The Labor Code and The

Dynamics
Between Employees and
Employers
ATTY. J. OSWALD B. LORENZO

Former Labor Arbiter, NCR-NLRC; Professor of Law and Pre-
Bar Reviewer; President, The Center for Law Advocacy and
Specialized Studies (CLASS); former Assistant Secretary,
DENR and POEA Director for Licensing and Past President,
National Association of Labor Arbiters (NALA), Inc.
I. Introduction
1. Constitutional Provisions Related to Labor, Sec.
3, Art. XIII, 1987 Constitution
2. Preliminary Title; Art. 1-2 Labor Code
Art. 4-6 Labor Code
Construction in Favor of Labor Clause
Rule Making Power/Power of
Subordinate Legislation
ONAR/UP Law Center should be
furnished copies of the Rules/Issuance,
etc. (PASEI vs. TORRES)
II. Areas of Jurisdictional Conflict
1. Labor Standards
a.) LA vs. CSC Government Employees of Line
Agencies (DOLE, etc.)
b.) LA vs. CSC Employees of GOCCs with
Original Charter
c.) LA vs. CSC GOCC without Original Charter
d.) LA vs. RTC (previously SEC) on corporate
Officers
- The New Securities Regulations Code
e.) Employees of International and Specialized
Agencies- LA/LT and Regular Courts have
NO jurisdiction
f.) LA s. Regular Courts
- reasonable causal connection test
g.) LA (Unorganized) vs. VA (Organized)
- Correction of Wage Distortions
LA-Rep. Act. No. 6727 (WRA)
h.) Sec. of Labor/Regional Director /LEEO
Inspection/Visitorial Cases
i.) LA vs. RD Divestment of Jurisdiction of
Visitorial/Enforcement Case
j.) RD (Art. 129) and LA (Art. 217 a (6)) Money
Claims
k.) Dept. Order No. 5 Money Claims of
Homeworkers
LA (above P5,000) vs. RD (P5000 and
below)
l.) Pre-employment (POEA) AND Money
Claims
of OFWs (LA, Sec. 10, Migrant Workers
Act of 1995)
m.) Marsaman and Skippers Case (Sec. 10,
Migrant Workers Act)
III. 2. Labor Relations

a.) ULP LA [Art. 217 a(1)] vs. VA (Art.
262) vs. SL [Art. 263 (g)]
b.) LA vs. VA Termination Disputes
c.) Jurisdiction- NLRC Division (218(e),
Labor Code)
d.) Appellate Jurisdiction NLRC
Division (217(b); Labor Code)
e.) Sec. of Labor vs. NLRC Division
(Assumed and Certified Case,
respectively)
f.) LA (Gross ULP) vs. VA (Grievable
Matters) ULP (Art. 248(i) and Art.
261 LC)
g.) Appeals Decisions Reg. Director
and Labor Arbiters
h.) Appellate Remedies [CA (Rule
65)and SC (Rule 45)]
i.) Decision of Voluntary Arbitrator
(Rule 43)
IV. Other Labor Relations Matters
3. Union Organization Independent (234,
Labor Code); Chartered Locals (Book V
Rules)
4. Collective Bargaining (Art. 250-253, Labor
Code; Kiok Loy vs. NLRC (141 SCRA 179)
5. Certification Elections (Organized 256,
Labor Code); Unorganized (257); Employer
(258)
6. Strikes and Lockout (263, 264 and 265
(Labor Code)
7. Penalties Art. 272 and Art. 288, Labor
Code
8. Termination Disputes (Post-Employment)
9. Prescription of Actions (illegal Dismissal 4
years; Art. 1146, Civil Code); Money Claims
and Offenses (3 years; ULP 1 year.)
10. Due Process - Wenphil, Agabon and Jaka
Food Cases
11. Kinds of Employment 280-281, Labor Code
12. Just (282; Labor Code) and Authorized
Cause (283 and 284 Labor Code)
13. Unfair Labor Practice (247-249); Prescriptive
Period (One (1) year)
14. Jurisprudence (2005 and 2007 Supreme
Court Cases
V. New Book V Rules

VI. Vital Labor Matters
1. Affiliation and Disaffiliation
(Benguet Case)
2. Union Security Clauses; Kinds
- A Valid Form of Discrimination
- Union members dismissed under
any of the union security clauses
are subject to due process
3. Effecvitity CBAs Art. 253-A,
Labor Code; Expired CBA and
CBA Negotiated for the First Time
4. ATM and Check as Mode of Payment
of Wages (Requisites)
5. Bars to Certification Election
6. Public Sector Unionism (Executive
Order No. 180) and Private Sector
Unionism (Book V, Labor Code and
Rules)
7. Grounds for Dismissal; Requisite
Loss of Trust and Confidence
Gross Insubordination
Serious Misconduct Abandonment
(procedural Requirement)
Other Grounds
8. Anti-Sexual Harassment Act (Jacutin,
Libres and Villarama Cases)
9. Backwages (Mercury Drug and
Bustamante Cases)
10. Probationary (Art. 281, Labor Code and
Project Employees; Seasonal Employees; and
theses with and Fixed Period Employment)
11. Book III benefits (Coverage and Exclusions)
12. Art. 283 on Retrenchment; Closure; Losses
(North Davao Mining vs. NLRC)
13.Ample Opportunity and the Power of Secretary
of Labor to Suspend Effects of Termination
(277, Labor Code)
14. Right to Self-Organization and the Non-
Abridgment Clause (246, Labor Code)
15. Labor Only Contracting vs. Job/Individual
Contracting Department Order and Art. 106 to
109 of the Labor Code and Department Order
VII. Labor Law Concepts Revisited:
1. Discuss and/or define the following labor law
concepts: (a) Post Employment; (b) A Fair
Day's Wage for a Fair Day's Labor; (c)
Employer-Employee Relationship; (d) Escrow
Agreement; (e) OFW Model Employment
Contract; (f) Name Hire; (g) Country Team
Approach; (h) Gender Sensitivity; (I) Overseas
Filipinos; (j) Upgrading of Partnerships and
Single Proprietorships; (k) Living Wage; (l)
Protection to Labor Clause; (m) Labor
Standards; Labor Relations and Social
Legislation; (n) Visitorial and Enforcement
Power of the Secretary of Labor; (o) Power of
Subordinate Legislation;
(p) Rule-Making Power of the Secretary of
Labor and Other Officials Tasked to
Implement the Labor Code, as Amended and
Other Laws; (q) Service Incentive Leave Pay;
(r) Service Charges; (s) Night Shift
Differential; (t) Sexual Harassment in a Work,
Education and Training Related
Environment; (u) Homeworker; (v) Wage
Distortion; (w) Organized Establishment and
Unorganized Establishment; (x) GRO's Right
To Be Considered as an Employee Under Art.
138 of the Labor Code, as Amended; (y)
Labor; and (z) Management Prerogative
2. (a) construction in favor of labor clauses; (b)
the purpose and means test during a strike;
(c) boulwarism; (d) retirement; (e)
constructive dismissal; (f) constructive
resignation; and (g) strained relations; (h)
strike duration pay; (I) contract bar rule; (j)
affiliation and disaffiliation; (k) surface
bargaining; (l) jurisdictional pre-conditions
for collective bargaining; (m) notice of strike;
(n) strike vote report (New case-Capital
Medical Center vs. NLRC-2005); (o) accrual
of money claims; (p) the Mercury Drug ruling;
(q) the Bustamante ruling; (r) security of
tenure of seasonal employees and
probationary employees and Jaka Foods
rulings.