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• That sector or group in a society, which derives its livelihood chiefly from
rendition of work or services in exchange for compensation under managerial
direction. (as a sector of society)
General Concepts
• Labor law
• The law governing the rights and duties of the employer and employees with
respect to:
• The terms and conditions of employment and
• Labor disputes arising from collective bargaining respecting such terms and conditions.
General Concepts
• Labor Standards Law
• Labor standards refers to the minimum requirements prescribed 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 (Batong Buhay Gold Mines, Inc., vs. Dela Serna,
et. al., G.R. No. 86963, August 6, 1999)They are covered by Books I to IV of
the Labor Code.
• BOOK I – Pre-Employment
• BOOK II – Human Resources Development Program
• BOOK III – Conditions of Employment
• BOOK IV – Health, Safety and Social Welfare
General Concepts
• Labor Relations Law
• Labor relations laws are 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. They are covered by Books V – VII of the Labor Code.
• BOOK V – Labor Relations
• BOOK VI – Post Employment (Note that we will cover this topic in this subject)
• BOOK VII – Transitory Final Provisions
General Concepts
• Social Legislations
• Social legislations are laws, rules, and regulations that promote welfare of all
sectors of society. Social Legislation includes laws that provide particular kinds
of protection or benefits to the society, in furtherance of social justice.
• Note that not all social legislations are labor laws. Labor laws directly affect
employment and directly govern the effects of employment. All labor laws are
social legislations. But not all social legislations are labor laws.
• NOTE: all labor laws are social legislations, but not all social legislations are considered
labor legislations. Social legislation is broader in scope and will include social security
laws and agrarian reform laws.
Why the need for State regulation?
• Why does the State regulate labor?
• Because an absolute free market capitalism may lead to exploitation of the
work force. Thus as a policy of the State, it uses its police power to regulate
the use of labor by capital.
• In the past, workers do not have rights. But due to the labor movement that
happened during the industrial revolution, workers started forming unions
and demanded minimum standards to be observed by their employers. Soon
after, concepts like minimum wage, maximum number of working hours, and
prohibitions against child labor, were introduced and observed.
• In the present, it is still true that Capital is superior than Labor, and to balance
this relationship, the State comes in to regulate.
Constitutional Provisions
• There are multiple provisions contained in our constitution that
covers labor law, but the most important labor provision under our
constitution is Sec. 3, Art. XIII also known as the “Protection to Labor
Clause.”
• Article 4. No one shall be held in slavery or servitude; slavery and the slave trade shall be
prohibited in all their forms.
• Article 20.
(1) Everyone has the right to freedom of peaceful assembly and association.
(2) No one may be compelled to belong to an association
Constitutional Provisions
• Sec. 13, Art. II
• Vital role of youth in nation building
• “In the absence of statute, public employees do not have the right to
engage in concerted work stoppages for any purpose.” (Bangalisan v.
Court of Appeals, G.R. No. 124678, July 31, 1997)
Constitutional Provisions
• Sec. 1, Art. XIII
The Congress shall give highest priority to the enactment of measures that
protect and enhance the right of all the people to human dignity, reduce social,
economic, and political inequalities, and remove cultural inequities by equitably
diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and
disposition of property and its increments.
Constitutional Provisions
• Sec. 2, Art. XIII
• The promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and self‐reliance.
• Art. 1702. In case of doubt, all labor legislation and all labor contracts
shall be construed in favor of the safety and decent living for the
laborer.
Civil Code Provisions on Labor
• Art. 1703. No contract which practically amounts to involuntary
servitude, under any guise whatsoever, shall be valid.
The Labor Code of the Philippines
PRESIDENTIAL DECREE No. 442
IMPORTANT NOTE
• The Article numbers in the Labor Code are constantly changing due to
amendments. Thus, if the article number is erroneous in this course,
then please forgive me.
The Labor Code
• ARTICLE 1. Name of Decree. - This Decree shall be known as the
"Labor Code of the Philippines".
• ART. 2. Date of effectivity. - This Code shall take effect six (6) months
after its promulgation.
• The Labor Code took effect on November 1, 1974.
The Labor Code
• ART. 3. Declaration of basic policy. - The State shall afford protection
to labor, promote full employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the relations between
workers and employers. The State shall assure the rights of workers to
self-organization, collective bargaining, security of tenure, and just
and humane conditions of work.
Declaration of basic policy (Art. 3.)
• The State shall:
1. Afford full protection to labor;
2. Promote full employment;
3. Ensure equal work opportunities regardless of sex, race, or creed;
4. Regulate the relations between workers and Employer; and
5. Assure the rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane conditions of work
Declaration of basic policy (Art. 3.)
• BUT NOTE: Protection to labor should not equate to oppression of
capital
• The law recognizes management rights. The Eer has the right to:
• Conduct business
• Prescribe rules
• Select and hire Employees
• Transfer or discharge Employees
• Discipline of Employees
• Return of investment and expansion of business
Declaration of basic policy (Art. 3.)
• Concept of Management Prerogatives
• Under the doctrine of management prerogative, every employer has the
inherent right to regulate, according to his own discretion and judgment, all
aspects of employment, including hiring, work assignments, working
methods, the time, place and manner of work, work supervision, transfer of
employees, lay-off of workers, and discipline, dismissal, and recall of
employees (Rural Bank of Cantilan. v. Julve, GR No. 169750, February 27,
2007).
Declaration of basic policy (Art. 3.)
• Management prerogatives are subject to limitations provided by:
• Law
• Contract or Collective Bargaining Agreement
• General principles of fair play and justice
• This simply gives the DOLE the duty to enforce the Labor Code.
Applicability of the Labor Code (Art. 6)
• ART. 6. Applicability. - All rights and benefits granted to workers under
this Code shall, except as may otherwise be provided herein, apply
alike to all workers, whether agricultural or non-agricultural.
Applicability of the Labor Code (Art. 6)
• Applicability of the Labor Code – the Labor Code applies to all workers
whether agricultural or non-agricultural
• Exceptions:
1. Government employees (covered by the Civil Service Law)
2. Employees of government owned and controlled corporations created by
special or original charter.
3. Foreign governments
4. International agencies
• NOTE: International organizations and intergovernmental bodies are not covered by the
Philippines Labor Laws. The remedy of the aggrieved employee is to file a complaint
before the Department of Foreign Affairs.
Applicability of the Labor Code (Art. 6)
• Applicability of the Labor Code – the Labor Code applies to all workers
whether agricultural or non-agricultural
• Exceptions:
4. Corporate officers/ intra-corporate disputes which fall under P.D. 902-A and
now fall under the jurisdiction of the regular courts pursuant to the
Securities Regulation Code.
5. Local water district except where NLRC’s jurisdiction is invoked.
6. As may otherwise be provided by the Labor Code. (Ex: Applicability of Book
III)
Applicability of the Labor Code (Art. 6)
• Rule on GOCCs
• If created by special or original charter – Labor Code does not apply to its
employees (Civil Service Law will govern)