Apprenticeship program duly cause.
approved by the DOLE ( Nitto - Action may be initiated upon
Enterprises vs. NLRC. G.R.No. complaint of any interested person
114337. Sept. 29,1995) or upon DOLE’s own initiative.
[otherwise, there’s a possibility  APPEAL (Art.66,LC)
that apprentice may become a
regular employee] decision of authorized agency of DOLE
5. Period of apprenticeship shall Within 5 days fr. receipt of
not exceed 6 months decision
LABOR LAW COMMITTEE

Basquiñez
who wishes to avail himself or itself

of this incentive should pay his
Secretary of DOLE apprentices the minimum wage.
[Sec of DOLE’s decision is final & executory]
 REQUISITES FOR TAX DEDUCTIONS IN
CASE EMPLOYERS HAVE
 EXHAUSTION OF ADMINISTRATIVE APPRENTICESHIP PROGRAMS:
REMEDIES: (Art.67,LC) 1. the program must be duly recognized
- No person shall institute any action by the Department of Labor;
for the enforcement of any 2. the deduction shall not exceed 10%
apprenticeship agreement or for of direct labor wage; and
damages for breach thereof, unless 3. the employer must pay his
he has exhausted all available apprentices the minimum wage.
administrative remedies.
- The plant apprenticeship committee
shall have initial responsibility for
settling differences arising out of
apprenticeship agreements. APPRENTICESHIP LEARNERSHIP
 ART. 70. VOLUNTARY DURATION

ORGANIZATION OF APPRENTICESHIP Not less than 3 Practical training on
PROGRAM months practical the job not to
training on the job exceed 3 months.
 GENERAL RULE: The organization of but not more than
apprenticeship program shall be 6months
primarily a voluntary undertaking of CONCEPT
employers. Practical training on Hiring of persons as
the job supplemented trainees in semi-
by related theoretical skilled and other
 EXCEPTION: (Instances when instruction industrial
organization of program is compulsory): occupations which
1. when national security or are non-
particular requirements of apprenticeable and
economic development so which may be
demand; learned through
2. where services of foreign practical training on
technicians are utilized by the job in a
relatively short
private companies in
period of time.
apprenticeable trades
ER’s COMMITMENT TO HIRE
No commitment to With a commitment
 ART. 71. DEDUCTIBILITY OF hire to employ the
TRAINING COSTS learner as regular
- An additional deduction from taxable employee if he
income of ½ of the value of labor desires upon
training expenses incurred for completion of
developing the productivity and learnership
efficiency of apprentices shall be EFFECT OF PRETERMINATION
granted to the person or enterprise 1. Worker is not Learner is
organizing an apprenticeship considered an considered regular
program. Provided, that such employee employee after 2
program is duly recognized by the months of training
and dismissal is
Department of Labor: Provided, without fault of
further, that such deduction shall learner
not exceed ten percent (10%) of FOCUS OF TRAINING
direct labor wage: And provided,
finally, that the person or enterprise

CHAIRPERSONS
2. Highly skilled or Semi- on labor. The Court, thus, makes the

technical industries & skilled/industrial distinction and so holds that Section 14,
in industrial occupation (non- Rule X, Book III of the Rules is not the
occupation apprenticeable) decisive law in a CIVIL SUIT for damages
APPROVAL instituted by an injured person during a
3. Requires DOLE 4. Not required vehicular accident against a working
approval for validity student of a school and against the
EXHAUSTION OF ADM. REMEDIES IN school itself. The present case does not
CASE OF BREACH OF CONTRACT deal with a labor dispute on conditions
5. Precondition for 6. Not required of employment between an alleged
filing action
employee and an alleged employer. It
invokes a claim brought by one for
damages for injury caused by the
patently negligent acts of a person,
 ART. 72. APPRENTICES WITHOUT against both doer-employee and his
COMPENSATION employer. Hence, the reliance on the
 APPRENTICES MAY BE HIRED implementing rule on labor to disregard
WITHOUT COMPENSATION WHERE the primary liability of an employer
TRAINING ON THE JOB IS: under Article 2180 of the Civil Code is
1. required by the school; misplaced. An implementing rule on
2. required by the Training Program labor cannot be used by an employer as
Curriculum; a shield to void liability under the
3. a requisite for Graduation; or substantive provisions of the Civil Code.”
4. a requisite for Board
(Filamer Christian Institute vs. IAC;
Examination
[G.R. No. 75112; August 17, 1992.])
 LIABILITY OF A WORKING SCHOLAR

- Under this article the student is not CHAPTER II
considered an employee. But if he
causes injury or damage to a third LEARNERS
person, the school may be held
liable under the Civil Code.  ART. 73. LEARNERS DEFINED
- There is no employer-employee  LEARNERS - persons hired as trainees

relationship between students on one in semi-skilled and other industrial
hand, and schools, colleges or occupations which are non-
universities agreement between them apprenticeable and which may be
under which the former agree to work learned through practical training on the
for the latter in exchange for the job in a relatively short period of time
privilege to study free of charge, which shall not exceed 3 months.
provided the students are given real
opportunities, including such facilities as  LEARNERSHIP AGREEMENT - refers
may be reasonable and necessary to to the employment and training contract
finish their chosen courses under such entered into between the employer and
agreement. (Rule X. Sec. 14, Book III, the learner.
Implementing Rules)
7.  ART. 74.
“Section 14, Rule X, Book III of the WHEN LEARNERS MAY BE HIRED
Rules implementing the Labor Code was
promulgated by the Secretary of Labor  CONDITIONS FOR HIRING LEARNERS:
only for the purpose of administering - Learners may be employed when:
and enforcing the provisions of the Labor 1. no experienced workers
Code on conditions of employment. In are available,
other words, Rule X is merely a guide to
the enforcement of the substantive law
LABOR LAW COMMITTEE

Basquiñez
2. the employment of 10.  ART. 78.

learners being necessary DEFINITION
to prevent curtailment
of employment  HANDICAPPED WORKERS - those
opportunities, and whose earning capacity is impaired by
age or physical or mental deficiency or
3. such employment will injury, disease or illness.
not create unfair
competition in terms of - There must be a link between the
labor costs nor impair deficiency and the work which entitles
working standards. the employer to lessen the worker’s
wage.
8.  ART. 75. HANDICAPPED HANDICAPPED

CONTENTS OF LEARNERSHIP WORKER PERSON
AGREEMENT Art. 78. LC RA 7277
(Magna Carta for
 AGREEMENT SHALL INCLUDE : Disabled Persons)
Those whose Those suffering
1. The names and addresses of the earning capacity is from restriction or
employer and the learner; impaired by age or different abilities,
physical or mental as a result of a
2. The occupation to be learned deficiency or injury. mental, physical or
and the duration of the training sensory impairment,
period which shall not exceed to perform an
three (3) months; activity in the
manner or within
3. The wage of learner which shall the range
be at least 75 percent of the considered normal
applicable minimum wage; and for a human being.
4. A commitment to employ the  ART. 79. WHEN EMPLOYABLE

learner, if he so desires, as a
regular employee upon  Handicapped workers may be
completion of training. employed when:
- A learner who has worked during the 1. their employment is necessary to

first two months shall be deemed a prevent curtailment of
regular employee if training is employment opportunities
terminated by the employer before the
end of the stipulated period through no 2. it does not create unfair
fault of the learner. competition in labor costs or
impair or lower working
 ART. 76. LEARNERS IN PIECEWORK standards.
- Learners in piecework/incentive
rate jobs are to be paid in full for the - Subject to the provisions of the
work done during the training period. Code, handicapped workers may be
hired as regular workers,
apprentices or learners IF their
CHAPTER III handicap is not such as to
effectively impede the
HANDICAPPED WORKERS performance of job operations in
the particular occupations for which
9.
they were hired.

CHAIRPERSONS
 EQUAL OPPORTUNITY FOR

EMPLOYMENT ( SEC.5 RA 7277)
- No disabled person shall be denied BOOK THREE

access to opportunities for suitable
employment. Qualified disabled CONDITIONS OF EMPLOYMENT
employees shall be subject to the same
terms and conditions of employment 11. TITLE I
and the same compensation, privileges, WORKING CONDITIONS AND REST
benefits, fringe benefits, incentives or PERIODS
allowances as a qualified able-bodied
person. Even a handicapped worker can CHAPTER I
acquire the status of a regular HOURS OF WORK
employee.
 Duration of employment - no
 ART. 82. COVERAGE
minimum, no maximum duration.
Dependent on agreement but it is
necessary that there is a specific
Title I, Book III of the Labor Code dealing
duration.
with hours of work, weekly rest periods,
holidays, service incentive leaves and
 ART. 80. EMPLOYMENT AGREEMENT
service charges, covers all employees in
all establishments, whether for profit or
CONTENTS OF EMPLOYMENT
not EXCEPT the following employees:
AGREEMENT
1. Government employees
- An employer who hires a
2. Managerial employees
handicapped worker shall enter into
3. Officers and members of the
an employment agreement with the
managerial staff
latter which shall include:
4. Field personnel
5. Members of the family of the
1. The names and addresses of the
employer who are dependent
employer and the handicapped
on him for support
worker;
6. Domestic helpers
7. Persons on the personal
2. The rate of pay of the
service of another
handicapped worker which shall
8. Workers paid by result
not be less than seventy-five
(75%) percent of the legal
minimum wage;
3. The nature of work to be

performed by the handicapped
worker; and
4. The duration of the employment.
 Subject to the appropriate

provisions of this Code,
handicapped workers may be
hired as apprentices or
learners, if their handicap is not
such as to effectively impede
the performance of job
operations in the particular
occupations for which they are
hired.
LABOR LAW COMMITTEE

Basquiñez
3. power of dismissal; and

1. 4. control test
2. MANAGERIAL MANAGERIAL
EMPLOYEES EMPLOYEES  EMPLOYER - one who employs the
LABOR STANDARDS LABOR RELATIONS services of others; one for whom
Article 82 Article 212 (m) employees work and who pays their
wages or salaries.
3.
4. Used only for Used only for
purposes of Book III purposes of Book V
TYPE OF EMPLOYEE REASON WHY NOT
5. COVERED
6. those whose one who is vested GOVERNMENT – because terms and
primary duty with powers or EMPLOYEES conditions of
consists of the prerogatives to lay (including those employment are
management of the down and execute employed in GOCCs governed by Civil
establishment in management not incorporated Service Law, rules
which they are policies and /or to under the and regulations.
employed or of a hire, transfer, Corpo.Code)
department or suspend, lay-off, – because they are
subdivision thereof recall, discharge, MANAGERIAL employed by reason
and to other assign or discipline EMPLOYEES of their special
members of the employees. training, experience
managerial staff or knowledge. Value
of their work can’t
be measured in
Supervisors are does not include terms of hours.
members of the supervisors NON- – because they are
managerial staff AGRICULTURAL on their own in the
FIELD PERSONNEL field and the number
(Union of Filipino of hours of actual
Employees vs. Vivar; work they render
G.R. No. 79255; cannot be
The aforementioned employees are not January 22,1992) reasonably
entitled to: ascertained; it
× overtime pay would be grossly
× premium pay for rest days and unfair to require the
holidays employer to pay
× night shift differential pay them benefits such
× holiday pay as overtime
× service incentive leave compensation.
× service charges. MEMBERS OF THE – the amounts given
FAMILY of the by the employer by
- Importance of determining the employer who are way of support may
existence of employer-employee dependent upon him far exceed the
relationship: Labor standards and for support benefits to which
conditions apply only if there is E-E the employee is
relationship. entitled under the
provisions of the
12.  ELEMENTS OF EMPLOYER- Title.
EMPLOYEE RELATIONSHIP: (Enero vs. DOMESTIC HELPERS – terms and
NLRC; G.R. No. 120969; Jan. 22, 1998) and persons in the conditions of
1. selection and engagement of the personal service of employment are
employee; another governed by the
2. the payment of wages; provisions of Chapter
III, Title III of the
CHAIRPERSONS
present Book.
Maricel Abarentos (Over-all Chairperson), Ronald JalmanzarWorkers (Over-all
who Vice are Chair),
– theirYolanda
compensation
paid BY
Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo RESULTS,
(VC-Finance), ElaineisMasukat
based on(VC-the work
Mangundayao (Political Law), Francis Benedict Réotutar (Labor such Law),
as Romuald
those on accomplished
Padilla (Civil Law), and
Charmaine Torres (Taxation Law), Mark David Martinez (Criminal piece
Law), rates
Garny or task
Luisa not(Commercial
Alegre on the time they
basis spend in
accomplishing the
work.
 EMPLOYEE - one who works for an

employer; a person working for salary or 1. perform services in the
wages employer’s home which are
13. - shall not be limited to the usually necessary and desirable
employees of a particular employer; it for the maintenance or
shall include any individual whose work enjoyment thereof; or
has ceased as a result of or in connection
with any current labor dispute or 2. minister to the personal
because of unfair labor practice IF he comfort, convenience or safety
has not obtained any other of the employer, as well as the
1. Substantially equivalent and members of the employer’s
2. Regular employment household.
“CONTROL TEST” refers to the

employer’s power to control or right to 1.  ART. 83.
control the employee not only as to the NORMAL HOURS OF WORK
result of the work to be done but also as
to the means and methods by which the - The normal hours of work of an
same is to be accomplished. employee shall not exceed 8 hours
a day.
This last element is the most important
index of the existence of the - Health personnel in government
relationship service are excluded from the
coverage of Arts.82-96. Their work
 GOVERNMENT EMPLOYEES - refers hours, night shift differential pay,
only to employees of government and other employment benefits are
agencies, instrumentalities or political specified in RA 7305.
subdivisions and of government PURPOSES OF THE PROVISIONS
corporations that are NOT incorporated GOVERNING HOURS OF WORK:
under the Corporation Code, i.e., those 15. to safeguard the health and
which have original charters. welfare of the laborer and
16. to minimize unemployment by
 WORKERS PAID ON PIECE-RATE BASIS utilizing different shifts
- those who are paid a standard amount
for every piece or unit of work produced NOTES:
that is more or less regularly replicated, - It is not prohibited to have “normal
without regard to the time spent in hours of work” of less than
producing the same. 8hours/day. What the law regulates
is work hours exceeding eight.
 WORKERS PAID BY RESULT - those
who are paid based on the work - 8-hour labor law prescribes the
completed and not on the time spent in maximum but not the minimum.
working. Therefore, part-time work, or a
14. day’s work of less than 8 hours is not
 FIELD PERSONNEL - non-agricultural prohibited.
employees who regularly perform their
duties away from the principal place of  NORMAL HOURS OF WORK OF
business or branch office of the HEALTH PERSONNEL
employer, and whose actual hours of
work in the field cannot be determined - For health personnel in cities and
with reasonable certainty. municipalities with a population of
- They work away from direct supervision at least 1M or in hospitals and clinics
of the employer. with a bed capacity of at least 100:
DOMESTIC HELPERS/ PERSONS · regular office hours shall
RENDERING PERSONAL SERVICES - those be 8 hours a day for five
who: days a week, or 40 hours
LABOR LAW COMMITTEE

Basquiñez
a week, exclusive of 3. If the work performed was

time for meals. necessary, or it benefited the
· in case of exigencies, employer, or the employee could not
they may work for 6 days abandon his work at the end of his
or for 48 hours, but they normal working hours because he
shall be entitled to an had no replacement, all time spent
additional compensation for such work shall be considered as
of at least 30% of their hours worked if the work is with the
regular wage for work knowledge of his employer or
performed on the 6th immediate supervisor.
day.
4. The time during which an employee
17. It is possible for an employee to is inactive by reason of interruptions
work for 2 calendar days. in his work beyond his control shall
(e.g. If X’s work schedule is from 10 pm of be considered time worked either if
Monday up to 6 a.m. of Tuesday, his work the imminence of the resumption of
day covers 2 calendar days.) work requires the employee’s
presence at the place of work or if
 ART. 84. HOURS WORKED the interval is too brief to be utilized
effectively and gainfully in the
HOURS WORKED SHALL INCLUDE: employee’s own interest.
1. all time during which an employee is

required to be on duty or to be at a
prescribed workplace;  RULES ON HOURS OF WORK
2. all time during which an employee is

suffered or permitted to work; and 18. A. WAITING TIME
3. rest periods of short duration during - considered as hours worked if waiting:

working hours 1. is an integral part of his work; or
4. meal period of less than twenty(20) 2. the employee is required or

minutes, it becomes only a rest engaged by the employer to wait
period and is thus considered as
work time 1. when employee is required to
remain on call in the employer’s
PRINCIPLES IN DETERMINING HOURS premises or so close thereto that
WORKED: (Rule 1, Book II, Implementing Rules) he cannot use the time
effectively and gainfully for his
1. All hours are hours worked which the own purpose.
employee is required to give to his
employer, regardless of whether or
not such hour are spent in WORKING WHILE ON CALL
productive labor or involve physical
or mental exertion. - when employee is required to remain
on call in the employer’s premises or
2. An employee need not leave the so close thereto that he cannot use
premises of the workplace in order the time effectively and gainfully for
that his rest period shall not be his own purpose.
counted, it being enough that he
stops working, may rest completely - However, if he is not required to
and may leave his workplace, to go leave word at his home or with
elsewhere whether within or outside company officials where he may be
the premises of his workplace. reached, he is not considered
working while on call.
CHAIRPERSONS
Generally: Compensable Considered as

not and must be work time
compensable counted as when it cuts
B. PRELIMINARY & POSTLIMINARY hours worked across an
Exception: employee’s
ACTIVITIES where the workday
worker is
- compensable when: made to (because it
work on an substitutes
1. controlled or required by employer ; emergency for the hours
call and that the
travel is employee
2. are pursued necessarily and necessary in should have
primarily for the employer’s benefit proceeding been in the
to the office.
*preliminary: workplace,
before work, e.g. preparation for the time
business presentations spent on
travel is
* postliminary: compensable
after actual work, e.g. OT
N.B.: In Travel from home to work, if

same is via shuttle service sponsored by
the company, travel time is not
ENGAGED TO WAITING TO BE
C. TRAVEL TIME WAIT ENGAGED
- Summary of Rules
TRAVEL TRAVEL TRAVEL When waiting is an Idle time is not
FROM THAT IS AWAY integral part of the working time; it is
HOME TO ALL IN FROM job, the time not compensable.
WORK DAYS WORK HOME spent waiting is
compensable
Normal The time Travel that
travel from spent by an keeps an e.g. Affleck works e.g. Stiller works
home to employee in employee as a driver and his as a Partas Trans
work which is travel as part away from task is to drive a bus driver. His
not work of his home truck to Naga to route is from Vigan
time principal overnight load gravel and to Baguio, leaving
activity, like sand. While gravel at 6am and
travel from is being loaded, he arriving at 12nn.
jobsite to engaged himself in He is completely
jobsite
a mahjong session relieved from all
during the
workday and then slept. Is duty until 6pm,
the time spent when he again
playing and goes on duty for
sleeping the return trip to
compensable? Vigan. Is his idle
time working time?
Yes because he is
engaged to wait No because during
for waiting is an his idle time, he is
integral part of the specifically
job. relieved from all
duty. He is merely
waiting to be
engaged.
LABOR LAW COMMITTEE

Basquiñez
compensable because service is for the 1. Actual rendition of overtime

benefit of the employee. work
In travel away from home, if instruction 2. Submission of sufficient proof
was given by the employer to the that said work was actually
employee to go to a warehouse and to go performed
back to the main office afterwards, the
time traveled is considered as hours
worked; however, if instead of going 1.  ART. 85.
back to the office, the employee went MEAL PERIODS
home, only the travel to the warehouse 19.
is considered as hours worked. 20.  MEAL PERIODS
1. should not be less than sixty (60)
D. POWER INTERRUPTIONS minutes, and is time-off/non-
compensable.
a. 1st 20 minutes is compensable; 2. under specified cases, may be less
than sixty (60) minutes, but should
b. succeeding minutes not not be less than twenty (20) minutes
compensable and must be with full pay.
- but if despite the lapse of the 3. if less than twenty(20) minutes, it
1st 20 minutes the employees are becomes only a rest period and is
required to stay in their thus considered as work time.
workplaces, such time is
compensable. NOTE: the employee must be
completely relieved from duty.
E. SEMESTRAL BREAK OF TEACHERS Otherwise, it is compensable as hours
- compensable hours worked for it is a worked.
form of interruption beyond their - Mealtime is not compensable
control. EXCEPT in the ff. cases:
- Only for regular full-time teachers 1. where the lunch period or meal
(Univ. of Pangasinan Faculty Union time is predominantly spent for
vs. Univ. of Pangasinan; Feb. 20, the employer’s benefit or
1984) 2. where it is less than 60 minutes.
F. LECTURES, MEETINGS, TRAININGS,  SHORTENED MEAL BREAK UPON

PROGRAMS EMPLOYEES’ REQUEST
– not counted as working time if all the - Employees may request that their
following conditions are met: meal period be shortened so that
they can leave work earlier than the
a. attendance is outside of the previously established schedule.
employee’s regular working
hours; REQUISITES:
b. attendance is in fact voluntary; 1. employees voluntarily agree in
and writing to a shortened meal period
c. employee does not perform any and are willing to waive the
productive work during such overtime pay for such shortened
attendance. meal;
2. There will be no diminution
G. WORK HOURS OF SEAMEN whatsoever in the salary and other
fringe benefits of the employees
- presence on board for more than 8 existing before the affectivity of the
hours a day is required by the nature shortened meal period;
of their service. 3. The work of the employees does not
involve strenuous physical exertion
- Conditions to be satisfied before a and they are provided with adequate
seaman be entitled to overtime pay: coffee breaks;

CHAIRPERSONS
4. The value of benefits is equal to the - (10% of regular wage per hour x no. of hours
compensation due them for the of work performed between 10pm-6am)
shortened meal period; e.g. (10% x P100) x 4 hours =P40
5. Overtime pay will become due and
demandable if ever they are COMPUTATION:
permitted or made to work beyond 6am-10pm 4hrs x P100 P400
4:30 pm. 10pm-2am 4hrs x P100 400
6. The arrangement is of temporary NSD Pay 4hrs x P 10 40
duration. ( BWC-WHSD Opinion ------------
N0.197) Total wage earned P840
1.  ART. 86.
NIGHT SHIFT DIFFERENTIAL SAMPLE ILLUSTRATION NO. 2 :
 CONCEPT OF NSD Daily Wage : P800

- additional compensation of not less Work Schedule: 8:00am – 5:00 pm
than ten percent (10%) of an OT : 5:00pm – 12:00 mn
employee’s regular wage for every hour
of work done between 10:00 PM and
Step 1: get hourly wage rate
6:00 AM, whether or not such period is - Daily Wage divided by number of hours
part of the worker’s regular shift. worked
e.g. P800 / 8 hrs. = P100
- if work done between 10 PM
and 6 AM is overtime work, Step 2: compute wage between 8:00pm
then the 10% night shift -5:00 am
differential should be based on
the overtime rate. e.g. 8hrs x P100 = P800
NOT WAIVABLE – Additional
Step 3: compute OT Premium Pay
compensation for nighttime work is
between 5:00pm - 12mn
founded on PUBLIC POLICY (Mercury
Drug vs Dayao. G.R. L-30452. Sept. - [(25% x Wage per hour) + Wage per hour] x
30,1982). no.of OT hours
 FORMULA
‫([ ﻤ‬10% x regular wage per hour) x no. e.g.
of hours of work performed (25% x P100)+100 = P125
between 10pm-6am] x no.of OT hours (5pm-12mn)x 7hrs
--------
SAMPLE ILLUSTRATION NO. 1 : P875
Step 4: compute NSD
Daily Wage : P800 - (10% of OT wage per hour x no. of hours of
work performed between 10pm-6am)
Work Schedule: 6:00pm – 2:00 am
e.g. (10% x P125) x 2 hours= P24
- Daily Wage divided by number of hours COMPUTATION:
worked 8am-5pm 8hrs x P100.00 P800
e.g. P800 / 8 hrs. = P100 5pm-12mn 7hrs x P125.00 875
NSD Pay 2hrs x P 12.50 24
Step 2: compute wage between 6:00pm ------------
-2:00 am Total wage earned P1699
e.g. 8hrs x P100 = P800
Step 3: compute NSD NSD OVERTIME PAY
LABOR LAW COMMITTEE

Basquiñez
Payment for Payment for the 25. RATIONALE:

work done during excess of the regular The employee is given OT pay
the night (10:00pm-8-hr work because he is made to work longer
6am) than what is commensurate with his
agreed compensation for the
10 % of basic wage 25% or 30% of basic statutorily fixed or voluntarily
wage agreed hours of labor he is supposed
to do.
NOTE: The receipt of overtime pay will not 26.
preclude payment of night shift differential pay. 27.  WAIVER OF OVERTIME PAY:
- As a rule, no waiver of overtime pay
whether express or implied. Any
1.  ART.
contrary stipulation is null and void,
87. OVERTIME WORK
as it is intended to benefit laborers
21.
and employees.
22.  OVERTIME PAY
Exceptions:
23. additional compensation for 1. when the waiver is made in
work performed beyond eight (8) consideration of benefits and
hours within the worker’s 24-hour privileges which may be more
workday regardless whether the than what will accrue to them in
work covers 2 calendar days. overtime pay (Meralco Workers
- The employee is paid for the Union vs. Meralco; G.R.No.L-
overtime work on additional 11876; May 29,1959)
compensation equivalent to his
regular wage plus at least 25% 2. compressed workweek proposed
thereof. by employees
- Overtime work performed on a - allowable only under the
holiday or rest day shall be paid an following CONDITIONS:
additional compensation equivalent 1. It is voluntary on the part of
to the rate of the first 8 hours on a the worker;
holiday or rest day plus at least 30% 2. There will be no diminution
thereof. of the weekly or monthly
take-home pay and fringe
benefits of the employees;
3. The value of the benefits
PREMIUM PAY that will accrue to the
- is additional compensation for work employees under the
rendered by the employee on days proposed schedule is more
when normally he should not be than or at least
working such as special holidays and commensurate with the one-
weekly rest days. hour OT pay that is due them
24. during weekdays based on
 WORK DAY the employee’s
-the 24-hour period which quantification;
commences from the time the 4. The one-hour OT pay will
employee regularly starts to work; become due and payable if
e.g., if the worker starts to work 8 they are made or permitted
am today, the workday is from 8am to work on a day not
today up to 8 am tomorrow. scheduled for work on the
compressed workweek;
- The minimum normal working hours 5. The work does not involve
fixed by law need not be continuous to strenuous physical exertion
constitute the legal working day, so long
as it is within the work day.
CHAIRPERSONS
and employees must have - Express instruction from the

adequate rest periods; and employer to render overtime
6. The arrangement is of work is not required for the
temporary duration. employee to be entitled to
overtime pay. It is sufficient that
 FACTUAL & LEGAL BASIS FOR CLAIM the employee is permitted or
suffered to work.
- As a Rule: Express instruction
from the employer to the  ILLUSTRATION :
employee to render overtime 31.
work is not required for the 32. REGULAR WORKDAYS
employee to be entitled to Regular basic wage + 25% of regular basic
overtime pay. wage
Daily Wage : P 800
N.B.: Meal periods during overtime Work Schedule: 8:00am – 5:00 pm
work is not given to workers (inclusive of 1 hour
performing overtime for the reason that meal break)
OT work is usually for a short period OT 5:00pm – 10:00 pm
ranging from one to three hours and to
deduct from the same one full hour as
meal period would reduce to nothing the Step 1. Get hourly wage rate
employee’s OT work. - Daily Basic Wage divided by number of
hours worked
28.  BASIS OF OT: e.g. P800 / 8 hrs. = P100
- Regular Basic Wage : includes
cash wage only, without any Step 2: compute wage between 8:00am
deduction on account of -5:00 pm
facilities provided by the e.g. 8hrs x P100 = P800
employer (Art.90,LC)
29. Step 3: compute OT Premium Pay
30.  RULES: between 5:00 pm– 10pm
- [(25% x Wage per hour) + Wage per hour] x
- Work performed beyond 8 hours a no.of OT hours
day must be paid an additional e.g. (25% x P100)+100 = P125
compensation equivalent to the x no.of OT hours (5pm-10pm)= 5hrs
employee’s regular wage plus at ------------
least 25% thereof.
P625
COMPUTATION:
- Work performed beyond 8 hours
Daily Wage : P 800 8am-5pm 8hrs x P100.00 P800
5pm-10pm 5hrs x P125.00 625
Work Schedule: 8:00am – 5:00 pm ------------
(inclusive of 1 hour Total Take Home Pay P1,425
meal break)
OT : June 12
(Independence day) 33. LEGAL OR REGULAR HOLIDAYS
5:00pm – 10:00 pm Holiday wage rate + 30% of holiday rate
(200%)
on a holiday or rest day shall be
paid an additional compensation Step 1: get hourly wage rate
equivalent to the rate for the first - Daily Basic Wage divided by number of
8 hours on a holiday or rest day hours worked multiplied by regular holiday
plus 30% thereof. wage rate
e.g. (P800 / 8 hrs.) x 200% = P200
LABOR LAW COMMITTEE

Basquiñez
Step 2: compute wage between 8:00pm ------------

-5:00 pm using holiday wage rate Total Take Home Pay P1,885
e.g. 8hrs x P200 = P1600
Step 3: compute OT Premium Pay 35. SCHEDULED REST DAY WHICH IS

between 5:00 pm– 10pm ALSO A SPECIAL HOLIDAY
- [(30% x Wage per hour) + Wage per hour] x
no.of OT hours
e.g. (30 % x P200)+200 = P 260 Rest day & special holiday wage rate +
x no.of OT hours (5pm-10pm) = 5hrs 30% of rest day & special holiday wage
rate (150%)
------------
P1300
COMPUTATION:
Daily Wage : P 800
8am-5pm 8hrs x P200.00 P 1600 Work Schedule: 8:00am – 5:00 pm
5pm-10pm 5hrs x P260.00 1300 (inclusive of 1 hour
------------ meal break)
OT June 6
Total Take Home Pay P2,900 ( Araw ng Caloocan -
special holiday coinciding
w/ employee’s scheduled
34. REST DAYS OR SPECIAL rest day)
HOLIDAYS 5:00pm – 10:00 pm
Rest day or special holiday wage rate +
30% of rest day or special holiday wage
rate (130%) Step 1: get hourly wage rate
- Daily Basic Wage divided by number of
hours worked multiplied by rest day & special
Daily Wage : P 800 holiday wage rate
Work Schedule: 8:00am – 5:00 pm e.g. (P800 / 8 hrs) x 150% = P150
(inclusive of 1 hour
meal break) Step 2: compute wage between 8:00am
OT : June 24 -5:00 pm using special holiday wage
( Q.C. day - special holiday) rate
5:00pm – 10:00 pm e.g. 8hrs x P150 = P1200
Step 3: compute OT Premium Pay
Step 1: get hourly wage rate between 5:00 pm– 10pm
- Daily Basic Wage divided by number of - [(30% x HWage per hour) + HWage per hour]
hours worked multiplied by special holiday x no. of OT hours
wage rate e.g. (30 % x P150)+150 = P 195
e.g. (P800 / 8 hrs) x 130% = P130 x no. of OT hours (5pm-10pm)= 5hrs
Step 2: compute wage between 8:00am ------------
-5:00 pm using special holiday wage P 975
rate COMPUTATION:
e.g. 8hrs x P130 = P1040 8am-5pm 8hrs x P150.00 P 1200
5pm-10pm 5hrs x P195.00 975
Step 3: compute OT Premium Pay ------------
between 5:00 pm– 10pm Total Take Home Pay P2,175
- [(30% x HWage per hour) + HWage per hour]
x no.of OT hours
e.g. (30 % x P130)+130 = P 169
36. DOUBLE HOLIDAY
x no.of OT hours (5pm-10pm) = 5hrs
------------ Double holiday wage rate + 30% of
P 845 Double holiday wage rate (300%)
COMPUTATION: Daily Wage : P 800
8:00am – 5:00 pm
Work Schedule:
8am-5pm 8hrs x P130.00 P 1040 (inclusive of 1 hour
5pm-10pm 5hrs x P169.00 845 meal break)
CHAIRPERSONS
OT : April 9
(Araw ng Kagitingan &
at the same time Good 39.  ART. 89. EMERGENCY
Friday)
OVERTIME WORK
5:00pm – 10:00 pm
1.
2. GENERAL
- Daily Basic Wage divided by number of
RULE :
hours worked multiplied by rest day & special 3. - Generally,
holiday wage rate employers can not compel his workers
e.g. (P800 / 8 hrs) x 300% = P300 to render overtime work against his will.
Step 2: compute wage between 8:00am EXCEPTION:

-5:00 pm using special holiday wage rate - Any employee may be required by
e.g. 8 hrs x P300 = P2400 the employer to perform overtime
work in any of the following cases:
Step 3: compute OT Premium Pay 1. When the country is at war or
between 5:00 pm– 10pm when any national or local
- [(30% x HWage per hour) + HWage per hour] emergency has been declared by
x no. of OT hours the National Assembly or the
e.g. (30 % x P300)+300 = P 390 Chief Executive;
x no. of OT hours (5pm-10pm) = 2. When it is necessary to prevent
5hrs loss of life or property or in case
------------ of imminent danger to public
P 1950 safety due to an actual or
impending emergency in the
COMPUTATION: locality caused by serious
8am-5pm 8hrs x P300.00 P 2400 accidents, fire, flood, typhoon,
5pm-10pm 5hrs x P390.00 1950 earthquake, epidemic, or other
------------ disaster or calamity;
Total Take Home Pay P4,350 3. When there is urgent work to be
performed on machines,
installations, or equipment, in
order to avoid serious loss or
 ART. 88. UNDERTIME NOT OFFSET damage to the employer or some
BY OVERTIME other cause of similar nature;
1. RULE : 4. When work is necessary to
prevent loss or damage to
37. Undertime work on any perishable goods;
particular day shall not be offset by 5. Where the completion or
overtime work on any other day. continuation of the work started
before the eight hour is
38. Permission given to the necessary to
employee to go on leave on some other prevent serious obstruction or
day of the week shall not exempt the prejudice to the business or
employer from paying the additional operations of the employer; and
compensation. 6. When it is necessary to avail of
favorable weather or
1.  environmental conditions where
RATIONALE performance or quality of work
is dependent thereon.
- An employee’s regular pay rate is 40.
lower than the overtime rate. Offsetting · in any of the foregoing cases,
the undertime hours against the the employer may require the employee
overtime hours would result in undue to render OT work provided that the OT
deprivation of the employee’s extra pay work is paid the additional compensation
for overtime work. required.
LABOR LAW COMMITTEE

Basquiñez
of not less than twenty four (24)

41.  ART. 90. COMPUTATION OF consecutive hours after every six (6)
ADDITIONAL COMPENSATION consecutive normal work days to his
employees.
- For purposes of computing
overtime and other additional EXCEPTION: (UPANAC)
remunerations. - The employer may require his
employees to work on any day even on a
- REGULAR WAGE shall include rest day:
cash wage only, without deduction on 1. In cases of urgent work to be
account of facilities provided by performed on the machinery,
the employer. equipment, or installation, to
1. avoid serious loss which the
employer would otherwise
2. CHA suffer;
2. To prevent loss or damage to
PTER II
perishable goods;
3. In case of actual or impending
WEEKLY REST PERIOD emergencies caused by serious
accident, fire, flood, typhoon,
 ART. 91. RIGHT TO A WEEKLY REST earthquake, epidemic, or other
DAY disaster or calamity to prevent
loss of life and property, or
 CONCEPT OF REST DAY imminent danger to public
safety;
- Employees should be provided a Where the nature of the work
rest period of not less than twenty four requires continuous operations
(24) consecutive hours after every six and the stoppage of work may
(6) consecutive normal work days. result in irreparable injury or
- Weekly Rest period is within the loss to the employer; and
purview of employer’s prerogative.
4. In the event of abnormal
pressure of work due to special
The employer shall schedule the weekly circumstances, where the
rest day of his employees subject to employer cannot ordinarily be
collective bargaining agreement. expected to resort to other
However, the employer shall respect the measures;
preference of employees as to their 5. Under other circumstances
weekly rest day when such preference analogous to the foregoing as
is based on religious grounds. But determined by the Secretary of
when such preference will prejudice the Labor.
operations of the undertaking and the
employer cannot normally result to other
remedial measures, the employer may so  ART. 93. COMPENSATION FOR REST
schedule the weekly rest day that meets DAY, SUNDAY OR HOLIDAY WORK
the employee’s choice for at least two
(2) days a month. - this article does not prohibit a
stipulation in the CBA for higher
 ART. 92. WHEN EMPLOYER MAY benefits
REQUIRE WORK ON A REST DAY
42.  SPECIAL HOLIDAYS
 GENERAL RULE: - List of Special Holidays
- It shall be the duty of every National;

employer, whether operating for 1. All Saint’s Day- November 1
profit or not to provide a rest period
CHAIRPERSONS
2. Last Day of the Year- No regular workdays 30% of regular wage

December 31 and rest days for work on Sundays
3. And all other days declared by & Holidays
law Work on Special 30% of regular wage
Holidays
Local:
Those declared by law or Holiday Work falls on 50% of regular wage
ordinance (e.g. Makati Day for Makati Scheduled Rest Day
City only)
 When entitled to premium pay:

CHAPTER III
· If worked = regular wage plus
30% premium pay HOLIDAYS, SERVICE INCENTIVE
· If not worked = no LEAVES AND SERVICE CHARGES
compensation/no premium
1.  ART. 94.
43. 45. RIGHT TO HOLIDAY PAY
44. REGULAR SPECIAL HOLIDAY 56.
HOLIDAY 57.  HOLIDAY PAY
58.
46. 48. 59. Also termed as legal holiday
47. compensa 49. Not
ble even if compensable if 60. A day’s pay given by law to an
unworked subject unworked employee even if he does not work on a
to certain regular holiday. It is limited to the
conditions eleven (11) regular holidays listed by
law. The employee should not have
50. 52. been absent without pay on the
51. limited to 53. Not exclusive working day preceding the regular
the 10 since a law or holiday.
enumerated by ordinance may provide
the Labor Code for other special 61.  PREMIUM PAY
holidays
54. 62. additional compensation for
55. rate is Rate is 130% of the work performed on a scheduled rest
twice the regular regular wage if worked day or holiday
rate if worked
ADDITIONAL COMPENSATION
63. REGULAR HOLIDAYS [NM-GALIN-
FOR WORK ON A REST DAY, CREB]:
SUNDAY OR HOLIDAY:
1. New Year’s Day - January 1
DAY RATE OF 2. Maundy Thursday - Movable date
ADDITIONAL 3. Good Friday - Movable date
COMPENSATION 4. Araw ng Kagitingan - April 9
Work on a scheduled 30% of regular wage 5. Labor Day - May 1
rest day 6. Independence Day - June 12
LABOR LAW COMMITTEE

