LABOR LAW REVIEW(er)
Article 1702. In case of doubt, all labor legislation and
Introduction
Labor
- simply means physical toil or it could also mean
productive work esp. physical work done for wages.
- May also refer to a social class comprising those who do
manual labor or work for wages.
- On of four factors of production, others being land,
capital, and enterprise
Kinds of Labor Laws
Labor Standards – refers to the minimum requirements set by
existing laws, rules and regulations relating to wages, hours of
work, cost of living allowance and other monetary and welfare
benefits, including occupational, safety and health standards.
Labor Standards Law – refers to the laws, rules and regulations
that set the minimum requirements for terms and conditions of
employment such as wages, hours of work, etc. (Books I-IV)
Labor Relations Law – the laws, rules and regulations which
govern the relationship between employees and their
employers, promote the right of the employees to self-
organization and collective bargaining, penalize unfair labor
practice, and provide modes for the settlement of labor
disputes such as conciliation, mediation, grievance machinery,
voluntary arbitration and compulsory arbitration. (Books V-VII)
Social Legislations – laws, rules and regulations that promote
welfare of all sectors of society. Includes laws that provide
particular kinds of protection or benefits to the society in
furtherance of social justice. Not all social legislations are labor
laws. Ex. Free tuition law,
Labor Laws – directly affect employment, directly governs
effects of employment. All labor laws are social legislations, but
not all social legislations are labor laws.
Sources of Labor Laws
1. 1987 Constitution
 Article II, Section 10
 Article II, Section 18
 Article XII, Section 12
 Article XIII, Section 1
 Article XIII, Section 3
 Article XIII, Section 14-Women
The Constitutional mandates of protection to labor and security
of tenure may be deemed as self-executing in the sense that
these are automatically acknowledged and observed without
need of enabling legislation. However, to declare that the
constitutional provisions are enough to guarantee the full
exercise of rights embodied therein, and the realization of
ideals therein expressed, would be impractical, if not
unrealistic. The espousal of such view presents the dangerous
tendency of being overbroad and exaggerated. (Agabon v.
NLRC, 2004)
Thus Section 3, Article XIII cannot be treated as a principal
source of direct enforceable rights, for the violation of the
questioned clause may be declared unconstitutional. It may
unwittingly risk opening the floodgates of litigation to every
worker or union over every conceivable violation so broad a
concept as social justice for labor (Serrano v. Gallant Maritime
Services, Inc., 2009)
2. Civil Code
Article 1700. The relations between capital and labor
are not merely contractual. They are so impressed
with public interest that labor contracts must yield to
the common good. Therefore, such contracts are
subject to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar
subjects.
Article 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest
or convenience of the public.
all labor contracts shall be construed in favor of the
safety and decent living for the laborer.
Article 1703. No contract which practically amounts to
involuntary servitude, under any guise whatsoever,
shall be valid.
Article 1704. In collective bargaining, the labor union
or members of the board or committee signing the
contract shall be liable for non-fulfillment thereof.
Article 1705. The laborer's wages shall be paid in legal
currency.
Article 1706. Withholding of the wages, except for a
debt due, shall not be made by the employer.
Article 1707. The laborer's wages shall be a lien on the
goods manufactured or the work done.
Article 1708. The laborer's wages shall not be subject
to execution or attachment, except for debts incurred
for food, shelter, clothing and medical attendance.
Article 1709. The employer shall neither seize nor
retain any tool or other articles belonging to the
laborer.
Article 1710. Dismissal of laborers shall be subject to
the supervision of the Government, under special
laws.
3. Revised Penal Code
 Art. 288. Other similar coercions
(compulsory purchase of merchandise and
payment of wages by means of tokens)
Bases of Labor Laws
1. Police Power – the inherent power of the State to
regulate the rights and liberty for the common good.
Obviously, protection to labor does not indicate promotion of
employment alone. Under the welfare and social justice
provisions of the Constitution, the promotion of full
employment, whole desirable, cannot take a backseat to the
government’s constitutional duty to provide mechanisms for
the protection of our workforce, local or overseas. (JMM
Promotion and Management, Inc. v. CA, 1996)
Example of provision in labor law on police power – siguro
licenses and authority
2. Social Justice – the promotion of the welfare of all the
people, the adoption by the Government of measures
calculated to insure economic stability through the
maintenance of proper economic and social
equilibrium constitutionally, through the adoption of
measures legally justifiable, or extra constitutionally,
through the exercise of powers underlying the
existence of all governments on the time honored
principle of salus populi est suprema lex.
Social justice is “neither communism, nor despotism, nor
automism, nor anarchy,” but the humanization of laws and the
equalization of social and economic force by the State so that
justice in its rational and objectively secular conception may at
least be approximated. x x x (Calalang v. Williams, 1940)
The policy of social justice is not intended to countenance
wrongdoing simply because it is committed by the under-
privileged. At best, it may mitigate the penalty, but it certainly
will not condone the offense. xxx Social Justice cannot be
permitted to be refuge of scoundrels any more than can equity
be an impediment to the punishment of the guilty. xxx This
great policy of our Constitution is not meant for the protection
of those who have proved they are not worthy of it, like the
workers who have tainted the cause of labor with the blemishes
of their own character. (PLDT v. NLRC, 1988)
THE LABOR CODE OF THE PHILIPPINES
The Labor at a Glance A. Government Employees – Art. 291, Labor Code; Civil
Service Law (PD 807)
Art. 1 – Name of the Decree B. Employees of International Organizations and
Intergovernmental bodies – complaints to DFA (but it
This Decree shall be known as the “Labor Code of the
has no jurisdiction unless protocol of ILO violated),
Philippines”.
Vienna Convention on Diplomatic Relations (basis as
Blas Ople, father of the Labor Code. to Diplomats)
C. Corporate Officers – Intracorporate disputes, RTC has
Art. 2 – Date of Effectivity jurisdiction
D. Local Districts are Quasi-GOCCs governed by the Civil
6 months after promulgation on May 1, 1974, or on November Service Law. (PD 198)
1, 1974.
GOCCs with original charter – Landbank; SSS; GSIS
Effectivity reaffirmed by P.D. No. 570-A.
GOCC without original charter – FTI, National Parks
Art. 3 – Declaration of Basic Policy Development Authority

