LABOR LAW 1 B.

Recruitment and Placement

Definition (CETCHUP-CRAP)
A. Fundamental Principles 1) Canvassing
Legal Basis 2) Enlisting
a) 1987 Constitution 3) Transporting
- Art. II: Promote full employment/social justice, affirm labor, 4) Contracting
protect rights of workers 5) Hiring
- Art. III: Assemble, form Associations, non-impairment of contracts 6) Utilizing
- Art. XIII: Afford full protection to labor, promote full employment 7) Procuring
/ opportunities, guarantee rights to all workers 8) Contract Services
b) Civil Code 9) Referrals
- Relation between labor and capital not merely contractual; 10) Advertising
impressed with public interest 11) Promising
c) Labor Code - Any person or entity which, in any manner, offers or promises
employment for a fee = engaged in R/P
 7 Cardinal Rights:
1) Self-Org  Professional Employment Agency
2) Collective Bargaining o License
3) Peaceful and concerted activities including right to Strike o Can collect fees
4) SoT  Professional Recruitment Entity
5) Living Wage o Authority
6) Just and Humane Conditions of Work o Can’t collect fees
7) Participation in policy and decision-making processes  OFW/MW is one engaged in remunerated activity in:
 PPE-RR: Protect labor, Promote full employment, Ensure equal 1) State where he is not a citizen
opportunities, Regulate employment relations, Rights of Workers 2) Vessel going around foreign seas (not military/non-commercial)
State policy towards labor 3) Installations offshore/high seas
 Security of Tenure: all EEs entitled to SoT - OFW/MW only in States that:
o X: State may regulate on the basis of police power o Have labor/social laws
 Social Justice: neither communism, nor despotism, nor atomism, o Part of conventions/declarations protecting rights of
nor anarchy but the humanization of laws; and the equalization of laborer
social and economic forces by the State o Part of bilateral agreement w/ PHL
- Equal work opportunities regardless of sex, race, creed o Must also take concrete positive measures
- Construction in favor of labor only if there is doubt Regulation
Burden of Proof/Evidence a) Jurisdiction
 Existence of ER-EE EE POEA - Admin cases for violations of RR for licensing/registration
 Fact of dismissal EE - Disciplinary cases involving OFWs/ERs etc
 Validity of dismissal ER NLRC - ER-EE claims involving OFWs including damages
 Quantum Substantial RTC - Crim actions for illegal recruitment
b) Ban on direct hiring
- GR: No ER may hire OFW except through legal channels
 o X: Diplomats/Heads of State/ILO, Professional/Skilled individually or as a group
Workers, Hired by relative/family that is a NRC - Art. 13 LC OR Art. 34 LC/Sec. 6,
c) Entities prohibited from Recruiting RA 8042
- Local: travel agencies, convicted of IR/CMT, those with PC for Illegal Recruitment Estafa
conviction, cooperatives, law enforcers, those revoked, sole prop - Malum prohibitum - Malum in se
of licensed agencies - Intent immaterial - Intent material
- Overseas: travel agencies (and officers/BOD), insurance - Profit/damage immaterial - Profit/damage essential
companies, w/ derogatory records, gov’t officials enforcing 8042 Liabilities of Agency/Employer
d) Suspension/cancellation of license/authority 1) Local Recruitment Agency
- SOLE and POEA Administrator w/ concurrent jurisdiction - Penalty on officer/s liable if corp/assoc/partnership
e) Prohibited Practices - EEs of a company/corp engaged in IR solidarily liable together w/
Local + Overseas: ER if it is shown that he actively and consciously participated in IR
1) Excessive fees 2) Foreign Employer
2) False Notice (Recruitment/Registration) - Solidarily liable w/ LRA for all ER-EE claims
3) Induce to quit unless to liberate  Theory of Imputed Knowledge:
4) Influence not to employ o Notice to agent = Notice to principal
5) For jobs harmful to health/morality/dignity of PHL o Notice to principal X Notice to agent
6) Obstruct SOLE Termination of Contract of OFW/MW
7) Failure to file/submit reports - Payment of unpaid salaries for unexpired portion of employment
8) Become board mem of travel agency contract if:
9) Substitute/alter contracts 1) Termination w/o JAC
10) Withhold/deny travel documents 2) Unauthorized deductions from salary
+ Overseas: Employment of Non-Resident Aliens
1) Failure to deploy/reimburse - WHO: NRA / Domestic or Foreign ER
2) Grant > 8% loan to OFW - WHERE: DOLE RO/FO w/ jurisdiction over place of work
3) Failure to condone loan - WHEN: 15D after signing contract / before commencement of
4) Loans/health exams/training in specific institutions employment
5) Acts of suspended agency - WHEN FOR RENEWAL: 60D before expiration
6) Deduction of fees for insurance charges - Condition: no CAW person to perform the services
Illegal Recruitment Exempted: (AI-IP-RRL)
Simple Economic Sabotage 1) Accredited Diplomats/Officials
1) Licensed/Authorized 1) By syndicate 2) IO officers/staff + spouses
- Licensee/Holder - Not licensed/holder 3) Accredited FC for interviewing
- Art. 34 LC or Sec. 6, RA 8042 - Committed by 3 or more 4) Profs
2) Unlicensed/Unauthorized - Art. 13 LC OR Art. 34 LC/Sec. 6, 5) RA
- Not licensed/holder RA 8042 6) Refugees/Stateless
- Art. 13 LC / Art. 34 LC or Sec. 6, 7) Law
RA 8042 2) By large scale Excluded:
- Not licensed/holder 1) Governing Board w/ voting rights
- Committed against 3 or more 2) Pres/Treasurer
 3) Consultancy Services d - Consent of majority of EEs
4) Intra corp transferee (MES) Workweek - Notify DOLE
5) Contractual Service Supplier (MES) Night Shift Differential
6) Rep of Foreign Principal/ER a) Rate: 110% of hourly rate
- Additional position: publication b) Coverage
- Change of position/ER: app for new AEP - GR: All EEs
- Duration: 1Y, max 3Y/ contract states otherwise o X: same as Art. 82 + RSA <=5 EEs
Denial (MI-MI-COF-F-CAW-E1) Cancellation (MI-MI-COF-F-TON) Overtime
1) Misrepresentation 1) Cancellation: a) Rate: 125% of hourly rate
2) Misconduct 2) Misrepresentation b) Coverage
3) Convicted/Fugitive 3) Misconduct - GR: OT cannot be compelled
4) Falsified Docs 4) Convicted/Fugitive o X1: War/Emergency
5) Competent/Able/Willing 5) Falsified Docs o X2: Public Calamities