Basquiñez
7. National Heroes Day - Last present the day before the scheduled
Sunday of August regular holiday to be entitled to
8. Bonifacio Day - November 30 compensation to both; otherwise, he
9. Christmas Day - December 25 must work on the first holiday to be
10. Rizal Day - December 30 entitled to holiday pay on the second
11. Eid’l Fitr – movable date (RA regular holiday. (Sec.10, Rule IV,
9177. Nov.13,2002) Book III, Implementing Rules) (see
N.B.: There must be no distinction
table below)
between Muslims and non-Muslims as ENTITLED
regards payment of benefits for Muslim TO BE
Holidays; wages and other emoluments WED THURS FRI
PAID ?
are laid down by law and not based on
faith or religion (SMC v. CA). REGULAR
Present REST DAY YES
HOLIDAY
RULE ON COMPENSABILITY Absent REGULAR
with pay
REST DAY YES
HOLIDAY
Absent
- compensable whether worked or REGULAR
w/out REST DAY NO
unworked subject to certain pay HOLIDAY
conditions Present SPECIAL YES
- Legal holiday falling on a Sunday DAY
does not create an additional Absent SPECIAL YES
workday nor create a legal with pay DAY
obligation for the employer to Absent SPECIAL NO
pay extra, aside from the usual w/out DAY
holiday pay to its monthly paid pay
employees.
64.
B. Successive holiday rule:
65.  DOUBLE HOLIDAY PAY
MAUNDY GOOD ENTITLED
WED THURS FRIDAY TO BE
1. 200% of the basic wage
PAID?
- entitled even if said holiday is
unworked Present REGULAR REGULAR YES –
- to give employee only 100%
HOLIDAY HOLIDAY BOTH
would reduce the number of
holidays under DO No. 3. Absent REGULAR REGULAR YES –
with pay HOLIDAY HOLIDAY BOTH
2. 300% if he worked on 2 regular
holidays falling on the same day,
- e.g., April 9 and Good Friday Absent REGULAR REGULAR NO – BOTH
66. w/out pay HOLIDAY HOLIDAY
67.  ILLUSTRATION :
YES – but
A Single holiday rule:
Absent only to the
- provided that the employee w/out pay Worked holiday
1. worked
pay on
2. was on leave with pay or
Friday
3. was on authorized
absence on the day prior
to the regular holiday.
68.  ART. 95. RIGHT TO SERVICE
INCENTIVE LEAVE
69.  SUCCESSIVE REGULAR
HOLIDAY
 CONCEPT OF SERVICE INCENTIVE
- If there are two successive regular
LEAVE (SIL)
holidays, e.g., Maundy Thursday and
Good Friday, the employee must be
CHAIRPERSONS
- five (5) days leave with pay for ONE (1) YEAR OF SERVICE - service
every employee who has rendered at within 12 months, whether continuous or
least one (1) year of service. broken, reckoned from the date the
employee started working including
SIL DOES NOT APPLY TO THOSE WHO authorized absences and paid regular
ARE: (E4) holidays unless the number of working
days in the establishment, as a matter of
70. already enjoying the said practice or policy or as provided in the
benefits; employment contract, is less than 12
71. already enjoying vacation leave months.
with pay for at least 5 days;
72. employed in establishments SIL is commutable, i.e., convertible to
regularly employing less than 10 cash the cash equivalent is aimed
employees; and primarily at encouraging workers to work
continuously and with dedication to the
73. employed in establishments company.
exempted from granting this benefit
- Part-time workers are entitled to the
by the Secretary of Labor.
full benefit of the yearly 5-days SIL.
The reason is that the provisions of
SIL VACATION/ Art.95 speak of the number of
SICK LEAVE months in a year for entitlement to
said benefit.
Mandatory Voluntary 74.  VACATION AND SICK LEAVE

-legally required - grant results from:
under Art.95,LC - employer’s - Not statutorily required; matter of
discretionary management discretion or a product
- policy or from CBA of collective bargaining agreement.
Intended to Intended to afford a
alleviate the laborer a
- Benefits are non-cumulative and
economic chance to get a much non-commutative; must be enjoyed
condition of the needed by the employee within 1 year
workers for it rest to replenish his worn otherwise they are considered
acts out waived or forfeited. Exception is
as replacement energies and acquire new when the labor contract or the
for regular vitality to enable him to established practice of the employer
income that meet provides otherwise.
would not be him to efficiently perform
earned during his
such instance duties and not merely to
No employer shall discriminate against
give any solo parent employee with respect
him additional salary to terms and conditions of employment
on account of his/her status. (Sec. 7,
Can not be Must be demanded in its Solo Parents Law)
waived opportune time,
otherwise, In addition to leave privileges under
silence would equate to existing laws, parental leave of not more
waiver than seven (7) working days every year
same being a mere
shall be granted to any solo parent
concession
or act of grace of employee who has rendered service of at
employer least 1 year. (Sec. 8, Solo Parents Law)
75.  MATERNITY AND PATERNITY
Commutable Not Commutable
LEAVE
1. (see
discussion in Art. 133 )
LABOR LAW COMMITTEE

Basquiñez
2.  ART. 96. WAGES

SERVICE CHARGES
CHAPTER I
 CONCEPT.
- All service charges collected by PRELIMINARY MATTERS
hotels, restaurants and similar
establishment shall be distributed: 3.  ART.
1. 85% for all covered 97. DEFINITION
employees to be equally
distributed among them  AGRICULTURE – includes farming in
all its branches, and, among other
2. 15% for management things, includes the cultivation and
tillage of soil, dairying, the production,
- Share of the employees shall be cultivation, growing and harvesting of
equally distributed among them. any agricultural and horticultural
commodities, the raising of livestock or
· The shares referred to poultry, and any practices performed by
herein shall be distributed a farmer on a farm as an incident to or
and paid to employees not in conjunction with such farming
less than once every 2 weeks operations, but does not include the
or twice a month at intervals manufacturing or processing of sugar,
not exceeding 16 days. coconuts, abaca, tobacco, pineapples or
other farm products.
The 15% management share shall be for
disposition by management to answer for  WAGE - the remuneration or earnings,
losses and breakages and distribution to however designated, capable of being
employees receiving more than expressed in terms of money, whether
P2,000.00 a month at the discretion of fixed or ascertained on a time, task,
the management in the latter case. piece, or commission basis or other
method or calculating the same, which is
payable by an employer to an employee
- In case the service charge is under a written or unwritten contract of
abolished, the share of the covered employment for work done or to be done
employees shall be considered or for services rendered or to be
integrated in their wages. rendered and includes the fair and
reasonable value, as determined by the
· The basis of the amount to Sec. of Labor, of board, lodging, or
be integrated shall be the other facilities customarily furnished by
average share of each the employer to the employee.
employee for the past 12
months immediately  FAIR AND REASONABLE VALUE - shall
preceding the abolition or not include any profit to the employer or
withdrawal of such charges. to any person affiliated with the
employer.
 COVERAGE
- Apply only to hotels, restaurants and  FAIR DAY’S WAGE FOR A FAIR
similar establishment collecting service DAY’S LABOR - if there is no work
charges performed by the employee, there
can be no wage or pay unless the
 POOLED TIPS laborer was able, willing, and ready
- Monitored, accounted for, and to work but was prevented by
distributed in the same manner as management or was illegally locked
service charges
out, suspended or dismissed.
TITLE II

CHAIRPERSONS
WAGE SALARY employees who have rendered

Compensation for Corresponds to satisfactory and efficient service
manual labor higher degree of to the company.
employment
FACILITIES SUPPLEMENTS
 WHAT DOES WAGE OR SALARY - items of expense - constitute extra
INCLUDE? necessary for the remuneration or special
1. Commission laborer’s and his privileges or benefits
2. Facilities family’s existence given to or received by
3. Commodities/Supplements and subsistence the laborers over and
above their ordinary
THEY ARE DEEMED INCLUDED IN THE earnings wages
SALARY IF THE FF CONDITIONS
Part of the wage Independent of the wage
CONCUR:
The grant thereof is:
- Unconditional Deductible from the not wage deductible
- Consistent and deliberate over a period wage
of time
- Customarily given such that the 4.  ART. 98.
employee expects to receive the same APPLICATION OF TITLE
(Mabeza vs. NLRC; G.R. No.118506;
Apr.18,1997) Title on Wages apply to ALL
EMPLOYEES except the following:
1. farm tenancy or leasehold
COMMISSION – direct remunerations
2. household or domestic helpers
received by an agent, salesman,
3. homeworkers engaged in needle-
executor,
work
broker, or trustee calculated as a
4. workers employed in any
percentage on the amount of his
establishment duly registered with
transactions or on the profit to the
the National Cottage Industry
principal.
Development Authority (NACIDA)
5. workers in duly registered
FACILITIES – shall include all articles or cooperatives
services for the benefit of the employee
or his family but shall not include tools 2.  ART 99. REGIONAL
of the trade or articles or services MINIMUM WAGES
primarily for the benefit of the employer
or necessary to the conduct of the - minimum wage rates for agricultural
employer’s business. and nonagricultural employees and
workers in each and every region of the
country shall be those prescribed by the
 LEGAL REQUIREMENTS BEFORE Regional Tripartite Wages and
FACILITIES CAN BE DEDUCTED FROM Productivity Boards.
THE EMPLOYEES’ WAGES:
1. Proof must be shown that such  MINIMUM WAGE - lowest wage rate
facilities are customarily furnished fixed by law that an employer can pay
by the trade; his employees.
2. The provision of deductible - The employer cannot exempt
facilities must be voluntarily himself from liability to pay
accepted in writing by the minimum wages because of poor
employee; and financial condition of the company;
3. The facilities must be charged at the payment of minimum wages is
fair and reasonable value. not dependent on the employer’s
ability to pay. (De Racho v.
 GRATUITY – something given freely
or without recompense to reward
LABOR LAW COMMITTEE

Basquiñez
Municipality of Iligan, GR NO. L-  BONUS - A supplement or

23542). employment benefit given under certain
conditions, such as success of the
- The acceptance by an employee of the business or greater production or output.
wages paid him without objection does
not give rise to estoppel precluding him 78. As a rule, it is an amount
from suing for the difference between granted voluntarily to an
the amount received and the amount he employee for his industry and
should have received pursuant to a valid loyalty which contributed to the
minimum wage law where it does not success and realization of profits
appear that the employer changed his of the employer’s business.
position to his own prejudice.
79. Therefore, from a legal point of
CHAPTER II view, it is not a demandable and
MINIMUM WAGE RATES enforceable obligation unless it
was promised to be given
 ART. 100. PROHIBITION AGAINST without any conditions imposed
ELIMINATION OR DIMINUTION OF for its payment in which case it
BENEFITS is deemed part of the wage.
76. THE NON-DIMINUTION RULE An employee who has resigned or

- Nothing in the Labor Code shall be whose services were terminated at any
construed to eliminate or in any way time before the payment of the 13 th
diminish supplements, or other month pay is entitled to this monetary
employee benefits being enjoyed at benefit in proportion to the length o
the time of promulgation of this time he worked during the year
Code. reckoned from the time of his
resignation or termination from service.
· benefits being given to
employees cannot be taken  13TH MONTH PAY (OR “ITS
back or reduced unilaterally by EQUIVALENT”)
the employer because the
benefit has become part of the (see annex)
employment contract, written - additional income based on wage
or unwritten. required by P.D. 851 which is
77. equivalent to 1/12 of the total basic
- The rule is applicable if it is shown salary earned by an employee within
that the grant of the benefit is: a calendar year.
- may be given anytime but not later
1. based on an express than Dec. 24.
policy, or
COVERAGE:
2. has ripened into practice
over a long period of time, and - All rank-and-file employees regardless
the practice is consistent and of their designation or employment
deliberate, and it is not due to status and irrespective of the method by
an error in the which their wages are paid, are entitled
construction/application of a to this benefit, provided, that they have
doubtful or difficult question worked for at least one (1) month
of law. during the calendar year.
- But even in cases of error, it should FORMS:

be shown that the correction is being 1. Christmas bonus
done soon after the discovery of the 2. midyear bonus
error. 3. profit sharing payments; and

CHAIRPERSONS
4. other cash bonuses amounting to not  CATEGORIES OF PIECE – RATE

less than 1/12 of its basic salary. WORKERS (as to presence of control):
1. those who work directly under the
- It must always be in the form of supervision of their employer
legal tender (usually termed as piece rate
- Difference of opinion on how to worker)
compute the 13th month pay does not 2. those who work away from the
justify a strike. employer’s work premises and are
not directly supervised by the
employer (usually termed as pakiaw
Free rice, electricity cash and stock or takay)
dividends, COLA are NOT proper
substitutes for the 13th month pay. CATEGORIES OF PIECE RATE (as to
th
Note: 13 Month Pay is tax exempt. rate of payment)
 14TH MONTH PAY 1. those who are paid piece rates as

- a misnomer because it is prescribed in Piece Rate Orders by
basically a bonus and gratuitous the DOLE
in character 2. those who are paid output rates
- granting thereof is a which are prescribed by the
management prerogative which employer and are not yet approved
can not be forced upon the by the DOLE
employer.
 WORKERS PAID ON PIECE-RATE BASIS
 PRODUCTIVITY INCENTIVES
- those who are paid a standard amount
80. Productivity Incentives Act of for every piece or unit of work produced
1990 that is more or less regularly replicated,
(RA 6971, November 22, 1990) without regard to the time spent in
producing the same.
81. kind of bonus that comes from
productivity gain  BENEFITS PAYABLE TO PIECE-RATE
82. aims to institute productivity at WORKERS WHOSE WORK IS DIRECTLY
company level and the sharing of SUPERVISED BY THE EMPLOYER:
productivity gain between employers
and employees 1. Applicable statutory minimum daily
83. nature of salary bonus is rate
proportionate to increases in current 2. Yearly service incentive leave of five
productivity days with pay
- employees whose positions are 3. Night shift differential pay
reclassified from rank and file to 4. Holiday pay
supervisory lose overtime pay 5. Meal and rest periods
and other benefits under Arts. 6. Overtime pay (conditional)
82-96. Promotion produces the 7. Premium pay (conditional)
same effect. But the promotion 8. 13th month pay
and position reclassification 9. Other benefits granted by law,
must be done in good faith. The individual or collective bargaining
personnel movement should not agreements or company policy or
be intended to circumvent the practice.
law to deprive employees of the
benefits they used to receive. - The rules implementing the Labor Code
on night differential and service
1.  ART. incentive leave do not apply to
101. PAYMENT BY RESULTS employees whose time and performance
is unsupervised by the employers,
LABOR LAW COMMITTEE

Basquiñez
including those who are engaged on task from the bank which time shall
or contract basis, purely commission or be considered as compensable
those who are paid a fixed amount for hours worked if done during
performing work irrespective of the time working hours; and
d) the payment by check is with
consumed in the performance thereof. the written consent of the
employees concerned if there is
CHAPTER III no CBA authorizing the
payment of wages by bank
1. PAY checks.
MENT OF WAGES
1.  ART.
2.  ART. 103. TIME OF PAYMENT
102. FORMS OF PAYMENT
84.
85.  WHEN TO PAY:
 EMPLOYER CANNOT PAY HIS
- at least once every two weeks; or
WORKERS BY MEANS OF:
- twice a month at intervals not
exceeding 16 days.
1. promissory notes;
2. vouchers;
· in case of force majeure or
3. coupons;
other circumstances beyond
4. tokens;
the employer’s control,
5. tickets;
payment must be made
6. chits; or
immediately after such
7. any object other than legal tender
occurrence has ceased.
GENERAL RULE:
- payment by legal tender · If engaged to perform a task
which cannot be completed
EXCEPTIONS: in 2 weeks and in the
- payment by check or money order absence of CBA:
may be allowed if the same is:
a) payment shall be made
1. customary on the date of at intervals not
effectivity of the LC; exceeding 16 days, in
proportion to the
2. necessary because of special amount of work
circumstances as determined by completed;
the Sec. of Labor; or
b) that final settlement is
3. stipulated in the CBA made upon completion
of the work.
4. or where the ff conditions are 1.
met: 2.  ART.
104. PLACE OF PAYMENT
a) there is a bank or other facility
for encashment within a radius  WHERE TO PAY:
of 1 kilometer from the - at or near the place of undertaking
workplace;
b) the employer, or any of his EXCEPTIONS (Payment in a place other
agent or representatives, does than workplace):
not receive any pecuniary 1. When payment cannot be
benefit directly or indirectly effected at or near the place of
from the arrangement;
c) the employees are given
work by reason of deterioration
reasonable time during banking of peace and order conditions,
hours to withdraw their wages or by reason of actual or

CHAIRPERSONS
impending emergencies caused - when authorized under existing law,

by fire flood or other calamity including payments for insurance
rendering payment thereat premiums of the employee and union
impossible; dues where the right to check-off
has been recognized by the employer
2. When the employer provides for in accordance with a CBA or
free transportation to the authorized in writing by the
employees back and forth; and individual employees concerned
3. Under any other analogous -
circumstances. 2. payment through heirs of worker
- in case where the worker has died –
- No employer shall pay his employer may pay wages of the
employees in any bar, night or day club, deceased worker to the heirs of the
drinking establishment, massage clinic, latter without the necessity of
dance hall, or other similar places or in intestate proceedings.
places where games are played with
stakes of money or things representing Procedure:
money except in the case of persons
employed in said places. 2.1 claimants shall execute an
affidavit attesting their
 PAYMENT THRU BANKS: relationship to the deceased
and the fact that they are
REQUISITES: his heirs, to the exclusion of
all others;
1. There must be written 2.2 in case of a minor heir,
permission of the majority of the affidavit shall be executed
employees concerned in an on his behalf by his natural
establishment; guardian or next of kin;
2.3 affidavit shall be presented
2. The establishment must have 25 to the employer who shall
or more employees; and make payment through the
Secretary of Labor or his
3. The establishment must be representative;
located within one kilometer 2.4 the representative shall act
radius to the bank. as referee in dividing the
amount paid among the
· payment through an ATM is heirs;
allowed. 2.5 payment of wages under this
article shall absolve the
employer of any further
2.  ART.105. liability with respect to the
DIRECT PAYMENT OF WAGES amount paid.
 GENERAL RULE: 3. payment through member of

- wages shall be paid directly to the worker’s family
workers to whom they are due.
- Where the employer is authorized in
 EXCEPTIONS: writing by the employee to pay his
wages to a member of his family.
1. payment through another person
- in case of force majeure rendering
such payment impossible provided  SUMMARY OF RULES ON PAYMENT
said person is under written OF WAGES:
authority given by the worker for the
purpose;
LABOR LAW COMMITTEE

Basquiñez
 LABOR ONLY CONTRACTING - where

WHAT Legal tender; promissory notes, the person supplying workers to an
MUST BE vouchers, coupons, tokens, tickets, employer does not have substantial
PAID chits, or any other object other than capital or investment in the form of
legal tender is prohibited.
tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
WHEN Once every two weeks or twice a performing activities which are directly
month at intervals not exceeding
related to the principal business of such
16 days.
employer.
Labor-only contracting is prohibited and
WHERE At or near the place of undertaking the person acting as contractor shall be
considered merely as an agent of the
employer who shall be responsible to
HOW Directly to the employee entitled the workers in the same manner and
thereto extent as if the latter were directly
employed by him.
 JOB CONTRACTING – an arrangement

JOB LABOR ONLY whereby a principal agrees to put out or
CONTRACTING CONTRACTING farm out with a contractor or series of
contractor the performance or
completion of a specific job, work or
No E- E Employer is treated as direct service within a definite or
relationship employer of the person predetermined period, regardless of
except when the recruited in all instances whether such job, work, or service is to
contractor or (contractor is deemed agent
subcontractor of the employer)
be performed or completed within or
fails to pay the outside the premises of the principal.
EE’s wages
 INDEPENDENT CONTRACTOR - one
Liability is limited liability extends to all rights who carries on a distinct and
(shall be duties and liabilities under independent business and undertakes to
solidarily liable labor standards laws including perform the job or to do a piece of work
w/ ER only when the right to self- organization on its own account and under its own
latter fails to responsibility, according to his own
comply with
manner and methods and free from the
requirements as
to unpaid wages control and direction of the principal in
and other labor all matters connected with the
standards performance of the work except as to
violations) the results thereof.
Permissible Prohibited by law - A mere statement in a contract

with a company that laborers who
Presence of Absence of substantial capital are paid according to the amount
substantial capital or investment. and quality of work are independent
or investment. contractors does not change their
status as mere employees in
 ART. 106. CONTRACTOR OR contemplation of labor laws.
SUBCONTRACTOR
 ELEMENTS OF JOB CONTRACTING:
 TWO TYPES OF CONTRACTORS
UNDER THE LAW: 1. the contractor or subcontractor
a) Labor-only contractor carries on a distinct and independent
b) Job contractor business and undertakes to perform
the job on his own account and
under his own responsibility,
CHAIRPERSONS
according to its own manner and 86.  WORKING CONDITIONS -

method and free from the control refers to the terms and circumstances
and direction of the principal in all affecting the employment of an
matters connected with the employee, including policies, programs
performance of the work except as and regulations governing his
to the results thereof; employment status, work, and work
2. the contractor or subcontractor has relationships. They are, as a rule,
substantial capital or investment; determined by the employer.
and
3. the agreement between the

principal and contractor or
subcontractor assures the
contractual employees entitlement  ART. 110. WORKER PREFERENCE IN
to all labor and occupational safety CASE OF BANKRUPTCY
and health standards, free exercise
of the right to self-organization,  PRINCIPLE:
security of tenure and social and - Workers shall enjoy first preference as
welfare benefits regards their unpaid wages and other
monetary claims, any provision of law to
the contrary notwithstanding.
 WHAT IS SUBSTANTIAL CAPITAL
· Just establishes a preference and
- refers to the adequacy of resources not a lien;
actually or directly used by the · Applicable only to ordinary preferred
contractor or subcontractor in the credit, hence, must yield to
performance or completion of the job, special preferred credits, e.g.,
work, service contracted out. secured creditors
Substantial capital need not be
· This Article did not sweep away the
coupled with investment in tools or
overriding preference accorded
equipment. This is clear from the use
under the scheme of the Civil Code
of the conjunction “or”.
to tax claims of the government.
· conditions sine qua non to the
SCOPE OF LIABILITY IN CONTRACTING operation of the preference
OR SUBCONTRACTING accorded to workers under Art. 110:
a. formal declaration of insolvency
- when a contractor fails to pay or bankruptcy
the wages of his employees in b. general judicial liquidation
accordance with the Labor Code, proceedings of the employer’s
the employer who contracted business
out the job becomes jointly and c. filing of claims by workers
severally liable with the
contractor “to the extent of the  The worker preference is not
work performed under the applicable in case the employer –
contract” as if such employer corporation is under rehabilitation
were the employer of the (Rubberworld, Inc. vs. NLRC).
contractor’s employees. - Article 110 covers not only unpaid
- The law itself, establishes an wages but also all other monetary
employer-employee relationship claims.
between the employer and the
job contractor’s employee for a 1.  ART 111. ATTORNEY’S
limited purpose, i.e. in order to FEES
ensure the latter get paid the a. In cases of unlawful withholding of
wages due to them. wages, the culpable party may be
assessed attorney’s fees equivalent
LABOR LAW COMMITTEE

Basquiñez
to 10% of the amount of wages or service of such employer or any

recovered. other person.
b. It shall be unlawful for any person to 4. Withholding of wages.
demand or accept, in any judicial or 5. Deduction of wages as consideration
administrative proceedings for the of a promise of employment or
recovery of the wages, attorney’s retention in employment.
fees which exceed 10% of the 6. Refusal to pay/reduction of wages
amount of wages recovered. and benefits, discharge/
(see discussions in Art.222) discrimination against any employee
· Attorney’s fees presuppose as retaliatory measures against any
atty-client relationship. employee who has filed any
complaint or instituted any
proceedings against his employer.
CHAPTER IV
1.  ART.
PROHIBITIONS REGARDING WAGES
113. WAGE DEDUCTIONS
 ART. 112. NON-INTERFERENCE IN
 GENERAL RULE.
DISPOSAL OF WAGES
- Wage deduction is strictly prohibited.
 RELATED Civil Code PROVISIONS:
EXCEPTIONS (ALLOWABLE
DEDUCTIONS):
Art. 1705. The laborer’s wages shall be
paid in legal currency.
A. WITH EMPLOYEES’ CONSENT:
Art. 1706. Withholding of the wages,
1. SSS payments
except for a debt due, shall not be
2. PHILIHEALTH payments
made by the employer.
3. Contributions to PAG-IBIG Fund
Art. 1707. The laborer’s wages shall be
4. value of meals and other
a lien on the goods manufactured or the
facilities
work done.
5. payments to third persons with
Art. 1708. The laborer’s wages shall
employees consent
not be subject to execution or
6. deduction of absences
attachment except for debts incurred
for food, shelter, clothing, and medical
B. WITHOUT EMPLOYEES’ CONSENT:
attendance.
1. worker’s insurance acquired by
.Art. 1709. The employer shall neither
the employer
seize nor retain any tool or other
2. union dues, where the right to
articles belonging to the laborer.
check-off has been recognized
by the employer
87.  PROHIBITIONS REGARDING 3. cases where the employer is
WAGES: authorized by law or regulations
issued by the Secretary of Labor
1. Payment of wages with less 4. debts of the employee to the
frequency than once (1) a month. employer which have become
2. Limitations/interference by the due and demandable
employer with the employees'
freedom to dispose of his wages.  ART 114. DEPOSITS FOR LOSS OR
3. Forcing, compelling/obliging DAMAGE
employees to purchase merchandise,
commodities or other properties  GENERAL RULE:
from the employer or from any other - No employer shall require his worker
person, or to make use of any store to make deposits for the reimbursement
of loss of or damage to material,
CHAIRPERSONS
equipment, or tools supplied by the 4. No employer shall require the

employer. worker to make deposits from
which deductions shall be made
 EXCEPTION: for reimbursement of loss of or
- When the trade, occupation or damage to tools, materials, or
businesses of the employer recognizes, equipment supplied by the
or considers the practice of making employer except when the
deductions or requiring deposits employer is engaged in such
necessary or desirable. business requiring such deposits
as determined by the Secretary
 REQUISITES OF DEDUCTION FOR of Labor; ART 114 DEPOSITS
LOSS OR DAMAGE: FOR LOSS OR DAMAGE
1. the employee is clearly shown to 5. No employer shall make any

be responsible for the loss or deduction from the employee’s
damage; deposits for the actual amount
2. the employee is given ample of the loss or damage unless the
opportunity to show cause why employee has been heard
deduction should not be made; thereon and his responsibility
3. the amount of the deduction is has been clearly shown; ART 115
fair and reasonable and shall not LIMITATIONS
exceed the actual loss or
damage; and 6. No employer shall withhold any
4. the deduction from the amount from the wages unless
employee’s wage does not authorized to do so; ART 116
exceed 20 percent of the WITHHOLDING OF WAGES &
employee’s wages in a week. KICKBACKS PROHIBITED
7. No employer shall induce the

 10 COMMANDMENTS FOR THE employee to give up any part of
EMPLOYER: his wages by force, stealth,
1. No employer shall interfere with intimidation, threat or dismissal
the employee’s freedom to or by any other means without
dispose of his wages; ART 112 his (worker) consent; ART 116
NON-INTERFERENCE IN WITHHOLDING OF WAGES &
DISPOSAL OF WAGES KICKBACKS PROHIBITED
2. No employer shall force, 8. No employer shall make

compel, or oblige employees to deductions as consideration of a
purchase merchandise, promise of employment or
commodities or other property retention of employment; ART
from the employer or from any 117 DEDUCTION TO ENSURE
other person, or otherwise make EMPLOYMENT
use of any store or services of
such employer or any other 9. No employer shall refuse to pay
person; ART 112 NON- or reduce the wages and benefits
INTERFERENCE IN DISPOSAL OF or otherwise discharge the
WAGES employee who has filed any
complaint under this Title, or
3. No employer shall make any has testified or is about to
deductions from the employee’s testify in such proceedings; ART
wages except when authorized 118 RETALIATORY MEASURES
to do so; ART 113 WAGE
DEDUCTION 10. No employer shall make any
statement, report or record
knowing such statement, report
LABOR LAW COMMITTEE

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or record to be false in any – A wage Order issued by the Board may

material respect. ART 119 not be disturbed for a period of 12
FALSE REPORTING months from its effectivity and no
petition for wage increase shall be
CHAPTER V entertained during said period.
EXCEPTION: When Congress itself issues
a law increasing wages.
WAGE STUDIES, WAGE AGREEMENTS
AND WAGE DETERMINATION  ART. 124. STANDARDS/CRITERIA
FOR MINIMUM WAGE FIXING
 ART 122. CREATION OF THE

89. OTHER RELEVANT FACTORS
FOR DETERMINING REGIONAL MINIMUM
REGIONAL TRIPARTITE WAGES AND
WAGE RATES:
PRODUCTIVITY BOARDS
1. Demand for living wages;
2. Wage Adjustment vis-à-vis the
 WHO MAY SET MINIMUM WAGE:
consumer price index;
1. Regional Tripartite Wages and
3. Cost of living and changes or
Productivity Board (RTWPB)
increases therein;
2. Congress
4. Needs of workers and their families;
5. Need to induce industries to invest in
 COMPOSITION OF RTWPB:
the countryside;
6. Improvements in standards of living;
1. Regional Director of DOLE
7. Prevailing wage levels;
8. Fair Return of the capital invested
and capacity to pay of employers;
4. 2 members form the employer
9. Effects on Employment Generation
sector
and Family Income; and
5. 2 members form the employee
10. Equitable Distribution of Income &
sector
Wealth along the imperatives of
6. Secretariat
economic and social development
88.  MINIMUM WAGE - The lowest
 WAGE DISTORTION – a situation
wage rate fixed by law that an employer
where an increase in prescribed wage
can pay his employees.
rates results in the elimination or severe
contraction of intentional quantitative
 ART. 123. WAGE ORDER
differences in wage or salary rates
between and among employee groups in
WAGE ORDER – an order issued by the
an establishment as to effectively
Regional Board whenever the conditions
obliterate the distinctions embodied in
in the region so warrant after
such wage structure based on skills,
investigating and studying all pertinent
length of service or other logical bases
facts and based on the standards and
of differentiation.
criteria prescribed by the LC, the
Regional Board proceeds to determine
 CORRECTION OF WAGE DISTORTION
whether to issue the same or not.
A. Unionized Establishment
1. Negotiate to correct the distortion
 EFFECTIVITY OF A WAGE ORDER
2. Any dispute arising therefrom
– it shall take effect after 15 days from
should be resolved through
the its complete publication in at least
grievance procedure under their
one newspaper of general circulation in
CBA
the region.
3. If the dispute remains unresolved,
through voluntary arbitration
 FREQUENCY OF A WAGE ORDER

CHAIRPERSONS
B. Establishments Without Unions the enforcement of the Code

1. The employers and workers shall and of any labor law, wage
endeavor to correct the order, or rules and regulations.
distortion. · “duly authorized representative”
2. Any dispute arising therefrom herein is the Regional Director.
shall be settled through the
NCMB and  ENFORCEMENT POWER (as amended
3. If it remains unresolved after 10 by RA 7730)
days of conciliation, it shall be
referred to the NLRC. - Power of the Sec. of Labor to
compel employer to comply with labor
N.B.: Wage distortion is non-strikeable. standards upon finding of violations
discovered in the course of the exercise
of the visitorial power.
IS THE EMPLOYER LEGALLY OBLIGED - Among the powers are the power to:
TO CORRECT A WAGE DISTORTION?
1. Issue Compliance Orders based on
- It appears so. Article 124 of the Code the findings of labor employment
provides that “the employer and the and enforcement officers or
union shall negotiate to correct the industrial safety engineers made in
distortions.” If there is no union, “the the course of inspection.
employer and the workers shall endeavor 2. Issue Writs of Execution for the
to correct such distortions. enforcement of orders except in
cases where the employer contests
MUST THE PREVIOUS PAY GAPS BE the findings of the said labor officers
RESTORED? and raises issues supported by
documentary proofs which were not
While that is the aim, it need not considered in the course of
necessarily be restored to the last peso. inspection.
An appreciable differential, a 3. Order Work Stoppage/Suspension of
significant pay gap should suffice as Operations when non-compliance
correction of the distortion. with the law or implementing rules
and regulations poses grave &
1. CHA imminent danger to the health and
PTER VII safety of the workers in the
workplace.
ADMINISTRATION AND 4. Conduct hearings within 24 hours to
ENFORCEMENT determine whether:
a. an order for stoppage of
work/suspension of operations shall
 ART. 128. VISITORIAL AND
be lifted or not.
ENFORCEMENT POWER
b. employer shall pay the
employees concerned their salaries
 VISITORIAL POWER
in case the violation is attributable
- Power of the Sec. of Labor or any
to his fault
of his duly authorized representative to
have access to employer’s records and  PROCEDURE:
premises at any time of the day or night
whenever work is being undertaken COMPLAINT or ROUTINE INSPECTION
therein.
· includes the right to copy
ACTUAL INSPECTION
therefrom, to question any (inspector lists the
employee & investigate any fact, violation in his
condition or matter which may checklist)
be necessary to determine INSPECTOR’S FINDING
OF VIOLATION
violations or which may aid in
LABOR LAW COMMITTEE

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compensation, SSS, Philhealth and

ISSUANCE OF COMPLIANCE ORDER
maternity benefits, pursuant to Article
217of the Labor Code.
In case of non-compliance - the proceedings before the Regional
ISSUANCE OF WRIT OF NON-COMPLINACE Office shall be summary and non-
In case party disagrees
litigous in nature .
with RD’s finding
ADJUDICATORY POWER
HEARING the Regional Director or any of
his duly authorized hearing
DECISION
officer is empowered through
summary proceeding and after
MR APPEAL due notice, to hear and decide
(8-10 days w/ Sec. of labor) cases involving recovery of
wages and other monetary
WORK STOPPAGE claims and benefits, including
legal interests.
 INSTANCES WHEN ENFORCEMENT TITLE III

POWER MAY NOT BE USED
1. case does not arise from the

WORKING CONDITIONS FOR SPECIAL
exercise of visitorial power GROUP OF EMPLOYEES
2. when er-ee relationship ceased
to exist at the time of the
inspection CHAPTER I
3. if employer contests the finding
of the labor regulation officer EMPLOYMENT OF WOMEN
and such contestable issue is not
verifiable in the normal course 2.  ART.
of inspection. 130. NIGHTWORK PROHIBITION
 No woman, regardless of age, shall

 ART. 129. RECOVERY OF WAGES, be employed or permitted or
SIMPLE MONEY CLAIMS AND OTHER suffered to work, with or without
BENEFITS compensation in any :
-Industrial undertaking between
 REQUISITES: 10PM and 6AM
1. The aggregate money claim of each -Commercial/Non-Industrial
employee or househelper does not undertaking between 12 MN and
exceed P5, 000.00 6AM
2. The claim is presented by an -Agricultural undertaking at
employee or person employed in nighttime unless she is given a
domestic or household service or period of rest of not less than 9
househelper; consecutive hours
3. The claim arises from employer-
employee relations;
4. The claimant does not seek
reinstatement;
In the absence of any of the requisites,

it is the labor arbiter who shall have
exclusive jurisdiction over claims arising
from employer – employee relations,
except claims for employees’
CHAIRPERSONS
3. Where the work is necessary to

HOW Enforcement Initiated by prevent serious loss of perishable
INITIATED Power is sworn
goods;
offshoot of complaint
visitorial filed by the 4. Where the woman employee holds
power interested a responsible position of
party managerial or technical nature,
or where the woman employee
has been engaged to provide
LIMITA- No limit as to Aggregate
health and welfare service;
TIONS amount of claim of
AS TO claim each 5. Where the nature of the work
AMT. OF complainant requires the manual skill and
CLAIM does not dexterity of women workers and
exceed the same cannot be performed
P5,000 with equal efficiency by male
workers;
APPEAL Appeal is with Appeal with 6. Where the women employees are
Sec. of Labor; NLRC; immediate members of the
period of period of
family operating the
appeal is 10 appeal is 5
calendar days calendar establishment or undertaking;
days and
7. Under other analogous cases
WHO Person The power is exempted by the Secretary of
EXERCISES exercising the vested upon Labor in appropriate regulations.
POWER power is the a regional
Sec. Of Labor director or 4.  ART
or any of his any duly 132. FACILITIES FOR WOMEN
duly authorized
authorized hearing
representatives officer of
- The Secretary of Labor may require
who may or the DOLE. employers to:
may not be a 1. Provide seats proper for women
Regional and permit them to use the
Director seats when they are free from
work or during office hours
3.  ART. provided the quality of the work
131. EXCEPTIONS will not be compromised;
2. Establish separate toilet rooms
 The prohibitions prescribed by Article and lavatories for men and
130 shall not apply in any of the women and provide at least a
following cases: dressing room for women;
1. In cases of actual or impending 3. Establish a nursery in the
emergencies caused by serious establishment; and
accident, fire, flood, typhoon, 4. Determine appropriate minimum
earthquake, epidemic, or other age and other standards for
disasters or calamity, to prevent retirement or termination in
loss of life or property, or in special occupations such as those
cases of force majeure or of flight attendants and the like.
imminent danger to public
safety;  ART. 133. MATERNITY LEAVE
2. In cases of urgent work to be BENEFITS
performed on the machineries,
equipment or installation, to  MATERNITY LEAVE UNDER THE SSS
avoid serious loss which the LAW
employer would otherwise - A female member, who need
suffer; not be legally married, who
has paid for at least three (3)
monthly contributions in the
LABOR LAW COMMITTEE

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12-month period immediately percent (100%) of the amount of

preceding the semester of her maternity benefits advanced to
childbirth or miscarriage shall the employee by the employer
be paid a daily maternity upon receipt of satisfactory
benefit equivalent to 100% of proof of such payment and
her average daily salary credit legality thereof; and
for 60 days or 78 days, in case · That if an employee member
of caesarian delivery. should give birth or suffer
miscarriage without the required
- Maternity benefits provided contributions having been
herein shall be paid only for remitted for her by her employer
the first four (4) deliveries or to the SSS, or without the latter
miscarriages; having been previously notified
the employer of the time of the
- Maternity benefits like other pregnancy, the employer shall
benefits granted by the SSS, pay to the SSS damages
are granted in lieu of wages equivalent to the benefits which
and therefore, may not be said employee would otherwise
included in computing the have been entitled to.
employee’s 13th month pay for
the calendar year. EXTENSION OF MATERNITY LEAVE
ART 133 (b)
 QUALIFICATIONS FOR ENTITLEMENT: - the maternity leave shall be
extended without pay on
1. The female employee should be account of illness medically
employed at the time of the certified to arise out of the
delivery, miscarriage, or pregnancy, delivery, abortion, or
abortion; miscarriage, which renders the
2. The employee shall have notified woman unfit for work , unless
her employer of her pregnancy she has earned unused leave
and the probable date of her credits from which such
childbirth, which notice shall be extended leave may be charged.
transmitted to the SSS in
accordance with the rules and 90.  PATERNITY LEAVE (RA
regulations it may provide; 8187 , July 5,1996)
3. That full payment shall be - Grants paternity leave of 7 days with
advanced by the employer within full pay, consisting of basic salary, to
thirty (30) days from the filing of all married male employees in the
the maternity leave application; public and private sector.
and
4. That payment of daily maternity - Available only for the first 4
benefits have been received; deliveries of the legitimate spouse
with whom the husband is
Is it necessary that a woman be cohabiting; the term delivery
impregnated by her legitimate spouse? includes childbirth, miscarriage or
No. it is immaterial who the father is. abortion.
- In the event that such leave was not
Every pregnant woman in the private availed of, said leave shall not be
sector, whether married or unmarried, is convertible to cash.
entitled to the maternity leave benefits.
PURPOSE: to enable the husband to lend
OTHER IMPORTANT CONDITIONS: support to his wife during the period of
· That the SSS shall recovery and/ or in the nursing of the
immediately reimburse the newly born child.
employer of one hundred

CHAIRPERSONS
CONDITIONS FOR ENTITLEMENT:

1. He is an employee at the time of 1. to require as a condition for
the delivery of his child; employment or continuation of
2. He is cohabiting with his spouse at employment that a woman
the time she gives birth or suffers employee shall not get married,
a miscarriage; 2. to stipulate expressly or tacitly
3. He has applied for paternity leave that upon getting married a
with his employer; woman employee shall be
4. His wife has given birth or suffered deemed resigned or separated
a miscarriage; the term wife refers 3. to actually dismiss, discharge,
to the lawful wife which means discriminate or otherwise
the woman who is legally married prejudice a woman employee
to the male employee concerned. merely by reason of her
marriage.
APPLICATION OF LEAVE:
· Must be made:  ART. 137. PROHIBITED ACTS
1. within a reasonable time from -It shall be unlawful for an
the expected date of delivery by employer:
the pregnant spouse.
91. within such period as may be 1. To discharge any woman
provided by company rules & employed by him for the purpose
regulations or CBA. of preventing such woman from
· prior application for leave shall NOT enjoying the maternity leave,
be required in case of miscarriage. facilities and other benefits
provided under the Code;
 ART. 134. FAMILY PLANNING 2. To discharge such woman
SERVICES employee on account of her
- Employers who habitually employ pregnancy, or while on leave or
more than two hundred (200) workers in in confinement due to her
any locality shall provide free family- pregnancy;
planning services to their employees and 3. To discharge or refuse the
their spouses which shall include but not admission of such woman upon
limited to, the application or use of returning to her work for fear
contraceptive pills and intrauterine that she may be pregnant;
devices. 4. To discharge any woman or child
or any other employee for having
 ART. 135. DISCRIMINATION filed a complaint or having
PROHIBITED testified or being about to
- It shall be unlawful for any employer testify under the Code;
to discriminate against any woman
employee with respect to terms and  ART. 138. CLASSIFICATION OF
conditions of employment solely on CERTAIN WOMEN WORKERS
account of her sex.
- Any woman who is permitted
 ACTS OF DISCRIMINATION: to work or suffered to work, with
or without compensation, in any
a. Payment of a lesser compensation night club, cocktail lounge,
for work of equal value. massage clinic, bar or similar
b. Favoring a male employee over a establishment, under the effective
female employee solely on the control or supervision of the
account of their sexes. employer for a substantial period
of time as determined by the
 ART. 136. STIPULATION AGAINST Secretary of Labor, shall be
MARRIAGE considered as an employee of such
establishment for purposes of
- it shall be unlawful for an employer: labor and social legislation.
LABOR LAW COMMITTEE

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CHAPTER II  HAZARDOUS WORKPLACES:

1. where the nature of the work
EMPLOYMENT OF MINORS exposes the workers to dangerous
(see RA 7610 annex ) environmental elements,
contaminants or work conditions;
1.  ART. 139. 2. where the workers are engaged in
MINIMUM EMPLOYABLE AGE construction work, logging, fire-
fighting, mining, quarrying, blasting,
 GENERAL RULE: No child below 15 stevedoring, dock work, deep-sea
shall be employed. fishing, and mechanized farming;
3. where the workers are engaged in
 CONDITIONS ON THE EMPLOYMENT the manufacture or handling of
OF A CHILD BELOW 15: explosives and other pyrotechnic
products;
1. When the child works directly under 4. where the workers use or are
the sole responsibility of his/her exposed to heavy or power-driven
parents or legal guardian who machinery or equipment; and
employs members of his/her family 5. where the workers use or are
only under the following conditions: exposed to power-driven tools,
a. employment does not endanger the
child’s life, safety, health and
morals; CHAPTER III
b. employment does not impair the
child’s normal development; and
c. the parent/legal guardian provides EMPLOYMENT OF HOUSEHELPERS
the child with the primary and/or
secondary education prescribed by 2.  ARTS.
DECS. 141-152
2. Where the child’s employment or  RIGHTS OF HOUSEHELPERS:
participation in public entertainment or (Articles 1689 – 1699, NCC)
information through cinema, theater, 1. non-assignment to non-
radio, or television is essential, provided household work
that: 2. Reasonable compensation
a. employment does not involve (minimum cash wage)
advertisements or commercials
3. Lodging, food, and medical
promoting alcoholic beverages,
intoxicating drinks, tobacco and its attendance
by-products or exhibiting violence; 4. If under 18 years old, an
b. There is a written contract opportunity for elementary
approved by the DOLE; and education
c. The conditions prescribed for the - cost of which shall be part
employment of minors {above of househelpers’ compensation
stated} are met. 5. Contract for household service
shall not exceed 2 years.
- Any person between the ages of 15 - Renewable however from year to
and 18 may be employed in any non- year
hazardous work. 6. Just and humane treatment
7. Right not to be required to work
NON-HAZARDOUS WORK OR for more than 10 hours a day
UNDERTAKING - If the househelper agrees to
– one where the employee is not exposed work overtime, and there is
to any risk which constitutes an additional compensation, the
imminent danger to his safety and same is permissible
health. 8. Right to four days vacation each
month with pay
CHAIRPERSONS
- If the helper does not ask

for the vacation, the number of
vacation days cannot be
accumulated, he is entitled only CHAPTER IV
to its monetary equivalent.
9. Funeral expenses must be paid EMPLOYMENT OF HOMEWORKERS
by the employer if the
househelper has no relatives
with sufficient means in the 1.  ARTS.
place where the head of the 153-155
family lives
10. Termination only for a just
cause.  ART. 153. REGULATION OF
11. Indemnity for unjust INDUSTRIAL HOMEWORKERS
termination of service
12. Employment certification as to - Rule shall apply to any
nature and duration of service homeworker who performs in or
and efficiency and conduct of about his home any processing of
the househelper. goods or materials, in whole or
in part, which have been
3.  ART. furnished directly or indirectly
149. INDEMNITY FOR UNJUST by an employer and thereafter
TERMINATION OF SERVICE to be returned to the latter.
4.
SUMMARY OF RULES :
 ART. 155. DISTRIBUTION OF
92. If the period for household HOMEWORK
service is fixed, neither the
employer nor the househelper may  EMPLOYER OF HOMEWORKERS :
terminate the contract before the - any natural or artificial person who,
expiration of the term, except for a for his own account or benefit, or on
just cause. behalf of any person residing outside
93. If the househelper is unjustly the Philippines, directly or
dismissed, he or she shall be paid indirectly, or through any employee,
the compensation already earned agent, contractor, sub-contractor; or
plus that for fifteen (15) days by way any other person:
of indemnity.
1. If the househelper leaves (1) Delivers or causes to be
without justifiable reason, he or delivered any goods or articles
she shall forfeit any unpaid to be processed in or about a
salary due him or her not home and thereafter to be
exceeding fifteen (15) days. returned or to be disposed of or
distributed in accordance with
 ART. 151. EMPLOYMENT FOR his direction; or
CERTIFICATION
- Upon the severance of the (2) Sells any goods or articles for the
household service relationship, the purpose of having such goods or
househelper may demand from the articles processed in or about a
employer a written statement of the home and then repurchases them
nature and duration of the service and himself or through another after
his or her efficiency and conduct as such processing.
househelper.
LABOR LAW COMMITTEE

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WORKMEN’S COMPENSATION – a
general and comprehensive term
BOOK IV applied to those laws providing for
compensation for loss resulting from
HEALTH, SAFETY AND SOCIAL WELFARE the injury, disablement or death of a
BENEFITS workman through industrial
accident, casualty or disease.
TITLE I COMPENSATION – money relief

MEDICAL, DENTAL AND OCCUPATIONAL offered according to the scale
SAFETY established under the statue as
differentiated from compensatory
damages recoverable in an action at
CHAPTER I law for breach of contract or for
MEDICAL AND DENTAL SERVICES tort.
WORKMEN’S EMPLOYEES
 ART. 156. FIRST-AID TREATMENT COMPENSATION COMPENSATION
ACT LAW
· FIRST-AID TREATMENT – adequate,
immediate and necessary medical 1. there is a 1. no
and dental attention or remedy presumption of presumption of
given in case of injury or illness compensability compensability
suffered by a worker during
employment, irrespective of whether
or not such injury or illness is work- 2. there is a 2. no
connected, before a more extensive presumption of presumption of
medical and/or dental treatment aggravation aggravation
can be secured.
3. There is a 3. no need for
FIRST-AIDER – any person trained and need for the the employer to
duly certified as qualified to administer employer to controvert the
first aid by the Philippine National Red controvert the claim
Cross or by any other organization claim within 14
accredited by the former. days otherwise
he is deemed to
have waived the
TITLE II right
EMPLOYEES’ COMPENSATION AND
STATE INSURANCE FUND
4. payment of 4. payment of
compensation is the compensation
made by the is made by the
employer SSS/GSIS thru the
State Insurance
Fund
 ART. 167. DEFINITION OF TERMS
INJURY –any harmful change in the

human organism from any accident
arising out of and in the course of
employment
CHAIRPERSONS
EXCEPTIONS TO THE DIRECT PREMISES

· Conditions for an injury to be RULE:
compensable:
1. INGRESS-EGRESS/ PROXIMITY RULE
1. the employee must have been When the injury is sustained when
injured at the place where the work the employee is proceeding to or
requires him to be. from his work on the premises of the
2. the employee must have been employer, the injury is compensable.
performing his official functions. 2. GOING TO OR COMING FROM WORK
3. if the injury is sustained elsewhere,
the employee must have been -When the injury is sustained when
executing an order for the employer. the employee is proceeding to or
4. The injury was not due to the from his work on the premises of the
employee’s intoxication, willful employer, the injury is compensable.
intention to injure or kill himself or
another, notorious negligence or as a. the act of the employee of going
otherwise provided under this Title. to, or coming from, the work
· Injuries incurred by a health worker place, must have been a
while doing overtime work shall be continuing act, that is, he had
presumed work-connected. (Magna not been diverted therefrom by
Carta for Public Health Workers) any other activity, and he had
departed form his usual route to,
SICKNESS - any illness accepted as an or from, his workplace; and
occupational disease listed by the b. an employee on a special errand
Commission or any illness caused by must have been official and in
employment subject to proof that the connection with his work
risk of contraction the same is increased
by working conditions 3. EXTRA-PREMISES RULE (the Shuttle
Bus Rule) – the company which
CONDITIONS for an occupational provides the means of transportation
disease and the resulting disability or in going to or coming from the place
death to be compensable: of work is liable to the injury
sustained by the employees while on
1. the employee’s work must involve board said means of transportation.
the risk described therein
2. the disease was contracted as a 4. SPECIAL ERRAND RULE – injury
result of the employee’s exposure to sustained outside the company
the described risks premises is compensable if his being
3. the disease was contracted within out is covered by an office order or a
the period of exposure and under locator slip or a pass for official
such factors necessary to contract it; business.
and
4. there was no notorious negligence on 5. DUAL PURPOSE DOCTRINE – allows
the part of the employee compensation where a special trip
would have to be made for the
DEATH- loss of life resulting form injury employer if the employee had not
or sickness combined the service for the
employer with his going or coming
DISABILITY – loss or impairment of a trip.
physical or mental function resulting
form injury or sickness 6. SPECIAL ENGAGEMENT RULE –
covers field trips, outings,
DIRECT PREMISES RULE – as a general intramurals and picnics when
rule, the accident should have occurred initiated and sanctioned by the
at the place of work to be compensable. employer.
LABOR LAW COMMITTEE

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7. POSITIONAL AND LOCAL RISKS

DOCTRINE – if an employee by 1. by agreement of the parties;
reason of his duties is exposed to a 2. if the suicide/death is caused by
special or peculiar danger from the work-related or compensable illness
elements, that is, one greater than or disease
that to which other persons in the
community are exposed and an 96. ART. 173 EXTENT OF LIABILITY
unexpected injury occurs, the injury
is compensable. - Simultaneous recovery under the
Labor Code and the Civil Code
cannot be made. The action is
CHAPTER II selective and the employee may
COVERAGE AND LIABILITY either choose to file the claim under
either. But once the election is
94. ART. 168 COMPULSORY made, the claimant cannot opt for
COVERAGE the other remedy.
- ECL applies to all employers, public
or private, and to all employees, - Simultaneous recovery under the
public or private including casual, Labor Code and the SSS can be made
emergency, temporary, or substitute (as per an advisory opinion of Sec.
employees. Drilon dated May 23, 1989) since PD
- An employee who is over 60 years of 1921 has lifted the ban on
age and paying contributions to simultaneous recovery.
qualify for the retirement or life
insurance benefit administered by STATE INSURANCE FUND : all covered
the system shall be subject to employees are required to remit to a
compulsory coverage. common fund a monthly contribution
equivalent to 1% of the monthly salary
ART 170. EFFECTIVE DATE OF credit of every covered employee. The
COVERAGE employee pays no contribution to the
- The employer is covered fund. Any agreement to the contrary is
compulsorily form the first day of prohibited.
operation and the employee from
the first day of employment. CHAPTER VI
DISABILITY BENEFITS
95. ART. 172 LIMITATIONS OF
LIABILITY · DISABILITY CATEGORIES:
- NO COMPENSATION can be obtained
if the injury, death or disability is a TEMPORARY TOTAL – if as a result of
result of the employee’s: the injury or sickness, the employee is
1.intoxication; unable to perform any gainful
2.willful intention to injure or kill occupation for a continuous period not
himself or another; exceeding 120 days
3.notorious negligence; or
4.otherwise provided by the Labor PERMANENT TOTAL – if as a result of
Code the injury or sickness, the employee is
unable to perform any gainful
NOTORIOUS NEGLIGENCE – deliberate occupation for a continuous period not
act of the employee to disregard to his exceeding 120 days
own personal safety.
PERMANENT PARTIAL - if as a result of
Is death through suicide compensable? the injury or sickness, the employee
As a rule, NO. However, as held in suffers a permanent partial loss of the
NAESS vs NLRC, the SC held that a self- use of any part of his body.
inflicted death could be compensable:
CHAIRPERSONS
97. DEATH BENEFITS (See annex for “PHILHEALTH”)

- The System shall pay to the primary
beneficiaries upon the death of the PAG-IBIG Law- creates a provident
covered employee an amount equal savings system for employees, public and
to his monthly income benefit, plus private, with housing as the primary
ten percent thereof for each investment.
dependent child, but not exceeding
five, beginning with the youngest
and without substitution. The BOOK FIVE
income benefit shall be guaranteed
for five years.
103. LABOR RELATIONS
DEPENDENTS:
1. the legitimate, legitimated, and 104. TITLE I
legally adopted or acknowledged
natural child who is unmarried, not 105. POLICY AND DEFINITIONS
gainfully employed and not over 21
years of age or over 21 years of age
provided that he is incapable of self- 1. 
support due to a physical or mental ART. 211. DECLARATION OF POLICY
defect which is congenital or
acquired during minority  LABOR RELATIONS – the interactions
2. legitimate spouse living with the between the employer and employees
employee and their representatives and the
3. the parents of said employee wholly mechanism by which the standards and
dependent upon him for regular other terms and conditions of
support employment are negotiated, adjusted
and enforced.
98. BENEFITS 106.
1. for life to the primary beneficiaries,
107.  LABOR RELATIONS LAW –
guaranteed for five years
those intended to stabilize the relations
2. for not more than 60 months to the
of employees and their employers,
secondary beneficiaries in case there
adjust differences between them
are not primary beneficiaries
through the encouragement of collective
3. in no case shall the total benefit be
bargaining, and settle labor disputes
less than P15,000.00
through conciliation, mediation and
arbitration.
99. BENEFICIARIES
100. PRIMARY BENEFICIARIES
· it defines the status, rights, and
A. dependent spouse until he
duties and the institutional
remarries
mechanisms that govern the
B. dependent children (legitimate,
individual and collective
legitimated, natural born or legally
interactions of employers,
adopted)
employees or their
representatives.
101. SECONDARY BENEFICIARIES
A. illegitimate children and legitimate · Absent an employer-employee
descendants relation, there is no labor
B. parents, grandparents, relations to speak of.
grandchildren
- Collective bargaining process is
possible only when there is a labor
102. TITLE III
organization, i.e., (1) labor union
MEDICARE
or (2) employee association.
(Repealed by National Health Insurance
Act of 1995)
LABOR LAW COMMITTEE

Basquiñez
POLICY is intended to install industrial 108. Shall not be limited to the

democracy centered on collective employees of a particular employer,
bargaining, leading to social justice as and it shall include any individual
the end goal. whose work has ceased as a
result of or in connection with any
PARTIES TO LABOR RELATIONS CASES: current labor dispute or because of
1. employee’s organization, any unfair labor practice IF he has
2. management, and not obtained any other:
3. the public 1. Substantially equivalent
· The public is always to be and
considered in disputes between 2. Regular employment
labor and capital, and it has (Art.212f)
been held that the rights of the
general public are paramount. ICAWO vs. CIR (16 SCRA 562): The
 Labor relations policy under the LC category of “any employee” is so broad
is embodied in Section 3 Article XIII of as to justify employee status for
the 1987 Constitution which guarantees supervisors, regular workers, casual
to all workers their right among others employees, emergency laborers,
to: substitute workers, seasonal workers,
part-time workers and other special
work groups.
1. Self-organization,
2. Collective bargaining and APEX MINING CO., vs. NLRC (196 SCRA
negotiations, 251): Laundrywoman not actually
3. Peaceful and concerted serving the family of the employer but
activities including the right to working in the staff houses or within the
strike in accordance with law, premises of the employer’s business is a
and regular employee and is not included in
4. Participate in policy and the definition of domestic helper.
decision-making processes
affecting their rights and FELIX vs. BUENASEDA (240 SCRA 139):
benefits as may be provided by Residency or resident physician position
law. in a medical specialty is not employment
but connotes training and temporary
1.  ART. 212. DEFINITIONS status. (No E-E relationship)
EMPLOYER- one who employs the

services of others; one for whom  WORKER’S ASSOCIATION - any
employees work and who pays their association of workers organized for the
wages or salaries. mutual aid and protection of its
any person acting in the interest of an members or for any legitimate purpose
employer, directly or indirectly. The other than for collective bargaining.
term does not include a labor
organization or any of its officers and  INDEPENDENT UNION – It refers to
agents, EXCEPT when acting as an any labor organization operating at the
employer. enterprise level whose legal personality
is derived through an independent action
EMPLOYEE- one who works for an for registration with the Bureau of Labor
employer; a person working for salary or Relations (BLR) of the Department of
wages. Labor and Employment prescribed under
Art. 234. It may be affiliated with a
federation, national or industry union, in
which case it may also be referred to as
an affiliate.

CHAIRPERSONS
FEDERATION - any labor organization REGARDLESS of whether the disputants

with at least 10 locals/chapters or stand in the proximate relation of
affiliates each of which must be a duly employer and employee.
certified or recognized as the sole and
exclusive collective bargaining agent of · The test
the employees of an appropriate of whether a labor controversy comes
bargaining unit. within the definition of a labor dispute
depends on whether it involves or
LEGITIMATE WORKER’S ASSOCIATION concerns terms, conditions of
– refers to an association of workers employment, or representation.
organized for mutual aid and protection
of its members of for any legitimate  TYPES OF LABOR DISPUTES:
purpose other than collective bargaining 1. Labor Standards Disputes
registered with the Department in a. Compensation [e.g.,
accordance with Rule III, Sections 2-C underpayment of minimum
and 2-D of these rules. wage; stringent output quota;
illegal pay deductions]
 LABOR MANAGEMENT COUNCIL b. Benefits [ e.g., nonpayment of
- Deals with the employer on holiday pay, overtime pay or other
matters affecting the employee’s benefits]
rights, benefits and welfare. c. Working conditions [e.g., unrectified
- Purposes are to: work hazards]
a. promote gainful employment
b. improve working conditions and 2. Labor Relations Disputes
c. achieve increased productivity a. Organizational right dispute/
(RA 6971) unfair labor practice [e.g.,
coercion, restraint or
LABOR ORGANIZATION — any union or interference in unionization
association of employees which exists in efforts; reprisal or discrimination
whole in part for the purpose of due to union activities; company
collective bargaining with employers unionism]
concerning terms and conditions of b. Representation disputes [e.g.,
employment. determination of the collective
bargaining unit; ULP strike;
LEGITIMATE LABOR ORGANIZATION- uncertainty as to determination
any labor organization which is duly of the sole and exclusive
registered with the Department of bargaining agent of the
Labor. The term includes a employees in an appropriate
local/chapter of the Bureau of Labor bargaining unit which is the
Relations directly chartered by a majority union]
legitimate federation or national union c. Bargaining disputes [e.g., refusal
which has been duly reported to the to bargain (ULP); bargaining
Department in accordance with Rule VI, deadlock; economic strike or
Section 2 of Book V of the Rules lockout]
Implementing the LC. d. Contract administration or
personnel policy disputes [e.g.,
 LABOR DISPUTE – includes any noncompliance with CBA
controversy or matter concerning: provisions (ULP if gross
noncompliance with economic
1. terms or conditions of employment provisions); disregard of
OR grievance machinery; violation
2. the association or representation of no strike/no lockout agreement]
persons in negotiating, fixing, e. Employment tenure disputes
maintaining, changing or arranging
[e.g., non regularization of
the terms and conditions of
employment employees; illegal termination;
LABOR LAW COMMITTEE

Basquiñez
non-issuance of employment
contract] 1. Exercises adjudicatory or
appellate power over decisions
 PARTIES TO A DISPUTE: of Labor Arbiters and Regional
1. PRIMARY PARTIES – employer, Directors of the DOLE over
employees, union monetary claims not over
2. SECONDARY PARTIES – voluntary P5,000.00 and all other powers,
arbitrator, agencies of DOLE (BLR, functions and duties through its
VAC), NLRC, Sec. of Labor, Office of divisions.
the President
2.  TRIPARTISM
1. TITL
E II · The NLRC is composed of five (5)
divisions.
NATIONAL LABOR RELATIONS
COMMISSION · Three (3) sectors are
represented in the composition
CHAPTER I of the NLRC.
CREATION AND COMPOSITION · Each division composed of three

commissioners will have
2.  ART. representatives from the
213. NATIONAL LABOR RELATIONS following:
COMMISSION
1. from the public sector-
 NLRC – an administrative body with nominated by the Secretary
quasi-judicial functions and the principal of Labor
government agency that hears & decides 2. workers organizations-
labor-management disputes; attached to nominated by the labor
the DOLE for program & policy federation
coordination only. 3. employer and
management sector-
POWERS of the NLRC – as amended by nominated by the Employer’s
R.A. 6715 Confederation of the
Philippines (ECOP)
 EN BANC
 QUALIFICATIONS OF THE CHAIRMAN AND
1. Promulgating rules & THE COMMISSIONERS:
regulations governing the 1. must be a member of the
hearing & disposition of cases Philippine Bar;
before any of its divisions and 2. must have been engaged in the
regional branches and practice of law in the Philippines
formulating policies affecting for at least 15 years;
its administration and 3. must have experience or
operations. exposure in handling labor
management relations for at
2. Under R.A. 7700: to allow cases least 5 years; and
within the jurisdiction of any 4. preferably a resident of the
division to be heard and region where he is to hold
decided by any other decision office.
whose docket allows the
additional workload. · The appointment of the Chairman
and the Commissioners of the NLRC
 DIVISION are not subject to confirmation by
the Commission on Appointments.
CHAIRPERSONS
cases before any of its divisions and

 QUALIFICATIONS OF EXECUTIVE regional branches, and
LABOR ARBITERS/LABOR ARBITERS:
1. must be members of the b. formulating policies affecting its
Philippine Bar; administration and operations.
2. must have been engaged in the · The Commission may only sit
practice of law in the Philippines en banc for the determination
for at least 7 years; and of policies and NOT for
3. must have experience or purposes of adjudication. (RA
exposure in handling labor 6715)
management relations for at
least 3 years. · Adjudication of cases certified
to the NLRC, or appealed to it
 TERM OF OFFICE OF THE CHAIRMAN, from the decision of its Labor
COMMISIONERS, AND LABOR ARBITERS: Arbiters are referred to and
decided by its five (5) divisions.
· They shall hold office during good
behavior until they reach the age of -Petitions for certiorari (Rule 65)
65 unless removed for causes as against decisions of the NLRC should
provided by law or become henceforth be initially filed with the
incapacitated to discharge the Court of Appeals in strict observance of
function of his office. the doctrine on the hierarchy of courts
as the appropriate forum for the relief
A. EXCLUSIVE AND ORIGINAL desired. The Court of Appeals is
JURISDICTION OF THE NLRC: procedurally equipped to resolve unclear
or ambiguous factual finding, aside from
1. Cases certified to it for compulsory the increased number of its component
arbitration by the Secretary of Labor divisions. (St. Martin’s Funeral Homes
under Art. 263 – CERTIFIED CASES; vs. NLRC; G.R. No. 130866)
2. INJUNCTION CASES under Art. 218 - Findings of facts of a labor tribunal

and 264; AND are accorded the utmost respect by the
3. CONTEMPT CASES courts and are well-nigh conclusive if
supported by substantial evidence.
B. EXCLUSIVE APPELLATE JURISDICTION
OF THE NLRC: - Labor cases are not subject to
Barangay Conciliation since ordinary
1.Cases DECIDED BY LABOR rules of procedure are merely suppletory
ARBITERS under Art 217b of the in character vis-à-vis labor disputes
Labor Code and Sec 10 RA which are primarily governed by labor
8012(Migrant Workers Act); and laws.
2.Cases DECIDED BY THE REGIONAL - The failure of the petitioner to

OFFICES OF DOLE IN THE EXERCISE file a motion for reconsideration of the
OF ITS ADJUDICATORY FUNCTION decision of NLRC before filing a petition
under Art 129 of the Labor Code over for certiorari has in certain instances
monetary claims of workers been held not to be a fatal omission.
amounting to not more that
P5,000.00 - In certain cases however the
filing of a Motion for Reconsideration is
 THE NLRC ONLY SITS EN BANC deemed a condition sine qua non for the
FOR PURPOSES OF: filing of a Petition for Certiorari.
a. promulgating rules and regulations CHAPTER II

governing the hearing and disposition of POWERS AND DUTIES
LABOR LAW COMMITTEE

Basquiñez
7. MONETARY CLAIMS OF
OVERSEAS CONTRACT WORKERS
 ART. 217. JURISDICTION OF under the Migrant Workers Act of
LABOR ARBITERS AND THE COMMISSION 1995; and
 EXCLUSIVE AND ORIGINAL 8. Claims of employees against

JURISDICTION OF LABOR ARBITERS: GOCCs if the latter does not
have an original charter and has
- Except as otherwise provided been incorporated under the
under this Code the Labor Arbiters Corporation Code.
shall have original and exclusive
jurisdiction to hear and decide, within · Although the provision speaks of
30 calendar days after the submission of EXCLUSIVE AND ORIGINAL
the case by the parties for decision JURISDICTION OF labor arbiters,
without extension, even in the absence the cases enumerated may
of stenographic notes, the following instead be submitted to a
cases involving all workers, whether voluntary arbitrator by
agricultural or non-agricultural: agreement of the parties under
Art. 262. The law prefers
1. ULP cases; voluntary over compulsory
arbitration.
2. TERMINATION disputes;
 Cases which must be disposed of
3. If accompanied WITH A by the labor arbiter by referring the
CLAIM FOR REINSTATEMENT, same to the grievance machinery and
those cases that workers may voluntary arbitration:
file involving wages, rates of
pay, hours of work and other a. Disputes on the
terms and conditions of interpretation or implementation of
employment; CBA and
4. Claims for actual, moral, b. those arising from the

exemplary and other forms of interpretation or enforcement of
DAMAGES arising from employer- company personnel policies.
employee relations;
· The labor arbiter and the NLRC have
5. CASES ARISING FROM ANY no jurisdiction over claims filed by
VIOLATION OF ART 264 of this employees against international
Code, including questions agencies such as IRRI, WHO etc.
involving the legality of strikes unless they expressly waive their
and lockouts; immunity. (Lasco vs. UNRFNRE)
6. Except claims for Employees · They also have no jurisdiction over

Compensation, Social Security, illegal dismissal cases of corporate
Medicare and maternity officers which fall under PD 902-A
benefits, ALL OTHER CLAIMS and now fall under the jurisdiction of
ARISING FROM EMPLOYER- the Regular Courts pursuant to the
EMPLOYEE RELATIONS, New Securities Regulation Code.
including those of persons in [Formerly under the jurisdiction of
domestic or household service, the Securities and Exchange
involving an amount exceeding Commission (SEC) (Dily-Daly Nakpil
P5,000.00 regardless of whether vs NLRC)]
accompanies with a claim for
reinstatement;

CHAIRPERSONS
· In the absence of service of charged with the duty to protect

summons or a valid waiver the complainant’s property.
thereof, the hearings and
judgment rendered by the labor c. RECEPTION AT THE HEARING OF
arbiter are null and void. THE TESTIMONIES OF WITNESSES
with opportunity for cross-
 COMPULSORY ARBITRATION: The examination, in support of the
process of settlement of labor disputes allegations of the complaint made
by a government agency which has the under oath as well as testimony in
authority to investigate and make and opposition thereto
award binding to the parties.
d. FINDING OF FACT of the Commission
The NLRC may conduct compulsory to the effect that :
arbitration only in national interest cases · prohibited or unlawful acts
referred to it by the DOLE secretary. have been threatened and will
be committed, or have been
 Labor arbiters’ jurisdiction is committed and will be
employment related. continued unless restrained,
but no injunction or temporary
 ART. 218. POWERS OF THE restraining order shall be
COMMISSION issued on account of any
threat, prohibited or unlawful
 POWERS OF THE NLRC: act, except against the
a. R persons, association or
ule-making power [promulgation organization making the threat
of rules & regulations governing or committing the prohibited
disposition of cases before any of or unlawful act or actually
its divisions/regional offices] authorizing or ratifying the
b. P same after actual knowledge
ower to issue compulsory thereof.
processes [administer oaths, · That substantial and
summon parties, issue irreparable injury to the
subpoenas] complainant’s property will
c. Power to investigate matters and follow
hear disputes within its · That as to each item of
jurisdiction [adjudicatory power relief to be granted, greater
—original & appellate injury will be inflicted upon
jurisdiction over cases] complainant by the denial of
d. Contempt power [218] the relief than will be inflicted
e. Power to issue injunctions and upon the defendants by the
restraining orders granting of the relief
· That complainants has no
 PROCEDURE FOR THE ISSUANCE adequate remedy at law
OF RESTRAINING ORDER/ INJUNCTION: · That public officers charged
a. filing of a verified PETITION with the duty to protect
complainant’s property are
b. HEARING AFTER DUE AND PERSONAL unable or unwilling to furnish
NOTICE has been served in such manner adequate protection.
as the Commission shall direct, to:
a. all known persons against e. Posting of a BOND
whom the relief is sought and
b. also to the Chief Executive IRREPARABLE INJURY: An injury
or other public officials of the which cannot be adequately
province or city within which the compensated in damages due to the
unlawful acts have been nature of the injury itself or the nature
threatened or committed of the right or property injured or when
LABOR LAW COMMITTEE

Basquiñez
there exists no pecuniary standard for before an injunction may issue in a

the measurement of damages. labor dispute.
ADEQUATE REMEDY: One that  THE FOLLOWING CAN ISSUE

affords relief with reference to the INJUNCTIONS/ TRO IN LABOR DISPUTES:
matter in controversy and which is
appropriate to the particular 1. President (ART. 263, g)
circumstances of the case. 2. Secretary of Labor (ART. 263, g)
3. NLRC (218)
 The power of the NLRC to enjoin 4. Labor Arbiters (ART. 217/RULE XI
or restrain the commission of any or all Sec. 1 of IR&R)
prohibited or unlawful acts under Art. 5. Regional Directors
218 of the Labor Code can only be 6. Med- Arbiters
exercised in a labor dispute.
 ART. 219. OCULAR INSPECTION
 REQUISITES BEFORE TRO MAY
BE ISSUED EX PARTE:  The Chairman, any Commissioner,
1. The complainant shall ALLEGE labor Arbiter or their duly authorized
THAT, unless a TRO is issued representatives may, at anytime during
without notice, a substantial working hours:
and irreparable injury to a. Conduct an ocular inspection on
complaint’s property will be any establishment, building,
unavoidable; ship, place or premises,
2. TESTIMONY UNDER OATH is including any work, material,
sufficient, if sustained, to justify implement, machinery,
the Commission in issuing a appliance or any object therein;
temporary injunction upon and
hearing after notice; b. Ask any employee, laborer, or
3. The complainant shall first FILE any person as the case may be
AN UNDERTAKING WITH for any information or date
ADEQUATE SECURITY/BOND in concerning any matter or
an amount to be fixed by the question relative to the object
Commission sufficient to of the investigation
recompense those enjoined for
any loss, expenses or damage  ART. 221. TECHNICAL RULES
caused by the improvident or NOT BINDING AND PRIOR RESORT TO
erroneous issuance of such order AMICABLE SETTLEMENT
or injunction, including all  The NLRC may disregard technical
reasonable costs, together with rules of procedure in order to give life to
a reasonable attorney’s fee, and the constitutional mandate affording
expense of defense against the protection to labor. (Principe vs.
granting of any injunctive relief Philippine-Singapore Transport Services
sought in the same proceeding Inc.)
and subsequently denied by the
Commission.  RES JUDICATA applies only to
· The TRO shall be effective judicial or quasi-judicial proceedings and
for no longer than 20 days and shall NOT to the exercise of administrative
become void at the expiration of powers.
said 20 days counted from the date
of the posting of the bond.  APPROVAL OF AN AMICABLE
· It may be lifted or it may be SETTLEMENT BY A LABOR ARBITER
upgraded to a permanent injunction. An amicable settlement of a labor
· The procedural and dispute should be approved by the labor
substantial requirements of Art 218 arbiter before whom the case is pending
(e) must be strictly complied with after being satisfied that:

CHAIRPERSONS
a. it was VOLUNTARILY ENTERED into the total monetary award adjudged

by the parties and the employees excluding the award
for moral and exemplary damages.
· after having EXPLAINED To demand more than this is
TO THEM THE TERMS AND unlawful.
CONSEQUENCES thereof.
2. Art. 222
PURPOSE: for the employee’s
protection—because the labor arbiter a. Attorney’s fees for CBA
before whom the case is pending would negotiations and conclusion shall
be in a better position than just any be in the amount agreed upon by
other person to personally determine the the parties to be taken from the
voluntariness of the agreement and union funds and not from
certify its validity (Periquet vs. NLRC). individual union members.
 The Rules of Court are applied in b. This article prohibits the

a suppletory character. payment of attorney’s fees only
where the same is effected
 COMPROMISE, as a way of through forced contributions
settling disputes is encouraged from the workers form their own
· through compromise, the funds as distinguished from
parties, by making reciprocal union funds.
concessions, avoid litigation
or put an end to one already c. Neither the lawyer nor the
commenced. union itself may require the
individual workers to assume the
 ART. 222. APPEARANCES AND obligation to pay the attorney’s
FEES fees from their own pockets.
Any agreement to the contrary
APPEARANCE OF NON-LAWYERS shall be null and void.
BEFORE THE COMMISSION:
 ARTICLE 211 VS ARTICLE 222
GENERAL RULE: ONLY lawyers can
appear before the NLRC or a Labor ART. 211 ART. 222
Arbiter Prohibits the Prohibits the
award of payment of
EXCEPTIONS: Non-Lawyers can attorney’s fees attorney’s fees only
which exceed 10% when it is effected
appear ONLY in the following instances:
of the amount of through forced
wages recovered. contribution from the
1. if they represent workers from their
themselves; own funds as
2. if they represent their distinguished from
organization or members union funds
thereof; or PURPOSE: to PURPOSE: to
3. if he is a duly accredited fix the limit on the prevent the
member of the legal aid office amount of imposition on the
duly recognized by the DOJ in attorney’s fees. workers of the duty
The victorious to individually
cases referred thereto by the
party may recover contribute their
latter or by the IBP. in any respective shares in
administrative or the fee to be paid to
ATTORNEY’S FEES: judicial the attorney for his
1. Art. 111 Labor Code (simple proceeding. services to the union.
monetary claim)
The maximum amount to be CHAPTER III
given a lawyer for his legal
assistance rendered which is 10% of
LABOR LAW COMMITTEE

Basquiñez
APPEAL do so renders the questioned

decision final and executory
 ART. 223. APPEAL as to deprive the appellate
court of jurisdiction to alter
 GROUNDS FOR APPEAL: the final judgment of the
RDs and LAs. (Aboitiz
1. If there is prima facie evidence Shipping Employees
of abuse of discretion on the part of Association vs. Trajano)
the Labor Arbiter  REQUISITES FOR THE
2. If the decision, order or award PERFECTION OF AN APPEAL TO THE
was secured through fraud or NLRC:
coercion, including graft and 1. Filing of A VERIFIED
corruption; MEMORANDUM OF APPEAL within
3. If made purely on questions of the required period of appeal;
law; and 2. In case of monetary award, when
4. If serious errors in the findings of the appellee is the employer he
facts are raised which would cause should file an APPEAL BOND
grave or irreparable damage or corresponding to the monetary
injury to the appellant. award excluding awards for moral
and exemplary damages and
 PERIODS WITHIN WHICH TO attorney’s fees.
APPEAL: · Where the employer
failed to post a bond to
A. decisions of the regional director: perfect its appeal, the
remedy of the employee is a
· within 5 calendar days from motion to dismiss the
receipt of the order [129 LC— appeal, NOT a petition for
Recovery of wages and simple mandamus.
money claims of the amount not · The intention of the
exceeding P5,000.00]. lawmakers is to make the
bond an indispensable
B. decisions of the labor arbiter: requisite for the perfection
of an appeal by the
· within 10 calendar days from employer.
the receipt of the decision. 3. Appeal fee of P150;
· The appeal must be under oath 4. Proof of service - furnish the
and must state specifically the other party with a copy of the
grounds relied upon and the memo of appeal.
supporting arguments.
· Where the 10th day falls on a · Failure to give a copy of
Saturday, Sunday or legal the appeal to the appellee
holiday, the appeal may be filed within 10 days is not fatal IF
on the next business day. (Rules the latter was not
of Procedure of NLRC) prejudiced by the delay in
the service of said copy of
 PERIOD TO APPEAL—NOT the appeal—technical rules
EXTENDIBLE must yield to the broader
· It is the policy of the state interest of substantial
to settle expeditiously labor justice. (Modern Fishing
disputes. Gear Labor Union vs. Noriel)
· The perfection of an appeal · A mere notice of appeal
within the statutory/ does not stop the running of
reglementary period is not the reglementary period of
only mandatory but also appeal.
jurisdictional and failure to
CHAIRPERSONS
 EXECUTION PENDING APPEAL - the

decision of the labor arbiter ordering  A petition for relief from the
the reinstatement of a dismissed or decision of the labor arbiter must
separated employee shall be strictly comply with 2 reglementary
immediately executory insofar as the periods:
reinstatement aspect is concerned and
the posting of an appeal bond by the 1. The petition must be filed within
employer shall not stay such 60 days from knowledge of the
execution. judgment; and
2. The petition must be filed within
· There is no need for a a fixed period of 6 months from
motion for the issuance of entry of such judgment.
writ of execution on the · Petitions filed beyond
reinstatement order as it is said period will no longer be
self-executory. (Pioneer entertained.
Texturizing Co. vs. NLRC)
 APPEAL FROM THE DECISION OF THE
 Perfection of appeal within the NLRC:
reglementary period is both
MANDATORY and JURISDICTIONAL. No law allows an appeal from a
(ACDA vs NLRC; Volkschel vs NLRC) decision of the Secretary of Labor, or
the NLRC, or of a voluntary arbitrator.
 Non-service of the copy of the In these cases, the special civil action of
appeal/appeal memorandum to the certiorari, prohibition or mandamus
adverse party is not a jurisdictional under Rule 65 of the Rules of Court may
effect and does not justify dismissal of be lodged with the Court of Appeals.
the appeal. (St. Martin’s Funeral Home vs. CA)
 No Motion for Reconsideration is
allowed for any order, decision
 AMOUNT OF APPEAL BOND: amount or award of a Labor Arbiter.
equal to the monetary award exclusive However a Motion for
of damages (moral and exemplary) plus Reconsideration of a Labor
attorney’s fees. Arbiter’s decision, award or
order which has all the elements
 OPTIONS OF THE EMPLOYER IN of an appeal may be treated as
COMPLYING WITH AN ORDER OF appeal.
REINSTATEMENT WHICH IS  Only one Motion for
IMMEDIATELY EXECUTORY: Reconsideration of the decision,
1. He can ADMIT THE DISMISSED award or order of the
employee back to work under the commission on appealed cases
same terms and conditions prevailing before it.
prior to his dismissal or separation or
to a substantially equivalent position  ART 224. EXECUTION OF
if the former position is already DECISIONS, ORDER, OR AWARDS
filled up, OR
The decision of the Secretary of
2. He can REINSTATE THE Labor, the Commission, the Bureau or
EMPLOYEE MERELY IN THE Regional Director the Labor Arbiter, the
PAYROLL WITH PAYMENT OF THE Med-Arbiter or the Voluntary Arbitrator
ACCRUED SALARIES. shall be final and executory after 10
· Failure to exercise one calendar days from receipt thereof by
of the foregoing options may the parties and shall be executory
be compelled under pain of within ten (10) years.
contempt and the employer
may be made to pay instead · The foregoing may, upon its
the salary of the employee. own initiative or on motion of
LABOR LAW COMMITTEE