Whether employed locally or overseas, all Filipino worker enjoy
the protective mantle of Philippine Labor and Social legislation,
contract stipulations to the contrary notwithstanding.
Policies enshrined in Section 3, Article XIII of the 1987
Constitution that are not covered by Article 3 of the Labor
Code:
a. Afford full protection to labor, local and overseas,
organized and unorganized;
b. Peaceful concerted activities, including the right to
strike in accordance with law;
c. Promote the principle of shared responsibility between
workers and employers; and
d. The preferential use of the voluntary modes of settling
disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
peace.
Art. 7-11 – Emancipation of Tenants
(amended by RA 6657 – Comprehensive Agrarian
Reform Law of 1988)
Agrarian reform means redistribution of lands, regardless of
crops or fruits produced, to farmers and regular farmworkers
who are landless, irrespective of tenurial arrangement, to
include the totality of factors and support services designed to
lift the economic status of the beneficiaries of lands, such as
production or profit-sharing, which will allow beneficiaries to
receive a just share of the fruits of the land they work.
It is wider than land reform because it includes not only land
reform but also the reform and development of complementary
institutional framework such as the administrative agencies of
the national government, rural education and social welfare
institutions.

Organized- there is a union operating BOOK ONE – PRE EMPLOYMENT

It sets the tone and groundwork for the attainment of full

Is the right to strike a constitutional right or statutory?
Statutory right – “in accordance with law” (Art. 278,
Labor Code)
Purpose of Labor Legislation:
To give life into the Constitutional mandate…(cite Art. 3)
Art. 4 – Construction in Favor of Labor
The law must protect labor, at least to the extent of raising him
to equal footing in bargaining relations with capital and to
shield him from abuses brought about by the necessity for
survival.
employment by making the maximum possible use of the
nation’s manpower
Art. 12 – Statement of Objectives
These objectives must be taken into account by the Secretary
of Labor in exercising his authority and jurisdiction granted by
the Labor code.(General Milling Corporation v. Torres, 1991)
Statement of objectives. It is the policy of the State:
 To promote and maintain a state of full employment
through improved manpower training, allocation and
utilization;

Cases:
 To protect every citizen desiring to work locally or
Santos v. ECC, 1993 overseas by securing for him the best possible terms
and conditions of employment;
Globe-McKay Cable and Radio Corporation v. NLRC, 1992
 To facilitate a free choice of available employment by
National Sugar Refineries Corporation v. NLRC persons seeking work in conformity with the national
interest;
Bonifacio v. GSIS

