Labor Standards- The minimum requirements prescribed by existing laws, rules and regulations as to the

terms and conditions of employment relating to wages, hours of work, cost-of-living allowance, and other
monetary and welfare benefits, including occupational, safety and health standards.

Labor Relations- Defines and regulates the status, rights and duties, and the institutional mechanisms that
govern the individual and collective interactions of Ers, Ees or their representatives.

Social Legislation- All laws passed by the State to promote public welfare. Laws that provide particular
kinds of protection or benefits to society or segments thereof in furtherance of social justice. It includes
statutes intended to enhance the welfare of the people even where there is no Er-Ee relationship.

All labor laws are social legislation, but not all social legislations are labor laws. Social legislation as a concept is
broader while labor laws are narrower.

Social Justice is the aim of labor laws. It means the promotion of the welfare of all the people.
-Humanization of laws and Equalization of social and economic forces.
-Equal Protection Clause
When is there a valid classification?
1. There must be a substantial distinction
2. Must be germane to the purpose of the law
3. Must apply to future conditions
4. Must apply to those in the same class.
CASE: Intl School v. Quisimbing
-Foreign teachers has higher salaries than local teachers – 25% higher based pay and
benefits and allowances.
Ruling: In violation of the equal protection clause because there is no substantial
distinction
Both classes are competent and has the same work, there ought not to be different. Thus,
there must be equal based pay.
While social justice is the aim of labor laws, their basis is the police power of the State.
Police Power – Lawful Subject and Lawful Means
-LS: must be germane to the purpose of law sought to be achieved
-LM: means to achieve such goal must not be oppressive and confiscatory
Management Prerogative
-Must be exercised for legitimate business interest or purposes.
-Must be exercised in good faith
 -Must be communicated amply to the employees

Management Rights
1. Return of Investments
2. Implement rules and regulations
3. Right to terminate or discipline employees based on just and authorized causes and
twin procedural rule
4. Right to select employment in accordance to regulations imposed by the law
5. Right to determine compensation and benefits for the employees in accordance with
law
6. Right to promote employees or to transfer in the same level
References of Labor
Labor Code Constitution Civil Code Jurisprudence Special Laws Revised Penal
Code CBA Employment Contract Employer Practice Company Practice Remedial
Laws International Labor Organizations

Construction of Labor Law

Rule: Leaning towards Labor (in case of doubt)
-Because of inherent inequality between the economic conditions of labor and capital.
-Thus, the scales of justice must be tilted in favor of labor in order to level the playing field.
-But, does not mean to disregard the rights of the employer so as to deprive its rights to due
process and justice.
SOSITO CASE:
- Construction is not always in favor of labor.
- In this case, since Sosito is on an indefinite leave, he should not be accorded of the
benefits for the retrenchment program.
Tripartism- refers to the involvement between the ER, EE and the STATE in policy making.