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any interested party, issue a

writ of execution on a 3. all DISPUTES, GRIEVANCES OR
judgment within 5 years from PROBLEMS ARISING FROM OR
the date it becomes final and AFFECTING LABOR MANAGEMENT
executory. RELATIONS IN ALL WORKPLACES
· An independent action is WHETHER AGRICULTURAL OR NON-
required for the execution of the AGRICULATURAL.
final judgement within the next
of following 5 years [ Phil. · The parties may however, by
National Railways vs NLRC (177 agreement, settle their
SCRA740, Sept. 19, 1989)] differences by submitting their
· The immediate execution of case to a voluntary arbitrator
judgment should be undertaken rather than taking the case to
only when the monetary award the BLR.
had been carefully and
accurately determined by the  CASES WHERE THE BLR HAS NO
NLRC and only after the JURISDICTION:
employer is given the Those arising from the
opportunity to be heard and to implementation or interpretation of
raise objections to the collective bargaining agreements which
computation. shall be subject of grievance procedure
and/or voluntary arbitration.
TITLE III
BUREAU OF LABOR RELATIONS  INTRA-UNION DISPUTES – refers to
any conflict between and among union
members, including grievances arising
 ART. 226. BUREAU OF LABOR from any violation of the rights and
RELATIONS conditions of membership, violation of or
disagreement over any provision of the
Pursuant to E.O. 126, the NATIONAL union’s constitution and by-laws, or
CONCILIATION AND MEDIATION BOARD disputes arising from chartering or
(NCMB) has absorbed the conciliation, affiliation.
mediation and voluntary arbitration
functions of the BLR.  MED-ARBITER- an officer in the
regional office or bureau authorized to
· Jurisdiction over labor- hear, conciliate, and decide
management problems or representation cases or assist in the
disputes is also exercised by disposition of intra or inter-union
other offices such as the DOLE disputes.
regional offices, and the Office
of the Secretary, NLRC, POEA, COVERAGE OF INTER/INTRA-UNION
OWWA, SSS-ECC, the regional DISPUTES (Sec. 1 Rule XI DO 40-03)
wage and productivity boards, a. cancellation of registration of a
NWPC, and even the regular labor organization filed by its
courts over intra-corporate members or by any other labor
disputes. organization;
 EXCLUSIVE AND ORIGINAL b. conduct of election of union and
JURISDICTION OF THE BLR worker’s association
officers/nullification of election
-to act at its own initiative or upon of union and worker’s
the request of either or both parties on association officers;
all: c. audit/accounts examination of
1. INTRA- union conflicts union or worker’s association
funds;
2. INTER- union conflicts d. deregistration of CBA;

CHAIRPERSONS
e. validity/invalidity of union 1.The complaint must be signed by

affiliation or disaffiliation; at least 30% of the entire
f. validity/invalidity of membership of the union and
acceptance/non-acceptance for 2.It must also show exhaustion of
union membership; administrative remedies.
g. validity/invalidity of
impeachment/ expulsion of B. INVOLVING A MEMBER ONLY - In such
union and worker’s association case only the affected member may
officers; file the complaint.
h. validity/invalidity of voluntary
recognition; · Redress must first be sought
i. opposition to application for within the union itself in
union and CBA registration; accordance with its constitution
j. violations of or disagreements and by-laws EXCEPT under any
over any provision in a union or of the following circumstances:
worker’s association constitution a. futility of intra-union remedies
and by-laws; b. improper expulsion procedure
k. disagreements over chartering or c. undue delay in appeal as to
registration of labor constitute substantial injustice
d. the action is for damages
organizations and CBAs;
e. lack of jurisdiction of the
l. violations of the rights and investigating body
conditions of union or worker’s f. action of the administrative
association membership; agency is patently illegal,
m. violations of the rights of arbitrary, and oppressive
legitimate labor organizations, g. issue is purely a question of law
except interpretation of CBAs; h. where the administrative agency
n. such other disputes or conflicts had already prejudged the
involving the rights to self- case
i. where the administrative agency
organization, union membership,
was practically given the
and collective bargaining – opportunity to act on the case but it
did not.
1. between and among · Imposition of fees by the union
legitimate labor affects the entire membership,
organizations therefore it requires that the
2. between and among complaint should be signed by at
members of a union or least 30% of the membership of
worker’s association the union.
EXTENDED COVERAGE (Section 2 Rule XI

DO 40-03)
Other related labor relations
disputes shall include any conflict
between a labor organization and the
employer or any individual, entity, or
group that is not a labor organization or
worker’s association. This includes:
1. cancellation of registration
of unions and workers
associations; and
2. a petition for interpleader
 SPECIAL REQUIREMENTS AS TO THE

FILING OF CASES:
A. INVOLVING ENTIRE MEMBERSHIP
LABOR LAW COMMITTEE

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3.  INTER-UNION DISPUTES Bureau

WHERE FILED Regional Office or to the
-refers to any conflict between and
BLR, where the
among legitimate labor organizations complaint originated
involving representation questions for (records are transmitted
purposes of collective bargaining or to to the BLR or Sec.
any other conflict or dispute between Within 24 hours from
legitimate labor organizations based on receipt of the
any violations of their rights as labor memorandum of appeal)
organizations.
7. WH 1. For grounds under Sec. 1:
EFFECTS OF FILING/PENDENCY OF O a. any LLO
b. member(s) thereof
INTER/INTRA-UNION DISPUTE AND
specially concerned
OTHER LABOR RELATIONS DISPUTES 2. For grounds under Sec. 2—any
(Section 3 Rule XI DO 40-03) party-in-interest
- The rights, relationships and obligations of 8. WH 1. Regional Office that issued its
the parties litigants against each other and certificate of registration or
ERE FILED
other parties-in-interest prior to the certificate of creation of
institution of the petition shall continue to chartered local- If it involves labor
unions with independent
remain during the pendency of the petition registrations, chartered locals,
and until the date of finality of the decision worker’s association, its officers or
rendered therein. Thereafter, the rights, members
relationships and obligations of the parties 2. Directly with the Bureau—If it
litigants against each other and other parties- involves a Federation/National
in-interest shall be governed by the decision Unions/Industry Unions, its
so ordered. officers or members
- The filing or pendency of any inter/intra- 9. FOR 1. in writing
2. verified under oath
union disputes is not a prejudicial question to MAL 3. contains the following
any petition for certification election and REQUIRE- averments
shall not be a ground for the dismissal of a MENTS a. name, address and other
petition for certification election or personal circumstances of the
suspension of proceedings for certification complainant(s) or petitioner(s);
election. b. name, address and other
personal circumstances of the
 SUMMARY OF RULES ON respondent(s) or person(s)
charged;
INTRA/INTER-UNION DISPUTES (Rule XI c. nature of the complaint or
DO 40-03) petition;
d. facts and circumstances
 MODES OF APPEAL IN INTRA/INTER- surrounding the complaint or
petition;
UNION DISPUTES (Rule XI DO 40-03) e. cause(s) of action or specific
HOW (formal 1. Under oath violation(s) committed;
requirements) 2. Consist of a f. a statement that the
memorandum of appeal administrative remedies provided
3. Based on either of for in the constitution and by-laws
the following grounds: -have been exhausted or
a. Grave abuse of -such remedies are not
readily available to the
discretion
complainant(s) or
b. Gross violation petitioner(s) through no fault
of the Rules of his/their own or
4. With supporting -compliance with such
arguments and evidence administrative remedies does
PERIOD Within 10 days from not apply to complainant(s) or
receipt of decision petitioner(s);
g. relief(s) prayed for;
TO WHOM 1. Bureau of Labor h. certificate of non-forum
APPEALABLE Relations—if the case shopping; and
originated from the Med i. other relevant matters
Arbiter/Regional
Director  DETERMINATION OF EMPLOYER-
2. Sec. Of Labor—if the
case originated from the
EMPLOYEE RELATIONSHIP:
CHAIRPERSONS
the process of execution.

- Since the BLR has the original and (Jesalva vs. Bautista)
exclusive jurisdiction to decide,
inter alia, all disputes, grievances or
problems arising from or affecting
labor-management relations in all
workplaces, necessarily, in the
exercise of this jurisdiction over FORMAL REQUIREMENTS OF A VALID
labor-management relations, the COMPROMISE AGREEMENT:
Med-Arbiter has the authority, 1. in writing
original and exclusive, to 2. signed in the presence of the regional
determine the existence of an director or his duly authorized
employer-employee relationship. representative.
(MY San Biscuits, Inc. vs. Laguesma
G.R. No. 9511, 22 April 1991) WITH VS. Without Assistance of DOLE-
COMPROMISE AGREEMENTS
· In cases where there is Without assistance With the
overlapping of jurisdiction, of DOLE assistance of
determine the principal issue. DOLE
The agency that has jurisdiction a.
thereon may decide on the VALIDITY/BINDING
incidental issues. EFFECT
- Valid and binding - Valid and binding
4.  ADMINISTRATIVE upon the parties upon the parties
FUNCTIONS OF THE BLR: b. REPUDIATION
- Can be - Can no longer be
1. The REGULATION OF repudiated by the repudiated—
REGISTRATION of the labor unions; parties by going to becomes final and
2. The KEEPING OF A REGISTRY of the Commission binding upon the
labor unions; parties upon
3. The maintenance of a FILE OF NOTE: ULP cases execution EXCEPT
CBAS. ART. 227. COMPROMISE are not subject to a. in case of non
AGREEMENTS; and compromise. compliance
4. The maintenance of a file of all with the
settlements or final decisions of the compromise
Supreme Court, Court of Appeals, agreement;
NLRC and other agencies on labor or
disputes. if there is
1. prima facie
2.  evidence that the
REQUIREMENTS: settlement was
a. must be freely entered into; obtained through
b. must not be contrary to law, morals fraud,
or public policy; and misrepresentation,
c. must be approved by the authority or coercion
before whom the case is pending [see
discussion on article 221—approval of OPTIONS WHEN COMPROMISE
labor arbiter of an amicable AGREEMENT IS VIOLATED:
settlement in a case before him. 1. enforce compromise by writ of
· May be effected at any stage execution
of the proceedings and even 2. regard it as rescinded and insist upon
when there is already a final original demand.
executory judgment (2040 NCC).
· Cannot be entered into when 3. 
the final judgment is already in REQUIREMENTS OF A VALID QUITCLAIM:
LABOR LAW COMMITTEE

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1. The quitclaim must be validity to such contract. Once it is duly

VOLUNTARILY ARRIVED at by the entered into and signed by the parties, a
parties; CBA becomes effective as between the
2. It must be WITH THE ASSISTANCE of parties regardless of whether or not the
the Bureau of Labor Standards, same has been certified by the BLR.
Bureau of Labor Relations or any
representative of the DOLE; and
3. The CONSIDERATION MUST BE 109.  ART 232. PROHIBITION ON
REASONABLE (required only when CERTIFICATION ELECTION
entered without the assistance of
DOLE) CONTRACT BAR RULE: provides that
while a valid and registered CBA is
· Dire necessity is not an subsisting for a fixed period of 5 years ,
acceptable ground for annulling the Bureau is not allowed to hold an
the releases, especially in the election contesting the majority status
absence of proof that the of the incumbent union except during
employees were forced to the sixty (60) day period immediately
execute them. (Veloso vs. DOLE) prior to its expiration, which period is
called the freedom period.
 WAIVER OF
REINSTATEMENT – like waivers of  The existence of the CBA bars the
money claims, a waiver of holding of an inter-union electoral
reinstatement must be regarded as a contest and the filing of the Petition for
personal right which must be Certification Election except within the
exercised personally by the workers freedom period.
themselves. (Jag & Haggar Jeans and
Sportswear Corp. vs. NLRC) PURPOSE: to minimize union
“politicking” until the proper time
 ART 231. REGISTRY OF UNIONS comes.
AND FILE OF COLLECTIVE 110.
AGREEMENT 111.  ART 233. PRIVILEGED
COMMUNICATION
· The CBA is more than a contract,
it is highly impressed with public PRIVILEGED COMMUNICATION: Any
interest for it is an essential statement of such privacy that the law
instrument to promote industrial exempts the person receiving the
peace. information from the duty to disclose it.
· Must be filed directly with the
Bureau or the Regional Offices of  Information and statements made at
DOLE within thirty (30) days conciliation proceedings shall be treated
from execution. as privileged communication and shall
· An UNREGISTERED CBA does not not be used as evidence in the
bar certification election Commission.
[contract bar rule will not apply
in the absence of registration. · Conciliators and similar officials
[See discussion on Arts. 253 & may not testify in any court or
253-A] body regarding any matters
taken up at conciliation
 Registration of the CBA is not a proceedings conducted by them.
requisite for its validity.
LIBERTY FLOUR MILLS EMPLOYEES v.

LFM, INC. 180 SCRA 668
 The certification of the CBA by the
BLR is not required to put a stamp of
CHAIRPERSONS
PURPOSE OF FORMATION OF LABOR

UNIONS: for securing a fair and just
wages and good working conditions for
the laborers; and for the protection of
labor against the unjust exactions of
capital
TITLE IV MODES OF ACQUIRING LEGITIMACY FOR

1. LABOR ORGANIZATIONS
2. LAB
OR ORGANIZATIONS 1. Registration with the BLR
(Independent Union)
CHAPTER I 2. Affiliation with a legitimate labor
federation
REGISTRATION AND CANCELLATION
[REGISTRATION REQUIREMENTS FOR
LABOR ORGANIZATIONS (as amended by
DO 40-03)]
 ART. 234. REQUIREMENTS OF 3. Application for registration
REGISTRATION 4. Attachments
LABOR ORGANIZATION - Any union or  name of the applicant labor
association of employees which exists in union, its principal address;
whole or in part for the purpose of:  the name of its officers and their
a. collective bargaining or respective addresses;
b. of dealing with employer
concerning terms and conditions of o approximate number of
employment. employees in the bargaining
· It is the agent of the unit where it seeks to
employees of an appropriate operate, with a statement
bargaining unit. that it is not reported as a
chartered local of any
PRINCIPLE OF AGENCY APPLIED federation or national union;
· Principal – employees o the minutes of the

· Agent – local/chapter organizational meeting(s)
· Agent of agent – federation and the list of employees
who participated in the said
LEGITIMATE LABOR ORGANIZATION or meeting(s);
LABOR UNION
o the name of all its members
– any labor organization duly registered comprising at least 20% of
with the Department of Labor and the employees in the
Employment, and Bureau of Labor bargaining unit;
Relations.
o the annual financial reports
· Not every legitimate labor if the applicant has been in
organization can act as existence for one or more
bargaining representative and be years, unless it has not
certified as such. This is true collected any amount from
only of a union that has won in the members, in which case
certification election or has been a statement to this effect
voluntarily recognized by the shall be included in the
employer. application;
LABOR LAW COMMITTEE

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o the applicant’s constitution  MINISTERIAL DUTY OF THE BLR

and by-laws, minutes of its COMPELLABLE BY MANDAMUS- to
adoption or ratification, and review the application for registration
the list of the members who and not the issuance of a Certificate of
participated in it. The list of Registration.
ratifying members shall be
dispensed with where the - After a labor organization had filed
constitution and by-laws was the necessary papers and documents for
ratified or adopted during registration, it becomes mandatory for
the organizational meeting. the BLR to check if the requirements
In such a case, the factual under Article 234 have been sedulously
circumstances of the complied with. If its application for
ratification shall be recorded registration is vitiated by falsification
in the minutes of the and serious irregularities, especially
organizational meeting(s). those appearing on the face of the
(These are called reportorial application and the supporting
requirements) documents, a labor organization should
be denied recognition as a legitimate
 The application for registration of labor organization. (Progressive
labor unions xxx, shall be certified under Development Corporation-Pizza Hut vs.
oath by its Secretary or Treasurer, as the Laguesma et al., GR No. 115077, April
case may be, and attested by its 18, 1997)
president.
112.  PURPOSE OF REGISTRATION
 The attachments must now be in - Registration with the BLR is the
one(1) original copy and two (2) operative act that gives rights to a labor
duplicate copies which shall accompany organization.
the application or notice, and submitted
to the Regional Office or the Bureau.
· It is the fact of being registered
with the DOLE that makes a
 A prescribed registration fee must be
labor organization legitimate in
paid before the issuance of the
the sense that it is clothed with
certificate of registration
legal personality to claim
representational and bargaining
Where to file application for
rights enumerated in Article 242
registration:
or to strike or picket under
Article 263.
1. For registration of independent labor
· The requirement of registration
unions, chartered locals, worker’s
is NOT a curtailment of the
associations shall be filed with the
right to association. It is merely
Regional office where the applicant
a condition sine qua non for the
principally operates. It shall be
acquisition of legal personality
processed by the Labor Relations Division
by labor organizations,
at the Regional office.
associations or unions and the
possession of the rights and
2. Applications for registration of
privileges granted by law to
federations, national unions or workers’
labor organizations.
associations operating in more than one
· A valid exercise of police power
region shall be filed with the bureau or
since the activities in which
the regional offices, but shall be
labor organizations, associations,
processed by the bureau.
or unions of workers are engaged
affect public interest, which
should be protected. (PAFLU vs.
Sec. Of Labor)

CHAIRPERSONS
FEDERATION- any labor organization is the incumbent bargaining

with at least 10 locals/chapters or agent.
affiliates each of which must be duly
certified or recognized as the sole and  A union of supervisory employees may
exclusive collective bargaining agent of affiliate with a national federation of
the employer they represent. labor organizations of rank and file
employees PROVIDED that:
 REQUIREMENTS BEFORE A
FEDERATION CAN BE ISSUED A a. the federation is not actively
CERTIFICATE OF REGISTRATION: involved in union affairs in the
company; and
Aside from the application, which b. the rank and file employees are not
must be accompanied with the directly under the control of the
requirements for registration of a labor supervisors
registration, the application should also  ONCE AFFILIATED, A LOCAL
be accompanied by the following: UNION MAY DISAFFILIATE FROM THE
1. Proof of affiliation of at least 10 FEDERATION.
locals or chapters, each of which
must be a duly recognized sole and
exclusive collective bargaining agent
in the establishment or industry in 1.
which it operates, supporting the
registration of such applicant
federation or national union;
2. The names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.
 A LOCAL UNION MAY AFFILIATE

WITH A FEDERATION - The procedure of
affiliation would depend on whether the
union is independently registered or not.
REQUIREMENTS OF AFFILIATION (as

amended by DO 40-03)
1. Report of affiliation of
independently registered labor union
2. Attachments:
a. resolution of the labor union’s
board of directors approving the
affiliation;
b. minutes of the general
membership meeting approving
the affiliation;
c. the total number of members
comprising the labor union and
the names of members who
approved the affiliation;
d. the certificate of affiliation
issued by the federation in favor
of the independently registered
labor union; and
e. written notice to the employer
concerned if the affiliating union
LABOR LAW COMMITTEE

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INDEPENDENTLY UNREGISTERED
INDEPENDENT REGISTERED
CHARTERING
REGISTRATION
a.HOW TO -by signing a contract of -by application of the union
 Obtained
AFFILIATE A
affiliation duly with the federation for the
by union registered issuance of a charter
organizers federation/na certificate to be submitted to
in an tional union the Bureau accompanied by
enterprise issues a the following:
through charter to a a. Copies of its constitution
and by-laws
their own union in an
b. Statement of the set of
action enterprise officers and
and registers Books of accounts, all of
the charter which must be certified by
with the the Secretary/Treasurer and
regional attested to by the President.
office or the In such case, the union
BIR. becomes a local chapter of
the Federation.
 Indepen-  Chapter/local
dent
union
b. EFFECT OF - would not affect its being a upon severance, it would
 With legal
DISAFFILIATION legitimate
No labor
legal organization cease to be a legitimate labor
personalit
TO THE UNION andpersonality
therefore
of it would organization and would no
y of its
[local] continue
its own to as have legal longer have legal personality
personality and to possess all and the rights and privileges
own long as it has
the rights and privileges of a granted by law to legitimate
not
legitimateavailed
labor organization. organization, unless the local
itself of chapter is covered by a duly
independent registered collective
registration. bargaining agreement. In the
latter case, the local or
 Applicatio  Charter chapter will not lose its legal
n for certificate is personality until the
registratio issued by a expiration of the CBA. After
the CBA expires it will lose its
n is filed federation or
legal personality unless it
with and national registers as an independent
will be union is filed union.
acted with the
upon by regional
the DOLE
c. EFFECT OF - office or BLR CBA would
an existing The CBA would continue to be
regional
DISAFFILIATION continue
with 30todaysbe valid as the valid. The local chapter will
office
TO THE CBA labor
after organization
the can not lose its personality until
where the continue
issuance administering
of the the expiration of the CBA.
CBA After the CBA expires the
applicant’ the charter
local union looses its
s principal certificate. personality, unless it registers
office is anew.
located.

CHAIRPERSONS
d. ENTITLEMENT -labor organization is entitled legitimate purpose

- union duesother
maythan
no collective
longer
WHEN
TO DUES to the union dues and notbargaining.
TO DISAFFILIATE
UNION the be collected as there would
AFTER federation from which the no longer any labor union that
GENERAL RULE: A labor
DISAFFILIATION labor union may organization
 ART.is236. allowed
DENIALto collect such
OF REGISTRATION;
disaffiliated. union dues from the
disaffiliate from the mother union to APPEAL
employees.
form an independent union only during Note: Follow the principle of
the 60-day freedom period - Decisions
agency of between
the BLR federation
denying the
immediately preceding the expiration of registration of a labor organization is
and local.
the CBA. appealable to the – Secretary
· Principal employeesof Labor
within 10 calendar days from receipt of
· Agent – local/chapter
EXCEPTION: DISAFFILIATION BY the decision,
Agent ofon agent
grounds of:
– federation
MAJORITY
a. grave abuse of discretion; or
· This happens when there is a b. gross incompetence
substantial shift in allegiance on - even before the onset of the
the part of the majority of the freedom period, disaffiliation may
members of the union. In such still be carried out, but such
a case, however, the CBA disaffiliation must be effected by a
continues to bind the members majority of the union members in
of the new or disaffiliated and the bargaining unit.
independent union up to the
CBA’s expiration date. decision of the regional office or the
bureau denying the application for
LIMITATION: disaffiliation should be in registration shall be:
accordance with the rules and 1. in writing
procedures stated in the Constitution 2. stating in clear terms the reason for
and by-laws of the federation. the decision
3. applicant union must be furnished a
· A prohibition to disaffiliate in copy of said decision
the Federation’s constitution or  ART. 238. CANCELLATION OF
by-laws is valid—intended for its REGISTRATION; APPEAL
own protection.
The certificate of registration of
 REVOCATION OF CHARTER BY THE any legitimate labor organization shall
FEDERATION - by serving the be cancelled by the BLR if it has reason
local/chapter a verified notice of to believe, after due hearing, that the
revocation, copy furnished the Bureau on said labor organization no longer meets
the ground of disloyalty or such other one or more of the requirements
grounds as may be specified in its prescribed by law.
constitution or by-laws.
 GROUNDS FOR CANCELLATION:
1. Failure to comply with any of the
requirements prescribed under
· The revocation shall divest the Arts. 234 (requirements for
local chapter of its legal registration of a labor union) &
personality upon receipt of the 237 (add’l. reqts. federation
notice by the Bureau, unless in registration) of the Code.
the meantime the local chapter
has acquired independent 2. Violation of any of the provisions
registration. (Rule VIII Section 5 of Art. 239 (grounds for
of the IRR) cancellation of union
registration) of the Code
WORKER’S ASSOCIATION: Association
of workers for the mutual aid and 3. Commission of any of the acts
protection of its members or for any enumerated under Art. 241
(rights and conditions of
LABOR LAW COMMITTEE

Basquiñez
membership) of the code- No

petition for cancellation based
on this ground 0may be granted
unless supported by at least 30%
of all the members of the
respondent labor organization or  EFFECT OF CANCELLATION OF
worker’s association. REGISTRATION IN THE COURSE OF
PROCEEDINGS
· A pronouncement as to - Where a labor union is a party
the illegality of the in a proceeding and later it loses its
strike is not within the registration permit in the course or
meaning of Art. 239 of during the pendency of the case, such
the Code which provides union may continue as a party without
for the grounds for need of substitution of parties, subject
cancellation of union however to the understanding that
registration. whatever decision may be rendered
therein will be binding only upon those
members of the union who have not
signified their desire to withdraw from
the case before its trial and decision on
the merits. [Principle of Agency applied
—the employees are the principals, and
the labor organization is merely an agent
of the former, consequently, the
cancellation of the union’s registration,
would not deprive the consenting
member-employees of their right to
continue the case as they are the
considered as the principals]
MODES OF APPEAL  ART 239. GROUNDS FOR
CANCELLATION OF UNION
10. DENIAL or CANCELLATION REGISTRATION
BY:
11.  GROUNDS FOR CANCELLATION OF
12. A. Regional Office UNION REGISTRATION:
· transmit records within 24
hours from receipt of Memo of A. FRAUDULENT ACTS
Appeal
· BUREAU decides within 20 1. Misrepresentation, False statement
days from receipt of records or Fraud in connection with
· SUPREME COURT- Rule 65 [RATIFICATION OF CONSTI/BY-
B. Bureau LAWS]:
· transmit records within 24
hours from receipt of memo a. the ADOPTION OR
of appeal RATIFICATION of the
· SEC. OF DOLE decides within constitution and by-laws or
20 days from receipt of amendments thereto,
records b. the MINUTES of ratification,
· SUPREME COURT- Rule 65 and
c. the LIST OF MEMBERS who took
*Appeal by memo of appeal part in the ratification.
within 10 days from receipt of
notice. 2. Misrepresentation, false statement
GROUNDS: or fraud in connection with the
1. Grave abuse of discretion [ELECTION PAPERS]:
2. Violation of rules as
amended. 2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT
CHAIRPERSONS
a. ELECTION of officers, duly signed individual written

b. MINUTES of the election of authorization of the members
officer and the list of voters, or [UNLAWFUL ASSESSMENTS];
c. failure to submit these
documents together with the list of CANCELLATION OF REGISTRATION
the newly elected/appointed A. FOR:
officers and their postal addresses 1. Legitimate individual labor
within 30 days from election union.
2. Chartered local
113. B. INACTION OR OMISSION 3. Worker’s association
1. Failure to submit the following · WHERE TO FILE

documents [RATIFICATION OF Regional Director who has
CONSTI/BY-LAWS]: jurisdiction over the place
a. the adoption or ratification of where respondent principally
the constitution and by-laws or operates (30 days to decide).
amendments thereto,
b. the minutes of ratification, and · WHO MAY FILE
the list of members who took - Any party in interest, if ground
part in the ratification is:
*Within 30 days from adoption or a. Failure to comply with any of
ratification of the constitution and the requirements under Arts.
by-laws or amendments thereto. 234, 237 and 238 LC
2. Failure to submit the Annual b. Violation of any provision under
Financial report to the Bureau within Art. 239, LC
30 days after the closing of every Take note of the cancellation
fiscal year and misrepresentation, proceedings if violation is D and
false entries and fraud in the J of Art. 239, LC
preparation of the financial report
itself; REPORTING REQUIREMENTS OF LABOR
3. Failure to submit a LIST OF UNIONS AND WORKERS ASSOCIATIONS
INDIVIDUAL MEMBERS of the Bureau (Rule V DO 40-03)
once a year or whenever required by - It shall be the duty of every legitimate
the Bureau; and labor union and workers’ association to
4. Failure to comply with the submit to the Regional Office or Bureau
REQUIREMENTS UNDER ARTICLES which issued its certificate of
237. registration or certificate of creation of
chartered local, as the case may be, two
114. C. UNLAWFUL ACTS (2) copies of each of the following
1. Acting as a labor contractor or documents:
engaging in the “CABO” SYSTEM, or a. any amendment to its
otherwise engaging in any activity constitution and by-laws and the
prohibited by law; minutes of adoption or
2. Entering into collective bargaining ratification of such amendments,
agreements which provide terms and within 30 days from its adoption
conditions of employment below or ratification;
minimum standard established by b. annual financial reports within
law [CBA-BELOW MINIMUM 30 days after the close of each
STANDARDS]; (Sweetheart fiscal or calendar year;
Agreements) c. updated list of newly-elected
3. Asking for or ACCEPTING officers, together with the
ATTORNEY’S FEES OR NEGOTIATION appointive offices or agents who
FEES from the employers; are entrusted with the handling
4. Other than for mandatory activities of funds, within 30 days after
under this Code, checking off special each regular or special election
assessment or any other fees without of officers, or from the
LABOR LAW COMMITTEE

Basquiñez
B. FOR:
1. Federations
2. National or Industry unions
3. Trade union centers
· WHERE TO FILE
- Bureau Director ( 30 days to
the said reportorial
decide)
requirements and to submit
proof thereof to the Bureau
· WHO MAY FILE within 10 days from receipt
- Only the members of the thereof
Labor Organization concerned 2nd Notice
if grounds are actions Where no response is
involving violations of Art. received by the Bureau
241, subject to the 39% rule within 30 days from the
release of the 1st notice,
occurrence of any change in the another notice for
officers of agents of the labor compliance shall be made
organization or workers by the Bureau, with warning
that failure on its part to
association’
comply with the reportorial
d. updated list of individual requirements within the
members of chartered locals, time specified shall cause
independent unions and workers’ the continuation of the
associations within 30 days after proceedings for the
the close of each fiscal year; and administrative cancellation
e. updated list of its chartered of its registration
locals and affiliates or member 3rd Notice
organizations, CBAs executed Where no response is again
and their effectivity period, in received by the Bureau
within 30 days from release
the case of federations or of the 2nd notice, the Bureau
national unions, within 30 days shall cause the publication
after the close of each fiscal of the notice of cancellation
year, as well as the updated list of registration of the labor
of their authorized organization in 2
representatives, agents or newspapers of general
signatories in the different circulation.
regions of the country.
When no response is
received by the Bureau
 RULES ON ADMINISTRATIVE within 30 days from the
CANCELLATION OF CERTIFICATE OF date of publication or when
REGISTRATION OF LLOs DUE TO NON- the Bureau has verified the
COMPLIANCE WITH THE REPORTORIAL dissolution of the labor
REQUIREMENTS: organization, it shall order
115. the cancellation of
116. W Failure to comply with its registration of the labor
HEN legal duty to submit the organization AND cause its
de-listing from the roster of
PROPER documents required to
legitimate labor
be submitted under Rule organizations
V of DO 40-03 for 5
consecutive years
WHO MAY 1. Motu propio by the

1. CHAPTER II
FILE THE Bureau
PETITION 2. Any party-in-interest RIGHTS AND CONDITIONS OF
st
1 Notice MEMBERSHIP IN A LABOR
THREE- Bureau shall send by ORGANIZATION
NOTICE registered mail with return
REQUIRE card notice for compliance
2.  ART.
indicating the documents it
MENT failed to submit and the
241. RIGHTS AND CONDITIONS OF
corresponding period in MEMBERSHIP IN A LABOR
which they were required, ORGANIZATION
with notice to comply with

CHAIRPERSONS
 GENERAL GROUPINGS OF THE 243 on persons who are not granted the
RIGHTS OF THE UNION MEMBERS: right to self-organization):
1. Political right - the right to vote and 1. Subversives or those engaged in

be voted for, subject to lawful subversive activities [Art.241
provisions on qualifications and (e)]
disqualifications. 2. Persons who have been convicted
of a crime involving moral
2. Deliberative and Decision-Making turpitude shall not be eligible for
Right - the right to participate in election as union officer or for
deliberations on major policy appointment to any position in the
questions and decide them by secret union. [Art. 241 (f)]
ballot.
 In general, a union is free to
3. Rights Over Money Matters - the select its own members, and no
right of the members: person has an absolute right to
membership in a union.
a. against imposition of excessive
fees; LIMITATIONS [see discussion on union
b. right against unauthorized security arrangements under Art. 248]:
collection of contributions or
unauthorized disbursements; a. The labor org. cannot compel
c. to require adequate records of employees to become members of
income and expenses; their labor organization if they are
d. to access financial records; already member of rival union.
e. to vote on officers
compensation; b. persons mentioned in Art. 241(e)
f. to vote on special assessment; [subversives] of the labor code
g. to be deducted a special are prohibited from becoming a
assessment only with the member a labor organization.
member’s written authorization.
c. members of religious organization
4. Right to Information - the right to whose religion forbade
be informed about: membership in labor organization
a. the organization’s could not be compelled into union
constitution and by- laws, membership.
b. the collective bargaining
agreement, and labor laws.  REQUIREMENTS IN MAKING SPECIAL
ASSESSMENTS or OTHER
· Any violation of the above rights EXTRAORDINARY FEES (Art. 241 [n]):
and conditions of membership
shall be a ground for 1. there must be a WRITTEN
cancellation of union registration RESOLUTION
or expulsion of an officer from 2. he resolution must have BEEN
office, whichever is appropriate. APPROVED BY A MAJORITY of all
At least 30% of all the members the members
of the union or any member or
members specifically concerned 3. the approval must be AT A
may report such violation to the GENERAL MEMBERSHIP MEETING
Bureau. DULY called for that purpose
 PERSONS WHO ARE PROHIBITED · The secretary of the

FROM BECOMING MEMBERS/OFFICERS organization shall record the
OF A LABOR ORGANIZATION UNDER THE minutes of the meeting
LABOR CODE (see also notes under Art. including:
LABOR LAW COMMITTEE

Basquiñez
a.  Jurisdiction over check-off disputes is

the list of all members present, with the Regional Director of the DOLE,
b. not the Labor Arbiter
the votes cast, and
c.  union dues vs. Agency fee
the purpose of the assessment or 1. 2.
fees UNION DUES AGENCY FEE
a. DEDUCTED FROM - non-members of the
· The record shall be attested by - members of a bargaining agent
the President. union for the (union) for the
payment of union enjoyment of the
dues. benefits under the
· Substantial compliance to the
CBA.
aforementioned procedure is not b. CONSENT - May be deducted
enough—the requirements must - May not be from the salary of
be strictly complied with in view deducted from the employees without
of the fact that the special salaries of the union their consent.
assessment will diminish the members without
compensation of union members. the written consent
(Palacol et. al vs. Ferrer-Calleja of the workers
et. al) affected
 CHECK-OFF - a method of deducting · Agency fee cannot be imposed on

from an employee’s pay at prescribed employees already in the service and are
period, the amounts due to the union for members of another union. If a closed
fees, fines or assessments. shop agreement cannot be applied to
them, neither may an agency fee, as a
lesser form of union security, be
NATURE AND PURPOSE OF CHECK-OFF: imposed to them. (NABAILU vs. San
· to facilitate the collection of Miguel Brewery Inc)
dues necessary for the union’s
life and sustenance.
 EXCEPTION TO THE REQUIREMENT
· Union dues are the lifeblood of OF INDIVIDUAL WRITTEN
the union. AUTHORIZATION:
REQUIREMENTS WITH REGARD TO 1.For mandatory activities provided

CHECK-OFFS (Art. 241 [o]): under the Code; and
- NO special assessment, attorney’s 2.When non-members of the union

fees, registration fees or any other avail of the benefits of the CBA.
extraordinary fees may be checked off
from any amount due an employee - said non-members may be assessed
WITHOUT an individual written union dues equivalent to that paid by
authorization duly signed by the members
employee.
- only by a Board Resolution
The authorization should specifically approved by majority of the members in
state the: a general meeting called for the purpose
a. amount Will the employees-members of

b. purpose and the beneficiary another union not be considered as
of the deduction. free riders?
No since when the union bids to be the

bargaining agent, it voluntarily assumes
the responsibility of representing all
CHAIRPERSONS
employees in the appropriate bargaining 2. (Union Dues)

unit. a. HOW APPROVED -by obtaining the
-by written resolution individual written
approved by majority authorization duly
 SPECIAL ASSESSMENT vs. CHECK- of all the members at signed by the
OFF a meeting duly called employee which must
SPECIAL 3. for that purpose specify:
a. amount
ASSESSMENTS CHECK-OFF
b. purpose and
c. beneficiary of
the deduction.
3. (Agency Fees)
b. EXCEPTION TO -not necessary if:
SUCH REQUIREMENT 1. For mandatory
-no exception—written activities provided
resolution is under the Code; and
mandatory at all 2. When non-members
instances. of the union avail of
the benefits of the
CBA. Said non-
members may be
assessed agency fees
equivalent to that
paid by members only
by a Board Resolution
approved by majority
of the members in a
general meeting called
for the purpose.
1. CHA
PTER III
RIGHTS OF LEGITIMATE LABOR

ORGANIZATIONS
2.
3.  ART.
242.
RIGHTS
OF
LEGITIM
ATE
LABOR
ORGANIZ
ATIONS
RIGHTS OF A LEGITIMATE LABOR

ORGANIZATION [USERFOE]:
1.Undertake activities for benefit of

members
2.Sue and be sued
3.Exclusive representative of all
employees
4.Represent union members
5.Furnished by employers of audited
financial statements
6.Own properties
7.Exempted from taxes
LABOR LAW COMMITTEE

Basquiñez
5.
TITLE V 6. 
PERSONS/EMPLOYEES ELIGIBLE TO JOIN
COVERAGE A LABOR ORGANIZATION FOR MUTUAL
AID AND PROTECTION (AIRSIW):
4.  ART. 243. COVERAGE AND 1. Ambulant,
EMPLOYEES’ RIGHT TO SELF– 2. Intermittent,
ORGANIZATION 3. Rural,
4. Self-employed people
4.  5. Itinerant workers and
PERSONS/EMPLOYEES ELIGIBLE TO JOIN 6. Workers without any definite
A LABOR ORGANIZATION FOR employers,
PURPOSES OF COLLECTIVE  PERSONS/EMPLOYEES WHO ARE NOT
BARGAINING: GRANTED THE RIGHT TO SELF-
ORGANIZATION: (HEMACEN)
1. All persons employed in
commercial, industrial and 1. High-level government employees
agricultural (CIA) enterprises, and (E.O. 180 Sec. 3) (MANAGERIAL
GOVERNMENT EMPLOYEES)
2. In religious, charitable, medical or
educational (RCME) institutions 2. Employees of international
whether operating for profit or not organizations with immunities (ICMC vs.
Calleja)
3. Managerial employees
GOVERNMENT – GOVERNMENT – · whose functions are normally
OWNED OR OWNED OR considered as policy-making or
CONTROLLED CONTROLLED managerial
CORPORATIONS WITH CORPORATIONS · whose duties are of a highly
AN ORIGINAL WITHOUT confidential or highly technical
CHARTER ORIGINAL in nature (212 LC)
CHARTER
a. LAW 4. Members of the Armed Forces of
- Employees cannot stage - The GOCC is the Philippines, including police
strikes since they are created under officers, policemen, firemen and jail
governed by the Civil Corporation Code,
guards (E.O. 180 Sec. 4);
Service Law. They are then employees are
enjoined by Civil Service covered by the Labor
Memorandum Circular Code. Therefore 5. Confidential employees
No. 6, under pain of the employees have (Metrolab vs. Confesor)
administrative sanctions the same rights as
from staging strikes, those as employees 6. Employees of cooperatives who
demonstrations, mass of private
are members (Benguet Elec. Coop.
leaves, walkouts and corporations, one of
other concerted which is the right to vs Calleja)
activities. strike.
b. BARGAINING RIGHTS 7. Non-Employees (Rosario Bros. vs
- Corporations with Ople)
original charters - The GOCC is
cannot bargain with created under
Foreigners validly working in the
the government Corporation Code,
concerning the terms being governed by the Philippines [with permit from DOLE]
and conditions of Labor Code, they can can form labor organizations, provided
their employment. bargain with the the same right to form, join or assist in
However, they can government the formation of labor unions is also
negotiate with the concerning the terms given to Filipinos in their country of
government on those and
origin. This embodies the principle of
terms and conditions conditions of
of employment which their employment. reciprocity.
are not fixed by law. Thus, they have
Thus, they have 2005 Cunlimited
ENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT
bargaining
CHAIRPERSONS
limited bargaining rights.
rights.
c.PURPOSEEDP),
OFAnna Margarita Eres (VC-Logistics) Jonathan
ORGANIZATION - Can Mark
Charmaine Torres (Taxation Law), form, David
join orMartinez (Criminal Law), Garny Luisa Alegre (Commercial
-Law),
CanJinky
onlyAnn
form, join or Law),
Uy (Remedial assistJackie
labor Lou Bautista (Legal Ethics)
assist labor organization organization for
for purposes not contrary purposes of CBA, etc.
to law.
b. facilities requiring capital