6) Expired Visa 6) Termination by ER o X3: Prevent damage to machines/equipment
7) No AEP for > 1Y 7) Meritorious Objection o X4: Prevent loss of perishable goods
8) Non-Compliance w/ Reqs o X5: Work started before 8th H to prevent prejudice to
operations
C. Labor Standards o X6: To get favorable weather/conditions
- GR: Demandable only if supervisor approved
a) Conditions of Employment
o X1: Work is necessary/beneficial
Hours of Work
o X2: No sub
a) Coverage
- GR: All EEs o X2X: Work on holidays/Sundays needs written authority
o X1: Gov’t EEs (GOCCs w/ special charter) - Built-in OT legal if:
o X2: Managerial EEs: Execute policies/personnel decisions o Consent of EE
o X3: Supervisory EEs: Recommend/use discretion o Benefits >= provided by law
o X4: Kasambahay: Exclusive service at a household d) Non-Compensable Time
Meal break - GR: 1H meal break not compensable
o X5: Field Personnel: No control/supervision by ER
X: Meal break >=20 min for:
o X6: Workers Paid by Result: No control/supervision by ER
1) Non-physical activity
o X7: Personal Service 2) >=16H ops
o X8: Members of family dependent for support 3) Emergencies
b) How to Determine Hours Worked and Coverage 4) Perishable goods
- All hours the EE is required to be on duty or to be at a prescribed Power interruptions - GR: PI/BO >20 min not compensable if
workplace EEs can leave premises or use time for
- All time that EE has been suffered or permitted to work own interest
c) Compensable Time X: PI/BO <=20 min
Normal - GR: 8H/5D/1W Idle Time - GR: EE need not leave premises and
Hours X: Health personnel (8H/6D) enough to leave station/spot
Compresse - 48H/<6D; 8-12H workdays Travel Time - GR: Home-Work-Home travel not
 compensable - Interval: 2/M
X1: Emergency b) Coverage
X2: Done through a conveyance by ER - All establishments w/c collect SC such as: hotels/resto/night
X3: Under vexing/dangerous clubs/casino/bars etc
circumstances - GR: All EEs
X4: Under supervision/control by ER o X: Managerial EEs
Commuting Time - GR: not compensable
X: for benefit of ER and not merely b) Wages
incidental  Remuneration/earnings:
Waiting Time - Coffee breaks/rest periods <= 20 min o Capable of being expressed in terms of money
are compensable o Paid by ER under contract for work done or to be done
On Call compensable if: o In whatever method of calculation
1) Required to remain on call Coverage
2) Cannot use time effectively - GR: All EEs
Rest Periods o X1: Farm tenancy/leasehold
- Period: >= 24H after every 6D o X2: Kasambahay/family drivers
- GR: Preference of ER o X3: Homeworkers
o X: Preference of EE based on religious grounds o X4: Cottage industries
o If EE’s choice results in ER’s prejudice = 2D/M rest day o X5: Cooperatives
- GR: No Compulsory Work on RD Wage v. Salary / Facilities v. Supplements
o X1: Calamity Wage Salary
o X2: Work on machine/equipment to avoid serious loss - Skilled/unskilled manual - White collar workers
o X3: Avoid loss of perishable goods labor - Subject to
o X4: Nature of work requires - Not subject to execution/attachment
o X5: Abnormal pressure of work execution/attachment
o X6: Analogous except for debts
a) Rate Facilities Supplements
- 130%: work on rest day - Articles/services/items of - Extra remuneration /
- 169%: OT on rest day expense special benefit received
b) Coverage - Excludes tools of trade for by EE above ordinary
- GR: All EEs benefit of ER wage
o X1: Gov’t EEs - Benefit of EE and family - Benefit of ER
o X2: Managerial EEs - Part of wage and - Not part of wage and not
o X3: Kasambahay deductible deductible
o X4: Field Personnel - Reqs to deduct facilities:
o X5: Workers by Result 1) Proof that facilities are customarily furnished
Service Charge 2) EE accepts in writing
a) Rate 3) Charged at reasonable value
- 100% distributed equally to EEs
Bonus 11) Rizal Day
 Act of gratuity on the part of the ER; not enforceable - No distinction between Muslims/non-Muslims for payment of
- Exception: benefits for Muslim holidays
o Promised by ER and agreed upon - Entitled to Successive if:
o Fixed amount 1) Worked day before 1st Holiday or
o Long and regular practice on ER’s part 2) Works on 1st Holiday
13th Month Pay - Entitled to HP when NW/RD precedes if: Worked day before
a) Coverage NW/RD
- GR: All ERs to pay RAF EEs - Entitled to HP if on LOA if:
o X1: Gov’t unless private subsidiary 1) With pay
o X2: Those already paying 13M pay or equivalent 2) Without pay if works on RH
o X3: Commission/Boundary/Task (X: by result) c) Rates
b) Min. Req: 1M service (paid Dec. 24*) No work on holiday 100% OT on RH 260% x # hrs
c) Amount: 1/12 of total basic salary Work on RH 200% OT on 169% x # hrs
- GR: COLA integrated + work only SH/RD
o X: company practice includes other benefits Work on SH/RD 130% OT on RH + 338% x # hrs
Holiday Pay RD
a) Coverage Work on RH + RD 260% OT on SH + 195% x # hrs
- GR: all EEs RD
o X1: Gov’t Work on SH + RD 150% Double 200% no work /
o X2: Managerial EEs Holiday 300% worked
o X3: Supervisory EEs Principles
o X4: Kasambahay/Personal Service  No work, no pay
o X5: Field Personnel and other EEs unsupervised o X: EE was ready/able but ER prevents him illegally
o and those by result  Equal pay for equal work: Same pay for similarly situated EEs
o X6: RS < 10 EEs  Fair wage for fair work
b) Enumeration o X: EE was ready/able but ER prevents him illegally
Regular Special  Non-diminution of benefits
Regular: Special: 1) Ripened company policy
1) New Year’s Day 1) Ninoy Aquino 2) Consistent and deliberate practice
2) Maundy Thursday 2) All Saints 3) Not due to error in application of law
3) Good Friday 3) Immaculate Conception 4) Done unilaterally by ER
4) Araw ng Kagitingan 4) Last day of the year Minimum Wage
5) Labor Day a) By hours worked
6) Independence Day b) By results
7) Eid’ Fitr/Adha - DOLE regulates; basis is performance of ordinary worker of
8) National Heroes Day minimum skill/ability
9) Bonifacio Day Payment of Wages
10) Christmas Day a) Mode
 - GR: legal tender only 2) Eliminates intentional quantitative differences in wage/salary rates
o X: check/money order if customary or necessary 3) Obliterates distinctions in wage structure based on skills/tenure etc.