Art. 5 – Rules and Regulations  To facilitate and regulate the movement of workers in
conformity with the national interest;
The Department of Labor and Employment, as the agency
charged in the implantation of the provisions of the Labor Code,  To regulate the employment of aliens, including the
is equipped by law with the powers and authority to promulgate establishment of a registration and/or work permit
rules and regulations in the proper and efficient implementation system;
of the Labor Code.
 To strengthen the network of public employment offices
Agencies under the DOLE and rationalize the participation of the private sector in
the recruitment and placement of workers, locally and
 OWWA overseas, to serve national development objectives;
 POEA
 NLRC  To insure careful selection of Filipino workers for
overseas employment in order to protect the good name
Art. 6 – Applicability
of the Philippines abroad.
The provisions of the Labor Code shall apply to all employees
whether:
Art. 13 – Definitions
a. Agricultural or non-agricultural
a. "Worker" means any member of the labor force,
b. Industrial or commercial; or
whether employed or unemployed.
c. For profit or not unless otherwise provided by law.
b. "Recruitment and placement" refers to any act of
Exceptions to application of Art. 6: canvassing, enlisting, contracting, transporting,
 utilizing, hiring or procuring workers, and includes 6. Construction contractors if authorized by DOLE and
referrals, contract services, promising or advertising Construction Industry Authority;
for employment, locally or abroad, whether for profit 7. Members of the diplomatic corps but must pass
or not: Provided, That any person or entity which, in through POEA; and
any manner, offers or promises for a fee, employment 8. Other persons or entities authorized by DOLE.
to two or more persons shall be deemed engaged in
recruitment and placement. Art. 17 – Overseas Employment Development Board
c. "Private fee-charging employment agency" means any (Repealed by E.O. No. 797)
person or entity engaged in recruitment and
Also abolished and replaced by POEA.
placement of workers for a fee which is charged,
directly or indirectly, from the workers or employers Under EO 797 and 247, POEA was established and mandated
or both. to assume the dunctions of the OEDB, NSB, and BES. (Trans
d. "License" means a document issued by the Action Overseas Corporation v. Sec. of Labor, 1997)
Department of Labor authorizing a person or entity to
operate a private employment agency. Functions of the POEA
e. "Private recruitment entity" means any person or
association engaged in the recruitment and placement 1. Formulation, implementation, and monitoring of
of workers, locally or overseas, without charging, overseas employment of Filipino workers;
directly or indirectly, any fee from the workers or 2. Protection of their rights to fair and equitable
employers. employment practices; and
f. "Authority" means a document issued by the 3. Deployment of Filipino workers through government
Department of Labor authorizing a person or to government hiring.
association to engage in recruitment and placement
Regulatory functions:
activities as a private recruitment entity.
g. "Seaman" means any person employed in a vessel The POEA regulated private sector participation in the
engaged in maritime navigation. recruitment and overseas placement of workers through its
h. "Overseas employment" means employment of a licensing and registration of recruitment agencies.
worker outside the Philippines.
i. "Emigrant" means any person, worker or otherwise, Adjudicatory functions
who emigrates to a foreign country by virtue of an
immigrant visa or resident permit or its equivalent in 1. It shall have original and exclusive jurisdiction ober
the country of destination. administrative cases for violation of recruitment rules
and regulations.
Included in Recruitment and Placement: 2. It exercised disciplinary functions involving
employers, principals, contracting partners, and
Referral is the act of passing along or forwarding of an Filipino migrants.
applicant for employment after an initial interview of a selected
applicant for employment to a selected employer, placement Disciplinary Powers
officer, or bureau. (People v. Goce, 1995)
1. Revoke or cancel licenses;
Art. 14 – Employment Promotion 2. Close recruitment and manning agencies; and
3. Blacklist erring agencies.
The Secretary of Labor shall have the power and authority:
Can an OFW file a case for illegal dismissal?
a. To organize and establish new employment offices in - Civil Code Art 1146, an injury to a right prescribes in 4
addition to the existing employment offices under the years.
Department of Labor as the need arises; - Prayer in Illegal Dismissal case:
b. To organize and establish a nationwide job clearance Reinstatement without loss of seniority rights,
and information system to inform applicants registering backwages, damages, attys fees.
with a particular employment office of job opportunities - In OFWs, illegal dismissal cause but only money claim bc
in other parts of the country as well as job opportunities no claim for reinstatement. So prescription is 3 years.
abroad; -
c. To develop and organize a program that will facilitate Composition
occupational, industrial and geographical mobility of
labor and provide assistance in the relocation of workers  Governing Board
from one area to another; and o Chairman – Sec. of Labor and Employment
d. To require any person, establishment, organization or o Member – Administrator
institution to submit such employment information as o Board Member – Appointed by the President
may be prescribed by the Secretary of Labor. of the Republic
 Office of the Administration
Art. 15 – Bureau of Employment Services (Repealed by  Office of the Deputy Administrators
E.O. No. 797)  Office of the Manager
Functions assumed by the Philippine Overseas Employment Jurisdiction of POEA
Administration (POEA) in May 1, 1982, granting original and
exclusive jurisdiction over all cases, including money claims, No more jurisdiction over monetary claims of OFWs, the same
involving employer-employee relations arising out of or by having been transferred to the Labor Arbiters by virtue of RA
virtue of any law or contract involving Filipino Workers for 8042.
overseas employment, including seamen.
Confined to recruitment and placement cases which are
 Overseas Employment Development Board administrative in nature, involving or arising out of recruitment
 National Seamen Board laws, rules and regulations, including money claims arising