MAY SECURITY GUARDS FORM A LABOR outlays
ORGANIZATION? c. car plan
YES. Under RA 6715, they may now d. provident fund
freely join a labor organization of the e. special hospitalization,
rank-and-file or that of the supervisory medical and dental services
union, depending on their rank. (Meralco f. rice/sugar/other subsidies
vs. Secretary of Labor) g. travel expenses
h. increase in retirement
2.  EXTENT OF THE RIGHT benefits
TO SELF-ORGANIZATION
1. To form, join and assist labor 2. Those that involve the exercise of
organizations for the purpose of management prerogatives, such as:
collective bargaining through
representatives of their own choosing a. appointments
and b. promotion
2. To engage in lawful concerted c. assignments/details
activities for the same purpose- for d. reclassification/upgrading of
their mutual aid and protection. position
e. revision of compensation
 ART. 244. RIGHTS OF EMPLOYEES IN structure
THE PUBLIC SERVICE f. penalties imposed as a result
of disciplinary actions
 THE FOLLOWING ARE CONSIDERED g. selection of personnel to
NEGOTIABLE IN GOCCs WITH ORIGINAL attend seminar, trainings,
CHARTER: study grants
1. schedule of vacation and other h. distribution of work load
leaves i. external communication
2. work assignment of pregnant linkages
women · Government employees and
3. personnel growth and employees of government-owned
development and controlled corporations with
4. communication system – lateral original charters may bargain,
and vertical however, such bargaining power
5. provision for protection and is limited.
safely
NOTE: The Public Sector Labor
6. provision for facilities for
Management Council (PSLMC), created
handicapped personnel
by E.O. 180 has jurisdiction to hear
7. provision for first-aid medical
charges of ULP filed by government
services for married women
employees against their employer.
8. annual medical/physical
examination
 REASONS WHY EMPLOYEES IN GOCCs
9. recreational, social, athletic and
INCORPORATED UNDER THE
cultural activities and facilities
CORPORATION CODE ARE ALLOWED TO
(Rules implementing WO 180)
ORGANIZE:
1. they are not involved in public
 THE FOLLOWING ARE CONSIDERED
service
NOT NEGOTIABLE:
2. terms of employment are not fixed
by law
1. Those which require appropriation of
3. they are governed by the provisions
funds, such as:
of the Labor Code not by the Civil
Service Law
a. increase in salary
emoluments and other
 ART. 245. INELIGIBILITY OF
allowance not presently
MANAGERIAL EMPLOYEES TO JOIN ANY
provided for by law
LABOR LAW COMMITTEE

Basquiñez
LABOR ORGANIZATION; RIGHT OF · The union can also become

SUPERVISORY EMPLOYEES. company-dominated with the
presence of managerial
 MANAGERIAL EMPLOYEE - one who is employees in Union Membership
vested with powers or prerogatives to (Bulletin Publishing Co. Inc. vs.
lay down and execute management Hon. Augusto Sanchez).
policies and /or to hire, transfer,
suspend, lay-off, recall, discharge,  SUPERVISORY EMPLOYEES - those
assign or discipline employees. who, in the interest of the employer,
effectively recommend such managerial
 MANAGERIAL EE under LS and LR actions if the exercise of such authority
Managerial Managerial is not merely routinary or clerical in
Employees under Employees nature but requires the use of
Labor Standards under Labor independent judgment.
Relations
a. POWERS/DUTIES MAY SUPERVISORY EMPLOYEES FORM,
- primary duty consists - See definition ASSIST, JOIN A LABOR ORGANIZATION?
of the management of above
the establishment in YES, on their own and NOT with the
which they are rank-and-file employees (RA 6715).
employed or of a
department or · The TEST IS: Do they exercise
subdivision independent judgment which is
b. EXTENT - does not include not subject to evaluation of
- includes the officers the managerial other department heads/other
and members of the staff since they are superiors? If in the affirmative,
managerial staff classified as then they may-must form a labor
supervisory
organization of their own
employees [who
may/may not be
[separate from the rank and file
eligible to join a employees]
labor union with · If their responsibilities do not
the rank and file inherently require the exercise
employees] of discretion and independent
c. PURPOSE OF - to determine an judgment [or merely
DEFINITION employee’s routinary/clerical in nature]
- to determine w/n eligibility in then they may join the union
certain employees are joining/forming a composed of the rank and file
covered by Book III of labor union.
employees.
the LC on Conditions of
Employment. NOTE: It is the nature of the employee’s
functions and not the nomenclature or
 Reason for ineligibility in the title given to his job which determines
collective bargaining process, whether he has a rank and file or
managerial employees are the alter ego managerial status. (Engineering
of the employers and thus they are Equipment, Inc. vs. NLRC)
supposed to be on the side of the
employer to act as its representatives, MAY THEY AFFILIATE WITH A
and to see to it that its interests are FEDERATION OF LABOR
well protected. The employer is not ORGANZATIONS OF RANK AND FILE
assured of such protection if these EMPLOYEES?
employees are union members.
· In the same manner, the labor YES. Provided that:
union might not be assured of a. the federation is not actively
their loyalty to the union in involved in union affairs in the
view of the evident conflict of company; and
interest.
CHAIRPERSONS
b. the rank and file employees are jobholder’s role in the pursuit of
not directly under the control of corporate objectives and
the supervisors (Adamson vs. strategies.
Adamson) · Every managerial position is
confidential because one does
 EFFECT OF HAVING MIXED not become a manager without
MEMBERSHIP – A union whose having gained the confidence of
membership is a mixture of the the appointing authority. But
supervisors and the rank and file is not not every confidential employee
and cannot become a legitimate labor is managerial; he may be a
organization. It cannot petition for a supervisory or even a rank-and-
certification election, much less ask to file employee.
be recognized as the bargaining
representative of employees.
 ART. 246. NON-ABRIDGEMENT OF
 CONFIDENTIAL EMPLOYEES - by the THE RIGHT TO SELF-ORGANIZATION
very nature of their functions, they
assist and act in a confidential capacity “THE RIGHT TO SELF-ORGANIZATION
to, or, have access to confidential SHALL NOT BE ABRIDGED” MEANS:
matters of persons who exercise
managerial functions in the field of It shall be unlawful for any person to:
labor relations. Therefore, the rationale
behind the ineligibility of managerial a. restrain,
employees to form, assist or join a labor b. coerce,
union equally applies to them. (Philips c. discriminate against, or
Industrial Dev’t Inc. Vs. NLRC) d. unduly interfere
- they are entrusted with confidence on - with employees and workers in their
delicate matters, or with the custody, exercise of the right to self-organization.
handling, or care and protection of the
employer’s property. Under the · Any act intended to weaken or
doctrine of necessary implication, defeat the right is regarded by
confidential employees are similarly law as an offense, which is
disqualified under Article 245. (Republic technically called “unfair labor
Planters Bank vs. Torres) practice.”
NOTE: The phrase “in the field of labor TITLE VI
relations” is important. It stresses labor
nexus, i.e., confidentiality of the UNFAIR LABOR PRACTICES
position is related or linked to labor
relations matters.
CHAPTER I
· Access to information which is
regarded by the employer to be
confidential from the business CONCEPT
standpoint, such as financial
information or technical trade
secrets, will not render an 1. 
employee a confidential ART. 247. UNFAIR LABOR PRACTICES
employee. (SMC Supervisors &
Exempt Union vs. Hon.  NATURE OF UNFAIR LABOR
Laguesma, et al.) PRACTICES:
· Confidentiality is not a matter of
official rank, it is a matter of job 1. VIOLATE THE CONSTITUTIONAL
content and authority. It is not RIGHT of workers and employees to
measured by closeness to or self-organization;
distance from top management, 2. are INIMICAL TO THE LEGITIMATE
but by the significance of the INTERESTS of both
LABOR LAW COMMITTEE

Basquiñez
labor and management, including officers andrepresentatives, members

their right to bargain collectively agents of the government board,
and otherwise deal with each including ordinary
other in an atmosphere of freedom members
and mutual respect B. JURISDICTION
3. DISRUPT INDUSTRIAL PEACE; and -Labor Arbiters of -MTC/RTC as the case
4. hinder the promotion of healthy and the NLRC may be.
stable labor-management relations C. QUANTUM OF PROOF NEEDED
and mutual respect [LABOR-MNGT -substantial -beyond reasonable doubt
RELATIONS-UNSTABLE]; evidence [subject to prosecution
and punishment]
 2 ELEMENTS OF UNFAIR LABOR D. PRESCRIPTIVE PERIOD
PRACTICE: - one year from - one year from the
the accrual of the accrual of the ULP act,
1. employer-employee relationship ULP act. however it will be
between the offender and the suspended once the
offended administrative case has
2. act done is expressly defined in been filed and would only
the Code as an act of unfair continue running once the
administrative case has
labor practice
attained finality.
3. it is now considered a criminal Final judgment in the
offense triable by the criminal administrative
court proceeding finding that
ULP has been committed
NOTE: Prohibited acts are all related to is a prerequisite in filing
the workers' self-organizational right and a criminal case for ULP
the the observance of a CBA, except Art. NOTE: Final judgment in
248 (f) dismissing or prejudicing an the administrative
proceedings shall not be
employee for giving testimony under the
binding in the criminal
Code. case nor shall be
considered as an
· ULP has a technical meaning. evidence of guilt but
· It is a practice unfair to labor, merely as a proof of
although the offender may either compliance of the
be an employer or a labor requirements prescribed
organization by the Code.
· It refers to acts opposed to 2. CHAPTER II
workers' right to organize.
Without this, the act, no matter UNFAIR LABOR PRACTICES
how unfair, is not ULP. OF EMPLOYERS
· It commonly connotes anti-
unionism.
· It also refers to gross violation 2.  ART
of CBA provisions. Gross means the 248. ULP THAT MAY BE COMMITTED BY
act is malicious and flagrant. AN EMPLOYER (1-10)
 2 ASPECTS OF UNFAIR LABOR

PRACTICE: 1. To INTERFERE WITH, RESTRAIN OR
CIVIL CASE CRIMINAL CASE COERCE EMPLOYEES
A. PERSONS LIABLE - in the exercise of their right
1. Officers and 1. Agents and officers to self-organization;
agents of who participated or
employer or authorized or ratified INTERFERENCE
2. Labor the act.
organization, 2. Agents, Examples:
CHAIRPERSONS
- outright and unconcealed intimidation 117. NO. Contracting out services is

- interrogation not ULP per se. It is ULP only when the
employer must communicate to the following conditions exist:
employee the purpose of questioning 1. the service contracted- out
1. assure him that no reprisal would are being performed by
take place union members; and
2. obtain employee participation 2. such contracting-out
voluntarily interferes with, restrains, or
3. must be free from employer coerce employees in the
hostility to union organization exercise of their right to
4. must not be coercive in nature self-organization.
-intimidating expressions of opinion by
employer HOWEVER, when the contracting-out is
being done to minimize expenses, then it
TEST OF INTERFERENCE OR COERCION - is a valid exercise of management
whether the employer has engaged in prerogative.
conduct which it may reasonably be said
tends to interfere with the free exercise 3. To CONTRACT OUT SERVICES OR
of the employees' right and it is not FUNCTIONS BEING PERFORMED BY
necessary that there be direct evidence UNION MEMBERS
that any employee was in fact - when such will interfere with,
intimidated or coerced by the restrain or coerce employees in
statements of threats or the employer if the
there is a reasonable interference that - exercise of their right to self-
the anti-union conduct of the employer organization;
does have an adverse effect of self-
organization and collective bargaining. 4. To INITIATE, DOMINATE, ASSIST
OR OTHERWISE INTERFERE
2. TO REQUIRE AS A CONDITION FOR - with the formation or
EMPLOYMENT THAT A PERSON OR administration of any labor
AN EMPLOYEE organization,
- shall not join a labor - including the giving of financial or
organization or other support to it or its
- shall withdraw from one to organizers or officers; (Formation
which he belongs; of Company Union)
 YELLOW DOG CONTRACT - A promise 5. To DISCRIMINATE IN REGARD TO

exacted from workers as a condition of WAGES, hours of work, and other
employment that they are not to belong terms and conditions of
to, or attempt to foster, a union during employment in order to encourage or
their period of employment. It is null discourage membership in any
and void because: labor organization.
- It is contrary to public policy
for it is tantamount to involuntary TEST OF DISCRIMINATION- whenever
servitude. benefits or privileges given to one is not
- It is entered into without given to the other under similar or
consideration for employees in identical conditions when directed to
waiving their right to self- encourage or discourage union
organization membership (see more discussions
- Employees are coerced to sign below)
contracts disadvantageous to their
family. 6. To DISMISS, DISCHARGE OR
Does Art. 248 (3) mean that an OTHERWISE PREJUDICE OR
employer cannot contract out work? DISCRIMINATE against an employee
- for having given or being about
to give testimony under this
LABOR LAW COMMITTEE

Basquiñez
Code; (The only ULP act which is c. managerially motivated

not anti-unionism) formation by employees
2. financial support to the union by:
DISCRIMINATION BECAUSE OF a. employer defrays union
TESTIMONY expenses
· TEST: the subject matter of the b. pays attorney's fees to the
testimony can be anything under attorney who drafted the
the Code Constitution or by laws of
· what is ULP is the employer's the union
retaliatory act regardless of the 3. employer encouragement and
subject of employee's complaint assistance by immediate granting
or testimony of exclusive recognition as
bargaining agent without
7. TO VIOLATE THE DUTY TO BARGAIN determining whether the union
COLLECTIVELY AS PRESCRIBED BY represents majority of the
THIS CODE; employees
4. supervisory assistance by soliciting
8. TO PAY NEGOTIATION OR membership, permitting union
ATTORNEY’S FEES TO THE UNION OR activities during work time or
ITS OFFICERS OR AGENTS coercing employees to join the
- as part of the settlement of any union by threats of dismissal or
issue in collective bargaining demotion.
or any other disputes; or
 DISCRIMINATION FOR OR AGAINST
UNION MEMBERSHIP
9. To VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.(GROSSLY!) TEST OF DISCRIMINATION: That the
- the violation must be gross and discharge of an employee was motivated
with respect to the economic by his union activity. Such inference
provision of the CBA (flagrant must be based on evidence, direct or
and with malice) circumstantial, not upon mere suspicion.
· All the aforementioned acts (Nos. 1-
9) must have a relation to the
 CONSTRUCTIVE DISCHARGE - ULP
employees’ exercise of their to self-
where employer prohibits employees
organization. Anti-union or anti-
from exercising their rights under the
organization motive must be proved
Code, on pain of discharge, and the
because it is a definitional element
employee quits as a result of the
of ULP.
prohibition
 RUNAWAY SHOP - an industrial
plant moved by its owners from one
 THREE COMPONENTS OF ART. 248(5)
location to another to escape union
(DISCRIMINATION):
labor regulations or state laws or to
discriminate against employees at the
1.It prohibits discrimination in
old plant because of their union
terms and conditions of
activities.
employment in order to encourage
or discourage membership in the
 COMPANY UNIONISM union;
1. Initiation of the company union 2.It gives validity to union security
idea by: agreements;
a. outright formation by 3.It allows an agency shop
employer or his arrangement whereby agency fees
representatives may be collected from non-union
b. employee formation on members.
outright demand or
influence by employer

CHAIRPERSONS
 SECURITY ARRANGEMENTS -
stipulations in the CBA requiring 2. UNION SHOP AGREEMENT
membership in the contracting union as -stipulation whereby any person can be
a condition for employment or retention employed by the employer but once
of employment in the company. employed such employee must, within a
specific period, become a member of
the contracting union and remain as such
 PRINCIPLES OF UNION SECURITY
in good standing for continued
ARRANGEMENTS:
employment for the duration of the CBA
1. Protection - To shield union members
[take note of the exceptions in the
from whimsical and abusive exercise
preceding number.]
of management prerogatives.
2. Benefits - An additional membership
3. MAINTENANCE OF MEMBERSHIP
will insure additional source of
CLAUSE - the agreement DOES NOT
income to the union in the form of
require non-members to join the
union dues and special assessment.
contracting union BUT provides that
3. Self-preservation- It strengthens the
those who are members thereof at the
union through selective
time of the execution of the CBA and
acceptance of new members on the
those who may thereafter on their own
basis of commitment and loyalty.
volition become members must for the
duration of the agreement maintain
 DIFFERENT KINDS OF UNION
their membership in good standing as a
SECURITY ARRANGEMENTS:
condition for continued employment in
(EXCEPTIONS TO ULP ON
the company for the duration of the
INTERFERENCE ON THE EMPLOYEES’
CBA.
EXERCISE OF THEIR RIGHT TO SELF-
ORGANIZATION)
4. PREFERENTIAL SHOP AGREEMENT –
1. CLOSED-SHOP AGREEMENT - the
an agreement whereby the employer
employer undertakes not to employ any
merely agrees to give preference to the
individual who is not a member of the
members of the bargaining union in
contracting union and the said individual
hiring, promotion or filing vacancies and
once employed must, for the duration of
retention in case of lay-off. The
the agreement, remain a member of the
employer has the right to hire from the
union in good standing as a condition for
open market if union members are not
continued employment.
available.
- does not have any retroactivity
- apply only to new hires 5. AGENCY SHOP AGREEMENT - an
agreement whereby employees must
EXCEPTIONS: either join the union or pay to the union
a. employees belonging to any as exclusive bargaining agent a sum
religious sect which prohibit equal to that paid by the members.
affiliation of their members with any
labor organization are not covered · This is directed against
by such agreement—The free “FREE RIDER” employees who
exercise of religious belief is benefit from union activities
superior to contract rights without contributing support to
(Victoriano vs. Elizalde Rope the union, to prevent a situation
Workers). of non-union members enriching
b. members of the rival union are not themselves at the expense of
covered by such arrangement. union members.
SEMI-CLOSED SHOP AGREEMENT- has · Employee members of
no requirement for the employee to another/rival union are not
remain as member of the contracting considered free riders since
union in good standing as a condition when the union [agent] bids to
for continued employment. be the bargaining agent, it
LABOR LAW COMMITTEE

Basquiñez
voluntarily assumed the b. To CAUSE OR ATTEMPT TO CAUSE

responsibility of representing all AN EMPLOYER TO DISCRIMINATE
the employees in the AGAINST AN EMPLOYEE, including
appropriate bargaining unit. discrimination
c. To VIOLATE THE DULY OR REFUSE
TO BARGAIN COLLECTIVELY with
 REQUIREMENTS FOR A VALID the employer provided that it is the
TERMINATION BY THE EMPLOYER OF representative of the employees;
THE SERVICES OF AN EMPLOYEE d. TO CAUSE OR ATTEMPT TO CAUSE
PURSUANT TO A UNION OR CLOSED- AN EMPLOYER TO PAY OR DELIVER
SHOP AGREEMENT: OR AGREE TO PAY OR DELIVER ANY
MONEY or other things of value, in
1. The agreement must be expressed in the nature of an exaction, for
a CLEAR AND UNEQUIVOCAL way so services which are not performed or
as not to leave room for not to be performed, including the
interpretation because it is a demand for a fee for union
limitation to the exercise of the negotiations; (This is called
right to self-organization. FEATHERBEDDING)
· Any doubt must be resolved e. To ASK FOR OR ACCEPT
against the existence of a NEGOTIATION OR ATTORNEY’S FEES
closed-shop agreement. FROM EMPLOYERS as part of the
settlement of any issue in collective
2. The agreement can only have bargaining or any other dispute; or
PROSPECTIVE APPLICATION and f. To GROSSLY VIOLATE A COLLECTIVE
cannot be applied retroactively. BARGAINING AGREEMENT.
- The violation must be gross and
3. It can only be exercised by giving the must be with respect to
employee his right to DUE PROCESS. economic provisions of the CBA
- The employer has the right to flagrantly and with malice.
satisfy himself that there are
sufficient bases for the request  PERSONS CIVILLY LIABLE FOR
of the union. ULP:
- The termination of the services 1. Officers and agents of employer
of the employee is not automatic 2. Labor organization, officers and
upon the request of the union. agents
3. Agents and officers who
4. It cannot be applied to employees participated or authorized or
who are already MEMBERS OF THE ratified the act.
RIVAL UNION or to the employees  FEATHERBEDDING - refers to the
based on their religious beliefs. practice of the union or its agents in
causing or attempting to cause an
CHAPTER III employer to pay or deliver or agree to
pay or deliver money or other things of
UNFAIR LABOR PRACTICES OF value, in the nature of exaction, for
services which are not performed or not
LABOR ORGANIZATIONS
to be performed, as when a union
 ART. 249. UNFAIR LABOR PRACTICES
demands that the employer maintain
OF LABOR ORGANIZATIONS
personnel in excess of the latter’s
requirements.
a. To RESTRAIN OR COERCE
employees in the exercise of their · It is not featherbedding if the
right to self-organization. However, work is performed no matter
a labor organization shall have the how unnecessary or useless it
right to prescribe its own rules with may be.
respect to the acquisition or
retention of membership;
CHAIRPERSONS
 SWEETHEART DOCTRINE – considers COLLECTIVE BARGAINING

it ULP for a labor organization to ask for AGREEMENT (CBA) - a negotiated
or accept negotiation or attorney’s fees contract between a legitimate labor
from the employer in settling a organization and the employer
bargaining issue or dispute concerning:
a. wages,
· resulting CBA is considered a b. hours of work, and
“sweetheart contract” – a CBA c. all other terms and
that does not substantially conditions of employment in
improve the employees’ wages a bargaining unit, including
and benefits. mandatory provisions for
grievances and arbitration
machineries.
TITLE VII 1. PROCEDURE IN

COLLECTIVE BARGAINING
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS 1. Written NOTICE with statement
of proposals
 ART. 250. PROCEDURE IN 2. REPLY by the other party within
COLLECTIVE BARGAINING 10 calendar days with counter
118.  COLLECTIVE BARGAINING – proposals
negotiation by an organization or group 3. In case of differences, either
of workmen, in behalf of its members, party may REQUEST FOR A
with the employer, concerning wages, CONFERENCE which must be held
hours of work and other terms and within 10 days from receipt of
conditions of employment and the request.
settlement of disputes by negotiation 4. If not settled NCMB MAY
between an employer and the INTERVENE AND ENCOURAGE the
representative of his employees. parties to submit the dispute to a
· Negotiation towards a collective voluntary arbitrator
agreement. 5. If not resolved, the parties may
go to where they want AND RESORT
 The mechanics of collective TO ANY OTHER LAWFUL MEANS
bargaining is set in motion only when the [either to settle the dispute or
following JURISDICTIONAL submit it to a voluntary arbitrator].
PRECONDITIONS are present: · During the conciliation
proceeding in the Board, the
1. POSSESSION OF THE STATUS OF parties are prohibited from doing
MAJORITY representation by the any act which may disrupt or
employees’ representative in impede the early settlement of
accordance with any of the means of the disputes (250[d] LC).
selection or designation provided for  8 STAGES IN THE NEGOTIATION FOR
by the Labor Code; A COLLECTIVE BARGAINING
AGREEMENT:
2. proof of MAJORITY 1. PRELIMINARY process - written
REPRESENTATION (Certification of notice for negotiation which must
the BLR that the representative of be clear and unequivocal
the employees in the sole and 2. NEGOTIATION Process
exclusive bargaining agent having 3. EXECUTION Process – signing of the
won in a certification election); and agreement
3. a DEMAND TO BARGAIN under 4. PUBLICATION for at least 5 days
Article 250 (a) of the Labor Code. before ratification
(Kiok Loy vs. NLRC) 5. RATIFICATION by the majority of
all the workers in the bargaining
LABOR LAW COMMITTEE

Basquiñez
unit represented in the negotiation b. EXECUTING A CONTRACT

(not necessary in case of arbitral incorporating such agreements if
award) requested by either party.
6. REGISTRATION Process
Requisites for registration: LIMITATIONS:
a. mandatory provisions
b. payment of P1, 000 1. the duty to bargain collectively does
c. 5 copies of CBA not compel any party to:
d. proof of ratification a. agree to a proposal; or
7. ADMINISTRATION Process – the CBA b. make a concession.
shall be jointly administered by No room for “Take it or Leave it”
the management and the posture.
bargaining agent for a period of 5
years 2. the parties cannot stipulate terms
8. INTERPRETATION AND and conditions of employment which
APPLICATION Process are below the minimum requirements
2. prescribed by law
3.  MANDATORY PROVISIONS
OF THE CBA: (Meaning of duty to bargain when there
1. wages exists a CBA, see discussion under Art.
2. hours of work 253)
3. grievance machinery
4. voluntary arbitration · Collective bargaining does not
5. family planning end with the execution of the
6. rates of pay agreement. It is a continuous
7. mutual observance clause process. The duty to bargain
imposes on the parties during
· In addition, the Bureau requires the term of their agreement the
that the CBA should include a mutual obligation to meet and
clear statement of the terms of confer promptly and
the CBA. expeditiously and in good faith
for the purpose of adjusting any
Note: Employer’s duty to bargain is grievances or question arising
limited to mandatory bargaining under such agreement. (Republic
subjects; as to other matters, he is free Savings Bank vs. CA)
to bargain or not to bargain.
 FOUR (4) FORMS OF ULP IN
 ART. 252. MEANING OF DUTY TO BARGAINING:
BARGAIN COLLECTIVELY a. failure or refusal to meet and
convene
 DUTY TO BARGAIN COLLECTIVELY - b. evading the mandatory subjects
the performance of a mutual obligation: of bargaining
c. bad faith in bargaining
a. to MEET AND CONVENE promptly [boulwarism], including failure or
and expeditiously in good faith for refusal to execute the CBA, if
the purpose of negotiating an requested
agreement with respect to wages, d. gross violation of the CBA
hours of work and all other terms
and conditions of employment Do economic exigencies justify refusal
including proposals for adjusting to bargain?
any grievances or questions arising
under such agreement and An employer has been held not guilty of
refusal to bargain by adamantly
rejecting the union's economic demands
where he is operating at a loss, on a low

CHAIRPERSONS
profit margin, or in a depressed industry, EXAMPLE: The employer's insistence

as long as he continues to negotiate. that the union should change its
But financial hardship constitutes no negotiator before bargaining can
excuse for refusing to bargain proceed to the employees' wage and
collectively. benefits is an instance of bad-faith
bargaining because the composition of
ACTS NOT DEEMED REFUSAL TO the negotiating panel is not a mandatory
BARGAIN: subject of bargaining.
1. adoption of an adamant bargaining
position in good faith Hence, if Party A insists on first settling
a non-mandatory subject before tackling
2. refusal to bargain over demands for a mandatory subject, Party B may
commission of ULP complain that Party A's posture is just an
excuse to avoid bargaining on the
3. refusal to bargain during period of mandatory, essential subjects of
illegal strike bargaining; thus, Party B can charge that
Party A is bargaining in bad faith or is
4. there is no request for bargaining evading bargaining on terms and
conditions of employment - in short,
5. union seeks recognition for an Party A is committing ULP.
inappropriately large unit
NOTE: What the rule forbids is the
6. union seeks to represent some posture of making settlement of a non-
persons who are excluded from the Code mandatory subject a pre-condition to
the discussion or settlement of a
7. the rank-and-file unit includes mandatory subject.
supervisors or inappropriate otherwise
 ART. 253. DUTY TO BARGAIN
8. the demand for recognition and COLLECTIVELY WHEN THERE EXISTS A
bargaining is made within the year COLLECTIVE BARGAINING AGREEMENT
following a certification election in
which the clear choice was no union and 4.  GENERAL RULE: When
no ad interim significant change has there is an existing CBA, the duty to
taken place in the unit bargain collectively shall also mean that
neither party shall TERMINATE nor
9. the union makes unlawful bargaining MODIFY such agreement during its
demands lifetime. It is the duty of both parties
BARGAINING TO THE POINT OF to:
DEADLOCK OR IMPASSE:
1. over a mandatory subject - party

may insist on bargaining and will not be
construed as bargaining in bad faith
REASON: duty to bargain requires

meeting and convening on the terms and
conditions of employment
but does not require assent to the other
party's proposals.
2. over a non-mandatory subject -

party may not insist on bargaining to the
point of impasse, otherwise, he will be
construed as bargaining in bad faith.
LABOR LAW COMMITTEE

Basquiñez
a. keep the status quo and

b. to continue in the full force and  WHAT MAY BE DONE DURING THE
effect the terms and conditions of 60-DAY FREEDOM PERIOD:
the existing CBA
a. A labor union may DISAFFILIATE
 EXCEPTION: during the 60-day period from the mother union to form a
prior to its expiration, upon service of a local or independent union only
during the 60-day freedom period
2. 253 253-A/256 immediately preceding the
expiration of the CBA. [take note of
A.FREEDOM PERIOD the limitation-see discussions on
-the notice of intention to - representation registration of labor unions]
terminate, amend or alter aspect of the CBA
the provisions of the CBA b. either party can serve a written
shall be filed within the
shall be for a notice to TERMINATE OR MODIFY
sixty (60) day period, term of five (5). the agreement at least 60 days prior
immediately prior to the A petition for to its expiration period [on re-
expiration of the CBA. certification negotiable/non-representation
-the economic provisions election may be aspect of the CBA—see discussion on
however may be entertained and 253]
renegotiated not later than a certification c. a petition for CERTIFICATION
three (3) years. Those election may be ELECTION may be filed
economic provisions conducted within
entered within 6 months
the 60-day period  ART. 253–A. TERMS OF A
from the expiry of their
term as fixed in the CBA immediately COLLECTIVE BARGAINING AGREEMENT
shall retroact to the day prior to the (CONTRACT BAR RULE)
immediately following such expiration of the
date, if beyond 6 months CBA.
the effectivity is by
5.  DURATION OF THE CBA:
agreement of the parties.
3. 1. With respect to the
4. B. WHAT MAY BE representation aspect, the same
CHANGED DURING THE 60- - representation lasts for 5 years
DAY FREEDOM PERIOD aspect—it may be
5. -re-negotiable resolved by holding 2. With respect to other provisions
provisions of the CBA certification [economic provisions], the same may
particularly the non- election last for a maximum period of 3 years
representation aspect after the execution of the CBA
(ECONOMIC PROVISIONS
may be renegotiated not RULE ON RETROACTIVE EFFECTS OF
later than three (3) years. OTHER ECONOMIC PROVISIONS WITH
written notice of a party’s intention to FIXED TERM OR DATES OF EXPIRY AS
terminate or modify the same, a party PROVIDED IN THE CBA:
may choose to terminate or modify the
non-representational aspect of the CBA a. Those made within 6 months after
only after the expiration of CBA of fixed the date of expiry of the CBA
duration. - Any agreement on such other
provisions of the CBA made within 6
 DUTY TO BARGAIN COLLECTIVELY months after the date of expiry of the
UNDER 253 AND 253-A/256 CBA is subject to AUTOMATIC
RETROACTION to the day immediately
 AUTOMATIC RENEWAL CLAUSE – Art. following such date of expiry.
253 provides that the CBA shall remain
effective and enforceable even after the b. Those not made within 6 months the
expiration of the period fixed by the parties may agree to the DATE OF
parties as long as no new agreement is RETROACTION.
reached by them.
CHAIRPERSONS
- This rule applies only if there

is an EXISTING AGREEMENT. If THERE IS 1. the collective bargaining
NO EXISTING AGREEMENT, there is no representative executes an
retroactive effect because the date agreement waiving the right to be
agreed upon shall be the start of the present on any occasion when
period of agreement. employee grievances are being
adjusted by the employer and
NOTE: Article 253-A on retroaction does
not apply if the provisions were imposed 2. employer acts strictly within the
by the Secretary of Labor by virtue of terms of this waiver agreement.
arbitration. It applies only if the
agreement was voluntarily made by the
parties.
119.  ART. 254. NO INJUNCTION ONE-UNION, ONE-COMPANY POLICY -
RULE the proliferation of unions in an
employer unit is discouraged as a matter
No temporary or permanent of policy unless there are compelling
injunction or restraining order in any reasons which would deny a certain class
case involving or growing out of labor of employees the right to self-
disputes shall be issued by any court or organization for purposes of collective
other entity, except as otherwise bargaining.
provided in Articles 218 (Powers of the
Commission/NLRC) and 264 (Prohibited EXCEPTION:
Activities) of this Code. - supervisory employees who are
allowed to form their own unions apart
REASON: injunction contradicts the from the rank-and-file employees
constitutional preference for voluntary
modes of dispute settlement - the policy should yield to the right of
employees to form unions for purposes
· In cases of strikes/picketing, third not contrary to law, self-organization
parties or innocent bystanders may and to enter into collective bargaining
secure a court (regular court) negotiations.
injunction to protect their rights.
(PAFLU vs. CLORIBEL) · two companies cannot be
treated into a single bargaining unit
 ART. 255. EXCLUSIVE BARGAINING even if their businesses are related.
REPRESENTATION AND WORKER’S
PARTICIPATION IN POLICY AND · subsidiaries or corporations
DECISION-MAKING formed out of former divisions of a
mother company following a
WHAT IS THE MEANING OR EXTENT OF reorganization may constitute a
THE WORKERS’ RIGHT TO separate bargaining unit.
PARTICIPATE IN POLICY AND DECISION-
MAKING PROCESSES?  LABOR MANAGEMENT COUNCILS -
deal with the employer on matters
Such right refers ONLY to affecting employee’s rights, benefits and
participation in grievance procedures welfare.
and voluntary modes of settling disputes · They may be formed even if there
and NOT to formulation of corporate is already a union in the company.
programs and policies.
 ARTS. 256-259 PETITION FOR
NOTE: An employer may solicit CERTIFICATION ELECTION
questions, suggestions and complaints
from employees eventhough the
employees are represented by a union,
provided:
LABOR LAW COMMITTEE

Basquiñez
120. 3. similarity in the kinds of work

121.  BARGAINING UNIT- a group performed
of employees of a given employer,
comprised of all or less than all the 4. similarity in the qualifications, skills
entire body of the employees, which, and training of the employees
consistent with equity to the employer,
indicate to be best suited to serve the 5. frequency of contract or interchange
reciprocal rights and duties of the among the employees
parties under the collective bargaining
provision of the law. 6. common supervision and
determination of labor-relations
 CERTIFICATION YEAR - refers to the policy
period wherein collective bargaining
should begin, which is within 12 months 7. history of previous collective
following the determination and bargaining
certification of employees' exclusive
bargaining representative. 8. desires of the affected employees
 FOUR FACTORS IN DETERMINING THE
APPROPRIATE BARGAINING UNIT: 9. extent of union organization
 MODES OF CHOOSING THE
1. the EXPRESS WILL OR DESIRE of the EXCLUSIVE BARGAINING UNIT:
employees (Globe Doctrine);
· the desires of all the employees 1. SELECTION - certification election
are relevant to the 2. DESIGNATION - voluntary recognition
determination of the appropriate
bargaining unit. The relevance A. CERTIFICATION ELECTION – the
of the wishes of the employees process of determining by secret ballot
concerning their inclusion or the sole and exclusive bargaining agent
exclusion from a proposed of the employees in an appropriate
bargaining unit is inherent in the bargaining unit, for purposes of
basic right to self organization collective bargaining
2. the SUBSTANTIAL AND MUTUALITY  CERTIFICATION vs. CONSENT

INTEREST factor; ELECTION
CERTIFICATION CONSENT
3. prior collective bargaining HISTORY; ELECTION ELECTION
and
A. NATURE
4. EMPLOYMENT STATUS, such as - separate and distinct - a separate and
a. temporary from a consent distinct process
b. seasonal, and election and has nothing
c. probationary employee to do with the
import and
effect of a
 THINGS TO CONSIDER IN certification
DETERMINING THE COMMUNITY election
OF INTEREST DOCTRINE:
1. similarity in the scale and manner of

determining earnings
2. similarity in employment benefits,

hours of work and other terms and
conditions of employment

CHAIRPERSONS
 C.E. IN AN ORGANIZED AND AN

B. PURPOSE UNORGANIZED ESTABLISHMENT
- to determine the sole - to determine
and exclusive the issue of
ORGANIZED UNORGANIZED
bargaining agent of all majority
the employees in an representation of
appropriate bargaining all the workers A. WHEN MANDATORY ON
unit for the purpose of in the THE PART OF BLR Upon:
collective bargaining; appropriate - upon the filing of a a. the filing
collective verified petition by a of a verified
bargaining unit legitimate labor
organization questioning
petition by a
mainly for the legitimate
purpose of the majority status of the
incumbent bargaining labor
determining the
agent within the 60-day organization;
administrator of
the CBA when freedom period before the or
the contracting expiration of a CBA. b. upon the
union suffered - The petition must be filing of a
massive supported by the written petition by
disaffiliation but consent of at least 25% of the employer
not for the ALL THE EMPLOYEES IN
when such
purpose of THE APPROPRIATE
BARGAINING UNIT. employer is
determining the requested by
bargaining agent - the employer cannot file
a petition for certification the
for purposes of
collective election; only a legitimate employees to
bargaining. labor organization can file bargain
such petition. collectively.
DIRECT CERTIFICATION - the process

whereby the Med-Arbiter directly B. PERIOD FOR FILING THE
PETITION
certifies a labor organization of an
a. when there is a CBA, - any time,
appropriate bargaining unit of a the labor organization can
company after a showing that such file a petition for
subject
petition is supported by at least a certification election however to
majority of the employees in the within the 60-day freedom the ONE-
bargaining unit. IT IS NO LONGER period (CONTRACT-BAR ELECTION-
ALLOWED. (EO 111) RULE) PER-YEAR
b. when there is no CBA, RULE.
VOLUNTARY RECOGNITION – the process then the labor organization
can file a petition for
whereby the employer recognizes a labor
certification election at
organization as the exclusive bargaining any time, subject to the
representative of the employees in the Deadlock Bar Rule.
appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the  REQUISITES BEFORE A LABOR UNION
employees in the bargaining unit. CAN BE DECLARED A WINNER (DOUBLE
MAJORITY RULE):
 EFFECT OF VOLUNTARY
RECOGNITION BY THE EMPLOYER - 1. Majority of the eligible voters cast
through voluntary recognition by the their votes AND
employer, the labor organization is
recognized by the employer as the 2. Majority of the valid votes cast is for
exclusive bargaining agent which may such union.
collectively bargain with such employer.
LABOR LAW COMMITTEE

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 HOW TO DETERMINE THE DOUBLE majority votes of the total