b) Time: 4) Between and among EE groups in an establishment
- 2x / month; if delayed by FM, must be <1M 5) Distortion exists in the same region
c) Place
- GR: at/near workplace c) Leaves
o X: Peace/order, emergencies, free transpo to EEs Service Incentive Leave (5D)
- No payment for EEs in casinos/bars/clubs unless they work there - 1Y service (unless contract provides/working days < 12M)
d) Person to pay: - Can be converted to cash
- GR: EE Solo Parent Leave (7D)
o X: EE’s family/lawful rep/heirs of EE - Qualify as Solo Parent
Prohibitions (IW2D2-RF) - 1Y service
a) Interference in Disposal - Notified ER
b) Wage Deduction - Present Solo Parent ID
X: Insurance, Union Dues, Authorized by law, Payment to 3P Maternity Leave
c) Withholding of Wages (105D childbirth/60D miscarriage/emergency termination)
X: Insurance, Union Dues, Authorized by law - Can add 30D additional w/o pay
d) Deduction to ensure ER-EE - Can add 15D additional w/ pay if solo parent
e) Deposits for Loss/Damage - Regardless of frequency
X: Recognized/Necessary practice in trade/business - Can be availed of 15D after termination
- Reqs for deduction: - May allocate up to 7D to child’s father (or partner/relative)
1) Reasonable opportunity for EE to show cause - Bars recovery to sickness benefits under SSS law
2) Liability clearly shown Paternity Leave (7D)
3) Amount is fair and reasonable - Married male
4) <= 20% of weekly pay - Cohabiting w/ spouse at time of delivery/miscarriage
f) Retaliatory Measures - EE at time of delivery
g) False Reporting - Filed for application
Wage Determination - Wife gave birth or suffered miscarriage
 Wage Order: Order by RTWPB that sets MW for every region - First 4 deliveries
- Effective 15D after complete publication - Non-convertible to cash
- Public hearing is required Gynecological Leave (2M)
- 12M before it can be appealed - Rendered >= 6M continuous service 12M prior to surgery
o X: law/supervening conditions - Filed application
- Appeal does not stay WO unless w/ surety bond - Undergone surgery for gynecological disorders as certified by
Methods of Fixing: competent physician
1) Floor Wage: adds to previous MW - 2M/1Y
2) Salary Ceiling: all wages under a certain wage increases to that Battered Woman Leave (10D)
amount - Victim of VAWC (sexual/dating partner): Physical, Emotional,
 Wage Distortion: Psychological, Economic
1) Increase in prescribed wage rates through WO
 - Present barangay certification to ER - Highly technical industries
- Non-cumulative/convertible to cash - Max 6M
- Occupation endorsed by tripartite body and approved by DOLE
d) Sexual Harassment - No commitment to employ afterwards
 Work-Related SH is made as a condition for: - >= 75% of MW
1) Employment - 50% of training expenses can be deducted from taxable income
2) Favorable conditions of ER (max 10%)
3) Not discriminating/diminishing opportunities - Educ reqs may be waived by ER
- As a result: Impair rights/Hostile environment - May not pay if required by school/curriculum
Anti-Sexual Harassment Act  Learnership Agreement: Contract wherein persons are hired as
 Work/Education/Training (WET) SH: trainees in semi-skilled and other industrial occupations
1) Demanding / requesting / requiring any sexual favor - Non-apprenticeable
2) By any person having authority, influence, or moral ascendancy - Max 3M
(AIM) over another - >= 75% of MW
3) WoN these are accepted - Commitment to employ after if EE decides
 Gender-based Sexual Harassment: Unwelcome sexual - Subject to inspection of SOLE
requests/demands/advances for favors done through any - If dismissed w/in 2M w/o JC = regular EE
communication w/ a detrimental effect on conditions of person - No deduction from taxable income
Duties and Liabilities of Employers Disabled Workers
ASHA Safe Spaces Act  Disabled Person: suffering from restriction of abilities as a
Duty of ER: Duty of ER: result of physical/mental/sensory impairment to perform an
- Prevent commission of - Disseminate SSA in activity w/in the range considered normal
acts workplace - For employment if qualified, full MW, reserved contractual
- Lay down dispute - Provide measures to positions
resolution/settlement prevent SH - No discrimination as to: Job application, compensation, training,
- Provide code of conduct hiring/promotion
- Create internal 1) 25% deduction from gross income of total amount paid as
investigation mechanism salary/wages to disabled persons
Liability of ER: Liability of ER: - Present proof to DOLE
- Failure to immediately act - Non-implementation of - Regular EEs & A/L
- Damages duties 2) 50% of direct costs from net taxable income for
- Failure to immediately act improvements/facilities
- Damages Gender-Based
- Unlawful to discriminate in terms/conditions based solely on
e) Special Group of Employees account of sex
Apprentices/Learners - GR: unlawful to stipulate against marriage
 Apprenticeship: Contract wherein a prospective ER binds X: BFOQ
himself to train an apprentice who accepts the terms for a - Qualification is reasonably related to essential operation of job
recognized apprenticeable occupation - Factual basis to believe that all persons w/ it would be able to
properly perform the job
 - Not allowed: discharge due to pregnancy, wedlock, refusal to - Need not pay HW if not returned
readmit - ER liable w/ contractor if HW not paid
- w/o compensation in any night club etc. under ER control = EE Solo Parents
Minors - Flexible work sched
- GR: Children < 15 shall not be employed Night Workers
X1: Under supervision of parent and only fam members  Nightworker: Person whose work requires substantial # of hours
X2: Participation in public entertainment/information of night work w/c exceed a specified limit (10pm-6am; 7
- DOLE permit required consecutive hrs)