therefrom or violation of the conditions for issuance of license
Art. 16 – Private Recruitment to recruit workers.
As a general rule, no person or entity shall engage in the Art. 18 – Ban on Direct Hiring
recruitment and placement of workers either for local or
overseas employment except those allowed by law like: No employer may hire a Filipino worker for overseas
employment except through the Boards and entities authorized
1. Public employment offices; by the Secretary of Labor.
2. Private recruitment entities;
3. Private employment agencies; Exception:
4. Shipping or manning agencies; - Diplomatic corps – presumed to respect international law
5. POEA; on protection of workers
- international organizations – they are presumed to know
and respect the law. Possess a certain stature in the
international community
- any person allowed by Sec. of Labor
- name hires – have found jobs on their own should have
their documents processed at the POEA.
Rationale: So that Filipino workers will not fall prey to
unscrupulous and abusive foreign employers who might
victimize them in the absence of government regulation.
Doctrine of imputed knowledge
Art. 19 – Office of Emigrant Affairs
Abolished and replaced by the Commission on Filipinos
Overseas (BP 79, June 16, 1980) CFO – attached to the Office
of the President
Composition:
Chairman – Appointed by the President with Cabinet Rank
Vice-Chairman – Secretary of Foreign Affairs
Members:
Secretary of Trade and Industry
Secretary of Labor and Employment
Secretary of Education
Justice
Tourism
Press Secretary
Executive Director, CFO
Art. 20 – National Seamen Board (Repealed by E. O. no.
797)
Abolished and replaced by the POEA
Art. 21 – Foreign Service Role and Participation
Labor attaches, labor reporting officers duly designated by the
Secretary of Labor and the Philippine diplomatic or consular
officials concerned shall, even without prior instruction or
advice from the home office, exercise the power and duty:
Art. 22 – Mandatory Remittance of Foreign Exchange
Earnings
Mandatory remittance of a portion of their forex earnings to
their families, dependents, and/or beneficiaries in the country
in accordance with rules and regulations prescribed by the
Secretary of Labor.
- strengthened by EO 857, December 13, 1982. To protect
the welfare of families, dependents, and beneficiaries and
to ensure that the forex earnings of these workers are
remitted through authorized financial institutions of the
Phil. Government in line with the country’s economic
development program.
Consequences of non compliance:
1. Employer shall not be issued accreditation
2. Passports of filipino contract workers shall not be
renewed after expiration
3. Renewal of employment contracts will not be
approved
4. No license or authority shall be issued to the agency.
Art. 23 – Composition of the Boards (Repealed by E. O.
no. 797)
Art. 24 – Boards to Issue Rules and Collect Fees
(Repealed by E. O. no. 797)
Art. 25 – Private Sector Participation in the Recruitment
and Placement of Workers
Art. 26 – Travel Agencies Prohibited to Recruit
Travel agencies and sales agencies of airline companies are
prohibited from engaging in business of recruitment and
placement of workers for overseas employment whether for
profit or not.
Including:
officers or members of the Board of any corporation or
members in a partnership engaged in the business of a travel
agency.
Corporations and partnerships, when any of its officers,
members of the board or partners, is also an officer, member
of the board, or partner of a corporation engaged in the
business of a travel agency.
Darvin v. CA. 1998
Art. 27 – Citizenship Requirement
Only Filipino citizens or corporations, partnerships or entities at
least 75% of the authorized and voting capital stock of which
is owned and controlled by Filipino citizens shall be permitted
to participate in the recruitment and placement of workers
locally, or overseas.
Disqualified:
1. Travel agencies and sales agencies of airline
companies
2. Officers or Board members of any corp. or partnership
engaged in travel agency.
3. Corporations and partnerships, when any of its
officers, members of the board or partners, is also an
officer, member of the board, or partner of a
corporation engaged in the business of a travel
agency.
4. Persons, partnership or corp. which have derogatory
records
5. Official or employee of DOLE, POEA, OWWA, DFA, and
other govt agencies directly involved in
implementation of RA 8042, migrant workers act
and/or any of his or her relatives within the 4th civil
degree of consanguinity or affinity
6. Persons whose license have been previously cancelled
or revoked for violation of recruitment law.
Art. 28 – Capitalization
2016 POEA Revised RR for OFWs, increase up to 5M in the next
4 years, rate of 750K per year.
Art. 29 – Non-transferability of License or Authority
License – document issued by the DOLE authorizing a person
to operate a private employment agency. Includes collection of
fees.
Authority – document issued by DOLE authorizing a person or
association to engage in recruitment and placement activities
as private recruitment agency. Not entitled to collect fees.
Validity – 4 years from the date of issuance, unless sooner
cancelled revoked or suspended for violations of applicable PH
law, rules and other pertinent issuances.
Art. 30 – Registration Fees
Filing Fee – 25 K non refundable
License Fee – 100 K
Escrow Deposit – 1M
Art. 31 – Bonds
Surety bond - 100K – intended for the protection of our citizens
who are engaged for overseas employment by foreign
companies. (Stronghold v. CA 1992)
Art. 32 – Fees to be paid by Workers
Worker shall only be charged when he has obtained
employment through its effort or has actually commenced
employment.
People v. Gasacao, 2005
Eastern insurance v. Sec. of labor, 1990 – victims shall be
restored in order to repair the injury caused to them.
Art. 33 – Reports on Employment Status
Whenever public interest so requires, Secretary may direct all Art. 77 – Penalty Clause
persons or entities within the coverage of this title to submit a
report on the status of employment, including job vacancies, HANDICAPPED WORKERS
details of job requisitions, separation from jobs, wages, other
Art. 78 – Definition
terms and conditions and other employment data.
Art. 79 – When Employable
Art. 34 – Prohibited Practices
Art. 80 – Employment Agreement
Art. 35 – Suspension and/or Cancellation of License of
Authority Art. 81 – Eligibility for Apprenticeship
Secretary of Labor and Employment has the power

Art. 36 – Regulatory Power

Secretary of Labor and Employment has the power to restrict

and regulate the recruitment and placement activities of all
agencies

Art. 37 – Visitorial Power

Art. 38 – Illegal Recruitment

Art. 39 – Penalties

Art. 40 – Employment Permit of Non-Resident Aliens

Art. 41 – Prohibition Against Transfer of Employment

Art. 42 – Submission of List

BOOK TWO - HUMAN RESOURCES DEVELOPMENT

PROGRAM

It emphasizes the need of developing human resources.

NATIONAL MANPOWER DEVELOPMENT PROGRAM

Art. 43 – Statement of Objective

TRAINING AND EMPLOYMENT OF SPECIAL WORKERS

APPRENTICES

Art. 57 – Statement of Objectives

Art. 58 – Definition of Terms

Art. 59 – Qualifications of Apprentice

Art. 60 – Employment of Apprentices

Art. 61 – Contents of Apprenticeship Agreements

Art. 62 – Signing of Apprenticeship Agreement

Art. 63 – Venue of Apprenticeship Programs

Art. 64 – Sponsoring of Apprenticeship Programs

Art. 65 – Investigation of Violation of Apprenticeship

Agreement

Art. 66 – Appeal to the Secretary of Labor and

Employment

Art. 67 – Exhaustion of Administrative Remedies

Art. 68 – Aptitude Testing of Applicants

Art. 69 – Responsibility for Theoretical Instruction

Art. 70 – Voluntary Organization of Apprenticeship

Programs, Exemptions

Art. 71- Deductibility of Training Costs

Art. 72 – Apprentices without Compensation

LEARNERS

Art. 73 – Learners Defined

Art. 74 – When Learners May Be Hired

Art. 75 – Learnership Agreement

Art. 76 – Learners in Piece-Work