MAJORITY RULE: votes cast
Who will participate in the run –

1. In determining the eligible votes cast off?
[FIRST MAJORITY], include spoiled
ballots The unions receiving the highest
and second highest number of votes
2. In determining valid votes [SECOND cast.
MAJORITY], eliminate spoiled ballots
but include challenged votes  Re – Run Election vs. Run – off
Election
RE – RUN ELECTION RUN – OFF
1. RUN-OFF ELECTION
ELECTION: Conducted when
Held in two none of the
A run-off election is proper if the instances: choices, including
following conditions exist namely: the choice of No
Union, receives a
1. if one choice majority of the
(a) a VALID ELECTION took receives a
place because majority of the valid vote cast.
plurality of vote This presupposes
Collective Bargaining Unit and the no less than three
members voted [FIRST remaining competing choices.
MAJORITY]; choices results In this situation, an
in a tie; election is
(b) the said election 2. if all choices conducted between
presented at least THREE received the the union choices
CHOICES, e.g., Union One, receiving the
same number of
Union Two, and No Union largest and the
votes; second largest
(Take Note: “No Union shall In both number of the valid
not be a choice in the run – off instances, the votes cast.
election); NO UNION is also
a choice
(c) NOT ONE OF THE
CHOICES OBTAINED THE  RULES WHICH PREVENT THE
MAJORITY (50%+1-SECOND HOLDING OF A CERTIFICATION
MAJORITY) of the valid votes ELECTION [DONC]:
cast; 1. Deadlock bar rule- when there
is a deadlock in collective bargaining and
(d) the TOTAL VOTES FOR the same has been submitted to NCMB
THE UNIONS IS AT LEAST 50% for conciliation and mediation the same
of the votes cast; bars any petition or conduct of
certification election.
(e) there is NO 2. One year bar rule
UNRESOLVED CHALLENGED 3. Negotiation bar rule
VOTES or election protest 4. Contract bar rule
which if sustained can
materially alter the results 1. CONTRACT-BAR RULE - while a valid
and registered CBA of a fixed duration is
(f) the two choices which subsisting, the BLR is not allowed to hold
garnered the highest votes will an election contesting the majority
be voted and the one which status of the incumbent union during the
garners the highest number of five year term of the CBA except during
votes will be declared the the sixty day period immediately prior to
winner provided they get the the expiration of the CBA.
CHAIRPERSONS
REQUIREMENTS IN ORDER TO INVOKE EXCEPT:

CONTRACT-BAR RULE: a. when the successor-in-interest
expressly assumes the obligation or
1. Agreement is in WRITING AND b. the sale is a device to
SIGNED by all contracting parties. circumvent the obligation or
2. It must contain THE TERMS AND c. the sale or transfer is made in
CONDITIONS of employment. bad faith
3. Covered employees in an appropriate
bargaining unit [ABU EES COVERED].  SUBSTITUTIONARY DOCTRINE – where
4. It is for a REASONABLE PERIOD or there occurs a shift in the employees’
duration. union allegiance after the execution of a
5. It must be RATIFIED. collective bargaining contract with the
6. It must be REGISTERED with the employer, the employees can change
Bureau. their agent (the labor union) but the
7. The violation of the contract bar rule collective bargaining contract which is
or the existence of a duly registered still subsisting continues to bind the
CBA must be specifically IMPLEADED employees up to its expiration date.
AS A DEFENSE. They may, however, bargain for the
shortening of said expiration date.
 EFFECT OF AN INVALID AND
UNREGISTERED CBA- there is no bar and · The employees cannot revoke
therefore a certification election may be the validly executed collective
held. bargaining contract with their
employer by the simple
NOTE: Registration of CBA only puts into expedient of changing their
effect the contract bar rule but the CBA bargaining agent. The new
itself is valid and binding even if agent must respect the contract.
unregistered. (Benguet Consolidated, Inc. vs.
Employees and Workers Union-
2.  EXCEPTIONS TO THE PAFLU)
CONTRACT-BAR RULE:
122.  LIMITATION AS TO ITS
1. CBA is not registered APPLICATION – it cannot be invoked to
2. CBA deregistered support the contention that a newly
3. CBA was hastily concluded way certified collective bargaining agent
ahead of the freedom period automatically assumes all the personal
4. CBA is incomplete in itself undertakings of the former agent—like
5. CBA does not foster industrial peace the “no strike clause” in the CBA
because of schism executed by the latter (Benguet
6. CBA was concluded in violation of an Consolidated Inc. vs. BCI Employees and
order enjoining the parties from Workers Union-PAFLU).
entering into a CBA until the issue of
representation is resolved 2. DEADLOCK BAR RULE - a petition for
7. Petition is filed during the 60-day certification election cannot be
freedom period entertained if, before the filing of the
petition for certification election, a
SUCCESSOR-IN-INTEREST DOCTRINE – bargaining deadlock to which an
When an employer with an existing CBA incumbent or certified bargaining agent
is succeeded by another employer, the is a party, had been submitted to
successor-in-interest who is a buyer in conciliation or arbitration or had become
good faith has no liability to the the subject of a valid notice of strike or
employees in continuing employment lockout.
and the collective bargaining agreement
because these contracts are in personam DEADLOCK – arises when there is an
impasse, which presupposes reasonable
LABOR LAW COMMITTEE

Basquiñez
effort at good faith bargaining which, (as incorporated by RA 6715)

despite noble intentions, did not
conclude in an agreement between the
parties. GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
INDICATIONS OF A GENUINE
DEADLOCK:
1. the submission of the deadlock  ART. 260. GRIEVANCE MACHINERY
to a third party conciliator or AND VOLUNTARY ARBITRATION
arbitrator 1. 
2. the deadlock is the subject of GRIEVANCE MACHINERY - a mechanism
a valid notice of strike or lockout for the adjustment of controversies or
disputes arising from the interpretation
3. NEGOTIATION BAR RULE - a petition or implementation of the CBA and the
for certification election cannot be interpretation or enforcement of
entertained if, before the filing of the company personnel policies
petition for certification election, the
duly recognized or certified union has  GRIEVANCE - arises when a dispute or
commenced negotiations with the controversy arises over the
employer in accordance with Art. 250 of implementation or interpretation of a
the Labor Code. CBA or from the implementation or
enforcement of company personnel
4. CERTIFICATION YEAR RULE – no policies, and either the union or the
petition for certification election may be employer invokes the grievance
filed within one year from the date of a machinery provision for the adjustment
valid certification, consent, or run-off or resolution of such dispute or
election or from the date of voluntary controversy.
recognition
NATURE OF GRIEVANCE PROCEDURE -
It is a “must” provision in any CBA and
1.  EXAMPLES OF BAD no collective agreement can be
FAITH BARGAINING: registered in the absence of such
procedure.
1. Surface Bargaining – occurs when It is a part of the continuous
employer constantly changes its process of collective bargaining intended
positions over the agreement. to promote a friendly dialogue between
2. Boulwarism – occurs: labor and management as a means of
a. when the employer directly maintaining industrial peace.
bargains with the employee
disregarding the union.  VOLUNTARY ARBITRATION -
contractual proceedings where parties to
· The aim was to deal with the a dispute select a judge of their own
Union through the employees, choice and by consent submit their
rather than with the employees controversy to him for determination.
through the union. All grievances not settled within 7
b. Employer submits its proposals days from the date of its submission to
and adopts a take it or leave it the grievance machinery shall
stand. This is not negotiation automatically be referred voluntary
because the take it or leave it stand arbitration prescribed in the CBA.
implies threat. · Although the provision
mentions “parties to a
3. Side Bar Technique collective bargaining
agreement,” it does not
mean that a grievance
machinery cannot be set up
TITLE VII- A in a CBA-less enterprise. In
CHAIRPERSONS
any work place where

grievance can arise, a GROSS VIOLATION – flagrant and/or
grievance machinery malicious refusal to comply with the
(regardless of name) can be economic provisions of the CBA.
established.
· In a unionized company, Art. 1. JURISDICTION BY AGREEMENT OF
255 allows an employee, THE PARTIES (Art. 262)
union member or not, to
raise a grievance directly to -all other disputes including ULP
the employer. and bargaining deadlocks
· The disputes the parties may
 ARBITRATION MAY BE INITIATED BY: submit to a Voluntary Arbitrator
can include any or all the
1. SUBMISSION AGREEMENT – disputes mentioned in Art. 217
where the parties define the which otherwise fall under the
disputes to be resolved; or exclusive jurisdiction of a labor
2. DEMAND OR NOTICE invoking a arbiter.
collective agreement · Voluntary arbitration may be
arbitration clause. viewed as a master procedure to
prevent or resolve labor disputes
 ART 261. JURISDICTION OF 1.  GROUNDS FOR JUDICIAL

VOLUNTARY ARBITRATORS OR PANEL REVIEW OF DECISIONS OF VOLUNTARY
OF VOLUNTARY ARBITRATORS ARBITRATORS:
2. JURISDICTION OF 124. Lack of jurisdiction

VOLUNTARY ARBITRATORS: 1. Grave abuse of discretion
2. Violation of due process
123. EXCLUSIVE ORIGINAL 3. Denial of substantial justice
JURISDICTION CONFERRED BY LAW 4. Erroneous interpretation of the law
a)All grievances arising from the · A voluntary arbitrator is a

interpretation or implementation “quasi-judicial instrumentality (Sec 9
of the CBA. BP129 as amended by RA 7902);”
b) Those arising from the hence, a petition for certiorari under
interpretation or enforcement of Rule 65 of the Rules of Court will lie
company personnel polices. where a grave abuse of discretion or
c)Hear and decide wage distortion an act without or in excess of
issues arising from the jurisdiction of the voluntary
application of any wage orders arbitrator is shown, which may be
in organized establishments. filed with the Court of Appeals.
d) Unresolved grievances arising
from the interpretation and TITLE VIII
implementation of the
productivity incentive programs STRIKES AND LOCKOUTS AND
under RA 6071 .
FOREIGN INVOLVEMENT IN TRADE
· It is the labor arbiter and not the UNION ACTIVITIES
grievance machinery which has CHAPTER I
jurisdiction over dismissals pursuant STRIKES AND LOCKOUTS
to the union security clause.
· violations of CBA, except those 1. 
which are gross in character, shall no ART. 263. STRIKES, PICKETING AND
longer be treated as ULP and shall LOCKOUTS
be resolved as grievances.
LABOR LAW COMMITTEE

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 STRIKE - Any temporary stoppage A. SIT-DOWN STRIKE - is

of work by the concerted action of characterized by a temporary work
employees as a result of an industrial stoppage of workers who thereupon
or labor dispute. seize or occupy property of the employer
IMPORTANCE: it is the most or refuse to vacate the premises of the
effective weapon of labor in protecting employer. ILLEGAL- amounts to a
the rights of employees to improve the criminal act because the employees
terms and conditions of their trespass on the premises of the
employment. employer.
· Government employees may form B. WILDCAT STRIKE- is a work stoppage
labor unions but are not allowed to that violates the labor contract and is
strike. not authorized by the union. ILLEGAL- It
· Only legitimate labor is not valid because it fails to comply
organizations are given the right to with certain requirements of the law, to
strike. wit: notice of strike, vote, and report on
· Ununionized workers may hold a strike vote.
protest action but not a strike C. SYMPATHETIC STRIKES- are work
· Not all concerted activities are stoppages of workers of one company to
strikes; they may only be protest make common cause with other strikers
actions. And they do not necessarily of other companies, without demands or
cause work stoppage by the grievances of their own against the
protesters. A strike, in contrast, is employer. ILLEGAL - because there is
always a group action accompanied no labor dispute between the workers
by work stoppage. who are joining the strikers and the
 LOCKOUT - means the temporary latter’s employer.
refusal of an employer to furnish work as D. SECONDARY STRIKES- are work
a result of an industrial or labor dispute. stoppages of workers of one company to
exert pressure on their employer so that
 PICKETING - the act marching to the latter will in turn bring pressure
and fro the employer’s premises, usually upon the employer of another company
accompanied by the display of placards with whom another union has a labor
and other signs making known the facts dispute. ILLEGAL- because there is no
involved in a labor dispute. This is an labor dispute involved.
exercise of one’s freedom of speech.
IS A “WELGA NG BAYAN” LEGAL?
 STRIKE-BREAKER - any person NO. A “welga ng bayan” is illegal
who obstructs, impedes or interferes by because it is a political strike and
force, violence, coercion, threats or therefore there is neither a bargaining
intimidation with any peaceful picketing deadlock nor any ULP. It is a political
by employees during any labor rally.
controversy affecting wages, hour or
conditions of work or in the exercise of  GROUNDS FOR THE
the right to self organization or DECLARATION OF STRIKE:
collective bargaining 1. deadlock in collective bargaining
 STRIKE AREA – the establishment, (ECONOMIC); and/or
warehouse, depots, plants or offices,
including the sites or premises used as 2. unfair labor practices (POLITICAL)
runaway shops of the employer struck
against, as well as the immediate
vicinity actually used by picketing ECONOMIC STRIKE 1.ULP STRIKE
strikers in moving to an fro before all
[POLITICAL]
points of entrance to and exit from said
establishment A. NATURE
SOME EXAMPLES OF STRIKES AND
THEIR VALIDITY
CHAIRPERSONS
- A voluntary strike - An involuntary can stage a valid

because the strike; the labor strike.
employee will organization is E. STRIKE DURATION PAY IN CASE OF A
declare a strike to forced to go on LEGAL STRIKE
compel management strike because of
to grant its demands. the ULP - not entitled to said - may be awarded
committed pay based on the the said paid in the
principle that a ‘fair discretion of the
against them by
day’s wage accrues authority deciding
the employer. It is the case.
an act of self- only for a fair day’s
defense since the labor’
employees are
being pushed to  CHARACTERISTICS OF STRIKES:
the wall and their 1. there must be an established
only remedy is to relationship between the strikers and
stage a strike. the person/s against whom the strike is
B. INITIATED BY: called
- The collective - either 2. the relationship must be one of
bargaining agent of a. Collective employer and employee
the appropriate bargaining agent 3. the existence of a dispute
bargaining unit can or between the parties and the utilization
declare an economic b. the legitimate by labor of the weapon of concerted
strike. labor organization refusal to work as a means of persuading
in behalf of its or coercing compliance with the working
members men’s demands
C. COOLING OFF PERIOD 4. the contention advanced by the
-30 days from the workers that although the work ceases,
filing of the notice of the employment relation is deemed to
strike before the -15 days from the continue albeit in a state of belligerent
intended date of filing of the suspension
actual strike subject notice of strike. 5. there is work stoppage, which
to the 7-day strike stoppage is temporary
ban. 6. the work stoppage is done
D. EXCEPTION TO THE COOLING- through the concerted action of the
OFF PERIOD employees
7. the striking group is a legitimate
- No exception— - the cooling off
period may be labor organization, and in case of
mandatory.
dispensed with, and bargaining deadlock, is the employees’
the union may take sole bargaining representative.
immediate action in
- Notice of strike case of dismissal  TESTS IN DETERMINING THE
and strike vote from employment of LEGALITY OF A STRIKE:
maybe dispensed their officers duly 1. Purpose Test
with. They may elected in 2. Compliance with Procedural and
strike immediately. accordance with the
union’s Constitution
substantive requirements of law
and By-laws, which 3. Means employed test
may constitute
union busting 1. PURPOSE TEST - The strike must be
where the due to either
existence of the - bargaining deadlock and/or
union is - unfair labor practice.
threatened.
2. COMPLIANCE WITH PROCEDURAL &
- BUT it must still
observe the
SUBSTANTIVE REQUIREMENTS OF
mandatory 7-day LAW to wit (a-d):
period before it
LABOR LAW COMMITTEE

Basquiñez
a. notice of strike 3. MEANS EMPLOYED TEST-A strike

b. 30/15-day cooling-off period may be legal at its inception but
before the intended date of actual eventually be declared illegal if the
strike subject to the 7-day strike ban. strike is accompanied by violence
which violence is widespread,
COOLING –OFF PERIOD - that period pervasive and adopted as a matter of
of time given the NCMB to mediate and policy and not merely violence which
conciliate the parties. is sporadic which normally occur in a
· It is that span of time strike area [see prohibited activities
allotted by law for the under art. 264].
parties to settle
theirdisputes in a peaceful NOTE: The 3 tests must concur.
manner, before staging a Non-compliance with any of the
strike or lockout. aforementioned requisites renders the
strike illegal.
c. strike vote
 EFFECT OF GOOD FAITH OF
STRIKE VOTE - a requirement STRIKERS ON LEGALITY OF STRIKE - A
wherein the decision to declare a strike strike may be considered legal where the
must be: union believed that the company
1. approved by a MAJORITY of the committed ULP and the circumstances
total union membership in the warranted such belief in good faith,
bargaining unit concerned [not although subsequently such allegations
of the whole bargaining unit], of ULP are found out as not true. (Bacus
2. obtained by SECRET BALLOT vs. Ople)
in MEETINGS OR
REFERENDA called for the  TOTALITY DOCTRINE - the
purpose. culpability of an employer’s remarks are
to be evaluated not only on the basis of
PURPOSE OF A STRIKE VOTE: - to their implicit implications but are to be
ensure that the intended strike is a appraised against the background of and
majority decision in conjunction with collateral
· The report on the strike circumstances.
vote must be submitted to the Under this “doctrine” expressions
DOLE at least 7 days before of opinion by an employer which, though
the intended strike subject to innocent in themselves, frequently were
the cooling-off period. held to be culpable because:
a. of the circumstances
under which they were uttered
d. 7-day strike ban b. the history of the particular
employer’s labor relations of
7-DAY STRIKE BAN – it is the 7 day anti-union bias or
waiting period before the date of the c. because of their connection
purported strike [within which the union with an established collateral
intending to conduct a strike must at plan of coercion or interference.
least submit a report to the Department WHEN CAN THE SEC. OF LABOR
as to the result of the strike vote] ASSUME JURISDICTION OVER A STRIKE?
intended to give the Department an 1.there exists a labor dispute causing or
opportunity TO VERIFY whether the likely to cause a strike or lockout in a
projected strike really carries the INDUSTRY INDISPENSABLE TO THE
imprimatur of the majority of the union NATIONAL INTEREST,
members in addition to the cooling off 2.the Secretary of Labor and
period before actual strike. Employment may:
a. decide it, or

CHAIRPERSONS
b. certify the same to the NLRC for legality or illegality of strike.

COMPULSORY ARBITRATION. (Int’l Pharmaceuticals vs. Sec of
Labor; 09 January 1992).
NOTE: What constitutes
indispensable industry is based solely f. Power of Sec. of Labor is plenary
upon the discretion of the Secretary of and discretionary. (St. Luke’s
Labor. Medical Center vs. Torres; 29 June
1993; reiterated in PAL vs.
 EFFECTS OF THE ASSUMPTION Confesor; 10 March 1994).
OF JURISDICTION OF THE SECRETARY
IN CASE THE STRIKE IS DECLARED
1. AUTOMATICALLY ENJOINS the LEGAL, ARE THE STRIKERS ENTITLED
intended or impending strike or TO STRIKE DURATION PAY?
lockout as specified in the
assumption or certification order; GENERAL RULE: Strikers are not
entitled to their wages during the period
2. if one has already taken place at of a strike, even if the strike is legal.
the time of assumption or
certification, all striking or locked- EXCEPTIONS:
out employees shall IMMEDIATELY
RETURN TO WORK; and 1. In case of a ULP STRIKE, in the
discretion of the authority deciding
3. the employer shall immediately the case [see table for more
resume operations and READMIT ALL distinction bet. Economic and ULP
WORKERS under the same terms and strike]
conditions prevailing before the
strike or lockout. 2. Where the strikers VOLUNTARILY
AND UNCONDITIONALLY OFFERED
· A motion for reconsideration TO RETURN TO WORK, but the
does not suspend the effects as the employer refused to accept the
assumption order is immediately offer [e.g. of an “unconditional
executory. offer”: “we will return tomorrow”
and NOT “willing to return
 ISSUES THAT THE SECRETARY OF provided]
LABOR CAN RESOLVE WHEN HE
ASSUMES JURISDICTION OVER A LABOR · They are entitled to backwages from
DISPUTE: the date the offer was made
c. Only issues submitted to the 3. Where there is RETURN-TO-WORK

Secretary may be resolved by him. ORDER and the employees are
(PAL vs. Sec. of Labor, 23 January discriminated against.
1991).
- They are entitled to backwages
d. Issues submitted to the Secretary from the date of discrimination.
for resolution and such issues
involved in the labor dispute itself.  RULE ON REINSTATEMENT OF
(St. Scholastica’s College vs. STRIKING WORKERS:
Torres; 29 June 1992)
GENERAL RULE : Striking employees
e. Secretary of Labor may subsume are entitled to reinstatement, regardless
pending labor cases before Labor of whether or not the strike was the
Arbiters which are involved in the consequence of the employer’s ULP
dispute and decide even issues REASON: because while out on
falling under the exclusive and strike, the strikers are not considered to
original jurisdiction of labor have abandoned their employment, but
arbiters such as the declaration of
LABOR LAW COMMITTEE

Basquiñez
rather have only ceased from their

labor. · without the necessary
strike or lockout vote first
· The declaration of a strike is having been obtained and
NOT a renunciation of reported to the Department.
employment relation.
EXCEPTIONS - The following strikers NO strike or lockout shall be

are NOT entitled to reinstatement: declared:
1. Union officers who knowingly
participate in an illegal strike; and a. AFTER assumption of
2. any striker/union member who jurisdiction by the President
knowingly participates in the or the Secretary or
commission of illegal acts during the
strike. b. AFTER certification or
submission of the dispute to
· Those union members who compulsory or voluntary
joined an illegal strike but have arbitration or
not committed any illegal act
shall be reinstated but without c. DURING the pendency of
any backwages. cases involving the same
grounds for the strike or
 RULE IN STRIKES IN HOSPITALS lockout.
1. It shall be the duty of striking  THIRD PERSONS

employees or locking-out employer to
provide and maintain an effective 2. NO person [3rd persons] all obstruct,
SKELETAL WORKFORCE of medical impede or interfere with by force,
and other health personnel for the violence, coercion, threats or
duration of the strike or lockout. intimidation
· any peaceful picketing by
2. SECRETARY OF LABOR MAY employees
IMMEDIATELY ASSUME JURISDICTION
WITHIN 24 HOURS FROM · during any labor
KNOWLEDGE of the occurrence of controversy or in the
such strike or lock-out or certify it to exercise of the right of self-
the Commission for compulsory organization or collective
arbitration. bargaining or
 ART. 264. PROHIBITED · shall aid or abet such

ACTIVITIES obstruction or interference.
 LABOR ORGANIZATIONS  EMPLOYERS
1. No labor organization or employer 3. NO employer shall use or employ

shall declare a strike or lockout any STRIKE-BREAKER nor shall any
person be employed as a
· without first having strikebreaker.
bargained collectively in
accordance with Title VII of PUBLIC OFFICIAL OR EMPLOYEE
this Book or
4. NO public official or employee,
· without first having filed including officers and personnel of
the notice required in Art. 263 the New Armed Forces of the
or
CHAIRPERSONS
Philippines of the Integrated to the union members. offer of the

National Police, or armed persons, union is
acceptable to
· shall bring in, introduce or the board of
directors,
escort in any manner, any trustees or
individual who seeks to partners.
replace strikes in entering PURPOSE
or leaving the premises of a 2. to determining 2. to
strike area, or work in place whether or not the determining
of the strikers. improved offer of the whether or not
EMPLOYER is acceptable the improved
· The police force shall keep to the union members. offer of the
out of the picket lines · to ascertain the UNION is
real sentiment of acceptable to
unless actual violence or
the silent majority the union
other criminal acts occur of the union members.
therein: members on strike. to ascertain
the real
Provided, That nothing herein shall sentiment of the
be interpreted to prevent any public silent majority of
officers from taking any measure the union
necessary to: members on
strike.
a. maintain peace and order, PERIOD OF FILING
3. on or before the 3. on or
30th day of the strike before the 30th
b. protect life and property, day of the
and/or lockout
LIMITATION 4. applies
c. enforce the law and legal 125. 4. applies only only to economic
order. to economic strikes strikes-deadlock
(deadlock) in bargaining
(lockout)
 PERSONS ENGAGED IN PICKETING
NO person engaged in PICKETING shall:
 ART. 266. ARREST AND DETENTION
a. commit any act of violence,
coercion or intimidation or  General rule is that a police officer
cannot arrest or detain a union
b. obstruct the free ingress to or member for union activities without
egress from the employer’s premises previous consultations with the
for lawful purposes,or Secretary of Labor EXCEPT on
c. obstruct public thoroughfares grounds of:
a. national security
 ART. 265. IMPROVED OFFER vs.
REDUCED OFFER BALLOTING b. public peace
IMPROVED OFFER REDUCED c. commission of a crime

BALLOTING OFFER
BALLOTING
BOOK SIX
1. a referendum 1. a
conducted by the NCMB referendum POST EMPLOYMENT
on or before the 30th day conducted by the
of the strike, for the NCMB for the
purpose of determining purpose of TITLE I
whether or not the determining
improved offer of the whether or not TERMINATION OF
employer is acceptable the reduced
LABOR LAW COMMITTEE

Basquiñez
EMPLOYMENT should not be ordered because that

would in effect compel the employer to
 ART. 279. SECURITY OF TENURE do the impossible. In such a situation,
 SECURITY OF TENURE - the the employee should merely be given
constitutional right granted the SEPARATION PAY CONSISTING OF ONE
employee, that the employer shall not MONTH SALARY FOR EVERY YEAR OF
terminate the services of an employee SERVICE (1:1).
except for just cause or when authorized
by law.  CIRCUMSTANCES WHEN
RELIEFS AVAILABLE TO AN COMPANY MAY NOT REINSTATE DESPITE
ILLEGALLY DISMISSED EMPLOYEE: ORDER OF REINSTATEMENT
1. TRANSFER OF BUSINESS OWNERSHIP
A. REINSTATEMENT - Restoration of -There is no law requiring a
the employee to the state from which he purchasing corporation to absorb the
has been unjustly removed or separated employees of the selling corporation.
without loss of seniority rights and other A fortiori, reinstatement of unjustly
privileges. dismissed employees CANNOT be
enforced against the new owner
 FORMS OF REINSTATEMENT: UNLESS there is an express
1. ACTUAL OR PHYSICAL REINSTATEMENT agreement on the assumption of
- the employee shall be admitted liabilities by the purchasing
back to work corporation;
2. PAYROLL REINSTATEMENT 2. When reinstatement is rendered
- the employee is merely reinstated IMPOSSIBLE due to the abolition of
in the payroll. the position;
3. When the business has CLOSED
May a court order the DOWN;
reinstatement of a dismissed 4. PHYSICAL INCAPACITY of the
employee even if the prayer of the employee; and
complaint did not include such relief? 5. DOCTRINE OF STRAINED RELATIONS
- When the employer can no longer
YES. So long as there is a finding trust the employee and vice-versa,
that the employee was illegally reinstatement could not effectively
dismissed, the court can order the serve as a remedy. This doctrine
reinstatement of an employee even if only applies only to positions which
the complaint does not include a prayer require trust and confidence
for reinstatement, unless, of course, the
employee has waived his right to - Under the circumstances
reinstatement. By law, an employee who where the employment
is unjustly dismissed is entitled to relationship has become so
reinstatement, among others. The mere strained to preclude a
fact that the complaint did not pray for harmonious working
reinstatement will not prejudice the relationship, and that all hopes
employee, because technicalities of law at reconciliation are nil after
and procedure are frowned upon in labor reinstatement, it would be
proceedings (General Baptist Bible more beneficial to accord the
College v. NLRC; 219 SCRA 549). employee backwages and
separation pay.
What happens if there is an order
of reinstatement but the position is no B. BACKWAGES – the relief given to
longer available? an employee to compensate him for lost
The employee should be given a earnings during the period of his
SUBSTANTIALLY EQUIVALENT POSITION. dismissal.
If NO SUBSTANTIALLY EQUIVALENT
POSITION IS AVAILABLE, reinstatement  PERIOD COVERED BY THE
PAYMENT OF BACKWAGES -
CHAIRPERSONS
Backwages shall cover the period from REGULAR EMPLOYMENT - one wherein
the date of dismissal of the employee up an employee is engaged to perform
to the date of actual reinstatement activities which are usually necessary or
desirable in the usual business or trade
 HOW COMPUTED - Under existing of the employer.
law, backwages is computed from the - He is a regular employee at the point
time of the illegal dismissal up to time of of hiring.
actual reinstatement.
Test of regularity: nature of
 INCLUDED IN THE COMPUTATION employment.
OF BACKWAGES
1. transportation and emergency CASUAL EMPLOYMENT – one wherein an
allowances employee is engaged to perform
2. vacation or service incentive leave activities which are not necessary or
and sick leave desirable in the usual trade or business
3. 13th month pay. of the employer.
- becomes a regular employee after
NOTE: facilities such as uniforms, one (1) year of service.
shoes, helmets and ponchos should NOT -
be included in the computation of REGULAR EMPLOYEE VS.
backwages. PROJECT EMPLOYEE
REASON: said items are given free,
to be used only during official tour of PROJECT REGULAR
duty not for private or personal use. EMPLOYEE EMPLOYEE
 CIRCUMSTANCES THAT PREVENT A project employee is A regular

one whose employee is one
AWARD OF BACKWAGES:
employment is fixed engaged to perform
1. death of the employee for a specific project activities which are
2. physical and mental incapacity or undertaking the usually necessary or
3. business reverses completion of which desirable in the usual
4. closure of business has been determined business or trade of
5. reinstatement of dismissed employee at the time of the the employer
confinement in jail engagement of the
employee. (See Art.
Which takes precedence in 280 LC)
conflicts arising between employer’s
MANAGEMENT PREROGATIVE and the
employees’ right to security of tenure?
The employee’s right to security  TEMPORARY EMPLOYMENT OR
of tenure. Thus, an employer’s EMPLOYMENT FOR A FIXED SPECIFIC
management prerogative includes the PERIOD - one wherein an employee is
right to terminate the services of the engaged to work on a specific project or
employee but this management undertaking which is usually necessary or
prerogative is limited by the Labor Code desirable in the usual business or trade
which provides that the employer can of the employer, the completion of
terminate an employee only for a just which has been determined at the time
cause or when authorized by law. This of the engagement of the employee.
limitation is because no less than the - He does not become a regular
constitution recognizes and guarantees employee. The employment is
employee’s right to security of tenure. coterminous with the specific
(Art. 279, Labor Code; Art. XIII, Sec. 3, period.
Constitution)
 SEASONAL EMPLOYMENT - one
 ART. 280. REGULAR AND CASUAL wherein an employee is engaged to work
EMPLOYMENT during a particular season on an activity
that is usually necessary or desirable in
LABOR LAW COMMITTEE

Basquiñez
the usual business or trade of the 3.the employer’s dissatisfaction

employer. must be real and in good faith, not
· Pakiao employees are considered feigned so as to circumvent the
employees as long as the contract or the law
employer exercises control over [DISSATISFACTION—REAL AND IN
the means by which such GOOD FAITH]; and
workers are to perform their 4.there must BE NO UNLAWFUL
work. DISCRIMINATION in the dismissal.
· Employee is considered an GENERAL RULE: Probationary

regular employee insofar as the employment shall not exceed six months
season to which he was from the date the employee started
employed is concerned. working.
- during the off-season his
employment is merely EXCEPTIONS:
suspended not terminated 1. when it is covered by an
(Phil. Tobacco Flue Curring apprenticeship agreement stipulating a
and Drying Corp. vs. NLRC). longer period; or
2. when the parties to an
 PROBATIONARY PERIOD OF employment contract agree otherwise,
EMPLOYMENT - the period needed to such as when the same is established by
determine the fitness for the job, i .e., company policy or when the same is
the time needed to learn the job. required by the nature of the work to be
It is the period during which the performed by the employee
employer may determine if the
employee is qualified for possible  EFFECT IF PROBATIONARY
inclusion in the regular force. EMPLOYEE IS ALLOWED TO WORK
PURPOSE: To afford the employer an BEYOND 6 MONTHS
opportunity to observe the fitness of a
probationary employee at work. If the probationary employee is
NOTE:The standard which the allowed to work beyond the period of 6
probationary employee is to meet must months or the agreed probationary
be made known by the employer to the period, said employee becomes a regular
employee at the time of engagement. employee by operation of law.
The services of probationary employees Under the Labor Code, “an
may be terminated for the same causes employee who is allowed to work after a
as in the case of regular employee, probationary period shall be considered
except that there is an additional ground a regular employee.” (Art. 281.)
– failure to meet the standard.  ART. 282. TERMINATION BY
EMPLOYER
 LIMITATIONS ON THE
EMPLOYER’S POWER TO TERMINATE A  SECURITY OF TENURE - An
PROBATIONARY EMPLOYMENT employer CANNOT terminate the
CONTRACT: services of an employee EXCEPT for a
1. the power must be exercised in just cause or when authorized by law.
accordance with the specific  GUIDELINES TO DETERMINE THE
requirements of the contract VALIDITY OF TERMINATION:
[COMPLIANCE WITH SPECIFIC 1. Gravity of the offense
REQUIREMENTS]; 2. Position occupied by the
2.if a particular time is prescribed, employee
the termination must be within 3. Degree of damage to the
such time and if formal notice is employer
required, then that form must be 4. Previous infractions of the same
used [WITHIN PARTICULAR offense
PRESCRIBED TIME]; 5. Length of service

CHAIRPERSONS
1. Written NOTICE should be served

A. JUST CAUSES [MaNaBaCA]: to the employee specifying the
1. Serious MISCONDUCT OR WILLFUL ground or grounds for termination
DISOBEDIENCE by the employee of and giving the said employee
the lawful orders of his employer or reasonable opportunity within
representative in connection with his which to explain;
work; 2. A HEARING OR CONFERENCE
· Misconduct- transgression of should be held during which the
some established and definite employee concerned, with the
rule of action, a forbidden act, a assistance of counsel, if the
dereliction of duty, willful in employee so desires, is given the
character, and implies wrongful opportunity to respond to the
intent and not mere error in charge, present his evidence and
judgment. (Dept. of Labor present the evidence presented
Manual, Sec. 4353.01) against him;
3. A WRITTEN NOTICE OF
2. Gross and habitual NEGLECT by the TERMINATION, if termination is
employee of his duties; (Repeated the decision of the employer,
absenteeism and tardiness) should be served on the employee
indicating that upon due
3. FRAUD OR WILLFUL BREACH by the consideration of all the
employee of the trust reposed in him circumstances, grounds have been
by his employer or duly organized established to justify his
representative termination.
· Fraud must be committed · For termination of
against the employer or his employment based on
representative and in connection authorized causes, the
with the employee’s work. requirements of due process
((Dept. of Labor Manual, Sec. shall be deemed complied with
4353.01 [3]) upon service of a written notice
to the employee and the
4. Commission of a CRIME OR OFFENSE appropriate Regional office of
BY THE EMPLOYEE AGAINST THE the Department of Labor and
PERSON OF HIS EMPLOYER or any employment at least thirty days
immediate member of his family or before the effectivity of the
his duly authorized representative; termination specifying the
and grounds for termination.
· Conviction or prosecution is not
required. NOTE: Under the so-called WENPHIL
DOCTRINE if the services of the
5. Other causes ANALOGOUS to the employee was terminated due to a just
foregoing. or authorized cause but the affected
· A cause must be due to the employee’s right to due process has
voluntary or willful act or been violated, the dismissal is legal but
omission of the employee. the employee is entitled to damages by
(Nadura v. Benguet way of indemnification for the violation
Consolidated; G.R. No. L-17780) of the right.
 DUE PROCESS TO BE OBSERVED · SERRANO vs. ISETANN et. al.