- Must be non-hazardous work for employment of Children 15 <= - Free health assessment
x < 18 - Mandatory facilities
Working Hours: - May request transfer due to health reasons
a) < 15: 4H daily / 20H weekly - Women may request transfer or extend ML
b) 15-18: 8H daily / 40H weekly Migrant Workers
Night: Repatriation:
a) < 15: No work from 8pm-6am - Costs advanced by ER/agency but may be reimbursed if
b) 15-18: No work from 10pm-6am termination was due to EE’s fault
Kasambahays - OWWA/DFA to advance costs if due to
 Kasambahay: any worker engaged in domestic work in a war/emergencies/calamities subject to reimbursement by ER
household exclusively for the personal comfort of the ER and Security Guards
his family - Entitled to Labor Standards, Retirement, SSS, SoT, SO/CB
Rights: - PNP exam required
1) MW - Must receive MW
2) Privacy - No deductions*
3) Communication
4) Educ/Training D. Post-Employment
5) Social Benefits (SSS/PhilHealth/Pag-Ibig) Employer-Employee Relationship
6) Leave Benefits (SIL) a) Four-Fold Test
Termination: 1) Selection/Engagement
- By DH: VICA-DV 2) Payment
- By ER: GAS-FC-DV 3) Dismissal
- DH leaving w/o justification: unpaid salary and deployment 4) Control (most important)
expenses (<6M) forfeited b) Economic Dependence Test
Homeworkers 1) Control
 Industrial Homework: system of production under which work 2) Economic realities w/in
for an ER/contractor is carried out by a HW at his/her home Contracting/Subcontracting
Options:  Contracting/Subcontracting: Arrangement wherein the principal
1) Return agrees to farm out to a contractor the performance or completion of
2) Rebuy a specific job/work
Liability of ER: - w/in a definite period of time
- May ask HW to redo if improperly done
 - WoN in the premises of the principal e) Seasonal
a) Legitimate Subcontracting 1) Work/service performed are seasonal in nature
1) Contractor w/ distinct and independent business 2) Employment is for the duration of the season
2) Substantial capital - Repeated rehiring = “Regular Seasonal” EE
a. Form of tools/equipment/machineries f) Fixed-Term
b. 5M paid-up capital stocks/shares or 5M net worth 1) Day certain for commencement/termination
3) No direct control from principal 2) Consented to voluntarily by both parties
4) Compliance w/ labor laws 3) ER-EE dealt w/ each other on more or less equal footing
b) Labor-only Contracting - Repeated Rehiring = Regular EE
1) Solidary liability: P + C (also if unpaid wages) g) Probationary
2) C becomes the agent of P 1) Undergoes a trial period by ER not more than 6M*
3) EEs become regular under P 2) ER determines qualifications based on reasonable standards
- Trilateral Relationship 3) Reasonable standards are made known at the start
o Principal: Contractual w/ C (Service Agreement) - Terminated for failure to qualify or JAC
o Contractor: ER-EE w/ EE (Employment Contract) & - No standards made known/EE qualifies = Regular EE
Contractual w/ P (Service Agreement) - X to 6M period: teachers, apprenticeship, liberality of ER,
o Employee: ER-EE w/ C (Employment Contract) agreement (TALA)
- Not applicable to: o Teachers: Full-time/3Y consecutive/Satisfactory
o IT enabled services
o Construction industry licensed by PCAB Termination (Substantive Due Process)
o Private security industry a) By ER: Just Causes (GAS-FC)
o NCC and other laws Serious Misconduct + Grave in Character + Makes EE unfit to
Kinds of Employment Misconduct: continue + Related to duties
a) Regular Willful Lawful/reasonable order made known + Disobedience +
1) Engaged to perform activities usually necessary and desirable Disobedience Willful/Intentional + Related to duties
2) In the usual business or trade of the ER :
b) Casual Gross and Neglect of duty + Gross and habitual in character
1) Work/service is merely incidental to business or trade of ER Habitual
2) For a definite period made known at the start Neglect:
- 1Y service doing the activity + Existence of activity = Regular Fraud/Willful Act / omission / concealment + Breach of legal duty /
c) Contractual Breach of trust / confidence + Against ER/rep + Justifies loss of
1) Governed by contracts Trust: trust/confidence + Related to duties
2) Usually for a fixed period of time Commission Act/omission punished by law + Against person of
d) Project of Crime: ER/immediate family/rep
1) For a specific project/undertaking that is distinct and w/in or Analogous Similar to JC + Voluntary/willful
outside of ER’s business Causes: - Ex. Abandonment: Unexplained absence +
2) Scope and duration determined and made known at the start Intention to sever
- EE may render services to other ER while not employed - Ex. Immorality: Standard of morality = secular
- Repeated rehiring = Regular EE (if the tasks are b) By ER: Authorized Causes (IR2C)
necessary/indispensable to ER’s business) Installation of Introduction of machinery/equipment etc + Valid
 Labor-Saving Purposes + No other option + Done in GF + Fair and o JAC + PDP = Valid + no liability
Device: reasonable criteria in EE selection o No JAC + PDP = Invalid + Reinstatement/SP & BW
Redundancy: Superfluous positions/services + Excess of what is o No JAC + No PDP = Invalid + Reinstatement/SP & BW
reasonably demanded + Adequate proof of redundancy o Yes JAC + No PDP = Valid + Nominal Damages + SP (if
+ Done in GF + Reasonable criteria in EE selection AC)
Retrenchment Reasonably necessary + Losses are serious/substantial - Payment of Separation Pay
: and real/imminent + Sufficient proof + Done in GF + o ILSD/RED: 1M or 1M/1Y service
Reasonable criteria in EE selection o RET/CLO/DIS: 1M or 1/2M/1Y service (only if partial
Closure and Decision to close/cease operations + No other option + closure)
cessation: Notice served on EEs and DOLE 1M before + Done in Preventive Suspension
GF  Disciplinary measure for the protection of the company’s property
Disease: Disease cannot be cured w/in 6M even w/ proper pending investigation of any alleged malfeasance or misfeasance
treatment + Continued employment is prejudicial to committed by the employee
health of himself/EEs/ or prohibited + Certification by - <= 30D; may extend if paid during extension
competent public health authority - Not entitled to wages
Enforcement USC is applicable + Union is requesting for USC - Considered dismissal if not reinstated after 30D or suspension is
of USC in enforcement + Sufficient evidence indefinite
CBA: Illegal Dismissal
a) Kinds
c) By EE w/ notice to ER 1) No JAC: R/SP + BW
- 1M in advance if no JC 2) Constructive Dismissal (Ex. Bona fide suspension of work > 6M
d) By EE w/o notice to ER: Just Cause (I2CA) or Forced resignation)
1) Serious insult - Burden of Proof: ER
2) Inhumane and unbearable treatment - Degree: Substantial Evid
3) Commission of Crime - Liability of Officers:
4) Analogous Causes o Allegation of patently unlawful acts/ guilty of gross
Resignation Constructive Dismissal negligence
- Voluntary act of EE - Involuntary/forced act of o Proof of BF
- Personal reasons cannot EE b) Reliefs
be sacrificed in favor of - Due to harsh, hostile, 1) Reinstatement (Actual/Payroll)
exigency of service unfavorable conditions 2) Backwages
- Intention + Act 3) Damages (Nominal/Moral)
Termination (Procedural Due Process) 4) Separation Pay (AC/Strained Relations/EE opted)
a) Just Causes c) Floating Status
1) 1st Written Notice: causes/grounds for termination and directive 1) Bona fide suspension of operations <= 6M
for EE to explain (5D from notice) 2) Fulfillment of military/civic duty
2) Opportunity to be heard: hearing not necessary - Indicate desire to resume work w/in 1M from resumption of
3) 2nd Written Notice: findings and penalty of termination operations/relief from duty
b) Authorized Causes Retirement
- Notice to EE/DOLE 1M before termination
  Voluntary agreement by ER and EE where the EE after reaching a e) Bona Fide Occupational Qualifications: Reflects an inherent
certain age agrees to sever his employment quality reasonably necessary for satisfactory job performance
- Coverage: all EEs in private sector f) Post-Employment Restrictions
o X: CSC, those in retail/service/agri operations <=10 EEs - Reasonable and not greater than necessary to protect the
- Age of Retirement: employer’s legitimate business interests
o Compulsory retirement: 65Y g) Marriage between EEs of competitor ERs
o Optional retirement: >= 60Y + 5Y service
o Surface mine workers = 60Y compulsory / 50Y + 5Y F. Social Legislation
service optional SSS Law (20Y)
- Amount: 1/2M for every year of service Coverage Inclusions:
o Same for part-time if no retirement plan + 60Y and 5Y a) Compulsory:
service 1) EEs <= 60Y & their ERs + DH
- GR: Not taxable or liable to attachment 2) Self-employed persons
o X: payment of debts 3) Sea/land based OFWs <= 60Y
To avail of exemption: b) Voluntary:
1) Official/EE w/ 10Y service 1) Full-time housewives unless w/ other vocation
2) >= 50Y age 2) EEs (compulsory) w/ no realized income for 1M
3) Availed of only once 3) Self-employed (WoN compulsory) w/ no
4) Benefit plan approved by BIR realized income for 1M
Exclusions:
E. Management Prerogative 1) Services w/ no ER-EE rel
2) Employ of PHL gov’t
 Management Prerogative: Right of an ER to regulate all aspects of
3) Employ of foreign gov’t/IO (may enter into
employment
agreement to include EEs)
- Consti basis:
o Recognizes indispensable role of private sector Dependents Dependents:
- Spouse + child < 21Y, child > 21Y*, parent
o Recognizes right of labor to share in profit and right to
Beneficiaries:
reasonable returns
- Primary: spouse + children (LC/ILC 1/2)
- Limits:
- Secondary: only if primary is absent (parents)
o GF, no GAD, reasonable/lawful, conform w/ CBA
- Others: P/S absent (whomever designated)
a) Discipline Benefits 1) Monthly Pension
- Fair and Reasonable, commensurate to offense, does not curtail 2) Dependents’ Pension (D/PD/R)
SoT 3) Death (36M)
b) Transfer 4) Permanent Disability (36M, LSA)
- No diminution of SLR, no BF, not as form of punishment w/o 5) Retirement (120M, 65Y/60Y w/o employment,
cause LSA)
c) Bonus: gratuity or act of liberality which the recipient has no right 6) Funeral
to demand as a matter of right 7) Loan
d) Change of Working Hours 8) Sickness (M, notified ER, max 120D/1)
- GF, lawful 9) Maternity (3M, notified ER, first 4
 deliveries/miscarriages) occupation
10) Unemployment Insurance/Involuntary Sep (<= 3) Permanent Partial (depends): permanent partial
60Y, 36M, 1/3Y) loss of use of any part of the body
Death:
GSIS Law (4Y) 1) EE duly reported to system
Coverage Inclusions: 2) Death is work-related
1) Public sector EEs below 65Y 3) Death of EE reported to system
Exclusions: Employees Compulsory: ERs and their EEs <= 60Y
1) Members of AFP/PNP Compensation X: EE > 60Y paying contributions
2) Judiciary/ConComs and State - Entitled to medical benefits and rehab services
3) Contractual EEs w/ no ER-EE rel Insurance - PHL EEs abroad shall be covered
Dependents - Same as SSS except child < 18Y & LC = ILC Fund - Not liable for disability/death caused by EE’s
Benefits 1) Monthly Pension own negligence
2) Death (36M/5Y or 180M) POEA-SEC Injury/Disability:
3) Permanent Disability (36M/180M not due to own 1) Must be work-related
doing, not enjoying R benefits) 2) Existed during the term of the contract
4) Retirement (15Y service, 60Y age, not enjoying - Medical expenses (until repatriation), sickness
PD benefits) allowance, cost of medicine/transpo
5) Funeral (Active/separated, pensioner) Death:
6) Loan 1) Illness was work-related
7) Separation (60Y age + 3<x<15 Y service, below 2) Seafarer died during duration of his contract
60Y age + >=15Y service) - Double if death caused by warlike activity
8) Unemployment (1Y, abolished office/position) - Not payable if due to own seafarer’s
9) Survivorship negligence/fault
10) Temp. Disability (120D/1Y) Determination of Disability:
11) Life Insurance 1) CDP issues final medical assessment w/in 120D
Limited Portability Law from report
 Portability: refers to transfer of funds for the account/benefit of a 2) Failure + no justification = Permanent Total
worker who transfers from one system (GSIS-SSS) to another Disability
 Totalization: adding up the period of creditable services or 3) Failure + justification = extend to 240D
contributions under each of the Systems, for purposes of diagnostic period
eligibility and computation of benefits 4) Failure = Permanent Total Disability
- Must not qualify from both, in SSS, or in GSIS - CDP must issue final assessment and inform
seafarer
Disability and Death Benefits - GR: Mandatory post-employment medical
exam: 3 days* upon return
Labor Code Injury/Disability:
X: physical incapacity; no fault
1) Temporary Total (120D): <=120D of no gainful
occupation; up to 240D medical assistance Solo Parents and Kasambahay: See Labor Standards
2) Permanent Total (5Y): > 120D of no gainful Agrarian Relations
Concept  Agrarian Reform: redistribution of lands to
 farmers/regular farmworkers who are landless Insurance workers/NRC/>=21Y w/ capacity to pay
 Tenancy Relationship: juridical tie between Program 2) Indirect contributors: all others whose premiums
landlord and tenant w/ joint undertaking to are subsidized by the national gov’t; indigents,
cultivate the land under share/leasehold tenancy seniors, PWDs, SK officials, >=21Y w/ no
 Agricultural Tenancy: physical possession by a capacity to pay
person of land devoted to agriculture belonging
to, or legally possessed by another: G. Jurisdiction and Remedies
1) For the purpose of production through the labor a) Labor Arbiter
2) In consideration for a share of the harvest or a Jurisdiction
payment of a price certain 1) ULP
Reqs of Agri Tenancy: 2) Termination Disputes
1) Parties are LL/T 3) Terms and conditions of employment (ER-EE)
2) Subject = agri land 4) Damages (ER-EE)
3) Mutual consent 5) Money claims <= 5k w/o reinstatement or > 5k w/ or w/o
4) For agri production reinstatement
5) Personal cultivation by tenant/lessee - Not ER-EE = RTC
6) Sharing of harvests - CBA = VA
Rights Common to both (Leasehold/Share) 6) Wage Distortion
- Free to work elsewhere 7) Legality of S/L
- Provide any contributions for production 8) Enforcement of Compromise Agreements
- Demand a home suitable for dwelling LA RD
Farmworkers  Natural person who renders services for value as - Claim w/ reinstatement - ER-EE
an EE/laborer regardless of compensation - Claim > 5k w/ or w/o - Claim w/o reinstatement
scheme reinstatement + <= 5k
Types: Perfection of Appeal to NLRC
1) Regular - permanent; can own 1) Appeal w/in 10D
directly/collectively the lands 2) Grounds: GAD/fraud or coercion/Q of law/serious errors of fact
2) Seasonal - recurrent/periodic; no right to own 3) V/CNFS
3) Other - not both; can receive just share of fruits 4) Service of MoA
Universal Health Care 5) Posting of cash/surety bond by ER
Policy - Promote and protect the right to health of all - Reinstatement/execution pending appeal: immediately executory -
Filipinos and instill health consciousness among actual/payroll reinstatement
them b) National Labor and Relations Commission
Coverage - Every Filipino citizen Jurisdiction
- Different kinds of health services 1) EAJ over LA cases
(individual/population-based) 2) Certified cases from SOLE
- Population-based = funded by the gov’t - Certified cases: SOLE assumes jurisdiction over dispute likely
National 1) Direct contributors: those who have capacity to causing a S/L in an industry indispensable to national interest
Health pay premiums/self-earning/ER-EE rel/migrant o NLRC implements order
o Formulate terms and conditions of CBA
 3) Petitions for I/TRO - Initiated by: notice of request for prev med/conversion of notice of
- GR: Injunctions prohibited S/L
o X: NLRC based on prohibited acts g) Department of Labor and Employment Regional Directors
 Innocent Bystander Test: must show that one is entirely Jurisdiction
different/no connection to either party and its interest are totally 1) Enforcement of Labor Standards
foreign 2) Money Claims*
- Must allege substantial/irreparable injury to prop unavoidable 3) Voluntary Arbitration (as ex officio)
unless TRO is issued (20D) 4) Registration/cancellation of unions
c) Court of Appeals 5) Health and safety conditions
- Rule 65 (C/P/M) - 60D from notice 6) Visitorial and enforcement power
o C: GAD, no PSA Appeal
o P: GAD, no PSA 1) money claims: to NLRC w/in 10D from submission of last
o M: unlawful neglect/exclusion, no PSA pleading
d) Supreme Court 2) V/E power: to SOLE w/10D from receipt
- Rule 45 3) Registration/cancellation of unions: to BLR
e) Bureau of Labor Relations - Recovery/adjudicatory power: EEs, kasambahays employed in
Jurisdiction domestic/household services
BLR EOJ: h) Secretary of Labor and Employment
1) Inter/Intra-union conflicts Jurisdiction
2) Disputes/grievances from labor-management relations Original:
X: CBA provisions 1) Assumption of Jurisdiction
- Appeal to SOLE - SOLE may assume or certify to NLRC
BLR Dir EAJ: - Reqs:
1) Med-Arb decisions in inter/intra-union disputes 1) Existence of labor dispute leading to a S/L
2) Decisions of DOLE RD for reg/cancellation of unions 2) Industry indispensable to national interest
- Appeal to CA (R65) 3) Either party requests/SOLE determines
f) National Conciliation and Mediation Board - Effects:
Jurisdiction o Enjoins impending S/L
1) Collective Bargaining o Return to work/re-admission
2) Correction for Wage Distortion (Organized/Unorganized) 2) Visitorial Powers
 C/M: process where a 3rd person intervenes in a dispute to - Access to ER’s records/premises
reconcile differences - Power to issue compliance orders
Conciliation Mediation - Issuance of writ of execution
- Keeps parties - Assists parties to reach a 3) VA powers
calm/delivers messages settlement 4) Suspension of Termination
- Reqs:
- C/M proceedings may be pre-terminated; communication not
o May cause a serious labor dispute
evidence in NLRC
 Preventive Mediation: to remedy/prevent potential labor disputes o Termination is in implementation of a mass lay-off
subject of request for C/M by any party or NCMB 5) Appellate
Appellate:
 1) SOLE rep
2) Denial/cancellation by BLR of union reg May exercise May not Exercise
3) POEA 1) All EEs 1) Managerial
4) Med-arb decisions in CE X: Ambulant, Intermittent 2) Confidential: Relationship
Remedies + self-employed only for + Related to LabRel
- MR: 10D from receipt mutual aid and protection (Nature of Access)
- R65: to CA w/in 60D from receipt of denial 2) Gov’t EEs under corp 3) Non-Employees
i) Voluntary Arbitrator code 4) Members of Cooperative
Jurisdiction 3) Supervisory EEs 5) Int’l Orgs
1) Interpretation/implementation of CBA 4) Aliens with AEP 6) AFP/PNP/Firemen
2) Interpretation of company policies 5) Security Guards
3) Violations of CBA gross in character - Rationale for exclusion of confidential EEs: what is implied in a
4) ULP, BD & other disputes if parties agree statute is as much a part thereof as that which is expressed
5) Wage Distortions - GR: commingling/mixture of EEs outside BU = no cancellation
6) Productivity incentives program of union reg
- Condition to refer to VA as condition precedent: valid X: tainted w/ fraud and misrepresentation
- MR: 10D from receipt of VA’s decision Union Chartering
- Appeal: R43 to CA; 15D from denial of MR to CA 1) Independent Union: Legal personality through indep reg
How Appointed 2) Local Charter: Legal personality through registration w/ DOLE RO
1) Accredited by NCMB 3) Affiliate: IU affiliated w/ a NUF or a LC subsequently granted
2) Designated in CBA indep reg but did not disaffiliate
3) Chosen through selection process in CBA 4) National Union/Federation: >= 10 labor unions in an establishment
4) Authorized by SOLE upon written request by parties organized for CB or dealing w/ ER for terms and conditions of
j) Prescription employment
- Money claims: 3Y from time of CoA 5) Trade Union: Registered group of NUF
- Illegal Dismissal: 4Y from dismissal - Nature of Relationship
- ULP: 1Y from accrual of each ULP a) Member-Labor Union: fiduciary
- Offenses under LC: 3Y except ULP b) Labor Union-Federation: principal-agent
- Illegal Recruitment: Disaffiliation
o Simple: 5Y a) WoN allowed
o Econ Sabotage: 20Y - GR: Disaffiliation allowed
o Consti of NUF forbids
LABOR LAW 2 b) Period
- GR: Freedom period/60D immediately preceding CBA expiration
A. Right to Self-Organization o X: shift in alliance of majority of members of union prior
Scope c) Effect
- Right to form/join/assist labor orgs for collective bargaining - LC loses legal personality unless it registers
- Right to engage in lawful concerted activities - Does not affect CBA implementation/enforceability
- Right to Strike  Substitutionary Doctrine: EEs cannot revoke the validly executed
CB contract w/ their ER by simply changing their bargaining agent
 - LO/LC/NUF/ER when requested may file PCE
B. Bargaining Unit  Bystander Rule: In all cases, whether the PCE is filed by an ER or
 Group of EEs sharing mutual interests w/in a given ER unit a LLO, the ER shall not be considered a party
according to their specific occupational or geographical grouping o May only be notified/informed
w/in the unit o Must submit list of EEs
- Tests to determine constituency in appropriate BU: - UE: Cert. Election
1) Will of EEs (Globe Doctrine) - OE: file verified petition w/in freedom period + written consent of
2) Affinity and unity of EEs’ interest (Substantial Mutual Interests >= 25% of all EEs in ABU
Rule) d) Run-off Election
3) Prior CB history - Between labor unions w/ 2 highest # of votes
4) Employment Status - Elements:
5) Geography and Location 1) Valid Election (Double Majority)
- Benefits of CBA extend to all in the CBU even if not belonging to 2) 3 or more choices
same org/union 3) None of contending unions obtained majority of valid votes cast
o CBA excludes 4) No challenge/objection can change outcome
5) Total votes of all contending unions >= 50% of total votes cast
C. Bargaining Representative e) Re-run Election
 Bargaining rep: LO designated/selected by majority of EEs in an - Between labor unions w/ tied # of votes
appropriate collective BU to be the exclusive rep of the EEs for - Elements:
purposes of CB 1) Tie between two choices or
Methods of Determination 2) Failure of elections (# of votes cast is less than majority of
a) SEBA Certification eligible voters + no material challenged votes)
- UE & only 1 LLO and failure to complete reqs: Cert. Election
- UE & only 1 LLO and complete reqs: SEBA cert. D. Rights of Labor Organizations
- OE: Cert. Election Fees
b) Consent Election  Check-off: Process/device whereby the ER based on agreement w/
 Election voluntarily agreed upon by the parties w/ or w/o DOLE the union or prior authorization from EEs deducts union
intervention dues/agency fees from their wages and remits them directly to the
c) Certification Election union
 Process of determination through secret ballot of exclusive rep in - Jurisdiction to contest:
ABU for purposes of CB o BLR upon report of 30% of union members
- Bars to filing of PCE: o SOLE may inspect financial activities of LLO upon 20%
o 1Y Bar (SEBA/Certification/Consent/Run-off) written consent of total membership
o Deadlock Bar (CB agent is a party + Deadlock submitted  Special Assessments: Payments for a special purpose if for a
to conciliation/arbitration or subject of S/L) limited time
o Negotiation Bar (w/in 1Y after Cert. + GF negotiations) - Reqs for Check-off/Special Assessments:
o Contract Bar (Unexpired CBA + no challenge on rep 1) Authorization by majority of members of union at general
status of incumbent CB agent) membership meeting
- Must be part of BU 3M prior to filing of PCE to be able to vote 2) Secretary’s record of the minutes
3) Individual written authorization
  Agency Fees: Reasonable fees collected by a union from a non-  Any organization whose formation, (Sweetheart
union member from the same BU as a result of benefitting from the function or administration has been Contracts)
CBA assisted by any act defined as ULP 6) Illegal Exaction
 Union Dues: Payments to meet union’s general/current obligations 4) Contracting out (Featherbedding)
Collective Bargaining 5) Discrimination as to
 Negotiations towards a collective agreement terms/conditions (X: USC)
- Duty to bargain: Performance of a mutual obligation to meet and 6) Discrimination for testimony
convene promptly and expeditiously in GF 7) Violation of duty to CB
o Possession + Proof of majority status + Demand to CB 8) Violation of CBA (Gross)
- Blue Sky Bargaining v. Surface Bargaining 9) Attorney’s Fees (Sweetheart
Collective Bargaining Agreement Contracts)
Mandatory - Wages, Hours of Work, TCE,  Favorable to both ER and union at
Vacations/Holidays, Bonuses the expense of the EE
Permissive - Unilateral benefits extended by the ER Types  Closed Shop: Agreement where only union members may
Ratification - Majority of EEs in BU of be employed and, for the duration of the agreement,
- Non-ratification = not effective USC remains a member in good standing of a union
X: EEs received benefit  Maintenance of Membership Shop: Agreement where
- Failure to register = not a bar to PCE present and future EEs are not compelled to join the SEBA,
Effectivity 1) 1st ever: parties decide but once so joined, they must maintain their membership as
2) Renegotiated: a condition for continued employment until they are
- w/in 6M before expiry = date after expiry promoted or transferred out of the bargaining unit or the
- beyond 6M from expiry = parties decide agreement is terminated
 Hold Over Principle: econ provisions of CBA from  Union Shop: All new regular EEs are required to join the
expiry until new agreement is reached union within a certain period as a condition for their
- Econ provisions: 3Y | Rep status: 5Y continued employment
 Modified Union Shop: EEs who are not union members at
E. Unfair Labor Practices the time of signing the contract need not join the union, but
- GR: ER-EE req. all workers hired thereafter must join
o X: Yellow dog contracts  Agency Shop: Non-union members of the ABU assessed a
- Violate workers’ right to SO & to CBA observance reasonable fee equivalent to the dues and other fees paid by
Employers Labor Organizations members of the recognized collective bargaining agent, if
1) Interference/Restraint/Coercion 1) Restraint/Coercion such non-union members accept the benefits of the CBA
2) Yellow Dog Contracts 2) Discrimination as
 To require as a condition of to terms/conditions
employment that a person or an EE 3) Violation of duty
shall not join a labor organization or to CB F. Peaceful Concerted Activities
shall withdraw from one to which he 4) Violation of CBA a) By Labor Organization
belongs (Gross) - One undertaken by >=2 EEs to improve TCE
3) Company Union 5) Attorney’s Fees
 Strike: temporary stoppage of work through concerted action of EEs as 3) Cooling off period (15:ULP / 30:BD / none: union busting)
a result of a labor/industrial dispute 4) Notice of S/L vote to NCMB 1D before
- ER-EE not terminated during lawful strike 5) S/L vote (majority of BU/BOD)
- No payment of wages during lawful strike 6) Send vote results to NCMB
- No S/L clause valid for ECON strikes 7) 7D waiting period
- GF strikes allowed but procedure followed - Strike vote and sending of report to NCMB can happen during
How committed cooling off period
1) Slowdown: EEs w/o complete stoppage of work slow down their Prohibited Activities
performance of duties/functions a) For everyone (RABOT)
2) Wildcat: declared and staged w/o filing required notice of strike - Resist SOLE assumption
and w/o majority approval from bargaining agent - Acts of violence
3) Sit-down: EEs take over possession of prop and cease production / - Blocking pathway
refuse access to owners - Obstructing thoroughfares
4) Sympathetic: striking workers have no demands but make known - Threatening non-striking EEs
cause of EEs in other establishments b) For ER
5) Mass Leave: collective abandonment/boycott of EEs - Employ strike-breaker
Termination from Strikes c) For police
Lawful Strike: - Replace strikers
- M/O: illegal acts Assumption of Jurisdiction by SOLE
Illegal Strike: (See notes on SOLE jurisdiction)
- M: illegal acts
- O: participation
Improved Offer Balloting:
1) Regional branch of NCMB
2) 30D after strike started
3) Referendum for improved offer of ER
4) Majority of union members must accept
 Picket: marching to and fro at the premises of the ER usually w/
signs/placards to raise awareness in a labor dispute
- Libel laws do not apply
- Legal even in the absence of ER-EE
b) By Employer
 Lockout: temporary refusal of ER to furnish work due to
labor/industrial dispute
Substantive Reqs for S/L:
1) Bargaining Deadlock
2) ULP
Procedural Reqs:
1) Attempt to bargain
2) Notice of S/L to DOLE/ER/SEBA