BY THE EMPLOYER - For termination of abandoned the WENPHIL
the employment based on the any of the DOCTRINE and ruled that if the
just causes for termination, the employee is dismissed under
requirements of due process that an just or authorized cause but the
employer must comply with are: (TWIN affected employee’s right to
NOTICES) due process has been violated,
his dismissal becomes
LABOR LAW COMMITTEE

Basquiñez
ineffectual. Therefore, the

employee is entitled to · Reorganization as a cost-saving
backwages from the time he was device is acknowledged by
dismissed until the jurisprudence. An employer is not
determination of the justness of precluded from adopting a new
the cause of the dismissal. policy conducive to a more
economical and effective
· AGABON vs. NLRC (Nov. 17, management, and the law does not
2004) abandoned the Serrano require that the employer should
doctrine and REINSTATED THE be suffering financial losses before
WENPHIL DOCTRINE. The he can terminate the services of
sanctions, however must be the employee on the ground of
stiffer than that imposed in redundancy (DOLE PHILIPPINES,
Wenphil. INC et al., vs. NATIONAL LABOR
RELATIONS COMMISSION et al.)
PREVENTIVE SUSPENSION – when
there is an imminent threat to the lives 3. RETRENCHMENT to prevent losses
and properties of the employer, his (there is excess of employees and
family and representatives as well as the employer wants to prevent financial
offender’s co-workers by the continued losses)
service of the employee then he may be
placed under preventive suspension CONDITIONS UNDER WHICH AN
pending his investigation, leading to EMPLOYER MAY RETRENCH:
termination. (a) substantial losses which are not
merely de minimis in extent;
· preventive suspension should not (b) imminence of such substantial
last for more than thirty (30) losses;
days. The employee should be (c) retrenchment would effectively
made to resume his work after prevent the expected and additional
30 days. losses;
(d) the alleged losses and expected
- it can be extended provided the losses must be proven by sufficient and
employee’s wages are paid after the convincing evidence. (NDC-GUTHRIE
30 day period. PLANTATIONS, INC., vs. NATIONAL LABOR
RELATIONS COMMISSION, ET. AL)
 ARTS. 283-284.
4. closing or CESSATION OF
B. AUTHORIZED CAUSES OF OPERATION of the establishment or
TERMINATION BY THE EMPLOYER: undertaking UNLESS the closing is for
the purpose of circumventing the
1. installation of labor-saving devices provisions of the Labor Code.
(AUTOMATION)
5. INSTALLATION of labor saving
devices(Automation, Robotics)
2. REDUNDANCY (superfluity in the

performance of a particular work) 6. DISEASE
· redundancy, for purposes of the a. the disease is incurable

Labor Code, exists where the within 6 months and the
services of an employee are in continued employment of
excess of what is reasonably the employee is prohibited
demanded by the actual by law or prejudicial to his
requirements of the enterprise. health as well as to the
(Wishire File Co. Inc. vs. NLRC) health of his co-employees

CHAIRPERSONS
b. with a certification from separation pay due.)

public heath officer that the
disease is incurable within 6
months despite due Disease Equivalent to at
medication and treatment. least one-month salary
or to ½ month salary
for every year of
· Before an employer could service, whichever is
dismiss an employee based on a greater, a fraction of at
disease, Section 8 of Rule 1, Book VI least 6 months shall be
of the Omnibus Rules Implementing considered one (1)
the Labor Code requires a whole year.
certification by a competent public
health authority that the disease is
of such a nature or at such stage
that it cannot be cured within a NOTE: ARTICLE 283 governs the
period of 6 months even with proper grant of separation benefits ‘in case of
medical treatment. (Cathay Pacific closures or cessation of operation’ of
Airways vs. NLRC and Martha business establishments NOT due to
Singson) serious business losses or cessation of
operation [North Davao Mining Corp. vs.
· DISCRIMINATION IN ANY FORM NLRC, et al]. Therefore, the employee
FROM PRE-EMPLOYMENT TO POST- is not entitled to such benefit if the
EMPLOYMENT, INCLUDING HIRING, closure was due to SERIOUS BUSINESS
PROMOTION OR ASSIGNMENT, BASED LOSSES.
ON THE ACTUAL, PERCEIVED OR
SUSPECTED HIV STATUS OF AN
INDIVIDUAL IS PROHIBITED.  When termination of employment
TERMINATION FROM WORK ON THE is brought by the failure of an employee
SOLE BASIS OF ACTUAL, PERCEIVED to meet the standards of the employer in
OR SUSPECTED HIV STATUS IS case of probationary employment, it
DEEMED UNLAWFUL. (SEC. 35, RA shall be sufficient that a written notice
8504, HIV/AIDS LAW) is served the employee within a
reasonable time from the effective date
of termination.
CAUSE OF SEPARATION PAY
TERMINATION
 When termination is brought
Automation Equivalent to at
least one month pay or about by the completion of the contract
at least one month pay or phase thereof, no prior notice is
for every year of required
service, whichever is
higher
Redundancy Equivalent to at
least one month pay or
at least one month pay
for every year of
service, whichever is
higher  ART. 285. TERMINATION BY
Retrenchment Equivalent to one EMPLOYEE
month pay or at least
one-half month pay for TERMINATION BY THE EMPLOYEE:
every year of service
Closures or Equivalent to one a. WITHOUT JUST CAUSE- by serving a
cessation of month pay or at least WRITTEN NOTICE on the employer at
operations not one-half month pay for least one month in advance. The
due to serious every year of service employer upon whom no such notice was
business losses or (If due to severe
financial reverses financial losses, no
LABOR LAW COMMITTEE

Basquiñez
served may hold the employee liable for Unless the parties provide for
damages. broader inclusions, the term “one half
b. WITH JUST CAUSE - An employee may (1/2) month salary” shall mean:
put an end to establish WITHOUT · 15 days plus 1/12 of the 13 th month
SERVING ANY NOTICE on the employer pay and
for any of the following just causes · the cash equivalent of NOT more
[SUCA]: than 5 days of service incentive
leaves.
1. SERIOUS INSULT by the (22.5 days per year of service)
employer or his representative
on the hour and person of the Under Section 26, R.A. No. 4670,
employee; otherwise known as the Magna Carta for
2. Inhuman and UNBEARABLE Public School Teachers, public school
TREATMENT accorded the teachers having fulfilled the age and
employee by the employer or his service requirements of the applicable
representative; retirement laws shall be given ONE
3. Commission of a CRIME OR RANGE SALARY RAISE upon retirement,
OFFENSE by the employer or his which shall be the basis of the
representative against the computation of the lump sum of the
person of the employee or any of retirement pay and the monthly benefit
the immediate members of his thereafter.
family; and
4. Other causes ANALOGOUS to any NOTE: Exempted from the payment
of the foregoing. of retirement pay are retail, service and
agricultural establishments or operations
employing NOT more than ten (10)
 ART. 287. RETIREMENT employees or workers.
 RETIREMENT AGE - The age of

retirement is that specified in the CBA or Age Retirement
in the employment contract. In the 60-65 Optional but the
absence of a retirement plan or employee must have served
agreement providing for retirement at least 5 years
benefits of employees in an
establishment, an employee upon 65 Compulsory (no need
reaching the age of 60 years or more, for five years of service)
but not beyond 65 years which is hereby
declared as the compulsory retirement
age, who has served at least 5 years in
said establishment.
· The rule is different with respect
to underground mining employees
whose optional retirement age is
50-60 provided they have at least
served for a period of 5 years (Art.
287 as amended by RA 8558).
BENEFITS- A retiree is entitled to

a retirement pay equivalent to at least
½ month salary for every year of service,
a fraction of at least six (6) months BOOK SEVEN
being considered as one whole year.
TRANSITORY AND FINAL

PROVISIONS
CHAIRPERSONS
governed by the Civil Code. Hence,

REINSTATEMENT prescribes in 4 years.
TITLE II
PRESCRIPTION OF OFFENSES AND VENUE: The Regional Arbitration Branch
CLAIMS where the workplace is located (NLRC
Rules of Procedure.
 ART. 291. MONEY CLAIMS
 PERIODS OF PRESCRIPTION
Cause Period of
Prescription
MONEY 3 years from the
CLAIMS accrual of the causes of
action
ULP 1 year from the
accrual of the cause of
action
ILLEGAL 4 years from the
DISMISSAL accrual of the cause of
action
REINST 4 years
ATEMENT
NOTE: The period of prescription Appendices

mentioned under Article 292 of the
Labor Code refers to and is limited to
money claims, all other cases of injury SPECIAL LAWS
to rights of a workingman being
LABOR LAW COMMITTEE

Basquiñez
employers and the

employees concerned
SOCIAL SECURITY SYSTEM d. The private benefit plan
RA1161 as amended by RA 8282 which the employer shall
continue for his employees
 COVERAGE: shall remain under the
employer’s managementand
Compulsory: control unless there is an
1. Compulsory upon all employees existing agreement to the
not over 60 years of age and contrary.
their employers e. Nothing in this Act shall be
2. In case of domestic helpers, construed as a limitation on
their monthly income should not the right of employers and
be less than one thousand pesos employees to agree on and
Limitation: Sec. 9 (a) adopt benefits which are
a. Any benefit already earned over and above those
by the employees under provided under this act
private benefit plans existing
at the time of the approval 3. Compulsory upon such self- employed
of the Act shall not be persons as may be determined by the
discontinued, reduced or Commission including but not limited to
otherwise impaired the following (Sec 9-A): (APAPI)
b. Private plans which are 1. All self employed
existing and in force at the professionals
time of compulsory coverage 2. Partners and single
shall be integrated with the proprietors
plan of the SSS in such a way 3. Actors and actresses
where the employer’s directors, scriptwriters and
contribution to his private news correspondents who do
plan is more than that not fall within the definition
required of him in this Act, of the term employee in
he shall pay to the SSS only Section 8 (d) of this Act
the contribution required of 4. Professional athletes,
him and he shall continue his coaches, trainers, and
contribution to such private jockeys
plan less his contribution to 5. Individual farmers and
the SSS so that the fishermen
employer’s total
contribution to his benefit Voluntary:
plan and and to the SSS
shall be the same as his 1. Spouses who devote full time to
contribution to his private managing the household and
benefit plan before any family affairs, unless they are
compulsory coverage. also engaged in other vocation or
c. Any changes, adjustments, employment which is subject to
modifications, eliminations mandatory coverage, may be
or improvements in the covered by the SSS on a
benefits to be available voluntary basis.
under the remaining private 2. Filipinos recruited by foreign
plan, which may be based employers for employment
necessary to adopt by reason abroad may be covered by the
of the reduced contribution SSS on a voluntary basis
thereto as a result of the 3. Employees separated from
integration shall be subject employment may continue to
to agreements between the pay contributions to maintain his
right to full benefits (Sec. 11)
CHAIRPERSONS
4. Self-employed with no income corporations owned or controlled by the

(11-A) Government
Self- employed person shall be
BY AGREEMENT: both the employer and employee at the
same time
Any foreign government,
international organization, or their  EMPLOYEE
wholly-owned instrumentality employing
workers in the Philippines, may enter Any person who performs
into an agreement with the Philippine services for an employer in which either
government for the inclusion of such or both mental and physical efforts are
employees in the SSS except those used and who receives compensation for
already covered by their respective civil such services, where there is an
service retirement systems (Sec.8 (j (4)). employer- employee relationship.
Self- employed person shall be
EXCLUDED EMPLOYMENT (SEC. 8 (J)): both the employer and employee at the
1. Employment purely casual and not same time
for the purpose of occupation or
business of the employer  DEPENDENTS:
2. Service performed on or in
connection with an alien vessel by 1. The legal spouse entitled by law
an employee if he is employed when to receive support from the
such vessel is outside the member
Philippines. 2. the legitimate, legitimated or
3. Service performed in the employ of legally adopted and illegitimate
the Philippine government or child who is unmarried, not
instrumentality or agency thereof. gainfully employed and has not
4. Service performed in the employ of reached 21 years of age or if 21
a foreign government, international years of age, he is congenitally
organization, or their wholly owned incapacitated or while still a
instrumentality; minor has been permanently
5. Services performed by temporary incapacitated and incapable of
employees, which may be excluded self- support, physically and
by regulation of the commission. mentally and
3. the parent who is receiving
 EFFECTIVE DATE OF COVERAGE: regular support from the
1. Employer: It shall take effect on member
the first day of his operation
2. Employee: On the day of his  BENEFICIARIES
employment
3. Self-employed: It shall take a. The dependent spouse until he
effect upon his registration with or she remarries, the
SSS dependent legitimate,
legitimated or legally adopted
Definition of Terms and illegitimate children who
shall be the primary
 EMPLOYER beneficiaries of the member
Any person natural or juridical, b. PROVIDED that the dependent
domestic or foreign, who carries on in illegitimate children shall be
the Philippines, any trade business, entitled to 50% of the share of
industry undertaking or activity of any the legitimate, legitimated or
kind and uses the services of another legally adopted children.
person who is under his orders as regards c. PROVIDED FURTHER in the
the employment except the Government absence of the legitimated,
and any of its political subdivisions, legally adopted or legitimate
branches or instrumentalities, including children, illegitimate children
LABOR LAW COMMITTEE

Basquiñez
shall be entitled to 100% of 4. Death Benefits

the benefits.
d. IN THEIR ABSENCE, the 5. Permanent disability benefits
dependent parents who shall
be the secondary 6. Funeral Benefit
beneficiaries. A funeral grant equivalent to Twelve
e. IN THE ABSENCE OF ALL of thousand pesos (P12, 000.00) shall
the foregoing, any person be paid, in cash or in kind, to help
designated by the covered defray the cost of funeral expenses
employee as secondary upon the death of a member,
beneficiary. including permanently totally
disabled member or retiree.
Benefits
7. Sickness benefit
1. Monthly pension Requirements:
a. A member must have paid at
2. Dependents pension least 3 monthly contributions
It shall be paid for each dependent in the twelve month period
child conceived on or before the immediately preceding the
date of the contingency but not semester of sickness or injury
exceeding five, beginning with the b. and is confined therefor for
youngest without substitution more than three days in a
PROVIDED that where there are hospital or elsewhere with the
legitimate and illegitimate children, approval of the SSS
the former shall be preferred.
8. Maternity Leave Benefit
3. Retirement benefits It shall be paid to a female
A member who has paid at least 120 employee who has paid at least 3
monthly contributions prior to monthly contributions in the twelve
the semester of retirement and month period immediately preceding
who: the semester of her childbirth or
a. has reached the age of miscarriage PROVIDED:
60 years and is already a. That the employee shall have
separated from notified her employer of her
employment or has pregnancy and the probable
ceased to be self- date of her childbirth which
employed notice shall be transmitted to
b. has reached the age of the SSS.
65 years, shall be b. The full payment shall be
entitled for as advanced by the employer
A covered member who is 60 years within 30 days from the filing
old not qualified under No. 1 of the maternity leave
shall still be entitled to application
retirement benefits PROVIDED, c. Payment of daily maternity
he is separated from benefits shall be a bar to the
employment and is not recovery of sickness benefits
continuing payment of d. The maternity benefits
contributions to the SSS on his provided under this section
own. shall be paid only for the first
4 deliveries or miscarriages
SUSPENSION OF MONTHLY PENSION: e. The SSS shall immediately
Upon the re-employment or reimburse the employer 100%
resumption of self-employment of the benefits advanced by
of a retired employee who is the latter
less than 65 years old. f. If no contributions were
remitted by the employer or
CHAIRPERSONS
no notice was given to SS, the COMPULSORY MEMBERSHIP (Sec. 3)

employer shall be liable for Compulsory for all employees (as
damages equivalent to the defined in Section 2 (d) of GSIS Law)
benefits which said employee receiving compensation who have not
member would otherwise have reached the compulsory retirement age,
been entitled to. irrespective of employment status,
EXCEPT MEMBERS OF THE ARMED
 Non-transferability of benefits FORCES AND THE PNP, subject to the
(Sec. 15) condition that they must settle first
Such benefits are not transferable their financial obligations with the GSIS
and no power of attorney or other and contractuals who have no employer
document executed by those and employee relationship with the
entitled thereto, in favor of any agencies they serve.
agent, attorney or any other person
for the collection thereof on their EXCEPT FOR THE MEMBERS OF
behalf shall be recognized, except THE JUDICIARY AND CONSTITUTIONAL
when they are physically unable to COMMISSIONS WHO SHALL HAVE LIFE
collect personally such benefits. INSURANCE ONLY, all members of the
GSIS shall have life insurance,
Sources of Fund retirement and all other social security
1. Collection: protection such as disability,
Beginning on the last day of the survivorship, separation and
month when an employee’s unemployment benefits.
compulsory coverage takes effect
and every month thereafter during  COMPUTATION OF SERVICE
his employment, his employer shall The computation of service for
pay the employer’s contribution and the purpose of determining the amount
shall deduct and withhold from such of benefits payable shall be FROM THE
employee’s monthly salary the DATE OF THE ORIGINAL APPOINTMENT/
employees contribution. ELECTION INCLUDING PERIODS OF SERVICE AT
The same time of collection for DIFFERENT TIMES UNDER THE AUTHORITY OF
self-employed THE REPUBLIC OF THE PHILIPPINES AND THOSE
2. Remittance: THAT MAY BE PRESCRIBED BY THE GSIS IN
It shall be remitted within the first COORDINATION WITH THE CIVIL SERVICE
10 days of each calendar month COMMISSION.
following the month for which they All service credited for
are applicable or within such time retirement, resignation or separation for
as the Commission may prescribe. which corresponding benefits have been
For self-employed they shall awarded shall be EXCLUDED in the
remit their contributions quarterly computation of service in case of
on such dates and schedules as the reinstatement in the service of an
Commission may require. employer and subsequent retirement or
separation which is compensable.
(NOTE: SEE TABLE ON SOCIAL WELFARE
LEGISLATION FOR COMPARISON WITH Definition of Terms
GSIS)
 Employer:
The national government, its
political subdivisions, branches,
agencies or instrumentalities
including GOCC’s and financial
institutions with original charters,
GOVERNMENT SERVICE the constitutional commissions and
INSURANCE SYSTEM the judiciary
RA 8291
 Employee or Member:
LABOR LAW COMMITTEE

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Any person receiving compensation Section 2 (Q) (defining disability) is

while in the service of an employer medically remote
as defined herein, whether by
election or appointment,  Temporary Total Disability
irrespective of status appointment, Accrues or arises when impaired
physical and/or mental faculties can
 Dependents: be rehabilitated and/or restored to
1. The legitimate spouse dependent their normal functions
for support upon the member or
pensioner  Permanent Partial Disability
2. The legitimate, legitimated Accrues or arises upon the
legally adopted child, including irrevocable loss or impairment of
the illegitimate child who is: certain portion/s of the physical
a. unmarried, faculties, despite which the member
b. not gainfully employed, is able to pursue a gainful
c. not over the age of occupation.
majority,
d. or is over the age of Sources of Fund
majority but
incapacitated and  Contributions
incapable of self-support 1. It shall be mandatory for the
due to a mental or member and the employer to
physical defect acquired pay the monthly contributions.
prior to age of majority 2. The employer shall include in its
3. Parents dependent upon the annual appropriation the
member for support necessary amounts for its share
of the contributions indicated
 Primary Beneficiary above PLUS any additional
The legal dependent spouse until premiums that may be required
he/she remarries on account of the hazards or
risks of its employees
 Secondary Beneficiary occupation.
The dependent parents and subject 3. Failure to do so shall subject the
to the restrictions on dependent employers to penal or
children, the legitimate descendants administrative sanctions.
 Disability  Collection and Remittance

Any loss or impairment of the normal 1. Collection: The employer shall
functions of the physical and/or report to the GSIS all pertinent
mental faculty of a member which information regarding the
reduces or eliminates his/her employee and shall deduct each
capacity to continue with his/her month from the salary or
current gainful occupation or engage compensation of each employee
in any other gainful occupation. the contribution payable by him.
2. Remittance: The employer shall
 Total Disability remit directly to the GSIS the
Complete incapacity to continue employees and employers
with his present employment or contributions within the first ten
engage in any gainful occupation due (10) days of the calendar month
to the loss or impairment of the following the month to which the
normal functions of the physical contributions apply.
and/or mental faculties of the 126. Benefits
member
 Permanent Total Disability 1. SEPARATION BENEFITS (SEC.
Accrues or arises when recovery 11):
from impairment mentioned in
CHAIRPERSONS
Separation benefits are given

to the: Specific conditions for
a. The member resigns or entitlement (Sec. 16):
separates from the service He shall receive monthly income
after he has rendered at benefit for life equal to the
least three (3) years of basic monthly pension effective
service but less than fifteen from the date of the disability.
(15) years or PROVIDED:
1. The member resigns or
separates from office after 1. He is in the service at the
he has rendered at least time of the disability
fifteen (15) years of service 2. IF SEPARATED FROM
and is below sixty (60) years SERVICE, he has paid at
of age at the time of least 36 monthly
resignation or separation. contributions within the 5
year period immediately
Separation benefits likewise preceding the disability or
include: has paid a total of at least
180 monthly contributions
UNEMPLOYMENT OR prior to the disability
INVOLUNTARY SEPARATION 3. IF HE WAS IN SERVICE AND
BENEFITS (Sec. 12): shall be HAS PAID A TOTAL OF AT
paid to a permanent employee LEAST 180 MONTHLY
who is involuntarily separated CONTRIBUTIONS, in addition
from the service due to the to the monthly income
abolition of his office or position benefit, he shall receive a
usually resulting from cash payment equivalent to
reorganization PROVIDED that 18 times his basic monthly
he has been paying integrated pension
contributions for at least one (1) 4. However, a member cannot
year prior to contributions. enjoy the monthly income
benefit for permanent
127. RETIREMENT BENEFITS: disability and the old age
retirement simultaneously.
Conditions for entitlement (Sec.
13-A): Unless the member has reached
Member has rendered at least 15 the minimum retirement age,
years of service disability benefits shall be
He is at least 60 years of age at SUSPENDED when:
the time of retirement
He is not receiving a monthly 1. He is reemployed
pension benefit from 2. He recovers from his
permanent total disability disability as determined by
the GSIS, whose decision
2. PERMANENT DISABILITY shall be final and binding
BENEFITS 3. He fails to present himself
General Conditions for for medical examination
Entitlement (Sec. 15): when required by the GSIS
The member must have suffered  PERMANENT PARTIAL
permanent disability for reasons DISABILITY (Sec. 17):
NOT DUE to: He must satisfy specific
1. Grave misconduct conditions 1-3.
2. Notorious negligence 4. TEMPORARY DISABILITY
3. Habitual intoxication, or BENEFITS (Sec. 18)
willful intention to kill
himself or another.
LABOR LAW COMMITTEE

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The member shall be entitled to at least 180 monthly

75% of the current daily contributions.
compensation for each day or
fraction thereof of temporary 2. SURVIVORSHIP PENSION PLUS A
disability benefit not exceeding CASH PAYMENT EQUIVALENT TO
120 days in one calendar year 100% OF HIS AVERAG`E
after exhausting all sick leave MONTHLY COMPENSATION FOR
credits and collective bargaining EVRY YEAR OF SERVICE
agreement sick leave benefits. PROVIDED: The deceased was in
PROVIDED: the service at the time of his
1. He is in service at the time death with at least three years of
of his disability service
2. If separated, he has
rendered at least 3 years of 3. SURVIVORSHIP PENSION PLUS A
service and has paid at least CASH PAYMENT EQUIVALENT TO
6 monthly contributions in 100% OF HIS AVERAGE MONTHLY
the 12- month period COMPENSATION FOR EVERY
immediately preceding the YEAR OF SERVICE HE PAID
disability CONTRIBUTIONS BUT NOT LESS
HOWEVER, a member cannot THAN P12, 000
enjoy temporary total disability benefit PROVIDED That the deceased has
and sick leave pay simultaneously rendered at least 3 years of
IN ADDITION, If the disability service prior to his death but does
requires more extensive treatment that not qualify under 1 and 2.
lasts beyond 120 days, the payment of
the temporary total disability benefit  ORDER OF PAYMENT OF THE
may be extended by the GSIS but not to SURVIVORSHIP PENSION
exceed a total of 240 days
LASTLY, and in no case shall the 1. When the dependent spouse is
benefit be less than 70 pesos a day. the only survivor, he/shall
receive the basic survivorship
5. SURVIVORSHIP BENEFITS: pension for life or until he/she
 For purposes of survivorship remarries.]
benefits, legitimate children
shall include legally adopted 2. When only dependent children
and legitimated children. are the survivors, they shall be
entitled to the basic
 Death of a Member survivorship pension for as long
Upon the death of a member, the as they are qualified, plus the
primary beneficiaries shall be entitled dependent children’s pension.
to:
3. When the survivors are the
1. SURVIVORSHIP PENSION, dependent spouse and the
PROVIDED: dependent children, the
dependent spouse shall receive
a. Member was in service at the basic survivorship pension
the time of his death for life or until he/she
b. If separated from service, remarries, and the dependent
has rendered at least 3 children shall receive the
years of service and paid dependents pension.
with the 5- year period
immediately preceding his
death or has paid a total of

CHAIRPERSONS
 IN THE ABSENCE OF PRIMARY

BENEFICIARIES, THE SECONDARY 128. LIFE INSURANCE BENEFITS
BENEFICIARIES SHALL BE ENTITLED
TO: All employees except members
1. Cash payment equivalent to of the AFP and the PNP shall be
100% of his average monthly compulsorily covered with life
compensation for each year of insurance.
service he paid contributions,
but not less than P12,000 Adjudication of Claims and Disputes
PROVIDED that the member is in
service at the time of his death  PRESCRIPTION OF CLAIMS
and has at least 3 years of Claims for benefits under the Act
service. except for life and retirement shall
2. In the absence of secondary prescribe AFTER 4 YEARS FROM THE
beneficiaries , the benefits DATE OF THE CONTINGENCY.
under this paragraph shall be
paid to the legal heirs  JURISDICTION
GSIS shall have the exclusive and
original jurisdiction to settle any dispute
6. FUNERAL BENEFITS: arising under the Act and any other laws
administered by the GSIS.
It shall not be less than twelve Appealable under Rule 43 and 45
thousand pesos (P12,000.00) Of the 1997 Rules of Civil Procedure. The
PROVIDED that it shall be appeal shall not stay the execution of
increased to at least eighteen the order or award unless ordered by the
thousand pesos (P18,000.00) Boards, CA, or SC and the appeal shall
after five years and shall be paid be without prejudice to the special civil
upon death. action of certiorari when proper.
LABOR LAW COMMITTEE

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CHAIRPERSONS
LABOR LAW COMMITTEE

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CHAIRPERSONS
LABOR LAW COMMITTEE

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CHAIRPERSONS
LABOR LAW COMMITTEE

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CHAIRPERSONS
NATIONAL HEALTH INSURANCE (RA NO. 7875)

ACT OF 1995
LABOR LAW COMMITTEE

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 GENERAL OBJECTIVES: Any person who performs services

for an employer in which either or
1. Provide all citizens of the both mental and physical efforts are
Philippines with the mechanism used and who receives compensation
to gain financial access to health for such services, where there is an
services employer-employee relationship
2. Create the National Health  THE NATIONAL HEALTH INSURANCE

Insurance Program hereinafter PROGRAM
referred to as the Program, to
serve as the means to help the Establishment and Purpose
people pay for health care
services It shall provide health insurance
coverage and ensure affordable,
3. Prioritize and accelerate the acceptable, accessible, and available
provision of health services to all health care srvices for all citizens of the
Filipinos, especially that Philippines.
segment of the population who It shall as a means for the
cannot afford such services; and healthy to help pay for the care of the
sick and for those who can afford
4. Establish the Philippine Health medical care to subsidize those who
Insurance Corporation, cannot
hereinafter referred to as the
Corporation, that will administer Coverage
thge Program at the central and
local levels. All citizens of the Philippines shall be
covered by the National health Insurance
 Definition of Terms Program
1. Dependent: Benefit Package

a. The legitimate spouse who is not
a member 1. Inpatient hospital care
b. The unmarried and unemployed a. room and board
legitimate, legitimated, b. services of health care
illegitimate, acknowledged professionals
children as appearing in the c. diagnostic, laboratory and other
birth certificate; legally adopted medical examination services
or step-children below twenty- d. use of surgical or medical
one years of age equipment and facilities
c. Children who are 21 years old or e. prescription drugs and
above but suffering from biologicals
congenital disability, either
physical or mental, or any 2. Outpatient care
disability acquired that renders a. services of health care
them totally dependent on the professionals
member for support b. diagnostic, laboratory and other
d. Parents who are 60 years old or medical examination services
above whose monthly income is c. personal preventive services
below an amount to be d. prescription drugs and
determined by the Corporation biologicals
2. Employer
A natural or juridical person who 3. Emergency and transfer services
employs the services of an employee 4. Other health care services
3. Employee

CHAIRPERSONS
Excluded Personal Health Services Within 5 years from the

promulgation of the implementing rules
1. non-prescription drugs and services and regulations. But the SSS and GSIS
2. outpatient psychotherapy and shall continue performing its Medicare
counselling for mental disorders functions beyond the stipulated 5-year
3. drug and alcohol abuse or period if such extension will benefit
dependency treatment Program members.
4. cosmetic surgery
5. home and rehabilitation services AN ACT DECLARING SEXUAL
6. optometric services HARASSMENT UNLAWFUL IN THE
7. normal obstetrical services EMPLOYMENT, EDUCATION OR
8. cost-ineffective procedures which TRAINING ENVIRONMENT,A ND FOR
shall be defined by the Corporation OTHER PURPOSES
(REPUBLIC ACT NO. 7877)
Entitlement to Benefits
 DECLARATION OF POLICY.
1. A member whose premium for at
least 3 months have been paid within
The State shall:
6 months prior to the first day of his
1. value the dignity of every
or his dependents availment
individual, enhance the
2. He must show that he contributes
development of its human
thereto with sufficient regularity as
resources,
evidenced by their health insurance
2. guarantee full respect for human
ID card.
rights, uphold the dignity of
3. He must not be currently subject to
workers, employees, applicants
legal penalties
for employment, students or
those undergoing training,
 MONTHLY CONTRIBUTIONS NEED
instruction or education.
NOT BE PAID BY THE FOLLOWING
TO BE ENTITLED TO THE
Towards this end, all forms of sexual
PROGRAM’S BENEFITS
harassment in the employment,
education or training environment are
1. Retirees and pensioners of SSS
hereby declared unlawful.
and GSIS
2. Members who have paid at least
The law punishes sexual harassment
if the same is:
3. Enrolled indigents
1. work-related;
2. education-related;
NOTE:
3. training-related
 TRANSFER OF HEALTH INSURANCE
WORK, EDUCATION OR TRAINING-
FUNDS OF SSS AND GSIS
RELATED SEXUAL HARASSMENT
DEFINED.
It shall be transferred to the
Corporation within 60 days from the
When work, education or training
promulgation of the Implementing Rules
related sexual harassment is committed:
and Regulation
a. By an employer, employee,
manager, supervisor, agent of
The SSS and GSIS shall continue to
the employer, teacher,
perform Medicare functions under
instructor, professor, coach,
contract with the Corporation until such
trainor, or any other person
time that such functions are assumed by
who, having authority, influence
the Corporation.
or moral ascendancy over
 TRANSFER OF MEDICARE
another
FUNCTIONS OF THE SSS AND GSIS
LABOR LAW COMMITTEE

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b. In a work or training or 4. When the sexual advances result

education environment in an intimidating, hostile or
c. Demands, Requests or otherwise offensive environment for the
Requires any sexual favor from result, trainee or apprentice.
the other regardless of whether
the demand, request or Any person who directs or induces
requirement for submission is another to commit any act of sexual
accepted by the object of said harassment as herein defined, or who
act. cooperates in the commission thereof by
another without which it would not have
A. in a work-related or employment been committed shall also be held liable
environment, sexual harassment is under this Act.
committed when:
DUTY OF THE EMPLOYER OR HEAD OF
1. The sexual favor is made as a OFFICE IN A WORK-RELATED,
condition in the hiring or in the EDUCATION OR TRAINING
employment, re-employment or ENVIRONMENT.
continued employment of said It is the duty of the Employer or
individual, or in granting said Head of Office in a Work-related,
individual favorable Education or Trainings Environment.
compensation, terms, 1. To prevent or deter the
conditions, promotions or commission of acts of sexual
privileges, or the refusal to grant harassment and,
the sexual favor results in 2. To provide the procedures for
limiting, segregating or the resolution, settlement or
classifying the employee which prosecution of acts of sexual
in any way would discriminate, harassment.
deprive or diminish employment
opportunities or otherwise Towards this end, the employer or head
adversely affect said employee; of office shall:
2. The above acts would impair the a. Promulgate appropriate rules
employees rights and privileges and regulations in consultation
under existing labor laws; with and jointly approved by the
3. The above acts would result in employees or students or
an intimidating, hostile or trainees, through their duly
offensive environment for the designated representatives,
employee. prescribing the procedure for the
investigation of sexual
B. in an education or training harassment cases and the
environment, sexual harassment is administrative sanctions
committed: therefor.
1. Against one who is under the · Administrative sanctions shall

care, custody or supervision of not be a bar to prosecution in the
the offender; proper courts for unlawful acts of
2. Against one whose education, sexual harassment.
training, apprenticeship or
tutorship is entrusted to the · The said rules and regulations
offender; issued pursuant to this subsection
3. When the sexual favor is made a shall include, among others,
condition to the giving of a
passing grade, or the granting a) guidelines on proper decorum in
honors and scholarships, or the the workplace and educational
payment of a stipend, allowance or training institutions.
or other benefits, privileges or
considerations;
CHAIRPERSONS
b) The creation of a committee on INDEPENDENT ACTION FOR DAMAGES

decorum and investigation of Nothing in this Act shall preclude the
cases on sexual harassment. victim of work, education or training-
related sexual harassment from
 The committee shall conduct instituting a separate and independent
meetings, as the case may be, with action for damages and other affirmative
officers and employees, teachers, relief.
instructors, professors, coaches,
trainors and students or trainees to PENALTIES
increase understanding and prevent
incidents of sexual harassment. It Any person who violates the
shall also conduct the investigation provisions of this Act shall, upon
of alleged cases constituting sexual conviction, be penalized by
harassment imprisonment of not less than one (1)
month nor more than six (6) months, or
· In the case of a work-related a fine of not less than Ten thousand
environment, the committee shall be pesos (P10,000) nor more than Twenty
composed of at least one (1) thousand pesos (P20,000), or both such
representative each from the fine and imprisonment at the discretion
management, the union, if any, the of the court.
employees from the supervisory
rank, and from the rank and file PRESCRIPTION
employees
Any action arising from the
· In the case of the educational or violation of the provisions of this Act
training institution, the committee shall prescribe in three (3) years.
shall be composed of at least one (1)
representative from the
administration, the trainors, AN ACT PROVIDING FOR STRONGER
teachers, instructors, professors or DETERRENCE AND SPECIAL
coaches and students or trainees, as PROTECTION AGAINST CHILD
the case may be. ABUSE, EXPLOITATION AND
DISCRIMINATION, PROVIDING
· The employer or head of office, PENALTIES FOR ITS VIOLATION AND
educational or training institution FOR OTHER PURPOSES
shall disseminate or post a copy of
(REPUBLIC ACT 7610)
this Act for the information of all
concerned.
 POLICY.
 LIABILITY OF THE EMPLOYER, HEAD It is hereby declared to be the policy
OF OFFICE, EDUCATIONAL OR TRAINING of the State to :
INSTITUTION. 1. Provide special protection to
children from all forms of abuse,
The employer or head of office, neglect, cruelty, exploitation
educational or training institution shall and discrimination, and other
be solidarily liable for damages arising conditions prejudicial to their
from the acts of sexual harassment development;
committed in the employment, 2. Provide sanctions for their
education or training environment if the commission and
employer or head of office, educational 3. Carry out a program for
or training institution is informed of such prevention and deterrence of
acts by the offended party and no and crisis intervention in
immediate action is taken thereon. situations of child abuse,
exploitation and discrimination.
LABOR LAW COMMITTEE

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The State shall intervene on behalf  "COMPREHENSIVE PROGRAM AGAINST

of the child when: CHILD ABUSE, EXPLOITATION AND
1. The parent, guardian, teacher or DISCRIMINATION": refers to the
person having care or custody of coordinated program of services and
the child fails or is unable to facilities to protect children against:
protect the child against abuse, 1. Child prostitution and other
exploitation and discrimination sexual abuse;
or 2. Child trafficking;
2. When such acts against the child 3. Obscene publications and
are committed by the said indecent shows;
parent, guardian, teacher or 4. Other acts of abuse; and
person having care and custody 5. Circumstances which threaten or
of the same. endanger the survival and
normal development of children.
The best interests of children shall
be the paramount consideration in all RULE ON CHILD LABOR
actions concerning them Children below fifteen (15)
years of age SHALL NOT BE EMPLOYED
Every effort shall be exerted to
promote the welfare of children and Except:
enhance their opportunities for a useful
and happy life. 1. When a child works directly under
the sole responsibility of his parents
 CHILDREN – persons below 18 years of or legal guardian and where only
age or those over but are unable to fully members of the employer's family
take care of themselves or protect are employed
themselves from abuse, neglect, cruelty,
exploitation or discrimination because of However, the ff. conditions must be
a physical or mental disability or met:
condition · That his employment
neither endangers his life,
 CHILD ABUSE - maltreatment, safety, health and morals,
whether habitual or not, of the child nor impairs his normal
which includes any of the following: development;
· That the parent or legal
1. Psychological and physical guardian shall provide the
abuse, neglect, cruelty, sexual said minor child with the
abuse and emotional prescribed primary and/or
maltreatment; secondary education;
2. Any act by deeds or words,
which debases, degrades or 2. Where a child's employment or
demeans the intrinsic worth and participation in public entertainment or
dignity of a child as a human information through cinema, theater,
being; radio or television is essential
3. Unreasonable deprivation of his However the ff. conditions must be
basic needs for survival, such as met:
food or shelter; or
4. Failure to immediately give 1. The employment contract is
medical treatment to an injured concluded by the child's parents or
child resulting in serious legal guardian, with the express
impairment of his growth and agreement of the child concerned, if
development, or in his possible, and approval of the
permanent incapacity or death. Department of Labor and
Employment

CHAIRPERSONS
2. That the following requirements in and conditions of employment on

all instances are strictly complied account of his age. (Art. 140 Labor
with: Code)
a. The employer shall ensure the

protection, health, safety, 13TH MONTH PAY LAW
morals and normal development (P.D. 851)
of the child;
b. The employer shall institute
 SEC. 2. DEFINITION OF CERTAIN
measures to prevent the child's
TERMS
exploitation or discrimination
taking into account the system
"THIRTEENTH-MOTH PAY" - shall mean
and level of remuneration and
one twelfth (1/12) of the basic salary of
the duration and arrangement
an employee within a calendar year;
of working time; and
c. The employer shall formulate
"BASIC SALARY" - include all
and implement, subject to the
remunerations or earnings paid by an
approval and supervision of
employer to an employee for services
competent authorities, a
rendered but may not include:
continuing programme for
training and skills acquisition of
1. Cost-of-living allowances
the child.
2. Profit-sharing payments, and
3. All allowances and monetary
In the above exceptional cases
benefits which are not
where any such child may be employed,
considered or integrated as part
the employer shall first secure, before
of the regular or basic salary of
engaging such child, a work permit from
the employee at the time of the
the Department of Labour and
promulgation of the Decree on
Employment which shall ensure
December 16, 1975.
observance of the above requirements.
(RA 7610, as amended by RA 7658)
 WHAT CAN BE CONSIDERED AS
13TH MONTH PAY:
 PROHIBITION ON THE EMPLOYMENT
1. Christmas bonus
OF CHILDREN IN CERTAIN
2. Midyear bonuses
ADVERTISEMENTS.
3. Cash bonuses
No person shall employ child
models in all commercials or
SEC. 3. EMPLOYERS COVERED
advertisements promoting alcoholic
beverages, intoxicating drinks, tobacco
- The Decree shall apply to all
and its by-products, and violence. (Sec.
employers except to:
14 RA 7610)
a) Distressed employers, - such as
1. those which are currently
 COMPLIANCE WITH PD 603
incurring substantial losses; or
Every employer shall comply with
2. in the case of non-profit
the duties provided for in Articles 108
institutions and organizations,
and 109 of PD 603 (Child and Youth
where their income, whether
Welfare Code):
from donations, contributions,
Article 108, PD 603 – Duty of
grants and other earnings from
Employer to Submit Report
any source, has consistently
Article 109, PD 603 – Register of
declined by more than forty
Children
(40%) percent of their normal
income for the last two (2)
 PROHIBITION AGAINST CHILD
years, subject to the provision of
DISCRIMINATION
Section 7 of this issuance;
No employer shall discriminate
against any person in respect to terms
LABOR LAW COMMITTEE

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b) The Government and any of its  SEC. 4. EMPLOYEES COVERED

political subdivisions, including Except as provided in Section 3
GOCCs except those corporations of this issuance, all employees of
operating essentially as private covered employers shall be entitled to
subsidiaries of the Government; benefit provided under the Decree who
c) Employers already paying their are receiving not more than P1,000 a
employees 13-month pay or month, regardless of their position,
more in a calendar year of its designation or employment status, and
equivalent at the time of this irrespective of the method by which
issuance; their wages are paid, provided that they
have worked for at least one month
d) Employers of household helpers during the calendar year.
and persons in the personal
service of another in relation to  WHO ARE EXCLUDED FROM
such workers; and COVERAGE:
1. government employees
e) Employers of those who are paid 2. household helpers
on purely commission, boundary, 3. employees paid purely on
or task basis, and those who are commission basis
paid a fixed amount for 4. employees already receiving
performing a specific work, 13th month pay
irrespective of the time
consumed in the performance SEC. 5. OPTION OF COVERED
thereof, except where the EMPLOYERS
workers are paid on piece-rate A covered employer may pay
basis in which case the employer one-half of the 13th-month pay required
shall be covered by this issuance by the Decree before the opening of the
insofar as such workers are regular school year and the other half on
concerned. or before the 24th day of December of
every year.
WORKERS PAID ON PIECE-RATE BASIS
refer to those who are paid a standard In any establishment where a
amount for every piece or unit of work union has been recognized or certified as
produced that is more or less regularly the collective bargaining agent of the
replicated, without regard to the time employees therein, the periodicity or
spent in producing the same. frequency of payment of the 13th month
pay may be the subject of agreement.
"ITS EQUIVALENT" (as used in paragraph
c) hereof) shall include: SEC. 6. SPECIAL FEATURE OF
1. Christmas bonus BENEFIT
2. mid-year bonus The benefits granted under this
3. profit-sharing payments and issuance shall not be credited as part of
4. other cash bonuses amounting to the regular wage of the employees for
not less than 1/12th of the basic purposes of determining overtime and
salary but shall not include cash premium pay, fringe benefits, as well as
and stock dividends, cost of premium contributions to the State
living allowances and all other Insurance Fund, social security,
allowances regularly enjoyed by medicare and private welfare and
the employee, as well as non- retirement plans.
monetary benefits.
 SEC. 7. EXEMPTION OF
Where an employer pays less than DISTRESSED EMPLOYERS
1/12th of the employees basic salary, Distressed employers shall
the employer shall pay the difference. qualify for exemption from the
requirement of the Decree upon prior
authorization by the Secretary of Labor.
CHAIRPERSONS
 SEC. 8. REPORT OF  GUARANTEE OF PROTECTION FOR

COMPLIANCE OVERSEAS WORKERS
Every covered employer shall The State shall deploy overseas
make a report of his compliance with the Filipino workers only in countries where
Decree to the nearest regional labor the rights of Filipino migrant workers are
office not later than January 15 of each protected. The government recognizes
year. any of the following as a guarantee for
the protection of the receiving country
SEC. 9. ADJUDICATION OF of the rights of overseas Filipino
CLAIMS workers:
Non-payment of the thirteenth-
1. It has existing labor and social laws
month pay provided by the Decree and
protecting the rights of migrant
these rules shall be treated as money
workers;
claims cases and shall be processed in
2. It is a signatory to multilateral
accordance with the Rules Implementing
conventions, declarations or
the Labor Code of the Philippines and
resolutions relating to the protection
the Rules of the National Labor Relations
of migrant workers;
Commission.
3. It has concluded a bilateral
agreement or arrangement with the
SEC. 10. PROHIBITION AGAINST
government protecting the rights of
REDUCTION OR ELIMINATION OF
overseas Filipino workers; and,
BENEFITS
4. It is taking positive, concrete
Nothing herein shall be
measures to protect the rights of
construed to authorize any employer to
migrant workers.
eliminate, or diminish in any way,
supplements, or other employee benefits
 JURISDICTION
or favorable practice being enjoyed by
the employee at the time of
1. NLRC
promulgation of this issuance.
PRIVATE SCHOOL TEACHERS · Money Claims
Private school teachers, The Labor Arbiters of the
including faculty members of colleges National Labor Relations Commission
and universities, are entitled to 1/12 of (NLRC) shall have the original and
their annual basic pay regardless of the exclusive jurisdiction to hear and
number of months they teach or are paid decide, the claims arising out of an
within a year. employer-employee relationship or by
virtue of any law or contract involving
OT PAY Filipino workers for overseas deployment
Overtime pay, earnings and including claims for actual, moral,
other remunerations which are not part exemplary and other forms of damages.
of the basic salary shall not be included 129. LIABILITIES
in the computation of the 13-month pay. The liability of the
principal/employer and the
recruitment/placement agency for any
and all claims under this section shall be
RA 8042: “MIGRANT WORKERS AND
joint and several. The performance bond
OVERSEAS FILIPINOS ACT 0F 1995" to be filed by the
recruitment/placement agency, as
Approved on 07 June provided by law, shall be answerable for
1995 and took effect on 15 July 1995. all money claims, or damages that may
As indicated in its title, the law be awarded to the workers. If the
institutes the policies of overseas recruitment/placement agency is a
employment and establishes a higher juridical being, the corporate officers
standard of protection and promotion of and directors and partners as the case
the welfare of migrant workers, their may be, shall themselves be jointly and
families, and of overseas Filipinos in solidarily liable with the corporation or
distress.
LABOR LAW COMMITTEE

Basquiñez
partnership for the aforesaid claims and Disciplinary action cases and other
damages. special cases, as mentioned in the
Such liabilities shall continue preceding Section, shall be filed with
during the entire period or duration of POEA Adjudication Office.
the employment contract and shall not
be affected by any substitution, 3. RTC
amendment or modification made locally A criminal action arising from illegal
or in a foreign country of the said recruitment shall be filed with the RTC
contract. of the province or city where the offense
was committed or where the offended
Three Month's Pay Under RA 8042 party actually resides at the time of the
commission of the offense. The court
The date the employment where the criminal action is first filed
termination occurred is material. On shall acquire jurisdiction to the exclusion
or after 15 July 1995, the law to apply of other courts.
is RA 8042.
 MANDATORY PERIODS FOR
Under Section 10 of RA 8042, a
RESOLUTION OF ILLEGAL
worker dismissed from overseas
RECRUITMENT CASES
employment without just, valid or
authorized cause as defined by law or
The preliminary investigations of
contract, is entitled to the full
cases under this Act shall be terminated
reimbursement of his placement fee
within a period of thirty (30) calendar
with interest at twelve percent (12%) per
days from the date of their filing.
annum, plus his salary for the unexpired
WHERE THE PRELIMINARY
portion of his employment contract or
INVESTIGATION IS CONDUCTED BY A
for three (3) months for every year of
PROSECUTION OFFICER and a prima facie
the unexpired term, whichever is LESS.
case is established, the corresponding
information shall be filed in court within
2. POEA
24 hours from the termination of the
The POEA retains original and investigation.
exclusive jurisdiction to hear and IF THE PRELIMINARY INVESTIGATION
decide: IS CONDUCTED BY A JUDGE and a prima
facie case is found to exist, the
1. All cases which are administrative in corresponding information shall be filed
character, involving or arising out of by the proper prosecution officer within
violations of rules and regulations 48 hours from the date of receipt of the
relating to licensing and registration records of the case.
of recruitment and employment
agencies or entities; and 130. PRESCRIPTIVE PERIODS
2. Disciplinary action cases and other
special cases which are Illegal recruitment cases under this
administrative in character, Act shall prescribe in five (5) years;
involving employers, principals, provided, however, That illegal
contracting partners and Filipino recruitment cases involving economic
migrant workers. sabotage as defined herein shall
prescribe in twenty (20) years. (Sec. 12,
Venue R.A. 8042)
It may be filed with the POEA
Adjudication Office or the DOLE/POEA
regional office of the place where the
complaint applied or was recruited at
the option of the complainant. The
office with which the complaint was first
filed shall take cognizance of the case.

CHAIRPERSONS
 PROHIBITED ACTS IN THE COMPREHENSIVE AGRARIAN

RECRUITMENT AND PLACEMENT OF REFORM LAW
WORKERS UNDER THE LABOR CODE (R.A. 6657)
ARE RETAINED UNDER THE
MIGRANT WORKERS ACT WITH THE  CONSTITUTIONAL PROVISIONS:
ADDITION OF THE FOLLOWING: 1. Art. II, Sec. 9. Declaration of
1. Failure to deploy employee without Principles and State Policies;
valid reason 2. Art. III, Sec. 9. Bill of Rights;
2. Failure to reimburse expenses 3. Art. X, Sec. 7. Local
incurred in connection with his Government;
documentation and processing in 4. Art XII, Sec. 1 - 3. National
cases that deployment did not take Economy and Patrimony;
place 5. Art. XIII, Sec. 4- 6 and 8 Social
Justice and Human Rights;
6. Art. XVIII, Sec. 22. Transitory
 DIFFERENT FUNDS CREATED UNDER Provisions
THE LAW:
1. Repatriation fund  OTHER LAWS PERTAINING TO
2. Loan Guaranty fund AGRARIAN REFORM:
3. Legal Assistance fund 1. Agricultural Tenancy Act of 1954
4. Congressional Migrant Workers (R.A. 1199);
Scholarship fund 2. Land Reform Act (R.A. 1400)
3. An Act Creating the Court of
 GOVERNMENT AGENCIES Agrarian Relations (R.A. 1267);
MOBILIZED: 4. The Agricultural Land reform
1. DFA Code (R.A. 3844)
2. DOLE 5. Code of Agrarian Reforms (R.A.
3. POEA 6389);
4. OWWA 6. Agrarian Reform Special Fund
The Welfare Officer, or in his Act (R.A. 6390);
absence, the Center Coordinator of the 7. P.D. No. 2 (Declaring entire
Filipinos Resource Center shall make Philippines as land reform area);
proper representation with the 8. P.D. No. 27 (Decreeing the
employer/principal and/or agency as the emancipation of tenants).
case may be, through conciliation
meetings or conferences for the  COVERAGE:
PURPOSE OF ENFORCING CONTRACTUAL General:
OBLIGATIONS concerning migrant
workers. For this purpose, the officer Regardless of tenurial
may enlist the assistance of the OWWA arrangement and commodity produced,
officer. all public and private agricultural lands
as provided in Proclamation No. 131
5. RE-PLACEMENT AND MONITORING and Executive Order No. 229, including
CENTER other lands of the public domain
It shall: suitable for agriculture.
a. Provide a mechanism for the Specifically:
reintegration into the Philippine
society 1. All alienable and disposable
b. Serve as a promotion house for lands of the public domain
their local employment devoted to or suitable for
c. Tap their skills and potentials for agriculture;
national development. 2. All lands of the public domain in
excess to the specific limits as
determined by Congress;
LABOR LAW COMMITTEE

Basquiñez
3. All other lands owned by the  DEFINITION OF TERMS:

Government devoted to or
suitable for agriculture; and
PUBLIC DOMAIN refers to lands to
4. All private lands devoted to or
which the government has proprietary
suitable for agriculture
rights.
regardless of the agricultural
products raised or that can be
GOVERNMENT LANDS include both
raised thereon. (Sec. 4 CARL)
public lands and other lands of the
government already reserved for or
 EXCLUDED:
devoted to public use or subject to
private rights.
Lands actually, directly, and
exclusively used and found to be
PRIVATE AGRICULTURAL LANDS are
necessary for the following purposes:
those devoted to agricultural activities
1. for parks, wildlife, forest
and which are under the effective
reserves, reforestation;
control and disposition of natural or
2. for fish sanctuaries and
juridical persons.
breeding grounds;
3. for watersheds and mangroves
COMMERCIAL FARMS are private
4. for national defense;
agricultural lands devoted to commercial
5. for school sites and campuses,
livestock, poultry and swine raising,
including experimental farm
aquaculture including saltbeds,
stations operated by public or
fishponds, and prawn ponds, fruit farms,
private schools for educational
orchards, vegetables and cut – flower
purposes;
farms, and cacao, coffee and rubber
6. for seeds and seedlings research
plantation.
and pilot production center;
7. for church sites and convents
 LEASEHOLD vs. SHARE TENANCY
appurtenant thereto;
SYSTEM
8. for mosque sites and Islamic
centers appurtenant thereto;
9. for communal burial grounds SHARE TENANCY means the
and cemeteries; relationship which exists whenever two
10. for penal colonies and penal persons agree on a joint undertaking for
farms actually worked by the agricultural production wherein one
inmates; party furnishes the land and the other
11. for government and private his labor, with either or both
research and quarantine contributing any one or several of the
centers; items of production, the tenant
12. all lands with eighteen percent cultivating the land personally with the
(18%) slope and over, except aid or labor available from members of
those already developed (Sec. his immediate farm household, and the
10, CARL). produce thereof to be divided between
13. Ancestral lands belonging to the landholder and the tenant.
indigenous cultural communities
until their boundaries and
LEASEHOLD SYSTEM is characterized by
extent are duly identified and
a tenant – farmer personally and actually
delineated by the proper
cultivating the farmholding under a
governmental agency and
leasehold relationship whereby the
segregated as part of the public
lessee pays a fixed amount of rental
domain.
whether in cash or in kind to the lessor
(owner or legal possessor of the land

CHAIRPERSONS
SHARE TENANCY vs LEASEHOLD 3. the landholder continues to

TENANCY receive benefits from the
cultivation of the land (Sec. 5,
LEASEHOLD
SHARE TENANCY RA 3844).
TENANCY
Tenant has physical
Lessee pays the
possession of another’s  FAMILY SIZED FARM
landowner a fixed
land for the purpose of
rent for the use Under the Agricultural Land
cultivating it giving the
and cultivation of
owner the share of the Reform Code, or RA 3844, a family –
land
property sized farm constitutes an area of
The tenant may CHOOSE farmland that permits efficient use of
TO SHOULDER IN ADDITION labor and capital resources of the farm
TO LABOR, ANY ONE OR The tenant/lessee family and will produce an income
MORE ITEMS OF PRODUCTION always SHOULDERS
sufficient to provide a modest standard
such as farm ALL ITEMS OF
implements, work PRODUCTION EXCEPT
of living to meet a farm family’s needs
animals, cost of final LAND for food, clothing, shelter and
harrowing and education with possible allowance for
transplanting payment of yearly installments on the
The tenant and the The tenant is the land, and reasonable reserves to
landholder are CO- SOLE MANAGER OF absorb yearly fluctuations in income
MANAGERS OF FARM HOLDING THE FARM HOLDING
The tenant or  RETENTION LIMIT:
The tenant and the
lessee GETS THE
landholder DIVIDE THE
WHOLE PRODUCE with
HARVEST IN PROPORTION TO Except as otherwise provided, no
mere obligation to
THEIR CONTRIBUTIONS. person may own or retain, directly, any
pay rental
public or private agricultural land, the
size of which shall vary according to
Source: Aralar, Reynaldo B. Agrarian
factors governing a viable family-sized
Reform, Cooperatives and Taxation
farm, such as commodity produced,
(citing People vs. Adillo, GR No. L-23785,
terrain, infrastructure, and soil fertility
November 27, 1975, 68 SCRA 90), p. 58.
as determined by the Presidential
Agrarian Reform Council (PARC), but IN
NO CASE SHALL THE RETENTION BY
 ESTABLISHMENT OF LEASEHOLD
THE LANDOWNER EXCEED FIVE (5)
RELATIONSHIP
HECTARES (Sec. 6, CARL).
1. By AGREEMENT of the parties NOTE:
(between the lessor and lessee) –
The right to choose the area to be
this may be entered into either
retained, which shall be compact or
orally or in writing, expressly or
contiguous, shall pertain, to the
impliedly.
landowner (Sec 6, CARL)
2. By OPERATION OF LAW – this is
brought about by the
implementation of R.A. No. NOTE:
3844, Agricultural Land Reform
RIGHTS OF CHILD OF LANDOWNER
Code, providing for the abolition
of share tenancy. UNDER CARL
 ESTABLISHMENT OF IMPLIED 1. THREE (3) HECTARES may be awarded

LEASEHOLD RELATIONSHIP to each child of the landowner,
Implied leasehold relationship is regardless of the number of children the
established when the landholder: landowner has, and whether they are
1. does not object to the continued legitimate or illegitimate, provided that
cultivation of the land, or the filiation of the children who are
2. tolerates the continued illegitimate must be lawfully recognized
cultivation thereof by the by the landowner or duly established
agricultural worker, and/or
LABOR LAW COMMITTEE

Basquiñez
according to law, subject to the · collective or cooperatives of the

following qualifications: above beneficiaries; and
· that he is at least fifteen (15) · others directly working on the land.
years of age;
· that he is actually tilling the  PREFERENTIAL RIGHT OF CHILDREN
land or directly managing the IN THE DISTRIBUTION OF
farm (Sec. 6,CARL). PRIVATELY-OWNED AGRICULTURAL
LAND COVERED BY CARL
2. Children of landowners who are Children of landowners who are
qualified under Section 6 of this Act qualified under Section 6 of this Act shall
shall be given preference in the be given preference in the distribution
distribution of the land of their parents of the land of their parents (Sec. 22,
(Sec. 22, CARL). CARL). Provided, further, that actual
tenant -tillers in the landholding shall
not be ejected or removed therefrom
 EXCEPTION TO THE RETENTION
(Sec. 22, CARL).
LIMIT:
1. Landowners whose lands have  QUALIFICATIONS OF A

been covered by P.D. No. 27 BENEFICIARY:
shall be allowed to keep the The basic qualifications of a beneficiary
area originally retained by them shall be
thereunder
a. His willingness
(NOTE: Under PD 27, b. Aptitude
landowners covered are entitled c. Ability to cultivate and make
to retain seven (7) hectares of land as productive as possible
his landholding devoted to the (Sec. 22, CARL).
production of rice and corn)
 DISQUALIFICATIONS
2. Original homestead grantees or
direct compulsory heirs who still a. Any beneficiary guilty of
own the original homestead at negligence or misuse of the land
the time of the approval of CARL or any support extended to him
(June 15, 1988) shall retain the shall forfeit his right to continue
same areas as long as they as such beneficiary.
continue to cultivate said b. Beneficiaries under Presidential
homestead (Sec. 6, CARL). Decree No. 27 who have culpably
sold, disposed of, or abandoned
their land are disqualified to
 QUALIFIED BENEFICIARIES: become beneficiaries under their
a. landless residents of the same program (Sec. 22, CARL).
barangay; or in the absence
thereof  DISTRIBUTION CEILING:
b. landless residents of the same
municipality in the following No qualified beneficiary may own
order of priority: more than three (3) hectares of
· agricultural lessees and share agricultural land (Sec. 23, CARL).
tenants; Beneficiaries shall be awarded an
· regular farm workers; area not exceeding three (3) hectares,
· seasonal farm workers; which may cover a contiguous tract of
· other farm workers; land or several parcels of land
· actual tillers or occupants of public cumulated up to the prescribed award
lands; limits (Sec. 25, CARL).

CHAIRPERSONS
 CIRCUMSTANCES WHEN ACCOMMODATED DUE TO

DISTRIBUTION CEILING MAY BE INSUFFICIENCY OF LANDS TO BE
EXCEEDED DISTRIBUTED
The beneficiaries may opt for If, due to landowner's retention
collective ownership, such as co-workers rights or to the number of tenants,
or farmers' cooperative or some other lessees, or workers on the land, there is
form of collective organization. not enough land to accommodate any or
In such case, THE TOTAL AREA some of them, they may be granted
THAT MAY BE AWARDED SHALL NOT ownership of other lands available for
EXCEED THE TOTAL NUMBER OF CO- distribution under this Act, at the option
WORKERS OR MEMBERS OF THE of the beneficiaries (Sec. 22, CARL).
COOPERATIVE OR COLLECTIVE
ORGANIZATION MULTIPLIED BY THE
AWARD LIMIT ABOVE PRESCRIBED,  CONDITIONS FOR SALE OR
EXCEPT in meritorious cases as CONVEYANCE TO THIRD PERSONS
determined by the PARC. OF LAND RETAINED
Title to the property shall be issued
in the name of the co-owners or the The sale or disposition of agricultural
cooperative or collective organization, lands retained by a landowner shall be
as the case may be (Sec. 25, CARL). valid as long as:
a. the sale or disposition of
 LANDLESS BENEFICIARY: agricultural lands after the
For purposes of this Act, a effectivity of CARL should
landless beneficiary is one who owns conform with the provisions of
less than three (3) hectares of the said law, otherwise, such
agricultural land (Sec. 25, CARL). sale or disposition shall be null
As a landless beneficiary, he can and void.
demand that the award ceiling of 3
hectares shall be completed which b. The tenant’s or lessee’s
may be taken from other available preferential right to purchase
private agricultural lands to be the same should be recognized.
acquired either by voluntary offer to In case the land is sold to third
sell, voluntary land transfer or persons without her/his
compulsory modes under the CARL. knowledge, she/he shall have a
right to redeem the land in the
 RIGHTS GIVEN TO ACTUAL TENANT manner prescribed by law.
– TILLERS OR FARMERS IN PLACE IN c. the total landholdings that shall
CASES WHERE THE LAND TILLED BY be owned by the transferee
THEM IS TRANSFERRED TO A thereof inclusive of the land to
QUALIFIED BENEFICIARY be acquired shall not exceed the
a. Actual tenant -tillers in the landholdings ceilings provided
landholding shall not be ejected for in this Act.
or removed therefrom.
d. transferees of agricultural lands
b. Farmers already in place and
shall furnish the appropriate
those not accommodated in the
Register of Deeds and the BARC
distribution of privately owned
with an affidavit attesting that
lands will be given preferential
his total landholdings as a result
rights in the distribution of lands
of the said acquisition do not
from the public domain (Sec. 22,
exceed the landholding ceiling.
CARL).
The Register of Deeds shall not
register the transfer of any
agricultural land without the
submission of this sworn
statement together with proof of
 RIGHTS GIVEN TO THOSE QUALIFIED
BENEFICIARIES WHO WERE NOT
LABOR LAW COMMITTEE

Basquiñez
service of a copy thereof to the subject to approval of DAR. Not

BARC (Sec. 70, CARL). exempt from taxes.
Conditions for voluntary land transfer:
 RIGHTS OF THE SAID TENANT – a. All notices for voluntary land
FARMER UNDER THE CARL WHEN transfer must be submitted to the
AREA SELECTED FOR RETENTION BY DAR within the first year of the
LANDOWNER IS TENANTED implementation of the CARP.
Negotiations between the
1. In case the area selected for
landowners and qualified
retention by the landowner is
beneficiaries covering any voluntary
tenanted, the tenant shall have the
land transfer which remain
option to choose whether to remain
unresolved after one (1) year shall
therein or be a beneficiary in the
not be recognized and such land
same or another agricultural land
shall instead be acquired by the
with similar or comparable features.
government and transferred
IF THE CHOICE IS TO REMAIN IN THE pursuant to this Act.
RETAINED AREA: He shall be b. The terms and conditions of such
considered a leaseholder and shall transfer shall not be less favorable
lose his right to be a beneficiary to the transferee than those of the
under this Act. government 's standing offer to
IF THE CHOICE IS TO BE A purchase from the landowner and to
BENEFICIARY: He loses his right as a resell to the beneficiaries, if such
leaseholder to the land retained by offers have been made and are fully
the landowner. known to both parties.
c. The voluntary agreement shall
PERIOD TO EXERCISE THE OPTION: include sanctions for non-compliance
The tenant must exercise this option by either party and shall be duly
within a period of one (1) year from recorded and its implementation
the time the landowner manifests his monitored by the DAR (Sec. 20,
choice of the area for retention CARL).
(Sec. 4, CARL).
2. In all cases, the security of tenure of 3. COMPULSORY ACQUISITION –
the farmers or farm workers on the land undertaken by government, thru
prior to the approval of this Act shall be DAR, in the exercise of police
respected (Sec. 4, CARL power if landowner fails to avail
of the two modes or when
parties in the second mode
 MODES OF ACQUIRING PRIVATE disagrees on the price of the
land. (Law on Agrarian Reform,
AGRICULTURAL LANDS UNDER THE 2003 Edition, Recaredo P. Barte,
CARL p. 131 and 134.).
1. VOLUNTARY OFFER TO SELL -

by and between the landowner  PROCEDURE FOR THE
and the government. Purchase ACQUISITION OF PRIVATE LANDS
price agreed upon by parties and UNDER CARL (INPI-ARPA)
paid by Land Bank of the a. Identification of the land, the
Philippines (LBP). Exempt from landowners and the beneficiaries
taxes.
b. DAR shall send notice to acquire
2. VOLUNTARY LAND TRANSFER– the land with offer to pay the
directly by and between the corresponding value to the
landowner and the beneficiary. owners thereof, by personal
Purchase price agreed upon by delivery or registered mail, and
said parties but paid by LBP
CHAIRPERSONS
post the same in a conspicuous determination of just

place in the municipal building compensation (Sec. 16, CARL).
and barangay shall of the place  COMPENSATION:
where the property is located.
In determining just compensation
c. Within thirty (30) days from the the following shall be considered:
date of receipt of written (NASAC2)
notice, the landowner, his
administrator or representative a. the cost of acquisition of the
shall inform the DAR of his land,
acceptance or rejection of the b. the current value of like
offer. properties,
d. In case landowner accepts the c. its nature, actual use and
offer, the LBP shall pay the income,
landowner the purchase price of
the land within thirty (30) days d. the sworn valuation by the
after he executes and delivers a owner, the tax declarations,
deed of transfer in favor of the e. the assessment made by
Government and surrenders the government assessors,
Certificate of Title and other
muniments of title. f. additional factors, such as:
e. In case of rejection or failure to · the social and economic

reply, the DAR shall conduct benefits contributed by the
summary administrative farmers and the farm
proceedings to determine just workers and by government
compensation. After the to the property
expiration of the above period, · non-payment of taxes or
the matter is deemed submitted loans secured from any
for decision. The DAR shall government financing
decide the case within thirty institution on the said land
(30) days after it is submitted for (Sec.17, CARL)
decision.
f. Upon receipt by the landowner
 AMOUNT OF JUST COMPENSATION
of the corresponding payment or
FOR LANDS ACQUIRED UNDER
in case of rejection or no
CARL
response from the landowner,
upon the deposit with an The LBP (Land Bank of the
accessible bank designated by Philippines) shall compensate the
the DAR of the compensation in landowner in such amount:
cash or LBP bonds, the DAR shall a. as may be agreed upon by the
take immediate possession of landowner and the DAR and LBP;
the land and shall request the or
proper Register of Deeds to b. as may be finally determined by
issue a Transfer Certificate of the court as just compensation
Title (TCT) in the name of the for the land.
Republic of the Philippines. The
DAR shall thereafter proceed
with the redistribution of the
land to the qualified
beneficiaries.
g. Any party who disagrees with
the decision may bring the
matter to the court of proper
jurisdiction for final
LABOR LAW COMMITTEE

Basquiñez
 DETERMINATION OF JUST A: The petition should be denied.

COMPENSATION BY THE DAR FOR The act that required of the LBP
LANDS ACQUIRED UNDER THE CARL President to sign the Deed of
IS NOT AN USURPATION OF Absolute Sale is not ministerial but
JUDICIAL FUNCTION involves a high degree of discretion.
The LBP is an essential part of the
government sector with regard to
According to the Supreme Court, the payment of compensation to the
determination of just compensation is a landowner. It is therefore part, an
function addressed to the courts of indispensable cog, in the
justice and may not be usurped by any governmental machinery that fixes
other branch of official of the and determines the amount
government. A reading of the Section 16 compensable to the landowner.
(d) will readily show that it does not Inversely,, if LBP, after review and
suffer from the arbitrariness that evaluation, refuses to sign, it is
rendered the challenged decrees because as a party to the contract it
constitutionally objectionable. does not give its consent thereto
The determination of the just As to the opinion that
compensation by the DAR is not by any the decision fixing the
means final and conclusive upon the compensation is not final if
landowner or any other interested party seasonably questioned in court
who may bring the matter to the court by any interested party
of proper jurisdiction for final (including LBP) otherwise, it
determination of just compensation. would become final after 15 days
The determination made by the DAR is from notice and binding on all
only preliminary unless accepted by all parties concerned including LBP
parties concerned. Otherwise, the which then could refuse to pay
courts of justice will still have the right compensation thus fixed, the
to review with finality the said same opinion applies only to
determination in the exercise of what is compulsory acquisition of lands.
admittedly a judicial function (Nicolas (SHARP International Marketing
vs. Manaay, et. al. G. R. No. 79777). vs. CA, et. al.).
Q: X Corporation and the DAR

PAYMENTS TO THE PAYMENTS BY
signed and entered into a contract
LANDOWNER THE BENEFICIARY
of sale covering 2,000 hectares of
land. Consequently, the DAR 1. CASH payment, under 1. Payments shall
Secretary issued an order the following terms and be made to the
directing the LBP to pay X conditions: LBP in 30 annual
Corporation the contract price a. Lands 24 hectares installments at 6%
amounting to 65 million pesos. and below = 35% cash interest per
Discovering that X Corporation + balance to be paid annum;
acquired the land for only 3 in government 2. Payments for
million pesos, the LBP President financial instruments the first 3 years
negotiable at any shall be at
refused to sign the Deed of reduced amounts
time.
Absolute Sale. X Corporation filed as may be
b. Lands above 24
a petition for mandamus to hectares and up to 50 established by the
compel the LBP President to sign hectares = 30% cash + PARC;
the Deed of Absolute Sale. balance to be paid in 3.Payments
Whether or not the petition maybe government financial corresponding to
granted. instruments the first 5 annual
negotiable at any amortizations may
time. not exceed 5% of

c. For lands above fifty the value of the
CHAIRPERSONS
(50) hectares, insofar annual gross  LIMITATION:

as the excess in 50 production as
hectares is established by the Lands acquired by beneficiaries under
concerned = 25% cash DAR; this Act may MAY NOT BE SOLD,
+ balance to be paid 4. Annual TRANSFERRED OR CONVEYED for a period
in government payments as of TEN YEARS (10), except :
financial instruments scheduled by the
negotiable at any LBP that exceeds
a. through hereditary succession, or
time. 10% of the annual b. when sold, transferred or
gross production conveyed to:
2. SHARES OF STOCK in after the fifth
government-owned year of · the LBP, or
or controlled amortizations,
may be entitled to
· the government, or
corporations, LBP
preferred shares, a reduction of the · other qualified beneficiaries
physical assets or interest rate
other qualified provided in this  RATIONALE FOR TEN YEARS
investments in Act, or a LIMITATION:
accordance with reduction of the
The reason is that after making
guidelines set by the principal
obligation, use of the land deriving maximum
PARC;
whichever is benefits and income therefrom for
3. TAX CREDITS which deemed beneficial the period of 10 years, the awardee
can be used against and less must have already attained his
any tax liability; burdensome to dream of providing proper education
the beneficiary for his children, or at least his
4. LBP bonds and affordable. hunger for the soil which he can call
This is provided his own, must have been satisfied
that the failure to
reasonably.
produce is not
attributable to the At least that after 10 continuous
beneficiary’s fault years of enjoyment of the
like drought, government’s bounty, the tenant –
typhoon, fire, farmer has no more reason to
flood or other
complain that he has been neglected
natural calamities
or fortuitous by the government
circumstances
Sec. 26, CARL).
 SALE/CONVEYANCE TO A
QUALIFIED TRANSFEREE OF AN
AWARDED LAND NOT YET FULLY
 MODES/SCHEMES OF PAYMENT PAID
 EFFECT OF FAILURE TO PAY BY THE If the land has not yet been fully
BENEFICIARY paid by the beneficiary, the right to the
land may be transferred or conveyed,
All lands awarded under R.A. 6657 with prior approval of the DAR, to any
are mortgaged with the LBP which has a heir of the beneficiary or to any other
first lien thereof, failure on the part of beneficiary who, as a condition for such
the awardee to pay at least 3 aggregate transfer or conveyance, shall cultivate
annual amortizations, shall be sufficient the land himself.
ground for the foreclosure of the
mortgage. Failing compliance herewith, the
land shall be transferred to the LBP
Foreclosure has the effect of which shall give due notice of the
forfeiture of the beneficiary’s availability of the land in the manner
landholding in favor of the government specified in the immediately preceding
and thereafter the DAR shall award such paragraph.
forfeited landholding to other qualified
beneficiary. In the event of such transfer to the
LBP, the latter shall compensate the
LABOR LAW COMMITTEE

Basquiñez
beneficiary in one lump sum for the d. Two (2) representatives from
amounts the latter has already paid, landowners at least one (1) of
together with the value of improvements whom shall be a producer
he has made on the land (Sec. 27, representing the principal crop
CARL). of the province;
 RIGHT OF REPURCHASE e. And two (2) representatives
from farmers and farm workers
The children or the spouse of the
or beneficiaries, at least one
transferor shall have a right to
(1) of whom shall be a farmer
repurchase the land from the
or farmworker representing the
government or LBP within a period of
principal crop of the province,
two (2) years. The law is silent
as members.
regarding transfers or alienations of land
awarded in favor of qualified f. In areas where there are
beneficiaries or third persons (Sec. 27, cultural communities, the latter
CARL). shall likewise have one (1)
representative.
 CERTIFICATE OF LAND OWNERSHIP
AWARD  FUNCTIONS OF PARCCOM:
It means Certificate of Land Ownership a. Coordinate and monitor the
Award (CLOA). It is the beneficiary’s implementation of the CARP in
evidence of ownership over the the province.
landholding awarded to him under the b. Provide information on the
CARL which recorded in the office of the provisions of the CARP,
Register of Deeds and annotated on the guidelines issued by the PARC
corresponding certificate of title. and on the progress of the CARP
in the province.
ADMINISTRATIVE AGENCIES c. Recommend to the PARC the
following
 COMPOSITION OF Provincial
Agrarian Reform Coordinating · Market price to be used in the
Committee or PARCCOM determination of the profit-sharing
A Provincial Agrarian Reform obligation of agricultural entities in
Coordinating Committee is hereby the province;
created in each province, composed of: · Adoption of the direct payment
scheme between the landowner and
a. Chairman, who shall be the farmer and/or farmworker-
appointed by the President beneficiary
upon the recommendation of · Continuous processing of
the EXCOM, the Provincial applications for lease-back
Agrarian Reform Officer as arrangements, joint venture
Executive Officer agreements and other schemes that
b. One (1) representative each will optimize the operating size for
from the Department of agriculture production and also
Agriculture, Department of promote both security of tenure and
Environment and Natural security of income to farmer
Resources and from the LBP; beneficiaries (Sec. 44, CARL).
c. One (1) representative each
from existing farmers'
ADJUDICATION OF AGRARIAN
organizations, agricultural
DISPUTES
cooperatives and non-
governmental organizations in
 MODES OF ADJUDICATION
the province;
1. ADMINISTRATIVE ADJUDICATION BY
DAR

CHAIRPERSONS
2. JUDICIAL PROCEEDINGS BY SPECIAL days from the expiration of the thirty

AGRARIAN COURTS IN VARIOUS days period (Sec. 47, CARL).
REGIONAL TRIAL COURTS
However, if no certification is
issued by the BARC within thirty (30)
days after a matter or issue is submitted
to it for mediation or conciliation, the
 BARANGAY AGRARIAN REFORM
case or dispute may be brought before
COUNCIL (BARC)
the PARC (Sec. 53, CARL).
In addition to those provided in
Executive Order No. 229, the BARC shall  QUASI-JUDICIAL POWERS OF DAR
have the following function:
a. primary jurisdiction to
a. Mediate and conciliate between determine and adjudicate
parties involved in an agrarian agrarian reform matters;
dispute including matters
b. exclusive original jurisdiction
related to tenurial and
over all matters involving the
financial arrangements;
implementation of agrarian
b. Assist in the identification of
reform, except those falling
qualified beneficiaries and
under the exclusive jurisdiction
landowners within the
of the Department of
barangay;
Agricultural (DA) and the
c. Attest to the accuracy of the
Department of Environment and
initial parcellary mapping of the
Natural Resources (DENR).
beneficiary's tillage;
d. Assist qualified beneficiaries in c. adopt a uniform rule of
obtaining credit from lending procedure to achieve a just,
institutions; expeditious and inexpensive
e. Assist in the initial determination of every action
determination of the value of or proceeding before it.
the land; d. power to summon witnesses;
f. Assist the DAR representative in
the preparation of periodic e. administer oaths;
reports on the CARP f. take testimony;
implementation for submission
to the DAR; g. require submission of reports;
g. Coordinate the delivery of h. compel the production of books
support services to and documents and answers to
beneficiaries; and interrogatories;
h. Perform such other functions as i. issue subpoena, and subpoena

may be assigned by the DAR duces tecum;
(Sec. 47, CARL). j. to enforce its writs through
sheriffs or other duly deputized
 PROCEDURE IN CASE BARC FAILS TO officers;
SETTLE AGRARIAN DISPUTES
k. punish direct and indirect
SUBMITTED TO IT
contempt in the same manner
The BARC shall endeavor to
and subject to the same
mediate, conciliate and settle agrarian
penalties as provided in the
disputes lodged before it within thirty
Rules of Court (Sec. 50, CARL).
(30) days from its taking cognizance
thereof.
If after the lapse of the thirty-day  DARs ASSUMPTION OF
period, it is unable to settle the dispute, JURISDICTION OVER CASES NOT
it shall issue a certification of its CERTIFIED BY BARC:
proceedings and shall furnish a copy
thereof upon the parties within seven (7)
LABOR LAW COMMITTEE

Basquiñez
No. The DAR shall not take economic value for residential,
cognizance of any agrarian dispute or commercial or industrial purposes,
controversy unless a certification from the DAR,
the BARC that the dispute has been 3. upon application of the beneficiary
submitted to it for mediation and or the landowner, with due notice to
conciliation without any success of the affected parties, and subject to
settlement is presented (Sec. 53, CARL). existing laws, may authorize the
 MODE OF APPEAL FROM DAR’s reclassification or conversion of the
DECISION land and its disposition, provided,
the beneficiary shall have fully paid
An appeal from the decision of the
his obligation (Sec. 65, CARL).
Court of Appeals, or from any order,
ruling or decision of DAR, as the case
may be, shall be by a petition for review  EXEMPTION FROM TAXES OF LAND
with the Supreme Court within a non- TRANSFERS COVERED BY CARL
extendible period of fifteen (15) days
from receipt of a copy of said decision Transactions under this Act involving
(Sec. 60, CARL). a transfer of ownership, whether from
natural or juridical persons, shall be
exempted from the following taxes:
 JURISDICTION OF THE SPECIAL a. capital gains tax;
AGRARIAN COURTS b. registration fees;
The Special Agrarian Courts shall c. all other taxes and fees for
have original and exclusive jurisdiction the conveyance or transfer
over all petitions for the determination thereof
of just compensation to landowners, and Provided, all arrearages in real
the prosecution of all criminal offenses property taxes, without penalty
under this Act. The Rules of Court shall or interest, shall be deductible
apply to all proceedings before the from the compensation to which
Special Agrarian Courts unless modified the owner may be entitled (Sec.
by this Act (Sec. 57, CARL). 66, CARL).
 MODE OF APPEAL FROM DECISION  PROHIBITED ACTS AND OMISSIONS

OF THE SPECIAL AGRARIAN COURTS UNDER THE CARL
An appeal may be taken from the The following are prohibited:
decision of the Special Agrarian Courts
by filing a petition for review with the a. The ownership or possession, for
Court of Appeals fifteen (15) days from the purpose of circumventing the
receipt of notice of the decision; provisions of this Act, of agricultural
otherwise, the decision shall become lands in excess of the total retention
final (Sec. 60, CARL). limits or award ceilings by any person,
natural or juridical, except those under
collective ownership by farmer-
 INSTANCES WHEN COVERED LAND beneficiaries.
MAY BE CONVERTED AFTER THE b. The forcible entry or illegal
AWARD detainer by persons who are not
After the lapse of five (5) years from qualified beneficiaries under this Act to
its award: avail themselves of the rights and
benefits of the Agrarian Reform
1. when the land ceases to be
Program;
economically feasible and sound for
agricultural purposes, c. The conversion by any landowner of
his agricultural land into non-agricultural
2. or the locality has become urbanized
use with intent to avoid the application
and the land will have greater
CHAIRPERSONS
of this Act to his landholdings and to

dispossess his tenant farmers or the land
tilled by them;
d. The willful prevention or
obstruction by any person, association or
entity of the implementation of the
CARP;
f. The sale, transfer or conveyance by
e. The sale, transfer, conveyance or a beneficiary of the right to use or any
change of the nature of lands outside of other usufructuary right over the land he
urban centers and city limits either in acquired by virtue of being a
whole or in part after the effectivity of beneficiary, in order to circumvent the
this Act, except: provisions of this Act (Sec. 73, CARL).
· The sale and/or transfer of
agricultural land in cases where
such sale, transfer or
conveyance is made necessary as
a result of a bank's foreclosure of
the mortgaged land is hereby
permitted.( As added by R. A.
7881)
LABOR LAW COMMITTEE

Basquiñez

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San Beda College of Law 1

MEMORY AID IN LABOR LAW

 LABOR STANDARDS - the minimum BOOK ONE – On Pre-employment, sets

LABOR LAW COMMITTEE

BOOK TWO – On Human Resource  CONSTITUTIONAL PROVISIONS THAT

BOOK SIX – On Post Employment, 1. CIVIL CODE:

MEMORY AID IN LABOR LAW

or threats in such a degree as to

- raison d’etre : SOCIAL JUSTICE

LABOR LAW COMMITTEE

REASONS FOR AFFORDING GREATER  AGRICULTURAL OR FARM WORKER -

 The LC applies to all workers, Art.XIII, Sec.4

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

landowners. The State shall further RECRUITMENT AND PLACEMENT OF

BOOK ONE  ART. 16. PRIVATE RECRUITMENT

 ENTITIES AUTHORIZED TO RECRUIT:

LABOR LAW COMMITTEE

4. Shipping or manning agents or 1. Commission of a felony punishable

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

 JURISDICTION TRANSFERRED TO THE contract concerned has a term of at

LABOR LAW COMMITTEE

4. Just causes for termination of the

 ART. 18. BAN ON DIRECT HIRING

 GENERAL RULE: Direct hiring of

2. NAME HIREES – individual workers

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

Nature of Job Foreign Exchange

 QUALIFICATIONS FOR PARTICIPATION Professionals 70%

LABOR LAW COMMITTEE

b) those against whom probable cause the automatic revocation of

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

the recruitment and placement of 9. To substitute or alter

LABOR LAW COMMITTEE

Republic of the Philippines.  ILLEGAL RECRUITMENT - Any act of

 Recruitment and placement

 QUALIFYING CIRCUMSTANCES THAT

- if it is carried out by a group of

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

must be understood as referring to

I. When illegal recruitment is

 CONSEQUENCES OF CONVICTION: TITLE II

- If an alien enters the country under

LABOR LAW COMMITTEE

- Instances where there is no need

2) That the non-resident alien - The Secretary of Labor and

MEMORY AID IN LABOR LAW

applicant will be employed participation in the capital of

LABOR LAW COMMITTEE

a. MANPOWER - that portion of the supplemented by related

(a) To help meet the needs or 9.  Qualifications of an

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

MEMORY AID IN LABOR LAW

[Note: The apprenticeable age under Art. 59 LC is

LABOR LAW COMMITTEE

who wishes to avail himself or itself

 ART. 70. VOLUNTARY DURATION

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT