Labor Laws.pdf

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5sn 8e 8 @ollege f Asb U , - , 4 j

2011CENTRALIZEDAROPERATIONS

CHAPTER . GENERALPROVISIONS

ART.1: NAMEOFTHE DECREE

laOor CoAe of the Philippines (PD 442' as

amended)

Labcr1 Exertion by human beings of physical or

mental efforts, or both' towards the

productionof goodsand seMces2. Also means that sec{or or group In a-.

society,witich derives ts livelihood.hiefly

from rendition of worK or serylces .lnexchange for compensatio - - .Ynd"rmanagerial irection Mendoza, 001 '

ART. 2: DATEOF EFFECTIVITY

The Labor Code took effect on November 1'

1974 (six months after its promulgationon

May1, 1974).

Labor Legislation - consists of statutes'

iegutationJ and jurisprudencegoverning the

reiations between capital and labor, by

oroviding for certain employment standards

ind a legal framework for negotlailng'

aOjustinganil' administering hose standards

an-d ther ncidentsof employment'

Note: Labor standards laws and labor

relations laws are NOT mutually exclusive;

they comPlementeach other'

Labor Law - The law governinghe rightsand

Juties of employersand employees, frst withrespect to

'theterms and conditions of

em-ptoyment, nd second' with respect.lo the

labbr'

disputes arising from collective

bargaining respecting .such terms ancl

conditions.

Itsmaior divisiqts in(udQ,' , . 'r " '

1. The Law on LaborStandards

2. The Law on LaborRelations

Note: Although he distinctionbeWeen labor

J"naaros ant labor relations is useful for

"t"O"ti"purposes,hey in realityoverlap'For

instance, he grievancemachinery s a laDor

reiations matter Outvery often the subject of

the complaint is labor standards sucn as

unpaiO vertimework or a disciplinary ction'

(Azucena,2007) 4'

The Law on Labor Standards - Deals with

the minimumstandardsas to wages' hours of

work and other terms dnd conditions ofempioymenthat employersmustprovide heir

emPloYees.

The Law on Labor Relations - Defines the

slatus, rights and duties as well as the

iniiit,riionir mechanisms that gover the

inOiviOuaf nd' collec-tiventeractionsbetween

-' emPloYers, emPtoYees and their

representatives.

Note: Social legislation s broader in scope

inan tauor legisiationbecauseall laborlaws

"i" "*ilr169islationsbut not all social

legislbtions re labor aws'

EXECUTIVECOMMITIEE:EZEKIELosHUA VILLENAoverall chairperson,MINISTERMcxsES.DU chairperson or. academ'rcs'DJoANtvlEJoMAREJUNASA

chairperson or hotet operations,MARTE ICAELA rA ANA ;;.h;t;;"'fot,t',fgT: tutruretu MAVERICKUMACDERke'

chairpersonor secretaria JAcXti 1OUUt tUC vice-cnairpersoii- t"I*"' bteHR lfeH fURZOt'tvice'chairpersonor edp' JASSEN

nnip-riGi"i.*"tt"irperson

for' logistics

SUBJECTCOTUMITIEE

HAROLD HRISflAN ALLEDOubjectchak,AYLAHERAZADEALENDABssistant ubject(hair' PINKYVELOSOdp,NEOVALERIOabor

slndards,vrRRruesre*nr*oi6oir?l.ui, ,.r"ii""', ooHnn nmcrs YLADEocialesbhtion

MEMBERS:ii.;r-it'ii" oroa,Kado Diatogo va"*: Gyi.li,-lle toleen Llmblno,. KarlgnPambid' Josecarlos Torres'RamaYanaSaidamen'Josl

AngetoDaviti,FomilleDeannelagasca,Raynanlarosa l.' -'r :'



iTi':li:,,,4:tlllx:fflgTlr"Txi^. undtr Lahr Standards (TReSH)

'. K'gnr ro secuflty oflenurez Rtght to Egcerve a tiv ng wageJ. < rg1 10 Share r l the Funs or

proouc0on, and4. Righr to work under t l umare

@ndttons

B Under Labor Rel.tions {OCEp)1 Rtght to grganrze themset;esz. Rtght to gomucl co,lectve bargaintng

_ot negotidion with management:

. r. Rtght to Engage il peacefut @Dcened

_ac[vtr6 including $rke, and

4. Rtght tO padjctpateIn policy ard

sec6ton,making ffocses

Constitutional MahdatesL A t1 .X l i l ,Sec .3

The State shall effordtutl protedion rolaw, tocal and oversees, organiz& and

:f9rSaDrtrand pfomote fuil emdoyment

.tro-eqLat;tyoi enptoyment opponjn,Lies

It shatl guarantee il.e nghts of ail workeEro.sdlorganizdion, colledtve bdrg;,nhgano negotiations and peaceful co;ededaqtvttes, including the rrgnt to stike Inaeoroance witn law They shail beemtitd to securiiy of tenuie, humane

:?lotr'9n:.ol wd end a r.ving mqe.

rney snajtal$ padicipate in F]tq a-ndoectston_m€klng proce$ affed;ng thetr

ngnF and benerits as may be provided by

Th€ Sla tr snd l ororo le tne p r inc rp ,e o ls ra .eo resoons b i t i r / oeMepr worke rs a remotoyers dnd lhe D,.ferenrial use otvotunlary -odes .1

sefl, ng dtrputFs,Inc jud ,ng Lonc , t i do^ dno sna . t eT lo .cernetr

ru tL8 ' conprar ce I l e rewth to tos te rInoustflat peace

The State shall regutate the relaronsDeMee. wo kers and e-p,oyetsrecognzr.g the rgnt o, tabor to its .u9shafe in ihe fruits of production and thenght of enterprises to fea$nable returnsor Inve$ments, and to expansion arogroMh

2. Art. il, Sec. IThe Sta te sna t p ,o ro te a jus l Jnd

oynamtc soc ia l o rde , tha l M l ,e rcu re lneprospeittv ard ndeFnde-ce of tne .aton

:lo ll:"h" peoo,e ici povedv rhrough

pot ctes thai prov,oe adequale socrals.sve, ororde fLI enployren]. a risrngsrandard ot l j v i rg ard .np roveo

qLal i lv o lrrc tor at l

3 . A r t . l , Sec .18

The Stde d1-as tabo r .s a pnmary soda leco lom c to .ce t s fa , ' o ro ted tne nqnrsor workers :nd promote therr welfare

4 Art ilt. Sec. IThe . r .gn l o i tFe reopte , i nc ,ud tng thcse

e-mployed i lhe oublc ard privae iectoreIO torf ultons assoctalions, o. societc5ror purposes not corFary to taw shalt notoe abndgd

5. Art.|il, sec.18(2)

No hvolunlary seryhLde In any form shd|ext$ excepl as : puntshmert for a crjnrewn-ereot.be pady shalt have been duty

6. Art. Xil, Sec. 12



5 r Behs Co[eq. of llb

201 1 CENTRALIZEDBAR OPERATIONS

Rd# kws'

Ciil hde

a Art. 1700. the rclation beMen capnal

and labor are not merely @nt€dual.

They are so imprFsd with PublicinterEt that labor conhas mus yield

to the common god. Therefole, such

contracts are ilbjed to the special

lare on labol unions, collective

hrgaining, ddkes and lockouts

cl6ed shop, wages, wolking

conditions, hours of labor and similar

subjeds.

b M. 1701. Neither capnal nor labor

shall ad opprsively againS the

oiher, o|mpak the inter6t ot

@nwnience of the public

c. Art. fi02:1^ €se of doubt, all labol

legrsrailore a.d all labor @nirads

shall te con*rud in favor of thesafety and decent livng fot lhe

lamrer.

d Art. 1703. No contad which

pradicallY amounts to involuntary

srvitude, under any guise

whatsoever, shall be valid-

2 RevisedPenalCode

Art.2N. Famation, naintenance and

prohibitiil of cmbinatiffi of capital d

labor through idence or threats. - fhe

penalty of areSo mayo. and a fine not

exceeding.3oo pees shall be impo*d

upon any pereon who, for the pulP6e oi

orgarizing, maintarnrng or prevening

coalitions of capital or labor, stiike d

labotere or lock-out of empoye6, sha

employ violence or threab in such a

degree as to @mpd or for€ the labre6

or employers in the lree and legal exercise

of thef indu*ry or wo*, ifthe ad shall not

conditde a hore serious ofiense in

acmrdance wih the prcMsions of this

Code.

3 Specia/Laws

a. SSS Law

b. GSls Law

e\ Ndflohal HeAlh'tNrandAct:F$' ,1

d. Pdehit L€ve Ad

. e. Rdirement Pay Law

I Home Mutual Development Fund Lil

g Anl-Sexual Harassmeil Ac l

h. Anilchild hbr Ad

i . 1 3 ' M o n t h P a y L i lj. Migrant Workers and Overeeas

FillpinosAdol 1995 (R-A No. 8042)

k. Comprehensive Agrarian Reform Li l

L Magna Cada lor Public Health

WorkeE -

m. Umfred Podability Lil{RA 7699)

S@ial Just@ as the Aim: Social justice is

nefrher communism, nor d6porsm, nor

domism nor anarchy, but the huhaniaiion d

law and the equaliation of social and

economic forc6 by the State so that judice rn

its ratonal and obiectively secular conceFlon

mav d least be apploximatd Social justce

me;m the PROMOTION OF ilE WELFARE

of al, peope, tne adoptlon by the governmenl

of feasures €'dlaled to ensure economK

$abiltY ol all the comPoreil elements of lhe

society through the malnlenance or prooer

economrc ano soc ia l eqJ ' l i bnJr In hE

intetrelatons of the tembG oI the

@mmunitv consttutionaly thtough he

adoption of measures legally justifiable or

enr*onsfdionally, through the exerclse of

pwere undeiylng the existenc ol. a

oovernmeils, on lh; tme-honord princlple d

aalus papuli est suptffia le, lcatatangv

Wlliams. No.47no, D@b*2' 1940)

Police Power as the basis: n is the power or

the Governmeil to enad law wthln

@nditutional linits, to ptomde the order,_sfew.

health, morals and general welfare of

socleiy (People v Vqa, No 45748 AM| 5

1939)

Welfare Legislation - Provo6 'or lhe

minimum eco-nonic security of the worKer and

his femilv in case of loss of earnings due to

death, oad age, disability, dismissal injury or

It rs distnguisned from social legislaton ir

that welhre statdes are prdicated upon

employeGemployee relatiorehip; Mereas he



LABOR A.W

LABOR TANDARDS

ART.3: DECLARATION F BAStc PoLIcY

The Stateshall: APERA)1. Afford protectiono labor,2. Promote ull employment;3. lnsure equal work opportunities

regardless f sex,ageor creed;4. legulate the relationsbetween workers

and employers; nd5. Assurethe rightof workers o: (JSSC)

a. iust and humaneconditions f woik:b. gelf-organization;

. c. gecurityof tenure;and: d. gollectivebargaining.

. lt is a sharedresponsibility imedat aconstitutional balance betweenprotection to labor and preventoppression o capital

. The protectionof the rightsof workerscannot justify disregard of relevantfacts in the constructionof the text andapplicable ules n order o arriveat a

disposition in favor an employee(Philippine Airlines, lnc. vs. NLRC.201 SCRA687)

ART. 4: CONSTRUCTION N FAVOR oFLABORr Construed n favorof labor F THERE S A

DOUBTas to the meaningof tne legalandcontractual provision. lf the provision isclear and unambiguous,t mustbe appliedin accordance with its express i6rms(Meratcov. NLRC,GR No. T8T63,Juty 12,

1eeq.o HOWEVER,not all labor disputesshouldbe resolvedin favor of labor.The law aGo

,recognizes hat managementhas rightswhich are also entifled to respect

-and

enforcementn the interestof faii plav (Sf.Luke's Medical Center Employee'i n3s'ocv. NLRC,GR No. t62OS3,March 7, 2007).

. - f ) , . { . i - ' , i t . , ' ' i r , : . , . : r ' , 2 , , 1 " ' ; . . . . . . . . 1 . .

Reasons for Affording Greaterprotectionro Empbyees1. There s greater upply

handemand orlabor;2. In accordanceith he doctrinehat hose

whohave ess n lifeshould ive more nlaw and

3. Theneed or employmenty aborcomesrom vltal,andevendesperateecessity

(Sanchez v. Harry Lyons Constructiontnc.,GR No.L-2779,Oclober 8,19ffi).

Extent of Protection to Labor: ., o anemployee who is abused either by theemployer r by the union eadership i theirrespective epresentatives.

ManagementRightsr Under the, doctrine of management

prerogative, every employer has theinherent ight o regulate,accdtding o hisown discretionand judgment, all aspectsof employment, including hiring, work

assignments,working methods, he time,place and manner of work, worksupervision,ransferof employees, ay_offof workers,and discipline,dismissal,andrecall of employees (Rurat Bank ofCantilan v. Julve, GR No. 169750.February27, 2N7).

The employerhas he right o: (CPSTR)1. Cbnductbusiness;2. lrescribe rules;.3. geled and hireemployees;

4. fransfer or dischargeemployees; nd5. Seturnof investment nd expansionof

business.,

o Managementprerogatives,however, aresubject o limitationsprovidedby (1) law,(2t contract or collective baigainingagreementsand (3) general principlesoffair play and justice (Mendoza v. RuralBank of Lucban, GR No. l\g21, Juty 7,

. 2004).

ART.5: RULESAND REGULATIONSr The rules and regulations ssued by the

R

#{*a_:fiep"e}glps, &

i"



$en #e s @ollegeAetn2011CENTRALIZEDAROPERATIONS

powers n the enforcement hereot (pASEl v.Drilon, GR No. 81958,June 30, 1988).

However,a rule or regulationpromulgatedbyan administrative ody in excess of its rule_

'naking authority is void. An administrativenterpretation which takes awav benefitsgranted in the lary is uttra viies (CBTCEmployees lJnion v. C/ave, GR No. L-495g2.January 7, 1986).

ART.6: APPLICABIL|TY

General Rule: The Code applies to all*orkers, whether agricultural or non_

agricultural, including employees in a3overnment corporation incorporated under::e corporation code (Seeu,d.S_-e_4$siounderAtt.244).

Exceptions: (cC-FICL)'. Governmentemployees;2 Employees of government Corpoiati6ns

createdby specialor originalchartdr Jucov. NLRC, GR No. 98107, August 18,1997);

3 Foreign. governments(JUSMAG_Philippines v. NLRC, GR.A/o. 10eB1S.

December15, 1994);1 lnternational Agencies {Lasco v.

UNRFNRE, GR Nos. 1OgOgU1Og17T.February 23, 1995). employees ofrntergovernmental or internationalorganizations SEAFDEC-AeD y. NLRC.GR No. 867V3,February 14, 1992);

: Qorporate officerc / Intra-corooratedisputeswhich fall under pD 902-4 andnow fall under the jurisdiction of the

RegularCourts pursuant o the SecuritiesRegulation Code (Nacpil v. lBC, GR No.144767,March21, 2O02);and

: Local water districts (Tanjay Water Districtv. Gabaton, GR Nos. 63742 and W3OO,17 Aprit 1989) except where NLRCjurisdiction is invoked (Zamboanga City,Water Distict v. Buat, GR No. 1143gg,May 27, 1994).

Agriculturalor Farnr.w6rker3 onb employed- an agricufturalor farm entdrprise ind=slgned to perform asks which are direcflv'e ated to the agricultural activities of th6

:-Dloyer, such as cultivation nd tillageof ther: d.airying, rowing and harvestingof any3;riculturaland horticultural ommodities the-: sjng of

.livestock r poultry,and a4y activity:edormed by a farmer as an incident o or in:;: junctionwith such armingoperations.-êre

may be, in one employer, both3,:ricultural s well as industrialworkers,

lrlole: The Labor Code applieswith or withoutemployment relationship between thedisputants,depending on the kind of issue

inyolved. The presence or absence ofemployer-employee elationship is itself alabor law question (Azucena,2O07).

CHAPTER11. MANCIPATIONOF TENANTS

{P f, 27 As Amended By R.A. 6657,Cu'nprehensive Agrarian Reform Law A.K.AG€rl.; 't"Ra 9700 Comprehensive Agrarianfufi;,i|?? Program Ertension with Reforms

{Caq;er) Extended Carl with SomeAn:*ndments

*'

1 ,trrf ll, Sec.21

lf'e State shall promote comprehensiver:;'aldevelopment nd agrarian eform.

2 F.,' Xlll, Sec.4r:,e State shall, by law, undeitake anagrarian reform program founded on the

.' right of farmers and regular farmworkers,who are landless, to own direc-tly or

. cotlectively ne lands they till or, in thecase of other farmworkers, to receive aj';st share of the fruits thereof. To this end,the State shall encourageand undertake

the ust distribution f all agriculturalands,s,.ibject o sLtchprioritiesand reasonabler::iention limits as the Congress mayp.,:scribe, aking into account ecological,cevelopqrental,or equity considerations,r:rd subject to the paymgnt of just{:.r}mpensation.n determining retentionlimits, the State shall respect the rights ofsmall landowners.The State shall furtherprcvide incentives for voluntary land-snaring.

No.te: Share tenancy has been abolishedbv R.A. 3844, as amended by R.A. 6389,f*," beingcontrary o public policy,placingin its stead a leasehold system. lt markedthe movement towards the eventualcwn UnderArt.E, the



LABORLAW

LABOR TANDARDS

P.O.27v. CARL (R.A.665f) & CARPER

Privateagriculturallands primarilydevoted o rbeand cornundera s)tstem ofsharecrop orlease-tenanry,whetherclassified aslanded estateor not

privateagriculturallands includingother lands ofthe publicdomainsuitable foragricufture(SeediscusslonunderCARPER for

exclusrbns).

Landownermay retain anarea not morethan 7hectares ifsuchlandowner iscultivatingucharea or willnow cultivate t.

In no caseshall theretention y thelandownerexceed 5hectares.3 hectaresmaybe awarded oeaci child ofthe landowner,if he is (1) atleast 15 years

of age;and(2)aclually tillingthe land ordirectlymanaging thefarm.UnderCARPER,Provircial, cityand municipalgovemmentunits acquiringprivate

agriculturallands byexpropriationor othermodesof aiquisitionto be'used oracfual, directand exclusivepqblb...-.,'pUftGes''ttrattnot be subjectto the five (5)-hectare

retentionimit

Equivalento 21/2 times theaverageharvest of 3normal cropyearsimmediatelypreceding thepromulgationofP.D.27.

LandBankof thePhilippines(LBP) shall

compensatethe landownerin srrch mountas may beagreed uponby thelandowner ndthe DAR andl$P or as maybe finallydeterminedbythe court asjust

compensationforthe and.No tide to theland ownedbytenant-farmersunder P.D. 27shall beactually ssuedto a tenant-farmer unlessand until thetenant-farmerhas becomea

full-fledgedmember of a ulvrecognizedfarmefscooperatMe.Title o the andis nottansferableexcert byhereditarysuccession orto the

GovemmentnaccordancewithP.D.27.

Landsacqr,dredbybenefrciariesunder CARLmay not besold,transferred orconveyedor aperiod of 10

years excertthroughhereditarysuccession orwhen sold,transferred orconveyed totheGovemment,or to the LBP,or to. otherqualifiedbeneficiaies

for a periodof10years.



San SeUu@ollcge fLcb2011CENTRALIZEDAROPERATIONS

ART. 12: POLICY"OF THE STATE (Proa-FaC-ReSl)

1. To Promote and maintain a state of fullemployment hrough improvedmanpowertraining,allocation nd utilization;

2. To &gtect every citizen by securing forhim the best possible erms and conditionof employment;

3. To Facilitate a free choice of availableemploymentby persons seekingwork in

conformitywith the national nterest;4. To Facilitateand regulate he movement

of workers in conformityWith th'e'nationalinterest;

5. To Regulate the employment of aliens,including the establishment of aregistration nd/orpermitsystem,

6. To Strengthen the network of publicemployment offices and rationalize theparticipation of the private sector in therecruitment and placement of workers,locally

and overseas to serve nationaldevelopment bjectives; nd7. To lnsure careful selection of Filipino

workers or overseasemployment n orderto protect the good name of thePhil ippinesbroad.

TITLEONE:RECRUITMENT NDPLACEMENTOF WORKERS


ART.13:DEFINITIONS

Worker - any member of the labor force,whetheremployed r unemployed.

Recruitment and Plrcement - any act of(CETCHUP) canvassing, enli$ing,

lransporting, gontracting, hiring, gtilizing orprocuring workers, and includes (CRAP)gontract ,services, gefeJrals,.gdvprtising . o.rpromising for bmployment, ocally'or abroad,whether for profit or not; Provided, that any

person or entity which, in any nlanner, offersor promises for a fee employment to two ormore persons shall be deemed engaged inrecruitment nd placement.

Note: The numberof personsdealt with is notan essential ingredient of the act ofrecruitment and placement of workers. Theproviso merely creates a presumgion (Peoplev. Panis,GR No. L-5ffi74-77, July 11, 1986).

Elements of engaging in recruitment and

placement activities:

1. The complainanthad a distinct mpressionthat the accused had the power to send

complainant broad or work, and

2. The complainantwas convinced to part

with his money n order o be so employed

(People v. Goce, GR No.113161'August

29, 1995).

Private Fee Charging Employment Agency- any person or entity.. ngaged_

n the

recruitment nd placementof workers or a fee

which is charged, directly or indirectly, rom

the workersor emploYers r both.License - a document issued by the DOLE

authorizing a person or entity to. operate a

privateemploYment gency.

Private Recruitment Entlty - any person or.

associationengaged in the recruitment and

placement of workers, locally or overseas'

withoutcharging,directlyor indirectly,any fee

from heworKersor emPloYers.

Authority-

documentissued by DOLE

authorizinga person or association o engage

in recruitmentand placement activities as a

private ocru tmententitY.

Seaman - any person employed in a vessel

engaged n maritimenavigation.

Overseas Employment - employment of a

worker outside the Philippinescovered by a

valid contract. (POEA Rules and Regulations'Goveming

the Recruitment and Employment

of Land'Based Overseas Workers, Feb. 42002)

OverseasFilipino Worker- refers o a person

who is to be engaged, s engagedor hasbeen

engaged n a remuneratedactivity in a state.of*hich ne or she*iffiME&EMt on' board a

OI

Emigr



LABORLAW

LABOR TANDARDS

an immigrant isa or resident errnitor itsequivalentn hecountry fdestination.

ART.14:EMPLOYMENTROMOT|ONTo pursue its responsibility o promoteemployment pportunities,he DOLEcarriesout programs for local and overseasemployment.

Allocation of manpower resources isassigned o the:1. Eureauof Local EmploymentBLEFfor

localemployment2. PhilippineOverseasand Employment

Administration pOEA) _for overseasemployment)

. . . a . : : : . . : : , : . . ,.

. Note: RA tiT1g requires the establishment ofPublicEmployment eMce Office pESO) ncapital towns, cities anrte{hspstrategicareas

ART. 16: PRIVATERECRUITMENT

General Rule: No person or entitv shall, engage i.n he recruitmentand placementof

workers, ocallyand overseas.

lxcgptions:(p'-SpoC-MON)

1. lublic employment ffices:2. lrivate recruitmententities:

9 flrivate employnnentgencies;4. Shipping or manning agents or

representatives;5. POEA;6. Qonstruction contractors if authorized by

the DOLE and the Construction ndustryAuthority;

7. Members of the diplomatic corps (but

^ Il"S mustatsogo thiough POEA):8. Qther persons or entities

as may be^ authorizedby the DOLE Secretary;anO9. lame hirees.

ART.17: PoEA

The POEA has taken over he functionsof the

9l:p::" Emptoymento'everopmeni o;rd(OEDB).andationatseamen'gdarONSBI. ,

Prin-cipal unc{ions FpD)1. Eormulation, implementation, .

andmonitoringof overseas

employmentofFilipino orkers;2. lrotection of their rights to fair and^ equitablemploymentractices;nd3. Deployment f Filipinoworkers hrough

government_to€ovemmenthiring.

l9g_gl.tow Functircns (Rqubtic Act No.gr22)

ThePOEA halt:RF|1S) :

8

1. Regulateprivatesectorparticipationn therecruitmentand overseas placement of-workers through its licensing and

registrationsystem;2. lormulate and implement, n coordinationwith appropriateentities concerned,whennecessary, a system for promoting andmonitoring he overseas employment ofFilipinoworkers taking into consideration

. their welfareand the domesticmanpowerrequirements;

3. lnform migrant workers not only of theirrightsas workersbut alsoof thbir rightsashuman beings;

4. lnstruct and guide the workers how to

assert their rights and provide theavailable mechanisrn o redress violationof their rights;

5. In the recruitment and placement of. workers to Service the requirements e: .

trained and competent Filipino workers offoreign governments and theirinstrumentalities, and such otheremployers as public interest may require,deployonly o countries: BOG)a. where the Phil ippineshas concluded

pilateral labor agreements or

arrangements;b. QbseMng and/or complyingwith theinternational aws and standards formigrantworkers;

c. Guaranteeingo protect the rights ofFilipinomigrantworkers.

Adjudicatory Functions {AD)1. Administrativecases nvolvingviolationsof. licensing rules .and regulations and

registration of recruitment andemployment genciesor entities;and

2. Disciplinaryactioncases and other specialcases which are administrative incharacter, nvirlvingemployers,principals,

illpino migrant

i..t

8012)1 .



San #ets €ollegeof 1. b2011CENTRALIZEDAROPERATIONS

3. Gunrunning or pos.session of deadlyweapons;

4. landalism or destroying company

property;5. Violationof the laws and sacred practicesof the host countryand unjustifiedbreachof employment ontract;

6. Embezzlement f funds of the companyorfellow worker entrusted for delivery torelativesn he phil ippines;

7. Creating rouble at the worksite or in thevessel,

8. Qambling;9. lnitiating or joining a strike or work

stoppage where the laws of the hostcountryprohibit trikesor similaractions:10. Commission of Eelony punishable

'by,*-

Philippine aws or by the host countr ;11. Theftor robbery;12. prunkenness;13. Drug ,ddictionor possession r trafficking

of prohihritedrtgs; and14. Qesertion r abandonment.

Jurisdiction Transferred to the LaborArbiters

of the National Labor RelationsCommission (NLRC) Sec.10, R.A. gO42). Claims arising out of an employer_

employeerelationshipor by virtue of anylaw or contract nvolvi,ngFilipinoworkersfor overseasdeployment ncludingclaimsfor. actual, moral, exemplary and otherformsof damages.

. Venue: Money claims or claims fordamages .should be flled before theRegional Arbitrationbranch of the NLRCwhere

the complainant esides or wherethe principal office of therespondenVemployers situated, at theoption of the complainant (2005 NLRCRulesof Procedure).

Compromise Agreementr Sec. 10, R.A. ffi42 allows resolution by

compromise f cases iledwith the NLRC.. Any compromise/amicable etflement or

voluntary aggeement on monev claimsinclusive ,of

damages flnderithis.rseaionshall be paid within thirty (30) days fromapproval of the setflement by theappropriateauthority. (Secfrbn'1A of RA8042 as amendedby RA 1m22)

Ruleon PrematureTermination of Contract1. lf terminatedon groundsother than those

that are lawfuland valid before he agreedtermination ate, he employerwill pai theworkers their salariesconespondin t6 tneunexpired portion

of the emplovmentcontract (Vinta Maritime Co. v. ruinb. OnNo. 113911,January'23, 199e.

2. lf the date of employment terminationoccurredon or after July 15, 1995, he lawto apply is R. A. 8M2 Under Sec. 70, a

worker dismissed from overseasemployment without just, valid orauthorized cause is entitled to fullreimbursementof his placement ee Wthinterestal 12o/o erannum.

Note: The clause "or for three months foreveryyearof he unexpirederm,whicheversless" in the 5- oar. of Sec. 10 of RA No. 8042is declared unconstitutionaf'Oy tne SC forviolating Sec. 1, Att. lll of the Constitution,

Sec. 18, Art. ll and Sec. 3, Art. Xlll, whichaccordall membersof the laborsector,without

:. ',,.:"distinction s to place of deployment, fullprotectionof their rights and welfare. (Serrano

. v. Gallant Maritime Services lnc. and MarlowNavigation Co. lnc., GR No. 167614 , March24,2009)

However,RA 1@22 amendingRA 8O42whichtook effect on. May 9, 2O1O, e-enacted hesaftie provision which was declared

unconstitutional y the Court in the Seranocase.

Due Process Required to TerminateEmploymqpt. Procqdural due p;ocess requires that a

seaman must be given1. Written notice of the charges against

him and2. Formal investigation where he can

defend himselfpersonally r througha

representative before .he can bedismissed and disembarked from thevessel.

. The employer is bound to furnibh-himtwo notices:1. The writtenchargeand2, The writtennoticeof dismissal(in ase

not a



LABOR AWLABOR TANDARDS

entifled o recover s Invalid MR yardCrewUnion . pNR,GRNo. _iZAZ,,lity26,1976).

2. An agreement that diminishes theemploy_ee'sayandbenefits s containeOrn, a pOEA_approvedcontract is voio,unless such subsequent greementslpproved by pOEA (Chaviz v. Bonto_Perez,GR No. O7BOA, arch1, rn*l:

'-

{]1imum _ Emptoyment Conditions of?vef

easEmptoyment cFFJW_RAFl'F:IT"-"d ryages or regutarworkingnours ndovertime ay;

21ee ransportation'tromointof hire to

^ lte of employmentnd eturn;

r. tree emergencJ.nedical and dental. treatment nOaiiiities;

4. ,lustcausesor terminationf theservicesof theworkers;

5. Workmen's compensationbenefits and^ yar hazard rotection;6. Repatriationof worker,s remains and_ propertiesncreeof death;

':

7. Assistance on remittance of workeis^ salaries ndallcnrances;nd8

Frq:..and adequateOoarO nd todgingfacilities

rcompensatoryoodallowanfeAgenciesGiven the Duty to promote thewelfareand rightsof migrantwbrf.i"-

"'*r. uepaftmentf Foreign ffairsDFA);2. DOLE:3. POEA,4. OverseasWorkersWelfareAdministration

loYrunl_ providessociat and ;"tf;;;

services ncluding nsurance ;;;;;;-regSt assistance,placementassistariceand remittance services

to

--F-iiip;;;

overseasworkers; Under R.A. g74t. ishan provide he Fitipino i;;;j;;k";: 9 his .famity issistanje i;'- iir;enrorcementf contractualbligationsv

. l9e ies, entities nd/or heirpn"ncipais:,

u. x+rt?c€tTl€r.ltand MonitoringCenter

(.npUl- devetopsiverinoodro"gr"il';;lthe returningworkers o reintegratehe

: . J$urQlqg-njgrant <i , .,€oc1etfarid :.,. ?ftels

q'th.e,f;fiilippine.

6. NSg - tasked with the setflementoradjudicationf abordisputo.

'-'-"'1"'

"'

Classificationof OFWs1. Sea-8ased or Seamen those employed

in'

a vessel engaged in m"riiim"navigation.

2. Land-Based contractworkers other thana seaman includingworkers engaged inoffshore activities whose oCcu:pationrequires that majority of his working orgainfulhoursare spenton land.

ART.18: BAN ON DIRECTH|RINGGeneralRule: Directhiring'ofFilipino orkersfor overseasemployments not filowed.

Exceptions: Direct-hiring y: (DION)1 Membersof the

Diplomatic orps;2. [nternationalorganizations;3. Qiher employers as may be allowed by

DOLE:and4. lame hires - individualworkerswho are

able to secure contracts for overseasemployment on their own efforts andrepresentations without the assistance orparticipationof.any agency. Their hiring,nonethetess, hall pass hrough he pOEAfor processingpurposes(paft ttt, Rule il ofPAEA Rules Goveming OyerseasEmployment as amended in 2O02\.

Rationaleof the prohibition

1. To assure ine Oest possible terms andconditions f work to the employee;and

2. To assure the foreign employer that hehiresonlyqualifiedFilipinoworkers.

ART. 19: COMMTSSTONON FtLtptNOOVERSEASThe Commission n FilipinosOverseas CFO),

attached to the Deparment of Foreign Affair6,replaced the Office of Emigrant Affairs. ltassists in the formulation of policies affectingFilipinos overseas and formulates ai



Ssn #ebs@ol[.egef ?teb2011CENTRALIZEDAROPERATIONS

Exceptions to Mandatory Remittance (URU)1. Fil ipino ervicemen orking n U.S.

militaryinstallations;2. Where the worke/s lii-rmediate amily

members,dependents, .riheneficiaries reResiding ithhimabroad, nd

3. irnmigrantsahd Filipinoprofessionals ndemployees worKing with United Nationsagenciesor specialized odies ResolutionNo. 1-83, lnter-Agency Committee forlmplementationot E.O. 857).

Effects of Failure to Remit'1. Workers who fail to comply with the

mandatoryemittanceequirementhallbesuspended or excluded from the list ofeligibleworkers or overseas mployment.Subsequentviolat ionsshall warrant hisrepatriation.

2. Employers who fail to comply shall beexcluded from the overseas employmentprogram.Privateemploymentagenciesorentities shall face cancellation orrevocationof their licensesor authority orecruit,withoutprejudice o other iabilitiesunder existing avrsand regulations Sec.

9, E.O.857, December13, 1982\.

CHAPTER I. REGUI.ATIONOFRECRUITMENT ND PLACEMENTACTIVITIES

ART.25: PRIVATESECTORPARNCTPATIONN THE RECRUTTMENT"AND PLACEMENTOF WORKERS

PrivateSectors that can participaie (pp-soc)

1. lrivate employmentgencies;2. lrivate recruitmentntities;3. Shippingr manninggencies;4. SuchQtherpersons smaybe authorized

by the Secretary of Labor andEmployment;nd

5. Qonstruction ontractorswith a dulyissued autfrority to operate private

recruitment ntities Sec. 7, RuleVll, Bookl, lmplementing Rulesof LC)

Qualifications for Participation (CCD)

1. Citizenship equirement Att.27, LC)a. Filipino it izens; rb. Corporations,partnershipsor entities

at least 75o/ool the authorized andvoting capitalstockof which is ownedand controlledby Filipino itizens.

i GapitalizationArt. 28,Lg

Private employment agency for localemploymenta. For single proprietorship or

ri..::,,:i:.i.rrr.tartnership minimum net worth oftwo (2) hundred housandpesos.

b. For corporationsa minimumpaid upcapital of five (5) hundred thousandpesos

Private ecruitment r manningagency oroverseasemployment

'a For single proprietorship or

partnership minimumcapitalization ftwo (2) millionpesos.

). For corporatio ns a minimumpaid up

capital of two (2) million pesos;Prqvided that those with existinglicehses shal within 4 years fromeffectivity hereof, increase theircapitalization r paid-upcapital,as thecase may be, to two (2) millionpesosat the rate of two hundred fiftythousand pesos (P 250,000) everyyeat.

3 fhose nof otherwisedisqualifiedby law orcthergovernment egulationso engage n

the recruitmentand placementof workersfor overseasemployment.

n

P {n

or

11



LABOR AW

LABOR TANDARDS

4. Persons, partnerships or corporationswhich have derogatory ecords,subh asbut not imited o: (CPC-L)a. Those gertified to have derogatory

record or informationby the NationalBureau. f lnvestigationNBl)or by he

Anti-i l legal ecruitment ranchof thePOEA:b. Those againstwhom probable cause

or prima facle indingof guilt for illegalrecruitment or other related casesexists:

c. Thosegonvicted or illegal ecruitmentor other related cases and/or crimesinvolvingmoral urpitude; nd

d. Those agencieswhose [icenseshavebeen previouslycancelledor revoked

by POEA for violationof R.A. 8042,P.D. 442 as alnckg,ed and theirimplementing ulesand regulations swell as the Labor Code'slmplementingRulesand Regulations.

5. Qfficials or employees of the DOLE orother government agencies direcflyinvolved n overseasemploymentprogramand their relativeswithin the 4' degree ofcoi-rsanguinityr affinity; nd

6. Those whose license have beenpreviouslycancelledor revoked (Sec.

ZRule , 20A2R.ules nd Regulations n theRecruitment and Employment of LandEased Workers).

ART. 29: NON-TRANSFERAB|LITy OFLICENSEOR AUTHORTTYOPAP)1. lt may be used only by the Qne in whose

favor it was issued; hence, it cannot beassigned, conveyedor transferred o anyother personor entity.

2. lt must be used only in the Placestated n

the license.3. The recruitmentand placementactivities

must be undertaken at their [uthorizedofficial addresses.

4. lrovincial recruitmentand/or ob fairs maybe allowedonly when authorizedby FOEAin writing.

Note:.Changeof ownershipor relationship fsingile= rirpiietorbtiibti'licensedto englge 1noverseas employment shall cause the

automaticrevocationof the license.

ART.31: BONDSAll applicants or licenseor authority hall postsuch cash and suretybondsas determinedbvthe Secretary of Labor, induding escrowdeposits.

Purposes:1. To guaranteecompliancewith prescribed

recruitment procedures, rules andregulations,and terms and conditionsofemployment; nd

2. To ensure prompt and effectiverecourse

against uch companieswhen held liablefor applicants or worke/s claim (FinmanGeneral Assurancev. lnnocencio, GR No.9027?75, November 15, 1989).

Exemption rom Garnishment. Cashbond iledby applicantsor licenseor

authority s notsubject o garaishment y ajudgmentcreditorof the agency.

. Should he bond/deposit n escrowor anypart hereofbe garnished,he sameshould

be replenishedby the agency within 15days from notice rom the POEA. Failureto replenish the same within the saidperiodshall cause the suspensionof theficense (Sec. 22, Rule ll, Book ll, Rulesand Regulationson the Recruitment andEmployment of Land-based Workers).

Note: POEA has the power o enforce iabilityundercash or suretybonds.

ART.32: FEESTO BE PAID BY WORKERSr The applicant can be charged with feesonly after he has obtained employmentorhas actuall$ ommencedemployment.

r Feespaidshall alwaysbe coveredwith theappropriate receipt clearly showing theamountpaid.

POEA has the power to:1. Suspendor cancel icense;and

t. L2

2. Order he refundor reimbursementf suchillegally ollectedees(EasfernAssuranceand SuretyCorp.y. Sec. of Labor, GR

uding



Sen Eels Gotkgeotjfdo2011CENTRALIZEDAROPERATIONS

ART. 34 AND SECTION 6, RA 8(X2:pRoHTBTTEDRACTICEStFFpt-HOFAT-W)It shall be unlawful or any indiMdual,entity,licensee,or holderof authority:

1. To charge greater amount than thatspecified n the scheduleof allowable ees( llegalexaction),

2. To furnishany false information n relationto recruitment or employment (Falseinformation);

3. To give any false notice, estimonyetc. orcommit any act of misrepresentationosecure a license or authority (Falsestatements);

4. To induceor attempt o inducea worker oquit his ob in lieu of anotheroffer unless tis designed to liberate the wofker fromoppressive terms of employment(Pirating);

5. To influenceor attempt to influenceanyoersonor entitynot to employ any workerwho has not applied for employmentthrough his agency ( nfluencing not toemploy);

6. To engage n the recruitment r placementof obs harmful o publichealth,moralityorto the dignity of the Philippines Harmful

jobs);7. To obstruct or attempt to obstruct

inspectionby the Labor Secretary or hisauthorized representatives (Qbstructinspection),

8. To fail to file reports on the status ofemployment, placement etc. and suchother matters as may be requiredby theSecretaryof Labor(failure to complywithrulesand regulations);

9. To substitute or alter employment

contracts without the approval of theSecretary of Labor (Alteration ofcontracts);

10. To become an officer or member of theBoard of any corporationengaged n themanagementof a travel agency (fravelagencyofficers ecruiting); nd

11. To withhold travel documents fromapplicant workers before departure for

. i .unagthorized'.,monilqrY ;.'consideratlQns(Withholdingrbvel documents).

See RA10022 n Social Legislation.

ART. 35: SUSPENSION AND/ORCANCELLATION OF LICENSE ORAUTHORITY

Non Licensee or Non-Holder of Authority -

any person,corporation or entitywhich has notbeen issued a valid license or authority toengage in recruitmentand placementby the

Secretary of Labor,or

whosg license o-r

authority has been suspended, revoked, orcancelledby the POEA and he Secretary.

Grounds for Revocation of License (IVEE)

1. lncurring an accumulated hree counts ofsuspensionby an agency based on finaland executory orders within the validityperiodof its license,

2. Violation/sof the conditions f license;3. lngaging in acUsof misrepresentationor

the purpose of securing a license orrenewal hereof;and

4. Engaging n the recruitlhentor placement

of workers to jobs harmful to the public

healtfi or moralityor to the dignity of theRepublicof the Philippines Sec.3,Rule ,B-p-o 1,y-;-Vl,Rules and RegulationsGbveniing OverseasEmployment).

Grounds for Suspension/ Cancellation ofLicense(PC-DDP)1. The acts grohibited under Ar1.34;2. tharging a tee before the worker is

employed-or in excess of the authorized*

annount;3. poing recruitment in places outside its

authorizedarea;

4. Qeploying workers without processingthrough he POEA; and

5. flublis[ing job announcementswithout hePOEA'S pricr approval (Sec.4, Rule ll,Baok lV, POEA Ru/es).

JurisdictionThe D9LE Secretary 4ft. 351and the POEAAdministrator (Sec. 1, Rule ll. Book VI, NewRu/es on Overseas Employment) haveCONCURRENT URISDICTIONo suspend r

cancel a license (Irans Adion OverseasCorp.y. Sec. of Labor, GR No. 109ffi3, September5, leen.

Liability of recruitmentagencyDARILY




of the New Civil Code(Catan vNo.77297,Aprit 15, 1988\.

of.authorityor a licensee or holder of

authority Sec.6, R.A.BO42l:1. Those prohibited practices

enumerated nderArt. 34:2. Failure o actuallydeploywithoutvalid

reasonas determinedby DOLE;3. Failure to reimburje expenses

incurredby the worker in connectionwith his documentation andprocessing for purposes ofdeployment, n cases where thedeployment does not actually takeplacewithout he workeis fault and

4. Recruitment nd placement ctivit iesof agentsor representativesappointedby a licensee, whose

appoiritmentswere not previously authorized by thePOEA shall likewiseconstitute llegalrecruitment.

Elementsof lltegal Recruitment1. The offender s a licensee/non_licenseeor

holder/non-holder f authorityung"g"d inthe recruitment nd placem.nt

"t-*J*"r";nd2. The offender undertakes either anv

recruitmentactivitiesdefined underAfticte13 (b), or any prohibited practi"e"enumerated under Arf. 34 (peopte v.Sadbsa, GR No. 1070A, Uai tS,' teSB;Sec.10,R.A.Bo42).

Qrialifying Circumstances that would makeillegal recruitment as an offens" iluolvil;economic sabotage:1. When llegalecruitments committedva

SYNDICATE,.e., f it is carriedo,rt'nV

three (3) or more personsconspirino^ .1?9/or.:onfederatingithoneanothei; r"z. wnen ltegat ecruitments committedn a

LARGESCALE, .e., it it is committeJ

NIRC, GR

Exception to Liabitity of RecruitmentAgency. Where

heworkershemselvesnsistedorthe recruitmentgencyo send hembacxto their foreignemployerdespite heirKnowtedgef its inabilityo pay theirwages, he Court.absolvedhe agencyfrom iabitity Fe1qteConstrudion Zip.,r.Gayda,GRNo. 82310, une 18, gglf

Contractby principalo Even f it was he principal f themanning

agencywhoenteredntocontract ith he

employee, he manningagent in tnuphitippinesis joinflyana soliOerUilffitewrrn_rheprincipal pgaOuttMaritimeCorp.u .Balatonga4 -GR Nos. aSOS+_5SFebruary A, 1989).

Suabilityof ForeignCorporations

unlicensed gents, ecruits ort ers in i.99y$ry naybesuedn and ound iabte yPhifippine ourts(FaoTtie"

u"nii"iurtCorp. v. De La osa GR No.L:iS;;;:s,March26,1979\.

CHAPTERIt.MISCELLANEOUSPROVISIONS

fRT. 38: TLLEGALRECRUTTMENTASATUENDED Y R.A. so42). s;;;;_d;;;hdl:"y::lol of ilesat recruitment

"ia"iirZldiv

RA 10022under he SociatLegisiaiiiiii";

ItlegalRecruitment3nyact of {CETCHUp)

? Y-1"-"tns' enlistins, id;p;;ils3l^11-rl-1t'ns:--Fid.ns,titizins, i procuririqworKers and includes (CRAP) contrajseryices,geferrals,or gdvertisinS,'r;;l;r.Ofor emptoymentbroad,wrretneiioioroi,i".iinot, when undertakenOy a non_iicd;;; ;;non-holderl authority;r-oviOeOttratny JuJnon-licenseer non_holderf authorityl;j;any.manner,offers or .promisesoi

",ieuempl'drnefi

nbroadto wo ormlre:p6ftofi]rshall be deemed so engaged. nl"o in"iuO""tnga{.ofreprocessing-ior-reisl;ililJior-derhat pertainso nonexistent oik, ;;;kdifferent rom the actualovers"a" *orf.,

-*

wo{ with a different emptoyer ;h;ih;;registered r notwith he poEA

f3*a.Jij i i"ic as amended y RA 10022)' - r-'

r lt shall ikewisencludehe commissionf

lhe

following prohibited d"ilil;;committed ya non_ticen""" r.non_tJiJJi

against.three (3) or more persons

4

license.inducedSuchact

that they

fee,

Act

par.2 of the4ft. 315,



Ssn Sets Gollrgeof Asb2011CENTRALIZEDAROPERATIONS

Hernandez, GR Nos. 141221-36, March 7.2002t.

Venue of Cr iminal Action Arising fromlllegal RecruitmentThe complainantmay, at his option, ile at theRTCof the provinceor city:1. Where he offensewas committed:OR2. Where the offended party resides at the

time of the commission f the offense.

Summary of Rules on Prescriptive period

Note: MAXIMUMPENALry shallbe imposedf the Wrson illqally recruited s less than 18iears of age or committedby a non-licenseecr non-holder f authority.

Absence of Receipts Evidencing payment,t'lot Fatal to Prosecution's Case for lllegalRecruitmenta.s ong as the witnessescan positively how:hrough their reSpective estimonies hat theaccused is the one involved in prohibited'ecruitment, she may be convicted of theoffense despite the absence of receiotstreople v. Sagaydo, GR tVos. 124671-70,

September 29,20@).

Liability of Employee of Company Engagedin ll legalRecruitmentdr employee of a company or corporationengaged n illegalrecruitmentmay be held aseRINCIPAL,togetherwith his employer, f it is3lrown that he adively and consciouslyanticipated in illegal recruitment (peopte v.3abais, GR No. 129070,March 16,2O01).

bsuance of Searc*r Waiiant,or Warrant ofturest

. Att.38 s UNCONSTITUTTONALnasmuchas it gives the Secretary f Laborthepower o issur searchor arrestwarrants(the Secretarynot being a judge, theauthoritiesmust go through he udicialprocess).

. The EXCEPTION is in cases ofdeportationof illegal and undesirablealiens whom the president or theCommissionerf lmmigrationmay orderanested, following a final order of

deportation. Salazarv. Achacoso,GR No.81510,March14,1990).

Note: The Secretaryof Labor may orderclosure of illegal recruitmentestablishments because it is onlyadministrative nd regulatoryn nature.

TITLETWO.EMPLOYMENTOF NONRESIDENT LIENS

ART. 40: EMPLOYMENTPERMITOF NON-RESIDENT LIENS 2.

Alien Employment Permit (AEP)-

is requiredfor entry into the country for employmentpurposes and is ig;u,gJ-,.qftereterminationofthe non-availabitity of'' a person in thePhilippineswho is competent,aHe and willingat the time of application to perform theservices or which he alien s desired.

All foreign nationalswho intend to engage ingainful emplgyment in the PhilippinesshallapplyforAEP. Sec.1, D.O.97-09)

Employment Permit Required (FNAM)1. All loreign nationalsseekingadmission o

the Philippines for the purpose ofemployment;

2. All qdn-resident oreign nationalsalreadyworking n the Philippines;

3. Non-resident oreign nationalsadmitted oth'e Philippineson non-workingvisas andwho wish to seek employment; nd

4. $issionari* or religious workers whointend o engage n gainfulemployment.

Note: Employment permit should be securedregardless of the source of compensationandduration of the employment, whether theemployment s part-time or temporary (Secs. 2and 3, Reyl'sed Guidelines for lssuance of

Note:DOLE

15



LABORLAW

LABORSTANDARDS

Requisite forAliens:lmmigrants and

Employment of-Resident

resident aliens are not

the issuanceof AEP and the empoyerhasnow the option to implement ransfer oftechnology.

Grounds for Suspension of EmploymentPermit(DS)1. The continued tay of the foreignnational

may result in glamage o the interest ofthe industry r the country;and

2. The employmentof the foreignnational sguspended by the employer or by theorderof the Court /bid. .

Grounds for Revocation of EmploymentPermit(Non-MSM-DerT)1. Non-compliance with any of the

requirementsor conditions or which theemploymentpermitwas issued;

2. $isrepresentation of facts in theapplication;Submission of falsified or tampereddocuments:

4. Meritorious objection, or informationagainsthe employmentf foreign ationalasdeterminedy he Regional irector;

5. Foreign ational as a derogatoryecord,and

6. Employer as erminatedhe employmentofthe oreign ational/bid..

Validity f Employment ermit. ONE (1) YEAR,unless he employment

contract,consultancy ervicesor othermodes f qngagementrovides therwise,whichshalf,n no caseexceed5 YEARS(rbid.).

. FINE orworking ithout rwithan expiredAEP: P 10,000everyyearor a fractionthereof/Did

Ruleon Nationalized usiness

General Rule: Foreignersmay NOT beemployedncertain ationalizedusiness.

Secfion2-A of the Anti-Dummy aw prohibitsthe employmentf aliens n entities ngaged

required o securea workingpermit They arerequired to secure heir A/len EmploymentRegistration Certificate (AERC) (Almodiel v.NLRC,GR No. 100641, une 14, 1993)

Exemption from PermitThe following categoriesof aliens are exempt

from securing employmentpermit in order towork in the Philippines:DIG-LATeR)

1. All membersof the diplomaticserviceandlgr-'9.4ryrr3.foreigngovernmentfficials ccredited yandwith reciprocityrrangement ith hePhilippineovernment;

2. Otficers and staff of lnternationalorganizationsf which he Philippiness amember, and their legitimatespousesdesiringo work n he Philippines;

3. Foreignnationals lectedas members fthe Qoverning oardwho do not occupy

any other position,but have only votingrights n hecorporation;

4. All foreignnationalsranted xemption ylavu

5. Owners and representativesf foreignnationals hose ompaniesregccreditedby the POEAwho come o the Philippinesfor a limitedperiodand solely for thepurpose f intervisrvingilipino pplicantsfor employmentbroad;

6. Foreign nationalswho come to the

Philippines o leach, present and/orconductresqarch tudies n universitiesand colleges as visiting, exchangeoradjunct professors under formalagreementsbetween he universitiesorcolleges n the Philippines nd foreignuniversitiesor colleges;or between hePhilippine government and foreigjn

, government; rovidedhat the exemptionis on a reciprocal asis;and

7.' Sesldent folelgn :nationdls(Oepf"rord. r'No.7O06,May 31 2006).

Grounds or Denialof Application f AEP:1. Mivepresentation of facts in the

application2. Submissionf alsifiedocuments;3. The foreign national has a derogatory

record;or4. Availabilityf a Filipino ho is competent,

ableandwilling o lhe ob ntendedor theforeign ational

16



Sun Selu @ollegefLan2011CENTRALIZEDAROPERATIONS

ART. 41: PROHIBITION, AGAINSTTRANSFEROF EMPLOYMENT

' Aliensshatl not transfer o another ob orchangehis employerwithout priorapprovalof the Secretaryof Labor.

2 Non-resident alien shall not take upemployment n violationof the provisionsof the Code.

Note: Violationsof the abovementioned cts-nll subject the alien to the punishmentcrovided in Afts. 289 and 290 and to

:eportationafterserviceof sentence.

TITLE ONE: NATIONALMANPOWERDEVELOPMENT ROGRAM

CHAPTER . NATIONALPOLICIESANDADMINISTRATIVEMACHTNERY OR TFIEIR

IMPLEMENTATION

ART. 43.56:TECHNICALEDUCATIONANDSKILLSDEVELOPMENTUTHORITY

-reNationalManpowerand youth Council'.VYC) has been replaced by Technical

=lucation and Skills DevelopmentAuthoritv-SDA) createduRderR.A. No. 7796or theESDA

Act of 1994.

StaHnent of Goals and Objectives" To attain internationalcompetitiveness:i To meet demands or quality middleJevel

manpower;: To disseminate scientific and technical

knowledgebase;-1 To recognize and encourage

'the

complementaryroles of public and privateinstitutions;and

i To inculcate esirable alues.

r*riddle{evelManpower refers to those:' Who have ac-quired practical .skills: and

knotledge through formal or non_formaleducation and training equivalent to atleasta secondaryeducition br.rtpreferablva post-secondary education with ;conesponding egreeor diploma;oi

_ Skilledworkerswho have become hiohlvcompetent n their trade or craft as attejteiby industry.

TITLETWO.TRAININGAND EMPLOYMENTOF SPECIALWORKERS

CHAPTER t. TYPES OF SPECIALWORKERS ,:

1. Apprentice2. Learner3. Handicapped

ART. 57: STATEMENT OF OBJECTTVESFOR THE TRAININGAND EMPLOYMENTOF SPECIALWORKERS1. To help meet the demanf,"of he economv

for trainedmanpowe[2. To establish a national apprenticeship

program;and3. To establish apprenticesfiip.,,-standardsor

the protectionof apprentices-

ART.58:DEFINITION F TERMS

Apprenticeship - practical rainingon the jobsupplemented by related theoreticalinstruction, or .a highly skilled or technical

occtpation'fora periodof not lessthan three(3) monthsbut not more han six (6) months.

Apprentice - a worker who is covered bv awritten apprenticeship agreement with anindiMdual epployer or any of the entitiesrecognized iunder this chapter, with anapprenticeship rogramduly approvedby theDOLE.

Apprenticeable Occupation - any trade, orm

of employmentor occupationwhich requiredmore han 3 monthsof prac{ical rainingon thejob supplemented by related theoreticalinstruction.

Apprenticeship greement an employmentcontractwhereinhe emprloyerindshimselfotrain heapprenticend he apprenticen turn

by



LABOR AW

LABOR TANDARDS

apprenticeshipprograms. (Sec 41 RuleVl, Book ll, Rules mplementing the LaborCode)

ART. 71: DEDUCTIBILITY F TRAININGcosTs

An additional eductionrom axable nc-omeof 112of the valueof labor raining xpensesincurredor developinghe productivityndefficiencyof apprenticesare granted o theperson or enterprise organizing anapprenticeshiprogram.

Requisites:DNP)1. Apprenticeship rogrammust be duly

recognizedy heDepartmpntf Labor:2. Deductionhall ot exceed10olo f direct

laborwage;and3. Employermust ay his apprenticeshe

minimum age.

ART.72:APPRENTICESITHOUTCOMPENSATIONApprentices may be hired without

compensationhereon-the-jobrainings:(SGT.B}1. RequiredytheSchool;2. Required by the lraining program

Curriculum,3. A requisiteoreraduation,r4. A requisiteor poard examination.Sec.

40, RuleVt, BooRl, Rules mplementingthe LaborCode)

Ruleson WorkingScholar

1. There is Ne employer-employeerelationship etweenstudentson onehand,andschools,olleges r universitieson the other hand, where there is'agreementbetweenhemunderwhich heformer agree to Work for the latter inexchangeor the privilegeo study ree ofcharge,provided he studentsaie givenrealopportunities,ncludinguch acilitiesas may be reasonablend necessaryofinish their chosencoursesunder suchagreement(Se,c.

-r'_4,,r,,Ru{e, BooRttt,mplementingRules).2. Under this Article, he student is not

con$ideredn employee. ut f he causesinjuryor damage o a third person, heschool-maye held iableunderArt.21gOof the Civit Code. (Fitamer Christianlnstitute . tAC,GRNo. 7St1Z August 7,1992).

CHAPTERI. LEARNERS

ART.73: LEARNERSDEFINED

Learners - personshiredas trainees n semi-skilledand other industrialoccupationswhichare non-apprenticeable nd which mav belearned hroughpractical rainingon the bb ina relatively hortperiodof time whichshallnotexceed3 months.

Learnership Agreement - enlploymentandtraining contract entered into'between theemployer nd he earner.

Note: On-the-job or practical training of a

.].ffi4pt need not be supplemented bytheoretical inetruction (Sec. 1[a], Rule Vil,Book Il, Rules lmplementing the Labor Code).

ART.74: WHENLEARNERSMAY BE HIRED

1. No experienced orkersare available;2 fq9 employment of learners being

netessary to prevent curtailment of

employment pportunities; nd3. The employmentwill neithercreateunfair

competition n terms of labor costs norimpairworkingstandards.

Employment3f rinor" as learners"A minor belowfifteen(15) years of age shallnot be eligible or employmentas a learner.Those below eighteen 18) years of age mayonly be employed in non-hazardouioccupations. (Sec 4 Rule Vll, Book ll, Rules

lmplementing the Labor Code)

ART.75: LEARNERSHIP GREEMENT

It shall nclude: NOWC)1. The lames and addresses of thd

if he

period

Rule Vll,



San Gebs@ollege f [.ub2011CENTRALIZEDAROPERATIONS

ART.76:LEARNERSN PIECEWORK

_?arners n pieceworkor incentive-rateobs;"e to be paid in full for the work done during*e trainingperiod.

-.r less han3 months:r+dkal training n herc cutnot"morehan6

:'dical training onte job supplemented:,. related heoretical

instruction

":cornmihlent to hire

Worker s notcorsidered n

employee

Requires OLEaproval for validity

]FTAPTERII. HANDICAPPEDWORKERS

ART.78:DEFINITION ':i

' . I,:. :": '

; ' ' ; ':

-lrndicapped Workers - those whose:r.RNlNG CAPACITY s impairedby age or;r 'sical or mental deficiencyor injury,disease:r ilness.

rroG: There must be a link between the-€ciency and the work.which entites the.:rcloyer to lessen the workeis fuage.

lf ther=Lility of the person is not in any way.:ded to the work for which he was hired,hes-,r-rtd ot be so considered s a handicapped

Disability1. A physical or mental impairment that

substantially limits one or morepsycholog ca , physiolog cal or*gpato nicalfundion of an individual or activitiei ofsuch ndividual;

2. A recordof suchan impairment; r3. Being regarded as having such

impairment. Sq 4, R-A.7277)

ART. 79: WHEN EMPLOYABLE

1l Their employment is necessary o preventcurtailment of employmentopportunities;and

2. lt doe not create unfair competition nlabor cosls or impair or lower workingstandqrds.

Handicapped Workers May becomeRegulaf Employees. Subject to the provisionsof the Code,

handicappedworkers may be hired asregularworkers, apprenticesor learners Ftheir handimp is not such as to effec{ivelyimpede the performanceof job operationsin the particularoccupations or which theywere hired. (Sec. 5, Rule VllL Baok ll,Rules lmplementing the Labor Code)

. The noble objectives of the Magna Cartafor DisabledPersonsate not based merely

Those whose eamingcapacity is impaired byage or physicalor mentaldeficiencyor injury.

restriction or differentdisabilities, sa resuftofa mental, physbal orsensory impairment, operforman adivity in themanner or wihin therangeconsideredormalfor a humanbei

Practical rainingon thejob notto exceed3

months

Hrnngor personsas. tainees in semlskilled

andother ndustrialoccupationshichare

non-apprenticeablendwhichmaybe eamed

through racticalrainingon he ob in a relatively

shortperiodof ime

a commitment

employthe leamer asregularemployee f hedesiresuponcompletion

Leamer is consideredregularemployeeafter 2monthsof trainingand

dismissal s without auft' of learner

Semi-skilled/industrialoccupationnon-apprenticeable)



LABORLAW

LABOR TANDARDS

or allorr/ancesas a oualified able-bodibdperson.

Discrimination on Employment (Sec 32,R.A.7270No entity, whether public or private, shalldiscriminate against a qualified disabledpersonby reasonof disability n regard o jobapplicationprocedures, he hiring,promotion,or discharge of employees, employeecompensation, ob training, and other terms,conditions, nd privileges f employment.

Sheftered Employment (Sec.6, R.A.72n)The State shall provideshelteredemploymentif suitableemployment annotbe found.

Duration of EmploymentNo minimum, no maximum duration.Dependenton agreementbut it is necessarythat there s a specificduration.

lncentives for Employment (Sec. 8, F*A.7277)1. Private entities that employ disabled

persons who meet the required skills orqualificationseither as regular employee,apprenticeor learner,shall be entiiled toan additional deduction from their grossincome, equivalent lo 25o/oof the totalamount paid as salaries and wages todisabled persons; Provided, that thefollowingare cornplibdwith:a. Presentation of proof certified by

DOLE hat disabledpersonsare undertheir employ;

andb. Disabledemployee s accreditedwithDOLE and DOH as to his disability,skillsand qualifications.

2. Private entities hat improveor modify heirphysical facilities to provide reasonableaccommodation or disabledpersonsshallalso be entitled o an additionaldeductionfrom their taxable income, equivalent toffia/o of the direc.t costs of theimprovementsor modifications. his doesnot apply to

improvementsequiredunder:,', B,Pa.Qg;i344s, :,,.,),4 i*tl,* * .\r.1'..;i;, . .'f; ;riu.

ART. 80: EMPLOYMENT GREEMENT

Gontents (NRTND)1. The4ames and addressesof the employer

and the handicappedworkefi2. The gate-ofpay of the handicappedworker

which shall not be less than the legalminimumwage (Seq. S, Chap.i, of nil; il

ot RA7277); )3. The gature of work to be performedby thehandicappedworker;and

4. The Qurationof the employment . Sec. 3,Rule Vlll, Book Il, Rules lmplementing heLabor Code)

ART. 81: ELIGIBILITY ORAPPRENTICESHIP

Handicapped workers are eligible foremploymentas apprentices r learners f theirhandicap s such that it does not impede heperformance f ob operations n the particulartrade or occupationwhich s the subjectof theapprenticeshi or learnership ro{tam.

Benefits Granted in Title One Book III1. Right o regularworkinghours2. Right o regularworkingdays3. Right o overtimework4. Right o regularmealperiods5. Right o night-shift ifferential ay

6. Rigfit to weekly re$periods

7. Right to additional compensation onscheduled rest day, Sunday or specialholidaywork

8. Right o compensationor holidaywork9. Right o seryice ncentiveeave10. Right to a dhare in the collectedservice

cnarges

TITLE ONE: WORKINGCONDITIONSANDRESTPERIODS

CHAPTER . HOURSOF WORK

ART.82: COVERAGE

EmployerAny person,natural or juridical,domesticor



5ar EeIs @olteget {.eb2011CENTRALIZEDAROPERATIONS

c. Paymentofwages;3. Powerof Dismissal;and

4. Pcwerto Control.(Paciflc Consultants nternational Asia, lnc. v.Schonfetd,GR No. 166920,Feb. 19,2007\

Two-tiered Approach1. The putativeemployeis power to control

employeewith respect o the means andmethods by which the work is to beaccomolished:nd

2. The underlying conomic ealit iesof theactivity r relationship.

Economic Dependence or EconomicReality TestWhether the worker is dependent on thealleged employer for his continuedemployment n that line of business.

Contol Test - refers o the employeis powerto control or right o control he employeenotonly as to the resultof the work to be done butalso as to the rneans and methods by whichthe sdme s to be accomplished.

. The control fesf is the most important testour courts apply in distinguishinganemployee rom an independent ontractor.This test is based on the extentof controlthe hirer exercises over a worker. Thegreater the supervision and control thehirer exercise5, he more likely he workeris deemed an employee. The converseholds true as well - the less control thehirer exercises, he more likely he worker

is consideredan independentcontractor(Sonza v. ABS-CBN Broadcasting Corp.,

. GR No. 138051, une 10,2@4).. The control test merely calls for the

existence f the right o control he mannerof doing the work, not the actualexerciseof the right (Zanofte Shoes y. NLRC, GRNo.100665,February13, 1995).

Note: The issuance by the principal ofguidelines does not establish control by

principal"(Crya Cola B_cf.tlers'Pfiil.,ng,.v.Climaco, GR No. 146881,February5, 200n

r Not every form of control will have theeffect of establishing the Er-Eerelationship.The line should be drawnbetween:a. Rules hat merely serve as guidelines

towards the achievementof mutuallydesired results without dictating themeans or methods o be employed n

attaining t, These bim only to promotethe result. In such a case, NO Er-Eerelationshipexists.

b. Rules that control or fix themethodologyand bind or restrict he

party hired to the use of such means.These addressboth he resultand themeans used to achiev e t and hence,Er-Ee relationship exists (lnsuranceLife Assurance Co., Ltd. v. NIRC GRNo. 84484, November 15, 1989).

Cases Where Employer-EmployeeRelationship Exists. Jeepney drivers . on _.boundary basis

(Villamariav. CA, GR'h/o. 165881,Apfl

19.2006\r Drivers or helpers of salesmen areemployees of the company (Alhambra

lndustries v. ClR, GR No. L-15Qp 1;.:,,;October 30, 1970)

. Employees of unregistered association(Qrlando Farm Growers v. NLRC. GR No,129076, No.yember 5, 1998].

o Street-hired kargador (CaurdaneraanPiece Wor4ers Union v. Laguesma, GRNo-113542,February24,1998)

.* Workbrs in mcvie prqjects (Maraguinot v.NLRC,GR No. 120969,January 22, 199e)r Salaried nsuranceagent as distinguished

from registered agents on commissionbasis (Greaf Pacific Life Assurance Corp.v. Judico, GR No. 73887, December 21,/989)

'

r Tailors, seamstresses, seryers, basters,plantsadoras paid on piece-rate basis(Makati Haberdashery v. NLRC, GR Nos.83380-83, November 15, 1989)

o In-house awyer as distinguished rom anoutside retainer (Hydro ResourcesContractors Corp. v. Pagalilauan, GR No.L-62909, April 18, 1989)

. University professors and instructors(FEUv. ClR, GR No. L-17620, August31,1962)

. Taxi driver, barber (Citizens League ofFree No.L-21212.

drinks



LABOR AW

LABOR TANDARDS

37790, March25, 1976)

Note: A contract of perpetual emptoyment

deprives .managementol its prerogativetodecide whom to hire, fire and promiote,andrenders inutile the basic precepts of laborrelations. An absolute and unqualifiedemploymentor life n the mold of petit ioneisconcept of perpetualemployment s contraryto public policy and good custom",

"sit

unjustly orbids he employer rom terminating.the services t an 6miloyeeoespitenEexistencef a justor validause. t'likewisecompelshe employero retainan employeedespite the attainmentof the statuioryretirement ge, even if the employeenasF:gT" a'non-performingsset" r, *or"", ,liability to the employer. (Sorreda i.Qgybridge EtectronicsCorporatioln,C R. N;.172927, ebruary11,2O1Oj

GeneralRule:Tiile , Book ll of the Laboru'Joeoeattngwlthhoursof wor( weekly estperiods, olidays,ervicencentiveeaves ndsery 99charges, overs

all employeesn ALLestablishments,hetheror proit or not.

Exceptions:GoMaFiaDoR)1 @vernment mployees;2.. M?nagerialmpioyeesncluding embers

of themanagerialtaff,

iii. They have the authority o hireor fireotheremployees f lowerrank or theirsuggestions

nd recommendationssto the hiring and firing and as to the.,, romotion or any other change ofstatus of other employees are givenparticular weight. (Sec.2[b], nite t,Book lll, Rules tmplementing theLabor Code)

b. Not coveredunder his Tifle because heyare employedby reason of their specijttraining,experience,or knowledge;

'value

of theirwork cannotbe me,isured-n terms

of hours.

4

5.

6.

eld perconnel;

Y-"Ib"q of the.Family f the emptoyerwhoaredependentnhim orsupport;Domestic helpers or persons in thepersonal

erviceof another: ndWorkers aidbyResult.

Government Employeesa. Refer.only to employeesof government

agencies, instrumentalities,or politicalsubdivisions and of gou"rnrn"nicorporations that are NOT incorporatedunder.the CorporationCode, ,.e., thos;wnlch haveoriginalcharters.

b. Not coveredunder this Tifle because,he

terms and conditionsof their ;rt;6;;i

Elements to be Considered a Member ofthe lvlanageriatStaff (PCREED/1. That his primary duty consists of the

lerformance of work direcfly related to

are governedbv Civiland Tegrllatiors: / : 9:tiff,rFr*'#lo

Managerial mployeesa. Alter-egos f their employers ho meet

thefollorving.onditions:i. Their primaryduty consistsof the

managementf the establishmentnwhich they are employedor of aoepartmentrsubdivisionhereof:

ii. Theycustomaritynd regutaityireAthe work of twctherein; nd

) or moreemPloYees

conditions,rest periodi,entitlement obenefrs)

Usedonty or purposesof Book lll (i.e. working

Used only for purposesol Book V (i.e. fomingand joining unioni,ceftification elections.col ectivebargaining)

One vhoseprimary utyconsi-stF

9fthe

management of theestablishment in whbhthey are employed or ofa deparbnent brsubdivision thereof andto othermembers f themanaqerialtaffi

powersor prerogativesto lay doriynand execute

management policiesandlor to hire, tansfer,suspend, lay-off, recall,orscnarge, assign ordiscipline mployees

One who is vested

Supervisorsre leenred

NLRC,Mudt 24, lggg\.

members of themanagerial staff(National SusarRefineries

Corp. v.

upervisors are notmembers of themanagerialtafi.

managementolicies;

20o/o

r thoseI, Book



Ssn ffiebu@ollegr fI.sb2011CENTRALIZEDAROPERATIONS

l,i,il:[E n employeewhose ob is to supervise',- =sorers n the construction roject alls

rl-E'€t under the categoryof"off icers

or-,* - rers of a managerial staff' and isr, :-:ted from payment of overtime pay,

i,*- , in pay for holidaysand rest days and*-, :€ incentiveeavepay. (Salazarv. NLRC,,:

',c 109210, pri l17, 1996)

-eis.iof Supervisory or ManagerialStafus

-*e-ds on whether a person possesses

;, ::,:r i / that s not merely outinary r clerical' -::Jre but one that requires USE OF, -,===NDENT

JUDGMENT (ViIIuga v., -:: GR No.75O38, ugust23,1993).

:'erd Personnel, --agriculturalemployees:

; n+r^roegutarlyperform their duties away*cnr the principal place of business or:',anchofficeof the employer;AND

: r|i,ose actual hours of work in the field:annot be determined with reasonable:ertainty. (Sec. 27, Rule l, Baok lll, Rules-clementing the Labor Code)

irote: The Eight-HourLabor Law has no:;olication to the outsideservice orce or'eC sales personneland they are'not:-:fied to overtime compensationsince-*e r employerhas no way of knowing he--nber of hours he employeeworks per:a.,. (San Miguel Brewery v. Democratic-*or Union, GR No, L-18353, July 31,__rffJ

:--,LE lN CASE OF FISHERMEN: Inttercidar Fishing Corp. v. NLRC, GR No.":2574, October 8, 1998, fishermenare-:t field personnel,atthough hey perform-,rn-agricultural work away from:6ffonefs business offices. the fact-e'nains that throughout the duration of:eir work they are under the effective:dltrol and superuision of employer.-3WEVER, underthe PhilippineFishenes1a& of 7998. fishermenare considered

f ad perEo.llrelii ..:1:;1,:.,',,.",,.:.r .,,...;.11,.-,,,

;- i-E IN CASE OF DRIVERS/ BUS:SNDUCTORS: lt is of udicialnotice'that: cqg the routes that are plied,by bus:lrnpanies, there are inspectorsassigned- Sategic paces, mandatory once-a-*rE€k car barn or shop day,:'"uergconductors must be at specific]ace at specified ime, as they generally:lserye promptdeparture and arrival from

:-elr point of origin to their point of:estination. They are, therefore, under:,srsfanf supervision while in the

performance of this work and hence

cannot be considered field personnel.

(Autobus Transport Sysfemt lnc. v.Bautista,GR No. 156367,May 16, 2005).

Members of the Family of the EmployerNot coveredby this Title because he amountsgiven by the employer by way of supportmayfar exceed he benefits o which the employeeis entitledunder he provisions f lanrv.

Domestic Helpers/ Persons RenderingPersonalServices r(

a. Thosewho:i. Perform services in the employer's

home which are usually necessaryand desirable or the mainten ance renjoyment hereof;or

ii. Minister to the personal comfort,convgnience or safety of theemployer, as well as the members ofthe employels household.(Sec. 2[d],Rule l, Book lll, Rules lmplementingthe Labor Code.)

b. -,Not covered by this Title because the

terms and conditions of em$oyment aregovernedby the provisionsof Chapter ll,Title ll of the pr*ent BooK

Workers Paid by ResultSuch as on'piece rates or task basiswho arenot covered under this Title because theircompensations based on the work completedand not on the time spent n working.

lmportance of Determining Existence of

Employer-Employee Relationsh pa. Generally, abor standards and conditions

apply only if there is Er-Ee relationship.Bqt in some instances,even if there is noEr-Ee relationship, he Labor Code maystill be invoked (e.9. indirxt employefsliability, illegal recruitment and rnisuse ofPOEA

1. To

2. To

di



LABORLAW

LABORSTANDARDS

Part-TimeWorkThe Eight-Hour Labor Law prescribes the

maxlmum but not the minimum.Therefore,part-timework, or a day's work of less than ghours s not prohibited.

Compressed Work Week (CWW)r C\AM is resorted to by the employer to

prevent serious losses due to causesbeyond his control,such as when there issubstantialslump in demand or his goodsor services or when there is lack of rawmaterials.To be an exceptiono the .eight-

hour a daf requirement,he workersmustagree to the temporary change of workscheduleand they do not sufferany oss ofovertime pay, fringe benefits or theirweekly or monthly ake-home pay (DOLEExplanatory Bulletin, July 23, 1985).

r This scheme s an alternative rrangementwherebythe normalworl<weeks reducedto less han 6 days but the total numberofnormal hours per week remains at 4ghours.The normalworkday s increased o

more than I hours withont correspondingovertimepremium.This appliesas well to40 or 44-hourworloveek irms.

Conditions of a Vatid CWWScheme(DOLEAdvisory No.02, Series ot 200411, lt is expresslyand voluntarilysupported

by majorityof the.emfloyeesaffected.2. lf work is hazardous, a certification is

needed frorn an accredited safety. organization or the firm's

safetycommittee that work beyond g hours iswithin the limits or levelsof exposuresetby DOLE's occupational safety andhealthstandards.

3. The DOLE s duly notified.

Note: REVERSION TO THE NORMALEIGHT-HOUR WORKDAY SHALL NOTCONSTITUTE DIMINUTION F BENEFITS.The reversion shall be considereda legitimate

exerciseof management prerogative,providedthat the employer.shall ive the employeesprior notice of " sucfr: . reversion rwithiil i areasonable eriodof time

Flexible Work ArrangembntsAs explained in Department Advisory No.2

9"r,.9: or 20O9 (January 29), adopiion offlexible work arrangements (fWnl isconsidered as a befter alternative than theoutright termination of the services of

employeesof the dosure of the establishrnent.The effectivity' and imptementation of "FWAshall be temporary. n addition o compressed

a. Reduction of workdays where the normalworkdays per week are reduced but

shouldnot last or more han six months.b. Rotation of Workerswhere the employeesare rotatedor alternativelyprovidedworkwithin he workweek.

c. Forced Leaye where the employees arerequired o go on leave or severaldavs ofweeks, utilizing heir leave credits f thereare any.

d. Broken-time schedule where the workschedules not continuous ut he numberof work hourswithin he daytr week s not

reduced.e. Flexi-holiday schedule where the

employeesagree to avail themselvesofthe holidaysat some otherd3ys,.,providedthat there is no diminution of existingbenefitsas a resultof such arrangement.

Twelve-HourWorkshift W OvertimeA 12-hourworkshift is validated by consentand its four-hour overtime pay becomes acontractual commitment (lnterphil Lab.Emplolees Union et al v. lrterphil Lab, lnc. etal, GR No.142824,December19,2W1).

Normal Hours of Work of Health Personnelo For health personnel in cities and

municipalitips ith a populationof at least1 millionOR in hospitalsand clinicswith abed capacityof at least100:

day for 5 days a week, or 40 hours a

week, exclusiyeof time for meals.

for 6 days or for 48 hours, but theyshall be entitled to an additionalcompensation of at least 30oloof theirregular wage for work performedonthe6'dav.

Wotk from



Sun Fels @ollege f Aqto2011CENTRALIZEDAROPERATIONS

ir: ": Jous. t may notcoincidewith a calendar

::;

:*o€ndar Day - 24-hour period commencing

;1n- Tidnightand endingat 11:59pm. lt is

rr'*s:le for an employee to work for 2

:;ae.eat days (e.9. lf X's work schedule is- : - ' 0 p .m . o f MondaY P to 6 a .m . o f-,rslal his work day covers 2 calendar

f i f r :

ruF- 84: HOURSWORKED

*mu s tllorked lnclude:' r,il time during which an employee is-s:.iired to be on duty or to be at a

: -:scribedworkplace;

I r, t ime during which an employee is

-."-+ered r permitted o work,

I ::s[ periods of short duration during,utnrtng hours which shall not be more

:-ia1 wenty(20) minutes;andr \leai periods of less than twenty {20)

- rrutes are only a rest period of short

l--ation andare hus considered s hours* l-<eO.

a* ndples in Determining Hours Workedrs"e,c 1, Rule l, Book ll, lmplementing;lues)' r hours are hours worked which the

:-ployee is required to give to his:*cloyer, regardlessof whether or not:,-':nhoursare spent n productiveabor or-, olvephysicalor mentalexertion.

I r- employeeneed not leave he premise-s:' the workplace in order that his rest:e:od shall be counted, t being enough:ra he stopsworking,may restcompletely:.c may leave his workplace, to go:se,,vherewhether within or outside the:'rernises f his workplace.= ::re work performedwas necessary,or it:e:.efited the employer, or the employee:,:uid not abandon his work at the end of- s normalworking hoursbecausehe had-,:

replacement,all timp spent for suchrcrk shall be cqnsidered, s hours.worked- tlre work is with the knowledgeof his=-cloyer or immediate upervisor.--e

time during which an employee sractive by reason of interruptions n his*ork beyond his control shall be:r:insidered time worked either if the-rninence of the resumption of work-equiresthe employee'spresence at the:r,aceof work or if the interval s too brief to

:e utilized effectively and gainfully in the:-oloyee's own interest.

Rules on Hours WorkedA. Waiting Time

Considered s hoursworked F waiting:1. ls an integralpartof his work;2. The employee s requiredor engaged

by the employer o wait; or3. When employees requiredo remain

on call in the employer'spremisesor

so close thereto that he cannot use

the time effectively nd gainfully or his

own purpose.

not compensablebecause he isspecifically relieved fromall duty. He is merelywaiting o be engaged.

B. Working While On Call

When employee s required o remainon call in the employer'spremisesorso close thereto that he cannot usethe time etfectivelyand gainfully forhis own purpose. ,

. However, if he is not required toremain on the employer's premises

but is merely required o leaveword at

part of the job; thetime spent waiting iscompensable

dle time is not workingtime; it is notcompensable

e.g. X works as adriver. His task is todrive a truck toPampahga to loadgravel. While gravel

'rs

being loaded, heplayed mahjong andthen slept.The ime hespent playing andsleeping iscompensablebecausehe is engqged to waitfor waitirig is anintegral part of hb job.

e.g. Y works as a busdriver of Victory. Hisroute is from Manila oSantiago,eaving t 6amand arriving t 3pm.He

is completely relievedfrom duV until 9pm,when. e againgoesonduty or the retum rip toManila.His idle time is

practicedote: The



LABOR AW

LABOR TANDARDS

consideredwaitingtime" since'thevare not

subject o the absolutecontrolof the companyduring this period, otherwise,

heir failure toreport in the assembly ime would justify thecompany to impose disciplinary measures.(Arica v. NLRC, GR No. 7B2tO,February 28,1989)

D. Travel Time

Power lnterruptions1. First20 minutess compensable.

2. Succeeding minutes notcompensable.3. lf despite the lapse of the 1"t 20

minutes, he employeesare requiredto stay in their workplaces,such time

,iscompensable.

Semestral break of TeachersCompensable hours worked apply toregular ull-time eachersonly. lt is a formof intenuptionbeyond heir 6bntrol. Univ.

of Pangasinan Faculty union v. lJniv. ofPangasinan, GR No. L-63122, Februarv20, 19U\

Lectures, Meetings,ProgramsNot countedas working ime if all thefollowingonditionsremet1. Attendance is outside of the

ernployee'segular orking ours;2. Attendances n actvoluntafy,nd

3.

-'Emplolee

does not perform anvproductive work during sucfiattendance.Sec.0 Rute , Book lt.RulesmplementingheLaborCode)

Attendancq inActivities

Labor Relations

Trainings,

H.

1. CBA Negotiations generally, notcompensable, XCEpT f:a. There is an agreement for

compensability in the parties'

GroundRules;b. There s an established racticeorpolicy allowing compensability;and

c. When it is done during regularwork hours.

Normal travelfrom home to

work which isnot work time

spent by an

employee intravel as partof hisprircipalactivity, liketravel fromjobsile tojobsite duringthe workday

Travel thatkeeps an

employeeaway fromhomeovernight

senerafiy: nolcompensablebecause t is a

normal incidentof employment

Exceptions;1. Where the

worker ismade towork on anemergencycal{ andtravel isnecessarynproceedingto theworkplace;

2. Travel isdone froughaconveyanceprovided bytheemployer;

3. Travel isdone underthe

.. +rp,eryisiot'l,'and contsol. of the

employer;and

4. Travel is.done undervexing anddangerouscircumstance

CompensabteI 0onaid-er-ea-asand must be I work timecounted as I wtren it cuts

hoursworkeci I across anI employee,s

I workdayI because it

] substitutes forI the hours that

, the employeeI should have

.I been in theI office

entitled to



Ssn ffistu@ollegef {.sb2011CENTRALIZEDAROPERATIONS

:= , :nd the regular ightworking oursa::, but whether hey actually endered

i:-. ce in excessof saidnumber f hours.'"a: crial Shipyards nd Sfeei Corporation. l R 3 S C R A 8 9 0 [ 1 9 6 1 ] )

: , ; -85: MEALPERIODS

; - ' "s on MealPer iods: - : - d not be less han sixty 60)minutes." s non-compensable xcept: Where: - " ^

3 the so-called meal period, the:: l 'eTS are required to standbY for

:-:-gency work,or said meal hour s not

.^. of complete rest, such period is

: : ^,s'Ceredovertime(hoursworked.) (Pait:*eqcan World Airways Sysfern v. Pan:-.4can Emp;lsysssAssociation,GR No.

--",275 February 4, 1961)'?r ce less than siKy (60) minutes,but

l' ::, j not be less than twenty (20)- -ltes and the shortenedmealtimemust:* ,'rith full pay, under the following

_{ - 2 naFQ'

: Where he work is non-manual ork

.l nature or does not involvestrenuous hysical xeriion;

: ,Vhere the establishment egularlycperatesnot less than '16 hours aJ A Y ,

: 'r cases of actual or impendingernergenciesr there is urgentwork:c be performed on machineries,equipmentor installationso avoidserious loss which the employerwould' therwise uffer;

: Where the work is necessary tocrevent serious loss of perishablegoods (Sec. 7, Rule , Book lll ot theRules mplementing he Labor Code).

' ess than twenty (20) minutes, it:,.::: 'nes only a rest periodand is thus:: .-<Cered s work ime.

:{e Vlealperiodsduring overtimework isr .- ,€' to workers performingovertime or,: '::slr"r that OT work is usually or a short

:*:rc ranging rom one to three hours and tor,?:r-: 'rom the same one full hour as meal

:,i - : ' : .ay reduce he employee's T work o' : - - 1 ;

:.criened Meal Break Upon Employees'; g: i€st

i *:r tre€s may request hat heirmealperiod

:,r i-r1€fled so that they can leave work.i" : ' than the previously established, " " : -e . Such shortenedmealt ime s not

_ E X 9 t C .

Requisites:1. Employees oluntarily gree n writingand

waive he overtimepay;2. No diminutionn the salaryandother ringe

benefitsof the employeesalreadyexisting;

3. Work is not physically trenuous nd they

are providedwith adequatecoffee breaks

in the morning nd afternoon;4. Value of benefits is equal to the

compensationue hem;5. Overtime pay wil l become due and

demandablef ever they are permittedor

made o workbeyond 130Pm;and

6. The arrangements of temporary uration.

Note: The eight-hourwork period does not

include he meal break. Nowhere n the law

may it be inferred hat employeesmust ake

their meals within the company.premises.

Employees re not prohibitedroni going out

of the premises s longas they return o theirposts on time (Philippine Airtines, lnc. v

NLRC.GRNo. 132805,February2, 1999)-

ART. 86: NIGHT SHIFT DIFFERENTIAL

(NSD)

Conceptof NSDAdditional ompensation f not less han 10%

of an employee's egularwage for everyhour

of work d6ne between10:00PM and 6:@ AM,

whether or not such period'is part of the

workels regular shift.

Note: In addition o the exceptionsprovided n

Att. 82, NSD does not apply to employeesof

retail and service establishments regularlyemployingnot more han 5 workers. Sec. 1[bJ,

Rule l, Book lll, Rules mplementing the Labor

Code).

lf work done betweenoveftime work, then

10 PM and 6 AM isthe 1Oo/onight shift

ditferential overtime

.$.s.tt**: ]'t

t>

J(,/,

1982)



LABORLAW

LABORSTANDARDS

Sample llustrations1. Without Overtime

I(0% , regularwage per hour)x no. of hours

of work performedbetween10 pm--€ aml

6:00pm-2:00am

Sfep 7: Get hourlywage rate.Daily Wage divided by number of hoursworkede . g . P 8 0 0 + 8 h r s = p 1 0 0

Step2'.Computewage between6:00 pm-2:00

am.e . 9 . , 8 h r s x P 1 0 0 = p 8 0 0

Sfep3: ComputeNSD.(1Oo/oI regularwage per hour x no. of hoursof work performedbetween 10 pm--€ am)e.g. (10o/o P 100)x 4 hrs= P 40

ht Shift Differentialvs. Overtime

Paymentorworkdoneduringhenight '10:00pm--6:00am)

Payment for the excessof the regular8-hourworK

10% of basicwage 25o/o r 30% of basicwage, e the c6e maybe

8008:00arn-S:00pm5:00 nr-12:00mn

2. With Overtime

l(1Oo/of OT wage per hour) x no. of hoursofwork performedbetween10 pm-€ aml

Sfep1:Gethourlywageate.Daily Wage divided by number of hoursworkede . g . P 8 0 0 * 8 h r s . = F 1 0 0

Step2: Computewage betweeng:00 am_5 : 0 0 p m ..g . 8 h r s . p 1 0 0 = p 8 0 0

9fgp S' ComputeOT premiumpay between5:00 m-12:00mn.

IQSy::_Yage,_perour)+ Wage,per;.hourlno.of OThoursl .g.

Sfep4: ComputeNSD.[(10o/o f OT wage per hour) x no. of hoursof

work performedbetween10 pm€ amje.g. (1O% P 125)' 2 his =p24

Note: The receipt of overtime pay wiil notprecludepaymentof nightshiftdifferential ay(NARIC v. NARIC Workers tJnion, GR ruo.e4 €I12075,May 29, 1959).

ART.87: OVERTIMEWORK

Overtime Pay - additionalcompensation orwork performedbeyondeight (8) hourswithinthe ygorkeis 24:hour workday regardlesswhether

he work covers2 calendardavs.

RationaleThe employee s given OT pay becausehe ismade to work longer than what iscommensuratelwithhis agreed compensationfor the statutoiily fixed or voluntariiyagreedhours of labor he is supposed o do (pNB v.PEMA, GR /Vo.L-30279,July 30, 1982\.

Basis for Computation of Overtime pay. Regular

Basic Wage: Includes ashwage.only, without any deductionon accountoffacifitiesprovidedby the employer Aft. 90.L V t -

o Rafes

x P 1 0 0 =



Ssn @eis@olltge t tstn2011CENTRALIZEDAROPERATIONS

i . : : ' ,ertimeworkwas actually erformed

.:;anpan v. NLRC,GR Nos. 85122-24,

: ' : ' 28, 1991).

r:*r.,?rrld LegalBasis or Claimr'a"a' Rule:An exDressnstructionrom he

: : ,e- :snot equired.t is sufficienthat he' . r .:3 s permitted r suffered o work.

.::,: on: On restdaysand holidays, ritten' :. after office hours is required or

- - : - : to compensat ron.

, :E - ,erbal nstructiono renderovertime

:" : .a i ls overa memorandumrohibi t ing' :-r (A.L.Ammen Transpoftation o. v.t ' . : L - 17750 ,Auq1 ,1962 ) .

'q - -e Pay Integrated n the Basic Salaryi - : n' OvertimePay)" -.:3.,: iaiion between employer and

" : : ,:? that the latter's regular or basici : -:ady includeshe overtime ay s noti; agal.This s alsocalledcomposite r' t : - =ayor al l - inclusiv ealary.

:=' ,vrittenagreementknowinglyand:= , :rtered intoby employee; nd,'-:-atical result shows that agreed

:;. , ' ,,age ate and the overtimepay,*: '-:ed separately,are equal to or:-: ' : i lan the separateamounts egally

: - i

r , e' of Overtime Pay

'n:'?'2 Rule: Overtime pay cannot be, rir 1"E3xpresslyor impliedly.Any contrary

'." : ' :- rs null andvoid,as it is intended o

.. i "' a:,o'ers nd employees.

- : - r a t q '

-:- i ' le waiver s made n consideration' :eêfits and privilegeswhich may be

*:- : : -an what wi l l accrue o them in' : - . - . pay ; nd-.:rc essedworkweek.

:E =-:doyees whose positions aieli: -3. from rank-and-flleo supervisory

.., i : '31.re pay and other benefitsunder' : :.--95 Promotion produces the same

, B:-i.:aion

must be done in good faith.' .t :e.sonnel movement should not bei. ' :": io circumvent he law to deprive

- I : ,:es cf the benefits hey used o receive:l .:-T,,1'/ lncentivesAd of 1990. R.A.

Quitclaim in Relation o Overtime Pay

A quitclaimwhereby aborers gree o forego

theirbenefits uefrom heiremployers NULL

AND VOID in its entirety ince t runscounter

with Arflcle22 of the Civil Codewhich provides

againstunjustenrichment nd is contrary o

pubticpoticy. PampangaSugar Devetopme^1t'Co.lnc v. CtR, GR No. L-39387, June 29,

1982)

Sample llustrationsA. Regular WorkdaYs

fRegularbasicwage + 25q$of regularbaslc

wagel

B. Legal or Regular HolidbYs

[Holidaywage rate (20Oo/,) 30o/o f holiday

ratel

x p 1 g g l + P 1 0 0 | 1

8:00am-5:00 Pm(inclusive of t hour meal

break)

8am-5pm(8 hours)x P 1 2 5 =

Totalwaqe eamed

Sfep5:00

I



LABORLAW

LABORSTANDARDS

9 -f"jt Daysor SpeciatHotidayslF{€st.dayr special oliday agerate 130olo)+ 30olof restdayor speciat "tid;y;;d;;i;i

Sfep7:Gethourlywage ate.

.DailyBasicWag6oivr:deOynumber f hoursworked muttiptiedOy speiiat f,"fH"V *"gJrate.

e.g. (P800+8 hrc.) 130o/o=130

|t:f,.

Computewageberween :00 am_o.uupmusing pecial oliday age ate.e .g . 8h r s . p130= p1 ,b4O

9lef 3: ComputeOT premiumpay between5:00pm-10:00pm.

It19* :NWage'per our)+ HWage erhourlx no.of OThours .g.

Step1:Gethourlywage ate.DailyBasicWagedivided ynumber f hours

workedmultipliedyrestday& speciaf oilOiywage ate.e .g . (P800+8hrs . )15Qo/o=p1S0

ltgp Z: Computewage between8:00 am_c:uupmusing pecial oliday age ate.e .g . 8h r s . p150= p1 .200

99p S, ComputeOT premiumpay between5:00 m-10:00 m[(30% HWage erhour)+ ffWageperhourJ

x no.of OThours

E. SbtreOuteaRest Day which is Also aLegal or Regular Holiday

[Restday & legal holidaywage rate + 30o/o Irestday & legal holidaywage rate (2600/0ll

D. Scheduled Rest Day whictr is also aSpecial Holidav

{l"fl.d"y & speciaihotidaywage rate (150%)+3o% frest ay&speciaih"tfi;i;;s,";:i

d:uu m 5:00 m(inclusive f t houimeal



U' r u

&arpeila€z//e4'ed4e2OI1 CENTRALIZEDAROPERATTONS

; lr3ruble -lolidayiil rr,e r,olrdaywage rate (400o/o\ 30o/o fI ' ":: : -a; dayWage atel

- 3=. nourlywage rat'e.3r;s: Wagedividedby numberof hours

r,: -; ' i ipl ied by rest day & legal holidaya : =

E 800 * 8 hrs ) x 400o/o p 40O

- i:npute wage between8:00am-: - .s,19 speclalholidaywage rate.

: ^ns ' P400 = P 3. 200

,ll/ilr; - l:npute OT Premium pav betweenlg,ll :,r_1C 00 pm.

',, , l-{/y'3ge-per hour) + DHWageper, - : c f OThour se . g .

benefits. AsianTransmissionCorp.v. CouttofAppeals, 425 SCRA 47e [2004]). (Source:

SuggesfedAnswers to Bar Exam Questions nLabor Law and Social Legislation,UP LawCenter; 2Oa5Bar)

ART. 88: UNDERTIME NOT OFFSET BYOVERTIME. Offsettingof undertimework by overtime

work whether on the same or any otherday is prohibitedby law.

r Permission iven o the employeeo go onlearleon some other dayrbf he week shall

not exempt he employer rom paying headditional ompensation.

RationaleThe undertime hours represent only theemployee'shourly rate of pay while theovertime hours reflect both the employee'shourly rate of pay . and the 3ppropriateovertime premium such that, not being ofequal value, offsetting the undertime hoursagainst the overtime hours would result in

undLedeprivationof the employee'sovertimepremium (Nt4lSA v. NWSA ConsolidatedUnions, GR Nos. L-26894-96, February 28,1969).

The proper method should be to deduct theundertime rom the accrued eave, f any, butpay the employee he overtime pay to whichhe is entitled. This method also obviates heirregular schedule that would result if theovertime should be set off against theundertime

or that wouldplace

theschedule

forworkinghours dependenton the employee.(National Wateworks and SewerageAuthorityv. NWSA Unions 11 SCRA 766 [1964n

800

-r,-a,rrlg Kagitinganand Good Fridav aref,im,rrc he 10paid regular. holidays nder

4{ }d of the Labor Code,.How much will.w' rCoyee receive when both hotidavs:ftr' r ir]e Sameday?

xxx xxx xxx

srm[ir;ieewill receive200o/o f his regularur,me rhen both regularholidays all on

,iffirrTeay and he does not work. The lawss :ai he shall receivehis regulardailyr:r eeoh regularholiday.The employee

r{,ra'€ 10o016or Araw ng Kagitinganand

r:r tuod Friday.f he workson hatday,r: s.r3eC to 4O0% of his regular daily

April9(Araw gKagitinganat hesame imeGood

Friday)- "' .5:00 m 10:00 m'

ART.89: EMERGENCYOVERTIMEWORKGeneral Rule: Employees cannot becompelled to render overtime work against

When favorable:f€ruuse, there will be dimunitionof




wnereperformancer qualityof work isdependenthereon.1Sec.O,'Rute,-Book//1Ru/es mptementingne UOoi Coaei-

ART.90: COMPUTATIONF ADDITIONALCOMPENSATION

RegularWageshall ncludd ashwageonly,withoutdeductionon accountof facilitiesprovidedby the employer,or. purp*""'-otcomputing oT and other iooitiln"rremunerationsnChapter.

"-

CHAPTERI.WEEKLYRESTPERIOD

ART.91:RtcHTTOA WEEKLYRESTDAy

Durationl"i,tbt tess than twentyfour (24)consecutive hours qfter"u"rv "i"

.lotconsecutiveormalworkdays.

..

ote: ALL establishmentsand.enterprisesmay.operater open or businesi";

Sfi;;;"andnotidays rovidedhJ iil;;;;d;;"grven he weekty est dayano tfie,ilieiitspfoylt"d nderhe aw sec.2,-R;;tei'iixtll, tRRof LC\

Who Determines:The.employerdeterininesand schedules hey"Tl,::l "J_"-o subjecto ne o[owinll

"I volecttvebargaininggreement;z.

X:l-._3nd.. regulations ssued by the^

pecretaryof Labor; ndr. Emptoyee'sreferencebasedon religiousgrounds.

L:}.-yn"nsuchpreference iil prejudiceheD.usrnessperations f the empllG;;il;;

other remedialmeasrweekryJ *;;;i'f" 3li"3lilF?i13"ithee.mptoyee'shoiceor"t

t;;;itr"'il;"";monthSec. , Ruten. aooxi,-tni';;i;i"-

$lT.g $rttENtspLDyERrAyREourREWORKONRESTDAY

GeneralRule:Theemployer lay.not,rgqujretheemployeeso *ork on a restday.

Exceptions:UPANAC)1.

11""::" of Urgentworkto be performedon the machinery, equipment, oirnstallation:

2. To Preventossor.damageo perishablegoods;

3.lL-

o"u. of Actual or impendino

emergenciesausedby forceîlirri iZprevent loss of life and propl,rtv,-oiimminentangerto rnrrcvr

4. Where he Natureof the work requirescontinuousperationsnd he stoppagefwort(

may esultn rreparablenlury itossto theemployer;5. In theeventof Abnormal ressure f work

due to specialcircumstances,here heemployerannot rdinarilye expeciedoresorto othermeasures:nd

6. UnderotherCircumstancesnalogouso- the foregoing as determined6V the

Secretaryf Labor.

Note: The failure to w6rk during an

emptoyee'sest day does not justify theotsctpltnaryanction f outright ismissalromemploymentas such is so severe aconsequence,more so when justifiablgroundsexist or the said failure. RemercGarmentsManufaduring . Ministerf Gtii aEmployment,GR.No. L-56176_77,eiriar427,1985). Whenan employee olunteerso workon

hisrestdayunderother ircumstances,emay be allo\,vedo do so; providedhe€xpressesuchdesire nwritingandhe ispaid the additional compensationorworkingon hisrestday.

ART.93:COMPENSAT|ONORRESTDAy.suNDAY,Oq HOLTDAYWORK

PremiumPayor DifferentiatCompensation- additional ompensationor work renOeieJb.Vlg employee n dayswnen normatty eshouid not be working such as sp6ciJholidays ndweekly estdays.

Note: This article does not prohibit as{ipulationntheCBA orhigherOen'etits.Formula o ComputeWag-son notruavslMemorandumCircularNo.7, Senesof iOO+11. For REGULARHOLIDAYS,ne toilowirlg

rules

as

Public, and



$sn &etrs@ollege fLab2011CENTRALIZEDAROPERATIONS

a. lf unworked No pay,unless here s afavorablecompanypolicy,practiceor

collectivebargaining greement CBA)grantingpaymentof wageson specialdayseven f unworked

b. lf workedi. 1st 8 hrs.- Plus30% of the daity

rateof 100%ii. Excess of 8 hrs. - plus 30% of

hourly ateon saiddayc. Fall ing n the employee'sestdayand

if workedi. 1st 8 hrs.- Plus50% of the daily

rateof 100%ii. Excess of 8 hrs. - Plus 30% of

hourly ateon saidday3 For those declared as SPECIAL

WORKINGHOLIDAYS,he foilowing utesshallapply:

' . For work performed,an employee sentitled only to his hssl6 rate. Nopremium pay is requiredsince workperformedon said days is consideredwork on ordinaryworkingdays.

List of Special DaysA. National

1. A/l Sarnf'sDay - November12. LastDay of the Year- December313. Ninoy Aguino Day - Monday nearest

August21 (R.A. 9492,Juty 25,2007)4. Otherdaysdeclaredby law

B. LocalThose declaredby law or ordinance e.g.

Makati Day for Makati City onty\

Note: In the event the holiday falls on aWednesday, he holidaywill be observed onthe Mondayof the week lf the holiday alls ona Sunday, he holidaywill be observedon theMonday hat follows (R.A. 9492).

CHAPTER II.HOLtDAYS, ERVICEINCENTIVE EAVESAND SERVICECHARGES

ART. 94:.RlGFlTTO HOLIDAYPAY

Holiday Pay - a day's pay given by law to an

employee even if he does not work on a

regularholiday. t is l imited o the twelve 12)

regular, also called legal, holidays listed by

law. The"employee

should not have been

absent without pay on the work,ng dayprecedinghe regularholidaY.

Note: ln addition o the exceptionsprovided n

Aft. 82, Holiday PaY does not aPPIY to

employees f retailand serviceestablishmentsregularlyemployingnot more than 10 workers(Sea 1, Rule V, Book lll, IRRof LCl.

List of Regular Holidays (NM€ALIN-

CRE'zB)as amended by RA 9492, JulY 25'

2007

Rate of Additional Compensation for Workon a Rest Day,Sunday or

Work on a scfieduledrest day

3006of regularwage

No regularworkdaysand nospecific estdays

30olo f regularwagefor workperformed nSundays ndholidaYs

Workon Sundaywhen tis his establishedestoay

30016f regularwage

Work on specialholiday 30chof regularwage

Workonspecial olidayfalling nscheduledestday

50%of regularwage

Work on regularholidayfallingon schedulecles tdav

260% of regularwage

Compensable ven

enumerated by tteLaborCodeandspeciallaws

law or ordinancemayprovideor otherspecialholidays

F

9.10.4 a



LABOR AW

LABOR TANDARDS

Note: There must be no distinctionbetweenMuslims and non-Muslims with regard topayment of benefits for Muslim Holidavs:wagesand otheremoluments re laiddown-Oylaw and not based on faith or religion (San

t_oye corp v. CA, GR No. 14677d, taiuary30,2002).

Rylg. on.Compensability: compensable

whetherworkedor unworked ubject o certainconditions

r Legalholiday allingon a Sundaydoes notcreate an additional

workdaynor createalegal obligation or the employer o pavextra,aside from the usuatnotiOav av toits monthlypaidpmployees.

Holiday Pay ot Monthly paid EmployeesThe divisor assumes an important role indeterminingwhether or not

'hofiJayp;t ;;

alregdy inctuded in the monthlv' baiOempfoyee's salary. (producers Bank of theHnnppnes v. NLRC, GR No. 10O701,March

28,2001)a. As,a general rule, for the companywith a6-day working schedute, n"

'oiui"oiiiiq

alreadymeans hat the legal holidaysareinctuded in the montht pay ;f il;employee. The divisor is airiveO at Ovsubtracting ail Sundays from tne iot_jt

. numberof calendarOay-sn a year.b. As a generat rute for

"compin/ with a A

day working schedule, tne Oivisor mtmeans that the holiday pay is alreadv

inctudedn the monthiy'"ir"rvi-i;;employee

uJ9on Holidaypayof Teaching ersonnelPaidPerLectuie Hour

Itylvmemberspaid y the hour y virtueof

rner rcachingantracts:1. They are NOT entifled o paymentof

holiday aybecauseheyarep.i'Jonfu oiworkactually one.Since egular "fi6avsare knownto both schooi and facuitvlngmpeF.as

noclassdays.';.e11aintyh6

latter do,'not exfect payment:'for'saidunworked ays,and this-wasclearlv nInelr mindswhen they entered nto theteaching ontracts.

2. Theyare however ntifledo theirreqular 1y1tv

rat" on days dectared ""E;i;ioldaysor whenclasses re calledoffor

shortenedn account f typhoons, *0".rallies,and the tike

Oecduseni tacufiv11IF atthough orced to tafe a resiooesnotearnwhatheshould arnon thaiday. (JoseRizatCoilegeNLRCGRN;.

Double HolidayPay(i.e. Araw ng Kagitingan and Good Friday faltson same

day)1. 200o/o f the basicwagea. Entitled even if said holiday is

unworkedb. To give employeeonly 100o/o ould

reduce he numberof holidaysunderD.O.No.3

2. 400% if he worked on 2 regular holidaysfall ing n hesameday

3. 520o/o t the basicwage if he worked on 2regularholidays alling ofi the same day

and at the same ime, allingon scheduledrest day(Asran TransmissionCorporation.V. CA, GR No.144664,March 15, 2004.)

SingleHolidayRuleProvided hat the employee:1. Worked;2. Was on leavewith pqy; or3. Was'on authorizedabsence on the dav

priorto the regularholiday.

Sucesive RegularHolidaysTo be entitled o two (2) successiveholidays,the employeemust:1. Be present on the day immediately

precedinghe firstholiday;OR2. Be on leavewithpay.

o Otherwise, he must work on the firstholiday o be entitled o holidaypay on thesecond regularholiday (5ec.10, Rule lV,Book lll, IRRof LC| '



Ssn Sebs@oltegef etD2011CENTRALIZEDAROPERATIONS

Absent

withpay

Regular

Holiday

Regular

Holiday

w/out9ay

RegularHoliday

RegularHoliday

No - Both

AbsentMoutpay

KegularHoliday

YES- ButOnly ToTheHolidayPay On

Effects of Business Closure on Holiday Pay

lf regularholidayoccursduring:1. Temporary or periodic shutdown and

temporary cessaf,bn of work of anestablishment the regularholidays allingwithin he periodshall be compensated.

2. Cessaflon of operation of an enterprisedue to lrrsiness reyerses as authorizedbythe Secretary of Labor - thc regularholidaymay not be paid by the employer(Sec. 7, Rule lV, Book lll, IRRof LC).

ART. 95: RIGHT TO SERVICE INCENTIVELEAVE SrL)

Conceptof SILFive (5) days leave with pay for everyemployeewho has renderedat least one (1)yearof service.

One {1} Year of Service - servicewithin 12months, whether continuous or broken,reckoned from the date the employee startedworking including authorized ahences andpaid regular holidays unless the number ofworkingdays n the establishment, s a mafterof practice or policy or as provided in theemployment ontract, s less han 12 months.

SIL Does NOT Apply to the following:(GoDMan-FV-Ben10)1. Employees f the pvernment;

2. Domestic helpers and persons in thepersonalseMce of another;

3. @agerial employeesas.defined n Book3 ; ' i . ' . . , " ' ' l ' : ' - ' : i l f i : : " ' r ' : , r , ' : ' . ' ' . ' : ' .

Field personnelwhose performancesunsupervisedr hosewhoarepaida fixedamountor performingork rrespectivefthe time consumed n the performancethereof;Thosealready njoyinghe said@efits;Those already enjoyingyacation leavewithpay or at east5 days;andThose emptoyed in establishmentsregularly employing less . han 10

employees; Sec. 1, Rule V, Book lll,RutesmplementingheLaborCode)

Note: Employees ngagedon task or contrad

basis or paid on purelycommissionbasis arenot automatically xempted rom the grant ofservice ncentive eave unless they fall underthe classificationof field personnel. Thephrase'other employeeswhose performance:s unsupervised y the employer', In Sec*lont(D), Rule V, Baok lll o;t the lmplementingRules and Regulations of the Labor Code,leryes as an amplificationof the definitionoffield personnelunder the Labor Qode. (AutoBus Transport Systemg Iffc v. Bautista, GRt'lo.

1ffi367,May 16, 2005)

lonversion to Monetary Equivalent....$.t,L,isOMMUTABLE..e.. convertibleo cash'

" not usedor exhaustedat the end of the year.ihe cash equivalent is aimed primarily at:rncouraging orkers o work continuously ndwith dedication o the company.

'jote:Basis of conversionshall be the salary

;te at the date of commutation. he availment,::d commutation of the service incentive

ave benefit may be on a pro-rata basis (No.Vl [C], DOLE Handbook on Workers'statutoryt.tonetaryBenefit).

r An employee,who is illegallydismissed, sentitled o seryice ncentive eave benefitscomputed one year from the date shestarted working until the date of her actualreinstatement. (lmbuido v. NLRC, GRNo.114734, March31, 2AOA)

.. Article 291 of the Labor Code is not a

prescriptionof a period of time for thecomputation of , money claims but is aprescription of filing an action uponmonetaryclaims from the time the causeof actionaccrued.'Theemployeemay usehis service incentive leave benefits asleave days or he may collect its monetaryvalue. To limit the award to three years ist o u

6.

outsidewhose



LABOR AW

LABOR TANDARDS

their work cannotbe ascertainedwithreasonable ertaintyand thus are not

under the direct supervision of theemployerare not entifled o SIL (LaborCongressof the philippines.v. Llt-RC;

Employees with Salaries above MinimumWageThe difference between the minimum wageand the actual salary received bv theemployeescannot be deemed as their 13thmonth pay and service ncentive eave pay assuch difference s not equivalent o or'oithesame

importas the said benefitscontemplatedby faw (JPL Marketing promotions v. Ciurt ifAppeals,GR No. 151966, uty,,8.^2005)

Vacation and Sick LeaveNot statutorily required; matter ofMANAGEMENTDTSCRETTONr a procruct fcollectivebargaining greement.

General Rule: Benefits are non_cumulativeand non-commutative; ust be enjoyedby theemployeewithin 1 year, otherwise, ney

areconsideredwaivedor forfeited.

Exception: When the labor contract or theeslablishedpracticeof the employerprbvidesotherwise.

and conditionsof employmenton accountof his/herstatus.

. A change n the status or circumstance fthe parentclaimingbenefitsunder his Act.such that he/she is no longer left alonewith the responsibility f parenthood, hallterminate his/her eligibility for thesebenefits (Solo parent's Welfare Act of2000).

Note: Unutilized parentSl leave is notconvertible to cash unless otherwise

agreed.Non-complianceWth the law mavmake the employer liable for Oamagei(Azucena,2aO\.

Battered Woman Leave (RA. No. 9262 _Anti-Wolence Againsl Womq, and Their

lh-lldrc.n Actof 2d)1, March A, 2(n1,A femaleemployeewho is a victimof violence(physical,sexual or psychological)s entifledto a paid leave of TEN DAYS in addition oothdi' paid ,leaves. The leave is extendible

when he necessityarises.The employeehasto submit a certification from tie'punongbarangay, kagawad, prosecutor or clerk olfcourt that an actionunder R.A. No. 9262 hasbeen iledanfl is pending.

Maternity and paternity Leave (Seedlscussion under SSS, paternity Leave Actand Aft. 133).

ART.96: SERV|CECHARGES

ConceptAll

.service charges collected by hotels,

restaurantsand similar establishments halibe distributed s follows:1. 85o/ofor all covered employees to- equallydistributed mong hem2. 15o/otor

be

t t oand

Parental Soloparent)Leaveo Nol more than SEVEN (7) WORKTNG

DAYS EVERYYEAR is Sirjnteo-io'anvsolo.parentemployee hd has renaeieiservtce fat eastone 1)year.

. N9employerhalldiscriminateoainst nvsotoparent mployee ith espec-ioierml

Mandatoryegallyrequired nderAft. 95,

LC

from:employer,sdiscretionaryolicyor

fromCBA

Intendedo alleviateheeconomic ondition ftheworkers or it acts

as replacementorregularrrcomehat

wouldnot beearnedduring uch nstance

Intendedo.affordlaborera charrceo geta much eededesttoreplenishiswomoutenergies ndacquirenewvitalityo enable

him o effcienilyperfonnhis dutiesandnotmerelyo givehim

additionalahry

Cannot ewaived

':iE,opportrne i4e,

othenarise.ileniewouldequateowaiver,samebeinga mereconcession r actof

of

which



5an Sela 6otlegeofLsb2011CENTRALIZEDAROPERATIONS

Distribution

The shares referred to herein shall bedistributedand paid to employees not lessthan once every 2 weeks or twice a month atintervalsnot exceeding16 days. (Sec.4 Rule

Vl, Book lll, IRRof LC )

Rule in case of Abolitionr In case the service charge is abolished,

the share of the covdredemployeesshallbe consideredntegrated n theirwages.

. The basis of the amount o be integrated

shall be the average share of eachemployee for the past 12 monthsimmediately preceding the abolition orwithdrawal of such charges. (Sec. 5 Ru/eVl, Book lll, IRRof LC)

Pooled TipsWhere an establishment does not collectservicechargesbut has a practiceor policyofpooling ips given voluntarilyby its customers,the pooled tips should be monitored,accounted for and distributed n the same

manner as . the service charges (DOLEHandbook on Workers' Statutory MonetaryBenefits,2@6 Ed.).

TITLETWO: WAGES

CHAPTER . PRELIMINARYMATTERS

ART.97:DEFINITIONS

Agriculture - includes farming in all its

branches,and, among other things, includesthe cultivationand tillage of soil, dairying, heproduction, ultivation, rowingand harvestingof any agricultural and ,. horticulturalcommodities,he raisingof livestock r poultry,

and any practices performedby a farmer on afarm as an incident o or in conjunctionWthsuchfarmingoperations,but does not includethe manufaduring or processing of sugar,coconuts,abaca, obacco,pineapples r otherfarm proclucts.

. i r - ' : .Wage- the remuneration r earnings,howeverdesignated,capable of being expressed interms of money,whether fixed or ascertainedon a time, task, piece,or commissionbasis orothermethodof calculatinghe same, which spayableby an employer o an employeeundera written or unwritten contract of employmentfor work done or to be done or for servicesrenderedor to be rendered'and ncludes hefair and reasonablevalue, as determinedbythe Secretaryof Labor, of board, lodging, orother facilities customarily urnished by theemployer o the employee.

Fair and Reasonable Value - shall not

includeany profit to the employeror to anypersonaffiliatedwith he employer.

Fair Day's Wage for a Fair Day's Labor -

("No Work,No PaYPrinciPle")lf there s no work performedby the employee'

there can be no wage or pay unless the

laborerwas able, willing, and readyto work

but was illegally locked out, suspended or

dismissed r otherwise llegallypreventedromworking (Aklan Electric Codp. v. NLRC, GR

No. 129246,January 25, 20@)

Equal Payfor Equal WorkEmployees olding he same positionand rank

are presumedto'be perfornringequal work.

The rule equal pay for equal work applies

whether the employee is hired locally or

abroad (lnternational School Alliance of

Educators v. Hon. Quisumbing, GR No.

128U5, June 1, 20O0).

Wage or Salary includes:1. Commission2. Facilities3- Commodities/Supplements

Commission - direct remuneration eceivedby an agent, salesman, executor,broker, or

workers and denote a

higher grade ofemployment

skilled or unskilledmanual abor

is not exempt fromexecution, garnishment

or attachment (Gaa v.CA, GR No. L-44169,December3, 1985).

Under Article 1the Civil Code, it b notsubject to execution,garnishment orattachment except fordebts related to food,clothing, sheher andmedicines.

se$i. Ese-forbutartithethe



LABORLAW

LABOR TANDARDS

3. The facilitiesmust be chargedat fair andreasonable value (Mabeza v. NLRC. GR

No. 118506,Aprit 18, 1997).

Supplements - constituteextra remunerationor special privilegesor benefitsgiven to orreceivedby the laborersover and above theirordinaryearningsor wages.

6. Workers of a Barangay Micro Businessenterpr ise R.A.9179, November

132002)

Note: For a retail/service stablishmento beexempted rom the coverageof the minimumwage taw, it must be shown that theestablishments regularlyemployingnot moretnan ten (10) workers and had applied forexemptionswith and as determined by theappropriate Regional Board. (C. planasCommerciat v- NLRC, GR N;. 144619November 11, 2@5)

CHAPTER I. MINIMUMWAGERATES

ART.99: REGIONALMINIMUMWAGES

Minimum Wage - lowestbasicwage rate ixedby law that an employer can pay hisemployees.

Ability to Pay lmmaterialThe-employer cannot exempt himself from

liability to pay minimum wages because ofpoor financial conditionof the company; hepaymentof minimumwages is not dependentgl t " emptoyer'sabitity o pay (De Rachov.(unicipality .of iligan, GR

-Aio.L_2354i,

January2, 196e)

Estoppel Not ApplicableThe acceptanceby an employeeofthe wagespaid him without objec{iondoes not give ris6 toestoppel precluding him from suing for the

difference between the amount received ahdthe amount he should have received pursuantto a valid minimumwage law where it does notappear hat the employerchangedhis positionto his own prejudice.

e Foods or snacks or other convenienceprovided by the employer are deemedsupplements f they

are granted for theconvenienceof the employer. The criterionIn making a distinction between asupplementand a facility does not lie inthe kind but in its purpose. Mayon Hotel&Restaurantv. Adana. GR N;. iSl\s+, Uay16,2@5)

Gratuity - something given freely or withoutrecornpenseto reward employees who hiverendered satisfactory and efflcient service tothe company. lt does not form part

of thewage

Allowances - amounts of money, which arenot

.9art.. of wages, but are' given i;consideration of certain expenies lik;transportationand representation.

ART.98: APPLIGATIONoF TITLE

General Rule: Tifle on Wages appties o al lemployees.

Exceptions:

1 F.armenancyor leasehold;2. Householdor domestichelpers;

J .tlgqeworkers engaged n needte_work;4. Workers employed in any establishment

outy registeredwith the NationalCottaoeIndustryDevelopmentAuthority t f.fnCfOiland

5. Workers in duly registered cooperativeswhen so recommendedby the eureiu of

Cooperative Development upon approvalbythe Sec.ofLaboC

o The employer is under no obligation toimd across theboard.

When

The1. Thepolicy

Items of expensenecessary tor the

laborer's and hisfamily's existence andsubsbtence

Constihrte extraremuneration r specialprivileges or benefts

given o or receivedbvthe laborers over aniabove thejr ordinaryearnings ndwagg-f

'

Part of the wage

longperiod;



Sun Sebe@ollegef Lelo2011CENTRALIZEDAROPERATIONS

2 The practice s consistent nd deliberate;

The oractice is not due to error in theconstruction r application f a doubtfulcl rdifficultquestionof law; andThe diminution r discontinuances done

unilaterallyy he'employer.

General Rule: Nothing in the Labor Code

shall be construed o eliminateor in any way

diminish supplements,or other employeebenefits being enjoyed at the time ofpromulgation f this Code.

Benefitsbeing givento employeescannot betaken back or reduced unilaterally by the

employer because the benefit has becomepart of the employmentcontract, written or

unwritten.

Note: The SG, in Arco Metals v. SAMARM-

NAFLU, G.R. No. 17O7U, May 14, 2008,held

that, it may be safely concluded that theproper legal bases for the invocationof theprinciple hat any benefitor supplementbeing

enjoyed by employees cannot be reduced,discontinued r eliminated y the employerare

the ollowing:i. Express terms of an employment

agreement;2. Company practice which refers to the

implied terms of an emPloYmentagreementwhich the employerhas freely,voluntarilyand consistentlyexetended o

. its employees and thus cannot bewithdrawn exceptby mutual consent of thecontracting arties;

3. The Conslitution(Sec. f 8 Art ll and $ec. 3Art.Xlll): and

4. Aft.4oftheLaborCode

Exceptions o the Non-DiminutionRule(CoNWaB RcP)1. @rrection of error2. $egotiated benefits3. Sge ordercompliance4. penefltson reimbursement asis

5. Beclassificationofposition :, j . -.

6. Contingent eneftts f conditional dnus7. Productivity ncentives

Bonus - amount granted and paid to anemployeefor his industry and loyalty whichcontributed o the success of the employer'sbusinessand made possible he realizationofprofits.

General Rule: Bonus s not demandableas amatter of right. lt is a managementprerogative, given in addition to what is

ordinarilyreceived by or strictly due to the

recipient(Producers Bank v. NLRC, GR No'

10A7U, March28,2001).

Exceptions:l When it was promised o be given without

any conditions mposed or its payment n

whichcase t is deemedpartof the wage;

2. When it has ripened nto practice Marcos

v. NLRC,GR No. 111744,SePtember8,

7995).

13th Month Pay or lts Equivalent (See

dlscussionunder 1fn-Month Pay Law)

Additionalncomebasedon wage requiredbyP.D. 851 which is equivalento 1/12 of the

total 'basic salary' earned by an employee

withina calendar ear

Note: For employees eceiving egularwage,

tfie term "basic salary" does not mean the

amountactually eceivedby an employee,but

1112 f their standardmonthlywage multiplied

by the length o-f heir service within a given

calendar ,year. The payments for sicK

vacation, and maternity leaves, nightdifferentials,holiday pay, and premiums for

work done on rest days and special holidays

are excluded rom the computationof "basic

salary". (Holda Pltils., lnc. v. Samahan ng

Malayang Nlanggagawa sa Honda, GR No.

145561, une15,2005)

. Everyemployee eceivinga commissionn

addition o a fixed or guaranteedwage or

salary s entitled o a thirteenthmonthpay'

which must E 1112of their total earnings

during the calendar year. (PhilippineAgricultural Commercial and lndustrial

Workers lJnion v. NLRC, GR No. 107994,

August14, 1995)

than December24.




9:1ryln..for the ptightof the working masses.(PD 851)

Pro-Rated13thMonth payAn employee who has resigned or whoseseryiceswere terminatedat any time beforethe paymentof the j3h month pay is entifledto this monetarybenefit in proportion o thelength of time he worked during the yearreckoned rom the time of his resignationorterminationromservice.

Commissions in Relation to 13thMonth pay

1. The salesmen'scommissions,comprisinga pre-determinedpercent of the sellingprice of the goodssold by each salesmanlwere properly INCLUDED in the term"basic salary' for purposesof computinqtheir '13'

month pay. (phiiippin-eDuplicators, nc. v. NLRC.GR No. t tb:OOa,February 15, 1995)

2. The so-called commissions paid to or1e9ei1ed by medical representative ofBoie-TakedaChemicalsor by the rank andfile

employees ofphilippine

Fuji Xeroxwere excluded rom the term "basicsalaMbecause these were paid

""PRODUCT]VITY BoNUSEd'. Suchbonuses closely resemble profit-snirlngpayments and have no clear, directlnecessaryrelation o the amount of work

3:ct alUdone by each ndividualemployee.-

(Boie-Takeda Chemicals, lnc. v.'Oe taSerna, GR Alo. 92174, December 1O,19e3)

Productivity Incentives1. Kind of bonus hat comes rom productivity

gain;Z

flmgto

.instituteproductivityat companylevel and the sharingof productivity'gain

^betweenemployers nd employe"";

"riO. Natureof salarybonus s proportionateoincreases in current

'productivity

(Productivity lncentives Act of'1ggT,

R.i.69711

2. Pakiaw or Takay - works awav from

the employer,s ork premises nd arenot direcfly supervised bV theemployer.

B. As to Rate of payment

1. Those paid piece rates as prescribedin PieceRateOrdersby he DOLE.

2. Those paid output rates which areprescribedby the employerand arenotyet approvedby thqDOLf.

Benefits Payable to piece_Rate Workerswhose Work is Direcfly Supervised by theEmployer

].Applicable tatutoryminimumdaily ate,

2. Yearly service incentive leave of hve Oavswith pay;

3 Nightshiftdifferentiat ay;4. Holidaypay5. Mealand restperiods;6. Overtime pay(conditional);7. Premium pay(conditional);8. 13smonthpay;anO

9. Otherbenefitsgrantedby law, ndividual rcollective bargaining agreements orcompanypolicyor practice.

Note:The rulqs mplementinghe LaborCodeon NSDand SIL DO NOT appty o emptoyeesyh9:e time and performances unsupervisedby the employers, inctuding those who areengaged on task or contract basis, purelvcommissionor those who are paid a'fix6damount or performingwork irrespectiveof the

timeconsumed n the performancehereof.

CHAPTER tI.PAYMENTOF WAGES

ART.102:FORMSOF PAYMENT

WorkersPaidon piece-RateBasisThosewho are paid a standard mount orevery pieceor unitof work producedhat ismore

.or less regularly replicated,without:S_3fd

o the time spent in producinghesame.

Categoriesof piece-RateWorkersA. As to Presence f Control

1. Piece rate worker _ works direcflyunder the superuision of theiremployer

order

1 . C



Ssn Sebs@ottegef {.ab

2OI I CE}TTRALIZEDAROPERATIONS

Necessary because of special

circumstances as determined by theSecretaryof Labor;Stipulatedn the CBA;orWhere the following conditions are met:(1PRc)a. There is a bank or other facilityfor

encashment within a radius of fkilometer from he vrorkplace,

b. The employer,or any of his agentsorrepresentatives,oes not receiveanypecuniary benefit directlyor indirectly

from he arrangement;c. The employeesare given leasonable

time duringbankinghours o withdraw

theirwages from the bankwhich time

shall be consideredas compensable

hours worked if done during working

hours:ancld. The payment by check is with the

written gonsent of the emploYeesconcerned if there is no CBAauthorizing he paymentof wages by

bpnk checks (National Federation ofLabor v. CA, October 19,2@4\.

ART.103:TIMEOF PAYMENT

GeneralRule:' At leastonce every wo weeks,or

2 Twice a month at intervalsnot exceeding

16 days.

Exceptions:

' ln case of force maieure or othercircumstances beyond the employeis

control, payment must be made

immediately after such' occurrence hasceased.

2 lf engaged o performa taskwhich cannot.

be completed in 2 weeks and in the

absenceof CBA or arbitration ward:a. Payment shall be made at intervals

not exceeding 16 days, in proportionto the amount of work completed;

b. That final seftlement is made uponcompletibnof the work

ART. IO4:PLACE OF PAYMENTGeneral Rule: At or near the place of

-rdertaking.

Exceptions: (DFA)' When payment cannot be effected at or

near the place ,of work bf reason ofg[eterioration of peace and order

conditions, or'by

reason of actual orimpending emergencies caused by fire,

flood or other calamityrenderingpayment

mPossible;

2. When the employer provides for lree

transportationo the employeesback andforth;and

3. Underany other3nalogouscircumstances-

Prohibition: No employer shall pay his

employees in any bar, night or day club,

drinkingestablishment,massageclinic, dance

hall,or othersimilarplacesor in placeswhere

games are played with stakes of money or

thingsrepresentingmoney except n the case

of personsemployed n said places. (Sec- 4'

Rule Vttt, Book lll, Rules lrfiplementing the

Labor Code)

Requisites or Payment thru Banks {WEO)1. There must be written permissionof the

majorityof the employeeS oncerned n an

establishment:2. The establishmentmust have 25 or more

gmployees;and3. The establishmentmust be locatedwithin

gne kilometer adius o the bank {Sec. ZWage Rationalization Act).

Note: Payment through an ATM is allowed,

providedhe followingconditionsare met:

(WRAP-EDeR)1. The ATM system of payment is with the

'gritten. consent of the emPloYee

. Cbncerned:2. The employee are given easonable ime

to withdraw their wages from the bank

facilitywhich, if done duringworkinghours,

shall be considered s compensable ours

worked:3. The system shall allow the employee to

receivetheir wage within the period and in

the amount prescribedunder the Labor

Code;4. There is a bank or ATM facilitywithin a

radiusof 1 km. from he workplace;

5. Upon the request of the concerned

emptoyee, the employer shall issue a



LABOR AW

LABOR TANDARDS

ART. 105;DIRECTPAYMENTOF WAGES

GeneralRule: Wagesshallbe paiddirecflyothe workers o whom hevare due.

Exceptions:1. Payment through another person

a. In case of force majeure renderingsuch payment mpossible rovided aidperson s underwrittenauthoritygivenby the worker or the purpose;

b. When authorizedunder existing law.including payments for insurance

premiumsof the employeeand uniondues where the right to check-offhasbeen recognizedby the employer inaccordancewith a CBA or authorizedin writing by the individualemployeesconcerned.

2. Payment through the Heirs of theWorkerIn case he workerhasdied,employermaypay wages of the deceased worker to the

heirs of the latterwithout he necessityofintestateproceedings.

Procedure:a. Claimants shall execute an affidavit

attesting their relationship to thedeceasedand the fact that thev arehis heirs, o the exclusionof all others(Atfidavit af Nextof Kin\:

b. In case of a minor heir, affidavitshallb executed on his behalf by his

naturalguardianor nextof kin;c. Affidavit shall be presented to theemployer who shall make paymentthrough he Secretaryof Labor or hisrepresentative,

d. The representativehallac.tas refereein dividinghe amountpaidamong heheirs;and

e. Payment of wages under this Article shall absolve the emploler of anyfurther liability with respect to th6

. amount paid. (Sec. 6, Rule Vllt, Booklll, Rules lmptementing . the , Labor :Code)

3. Payment through a family member ofthe worker's famityWhere the employer is authorized inwritingby the employee o pay his wagesto a memberof his amily. Sec.5[b])

-

Summaryof Lqgal prohibitions on Wages1. Paymentof wages n non-cash orm:2.

layment of wages n nightand day clubs,barsand othersimilarplaces;

4. Non-interferencey the employersn the

employees'dispositionof theirwages.

ART. 106: CONTRACTOR oRSUBCONTRACTOR

Types of Contrac6rs under the Law1. Job Contracting or Subontracting - an

arrangementwherebya principalagrees oput out or farm out with a contractor.orsubcontrac{or the performance or

ctlmpletion of a specific job, work orseryicewithin a definite or predeterminedperiod, regardless of whether such job,work, or service is to .be performed orcompletedwithin or outsidethe premisesof the prilcipal.

Existence of Trilateral RelationshipUnder this legitimate contracting, thefollowingCONTRACTSexist:a. Contract for specific ,;ob, work or

service between he principaland thecontractorlsubcontractor; nd

b. Contraot of employment petween thecontractor/subcontractor and itsworkers.Hence, he PARTIES nvolvedare.i. Principal;

of Rules on P

Prohbited-. romissoynotes, ouchers,coupons, okens, ickets,chits,or anyotherobjectother han egal ender.9nce every tlvo weeks or twice amonth at intervals not exceeding 16

onhis

to itsfree

of



i l l

t;t

Ssn Sebs6o[ege of ["sb


and machineries, ork premises

and othermaterials ecessaryntheconduct f hisbusiness;, c. The egreement between the

principal and contractor or'

subcontractor assures thecontractualmployeesntitlementto all labor and occupationalsafetyand health tandards,reeexerciseof the right to self-organization, ecurityof tenureand social and welfarebenefits(D.O.No. 10 of 1997;Baguiov.NLRC, GR Nos. 79004-08,October , 1991); nd

d. Must be properly egisteredas'suchin accordanceithD.O.No.1&02.

Note:The absence f a registrationnlygivesrise o the presumptionhat he contractorsengaged in labor-only contracting, apresumptionhatcan be refuted Aklan, t al v.San Miguel Corp.,BMA Philasia,nc., et al,GRNo. 168537, eember11,2008).

2. Labor Only Contracting - anarrangementwhere the contractororsubcontractor erely ecruits, upplies rplacesworkers o perform job, work orservice or a principal, nd ANY of thefollowing LEMENTSs present:a. The contractorr subcontractoroes

not have substantial capital ORinvestment hichrelates o the job,

work or service o be performed, ndthe employeesecruited,upplied rplaced by such contractor orsubcontractor are performingactivities hichare directly elatedothemain usinessf heprincipal;r

b. The contractor oesnot exerciseheright o controlover he performanceof the work of the contractualemployee.

Substantial Gapital -, gqpital.stgcks,,endsubscribed capitalization n the case ofcorporations,ools, equipment,mplements,machineriesndworkpremises,ctually nddirectly used by the contractor orsubcontrac'torcompletionof

the 'performance orjob, work or service

contradedout.

Summary f Prohibited aborContracting(LT-CrSU)1.

labor-onlyontracting;

2. Contracting that ferminates theemploymentof regular employees,orreduces heirwork 'hours,or.reducesor

splits a bargainingunit, f such contracting

out is not done in good faith and notjustifiedby businessexigencies;Contractingwith a Cabo person/s r laborgroup which, in the guise of a labororganization, supplies workers to anemployer,with or without any monetaryorotherconsideration hether n the capacityof an ageht of the employer or as anostensi le independent ontractor;Contractingwith n-houseagency;Contractingbecauseof #'$trike or lockout;

andContractinghat constitutesLP underArt.248.

prevent.rei

3.

4.R

inthe

ILYany

Noteliable

incl

The employer/principalis merely an indirectemployer,by operationof law, of hiscontracto/s employees(ftl AutonationCenter,lnc. v. NLRC, January29, 1996).

The employer/principalis treated as directemployer of thecontractor's employeesin all instances(contractor is deemed

agent of the employel(ManilaWaterCompnyv. Pefia,July 8, 2004).

Ee relationship or alimitedpurpose, e. toensure that theemployees are paidtheir wages (SMC v.MAERC lntqratedSerwbes, nc., July 10,

The statute creates anEr-Ee elationshipor acomprehensivepurpose,.e. o preventa circumventionf laborlaws (SMC v. MAERClntegrded Serwces,lnc.,July 10,2003).

The principal becomessolidarily iable with thecontrastorn the eventthe latter aits o pay heemployees'wages andfor violation of laborstandard laws. Theliability,however, doesnot extend to the

The principal ecomessolidarilyiablewith thecontractornot only forunpaidwagesbut alsofor all the rigtrfful laimsof the employees nder

abor Code and

ll$ LA\c'

/VTRC,GR



LABORLAW

LABOR TANDARDS

. The principal shall be deemed theemployer of the contrac,tual mployee in

any of the folloring casesas declaredbvcompetentauthority:1. Labor-only ontracting; nd2. Contractingarrangementallingwithin

the prohibitions.

ART.108:POSTTNG F BONDAn employer r indirect mployermay requirethe contractor or subcontractor o furnish abondequal to the costof laborundercontract,on condition hat the bondwill answer or thewages due the employees should

thecontractoror subcontractor, s the case mavbe, ail to pay he same.

Note: Where the employer ails to require hecontractor o pos a bond,the employermustanswer for whatever liabilities he contractormay have incurred o his employees.This iswithoutprejudiceo its seeking eimbursementfrom the contractoror whateveramount t willhave to pay the said employees(Baguio v.NLRC,GR Nos. 79004-08,October4. 19911.

ART. 110: WORKER PREFERENCE NCASE OF BANKRUPTCYWorkers shall enjoy first preference asregards their unpaid wages and othermonetary claims, any provision of la,rr o thecontrarynotwithstanding.r Establishes preferenceof creditand not

a lien; (Development Bank of thePhilippinesv. Secretary of Labor,GR No.79351,November 28,1989)

rCoversnot only unpaidwages but also al lothermonetary laims;

. Applicable only to ordinary, preferredcredit, hence, must yield to specialpreferredcredits (e.9. secured creditors);

o This Article did not sweep away theoverridingpreferenceaccordedunder theschemeof the Civil Code.totax claims of

.the government.

C o n d i t i o n s ', r . . ) . i . :

1. Formal declaration of insolvency orbankruptcy;

2. General udicial liquidationproceedingsofthe employeis busihess; nd

3. Filingof claimsby workers.

Note: The worker preferences not applicablein case the employer-corporations underrehabilitation.

r The prefererrtial . right accorded toemployeesand workers under Articte110

ply.Oe.jnvgfednty uring ankruptcyrjudicialiquidationroceedingsgainst-the

employer. (Development Bank of thePhilippinesv. Secretary of Labor, GR No.

79351,November28,1989. Suspension f paymentsorderby the SEC

mandates he holding in abeyance hefil ing or the proceedings n labor casesagainst an employer who is underrehabilitationo give the employer hechance o concentrate n how to revivehisbusinessand not be distracted n tryingtodefend itself n labor cases iled against t(Rubbervvortd, tnc. v. NL?C, GR No.126773,April 14, 1999).

ART.111:AfiORNEY,S FEESRules:1. In casesof unlavfulwithholding f wages,

the culpable party may be assessedattorney's ees equivalent o 10% of theamountof wages recovered.

2. lt shall be unlawful for any person todemand or accept, in any judicial oradministrative proceedings for ther€covery of the wages, attorney's feeswhichexceed10o/o l the amountof wages

recovered.Seedrscussionsn Aft. 222.)

Concepts of Attorney's Feesa. Ordinary ; reasonablecompensationpaid

to a lawyer by his client for the legalserviceshe has rendered.

b. Extraordinary- indemnity for damagesordered by the court to be paid by thelosingparty n a litigation,and is not to bepaid to the lawyerbut to the client,unlessthey have agreed that the award shall

pertain to the lawyer as an additionalcompensation r as a part hereof TradersRoyal Bank Employees tJnion-lndependentv. NLRC,March 14, 1997).

"Union ServiceFee"

- .

10

with the



$sn ffiebl €ollegedi[eb2011CENTRALIZEDAROPERATIONS

2.

wages (Att. 112, Non-lnterferenoe inDlsposa/ of Wages);

No employer hall orce,compel,or obligeemployees to purchase merchandise,commodities or other property from theemployer or from any other person, orotherwise make use of any store orservices of such employer or any otherperson (Nt. 112, NonJnterference inDisposa/of Wages);No employershall make any g[eductionsfrom the employee'swages except whenauthorized to do so (Arf. 113, WageDeduction);No employer shall gequire he worker tomakedeposits rgmwhich deductions hallbe made fors'reimbursementof loss of ordamage to tools, materials,or equipmentsuppliedby the employerexcept when theemployer is engaged in such businessrequiringsuch deposits as determinedbythe Secretary of Labor (4ft. 114, Deposifsfor Loss or Damage);No employer shall make any deductionfrom the employee's eposits or the actual

amount of the loss or damage unless theemployeehas been heard hereon and hisresponsibility as been clearlyshown (Arf.115, Limitations);No .employershall githhotd any amountfrom the wages unless authorized o do so(Nt. 116, Wthholding of Wages andKi ckbacks P rohi bited)No employershall nduce the employee ogive up any part of his wages by force,stealth, ntimidation,hreat or dismissalorby any other means without his (worker)

consent (Att. 116, Wthholding of Wagesand Kd<backs Prohibited);No employer shall make deductions asconsiderationof a promiseof employmentor retention of employment (Art. 117,D educti on to Ensu e Employment)

9. No employershall refuse to pay or reducethe wages and benefits or otherwisedischarge he employeewho has filed anycomplaint un{eg this"T$g,.o[.haq teslified

. or is about to testify in such proceedings

(4ft . 118, Retaliatory Measures.);and10.1{o employer shall make any gtatemeni,report or record knowing such statement,report or record o'be false in any materialrespect (Att. 119, False Repofting).

ART. 112: NON-INTERFERENCE INOISPOSALOF WAGES

Related Civil Code ProvisionsAtt. 1705.The labore/s wages shallbe paid n

legal gurrgrlcy:

Att. 1706.Withholdingof the wages,except or

a debt due, shall not be made bY

the emPloYer.Art. 1707.The laborer'swages shall be a lien

on the goods manufactured r the

work done.Att.17O8 The laborer's wages shall not be

subject to executionor attachment

except for debts incurred or food,

shelter, clothing, and medical

attendance.Att. 1709.The employershallaheithereize nor

retain anY tool or other articles

belonging o the laborer.

ART.113:WAGEDEDUCTIONS

General Rule: Wage deduction is strictlyprohibited.

Exceptions:A. With Employee's Consent in Writing

1. SSS paymentsQ.. PHILHEALTHPayments3. Contributionso PAG-IB|GFund

4. Valueof mealsand other acilities5. Payments to third Persons with. employee's onsent6. Deductlonof'absences

B. Without EmploYee'sGonsent1. Worker's insurance acquired by the

employer2. Uniondues,where he right o check-

off has been recognized bY the

employer3. Cases where the emPloYer is

' authorized bY law or regulationsissuedby the Secretaryof Labor

4. Debts of the emPloYee to the

employer hat have becomedue anddemandable

C. When



LABOR AW

LABOR TANDARDS

considers he practiceof makingdeductions rrequiringdepositsnecessary r desira[le.

Requisites of Deduction for Loss orDamage SOFE)1. The employee is clearly ghown to be

responslbleor the lossor damage;2. The eniployee s given ampleopportunity

to show causewhy deductionshouldnotbe made;

3. The amountof the deduction s fair andreasonable and shall not exceled theactual ossor damage;and

4. The deduction rom the employee'swage

does nof gxceed 2oo/o f the employee,swages in a week (Sec. 11, Rule Vill,Book lll, Rules tmptementing the LaborCode)

Note: Arf. f14 provides for the rule ondeposits or lossor damage o tools,materialsor equipmentsupplied by the employer.Thesame does not apply to or pefiit debosits todefray any deficiency,which the taxi drivermay incur in the remittanceof his ,,boundarv'.

flr,Taxiv. NLRC,GR

No. 111474,Augist22, 1994)

CHAPTER V. WAGE STUDIES, WAGEAGREEMENTS AND WAGEDETERMINATION

Composition of Natinnal Wages andProductiviti Commission {NWPC)

-

1. Secretaryof Labor,2. Director-Generalol NEDA;3. 2 membersfrorh the employeis sector:

4. 2 members from the workeis sector; and5. Secretariat (Executive Director and two(2)DeputyDirectors).

ART. 122: CREATIONoF THE REGIONALTRIPARTITEWAGES AND PRODUCTIVIWBOARD

Who May Set the Minimum Wage1. RegionalTripartiteWggesanOprsductivitv

Bbard (RTWPB),subject o the guidelineiprescribedby the NWpC; and

2. Congress.

Composition of RTWPB1. RegionalDirectorof DOLE.2. RegionalDirectorof NEDA:3. RegionalDirectorof DTI:4. 2 membersfrom the employe/s sector;5. 2 membersfrom the workeis sec.tor:and6. Secretariat.

ART. 123:WAGE ORDER

Wage Order - an order ssuedby the RegionalBoardwhenever he conditions n the regionso warrantafter investigating nd studyingal lpertinent acts and based on the standardsand criteria prescribed by the LC. TheRegional Board proceeds to determinewhether o issue,the ameor not.

r A wage order establishes_.theinimumwage rates o be paid by effiployers n theregion, which shall in no case be lowerthan the applicable statutory minimumwage rate,s NWPC Rulesof ProcedureonMinimumWageFixing).

;;1 ,;1.i

EffectivityIt shall take effect after 15 DAYS from itscompiete publicatiori in at least onenewspaperof generalcirculation n the region(NWPC Guidelines No.OO1-95).

Note:* Public hearings and publication areMANDATORY. Wage order issued by the

Regional Wage Board without the requiredpublic hearing or consultation, nd withoutpublication in newspapers of generalcirculation hall be struckdown for violationofAtt. 123 of the Civil Code {Cagaym SugarMilling Co. y. Sec. ol Labor, GR No_ 129399.January 15, 1998).

FrequencyA wage order issued by the Board may NOTbe disturbed or a period of 12 monthsfrom itseffectlvity and no. petition for wage increaseshallbe entertained uringsaid period,

Exceptions:1. When Congress itself issues a law,

increasingwages.

rces. #rXhi #H#A

ccLLs{F* sri tarv

file witha surety

to theemployees

AS

of

Itthetheor

|itl

48

corresponding



Ssn $eU 6ollege ofLffi2011CENTRALIZEDAROPERATIONS

increase. n the event such order is affirmed

(Sec. 5 Rule V, Sec. 7, Rules lmplementingR.A.672n.

Grounds for Appeal on Wage Order1. Non-conformitywith prescribedguidelines

and/orprocedure;

2. Questionsof law; and3. Grave abuse of discretion (Rule V,

Reyised Rules of Procedure on Min. WaoeFixing).

Doctrine of Double Indemnity

Double Indemnity - the payment to aconcerned employee of the prescribedincrease or adjustrircnfs ' n the wage ratewhich was not paid by an employer in anamountequivalent o twice he unpaidbenefitsowing o such employee.

Unpaid Benefits - the prescribedwage rateswhich the employer failed to pay upon the

effectivity of a wage order, exclusive of otherwage-related eneflts.

Note: Unpaid benefits serve as theprincipalbasis for computing he doubleindemnity Sec.? Dept. Order No. 10).

ART. 124: STANDARDS/ CRITERIA FORMINIMUMWAGEFIXING

Factors for Determining Regional MinimumWage Rates (DeW-CNN-I -FE')1. Emand for livingwages;2. \age adjustment vis-i-vis the consumer

price ndex;3. Cost of living and changes or increases

therein:4. Need6of workersand heir amilies;5. $eed to induce industries o invest in the

countryside;6. [mprovements n standardsof living;7. lrevailing wage levels;8.

Eairreturn of the capital invested and

; . ,c?ppg'Jyg.ppJ of employers; ,.._., :9. fffectb on employment generation and

family ncome; nd10. quitable distribution f incomeandwealth

along the imperatives of economic andsocialdevelopment.

Two methods of minimum wage fixing1. Floor-lrVagemethod- involves the fixing of

a determinateamount o be added to theprevailingstatutoryminimum wage rates.

2. Salary-cai: or Salary Ceiling- mbtnodwhere the wage adjustment is to beapplied to employees receiving a certain

words,workersalreadybeingpaidmore

than he existingminimum age up o acertain mount tated n theWageOrder)arealsogiven wage ncrease.

Wage Distortion - a situationwhere anincreasen prescribed age rates esults nthe eliminationor severe.contractionofintentionaluantitativeifferencesn wageorsalary ates betweenand among employeegroups n an establishments to effectivelyobliteratehe distinctions nlbodiedn such

wage structurebased on skills, length ofservice r other ogical ases fdifferentiation.

Elements f WageDistortion HSED)1. An existing lierarchyof positionswith

correspondingalary ates;2. A Significanthangeor increasen the

salary ateof a lowerpayclasswithotjtacorrespondingncreasen the salary ateofa higher ne;

3. The liminationof the distinctionetween

the wogroupsor classes; nd4. TheDistortionxistsn thesame egion fthe country (Alliance Trade Unions v.NLRC, GR No. 14A689,February17,2004).

Employer igally Obtigedo CorrectWageDistortionTheemployernd he union hallnegotiateocorrecthe distortions.f there s nounion,heemployer nd the workersshall endeavoro

correct uchd stortions.Correctionof WageDistortionA. Organized stablishment

(Establishment ith un on)1. Employerndunion hallnegotiateo

correct he d stortion.2. Any disputearising herefrom hould

be resolved through grievance

sffips -."



LABOR AW

LABOR TANDARDS

Formula for Resotving Wage Distortion(MetropolitanBank and Trust Co. Employees

Union ALU-TUCPv. NLRC,GR No. 102636.Sept. 10, 1993 and Wage Order No. tV-02lssuedon 21 May 1991)

ExistingMin.

= o/oxprescribed - -D.istortionwage Increase Adjustment

Purpose: in order for the Board/Commissionto perform ts powers and functionsspeedily

Wthout regard to unnecessary nterventionsthat may tremendously ffect the wage-fixingfunctions (Poquiz,2OO5)

CHAPTER VI. ADMINISTRATION ANDENFORCEMENT

ART. 128: VISITORIAL ANDENFORCEMENTOWER

5.

Note: Before the DOLE may exercise its

powers under Afticle 128, two importantquestionsmustbe resolved:1. Does he emplcyer-employee elationship

exist?2. Are there violations of the Labor Code or

of any labor aw?

DOLE'sprerogativeo determine he existenceof Er-Ee relationships not coextensivewiththe visitorialand-'enforcement ower. Suchdeterffiinations merelypreliminary,ncidentaland collateral o the DOLE's primary unctionof enforcing abor standardsprovisions.Thedeterminationof the existence of employer-emptoyee elationships still primarily odgedwith the NLRC. This is the meaning of theclause "in cases where the relationshipofemployer-employeetill exists' n Aft. 128 b).The existence of an employer-employeerelationships a statutoryprerequisiteo and alimitationon the power of the Secretary ofLabor, one which the legislative branch isentitled to impose. (People's Broadcasting v.

Secretaryof the DOLE, G.R. No. 179652,May8,2009)

The DOLE has QuasiJudicial Power. t bearsemphasis hat the DOLE, underArticle 106 ofthe LaborCode,as amended,exercises uasi-

Sample lllustration

Existingminimumwage is P 300 perdayEmployee's ailywage s p 350Mandatddwage increase s P 25 perday

Note: Wage distortion is non-strikeable.Staginga strike or this reason s a Molationofthe mandate of R_A. 6727 providing forvoluntary negotiatioirs and arbitration insolving wage distortion problems. (ilaw atBuklod ng Manggagawa v. NLRC GR No.91980,June 27, 1991)

Previous Pay Gaps Need NOT be RestoredWhile that is the aim, it need not necessarilvbe restored to the last peso. An appreciabtedifferentidl,a substantialor significantpay gapshould suffice as correctionof the distortioh(National Federation of Labor v.

.NLRC,OA

No. 1d3586,Juty 21, 1994).

ART. 125: FREEDOMTO BARGATN

The question of minimumwage is beyord thesphere of bargainingof the parties. t is notnegotiable. In view of R.A. 6727 nowincorporated into Arf. 125, what the lawprohibits is bargaining or wages below thefloor set by law or wage order. The worker istherefore reeto bargain or higherwages.

ART. 126: PROHIBITION AGAINSTINJUNCTIONProceedings of the Commission or theRegionalBoardsare beyond he reach of theinju.nction owers of judicial or quasi_judicial

bodies. theiefrom. o



Ssn 6e l @oltegefLeb2011CENTRALIZEDAROPERATIONS

any act,conditionr matterwhichmaybe

necessaryo determineiolationsr which

may aid in the enforcementf the Codeandofbny labor aw,wageorder,or rulesand egulations.

EnforcementPower (as amendedby R.A.ngq - powerof the Secretaryof Labor tocompel employer to comply with laborstandards upon finding of violationsdiscoverednthe course f the exercise f thevisitorial ower.

o Only claims where employer-employeerelationstillexist an'be overedo Includeshepower"tof"'

1. lssue ComplianceOrdersbased onthe indings f laboremploymentndenforcementofficers or industrialsafetyengineersmade n the courseof inspection, nd must observe7cardinal equirementsf due processin administrativeroceeding;

2. /ssue Writs of Execution for theenforcementf ordersexceptn cases

where the employer contests hefindings f the said aborofficers ndraises issues suPPorted bYdocumentary roofswhich were notconsideredn the course f nspection:

3. Order Work Sfoppage/Suspensionf' Operationshen non-complianceith

the law or implementingules andregulations osesgrave& imminentdanger o the health nd safetyof theworkersn heworkplace;nd

4. Conductheaings within 24 tours to'

determine hether:?. An order for stoppage ofworldsuspensionof operationsshallbe iftedor not and

B. Employerhallpay he employeesconcernedheir salariesn casethe violations attributableo hisfault.

1"\x:t,

11"i i ..- ' , : .r' ' ;: ;l '

;- ' ; . 1' '.' , ::

Procedute:

Complaintor Routine nsPection

ActualnsPection(lnspectorists heviolationnhis

checklist)

lnspector'sinding fViolation

lssuanceof ComPlianceOrder

In caseof non-compliance:ssuanceof

Writ of Non-Comoliance

In casepartydisagrees ithRD's

findings

(&10daysw/ Sec.ofLabor)

(certiorariwithheCAwithin 0 da

51



LABOR AW

LABOR TANDARDS

ART. 129:RECOVERYOF WAGES,StMpLEMONEYCLAIMSAND OTHERBENEFITS(APER)1. The ggregate money claim of each

employeeor househelper oes not exceedP 5,000;

2. The claim is presentedby an employeeorpersonemployed n domesticor householdserviceor househelper,

3. The claim arises rom employer_employeerelations;and

4. The claimantdoesnof seek geinstatement.

Note.' In the absenceof any of the requisites,

it is the LaborArbiterwho shallhaveexclusivejurisdictionoverclaimsarising rornemployer_employee relations, except claims

-for

employees'compensation,SSS, philhealthand maternitybenefits,pursuant o Article217of the Labor Code.

.If_"

proceedings before the RegionalOffice shall be summary and non_liti-giousin nature.

Adjudicatory PowerThe Regional Director or any of his dulyauthorized hearing officer is umpowerudthrough summary proceedingand after duenotice, to hear and decide cases involvinorecovery of wages and other monetarvclaimland benefits, ncludingegal nterests.

Note: Arfs. 12&129 apply only in the contextof employmenirelationship.A regular court,not DOLE or NLRC, has jurisdictionover theclaim of an independentcontractor o adjustthe contractof lee (Urbanes,Feb. 19,2@3).

TITLETHREE:WORKTNG Oi{DtTtONsFOR SPECIALGROUPSOF EMPLOYEES

CHAPTER . EMPLOYMENT F WOMEN

Constitutional Provisions protectingWomen

Art. ll, Sec. 14",TheState recognizeshe roleof women in nation-building, nd shall ensurethe fundamental equality before the lay ofwomenand men.

Art. Xlll, Sec. 3, 1"tpar. The State shall affordfull protection to labor, local and overseas.organizedand unorganized,and promote ul lemployment and equality of employment

opportunitiesor all.

Att. Xlll, Sec. 14. The State shall protect the

/ t

.'ri,

of Labor, within10 calendardays; DecisionmaY beelevated to theCourt ofAppeals (CA)throughcertiorari

within5 calendardays

of Labor orhis dulyalthorizedrepresentativewho may or

may not be aRegional

Director or anyduly authorizedhearing ffcer ofDOTE

Vrsitorial andenforcementpowerexercisedthrough routineinspections of

maters involvingrecoveryofwage

r\eYqil 9>

existenceof Er-Eerelationship

relationship notnecessarysince

it should notincludea claimfor reinstatement

52



$en Sela @ol[egefLtb2011CENTRALIZEDAROPERATIONS

Coverage

It coversALL employers,whetheroperating orprofitor not, includingcharitable, eligiousandeducationalnstituti6nsSec. 1, RuleXll, BookIII, IRRof LC).

Exclusions1 Government-owned

corporations; nd2. Employersof househelpersand those in

their personalserviceonly insofar as saidworkers are concerned. (Sec. 1, Rule Xll,

Book lll, Rules lmplementing he LaborCode

ART.131:PROHIBITIONS ,. ' : , ,

Prohibitions under Art 130Apply EU-PMS-Fo)1 ln cases of actual or

shall NOT

impending

lmergenciescausedby serious ccident,flre, lood, yphoon, adhquake,pidemic,or otherdisasters r calamity,o prevent

lossof life or property, r in caseso'f orcemajeureor imminentdanger to publicsafety;

2 In casesof Urgentwork o be performedon the machineries,equipment orinstallation,o avoid eriousosswhich heemployer ouldotherwiseuffer;

3 Where the work is necessaryo lreventseriousossof erishable oods;

I Where the woman employeeholds aresponsibleposition of flanagerial or

technicalnature, or where the womanemployee as been engaged o providehealth ndwelfare ervice:

5 Where he natureof the work requireshemanual $kill and dexterityof .women

workers and the same cannot bepeformedwith equalefficiency y maleworkers:

i Where the women employees areimmediate members of the lamilyoperating the establishment or

undertaking;nd-.U{eq. Ettpr,.analogons,oasesxemptedby the Secretary f Labor n appropriateregulations.

Exemptionof a Call Center-ne

Secretary f Labor and Employment as.;rlized'Article 3l to exempt allcentersrom::e prohibitions f Arficle13O Subjecto the:onditionshata Safe and healthfulwork conditionsand

adequate acilitiesas sleepingor restquartershallbeprovided,

: Pregnantwomen and nursingmothers

company physician shall certify to their

fitness for night work, specifying thepregnancy period when they can safelywork. (Azuena,2010)

ART. t32:FACILITIES ORWOMEN

The Secretary f Labormay requireemployersto:(STAN)1. Provide $eats proper for women and

permit hem to use'the geats when theyare free from work or dfring office hours

provided he qualityof the work will not becompromised;

2. Establish separate Toilet rooms and

lavatoriesor men andwomenand provide

at least a dressing oom or women;3. Determineappropriateminimum ,ge and

other standards for retirement ortermination n specialoccupations uch asthose of f lightattendants nd he like;and

4. Establisha lursery in the establishment.

. -if the'women are able to obtain betterterms and conditions hroughnegotiationsor voluntarygrant than what are provided

therein, he same are not prohibited Sec.

12, RuleXll, Book lll, IRR of LC).

ART. 133: MATERNITY EAVEBENEFITS

Maternity Leave UnOer the SSS Law (See

dlscussionunder SSS Law)o A femalemember,who neednot be legally

married,who has paidfor at least hree (3)monthly contributions in the 12-monthpeiod immediately Preceding thesemester of her childbirthor miscarriageshall be paid a daily matemity benefitequivalent o 100% of her average dailysalary credit for 60 days for normaldelivery or 78 days, in case of caesariandelivery;

and controlled



LABOR AW

LABOR TANDARDS

Paternity Leave (R.A. 8187,July 5, 1996)(See dlscussionunder paternity LeaveAci.)

Purpose: To enable the husband to lendsupport to his wife during the period ofrecovery and/or in the nursing of the newlybornchild.

Conditions for Enti0ement(E-cAB-F)1. He is an Employeeat the time of the

detiveryof hischild;2. He is Cohabitingwith his spouse at the

time she gives birth or suffers amiscarriage;

3. He has Applied or paternity eavewith hisemptoyer;and

4. His wife has given pirth or suffered amiscarriage.

5. Covers only the first Four deliveries ormiscarriages.

Nbte: The term "wife" refersto the avvfulwife,which means the woman who is legahymaried to the maleemployeeconcerned.

??ttgred Woma4 Leave / BWL (tJnder RA9262, Anti Violencc Against U)or.n"iaheir Chitdren Act of 2004or AVAWC lawf

r Allows he victimof violencewhcih mav bephysical,sexualor psychological,o applyfor the issuanceof a',,protecti-onrderJ

- -

r lf the victim s an employee, he is entiileoto a paid teaveof up to TEN (t0) DnyS inaddition to other paid leaves under the

, Labor Code, other laws, and othercompanypolicies.

o The employeehas to submita certification

from the punongBarangayor rcagawaO rprosecutoror theCler[6r couri naianaction nderM No.9262 asbeeniledandpending.

. Usage f the 104ay eave s at theoptionof thewomanemployee.t shallcov"?n"ctayor dayswhenshewill have o attendto medical nd egal oncerns.

. ;,i.Leavesncrtawiled of are,ndmcumulative.anonotconvertibleo cash

.ln employer ho denies he applicationfor BWL or who prejudices

"ri'Grso;ssisling he woman- mployee i"V-0"held iable or discriminationnd violationof RA 9262or its implementingutes-anJregulations

o Enforcementf theentiflemento theBWLfails within he jurisdiction f tne bOf_Er. RegfonalDiredorunderAtticte12gof theLaborCode.

Two Month's Leave under the Magna Cartaof Women (Special Leaveor Sugical Leave)

See dr'scusslon f MagnaCartaof WomenRA971O) nder SociatLegislation af t

ART.134:FAMILYPI-ANNING ERVICES

Employerswho habituallyemploy more thantwo hundred (200) workers n any localityshallprovide ree family-planning ervices o theiremployee$ and their spouses ;yrhich shallinclude,but not limited o, the alplication oruse'of contraceptivepills and intra_uterinedevices. (Sec. 11, Rule XIl, Book \il, Rutes

lmplementing the Labor Code)

ART.135: DISCR|M|NAT|ONRoHIBITED

It shall be unlaMul for any employer todiw-riminateagainst any woman employeewith respest to terms and conditions ofemployment olelyon accountof hersex.

Reasoni Aft. llt, Sec. I of the Constitutionmandatesan equalprotection f the laws.Arf.Xlll, Sec.3 assuresFilipinoworkersof equat

work opporrunity.

Acts of Discrimination(PEHD)1. Discimination in pay - payment of lesser

compensation o a female employee asagainsta maleemplovee:

2. Discimination in Emsiloymentoppoftunity -favoringa male employeeover'a femileemptoyee with respect to promotion,assignment, transfer, trainingoplcortunities,tudyandscholarship rantisolelyon accountoftheirsexes:

3. Discimination in fljing - favoring a maleapplicantwith respect o hiringwhere theparticularob can equallybe handledby a

#i r

54



5en Dels @ollagefLeb2011CENTRALIZEDAROPERATIONS

No-Spouse Employment Policy

LPolicybanningonlyspouses rom workingin the same company.

2. May not facially violate Article 136 of theLabor Code but it creates adisproportionate ffectand the only way itcould pass judicial scrutiny is a showingthat it is reasonable despite thediscriminatory albeit disproportionateeffect.

Exception:Bona Fide Occupational Qualification Rule- if the employercan prove hat the reasonabledemandsof the business equirea distinctionbased on marital status and there is no betteravailable or acceptable policy whichr.wouldbetteraccomplish he businesspurpose(StarPaper Corp. v. Simbol, GR No. 164774,Apil12,2006).

ART.137:PROHIBITED CTS

t shallbe unlaMul or an employer:PPFF):

1. To discharge ny womanemployed y himfor the purposeof preventingsuch womanfrom enjoying he maternity eave, acilitiesand other benefits provided under theCode;

Z To discharge a woman employee onaccount of . her pregnancy, or while onleave or in confinement due to herpregnancy;

-t. .To dischargeor refuse he admissionof awoman upon returning o her work for fear

that she may be pregnant;and4 To discharge any woman or child or any

other employee for having liled acomplaintor having estifiedor beingaboutto testifyunder he Code.

\ote: The employee's failure to formally.form her employer of her pregnancycannot- considered as grave misconduct directlyrnnected to her work as to constitute jusl

=use of her separation. (Lakpue Drug, lnc. v.

ART.138: CLASSIFICATIONF CERTAIN$IOMENWORKERS

-ti'rywoman who is permitted o work orzuffered to work, with or withoutlrnpensation, in any night club, cocktailEidnge,massage clinic, bar or similarsstablishment, nder the effectivecontrol ore.pervisionof the emflo;|er or a substantial

:eriodof timeas determined y the SecretaryI Labor,shallbe.considered s an"employee:r such establishment'forpurposes f labor

i

Note: Guest Relations Officers under the

effective ontrolor supervisionf the employer

may form labor organizationsor purposesofcollective bargaining. There is an Er-Eerelationship between the nightclub and theguestrelationsofflcers.

. ANTI-SEXUAL HARASSMENT ACT OF1995 (See discusslon under Anti-sexual

HarassmentLawl

CHAPTER I. EMPLOYMENIEOF INORS(See discussion under Anti-Child Labor Act,R.4.9231)

ART.139: MINIMUMEMPLOYABLE GE'

General Rule: No child below 15 shall beemployed.

Conditions of the Employment of a GhildBelow 151. When the clild works directly under the

-sole responsibilityof his/her parents or

legal guardianwho employs membersofhiVher family only under the followingconditions:a. Employment does not endanger the

child's ife,safety,healthand morals;b. Employment does not impair the

child'snormaldeveloPment; ndc. The parent/legal uardianprovideshe

child with the Primary and/orsecondary education Prescribed bYDept. of Educ.

2. Where the child's employment .orparticipation in public entertainmentorinformationhroughcinema, heater, adio,or television s essential, rovided hat:a. Employment does not involve

.advertisements or commercialspromoting alcoholic beverages,



LABORLAW

LABOR TANDARDS

Non-H:;rardousWork or Undertaking - Onewherethe employee s not exposeOo inv rlst<which constitutesan imminentOanger

o nissafety and health.

HazardousWorkplaces (ECE_Hp)1. Natureof the work exposes he workers o

dangerous environmental elements.contaminantsr workcondit ions:

2. Workersare engaged n constructionwork,logging, fire-fighting, mining, quarrying,blasting, tevedoring,Ooct< oik, Ou"p_s"l

_ fishing,and mechanizedarming;3. Workers are engaged in the riinufacture

orhandling of gxplosives and other. pyrotechnic roducts;

4.'Workers

use or are exposed o heaw orpower-driven machinery or e{tipment;and

5. Workers use or are exposed to power_driven ools.

Hours of a Working Child1. A child beloryv 5 years of age may be

allowed o work for not more han 20 hoursa week. Thework shall not be more han 4

hoursanygivenday.2. A child15yearsof age butbelow1g vearsshall not be allowed or more han g hoursa day, and in no case beyond40 hdursaweek-. No child below15 yearsof age shail

be allonaredo work betweenl:O0 inthe eveningand 6:00 n the morningofthe folloving day and no child 15years of age but below 1g shall beallowed to work between 10:00 in theeveningand 6:00 in the morningof thefoftowingday (Sec. 3 R.A. g23i).

CHAPTER I1I. EMPLOYMENT OFHOUSEHELPERS

ART. 144-152:RTGHTS FHOUSEHELPERS

. Cost of which shall be oart ofhousehelpeds compensation,

UNLESS here is a stipulation o thecontrary

5. Contract for householdseMce shall notexceed2 years;. Renewable, however, from year to

year.

Just and humane rebtment;Right not to be required o fiork for morethan10 hoursa day;a. lf the househelper agrees to work

overtime, and there is additionalcompensation, the same ispermissible.

b. Householder annotrefuseovertime fnature of work requires overtime(compulsory vertime).

Right to four days vacation each monthwith pay. '1f

the'helper does not ask for thevacation, he numberof vacationdayscannot be accumulated,he is

entifledonly o its monetaryequivalent.

Funeral expenses must be paid by theemployer if the househelper hai norelativeswith sufficientmeans n the placewhere he headof the family ives,

10.Termination nly or a just cause;11. Indemnity or unjust erminationof service:

and12.Right to demand from the employeran

employmentcertification s to natwe and

duration of service and efficiency andconduct of the househelper uponextinguishrnent f the service elation.

4l -

2.

3.

loryassignqent o non-householdorKKeasonabteompensatiohminimumashwage)Lodging,ood,andmedical

ttendance:a. The rightof househelperso medicalattendance, exclusive' ofhospjtalization,s deemedsubject othe 'rule

of necessity,, hichmeansthat t depends pon hecircumstancessurrounding ach case. (Cuajaov.thu? Lo Tan, GR No.' tJazla,September9, 196?)

11 dT 18 V.earstd,an opportunityoretementaryducation:-liil

56







Ssn frebs@ollegc f l^tu2011CENTRALIZEDAROPERATIONS

lnsuranceund.TheEmployer's bligations

merelyo payhiscounter ontributiono

theSSS.

Note: The governing aw is determinedby the

date on which the claimant contracted his

illness. Where an ailment supervenedbefore

the new Labor Code ook effect, he governing

law is the old Worhmen'sCornpensationAct, lI

it occurs after Jan. 1, 1975, he new lav/ onEmployee'sCompensationapplies (Azucena,

2010).

ART.167DEFINITION FTERMS

InjuryAny narmful change in the human organismfrom any accident arising out of and in thecourseof employment.

Conditions for Compensabilityof lnjuries1 The employeemust have been injuredat

the placewhere the work requireshim tooe:

2. the employeemust have been peiforminghis official unctions;

3. lf the injury is sustainedelsewhere, heemployee must have been executinganorder for the employer (Sec 1[a], Rule lll,Amended Rules on EmployeesCornpensafion);and

4. Theinjury was not due to the employee's

intoxication,willful ntention o injure or killhimselfor another,notorious egligence ras otherwise provided under this Title(4ft.172, Labor Code).

Note: Injuries incurred by a health workerwhile doing overtimework shall be presumed

work-connbcted (Magna Cafta for PublicHealth Workers).

Note: Under the .twenty{our-hour fluty' doctrine,'menihits,of thdtnati6napolicemby '. '

the natureof their functionsare technicallyondtfty 24 hours a day except when they are onlacation leave. Death arising from police

service, althorigh nqt in official line of dnty iscompensabf (Azucena, 2010).

SicknessAny illness accgpted as an occupationaldisease listed by the Commission or any

illne'ss aused.byerlploymentsubject o proof

that the risk: of cohtrading the same isincreasedby working conditions.

Conditions for GomPensabilitY of

Occupational Disease and Resul$ng

Disabilityor Death

1. Emplbyee's work must involve the risk

describedherein;2. The disease was contractedas a result of

the employee'sexposure o the described

risks,3. The disease was contractedwithin the

periodof exposureand undersuch actors

necessaryo contract t; and

4. Therewas no notoriousnegligence n the

partof the emPoYee. e

Note: Under Sec 1(b) Rule tll implementingPD 626, as amended, for the death to be

compensable,claimantsmust prove that (a)

his sicknesswas the resultof an occupational

disease istedunder Annex A of the Rules of

EmployeesCompensation,or (b) the risk of

coniracting he diseasewas increagedby his

working ,conditions (Banios v. Enploy??':

CompdnsationCommission' GR No. 148089'

March 24, 2006)-

"lncreased RisK'Jobs1. Peace-keePingohsi

2. Job of guardingProPertY;3. Job involving carrying of money and

valuables,4. Job eiposing employee o direct contract

with lawlesselements; 'e. bartender,bus

or taxi driver, conductor (Batangas

Transportation Co. v. Vda De Rivera, L-' 7658,MaY8, 1956);

5. Job exposing he employeeo illness;and

6. Job involvingprolongedsittingdown anoputting off urination- 8 arios v. Employee's'Compensation

Commission, GR No'

148089.March 24, 2OO6)

Test of ComPensabilitYFor increased risk theorY to apply in

int must

andrthat IclaimnotGarut



LABORLAW

LAEOR TANDARDS

be9omesapplicable panotesv ECC, GR No.L-64802, Sepfember25, lgBS|

DeathLossof life resultingrom njuryor sickness

Disabil ityLoss or impairment f a physicalor mentalfunction esultingrom njuryor sickness.

Direct Premises RuleGeneral Rule: The accident should haveoccurred at the place of work to becompensable.

Exceptions:1-...lngess-Eg ess/proximity Rule*ne..n the injuy is sustained when theemptoyee s proceedingo or from his work inthe premises of the employer, he inlury'iscompensable.

2. Going to or Corning from WorkWhen the injury is sustatined when theemployee s proceedingo or from his work inthe premises of the employer,

the injury iscompensable;a. The act of the employeeof going to, or

coming from, the.workplace, muit haveoeen a continuingact, that is he had notbeen diverted therefrom by any otheractivity; and he had departed fiom his

,usualroute o, or from,hisworkplace;

b. An employee on a special errand thatmust have been officialand in connectionwith hiswork:

Extra Premises Rule (TheShuttte Bus Rule)The company which provides ne means-"lftransportation n going to or comingfrom theptace of work is liable o the injurysustainedby the employeeswhile on boaid iaid meansof transportation.

Special Errand RuleInjury sustained outside the companvpremises s compensable f his Oeinqoix-_icoveredby an officeorderor q {ocator"slipr;passfor officiAlbusiness. ' _ ".:

,Dual Purpose DoctrineAllcws.the compensationwhere a special riowoutd have o be madefor the

"rpl6y"rliinmployee had not combined the'se;ti; ;o;the emptoyerwithhisgoingor *ri"giiip;

'' '

Special Engagiment Rule

-lovgrs field trips, outings, intramuralsandpcntcs when initiatedand sanctionedby the

employer,

Positional and Local Risks Doctrinelf an employee by reason of his duties isexposed o a specialor peculiardanger fromthe elements, hat is, one greater nan tnat towhich other persons in the community areexposedand an unexpectednjuryoccurs, hein1urys compensable.

CHAPTERI.COVERAGE LIABILIry

ART.168COMPULSORY OVERAGE

Emptoyees'Compensationdiv (ECL) appliesto all employers,public or private,and to al l

emptoyees, ublicor private nduding casual,emergency, temporary, or substituteemployees.

An _employee ho is not over 60 yearsof ageand paying contributions o qualify for tf,eretirement or life insurance benefitadministered y the systemshall be subject ocompulsory overage.

ARL 170 EFFECTIVITY DATE OF

COVERAGE

Theemployer s coveredcompulsorilyromthefirst day of operationand the employee romthe firstday ol employment.

ART.172LIMITATIONS F LIABILITY

No Compensation if the Injury, Death orDisability is the Result of the Employee,s(rwNo)

1. lntoxication;2. Wilful ntentiono injureor kill himselfor

4.

another:Notorious egligence; rQtherwiseprovidedby the LaborCode.

work-



$sn ffeba@olleget Lsb2011CENTRALIZEDAROPERATIONS

lnjury or Death n the Course ot AssaultRules1. When the injured was the unlawful

aggressor, NOT compensable MabuhayShipping Seruices, lnc. et al GR. No.94167,January21, 1991);and

2. When the injured was the victim of theassault and it occurred in the course ofperformance of official functions,compensable Lentejas v. ECC, GR No.89168,May 14, 1991).

Notorious NegligenceDeliberate ct of the employee o disregardhis

own personalsafety

ART. 173 EXTENTOF LtABtLlrY1 ;,. :

Ruleson Simultaneous Recovery1. Simultaneous ecor/eryunder the Labor

Code and the Civil Code cannot be made.The action is selectiveand the employeemay choose o fi le he claimundereither.But once the election is made, theclaimantcannotopt for other remedy.

2. Simultaneous recovery under the LaborCode and the SSS can be made (DOJOpinion No. I, Jan.12, 1990) since PD1921 has lifted the ban i.rrr imultaneousrecovery.

State lnsurance FundAll coveredemplolees are required o remit oa common fund a monthly contributionequivalento 1% of tlre monthly salary creditof every covered emplpyee. The employeepays no contribution to the fund. Any

agreemento the contrary s prohibited.

ART.174LIABILITYOF THIRDPARTIES

Third PartyOne upon whom no liabilitycould entail underthe law; One who is not an employer of theinjured employee or a stranger to theemployment elationship ndwho may be heldiable at common aw for his negligencewhichreq$ts,i -eqi$ ry.,to.tne$pJoyeq,,";,";,, ,.,

l-egal SubrogationWhen the disabilityor death is caused by theqrcumstancescreatinga legal liabilityagainsta third party, the disabled employee or the,dependentsn case of his death shall be paidby he System GSISor'SSS, as the case maybe). In case the benefit is paid, the Systemdrall be subrogated to the rights of theddsabled mployeeof the depenCents,n caseC his death, in accordancewith the generalaw.

Excessive RecoverYWherethe system(GS|Sor SSS, as the case

may be) recovers from such third party

damages n excess of those paid or allowedunder he law, such excessshall be delivered

to the disabled employee or other persons

entitled thereto, after deducting the cost of

proceedings nd expensesofthe System.

Double RecoveryThe injuredemployeecannotclaim payment

'twice for the same injury from both the thirdpartyand the GSIS or SSS,aas he case may

be (Albav. Bulaong,GR Nos, L-10308and L'

10385, pril8& 30,1957).

.:HAPTER . MEDICALBENEFITS

'-.C. BenefitsSummarizedl. Services

a. Medical Services, appliances and

suPPlies Nt 155and Rule Vlll, ECC

Rules)b. Rehabilitation eMces (Art. 190 and

* Rute X, Ecc Rules)

a. Temporary total disability (Ad. 191and RuleX, ECC Rules)

b. Permanent total disability (Art. 192

and RuleXl, ECC Rules)

c. Permanentpartial disabiltty Art. 193

and RuleXll, ECC Rules)

d. Death (Art. 194 and Rule Xlll, ECC

Ru/es)FunerafBenefit(Att. 194[d]and RuleXlV,

ECC Rules)

( I-IAPTER I. DISABILITYBENEFITS

i isability Categories;

1. Temporary Totallf the result of the injury or sickness, the



LABORLAW

LABORSTANDARDS

Period of EntiflementThe income benefit shall be paidbeginning on the first day of such

disability. lf caused by an injury orsickness, t shall not be paid longer han120 consecutivedays except where suchinjury or sickness still requires medicalattendance beyond 120 days but not toexceed 240 days from the onset ofdisability, in which case, benefit fortemporary total disability shall be paid.However, the System may declare thetotal and permanentstatus at any timeafter 12O days of continuous emporarytotal disability Azucena, 2010).

RelapseAfter.,anemployeehas tully recoveredasduly certified, the period covered by anyrelapse,which results n disabilityand isdetermined o be coi-rrpensable,hall beconsidered separate from the perioocovered by the original disability (/CCResolutionNo. 1029,Aug. 10, 1978)

2. Permanent Totallf as a result of the injury or sickness, heemployee s unable o performany gainfuloccupation . for a continuous periodexceeding 120 days.

The following disabilit ies shall beconsideredoermanent otal:a. Temporary total disability for more

than 120 days, except as may

otherwise be provided;b. Complete loss of sight of both eyes;c. Loss of two limbs at or above the

ankle or wrist;d. Permanentcompleteparalysisof two

limbs;e. Brain injury resulting in incurable

imbecilityor insanity; ndf. Cases determined by GSIS or SSS,

as the case may be, and approvedbythe Commission.

. Period of Entitlement ,: r.'The full monthly income benefit shall bepaid for all compensable months ofdisability.

Suspension of lncome BenefitsMonthly ncomebenefitcan be suspendedunderANY of the followingconditions:a. Failure of the employee to present

himself or examination t leastonce ayear uponflotice by the System;

b. Failure to submit a quarterlymedicalreport certified by the attending

c. Complete of full recovery from hispermanent ecovery; r

d. Upon being gainfully employed (Sec.

2, Rule Xl Amended Rules onEmployees'Compensation).,

3. PermanentPartiallf as a result of the injuryor sickness, he

employeesuffers a permanentpartial oss

of the use of any part of his body (Abaya

v. ECC, GR No. 64255,August 1989).

Effect of Gainful EmploYmPntFor the purposeof entitlement o income

benefits or permanentpartial disability,acovered employee shall continue to

'receive the benefits provided thereunder

even if he is gainfully employed and

receiving his wages or salary (Sec. 1[b],

Rule Xll, Amended Rules on Employees'

Compensation).

Note: Benefitsdue to an employeedue to

work-related sickness shall be provided

until he becomes gainfully employed,oruntil his recovery, or death (Manioso v.

GS/S, GR No. 148323,April29, 20O5).

Distinguished f rom PermanentTotal

The test of whether an employeesuffers

from'rermanent total diability" is a

showingof the capacityof the employee o

continue performing his work

notwithstandinghe disabilityhe incurred

(Vicente v. ECC,6R No. 8ffi24' January

2s,1e91).

Earning Gapacity May Still Be "lmpaired"

Even if Earning is HIGHERAfter the Injury

Employee who receives higher wages after

injurythanwhat he earned before may still

have suffered an impairment of earning

lookedup

andshall

for theplaintiff

of

*eM s##A



Sm SeBa@ottege f LetD2011CENTRALIZEDAROPERATIONS

of supporting and maintaining herself inaccordancewith her station n life. A person

may be dependentalthoughable to maintain

herself without any assistance from thedecedent (Castillo v. Cadwallader GR No.41261, September26, 1934).

Dependents1. Legitimate, legitimated, and legally

adopted or acknowledgednatural child

who is unmarried, ot gainfully mployedand not over 21 years of age or over 21yearsof age provided hat he is incapableof self-support ue to a physicalor mental

defect whichis congenital or acquiredduring minority;2. Legitimate

-spousliving with tle

employee;and3. Parents of said employee wholly

dependentupon himfor regularsupport.

Benefits1. For life to the primary beneficiaries,

guaranteed or five (5) years;2. For not more than 60 months to the

secondarybeneficiariesn case there are

no primarybeneficiaries; nd3. ln no case shall the total benefitbe less.

thanP15,000.

BeneficiariesBeneficiaries hall be determinedat the timeof the employee's death (Sec. 1[a], Rule XV,Amended Riles o -, Employees'Compensation).1. PrimaryBeneficiaries

a. Dependent spouse until he or sheremarries: andb. Dependent children (legitimate,

, legitimated, natural born or legallyadopted).

2. SecondaryBeneficiariesa. lllegitimate children and legitimate

descendants;and rb. Parents, grandparents and

grandchildren.

i : . - . s t . . , . - - \ ' . . , ' .

Primary enefi iaries'stiiltavd piiority'itaim

to deathbenefits versecondary eneficiaries.Wheneverhereare primary eneficiaries,odeath benefit shall b€ paid to secondarybeneficiaries.

If herearenoprimary eneflciariest he imeof death,he deathbenefit hallbe paid o hissecondary eneficiaries.lf thedeceasedmployee asno beneficiariesat the imeof hisdeath,he deathbeneftt hallacciueo the Employees'ompensationund

(Sec. 2, Rule XV, Amended Rules on

Employees'ComPen ation).

Persons Entitledto Funeral Benefits1. Surviving pouse;2. Legitimate child who spent for funeral

services,or3. Any other Person who can show

incontrovertible roof of havingborne he

funeral expenses (Rule Xl, Amended

Ruleson Employees' ompensation).

CHAPTERVIII. PROVISIONSCOMMONTO

INCOME ENEFITS

ART.201PRESCRIPTIVEERIOD

Despite the three-year prescriptive,-period

expressly provided in Att. 201 a

compensation laim may be flled beyond-this

but'before

the lapse of the tenth year from

accrual of the cause of action, applying

Aft.1144 of the Civil Code (Manila Railroad

Co. v. Perez, GR No. L-21071, June 29,

1s:5).

The three years have to be counted rom the

time the employee gst his earning capacity,not from the timethe illnesswas discovered

(ECC v. Sanico GR No. 134A8, December

17 ,1999 )"

CHAPTER IX. RECORDS, REPORTS AND

PENALPROVISIONS

ART. 206 NOTICE OF SICKNESS' INJURY

OR DEATH

General Rule: Notice of sickness, njuryor

death shall be given to the employerby the

employeeor by his dependentsor anybodyon

his behalfwithin5 days rom he occurrence f

the contingency.

red if:

. 6 3



LABOR AW

LABOR ELATIONS

TITLEONE: POLICYAND DEFINITIONS

Labor Relations - the interactionsbetweenthe employer and employees and theirrepresentatives nd the mechanismbv whichthe standardsand other erms and cohditions

of employmentare negotiated,adjustedandenforced. (The Labor Code with Commentsand Cases20O7,Azucena, ,tol. t, p.10)

Labor Relations Laws - define the status.rights, and duties and the institutionalmechanisms hat govern the individualandcollective interactions of employers,employees or their representatives.(Everyone'sLabor Code,Azucena,2ffi7, p.4\

Note: Absentan employer-employeeelation,there s no laborrelation o speakof. lf there sno Er-Ee relationshipbetween the parties,there s no basis or organizingor purposesofcollective argaining.

"Labar Relations" rnay be distinguished from"labor standards" n that the latter is that partof labor law which prescribes he minimumtermsand conditions f employmentwhich heemployer s required o grant o its employees.(The Labor Code of the philippines

Annotated2005,Chan, Vol. lll


ART.211:DECLARATION F PoLIcY

Collective bargaining process is possible onlywhenthere s a labororganization,.e .1. Labor union; or2. Employee assocjafion.

r i ' , , ,

Labor relations policy under the LaborCode is embodied in Secffon3, ArticteXiltof the 1987Constitutionwhich guaranteesto allworkers heirright,amongothers, o:a. Self-organization;

b. Collectivenegotiations;

bargaining and

c. Peaceful and concerted activitiesincluding the right to strike inaccordancewith law; and

d. Participate in policy and decision-makingprocesses ffeSing heir rightsand benetitsas may be providedbylaw.

Parties to Labor Relations Cases -

1. Employee'sorganization;2. Management;3. The public - always to be considered in

dispute between abor and capital,and ithas been held that the rights of thegeneralpublicare paramount; nd

4. The Stde.

Note: Employerand employeesare ACTIVE

parties while the public and the state ,arePASSIVEparties. Poquiz,2006,p.3)

Principle of Non-Oppression - mandatescapital and labor not to ac't oppressivelyagainsteach other or impair he interest andconvenience f the public. The protection olaborblausen the Constitutions not designed

EIGCUTIVECO}I*IITTEE:FTEKIEL oSHUA VILLENAovenll chairperson,MINISTERmbtses ou chairperson or academks, DJoANlvlE IoMARE JUNASAchakperson or hotel operations,MARIEMICAELA tA, ANA vice-chairpersonor operationr MIKHAILMAVER|cK UMACDER ke-chairperrcn or secretariatJACKIE ou LAIVIUGke-chairpersonor finance,DIANAJEANTUAzoil vke.chairperson or edp, JASSENMLPH LEE ice.chairpersonor logistks

5UBJECT OMMITTEEHARoLD lnlsrAN TALLEDOubiectchak,AYLAHERAZADEALENDABssistant ubjectchair,plNKyvELoso edp, NEoVALERIoaborstandards,MARK ESTERAMoNDoNG abor elations,DoNNAFRANCESLADEsochi regishiion

third

the disputedisputantso



Ssn #eDa€ollegeofAstn


Arbitration thesubmissionfa disputeo animpartialersonor determinationn he basisof evidence ndargumentsf the parties. he

arbiteisdecision r awards enforceableponthe disputants.This maybe voluntaryorcompulsory.

For 4ft. 211 (9.), see Ad. 255 for morediscussions.

CHAPTERI.DEFINITIONSART.212: EFINITIONSEmployer1. Onewho employshe services f others;

one for whom employees ork and whopays their wages or salaries (FeatiUniversityv. Bautista,GR No, L-21278December 27, 1966\ +*r-i,.-

2. Any person acting in the interest of anemployer, direetlyor indirectly.The termdoes not include a labor organizationorany of its officers and agents, EXCEPTwhen acting as an employer. The merefact that respondent s a labor union doesnot mean it cannot be considered anemployer for persons who work for it.Much less should it be exemoted fromlabor laws. (Eautistav. Inciong, GR No. L-52824, March 16, 1988)

Emptoyee includes:CED)1. Any person n the employof an employer,2. Any individualwhose work has geasedas

a result of or in connection with anycurrent labor dispute or because of anyunfair abor prdctice f he has not obtainedany other substantially equivalent and

regularemployment'3. One who has been g[ismissedrom work

but the legality of the dismissal s beingcontested in a forum of appropriatejurisdic{ion Q.A. No. 4A03, March 15,2@3).

The term shall not be limited to theemployeesof a particular mployerunlessthe code explicitly tates.

' )

1 : - '

Types of Employees under the Latnr Code1. Managerial2. Supervisory3. Rank-and-file

Labor Organization - any union orssociation of employees which exists inwhole or in part for the purpose of collectiveoargainingwith employersconcerning ermsandc-onditionsf'employment.

Legitimate Labor Organization - any labor

organization which is duly registered with

DOLE: the term includes a local/chapter

directlycharteredby a legitimate ederationor

nationalunionwhichhas beenduly reported o

the Department n accordancewith Section2,Rule Vt, Book V, IRR of LC (See notesunder

Atts. 234 and 242, LC).

Company Union - any labor organization

whose formation, function or administration

has been assistedby any act definedas ULP

under he LaborCode.

Bargaining Representatiye - means a

legitimate abor organizationwhether or not

employedby the emploYer.

Labor Dispute - includesany controversyor

matterconcerning:1. Termsor conditionsof employment;OR

2. Associationor representationof persons n

negotiating, ixing, maintaining,changing

. or arranging he terms and conditiortsoi

employment.

REGARDLESS of whether the disputants

stand in the proximate relation of employer

and employee.

Test: Depends on whether it involves or

concerns erms, conditionsof employment,or

representation (SMC Employees Union'

PTGWA v. Bersamira, GR /Vo. 87700' June

13, 1990).

Even the questionof employer-employeeEr.

Ee) relationshipcan be considereda "labor

dispute".

Types of Labor DisPutes1. LaborStandardsDisputes ComBeWo)

of theagent of



LABORLAW

LABORRELATIONS

bargainingunit which is the majorityunion);

c. Bargaining disputes (e.9. refusal to

bargain (ULP); bargainingdeadlock;economicstrikeor lockout);d. gontract administration r personnel

policy disputes (e.9. noncompliancewith CBA provisions (ULp if grossnon-compliance with economicprovisions); disregard of grievancemachinery; violation of no strike/nolockoutagreement); nd

e. Employment tenure disputes (e.g.non-regularization of employees;

illegal termination; non-issuance ofemploymentcontract).

Parties toaPispute1. PrimaryParties

a. Employerb. Employeesc. Union

2. SecondaryPartiesa. Voluntaryarbitratorb. Agenciesof DOLE BLR,VAC)

c. NLRCd. Secretary fLabore. Officeof the President

Managerial Employee - one who is vestedwith powers or prerogatives o lay down andexecute managementpoliciesand/or to hire,transfer, suspend,. ay off, recall, discharge,assignor disciplineemployees.

Supervisory Employees - those who, in theinterest

of the employer, effec.tivelyrecommend such managerial actions if theexercise of such authority is not merelyroutinary or clerical in nature but requiresindependentudgment.

All employees not falling within any of theabove definitions are RANK-AND.FILEEMPLOYEES

Voluntary Arbitrator (ANCA)1. Any peqg Accredited.by the

Board assuch;o; ": i2. Any person Named or designated n the

CBA by the parties,to act as theirVoluntaryArbitrato[ or

3. OneQhosenWth or without he assistanceof the NationalConciliation nd MediationBoard pursuant to a selection procedureagreedupon n the CBA;or

4. fnV ofRciat hat may be Authorized by the

lecretary of Labor to act as VoluntaryArbitrator upon the wriften request andagreement of the 'parties to a labordisoute.

TITLE TWO.NATIONAL LABORRELATIONSCOMMISSION

CHAPTER I.COMPOSITION CREATION AND

ART. 213: NATIONALLABOR RELATIONSCOMMfSSION as Arnendd by R.A. 9347,July 27,2006)

NLRC - an administrativebody with quasi-judicial unctionsand the principalgovernmentagency that hears and odecides labor-managementdisputds;attached o the DOLE

for programand policycoordination nly.

Compositionc 1 Chairman; and. 23 Members.

EIGHT 8) memberseach, shall be chosenONLY from among the nominees of theworkers and employers organizations,respectively. The Chairman and theSEVEN (7) remaining members shall

-,cofir€ from the public sector, with the latter

to be chosen PREFERABLY rom amongthe INCUMBENT ABORARBITERS.

Upon assumption nto office, he membersnominatedby the workers and employersorganization shall divest themselves ofany affiliation with, or interest in thefederation or associationto which they

' belong.

Note: The compositioh of the NLRC is

trisectoral. Tipartism is representationof thethree sectors public or govemment,

employers and'the workers - in policy-making-

bodies of the government. Tripartism isobserved n numerousgovernmentagenciesor nstrumentalities

2 . F

basis, to



5sn $e a @ottegaLsb2011CENTRALIZEDAROPERATIONS

other divisionwhosedocketallows headditional orkload ndsuch ransferwillnol .expase litigants to unnecessaryadditionalxpense.

Division (Eight Divisions Each W,th gMembers)1. Adjudicatory;2. Allotherpowers,unctionsndduties: nd3. Exclusiveppellateurisdictionvercases

within their respective territorialjurisdiction.

Adjudication f Cases TripleC)1. TheNLRCadjudicatesases ydivision.

A goncurrence l 2 votess neededor avalidudgment.

(Wheneverhe requiredmembershipn adivision is not complete and theconcurrenceof the commissionersoarriveat a judgment r resolutionannotbe obtained,heChairmanhalldesignatesuchnumber f additionalommissionersfrom the other divisionsas mav benecessary.

2. lt shall be mandatoryor the divisionomeet orpurposesfgonsultation.

The conclusionf a division n anycasesubmitted o It for decisionsnoutOOereachedn consultationeforehe case sassignedo a memberor hewriting f heopinion.

3. A Qertificationo thisetfect igned y hepresidingcommissionerf the divisionshall be issued(copy aftached o therecordof the caseand servedupon heparties).

Qualificationsof the Chairman and theGommissionercArt. 21e1. Must ea memberf hephilippineBar,2. Musthavebeenengagedn hepracti-e f^; l.3-_w.,Ijng.ifhitip.pinesor at eas '15 ears;3. Must':hiiVeeiperienceor exposure n

handlingabormanagementeiationsorat east5 years; nd4. Preferably resident f the regionwhere

he s o holdoffice.

Qualifications of Executive . LaborArbiters/LaborArbiters (Art.21q1. Mustbemembersf thephitipfineBa62. Musthavebeenengagedn ti"ripractice f

law.nthePhilippinesor at easi10years;and

3. Must have experience or exposure inhandling abor management elations orat least5 years.

Term of Office of the Chairman.Commissioners,and Labor Arbiters(Art.21qTheyshallhold officeduringgoodbehavioruntil they reach the AGE OF 65 unlessremovedor causesas provided y law orbecome incapacitatedo discharge thefunction f hisoffice.

A.PROVIDEDOWEVER,hat he PresidentftheRepublic f he Philippines ayextendhe

servicesof the commissioners nd laborarbiters p to the maximum ge of 70 years

";;l,1lpofrhe recommendationf the commissionenbanc.

JurisdictionExclusiveandOriginal1. Certifled ases- cases certifled o it for

compulsoryrbitrationy he Secretaryf*Labor, underArf. 263 or the President

underArt.264:

2. lnjunction asesunder Afts.218 and 264;ano3. Contempt ases

ExclusiveAppellate1. Casesdecidedby LaborArbitersunder

Att. 217[b]of the LaborCodeand Sec. 1OR.A. 8042 MigrantWorkersct);and

2. Casesdecided y the RegionalOfficeS fDOLE n the exercise f its adjudicatoryfunction nderAd. 129of the LaborCodeover monetary claims of workersamountingo notmorehanP 5,000.

Judicial ReviewFindings of facts "q[accorded he

Ahl $Rs*}$a

BarangayBarangayabor cases



LABORLAW

LABORRELATIONS

are merely suppletory n charactervis-a-vislabordisputeswhichare primarily overnedbylabor laws (Montoya v. Escayo, GR Nos.

82211,March21, 1989).

ART. 214: HEADQUARTERS, RANCHESAND PROVINCIAL XTENSION NITS

The Commissionand its first, second, third,fourth, ifth and sixth divisionsshall have theirmain offices in METROPOLITANMANILA,and the seventhand eighthdivisions n thecities of CEBU and CAGAYAN DE ORO,respectively.

ART. 216: SALARIES, BENEFITS ANDOTHEREMOLUMENTS.. The Chairman and members of the

Commission'shalf..:havehe same rankreceive an annual salary equivalent o,and be entitled o the same allowances,retirement anci benefits as, those of thePresidingJusticeand Associate Justicesof the Courtof Appeals, espectively.

o Labor Arbitersshall have the same rank,receivean annualsalaryequivalent o andbe entitled to the same allowances,retirement and other benefits andprivilegesas those of the judges of theregionalrial courts.

CHAPTER I. POWERS ND DUTIESART.217: JURISDICTION OF LABORARBITERSAND THECOMMISSION

Exclusive and Original Jurisdiction ofL-aborArbitersEXCEPT as otherwise provided under thisCode, the Labor Arbitersshall have originaland exclusiveurisdiction o hear and decide,WITHIN 30 CALENDAR DAYS after thesubmission of the case by the parties fordecision without extension, even in theabsence of stenographicnotes, the followingcases involving all workers, whetherag i cu tural or n on-ag cultural: (UTR-DV-EeOcDo)1. ULPcases;

2 fgrmiqtigndisputes; .'3. lf''' abibmpanied with

'actaim ior

Reinstatement,hose that workers fileinvolvingwages,rates of pay, hours ofwork and other ermsand conditions femployment,

4. Claims or actual,moral,exemplary ndother ormsof Qamages rising'from r-

l Ee relations,5. Casesarising rom any Violation f Art

24, including questions involving the

legality fstrikesand ockouts;6. Except claims for Employment

Compensation,ocialSecurity, hilhealthand

{ lvr t+tntk i vihtr-no'l Fvfl,'t,

hr,l^ iYl ril,tl,(A d$rffl .o

and maternity benefits, all other claimsarising from ft@ relations, includingthose of persons n domesticor household

service, involving an amount exceedingP5,000 regardless of whetheraccompanied withreinstatement:

a claim for

7. Monetaryclaims of gverseascontractworkers risingromEr-Ee elations nderMigrantWorkersActot 1995;

8. Wageglistortionisputesn unorganizedestablishmentsot.voluntarilyettledbytheparties ursuanto RA6727;

9. Enforcementf gompromise greements

when here s non-compliancey any ofthe partiespursuanto Art. 227 of theLaborCode, samended;nd

10.Qther ases s maybe provided y aw.

Note: Although he provisionspeaks ofEXCLUSIVENDORIGINALURISDICTIONof LaborArbiters,he casesenumerated ayinstead e submittedo a voluntary rbitratorby agreement f thepartiesunderArt.262.

The law prefersvoluntaryover compulsoryarbitration.

Ihe cases hata LaborArbitercan hearanddecideare employmentelated.Whereno Er-Ee relationdhipxistsbetweenhe parties ndno ssue s nvolved hichmaybe resolved yreferenceo the Labor Code, other laborstatutes, or any collective bargainingagreement,t is the Regional rialCourt hathas urisdiction LapandayAgicultural Dev't.

Corp.v. CA, GR No. 112139, anuary31,.2000\.

The Labor Arbiter hascontroversies involving

jurisdictionoveremployers and

is a "reasonablemployees only if.causal claim

(EVtA\&i

CasesmachThe foll

disposed

be

referring

CA,X.|, -l

The q

[:abor,claimsstatutrJose1eeg).

the same tovolunta.ry rbitr



Ssn 0e s @ollegeAetr


1. Disputes on the interpretation orimplementationf CBA;and

2. Disputes on the interpretation orenforcement of company personnelpolicies.

No Jurisdiction over the Following:1. Foreign governments (JUSMAG-

Philippines v. NLRC, GR No. 108813,December 15, 1994)',except when thefunction of the foreign entity partakesofthe nature of a proprietary activity, itimpliedly divested itself of its sovereignimmunity rom suits.

2. International agencies (Lasco v.UNRFNRE GR No. 109095-109107,February 23, 1995);

3. Intra-corporate isputes which fall underP.D. 902-A and now fall under thejurisdictionof the regular courts pursuantto the new Securities Regulation Code(Nacpil v. lBC, GR 144767, March 21,2AOAi

4. Executing money claims againslgovernment (DAR v. NIRC, GR No.

104269,November11, 1993\;5. Cases involving GOCCs with originalcharters which are governed by civilservice aru, ules-or egulationsAtt- X-4,Sec.2, No. 1, 1987 Consf.),

6. Local water district (Tanjay Wabr Astidv. Gabaton, GR Nos. 63742 and U300,April 17, 1989) except where NLRCjurisdiction is invoked (Zamboanga CityWater District v. Buat, GR No. 104389,May 27, 1994);

7. The aggregate money claim does not

exceed 5,000 pesosand without claim orreinstatement{Rajah Humabon Hotel, lnc.v. Trajano, GR No. 100455 September17,1ee3);

8. Claim of employeeor cashprizeunderthe lnnovation rogram f the company,although rising rom employer-employeerelationship,s onerequiring pplicationfgeneralcivil law on contractswhich iswithin he urisdic'tionf the regular ourts(San $iguel Corp.. -1NLRC,,pR Ng. L-

80774,May31,1988);9. Cause f action s based nquasi-delictrtort whichhasno reasonable onnectionwith any of the claims'enumeratedn Art'217

ot the Code Ocheda . CA,GR No.85517,October16, 1992\,

10.Complaintarising from violationof atrainingagreementSingapoieNrlines .Pano,GR No.L47739,June22, 1983);

11.When heLaborArbiters an inconvenientForumunder he Doctineof ForumNonConveniens (Communication Materials

and Design lnc. vs CA, 260 SCRA 673,

[1ee6]).

12.Termination f membershiPn aCooperative rganizedunderRA No. 6938

otherwise known as the CooperativeCode

of the PhiliPpines.

2OOSNLRC Rulesof Procdure on Venue of

Fil ing Cases1. All cases which Labor Arbiters have

authority to decide may be filed in the

RegionalArbitrationBranch(RAB) havingjurisdiction over the fVorkplaceof the

complaina VPetitiner.

Note: WORKPLACE s understoodo be

the placeor locality here he employees.' ' ' ;regularly assignedwhen the cause of

action arose. lt shall include the place

where the employee s supposed o report

backafter a temporarydetail'assignment,

or travel.

ln case qf field employees,as well as*' ambulant or itinerant workers, their

workplace s:a. Where hey are regularly ssigned;

b. Where hey are supposedo regularly

receive heirsalariesandwages;

c. Where theY receive their work

instructionsrom,andd. Report he resultsof their assignment

to theiremPloyers.

2. Where 2 or more RABs have urisdiction

over the workplace, the first to acquirejurisdiction hallexcludeothers.

3. lmproper venue when not objected tobefore filing of position papers shall be

deemedwaived.4. Venue may be changed

agreement.of

thedifferent124193,

Service ofln the

by writtenwhen the

Miter so

valid waiver



LABORLAW

LABORRELATIONS

judgment enderedby the laborarbiterare nulland void.

Compulsory ArbitrationThe processof settlementof labordisputesbya governmentagencywhich has the authorityto investigateand make awardbinding'on allthe parties.Labor arbiter has the authority oconductcompulsory rbitrationPAL v. NLRC,GR No. 55159,December22, 1989\.

Note: The NLRC may conduct compulsoryarbitration ONLY in national interest casesreferred o i t by the DOLESecretary.

ART. 218:POWERSOF THECOMMISSION

Powers of the NLRC (R€iE6€l)1. lule-making pover (promulgation f rules

and regulations:a. governingdispositionof cases before any of itsdivisions/regional ffices;b. pertaining oits internal functions; c. as may benecessary o carry out the purposesof thisCode )

2. Power to issue Compulsory processes

(administeroaths,summonparties, ssuesubpoenas);

3. Power to lnvestigate matters and heardisputeswithin ts urisdiction adjudicatorypower original and appellatejurisdiction);

4. Contemptpower;5. Qcular nspection Art. 219);and6. Power to issue njunctionsand restraining

orders.

Injunction or TROOrderswhich may require, orbid,or stop thqdoing of an act. The power of the NLRC toenjoinor restrain he commission f any or allprohibitedor unlawfulacts underAftide 218 ofthe Labor Code can only be exercised in alabordispute.

Note: A restraining rder s not an injunction tall but a writ to compel parties o maintain hemattersin controversy_instatus quo until the

question'of whether or not a tempoiary orpreliminarynjunctionought to be issuedmaybe determined. (BF Homes v. Reyes, March16,1971\

Who May ssue1. President (Art. 263[9]);2 Secretaryof Labor (Aft. 263[9]);and3. NLRC (Art.218);

Note: There s no law which empowersLaborArbiters o issue a TRO or Injunc.tion. ence,

[nlr,rnoh']mvrf^g ih^4rd rX,tmLft as trnil ar

0f { hth'u ruauYrQ)t tuvryld..

Labor Arbiters cannot issue a TRO or anInjunction.

Procedure for the lssuance of RestrainingOrder/ |njunction: (DVH-RFB)1. There must irst be a laborglispute.2. Filingof a yerifiedpetition.3. Hearingafter due and personalnotice has

been served, in such manner as theCommission hall direct, o:a. All known personsagainst whom the

relief s sought;and.b. Also to the chief exed€itive r other

public officialsof the provinceor city

within which the unlawful acts havebeen threatened or committedcharged with the duty to proted thecomplainantsproperty.

4. leception at the hearing of . thetestimoniesof witnesses with opportunityfor cross-examination,n support of theallegationsof the complaintmade underoath as well as testimony in oppositionthereto.

5. Finding of ac{ of the Commission o theeffect that :a. Prohibitedor unlaMul acts have been

threatened and will be committed, orhave been committed and will becontinued unless restrained, but noinjunction or temporary restrainingorder shall be issued.on account ofany threat, prohibitedor unlaurful ct,except against the persons,association r organizationmaking hethreat or committing he prohibitedorunlavvfulact or actually authorizing or

ratifying the same after actualknowledge hereof;

b. Substantiat and ineparable injury tothe complainantspropertywill follow;

thatthe



Ssu Fele @ollege f teto


matter in controversyand which isappropriate to the particularcircumstancesof the case. lf the

remedy s specifically rovidedby law,it is presumed o be adequate PAL v.NLRC. GR No. 120567, March 20,1998r,

e. that public officers charged with theduty to protectcomplainant's roperty

are unable or unwilling to furnishadequateprotection.

6. Postingof a ond.

Injunction from NLRC is NOT the ProperRemedy against EmployeeDismissalThe power of the NLRC to issuean injunctivewrit originates from "any labor dispufe" uponapplication by a party thereof, whichapplication f not grantedmay cause grave orirreparable damage to any party or render

ineffectual ny decision n favorof such party.

It is an essential equirementhat there mustflrst be a labor disputebetween he contendingpartiesbefore he laborarbiter. n the present

case, there is no labor dispute between thepetitionerand private espondent s there hasyet been no complaint or illegaldismissal iled

with the labor arbiter. (PAL vs. NLRC, G.R.No. 120567,March 20, 1998).

Requisites Before TRO May Be lssued ExParte (STU)1. The complainant hallallege hat, unlessa

TRO is issuedwithoutnotice,a substantialand irreparable injury to complainantspropergwill be unavoidable;

2: There s estimonyunderoath, sufficient, fsustained, to justify the Commission inissuing a temporary injunction uponhearingafternotice Affidavit f Merit);and

3. The complainant shall first file angndertaking with adequate security/bondin an amount to be fixed by theCommission sufficient to recompensethose enjoined for any loss, expenses or

_d3nage"€V9ed

by .tne improy"idpntor' 'enor{eotr:s'issuance'

bf such' brdei' orinjunction, ncludingall reasonablecosts,

together with a reasonable attorney's fee,and expense of defense against thegranting of any injunctive elief sought inthe same proceedingand subsequentlydeniedby the Commission.

Note: The TRO shall be effective for NOLONGERTHAN 20 DAYS ripon the postingofa bond, and shall become void. after theexpiration of the 20 day period.

It may be lifted or it may be upgraded o a

permanentnjunction.

The TRO takes effect upon its issuance, if abond is posted and not upon receipt of th-e

parties. (A.M. No. RTJ-9&1405' Apil 12 '

2000\

The procedural nd sub$antial equirements

of Art. 218[e]must be strictly compliedwith

before an-injunction

may issue in a labor

dispute.*.

ART.219:OCULAR NSPECTION

The Chairman, any Commissioner,Labor

Arbiteror their duly authorized epresentativesmay,at anytimeduringworkinghours:

1. ".'eorrduct an ocular inspection on any

establishment, ui lding, ship, place or

premises, including any work, material,

implement,nrachinery'appliance or any

object herein;and

2. Ask any employee, aborer,or any person

as the case may be for any information r

* date ,conierning any matter or question

relative o the objectof the investigation'

ART. ?21: TECHNICAL RULES NOT.

BINDING AND PRIOR RESORT TO

AMTCABLE ETTLEMENT

TechnicalRulesNOTBinding

Administrativeand quasi-judicialbodies like

ihe NLRC are not bound by technical rulesof

procedure n the adjudicationof cases (Ford'Phits.

SatariedEmsoyees Assoc' v' NLRC'

GR No. 75347,December 11, 1987)'

Rules of evidence are not strictly observed inthe proceedings before the NLRC (Bant9li79,

et it. v. Coca-bola BottlersPhils-, nc', GR No'

RESquasi

thepartiexplq(Uua

NLRC1. Motion

the

onover he

venue. resshopping;

subjectjudicata,

153660.une1O,

and

7t



LABOR AW

LABOR ELATIONS

2. Motion or Billof Particulars:3. Motion or NewTrial;4. Petition for Relief from Judgment when

filed with the laborarbiter;5. Petition for Certiorari, Prohibition and

Mandamus;6. Motion to declare respondent n default;

and7. Motion or reconsideration r appeal from

any interlocutory rderof the laborarbiter.Amicable SettlementThe Labor Arbiter shall exert all efforts toarrive at an amicable settlementof a labordispute within its jurisdictionon or before its

first hearing or during the mandatoryconferencesset for the purpose (The rules forMandatory Conciliation/Mediati on Conferenceare 'provided

for under Rule ,V,.of the 2005NLRC Rules).

Approval of a Compromise Agreement by aLabor ArbiterThe c'ompromise greement hall be approvedby the Labor Arbiter, f:1. After explainingo the parties,particularly

to the complainants, the terms andconditions nd consequenceshereof;2. He is satisfied hat they understand he

agreement;3. That the samewas entered nto freely and

voluntarily y them;4. And that it is not contrary o lanv,morals,

and public policy(lbid).

ART.222:APPEARANCES ND FEES

Appearance of Non{awyers before theCommission

General Rule: ONLY lawyers can appearbefore he NLRCor a LaborArbiter.

Exceptions: Non-Lawyerscan appear ONLYin the follolving nstances:1. He represents himself as party to the

case:2. He represents a legitimate labor

org?nizationwhichis

q parfyto the casepi'wided that he shall be made to present

a verified certification from saidorganization hat he is properlyauthorized;

3. He represents memberor membersof alegitimate labor organizationexi$ing inemployeis establishment:

4. He is duly accreditedmemberof any legalaid office duly recognizedby the DOJ orIBP;

5. He is the owner or president of acorporationor establishmentwhich is, aparty to the,case. (Sec. 8, 20OS NLRCRuJesJ

Attorney's Fees1. Art.111 SimpleMonetary laim)

a. The maximum mounto be givena

lawyer for his legal assistancerendereds 10%of thetotalmonetaryaward adjudged the emPloYeesexcluding he award for moral andexemplaryamages. o demandmorethan his s unlawful.

b. The attomey'sees maybe awardedONLYwhen he withholdingf wagesis declared nlaarful.

c. Thebasisof the 10%adorney'sees stheamount fthewages ecovered.

d. Should herebe any othermonetaryawards iven n the proceedings,hesame may not be assessed or

.subjectedo the 10olo ttorney'sees.

2. Art.222a. Attorney'sees for CBA negotiations

andconclusionhallbe n the amountagreed ponby hepartieso be akenfrom the, union unds and not fromindividualnionmembers.

b. ThisArticleprohibitshe payment fattorney'seesonlywhere hesame seffected hrough orcedcontributionsfrom heworkersrom heirown undsas distinguishedromunionunds.

c. Neith'erhe lavyernor he union tselfmay requirehe individual orkersoassumethe obligation o PaY theattorney'sees rom heirownpockets.Anyagreemento thecontraryhallbenull ndvoid.

Articfe111vs. Article222

Prohibits he award ofattorney's fees whichexceeds 10o/o

#ili*Ltr



5en Gebs@ollegtof [.atn


2.J.

CHAPTER II. APPEALTO TI'IENLRC

ART.223:APPEAL

Grounds for ApPeal (FLEP)

1. lf the decision, order or award was

secured through fraud or coercion,

includingraftandcorruPtion;lf madepurely nquestionsf Law;lf seriousrrors in the indings f factsareraised which would cause grave orirreparabledamage or injury to theappellant;ndlf there sPrimaacieevidencef abuse f

discretionn hepart

of he LaborArbiter.Periods within which to APPeal1. Declsionsof the RegionalDirector - within

5 calendardays from receiptof the order(Att.129, LC - RecoverYof wages and

simple money claims of an amount not

exceedingP 5,000)2. Decisions of the Labor Arbiter - within 10

calendar days from the receipt of the

decision.

Note: Ifie Code stafes calendar, not workingdays. Hence, in counting he lGday period,

Saturday, Sunday, and Legal Holidays are

INCLUDED. (Vir-Jen Shipping and Marine

Services v. NLRC GR L-58011-12, July 20,

19821.

lf the 10s or 5h day, as the case may be, falls

on a Saturday,Sundayor holiday, he last day

to perfect the appeal shall be the first working

day following such Saturday, Sunday or

holiday.

No Motion for Reconsiderations available n

questioninghe LaborArbiteis decision 2@5NLRC Ru/es).

Period to Appeal NOi ExtendibleThe perfection of an appeal within the

slatutory/reglementaryperiod is not only

MANDATORYbut alsoJURISDICTIONAL nd

tailure; to, ;do. so render$..he ,.questioneddbcisiijn final and executoryas to deprive the

appellatecourt ofjurisdiction

o alterthe final

judgment of the RegipnalDirectorsand Labor

Arbiters (ACDA v. NLRC, GR No. 51607;

Volkschelv. NLRC, GR No. L-39686,June 28,

198O;Aboitiz Shipping EmployeesAssociationv. Trqjano, GR No. 112955. September 1,

1e971.

Requisites for the Perfec-tionof an Appeal

to the NLRG (VTP-BPC)

1. Filingof a yerifiedmemoranQum f appeal

containing,the grounds, issues raised and

argumentspropoundedand reliefssoughl

wiinin tne requiredperiodof appeal and

with a statement of the date appellant

received he appealeddecision,order orresolution,

2. In lhree legibly typewritten or printed

copies;3. Proof of payment of the requiredappeal

fee;4 In case of monetaryaward' an appealby

the employermay be perfected.onlyby the

posting of a bond (cash depositor surety

bond) equivalent ire':amount to tne

monetary award exclusive of damages

andattorneY'sees;

5 Proof of service upon the other parties;and

6 Qertificdtei+'of non-forum shopping and

verification.

Nore: Where ti ie employer ailed to post a

bsnd to perfect ts appeal, he remedy<'rihe

"n.,iou"i'is a motion fo dismiss the appeal'

Nf: ,-? petitionor mandamus'

Ti, bond is sine qua non to the perfection of

ap;:eal from the laborarbite/s monetary

cieirsion (Catubay, et al. v' NLRC' GR No'

11:.)-8g,'April

tz, 2000); property-bondac,,rptible (tJERM-Memorial Medical Center

', '-nC: GR No. 110419' March3, 1997)'

N.; ,notion o reducebondshall be entertained

e,o, pt on meritoriousgroundsand.only upon

tlr: -rostinQf a bond n a reasonable mount

in relation o the monetaryaward' The .merefilin"r of a motion to reduce bond wilnoul

ccr'-iplyingwith these requisites will not stop

tn+ 'unningofthe period o appeal'

Fai:,rre o give a

apiellee within10

insofarcoircerned



LABOR AW

LABOR ELATIONS

There s no needfor a motion or the'issuance

of writ of executionon the reinstatement rcler

as it is self-executory (Pioneer TexturizingCorp. v. NLRC, GR no. 11651 Qctober16,

1997).

Reinstatement Pending Appeal under Art.

223 vs. Order of Reinstatement under Art

279.

Dev't. Bank v. Association of Lttzon DevT'

Bank,GR No. 120319,October6, 1995)'

1. The way to review NLRC decisions s by

special'ciit

action of certiorai, prohibition

or mandamusunder Rule65 of the Rulesof

Court.

Notel A petition for certiorarishall NOT

STAY (or suspend) the executiol 9f- 1h"assaileddecisionof the NLRC UNLESS a

TRO ls issuedby CA or SC (Sec' 10, Rule

XI, NLRCRutes,20O5)-&i '

2. Jurisdictionbelongs o SC and CA, but inline with the dodrine on hierxchy of coutts'

the petition should be initially presented to

fhe CA (Sf. Martin's Funeral Hgme .u.wmc, oh wo. 130866, SePtember 16'

1988).3. io iotion for reconsideration is allowed for

any order, decision or award of a labor

arititur. However, a Motion for

Reconsideratioruof a Labor Arbitefs

decTSion,ward or order which has all the

elementsof an appOalmay be treated asappeal.

4. Only one Motion or Reconsideration f the

decision,award or order of the commlsston

in casesappealedbefore t is allowed'

Procedure on Gases Originally Filed with

the Labor Arbiter

Options of the Employer in Complying with

an Order of Reinstatement which is

Im med ate and Self€xecutory1. He can ADMIT the dismissedemployee

back to work under the same terms andconditionsprevailingprior o his dismissal

or separation or to a substantially

equivalentposition f the formerposition s

already illeduP;OR2. He can REINSTATE he employeemerely

in the PAYROLL. with PaYment of the

accrued alaries.

Note: The exercise of one of the foregoing

options may be compelled under pain of

contempt and the empoyer may be made topay he salaryof the employeenstead.

Payroll ReinstatementOne where an employee s paid his monthly

salary without making him perform actual

work. lt applies in terminationcaseswhere the

labor court declares he dismissal llegal and

orders reinstatement f the employee,but the

employer does not want to actually or

physicallyreinstatehim and instead,at the'enptoyefs

option, merely)reirstates the

employee n the payrollpendingappeal.

Judicial Review Rules

No law allors an appeal roma decisionof the

Secretary of Labor, or the NLRC, or of a

voluntaryarbitrator.

Note: Decisions of Voluntary Arbitrators are

appeatabfe o the CA under RULE 43 OF THE

RUTES OF COURT n relation o Sec. 9 of BP

Blg. 129. Voluntary Arbitrators are to be

considered as quasi-judicial agencies whose'decisions are appealable to the CA (Luzon

An order of I On the other

reinstatement by the I order of reinstatemertLabor Arbiter

'sI under Art' 279

immediately executory Presupposeshe award

evenpending ppeal.t I thereofs

pursuanto ab similar o a return-to- final and executory

workorder .e. o restore judgment, ndnotwhilethe status quo in the I the case'.u{.9r*1.,,ijtegal

workplace for the I dismissals

pendingon

meantime. i appeal.

Appeal o the NLRC Division(lf 'appeal enied,MR;aPPeal

riom'Nnc to the sec. of Labor

abolishedunderP-D. 1391)

Court of APPeals(Certiorari under Rule 65)

SuPreme ourt

(Petitionor Review nderRule45)



- Ssn Fets @oltegef {.ltn


5. MedArbiten and6. VoluntaryArbitratoror Panel of Arbitrator.

When Writ of Execution May Be lssuedThe foregoing persons or entitiesmay, upon

their own initiative or on motion of anyinterested party, issue a writ of executionon ajudgment within 5 years from the date it

becomes final and executory.

Atter he lapse of the said flveyear period, hejudgmentshall becomedormantand may only

be enforced by an independentactton withinthe next five (5) years.(Phil. National ailways

vs. NLRC, G.R. No. 81231, September 19,1989)

It is settled that once a decision or orderbecomes flnal and executory, t is remtvedfrom the power or jurisdictionof the courtwhich rendered t to further alter or amend it.(Scheing Employees Labor union vs NLRC,G-R.No. 118586,Sept 25,1998)except:1. When there are clericalerrorsor mistakes.2. When the amendment or conection is

meant o harmonize t with usticeand thefacts.3. When the same becomes necessary to

accomplish he aims of ustice.

4. When there are supervening eventsjustifying the amendment of correction.(Yuvs NIRC, G.R.Nos. 11181G11, une16,1e95)

Manner of Execution May Be AppealedFinalityof judgment becomesa fact upon the

lapseof the reglementaryeriodof

appealand

if no appeal is perfected. n such a si tuation,the prevailing party is entitled as a matter ofright to a writ of execr.rtion.

There is a big difference if, what is sought tobe reviewed is not the decision itself but themanner of its execution.While it is true thatthe decision has become final and executoryand so c€rnno longer be challenged, here isno question either hat it must be enforced naqgrrdanceittdh jtsterms and conqitions. The

NLRC has ar,rthoritv' o look - into thec€rrectnessof the executionof the decisionand to considersuperveningevents hat mayaffect such execution(Abbot v. NLRC,GR No.L-65173,October 27, 19861.

Remedies of a third party whose property

hasbeen wrongfully levied to enforce adeclsion {Gumulative)1. Motion for Exclusion/ Release of the

propefi ,wrongfully evied on executionl

2. SeMce by the third partyclaimanton theofficer making the levy and upon the

judgment creditor of an affidavit of title

fSec. 16, Rule 39, Rulesof Court)' This is

also knownas Terceria;

3. Independent ivil action o recover he titleand possessionof the propertywrongfully

levied on execution (Sec. 76, Rule 39,

Rules of Court) (See Yapangco Cotton

Mills vs. CA, et.al., G R. No' 126322,

JanuarY 16, 2002)

RTC Injunction against NLRC

Generally,not available,r;

HOWEVER,he general ule hatno courthas

the power to interfere by injunction Wthjudgments of another court with

coniunenvcoordinate jurisdiction applies

ONLY when no third-party complaint is

involved (/bid.). Therefore, if the property

under levy does not belong to the judgment

debtor in the NLRC case' it couid not be

validly levied upon by the sheriff-lor..tfqsatisfictionof the judgment herein. f the third

partyclaimantdoes not involvenor grows out

bf*a tabor diSpute, a separate action for

injundive relief against such levy maybe

miintained in court.(Co Tuan et. al. v. NLRC

and CL|JP,GR No. 117232,Apfl 22, 1998)'

TITLETHREE.BUREAUOF LABOR

RELATIONS

ART.226:BUREAUOF LABORRELATIONS

ABSORPTION Y NCMB

Pursuant o E O. 126, he NationalConciliation

and MediationBoard (NCMB) has absorbed

the conciliation, mediation and voluntary

arbitration unctionsof the BLR.

The BLR functions, as it now stancls, are

sucnof

regular

To ac{ on its

of either or both



LABORLAW

LABORRELATIONS

2. INTER-union onflicts: nd3. OTHER RELATED Labor Relations

Disputes.

Other Related Labor Relations Disputes(Sec. 2, RuleXl D.O. /n-Wl

Shall includeany conflictbetweena labororganizationand the employer or anyindividual,entity,or group that is NOT alabor organization r worker'sassociation.This includes.a. Cancellationof registrationof unions

and workeis associations:ndb. A petitionor interpleader.

Note: E O. 251 OF 1982 removed rom thejurisdictionof the BLR all'

labor-managementdisputes. The effect of E O. 251 is to transferto the NCMB the mediation,conciliation, ndarbitrationunctions f the BLR.

The parties may, by agreement,settle theirdifferences by submitting their case to avoluntary arbitrator rather han taking the caseto the BLR.

E.O. 292 or the 1987 Administrative Codeprovides or the cunent unctionsand authorityof the BLR:

Sec.16.Bureauof Labor Relations The BLRshall:1. Set policies, tandards, nd procedures n

the registration and supervision oflegitimate abor union activities ncludingdenial, cancellation,and revocation oflaborunionpermits,

2. Set policies, standards, and proceduresrelating to collective bargainingagreements, and the examination offinancial recprds of accounts of labororganizations to determine compliancewith relevant als;

3. Provide proper orientation o workers ontheir schemes and projects forimprovement of the standards of living ofworkersand heir amilies.

- r"trio ;6t;onniabetween ndamong nionmembers,ncludinggrievances rising rom any violation f therightsandconditionsf membership,iolationgf or disagreementverany provision f theunion'sconstitution nd by,larrs,or disputesarisingromchartering r affiliation

Inter-union Disputes - referto any conflictbetween and amor\g legitimate fabororganizations involving representation

questionsor purposes f collective argainingor to any other conflictor disputebetween

legitimate abor organizationsbased on anyviolations f their rightsas labororganizations.

Coverage of Inter/lntra-Union Disputes{Sec. 7, Rule Xl, D.O. 404311. Cancellation of registrationof a labor

organization iled by its members or byany other abororganization,

2. Conductof electionof unionand worker'sassociationofficers/nullifcationof electionof unionand workeis association fficers,

3. AudiUaccountsexam.ination f union orworkeis associationundsf"

4. De-registration f CB,\

5. Validityiinvalidityof union affiliation ordisaffiliation;6. Validily/invalidity of acceptance/non-

',,a€oeptancefor unionmembership;7. Validity/invalidity of impeachmenU

expulsion of union and worker'sassociationofficers;

8. Validity/invalidityf voluntary ecognition;9. Opposition to application or union and

CBA registration;10. y'iolationsof or disagreementsover any

provision in a union or worker'sassociationconstitutionand by-laws;

11. Disagreementsover charteringregistration f labor organizationsCBAs,

12. Violationsof the rights and conditionsofunionor workels associationmembership;

13. Violationsof the rightsof legitimate abororganizationq except interpretation ofCBAs;and

14. Such other disputesor conflicts nvolvingthe rlghts to self-organization, union

membership, nd collective argaininga. Between and among lbgitimate abor

organizations;ndb. Between and among members of a

unionor worke/s association.

orand

may file the

pf

of

,tn

ln such



t J . 4 J$eir #eDs@ollege fL^do

2011CENTRALIZEDAROPEMTIONS

be sought within the union itself, naccordancewith its constitution nd by-

lawsEXCEPT nderany of the followingcircumstances:1. Futility f ntra-unionemedies,2. lmproper xpulsionrocedure;3. Undue elay nappeal s o constitute

substantialnjustice;4. Theactions or damages;5. Lackof urisdiclionf the nvestigating\ body;

Actionof the administrativegencyspatently illegal, arbitrary, and

oppresslve;lssuespurely question f aw;Where he administrativegencyhadalready rejudgedhe case; ndWhere he administrativegencywaspracticallyiven he opportunityo ac1on the casebut t did not.

Effects of Filing or Pendencyof Inter /lntra-Union Dispqte and other LaborRefationsDisputes(Sec.3, RuleXl, Do 40-

03)1. Therights, elationshipsndobligationsfthe party-litigantsgainst achotherandother parties-in-interestrior to theinstitr.tionf the petition hallcontinueoremain uring hependencyf the petitionanduntil he dateof finality f the decisionrendered herein.Thereafter,he rights,relationshipsnd obligationsf the party-litigantsagainst each other and otherpartie+in-interesthallbegoverned y he

decision oordered.2. The filingor pendency f any inter/intra-uniondisputess nota prejudicialuestionto anypetitionor certification lection nd

. shallnotbea groundor hedismissal f apetition for certification election orsuspensionf proceedingsor certificationelection.

Appeal from Decisions of

6.

7.8.

9.

Flowchart ofMed-Arbiters

Bureauof LaborRelations ifthe case originatedrom the

Me&Arbiter/RegionalirectorSec. Of Labor - if the caseoriginatedom theBureau

RegionalOffrceor to the BLR'where he comPlaint riginated(recordsare ransmittedo the

bLR or Sec.within24 hours

from receiPt of thememorandumf aPPeal)

Med-Arbiter/Regional

Director

Appeal o BLR r to the Sec.

" of Lbbor f originatedrom

the Bureau

(Within10 daYsrom

receiptof the decision)

Appeal o the SecretarY f Labor

#*tii flff t*J\x&'1. Underoath{ ConsistoT,€ memorandum.

of appeal3. Based on either of the

following rounds;a. Grave abuse of" discretionb. Gross violation of the

rules4. \ fitr supporting rguments

andevidence

\Mtthin 0 days romreceiptofdecbion



LABOR AW

LABOR ELATIONS

1. ForgrounolnoEiG--iorganization (LLO) meniOerls) thereof

speciallyoncemed2. For gnoundsunder Sec. 2: any_party_in_

interest

RegionalOffice hat bsued its certncateJiregistration or certificate of creation ofcharteredocal if it involvesaboruniorswithindependent egistration, hartered ocali.worke/sassociation,ts officers rmembers.urrectlywith the Bureau_ if it involvesaFederatiory' ationalUnions;/ndustryUnions,itsofficers, rmembers.

Verified nderoathContainshe ollowing verments:a. Name, address and other persor-ral

circumstanoes f the complain;nt(s)orpetitioner(s);

b. Name, address and other personalcircumstances f the responOentls; rperson(s)harged;

: Nature f hecomplaintrpetition;

d. Factsandcircumstancesurroundinghecomplaintrpetition;e. Causesof actionor specificviolations

committed;f. A statement that the administrative

remediesprovidedor in the constitr.itionand by-larvshave been exhausted;orsuch emedies re notreadily vailabli othe_complainantsr petitionershroughno fault of hiJtheir own, or complian-ewith such adminstative emediesdoes

^ ,. ot apply o complainantsr petitioners.xelrersprayedor;

$ifbae of non-forumhopping; nd

ART.227 COMPROMSEAGREEMENTS

Compromise Agreement - contractwhereby

theparties,

by making eciprocal oncessions,avoid litigationor put an end to one alreadycommenceo.

SubstantialRequirements1. Mustbe reely nterednto;2. Mustnot be contraryo law, rnorals or

4.

publicpolicy;Mustbe reasonable: ndMust be approved by the 4,rthority beforewhom the case s pending seediscussionon Article 221 - approval of Labor Arbiter

of an amicable sdtlement in a case beforehim\

FormalRequirements1. Inwriting;nd2. Signed n the presence f the regional

director or his duly authorizedrepresentative.Sec. 8, Rule ll of theRuleson Disposition f Labor EtandardsCsasesn,fheRegionalOffices)

When May CompromiseAgreementsBeEffectedIt may be effected at any stage of theproceedingsndevenwhen here s alreadyfinalexecutorfudgmentAtt.2040,N CC).

It cannot be entered nto when the finaljudgment is already in the process ofexecutionJesalva,et al. v. Bautista,GR No.L-l192&*L-19330,March24, 1959).

CompromiseAgreementsWith v, WithoutAssistanceof DOLE

Administrative unctions f the BLR1. Regulation f registration f the labor

untons;

? |:gqinS of a registry f aborunions;r. Matntenancefa fileof CBAs; nd4. Maintenancef a fileof all setflementsr. . , final,gecisionsf the supreme@urt,court or appeals,NLRCandotheragencies n

labor isputes.

CasesWhere he BLRHasNoJurisdictionThose

.arsrng from tne imptemiiatiii"ornterpretation of Collective BaroaininoAgreementswhich shal be J;j;; ;g1je.y"lg" procedure and/or utiunt"rvarbitration.



$un Geld @ollege Lst

2011 CENTRALIZEDAROPERATIONS

Options When Compromise Agreement ls

Violated

1. Enforcecompromiseby writ of execution,or

2. Regard it as rescindedand insist upon

original emand.

Requirementsof a Valid Quitctaim(VAC)

1. The quitclaimmust be yoluntarilyarrived

at by the parties;

2. lt must be with the essistance of the

Bureau of Labor Standards, Bureau of

Labor Relationsor any representative f

the DOLE: and3. The gonsiderationmust be reasonable

(required only when enteredwithout the

assistanceof DOLE).

Note: Dire necessity is not an acceptableground or annulling he releases, specially nthe absenceof proof hat the employeeswere

forced to execute them (Veloso v. DOLE, GRNo.87297, August 5, 1951).

Waiver of ReinstatementLike waivers of money claims, a waiver ofreinstatement must be regarded as aPERSONALRIGHTwhich must be exercisedpersonally by the workers themselves (Jag

and Haggar Jeans and Spodswear Corp. v.NLRC,GR No. 105710,February23, 199q.

ART.231: REGIST.RY F UNIONSAND F]LEOF COLLECTIVEAGREEMENT

The CBA is more than a contract, t is highlyimpressed with public interest for it is an

essential instrument to promote industrialpeace (fUP v. Laguesma, GR No. 9fi13,September 1, 1994).

An Unregistered CBA does not bar

certificationelection (Contract-BarRule will not

apply in the absence of registration). See

notes under Arts. 253, 25?A and 256).

Procedure or Registration

3. The regionaloffice shall furnish he BLR

with a copyof the CBAwithin ive (5) days

from its submission4 The BLR or regionaloffice shall assess

the employer or everyCBA,a registration

fee of not less than P1 000.00 or anY

amount deemed aPProPriate bY the

Secretaryof Labor.

5. lssuanceof Certificate f Registration'

Note: Registration of the CBA is not a

requisiteor its validitY&.

The certification f the CBA by the BLRis not

requiredto put a stamp of validity.to such

contract. Once it is duly entered into and

signed by the parties, a CBA b":ot."=",.

effectiveas between the parties [€$?ICll€ss l+;rr'"t

whetheror not the same has beencertifiedby

the BLR (Libefty Ftour MiltsEmployeesv' LF^h

lnc". oi wos. 58768-70' Deember 29,

r989).

ART. 232t PROHIBITION ON

CERTIFICATION LECTION

Contract-Bar Rule - While a valid and

registered CBA is subsisting for a FIXED

PfRtOO OF 5 YEARS, the Bureau s not

allowed to hold an elec-tioncontestingthe

majority status of the incumbent union

EXbEPT during the sixty (60) day-period

immediately prior to its expiration, which

period s catted freFREEDOMPERIOD'

Note: In the absenceof such timelynoticeor

filing of petition, the contract executed during

the automatic renewal period is a bar to

certifi ationelection.

There shall be no amendment,alteration,or

of cooies f the CBA o,theaib'r Helatioid' i,tn"'resioiiat

offices of DOLE within 30 days fromexecution, ccompaniedy hefolloruing:a. Verified proof of posting in two

conspicuous laces n the place ofworKand

b. Verffied proof of ratificationby themajorily of all the workers in thebargainingnit.

2. Actionupon he applicationor registrationwithinfive (5) calendardays rom receiptthereof

six 6)

havedulY



LABOR AW

LABORRELATIONS

2.2

It was ratifiedby the unionmembership;It is adequate or it containssubstantial

. As now amended by R.A. g4g1, Art.Zg4makes specific reference o the followingorganizations (not merely to ant

organization) hichmay register s labororganization,o wit:1. Federation2. National nion3. Industry nion4. TradeUnionCenter5. Independentnion

terms and conditions f employment;4. lt encompasses he employees in the

appropriate argai ingunit;5. lt was not prematurely xtended, he CBA

was not hastily entered nto (doctrineofpremature extension does not bar acertification lection :

6. lt is for a definitepeiioO:'7. No schismor massdisaffiliationffects he

contracting nionduring he lifetimeof theagreement;

9. The contracting nion s notdefunct;9. The contracting union is not comoanv_

dominated(see discussionsn Arts.'256-259 Petition for Certification Election).

ART.233:PRTVILEGEDOMMUNICATTON

Privileged Communication _ any statementof such privacy that the law exempts thepe9on receiving he informationrom the dutyto disclose it.

Not AvailabteAs Evidencelnformation and statements

made atconciliationproceedingsshall be treated aspnvrteged ommunication nd shall not beusedas evidence n the Commission.

Conciliators nd similarofficialsmaynot estify

l , "nVcourt or body regarding

"ny,"tt"ri

raKen up at conciliation proceedingsconductedby them.

TITLE FOUR.LABOR ORGANIZATIONS

CHAPTER . REGISTRATION NDCANCELLATION

ART.234:REQUIREMENTS FREGISTRATION

Principle.of Agency Appliedr. r.nnapal _emplovees

2. Agent- tocayihabter3. Agentof agenf-iederation

Purpose-ofFormation ot f-"Lr Unions: forsecuring air and ust wagesand goodworkino

conditions for the labbrers; jnO fo; ih;protectionof laboragainst he unjusi

"*""tion"f capital.

Modesof Acquirinoorganizationsincl

-

1. legistrationwithUnion).

Legitimacy for Labor

the BLR (lndependent

2. Ch.arteringr issuance f a federation rnational nionofa charter erflficate.

-

Any labor organEation-n Seprivate sector organized forcollective bargaining and for



Sen Eebs@ollegeAetn


Classification of Labor Organizations1. National Union/Federation - any labor

organization with at least 10locals/chapters ach of which must be a

* duly certified or recognized collectivebargainingagent.

2. Industry Union - groupof legitimate abororganizationswithin an identified ndustry,organized for collectivebargainingor fordealing Wth employersconcerning ermsand conditions of employmentwithin anindustry or for participating in theformulation of social and employment

policies,standards,and programs n suchindustry egisteredwith DOLE.

3. Trade Union Center - groupof registerednationalunjg1g.or ederations rganizedfor the mutual aid and protectionof itsmembersand for assisting uch membersin collectivebargaining r for participatingin the formulation of social andemployment policies, standards, andprograms duly registered with theDepartment.

4. Alliance - aggregationof unions existingin one line of industry or in aconglomerate,a group of franchisees,ageographicalarea, or an industrial enter.

5. Company union-- a labor organizationwhich, in whole or in part, is employer-controlledor employer-dominated.

Requirements foi the lssuance of theCertificate of Registration of a NationalFederation, National Union or lndustry or

Trade Union. Center or .an lndependentUnion (As Amended By RA. 9481, June 15,n0n1. P 50 registrationee;2. Names of its officers, heir addresses, he

principaladdressof the labororganization,the minutesof the organizationalmeetingsand the list of the workers who participatedin such meetings;

3. In case the applicant s an independentunion, the names of all its members

comprising at least 2Oo/oof all the. employqqg-p the QarBqigrpg pi ,,yQ95_e-t

seeks' to operate '(see Art. "255- fordefinition of bargaining unit);

4. lf the applicant union has been inexistence for one or more years, copies ofits annual inancial reports; nd

5. 4 copies of the constitutionand byJaws ofthe applicantunion,minutesof its adoptionor ratification, nd the list of the memberswho participatedn it

Note: Creatign of a LOCAL CHAPTERdoesnot need subscription of at least 2oo/oof themembers. Minimum number of members

applicaHeonly to registration f independent

un ion.

The LaborCodeand its implementingulesdo

not require that the number of members

appearing on the documents in question

shouldcompletelydovetail.For as long as the

documentsand signaturesare shown to begenuineand regularand the constitution nd

by-laws democratically atified, he union is

deemed to have complied with registrationrequirements (The He.itage Hotel Manila

vs. Pinag-isang galing and elakas ng mga

manggagawa sa Heritage Manila (Piglas-Heritage),G.R. No. 177024, October 30,

2009.)

ART. 234-4: CHARTERINGAND CREATION

OF A LOCAL CHAPTER (new Provisioninsertedby R.A.94811

A duly registered ederationor nationalunion

may directly create a local chapter BY

ISSUING A -CHARTER CERTIFICATE

indicating the establishment of the localchapter. The chapter shalt acquire legalpersonalityONLY for purposes of filing a

petitionor certification lectionromthe date t

was issueda charter certificate.

Note: The chaptershall be entitled o all other

rights and privileges of a legitimate labor

organization only upon fhe subrnrssionof the

following documents in addition to its charter

certificate:

1. Names of the ctraptels officers, theiraddresses, and the principal office of the

chapter;2. Chapteis constitutionand byJaws;

3. PROVIDED, that where the chapte/s

constitutionand by-laws are the same as



LABORLAW

LABORRELATIONS

offices, but shall be processed bv theBureau.

Note: A labor organizationmay be organizedunder the CoroorationLaw as a non-stockcorporation and issued a certificate ofincorporation by the SEC. But suchincorporation as only the effect of giving o itjuridical personalitybefore regular courts ofjustice.Such incorporation oes not grant theright and privileges of a legitimate labororganization.

Ministerial Duty of the BLR Compellable by

MandamusTo review the applicationor registration ndnot the issuance of a Certificate ofRegistration.

After a labor organization had filed thenecessary Fpers and documents forregistration, t becomesmandatory or the BLRto check if the requirements under Nticle 234have been seduiously complied wiffr. lf itsapplication for registration is vitiated byfalsification and serious irregularities,

especially hose appearingon the face of theapplicationand the supportingdocuments,alabor organization should be deniedrecognitionas a legitimate abor organization(Progressive Development Corporation-pizzaHut v. Laguesma,et. al, GR No. 115077, Apit18, 1997).

Purpose of RegistrationRegistration with the 8LR is the operative actthat gives ights to a labor organization.

1. lt is the fact of being registeredwith theDOLE that makes a labor organizationfegitimate in the sense that it is clothedwith legal personality to claimrepreentational and bargaining rightsenumerated in Afticle 242 or to strike orpicket under Article 263.

2. The requirementof regislration'is not acurtailmentof the ight fo ass6aafion. lt ismerely a condition sine qua non for theacquisitionof legal persornlity:by labororganizations, ssociations r unions andthe possession f the rightsand privilegesgrantedby law o labororganizations.

3. lt is a yalrdexerciseof policepower sincethe activities in which labor organizations,associations,or unions of workers areengaged affec.t public interest,. whichshould be protected (PAFLU y. Sec. ofLabor, GR L-2228,February27, 1969).

Federation - any labor organization with atleast 10 localJchafiers or affiliateseach of

which must be duly certifiedor recognized s

the sole and exclusive collectivebargainingagentof the employer hey represent.

Requirements Before a Federation Can Belssued a Certificate of Reg,istrationAside from the application,which must beaccompaniedwilh the requirements forregistration of a labor registration, theapplication houldalso be accompanied ythefollowing:1. PROOFof affiliation f at least10 localsor

chapters,each of which must be a dulyrecognizedsole and exclfsive collectivebargaining gent n the establishment r

industry n which it operates,supportingthe registration of such applicantfederation r national nion, ,.: . . ,-

2. RESOLUTION f affiliationof at least'ten(10) legitimate abororganization, hetherindeoendentunions or chartered localseach of which must be duly certifiedor arecognlzed bargaining agent in theestablishmentwhere it seeks to operate;and

3. flAMES, AND ADDRESSES of thecompanies where the affiliates operate

and the list of all the members in eachcompany nvolved.

Unions at Enterprise LevelA labor union at enterprise level may becreated either by:1. lndependent egistration2. Chartering



Sen frebs@otleget:[.trtu


Application fo rregistration isfiled with and willbe acted upon bythe DOLERegional Officewhere theapplicant'sprincipal's officeb located.

Charter certifrcateissued by federationor nationalunion isfiled with theRegional Office orBLR within 30'daysafter the issuance ofthe chartercertifcate.

Affiliate1. An independently registered union that

entered into an agreement of affiliation

with a federationor nationalunion.2. Also refers to a chartered local whichapplied for and was granted anindependent regigtr:ation but did notdisaffiliate rom its mother federationor

national nion.

Affiliation of Local Union with a FederationThe procedureof affiliationwould depend onwhether he -union s independentlyegisteredor not.

Requirements of Affiliation (As AmendedBy D.O. /n43)

1. Report of affiliation of independentlyregisteredabor union;

2. Attachments:a. Resolutionof the labor union's board

of directorsapprovinghe affiliation;b. Of the general membershipmeeting

approvinghe affiliation;c. The total nurnber of members

comprising the labor union and the

names of memberswho approved heaffitiation;

d. The certificateof affiliation ssued bythe federation in favor of theindependently egistered abor union;and

e. Written notice to the employerconcerned f the affiliatingunion s the'incumbentbargaining gent.

Note: Supervisor'sunionaqd the rank and fileunion operldlng within the same es{ablishment

may join the same federation or nationalunion. (Arf. 245 amended by R.A. 9481)

DisaffiliationWhen affiliated,a local union may disatfiliatefrom he federation.

When to DisaffiliaGGeneral Rule: ,{ labor union may disaffiliatefrom the motherunion o form an independentunion only during the 60{ay freedom period

immediatelyprecedingthe expirationof the

CBA.

Exception:DISAFFILIATION Y MAJORIry'Evenbefore he onset of the freedomperiod,

disaffiliationmay still be carriedout, but such

disaffiliationmust be effected by a majority of

the unionmembersn the bargaining nit '

This happenswhen there is a substantial hift

in allegiance n ihe part of the majorityof the

members of the union. In such a case'

however, the CBA continucs to bind the

members of the new or disatfiliated and

independent nion up to the CBA's expirationdate. A consent election to determine the

unionwhich shall administerhe CBA maybe

conducted.

LimitationDisaffiliationhouldbe in accordancewith the

rulesand procedures tated n the constitution

and by-lawsof the federation.

A sohibition to disaffrliate n the Federation's

coinstitution r by-laws is valid - intended for

its own protection.

Chartered Local - created by a federation or

national nion hrougfr ssuanceof a charter'

Revocation of Charter by the Federation -

by serving he local/chapter verifiednotice,of

r&ocation, copy furnished he Bureauon the

groundof disloyalty r such othergroundsas

maybe specifiedn its constitution r by-laws'

The revocation halldivest he localchapterof

ln the Iallowed

Art.235:ACThe Bureau rs for

filing.



LABORLAW

LABORRELATIONS

, , i.'ir:ltiiY

All requisitedocumentsand papersshall beunderoath by the secretaryorthe treasurerofthe organization, as the case maybe, andattested o by its president. :

Reas91lol T<ry period: The thirty-day

period n Art 235ensures hat anyaction akenby the BLR is made in consonincewith themandateof the LaborCode,whichspecificallyrequires hat the basis for the issuanceof acertificate f registration houldbe compliancewrth the requirements or recognitionunderArt. 234.

_ (progressive bevelopmentCorporation-pizzaHut vs Laguesma,e.h. ruo.115077,Apfl 15, 1997.)

Reason for requiring certification underoath: To ensure that the labor organizationwith which an employer s dealing i a bona_rroeorganization.

Mandamus, not Certiorari, is properrenledy. The proper remedy against refusaf oregistera labor organizationhich comolieswth all the requirementss mandamus nd notcertiorari.Certiorari s not the properremedvsince

Ih" approval of appltation i*registrations not a udicial unction.

ART.236:DENTALOF REGTSTRATION

DecisionDecisionof the Regional fice or the Bureauoenyrng ne application or registration hallDE:1. Inwrit ing;2. Stating in clear terms the reason or the

decision;and3. Applicantunionmust be furnisheda copyof saiddecision

AppealDecisions of the Regional Office shall beappeatabte o the BLR and CA. The BLR,s

*_":i:1"_* ja:es appeatedrom n"gion"i

urrector re final and not appeatableo theSecretaryf Labor.

Decisions f the BLRdenying he registrationof

.a labororganizationfedeiation"in-;fi-;;inion) s appealableo the Secretary t f_aOoi

thewithin10 calendarays rom .u"Lipi"f tn"decision, ngrounds f:1. Grave buse fdiscretion:r2. Grossncompetence.

Decisionof Secretary f LaborappealableoCourtof Appeals.

Registration of Independent Labor UnionFiled With

Registration of Federation or NationalUnion.FiledWth

-

Bureauof LaborRelations r Regional

Office(But processedby

Bureau)

Decisionof Secretaryappealableo COURT

of APPEALS

Secretaryf Labor(lfBLRdirector

denies)

Regionalofficewhere

unionoperates(Processed y LaborRelationsDivision)

Bureauof LaborRelations(lf deniedby Regional

Decisionof BLRappealableo COURTof

APPEALS

s&N Fffi*A*-1".\i*L#{"6# 3f: t-A 4r

84



5an Sebs€ollegesf {.eio

2011CENTRALIZEDAROPfrRATIONS

of Rules

By signinga contract

notlabor organizationand herefore t woui;continueo have egalpersonalitynd trpossess ll'therightsandprivilegesf alegitimatedbororganization

valid as the labor organization car

continueadministeringhe CBA

entlded to

dues and not the federation rom whbh bt

labor organizationdisafiiliated.

of the union with thefider;don for the issuance f a chartercertificate o be submitted to the Bureau

accompaniedby the following:1. Copiesof its constitutionand by]aivs.

2. Statement of the set of offcers and

books of acounts, all of which must

be certified bY the

Secretary/Treasurerand atested to

by the President. n such case, the

unionbecomesa lobalchapterof the

Jnron

continue to be would ontinueo be

: iatterc*e, the localor chapterwill notlose its legal personality until F9

, expiration f the CBA After the CBA

, expires t will lose its legal personality

. r-rniessit

registersas an independent

iocalchapterwill not lose ts personality

until he expiration f the CBA After he')BA expires he local union loses

'rts

Federation

unlesstdues may no r b e

sollected as there would no longdr be; :ny labor union that b allowed to collect

, suchunionduesfromthe employees.

I Note: Follow the principle of agency

i between ederationand local.

:Principal emPloYees

, Agent - locaUchaPterof aoent- federation

CANCELLATION OF

The

Modes of AppealDenialor Cancellation y:1. Transmit records within 24 hours from

receipt of Memo of Appeal2. BUREAU decides within 20 days from

receiptof records3. COUiTTOF,APPEALS.RUIC 5' _

; " r i , ' . . : _ , , , ' r . , . ; .: : r \ . , ; . : 1 . , : : . , ,1 , , t . r .i ' i -

Bureau1. Transmit ecordswithin 24 hours romreceipt f Memo f appeal

2. SEC. OF DOLE decideswithin20 daysfrom receiptof records

3. COURTOF APPEALS Rule65

Note: Appealby memoof appealwithin 10days romreceipt f notice.

Grounds1. Graveabuseof discretion2. Violation f rules samended

ART. 238.REGISTRATION

SPEC

ART.CANC

2. ln ,asesn? lju:r anda;-rF.'priate



LABOR AW

LABOR ELATIONS

Legitimateindividual abor

union

RegionalDirector who

has jurisdictionover the placewhererespondentprincipallyoperates (30days todecide).

Any party-in-interest, if

grounds:1. Failure ocomplywithany oftherequirements underArts. 2U,237 and238,LC.

2. Violationof anyprovision

under Arf.239,LC.

Ghartered ocal

association

Federations BureauDirector (30days o decide)

Only themembersofthe labororganizationcorcerned ifgroundsareactionsinvolvingviolations f4tt .241,subject to the30% rule.

National orindustry unionsTrade unioncenters

Effectof Cancellatioh f Registrationn theCourseof ProceedingsWherea laborunions a party na proceedingand later t loses ts.registrationermitn thecourseor during he pendency f the case,suchunionmay continue s a partywithoutneed of substitutionof parties, subjecthowevero the understandinghat whateverdecisionmay be rendered hereinwill be

bindingonlyuponthosemembersof the unionwhohavenotsignifiedheirdesireo withdrawfromthe casebefore ts trial and decisiononthemerits

lPriqginte.of Agencyapptied--theemployeesare theprincipals,and the abororganizationsmerelyan agAft of the farmer,consequentty,the cancellationof the union's registrati6nwould not deprive the consentingmember-employeesd their ight to cdntinue fie 6aseas theyareconsidereds fhe pincipals).

ART.239:GROUNDSORCANCELLATIONOFUNION EGISTRATIONasamended yR.4.94811

Grounds:1. Misrepresentation,alse statement or

fraud n connection ith the adoption rratificationf heconstitr.rtionndby-lavrs

2. Or amendmentshereto. he minutesofratiflcation,nd he list of members hotookpart n he ratification:

3. Misrepresentation,alse $atements orfraud n connection ith fre electionofofficers.minutes f the election fofficers,

and he istof voters: nd4. Voluntaryissolutiony hemembers.

Note: Failure to submit reportorialrequirements s no longer a ground forcancelldion utshallsubjectheerringofficersor memberso suspension, xpulsion rommembership,r anyappropriateenalty.Art.242-4,newprovisionnserted y R.A.9481)

ART239-A:VOiUTTNNVCANCELLATIONOF REGISTRATIONNewProvision

inserted y R.A.94811

The registration of a legitimate labororganization, may be cancelled by theorganizationtselfPROVIDED:1. At least 2/3 of its generalmembership

vofes, n a meeting uly called or thatpurposeo dissolveheorganization;

2. An applicdion to canel registration issubmitted y he board f he organization,attestedo by hepresidenthereof.

Note:A pronouncements to the illegality fthe strike s notWthinhe meaning f Art.239of the Code,whichprovidesor thb groundsforcancellationfunion egistration.



Ssn Sebe@otlegefLsb


b. The collective argaininggreement,and abor avls.

3. RightsOvermoneyMatters the rights f

the members:a. Againstmpositionfexcessiveees,b. Rightagainstunauthorizedollection

of contributionsor unauthorizeddisbursements;

c. To require adequate records ofincome ndexpenses;

d. Toaccessinancialecords;e. Tovoteonofficers' ompensation;f. Tovoteonspecial ssessment;S. To bededucted special ssessment

only with the membefs writtenauthorization.4. lolitical right the right o vote and be

voted or, subject o lawfulprovisionsnqualificationsnddisqualifications.

Note:Any violation f the above ightsandconditions f membershiphallbe a groundfor cancellationof union registrationorexpulsionf an officerromoffice, hicheversappropriate.t least30%of all the membersof the unionor any member r membersspecifically. oncernedmay report suchviolationo heBureau.

UnionMembershipAny employee,whether employed or a,definiteperiodor not, shall,beginning n hisflrst day of service, be consideredanemployeeor purposes f unionmembership.(Att.277)

Note: The relationship f the union and

members is governed by their mutualagreement,he ermsandconditionsf whichare set forth n the unionconstitutionnd bylawsand binding n the members s wellasthe organizationtself. Poquiz,2@Q quotingAng Malayang Manggagawang Ang TibayEnterprises,t al. v. Ang Tibay,et al., GR No.L-8259,December 3, 1957).

Who Are Prohibited From BecomingMqmbers/O.t.ficersf a f.abor Organization

(Seehofes inddrA,ft.243 on personswh6 arenotgranted he ght to self-organization)1. Non-employeesArt.241[c]);2. Subversives or those engaged in

subversivectivitiesArt.241[e]) and3. Personswho have been convictedof a

crime nvolving oralurpitudehallnotbeeligibleor elec-tions unionofficeror forappointmento any positionn the union(4tt.241[t]).

Note: n general, union s freeto select tsownmembers,ndno person asan absoluterightomembershipn a union.

Who areentitled o vote:Onlymembers f the unionhave he eligibilityto takepart n the election f unionofficers.Eligibilityo votemaybe determinedhroughtheuseof theapplicableayroll eriod nd hestatus f the employeesuring he applicableperiod.This pertains o the payrollof themonthnext pr:ecedinghe labordispute, ncase of regularemployeeS'nd the payrollperiod tor near hepeakof operation,n case

of employeesn seasonalndustries.Tancinovs PuraFerrer-Calleia, .R.No. 78131,Jan.24,1988).

.". , . . . ; . - .

Limitations (See nofes on union securityarrangementsunder Art. 248)1. The labor organization annot compel

employeeso becomemembers f theirlabor organizationf they are alreadymemberJa RIVAL NION.

2" The.personsmentionedn Aft. 241[e](SUBVERSIVES)f the Labor Code areprohibitedrombecoming member f alabor rganization.

3. The members of RELIGIOUSORGANIZATIONho5'e eligion orbidsmembbrshipn labor organizationouldnotbecompelledntounionmembership.

Levy of SpecialAssessmentsorExtraordinary ees Art.24tNI)

Requirements:RAMM)

1. Theremustbe a writtenesoltttion;2. The resolution usthavebeen pproved

by a majority f allthemembers;nd3. The approvalmust be at a general

&embershipmeetingduly called or that

be att€b&chfi@ffi



LABORLAW

LABORRELATIONS

amounts due to the union for fees. fines orassessments.

Nature andPurposeof Gheck-OffUnion dues are the lifebloodof the.union.Al l

unions are authorized o collect reasonablemembership ees, union dues, assessmentsand fines and other contributions or laboreducation and research, mutual death andhospitalizationbenefits,welfare fund, strikefund and credit and cooperativeundertakings(Art.277[a)

RequiremenG With Regard to Check-Offs(4rt.241[o])

General Rule: NO special assessment,attorney's ees, registrationees or any other ,- ,..,extraordinaryfees may be checked off from--'any amount due an employee without anindividual witten authorization duly signed bythe employee

The authorization houldspecifically tate he:1. Amount;and2. Purpose and the beneficiary of the

deducdion.

Exceptions:1. For mandatoryaotivitiesprovided under

the Code,and2. When non-membersof the union avail of I

the benefitsof the CBA:a. Said non-merirbersmay be assessed

union dues equivalent o that paid bymembers;

b. Only by a board resolution approvedby majority of the members in ageneral meeting

called for thepurpo6e.

Note: The individualwrittenau(horization ulysigned by the employee is an additionalrequirement to RAM) in order that a specialassessment may be validly checked-off. lncase of check-off another requisite isnecessary n addition o the requirementsorspecial assessment,enumeratedabove andthis is, indiWual written authorization forcheck-off duly signed by the employee

concerned. (Eduardo J. Marifio, Jr. d al. vs.Gil Y. Gamilla,et al., G,R. No. 149763,July T,2009.)

Ju risdiction over Gheck-Off DisputesBeing an intra-unionconflic*, t'he RegionalDirectorof DOLE has jurisdictionover checkoff disputes.

dues,'ho or

and

tn

Req4

2.J.

He s

By writtenresolutionapproved bymajority of allthe membersat a meetingduty called orthat purpose

(Union ues)By obtainingheindividualwrittenauthor2ationduly signed bythe employeewhich mustspecifi amount,purpose andbeneficiary.

No exception;writtenresolution is

rmandaior atall nstances.

Not necessary:1. formandatoryactivitiesprovidedunder theCode; nd2. whennon-membersofthe unionavail of thebenefrts of

the CBASaid non-memoersmay beassessedagency eesequivalentto that paidby membersonly by aBoardResolution

approved ya majority fthemembersna generalmeeting

DuesSd$it#ffifrFffily

He



Ss$ Gebs@ollegef j[sb

2O1ICENTRALIZEDAROPERATIONS

Note: Individual rittenauthorizations notnecessaryor he collectionf agencyees.

Note: Agency fee cannotbe imposedonemployees lready n the serviceand aremembers f anotherunion. f a closedshopagreementannotbe appliedo them,neithermayan agency ee,as a lesserormof union

security,be imposed o them. Paymentby

non-unionmembers f agencybes doesnotamount to an unjust enrichment asicallybecausehe purpose f suchdues s to avoiddiscriminationetweerf nionand non-unionmembers NABAILU . San MiguelBreweryInc.,GR No.18170,August 1, 1963).

Employee-Membersf another Union NOTGonsidered reeRidersWhen the union bids to be the bargainingagent,t voluntarilyssumeshe responsibility

of representingall employees in theappropriateargainingnit.

CHAPTER IT. RIGHTS OF LEGITIMATEI.ABORORGANIZATIONS

ART.242RIGHTSOF LEGITIMATEABORORGANIZATIONS

Rightsof A LegitimateLabor Organization(USERFOE)il,;,:Unaertir<e.l'activities

-'for. benefit of

members;2. $ue andbe sued;3. fxclusive epresentativef all employees;4. lepresentunionmembers;fn c6fl-)5. fumished by employers of addited

financial tatements;6, $rn properties; nd7. Exemptedrom axes.

ART.242-A:REPORTORIALREQUf EMENTSNewProvision n*rted

by R.A.94811

Reportorialequirementso be submitted y

the egitimateabororganization:1. C6nstitutionnd byJaws, r amendments

thereto,minutes f ratification,nd he ist

of memberswho took Part in the

ratificationf the constitutionnd by-laws

within 0 days romadoptionr ratiflcation

of the constitutionand by{aws or

amendmentshereto;q

2. Listof officers,minqtes f the election f

officers, nd listof voterswithin30 daysfromelection;

3. Annualinancialeportwithin 0daysafter

thecloseof every iscalYear; nd4. List of members t leastonc€a yearor

wheneverequiredY heBureau'

Note: Failure o complywith the above-

mentionedequirementshallnotbe a ground

for cancelldion f union registraticn ut shall

su6ject he erring officersor members o

sus-pension,xpulsionrom membership' rany appropriateenalty.As nserfed y Sec'

7,R.A.9481)

TITLEFIV.E. OVERAGE

ART. 243:COVERAGE ND EMPLOYEES'RIGHT OSELF-ORGANIZATION

Eitent ot the Right o Self'Organization1. To form, join and assist labor

organizationsor the purpose f collective

baigaininghroughepresentativesf theirownchoosing;nd

2. To engagen laMulconcertedctivitiesor

the samepurpose r for theirmutualaid

andprotec'tion.Art' 246)

Members f a union orthe payment of uniondues

May not be deductedlMay e deductedromfrom the salaries of the lthe salary of employees

union memberswithoutlwithout their writtenthe written consentoflconsent



LABORLAW

LABORRELATIONS

Persons/EmployeesEligibte to Join a LaborOrganization for Purposes of CoilectiveBargaining

1. All persons employed in gommercial,lndustrial and ggricultural (ClA)enterprises, including employees ofGovernment-owned or controlledcorporation without original chartersestablished under the CorporationCodeancl

2. In leligious, gharitable, medical orgducational (RCME) institr.rtions hetheroperating or profitor not.

Persons/Employees eligible to join a labororganization for mutual aid and protection:(AlRStW)1. Ambulant; (Walkingor Mobile Workers)2. lntermittent (lrregularworkers)3. Sural;4. gelf-employedpeople5. ltinerant workers ( Working or a short ime

in vaious flaces); and6. Workerswithoutany definiteernployers.

Persons/Employeeswho are NOTgrantedthe

i ght to self-organizafion; (HEMACENGA)1. High-level or managerial governmentemployees Sec.3; E.a. 150\;

2. Employees of internationalorganizations'withimmunities /CMCv. Calteja,GR No.

85750, September2A, 1990\,3. [anagerial employees

a. Whose functions are normallvconsidered as policy+naking ormanagerial;

b. Whose duties are of a highlyconfldential or highly technical innature (Aft.212, LC\;

4. Members of the grmed Forces of thePhilippines, including police officers,policemen, iremenand ail guards Sec.4,E.O. 180);

5. Gonfidential employees (Metrolab/ndusfnes lnc. .v. Confesor. GR No.108855,February 28, 1996);

6. lmployees of cooperativeswho are at the- ,-., ?tn€ lrme,its;,membe6 {genguet Etec.

Coop. v. Ferrer-Calleja, GR No. 79025.December

29, 1989\; However, they mayform a workeds association WEEC1Employees' Assoc- v. NLRC, GR No.116066,January 24,'2000).

7. Non-Employees (Rosario Bros. v. Ople,

- GR No.L-53590, uty31,1984)8. Qovernment Employees, including

Government-owned and controlledcqrporations with original charter (Arizalav. cA, 189 SCRA5W)

9. f,liens without valid working permits; orAliens with valid working pelniits but are

nationalsof a countrywhich do not grantFilipinos to exercise the right of self-organization nd to join or assist labor

organizations. (Article 269, Labor Code;Deparlment Order Na. I [1997], Rule ll,Sec.2.l

Eligibil i ty of Foreigners to Form LaborOrganizationAliensworking n the countrywith validpermitsissued by DOLE, may exercise the right toself-organization nd join or^,assist labororganizationsof their own

*choosingfor

purposes of collective bargaining;provided,that said aliens are na tionals of a country

.which grants the same or similar rights toFilipinoworkers. Att. 269) This embodies.thePRINCIPLE F RECIPROCIry.

ReligiousObjectorsThe righis of the members of the lglesia niKnsfo sect not to join a labor union fcr beingcontrary o their religiousbellefs does not barmembersof that sect from forming heir ownunionl The recognitionof the tenets of thatsect should not infringeon the basic right to

self organization rantedby the Constitutionoworkers regardless of religious affiliation.(Kapatiranv. Calleja, GR No. 82914, June 20,1988) .

In fact, they can vote for "No-Union" n acertificationelection in the exercise of theirright to self-organization.(Reyes v. Trajano,GR No. A$3, June 2, 1992)

ART. 244: RIGHTSOF EMPLOYEES N THEPUBLICSERVICE

governed

Code canwith the

lHn



5un EeM @ollege ["elr


the terms andconditions of

employment.hus, hey

have unlimitedbargainingights.

Can orm,oin,orlabor organization orpurposes fCBA,etc.

they can(through collective

negotiation greementsor MOA) with thegovemmenton thosetermsandconditions femployment hich arenot fixedby law. Thus,they have limited

only orm, oin orassist labororganization forpurposesnot cor,traryto law

Forming,Joining,or AssistingEmployee'sOrganization ,. ,,ri.".GeneralRule: ALL government mployeescan form, join or assist emPloyees:organizationsf their own choosingor theturtherbnce nd protectionof their interests.They can also form labor-managementcommittees,ork councils nd other ormsofworkers' articipationchemeso achievehesameobjectivesSec.1, E.O.180).

Exceptions:1. High-levelmployees hose unctions re

normally onsidereds policy-makingrmanagerialr whoseduties reof a highlyconfidentialatureSec. , E.O.180);nd

2. Membersof the Armed Forcesof thePhilippines, ncluding police officers,policemen,iremen nd ailguards Sec.4,E.O.180)

Nob: Employees f governmentorporationsincorporatednder he Corporation odeandregisteredwith SEC are governed by theLaborCodenotbyE O. 180.Theyarealloledto organizeor:1. They are not involvedn publicservice;

and2. Termsof employment re not ixedby aw.

Protection f the Right o Organize1. Governmentemploveesshall not be

, discrimfin*d iagiini by reason''of heirmembershipn employees' rganizationsor participationn the normalactivitiesoftheirorganizationSec.5, E.O.1ffi).

Z Theiremploymenthall not be subjectothe condition hat they shall not join orshall relinquishheir membershipn theemployees' rganizdions/bid .

3. Government uthorities hall not interferein the establishnrent, unctioning or

administrationf governmentmployees'organizationshrough acts designed oplace uchorganizationsnderhe control

of government uthority Sec 6, E'O

1ffi\.

Terms and Conditionsof Employment n

GovernmentServicesGeneralRule: The termsand conditions f

employmentr improvementsn governmenl

servicesmay be the subjectof negotiations

between duly recognized emplcyees

organizations nd appropriategovernment

authoritiesSec.13,E.O.1ffi).

Exception:Those terms agd conditions f

employmenthatare ixedby aw/bid')'

Negotiable Terms and Conditions of

Em-ployment n GOCCS with Otiginal

Charter1. Schedulefvacation ndothereaves;

2. Workassignmentf pregnant omen'

3. Personnelrowth nddevelopment;4. Communication ystem - lateral and

vertical:5. Provisionor protection ndsafety;

6.*Frovision for facilities orhandicapped

personnel;7. itrovisionor first-aidmedical ervicesor

married omen;8. AnnualmedicaUphysicalxamination;nd

9. Recreational,ocial,athleticand cultural

activities and facilities (Rules

lmplementing .O. 180\

The Following are considered NOT

Negotiable

1. Those which require appropriationf

funds. uchas:a. Increa6en salary molumentsnd ..

Other allowance not Presentlyprovidedor bY aw;Facilitiesequiingcapital utlays;

Carplan;b.

d.

e.

Extemal



LABORLAW

LABORRELATIONS

To sum up, governmentemployeescoveredby EO. No. 180mayorganize, ven unionize,and negotiateemployment onditions ot fixedby faw but they cannotstrike. (Azucena,2007)

Registration of Employees' Organization

Wrcre fo RqgrsferGovernment employees' organizationsshallregisterwith the CivilServiceCommission ndDOLE.

The applicationshall be filed with the Bureauof Labor Relations BLR),which shall process

the same in accordancewtth the provisionsofLC.

,.::t:-1i..':r.,5itX

Applicationsmay also be filed with theRegional Offices of DOLE, which shallimmediatelyransmithe saidapplicationsotheBureau f LaborRelations ithinhree 3)days rom eceipthereofSec.Z E.O.1ffi).

lssulmce oi Rqi stration CertifiateUponapproval f theapplication, registration

certificatehallbe issuedo the.organizationrecognizingt as a legitimateemployees'organization ith the right to representtsmembers nd undertake ctivitieso furtheranddefendts interest.

The certificatesf registrationhallbe oinflyapproved y he Chairmanf the CivilServiceCommission nd Secretary f Labor Sec.8,E.O.18O).

VoluntaryRecognitionA duly registeredemployees'organizationshallbeaccorded oluntaryecognition:1. upona shoving hatno otheremployees'

organizations registered r is seekingregistration,. ased on records of theBureau f LaborRelations;nd

2. the said organizationhas the majoritysupportof the rank-and-file'mployeesntheorganizationalnit Sec.11,E.O.1B0).

certlficadoii-Etii:uon

'j*:

"t lWhere here are two or moreduly registeredemployees' rganizationsn the appropriateorganizationalnit,' he BLR, upon petition,shall:1. Order the conduct of a certification

election; nd2. Certify the winner as the exclusive

representative of the rank-and-fileemployeesn saidorganizationnit(Sec.12,E.O.1W).

JurisdictionAny dispute which remains unresolvedafter

exhausting all available remedies unclerexisting aws and proceduresmay be jointlyreferred by the parties to the Public SectorLabor-ManagementGouncil for appropriate

action.

Likewise, he PSLMC has jurisdiction o hear

charges of ULP filed bY government

employees against their employer. lt ig

composedof the following: "q.1. Chairman CivilSeMce Commissioner;2. Vice-Chairman Secretaryof Labor;and

3. Members'.a. Secretary f Financeb. Secretaryof Justice

. c. Secretary of Budget (Sec. 15, E.O.

1W).

ART. 245: INtsLIGIBILITYOF MANAGERIALEMPLOYEES TO JOIN ANY I.ABOR

ORGANIZATION:RIGHTOF SUPERVISORYEMPLOYEES

1. Managerial Employees - thosewho arevested with powers or prerogatives o lay

down and execute managementpolicies

and/or to hire, transfer, suspend, lay-ofirecall, discharge, assign or disciplineemployees.



5an Spls @ollege f Ado


to be on he sideof the employero act asits representatives,nd o see o it that tsinterests rewellprotected.heemployer

is not assured f suchprotectionf theseemployeesreunionmembers.

In hesamemanner,he abor nionmightnot be assured f their oyaltyo the unionin view of the evident onflict f interest.The unioncan also becomecompany-dominated with the presence ofmanagerial employees in unionmembershipBulletinPublishingCo. lrrc.v. Hon.Sanchez,GR No. 74425,October

7, 1986).

Note: Art. 245 does not absolutelydisqualify rirahagerial mployeesfi${inlr':

exercisingheir rightof association. hatit prohibitss merelyhe right o oin labororganizations.

2. SupervisoryEmployees thosewho, nthe interestof the employer, ffectivelyrecommenduchmanagerialctionsf the

exerciseof such authority s not merelyroutinary or clericat n nature but requiresthe useof ndependentudgment.

Supervisory Employees May Form,Assist,Join A LaborOrganizationOn theirownand NOTwith he rank-and-file employeesR.A.6715as amended yR.4.e481))

lf their responsibilitieso not inherentlyrequire the exerciseof discretionandindependent judgment, (or merelyroutinary/clericaln nature)hen hey mayjointhe unioncomposed f the rank-and-file employees.

Note: lt is the natureof the employee'sfunctions ndnot he nomenclaturer itlegiven o his ob whichdetermineshetherhe hasa rankand ileor managerialtatus(EngineeringEquipme.nt,nc.- v. NLRC,

The rank and file union and thesupervisors' niorl operating. ithin thesame establishmentmay jcin the samefederationor nationalunion(As Amendedby R.A.9481).

Separationof UnionsDoctrineHowever, n the caseof AflasLithographicSeryices nc. vs. Laguesma, G.R. No.96566,January 6, 1992)a supervisor's

union and a rank-and-filenion in the

same company cannot affiliate with the

same ederation f the followingconcur:

a. The rank-and-file employees are

directlY under the authoritY ofsupervisorY mPloYees;nd

b. The national federation is ac{ively

involved in union activities in the

company.

3. Confidential Employees - A confidential

employee s one entrustedwith confidence

on deiicate matters,or with the custody,

handling, or care and protection of the

employer'sProPertY.

By the very natureof their functions, hey

til assist and act in a confidential

capacity, (2) to persons who formulate,

deiermine,' nd effec'tuatemanagement

policies n the fieldof laborrelations'

ThETWO CRITERIAARE CUMULATIVE'

and both must be met if an employee s to

be considereda confidentialemployee-

* e.9., ,the-confidential

relationship must

eii"i between the emPloYee and his

SUPERVISOR,and the supervisormust

handle the prescribed responsibilities

relating to labor relations.As such, the

rationa-le behind the ineligibility of

managerialemployees o form, assist or

join a labor unionequallyapplt-eso them''(PtDt

v. NLRC, GR No. 88957, June 25'

1992) Under the doctrine of necessary

imptication, confidential employees are

similarfy disqualified' (NATU-Republic

Planters Bank v' Torres, GR No' 93468'

December 29, 1994).

Note: The Phrase'lN THE FIELD OF

LABOR RELATIONS' is imPortant' lt

stressesabornexus,.e.confidentialityf

the' oosition-isrMn&Jhked to labor

relati

IS

notr havingof the

not every

managerial,



LABORLAW

LABORRELATIONS

he may be a supervisoryor eve.narank-and-file mployee.

ART. 245-A: EFFECT OF INCLUSIONASMEMBERSOF EMPLOYEESOUTSIDETHEBARGAININGUNIT(new provision inserted

by R.A.9481)

The inclusionas union membersof employeesoutside he bargaining nit shall NOT be aground for the cancellationof the registrationof the union.Said employeee re automaticallydeemed removed rom the list of membershipof saidunion.

Reason: After a certiflcate of registration isissued o a union, ts legal personality annot

be subject to a collateralattack lt may bequestionedonly via a petition or cancellation,under he grounds, rovided or irrArt.239.

ART. 246: NON-ABRIDGEMENTOF THERIGHTTO SELF-ORGANIZATION

It Shall Be Unlawful For Any Person to:(RcDr)1. fiestrain;2. Qoerce;

3. Qiscriminategainst; r4. Unduly lnterfere with employees andworkers in their exerciseof the right toself-organization.

Note: Any act intended to weaken ordefeat the right.is regardedby law as anoffense, which is technically called"UNFAIR ABORPRACTICE'.

TITLESIX.UNFAIRLABOR PRACTICES

CHAPTER . CONCEPT

ART.247:UNFAIRLABOR PRACTICES

Unfair Labor Practice1. Any unfair labor practice as expressly

definedby the Code.2- Any act intendedor directed o weaken or

defeat he worker's ight o self-organize rto engage in lawful concerted activities

' ' ' . ( A z u i eha , , 20o7 ) ., ' - , '

Natureof UnfairLaborPractices:1. Ciminaloffenses gainsthe State;2. Violations f civil rightsof both abor and

management;3. Violate he constitutionalight of workers

' andemployeeso self-organization;4. Are inimicalto the legitimafe nferesfs of

both labor and management,ndudingtheir right to bargaincollectively nd

otherwise deal with each other in an

atmosohere of freedom and mutual

respect;5. Disrupt ndustial peace, and6. Hinder he promotionof healthyand stable

labor-managementelations and mutual

respect (unstable labor-managernentrelations).

Elementsof Unfair Labor Practice1. Employer-employeeelationshipbetween

the offenderand he offended;and

2. Act done is expresslydefined n the code

as an act of unfair aborPractice.

Note: Prohibitedacts"r" "ff

related to the

workers' self-organizational ight and the

observance of a CBA, except Att. 248[t],dismissing or prejudicing an ernployee for

giving estimony nder he Code.. '1"telement of ULP does not apply to

yellowdog condition. ULPhasa technicalmeaning.r lt is a practiceunfair o labor,althoughhe

offendermay either be an employeror a

labororganization.o Jt refer$ o dcts opposed to workers' right

to organize (Anti-unionism acfs). Withottt

this, the act, no matter how unfair, s notULP.

e lt commonly onnotesanti-unionism.r lt also refers to gross violation of CBA

provisions. Gross means the act is

malicious nd lagrant.e ULP cases are not, in view of the public

interest nvolved^ ubject to compromise.

(See CLLC E.G. Gochuangco Worker'stJnionvs. NLRC, G.R. No. 67158,30 May

1980:AFPMutualBenefit Association, nc.

vs. AFP-MBAI-EU, 97 SCRA 715, 732t1e80l)

o However. n the case of ReformistUnion

94

-ry



$an &ebs@ollegetLdn


Aspects of Unfair Labor Practice

1. Oficersandagenbofemployer; r

2. Labor organization,ofiicersand agents.

1. Agents and ofhcerswho pafticipated

authoized or rdifiedthe act and

2. Agents,representatives,members of thegovemment board,including ordinary.members.Att. 289 &

Att.249)

MTC/RTC, as thecase may be (Art.288)

substantial vidence beyond reasonabledoubt (subject toprosecution andpunishment)

. one year from theaccrual fthe ULPact(Art 290), however,twill be suspendedonce theadministrative casehas been filed andwould only continuerunning once theadminbtrative case

has attainedinality.. Final udgment n the

administrativeproceeding findingthat ULP has beencommitted is aprerequisiten filing acriminal ase or ULP.

Note: Final udgment nthe administativeproceedingshall not be

biFqlns n,the.criminalc6e hor 'shall - beconsidered as anevidence of guilt butmerely as a proof ofcompliance of therequirements rescribedby he Code.

one year from theaccrual of the ULP act(Att. 290\

itiri*. :;j+j)ril+

CHAPTERII. UNFAIR LABOR PMCTICES

OF EMPLOYERS

' ART.2€: ULP THAT MAY BE COMMITTED

BY AN EMPLOYER

1. lnterferenceTo interfere with, restrain or coerce

employeesn the exerciseof their right o

self-organization.

Test: whether he employerhas engaged

in c-onductwhich, it niey reasonablybe

said, tends to interfere with the free

exercise of the employees' right and it isnot necessary that there be direct

evidence hat any employeewas in facti:"':::\ 'r'

intimidatedor coerced by the statements

of threats or the employer if there is a

reasonablenterferencehat the anti-union

conduct of the employer does have an

adverse effect of self-organlzation and

collective bargaining. (The lnsular Life

Assurance-NATtJ v. The lnsular Life

* Assu.rancbCo., Lld., No.L-25291 January

30, 1971)

Totality of Gonduct DoctrineThe culpability f employe/s emarkss to

be evaluatednot only on the basis-of heir

implications, ut against he baclgroundof

and in conjunction with collateral

circumstances. b d.\

Examples:a. Outrightand unconcealedntimidation

b. In order that interrogationwould notbe deemedcoercive:i. The emPloYermust communicate

to the emPloYee.he PurPoseof

questioningii. Assure him that no reprisalwould

i i i .



LABOR AW

LABOR ELATIONS

interests of the company reasonably

demand t. Unless hereare circumstances

which directlyrcint to interference y the

companywith the employees' ight o self-organization,he transferof an employee

shouldbe considered s within he bounds

allowedby law (e.9.despite ransfer o a

lower position,his original ankandsalary

remained undiminished) (Rubberworld

Phits., v. NLRC, GR No. 75704, JulY 19,

1989).

2. Yellow Dog ConditionTo requireas a condition or empoyment

that aperson

oran employee hallnot oin

a labororganization r shallwithdraw rom

oneto which he belongs.

Yeltow Dog Contract - a promiseexactedfrom workers as a condition of

employment hat they are not to belong o,

or attempts to foster, a union during theirperiod of employment. t is null and voidbecause:a. lt is contra4y to public policy tor it is

tantamounto involuntary ervitude.

b. lt is entered into withoutconsiderationfor employees n waiving heir right oself- organization.

c. Employees are coerced to signcontracts disadvantageous to theirfamily.

Note: One of the cases of ULP that maybe committed in the absence of an Er-Eerelationship.

3. Gontracting OutTo contract out services or functionsbeing- performed by union members when such

will interfere with, restrain or coerceemployees n the exerciseof their right oself-organZation.

Does M. 248[c] mean that an employercannot contract out work?NO. Contracting out services is not ULP

"..pet s9r [t i-s,UlrP ,only,wQenthe.foilowing' '"cbnditiori5'exist

1. The service contractedout are beingpefiormed by unionmembers;and

2. Such oontracting out intefferes with,resfrains, or coerce employees in theexercise of their ight to seff-organization.

HOWEVER, when the contracting out isbeing done for business easonssuch asdecline in business, inadequacy ofequipment'or to reduce cost, then it is a

valid exerciseof managementprerogative.

RunawaYShoP - an industrialPlantmovedby its ownersromone ocationo

another o escape abor regulations r

state lawsor to discriminateagainst

employees t the old plant becauseoftheirunion ctivities.

4. CompanY-Dominationf Union

To initiate, ominate, ssistor otherwse

interfere with the formation or

administrationf any labororganization,

includinghe'giving f financial r other

supporto it or tsorganizerg.'orfficers'

GompanyUnionism/Gaptivenionism

ConsiOereds a ULPbecausehe officerswillbebeholdeno theemployersnd hey

will not ookafter he nterest fwhom hey

represent.

Forms.'a. . Initiation f the coinpanyunion dea

by:i. Outrightormation y employer r

hisrePtesentatives;ii. Ehployee formationon outright

demand r influence Yemployer;and

iii. Manageriallymotivated ormation

bYemPloyees-i

b. Financialupporto theunion y:

i. Employerefrays nion xpenses'

ii. PaYs attorneY's ees to l ''"attorneY who drafted the

Constitutionor bY lavs of the

union;

c. EmPloYer encouragement andassistance lmmediately rantingof

exclusive ecognition s bargainingagentwithout etermininghetherhe

giority of the

legesunder



5uu Sele @ollege t {.slo


directed o encourage r discourageunionmembershio.

Three Components f Discrimination:a. lt prohibits iscriminationn termsand

conditionsof employment n order toencourageor discouragemembershipin the union;

b. lt gives validity to union securityagreements; nd

c. lt allolllsan agencyshop arrangementwhereby agency fees may becollected rom non-unionmembers.

Discrimination Distinguished fromClassificationWhile discrimination s consideredan unfairlabor practice,classifications not because tmerely differentiates the employees inaccordance with their respective obs andaccords hem the appropriateevels of pay orbenefitsdue them by reason hereof.

6. Discrimination because of TestimonyTo dismiss, discharge or otherwiseprejudice

or discriminate against anemployee or havinggiven or being aboutto give testimony under this Code (Iheonly ULP ad which s not anti-unionism\.

Subject Matter of Testimony: can beanythinguncjerhe Code.

What is ULP is the employer's etaliatoryact regardless f the subjectof employee'scomplaint or testimony. In effect, if aretaliatoryact is done under Arf. 1'l8, theconsequence is ULP under Art. 248[fl(Mabeza v. NLRC,'GR No. 118ffi6, April18,199n.

7. Violationof Duty o BargainTo violate he duty o bargain ollectivelyas prescribedy hisCode.

The fottowingacts are held to constituterefusal o bargain:a. Alesing hat he-unions rresponsible;

;' jI b') i'Tibnsferring,opi:ration'io 'elude theunion;Run Away hop);

Run-AwayShop - is an unfair aborpractice f.managementhichusuallytakesplaceby effectinghe transferofownership, he plant itself, or itsequipment, r by temporarily losingits businesspurposely o bust theunion or. to evade he paymentoflegitimate bligations.

c. Delaying negotiations by discussing

unrelatedmatters;d. Refusalo accept equestso bargain;

e. Rejectinga union's offer to prove itsmajority laim;

f. Shutdowno avoidbargaining; nd

S. Engagingn surface argaining.

'Surface Bargaining- going through

the motionsof negotiatingwithout any

legal ntentto reach an agreement. t

involveshe questionof whetheror not

the employeis cQnductdemonstrates

an unwill ingnesso bargain n good

faith or is merelY hard bargaining(Standard Chartered Bank v. Hon.

Confesor,GR No. 114974'June 16,.i:',.-.'":i:. 2004June 2AA4).

8. Paid NegotiationTo pay negotiation r attorney'sees to the

unionor its officersor agentsas partof the

settlement of any issue in collective

bargaining r anYotherdisPutes.

t Vi6tation of cBAThe violation must be gloss; flagrant

and/ormalicious efusal o complywith the

. economicprovision f the CBA (Art' 261)'

Note:GROSSLYVIOLATE" hrase s an

amendmentbY R.A. 6715. Nence, if the

violation s not gross, it is not ULP but a

grievanceunder he CBA

Note: All the aforementioned cts (Nos, '1-9)

must have a relation to the employees

exerclseof their right o self-organization nti-union or anti-organizationmotive must beprovedbecause t is a definitionalelement of

ULP.

Theburden shouldersof

asa S&b*t#effiSd

ofunion

on

where

exercisingmployer



LABORLAW

LABORRELATTONS

discharge,and the employeequitsas a resultof the prohibition.

Security Arrangements-

stipulations n theCBA requiringmembership n the contractingunion as a condition for employment orretention f employmentn the company.

Principles of Union SecurityClauses/Arrangements1. Protection - to shield union members

from whimsical and abusive exercise ofmanagement rerogatives.

2. Benefits - an additionalmembershipwill

insure additionalsource of income to theunion in the form of union dues andspecialassessment.

3. Self-preserv3tioft-.:r,-,it:.strengthenstheunion hroughselectiveacceptance f newmemberson the basis of commitmentandloyalty.

Different Kinds of Unircn SecurityArrangements (Exceptions to ULP onlnterference on the Employees' Right to Self-

Organ zat on) (CUMM PA-BE)

1. Closed-ShopAgreement. The employer undertakes not to

employany individualwho is not amember of the contractingunion andthe said individual once employedmust, for the duration of theagreement, emain a member of theunion n good standingas a conditionfor continued mployment.

r Does not have any retroactivity.r Appliesonly o nsv hires

Exceptions:a. Employeesbelonging o any religious

sect whicfr prohibitaffiliationof theirmemberswith any labor organizationare not covered by such agreement.The free exerciseof religiousbelief ssuperior to contract rights (Vidorianov. Hizalde Rope Workers, No. L-

1... 25246,.Septemberf2, 9741.b.'::'Membeisof the rival tlnion are not

coveredby such arrangement.c. Confidentialemployees excluded from

rank and ile bargaining ni td. Employeesexcludedby express erm

' of the agreement

Semi-Closed Shop Agreement - theprospectiveemployee must be a memberof the unionas a conditionof emfloyment

' and has no requirementor the employeeto remain as member of the contracting

union in good standing as a condition or

continued mployment.

2. UnionShop AgreementStipulationwhereby any person can be

employed by the employer but onceemployedsuch employeemust, within a

specificperiod,becomea memberof thecontracting nionand remainas such ingood standingfor continuedemploymentfor the durationof the CBA. (Takenote of

the exceptions n the precedingnumber.l

3. Maintenance of Mef,iOersnip Shop

AgreementThe agreementDOES NOT require non-

memberso join the contracling nion BUTprovides that those who are membersthereofat the time of the executionof the

CBA and those who maY thereafter,on

their own volition,becomemembersmust

fo;'the durationof the agreementmaintain

their membership n good standing as a

condition or continuedemploymentn the

< company or the durationof the CBA.

4. lreferential Shop AgreementAn agreernent whereby the employer

merely agrees to give preference o the

members f the bargaining nion n hiring,promotion r filingvacanciesand retention

in case of lay-off.The employerhas the

right o hire from the open market f union

membersare not available.

5. f,gencyShopAgreement

An agreementwhereby employeesmusteither oin the unionor pay o the unionas

. exclusivebargaining genta sum equal o

thatpaidby the members.

Note: This is directed against "FREE

RIDER" fromunion

tr

thejoin



Ser SeDe olleged [.s16

2OII CENTRALIZEDAROPERATIONS

7. fxclusive Bargaining ShopThe union is recognizedas the exclusivebargaining gent or all employeesn thebargainingunit, whether union membersor not.

8. Eargaining or MembersOnlyThe union s recognized s the bargainingagent only for its own members.

Requirements or a Valid Termination'bythe Employer of the Services Closed-ShopAgreement1. The agreement must be expressed n a

CLEAR AND UNEOUIVOCALway so asnot to leave room for interpretationbecause t is a limitationo the exerciseofthe right o self-organization.

2. Any doubt must be resolvedagainst theexistence of a closed-shopagreement.

3. The agreement can only havePROSPECTIVE APPLICATION andcannot be applied retroactively.

4. lt can only be exercised by giving theemployeehis rightto DUE PROCESS.

a. The employerhas the right to satisfyhimself hat there are sufficientbasesfor the requestof the union.

b. The terminationof the servicesof theemployee is not automatic upon therequestof the union.

5. lt CANNOT BE APPLIED to employeeswho are already MEMBERS OF THERIVAL UNIONor to the employees asedon theirRELIGIOUS ELIEFS.

CHAPTER II. UNFAIR LABOR PRACTICESOF LABOR ORGANIZATIONS

ART. 249: UNFAIR LABOR PRACTICESOFI-ABOR ORGANIZATIONS

1. To restrain or coerce ernployees in theexercise of their right to self-organization.However,a labor organization hall havethe right to prescribe its own rules withrespect to the acquisition or retention of

Notq INTERFERENCEby tabororganizations not ULP as long as theinterference oes not amount o restraintor coercion.

2. To causeor attemgto causean employerto disciminate againg an employee,including discriminationagainst anemployee with respect to whom

membership n such organization asbeendeniedor to terminate n employeeon anyground ther han he usual erms

and conditionsunder which membership

or continuationof membership s made

availaUe o othermembers;

Note: A union member may not be

expelled rom the union,and consequently

from his job, for personal or impetuous

reasons or for causes foreign to the

cfosed-shopagreement. (Manila Mandarin

Employees lJnion v- NLRC, No' L-76989'

September29, 1987)

3. To violate the duty orgpfuse to bargain

coltedively with the employer provided

that it is the representative of theemployees;

4. To causeor attempt o causean employer'

to payrir:deliveror agree o pay or deliver

any money or other hingsof value, n the

nature of an EXACTION, for services

which are not Performedor not to be

performed, ncluding he demand or a fee

for union negotiations.

- Featherbddding (make-work activities) -

refers to the practiceof the union or itsagents in causing or attempting o cause

an employer o pay or deliveror agreeto

pay or deliver money or other things-ofvaiue, in the nature of exaction, for

serylceswhich are not performedor not to

be performed,as when a union demands

thai the employer maintain personnel n

excessof the latte/s requirements'

. Note: lt is not featherbedding f the work is

performed no matter how unne@ssaryoruseless t may be.

5. To ask for or accept negotiation or

attorney's fees from employers as part of

the settlement of any issue in collective

sar*mm.me

dispute.

Resulting substantiallyontrac{' -



LABORLAW

UIBOR RELATIONS

and whose benefitsare far below hose thatare providedby law.

Blue-Sky Bargaining - is definedas makingexaggerated or unreasonable proposals.

Whether or not the union s engaged n blue-sky bargaining s determinedby the evidencepresented by the union as to its economicdemands. Thus, if the union requiresexaggerated or unreasonable economicdemands, it is guilty of ULP (StandardChartered Bank v. Hon. Confesor. GR No.114974,June 16 2004).

T]TLESEVEN.COLLECTIVEBARGAININGAND ADMINISTRATION F AGREEMENTS

ART. 250: PROCEDURE N COLLECTIVEBARGAINING

Collective Bargaining - obligation o meetand convene promptly and expeditiously ngood faith for the purpose of negotiatinganagreement Wth respect to wages, hours ofwork arid all other terms and conditions ofemployment ncludingproposals or adjustingany grievances or questions arising undersuch agreement

and executing a €ntractincorporating uchagreementsf requested yeitherpartybut suchdutydoes not compelanyparty to agree to a proposalor to make anyconcession. Art- 252)

General Rule: Ng court or administrativeagencyor officialshall havethe power o setor fix wages, rates of pay, hours of work .orother terms and conditions of employmentexcept as otherwise providedunderthe LaborCode.

Purpose to encourage a truly democraticmethod of regulating he relationsbetween heemployers and employees by means ofagreements freely entered into throughcollec'tive argai ing.

Exceptions.'1. National Wages and productivity

Commission and Regional TripartiteWage6and Productivity-Board- s to wage

fixing (Arfs. 99 and 122)2. NationalConciliation nd MediationBoard

and the National Labor RelationsCommission- as to wage distortions (Art124)

3. Secretary of -Labor and Employment an<jPresident of the Philipprines-as tocertification and assumption powers overlabor disputes (Art. 263[9])

Ju risdictional Precond tions {D-PPE)1. mployer-employee elationship2. lossession of the status of majority

representation by the employees'representativen accordancewith any of

the means of selection or designationprovidedor by the LaborCode;

3. Proof of majority representation(Certification of the BLR that therepresentativeof the employees s thesole and exclusive bargaining agenthavingwon in a certification lection); nd

4. pemand to bargain under Afticle 250[a]otthe LaborCode (KlokLogv. NLRC,No. L-54334, January 22, 1986):

Note: Wherea majority epresentativeasbeen designated, t is an ULP for theemployer, as a refusal of collectivebargaining, o deal and negotiatewith theminority representative o the exclusion ofthe majorityrepresentative.

Collective Bargaining Agreement (CBA) - acontract executed upon request of either theemployer or - the exclusive bargainingrepresentative f the employees,ncorporating

the agreement, eachedafternegotiations ithrespect o:1. Wages;2. Hoursof work;and3. All other terms and conditions of

employmentn a bargaining nit, ncludingproposals or adjustingany grievanceorquestion under such agreement. Davao

lntegrated Port Stevedonng Serubes v.Abarquez, GR no. 102132, March 19,

1993) (i.e. mandatory provisions forgrievances nd arbitrationmachineries)

Zipper Clause - a stipulation in a CBAindicating that issues that could have been

in a CBAhave beenin the CBA

maybe

oflfencour

100



$sn $els @ollege?tstn


5. lf not resolved, he parties may go towhere they want and lesort to any otherlavvfulmeans (either o settle the dispute

or submit t to a voluntaryarbitrator).

Note: During he conciliation roceedingnthe Board, he partiesare prohibited romdoingany act which may disruptor impedethe early settlementof the disputes(Art.250[d] LC).

Kinds of Bargaining1. Single Enterprise Bargaining - involves

negotiation between one certified labor

unionandone employer.2. Multi-employer bargaining involvesnegotiation between and among severallabor unionsand employers.

Stages in the Negotiation for a CollectiveBargaining Agreement (PreNEP-RRAI)1. Preliminary Process - written notice for

negotiation which must be clear andunequivocal.

2. NegotiationProcess.3. lxecution Process - signing of the

agreement.4. Publication for at least 5 days before

ratification.5. $atification by the majority of all the

workers n the bargainingunit representedin the negotiation not necessary n caseof arbitral award)

6. EegistrationProcess.a. requisitesor registration:b. mandatory rovisions;c. paymentofP1,000;

d. 5 copiesof CBA; ande. proof of ratification.

7. {dministrationProcess the CBA shall bejointly administeredby the managementand the bargaining gent for a periodof 5years.

8. lnterpretationand Application Process.

Mandabry Provisions of the CBA1. Wages,2. Hours of work:

, 5s*.'bii6ia6ce:m"bnineh4. Voluntaryarbitration;5. Familyplanning;6. Rates of pay;and7. Mutual observanceclause.

ln addition, he Bureaurequires hat the CBAshould include a clear statement of the termsof the CBA.

Note: Employer'sduty to bargain s limited oMANDATORYBARGAININGSUBJECTS:as

to othermatters,he is free to bargainor not to

bargain.

ART. 252: MEANING OF DUTY TOBARGAINCOLLECTIVELY

Where NO CBA Exists

The performance f a mutualobligation:'

1. To MEETAND CONVENEPromPtlYnd

expeditiouslyn good faith or the purpose

of negotiatingan agreementwith respect

to wages, hours of work and all other

terms and conditiqrs of employment

including proposals for adjusting any

grievances or questions arising unclersuch agreement; nd

2. TO EXECUTE A CONTRACT

incorpolating . such agreements if

requested YeitherPartY.

Limitations1. The duty to bargaincollectivelydoes not

compelanYPartYo:a. ,\gree o a ProPosal;b. Makea concession; r

c.' Make room for "take it or leave it "

Posture.2. The parties cannot stipulate terms ancl

conditions f employmentwhich are below

the minimum requirementsprescribedby

law,

Where CBA Exists (See lVofes under Art.

253)Note: Collective argainingdoes not end with

the execution of the agreement. lt is .acontinuous process. The duty to bargain

imposeson the partiesduring he term of theiragreement he mutualobligation o meet and

conferpromptlyand expeditiously nd in good

faith for the purpose of adjusting any

grievances or question arising under s_uctl

agreement v. ClR,

whichlonger

Collective261, Labor



LABORLAW

LABORRELATIONS

Economic Exigencies Do NOT JustifyRefusal to BargainAn employer has been held not guilty of

refusal o bargainby adamantly ejecting heunion's economic demands where he isOPERATINGat a loss,on a low profitmargin,or in a depressed industry, as /ong as hemntinues to negotiate.But financialhardshipconstitutesno excusefor refusing o bargaincolleclively.

Ac{s NOT DeemedRefusal o Bargain1. Adoption of an adamant bargaining

position n good aith;

2. Refusal to bargain over demands forcommission f ULP;3. Refusal o bargainduringperiodof illegal

strike;4. There s no request or bargaining;5. Union seeks recognition for an

inappropriatelyargeunit;6. Union seeks to representsome persons

who are excluded rom he Code;7. The rank-and-file unit includes

supervisors;

8. The demand for recognition andbargaining is made within the yearfollowinga certificationelection n whichthe clearchoicewas "no union"and no adinterimsignificant hangehas taken placein the unit; and

9. The union makes unlaMul bargainingdemands'

Bargaining b the Point of Deadlock orlmpasse

1. Over a MANDATORYSUBJECT-

partymay insist on bargainingand will not beconstrued s bargainingn badfaith.

Reason: Duty o bargain equiresmeetingand convening on the terms andconditions of employment but does notrequire assent to the other part/sproposals.

2. OveT a NON-MANDATORYSUBJECT -party qay not insist on bargaining o the

: polnt of inipasse, othendse;'he will beconstrued s bargainingn badfaith.

Example: The employels insistence hatthe union shouJd change its negotiatorbefore bargaining can proceed to theemployees' wage and benefits is aninstanceof bad faith bargainingbecausethe composition f the negotiating anel snot a mandatory ubjectof bargaining.

Hence, if Party A insistson first setfling anon-mandatory ubject.beforetaclding a

mandatory ubject, Party B may complainthat Party A's posture s just an excuse oavoid bargaining on the mandatory,

essential subjects of bargaining; thus,Party B can charge that Party A isbargaining n bad faith or is evadingbargaining on terms and conditions ofemployment - in short, Party A iscommittingULP.

Note: What the rule forbids s the postureof making settlementof a non-mandatorysubjecta pre-conditionB he discussion rsettlement f a mandatory ubject.

Deadlock - synonymouswith impasse or astandstillwhich presupposes easonable ffortat good faith bargaining but despite nobleintentionsdoes not conclude an agreementbetween he parties.

/n case of a deadlock in the renegotiation 6the CBA, the pafties rnay exercise thefoltowing'1* Call upon the National Conciliationand

MediationBoard (NCMB)to intervene orthe purpose of conducting conciliationpreventivemediation;

2. Refer he matter or voluntaryarbitration rcompulsory rbitration;

3. Declare a strike or lockout uPoncompliance f the legalrequirements. hisis the remedyof last resort.

ART.253:DUTY TO BARGAINCOLLECTIVELY HENTHEREEXISTSA

COLLECTIVEBARGAININGAGREEMENT

GeneralRule: When here s an existingCBA'the dutyto bargaincollectively hall also meanthat neither pafi shall TERMINATE norMODIFYsuch agreementduring ts lifetime. tis the duty of

expl

orthe

partiesas



5sn ffiebs@ollege tT.do


What may be done during the 60dayfreedom period

1. A taborunion MAY DISAFFILIATE ROMTHE MOTHERUNION o form a local orindependentunion only during he 60-dayfreedomperiod mmediatelyprecedingheexpiration of the CBA (Take note of thelimitation - see dlscussionson registrationof labor unions.)

2. Either party can serye a writtennotice oTERMINATE OR MODIFY THEAGREEMENTat least 60 days prior o itsexpiration period. (on re-negotiable/non-representational as-ped of the CBA -

see drscussionon Art. 253.13. A PETITION FOR CERTIFICATION

ELECTIONmay be filed.

Absorption doctrine- Otherwise known asAccretion Doctrine', applies when there isabsorptionand integrationby one entityof oneor more establishments aving he same kindand line of business having their respectivecol ec'tiveba gaining agreementswith differentlabor unions existing herein.Example s when

one company s sold to another; n which case,the duty to bargainwhich originallydevolvesupon the selling pady is transJerred o thebuying ntity.

Successor.lnlnterest Doctrine - When anemployerwith an existing CBA is succeededby anotheremployer, he successor-in-interestwho is a buyer in good faith has no liabilig tothe employees n continuingemploymentandthe colledive bargainingagreement because

these contracts are in personam.

Except:1. When the successor-in-interestxpressly

assumes he obligation;2. The sale is a device to circumvent he

obligation;or3. The sale or transfer s made n bad aith.

Substitutionaryoccurs a shift

Doctrine - where therein the employees' nion

employeescap ehange heir agent (the laborunion) but the collective bargainingcontractwhich is.still subsisting continues o bind theemployees up to its expiration date. They may,however, bargain for the shortening of saidexpiration date.

The employees cannot revoke the validlyexecuted collective bargaining contract with

theirepployer

:bythe simple expedient of

changing their bargainingagent. The newagent must respect,the contract (Benguet

Consolidated, lnc. v, Employees' and Workers'

lJnion-PAFLtJ,No.L-24711,Apfl 30, 1968)'

Limitation as to its APPlicationIt cannot be invoked o support he contention

that a newly certified collective bargaining

agent automatically ssumesall the personal

undertakings f the formeragent- like he "no

strike clause" in the CBA executed by the

latter (lbid).

CBA Proposed by Union may be imposed

LOCK, STOCK AND BARREL on emPloYer

who refused o negotiatea CBA: Under this

situation,he employerwhich violates he dutyto bargaincollectively,oses its statutory ight

to negotiate or renegotiatethe terms and

conditions of the draft GBA:proposed by the

union.Hence, he proposalsof the unionmay

be adopted as the CBA and, consequently'

imposed on the employer, lock, stock and

barrel.

ART. 253.A: TERMS OF A COLLECTIVE

BARGAINING- AGREEMENT (CONTRACT

BAR RULE}

Duration of the CBA. With respect o the representation,aspect,

the same asts or 5 YEARS.

. With respect o otherprovisionseconomic

and non-economic),he same may last or

a maximumPeriodof 3 YEARS after the

executionof the CBA.

Note: While the partiesmay agree to extend

the CBA's original five-year erm despite.anagreement for a CBA with a life of more than

five years, the bargaining.union's -exclusiveoargiining status is effectiveonly for five years

and can be challengedwithin sixty (60) daVs

prior o the expiration f the CAng r-qt-Lvê

sA** sffi$e

1 .2.?

4.

5.



LABORLAW

LABOR ELATIONS

z.

Effectivity and Retroactivity of other

Economic Provisions of the CBA

1. lf CBA is the VERY FIRST for the

bargainingunit, he partieshave o decidethe CBAs effectivitYdate.

Those made within 6 monthsafter the date

of expiry of the CBA are subied to

automatic retroaction to the day

immediatelyollorving uch dateof exptry.

Example:CBA expired on December31.

New CBA concludedon March 31. The

effectivitydate is January1.

Those NOT MADE WITHIN 6 MONTHS,the parties may agree.on the date of

retroaction.

This rule applies ONLY if there is an

existing agreement. lf there is no existing

agreement, there is no retroactive effect

because he date agreedup6n shall be the

start of the period of agreement.

Note: Ar.tlcle 259A on retroac{ion does

not apply if the provisionswere imposedby the Secretary of Labor by virtue of

arbitration. t appliesonly if the agreementvubsvoluntarily made by the pafties.

ART.234: o INJUNCT|ONULE

GeneralRule: NO temporary r petmanent

injunction r restraining rder n, any case

iivoNingor growing utof labord/Sputeshall

be ssued yanycourtor otherentity'

Execption:As otherwise rovided.lll1ti"/:t-.+21.&..iPowersf the CommissionAllRC) nd

=264 FrohiOiteddivitles) f hisCode'

Rationde: lnjundion contradicts the

constitudonalr"ference or voluntarymodes

of disPute ettlement.

The following are authorized to issue

injunctFons r restraining orders-

1.' NLRC r anydivision'Art' 218)

2. President.n case of labor disputein

industrieswhich are indispensibleo

nationalnterest.Art-263)3. Secretary. n case of labor dispute ln

industriei which are indispensibleo

national interest, the Secretarymay

assumeurisdiction ver the disputeor

certify th-esame to the Commissionor

compulsory rbitration'Such assumption

or certificition shall have the effect of

automaticallynjoininghe intended. r

impendingtrike-f one'has lreadyaken

place,allkrikingor locked ut employeesshall mmediatelyeturn o work and he

employer shall immediatelyre-admit

emPloYeesndresume Perations'

holdingcertiftcationelection

particularlyhenon-representationaspect(ECONOMIC

PROVISIONS aYbe renegotiatedotlater than three

apec{ of theCBA shall befor a tenn of

toe (5). Apetition for

certificationeledion may beentertained anda cqrtificationelection may becondrrctedwithin the 60-day periodimmediatelyprior' to theerpiratbn of$. CBA,

The notice ofintention toterminate, amendor alter thepiovbions of theCBA shall be filed

within the 60-dryperiod, mmediatelyprior to theepiration of theCBA.The economicprovbions,however, may berenegotiated notlater han tkee (3)

:Ye.gfF-,,.ii ...Ihq:9tffilii{ij"'i :;,,."':provbions entered

within 6 monthsfrom the expiry oftheir term as fixedin the CBA shallretoact to the dqyimmedatelyfollolring rch date,if beyond6 monthsthe etrectidrtyb byagreemefr of the

Note: third

parties securea

*;



Sun Sebs@ollege Stetr2011CENTRALIZEDAROPERATIONS

August17, 1967).Seenofesunder Afts.26jand 264\.

ART. 255: EXCLUSIVEBARGATNTNGREPRESENTATIONAND WORKER'SPARTICIPATION IN POLICY ANDDECISION-MAKING

Extentof the Workers'Right to ParticipateIn Policyand Decision-Makingrocesses

Such right refersONLY to participationngrievance roceduresndvoluntarymodesof

settlingdisputes nd NOTto formulation fcorporaterogramsndpolicies.

Note: An employermay solicit questions,suggestionsnd complaintsrom employeeseven hough he employees re representedbya union, rovided:1. The collective argainingepresentative

executes n agreement aivinghe rightto be presenton any occasionwhenemployee rievancesre beingadjustedby he employefi

nd2. Employer cts$rictlywithin he termsofthiswaiveragreement.

One-Union, One-CompanyPolicy - theproliferationf unions n an employer nit sdiscourageds a matterof policyunless hereare compellingeasonswhichwoulddenyacertainclassof .employeesthe right o self-organization for purposes of collectivebargaining.

Exceptions:1. Supervisorymployees'whore allowed

to form theirown unions.apartrom the. rank-and-filemployees;nd2. The policyshouldyield to the right of

employeesoformunionsor purposesotc-ontraryo law, self-organizationnd toenter into collec.tive bargainingnegotiations.a. Twocompaniesannotbetreatednto

a singlebargaining nit even f theirbusinessesrerqlated.'-'6. "Su6idiaries or' ibrporations ormedout of formerdivisions f a motheicompany ollowinga reorganizationmay constitute separate argainingunit.

Labor Management ouncll dealswith heemployer n mattersaffecting he employee'srights,benefits ndwelfare.'

Purposes re to:1., Promote ainful mployment;2. lmproveworking onditigns;nd

3. Achieve increased productivity (R.4.6971).

ARTS. 256-259r PETITION FORCERTIFICATION LECTION

Bargaining Unit - a group of employeesof agiven employer,comprisedof all or less thanall the entire body of the employees,which,consistentwith equity o the employer,ndicate.to be best suited to serve the reciprocal rightsand duties of the partiesunder the collectivebargaining rovision f the pw.

BargainingUnit v. Union

Certification Year - refers to the period

wherein collectivebargaining should begin,

which is within 12 months following thedeterminationand certificationof employeesexclusivebargaining epresentative.

Four Factors in Determining theAppropriate Bargaining Unit (G-CHE) (Sfa,

Thevotersare heCBU,whetherunion r non-unionmembersArfs.255 and 256).

Thevotersare heCBU, otjusttheunionmembers(Aft.231\.

ooaffis${r,s&ffi&"irrbffiil&s$s {}F L'Av{



LABORLAW

LABORRELATIONS

4.

5.

6.

7.8.o

. beasonat;ano

. Probationaryemployee.

Things to Gonsider ln Determining theGommunity of InterestDoctrine1. Similarity n the scale and manner of

determiningarnings;2. Similarityn employment enefits,hoursof

work and other terms and conditions ofemployment;Similarity n the kindsof work performed;Similarity n the qualifications, kills andtrainingof the employees;Frequency of contract or interchange

among he employees;Commonsuoervision nd determination flabor-relationsolicy;Historyof previous ollective argaining;Desires of the affec'ted mployees;andExtentof unionorganization.

Methods to DetermineBargaining UnitA. Certification Election - the process of

determiningby secret ballot he sole andexclusive bargaining agent of the

employees n an appropriatebargainingunit, for purposesof collectivebargaining(employeesn the 3 payrollperiod prior othe certification lectionmay vote).

Certification Election Not Necessarywhen:1. Employer voluntarily recognizes the

saidunion;and2. Employees esignate he unionas the

bargai ing representative.

NatureA certification election is NOT ALITIGATION ut merelyan investigation fa non-adversarial act-finding character inwhich he Bureauof LaborRelationsplaysthe part of a disinterested investigatorseeking merely to ascertain he desires ofthe employeesas to the matter of theirrepresentation. Airline P/ofs Assn. of fhePhilippinesv. ClR, 76 SCRA274)

":' aAiliialTor Dismissalor he pefitionfor Certifr ationElectionD.O.40-03)1. Petitioner s not tisted in the

. depaftment's registry of legitimatelabor unions. or that its legalpersonality has been revoked orcancelledwith fi nality.

2. Petition was liled before or after thefreedom period of a duly registeredCBA; providedthat the 60-day period

. based on the originalCBA shall NOTbe affected by any amendment,extension,or renewalof the CBA.

3. Petition was filed within 1 Yearentry of voluntary recognition or 'a

valid certification, onsent, or run-off

electionand no appealon the results

thereof s pending.

A duly certifiedunionhascommencedand sustained negotiationswith the

employeror there existsa bargaining

deadlockwhich had beensubmitted o

conciliation or arbitration or had

become he subjectof a validnoticeof

strike or lockout to which an

incumbent or certi[fed bargaining

agent s a party

In caseof an organized stablishment,failure to submit the 25% suqqort

requiremeit lor the filing of the petition

for certification lection.

Consent Election - voluntarily agreed

upon by the parties with or without the

inter,'ention f DOLE

Note: Cedifcation election and consentglectio4 are separate and distinct from

each other.

El

Certification v. Consent Election

bythe

To determinehe issueofmajorityepresentationfall the workers in theappropriate collectivebargainingnitmainlYorthe purpose ofdetermining the

adminbtrator f the CBAwhen the contractingunion suffered massivedbaffiliationbut not forthe purpose ofdetermining thebargaining agent for

of collective

To determine. he sole

and exclusive bargainingagent of all the

employees in anappropriate bargainingunit for the purpose of

collectivebargaining.



5sx DeUs@ollege f [.eb


Summaryof the Procedure n VoluntaryRecognition D.O.4U03)1. When and Where o file: 30 days rom

such ecognition,mployerndunion hallsubmit'a noticeof voluntary ecognitionwith he RegionalOfficewhich ssuedherecognized abor union's certificateofregistration r certificateof creationof acharteredocal.

2. Requirements:Original nd 2 duplicatecopies f:a. Joint statement under oath of

voluntaryecognition;b. Certificate f posting f ointstatement

for 15 consecutiveays n at least2conspicuous places in the" establishmentf thebargainingni{.

c. Approximateumber f employeesnthe bargaining nit and he namesofthosewho supportedhe recognition;and

d. Statementhat the laborunion s theonly legitimate labor organizationoperating ithinhebargainingnit.

All accompanyingocumentsf the notice

for voluntaryecognitionhallbe certifiedunder athby he employerepresentativeand presidentof the recognizedabor'union.

3. Action on the notice by the RegionalOffice, through the Labor RelationsDivision, ithirr 0days rom ecei$of henoticeof voluntaryecognition.f there sinsufficiency f requirements,t must becomplied ithwithin10 days rom notice,otherwise, t shall be disrnissedwithoutprejudiceo its re-submission.

4. Effect bars the filing of a petition orcertification election by any labororganizationor a periodof 1 yearfromdateof entryof voluntary ecognition.

Effect oJ Voluntary Recognition by theEmployerThrough voluntary recognition by theemployer,he labororganizations recognizedby the employer s the exclusive argaining



LABORLAW

LABORRELATIONS

Distinctions

Purpose s to determinehe sole andexclusivebargainingagent of all theemployeesn anappropriateargainingunit for the purpose of collectivebargaining

Requires a petition for certificationelectioniledby a unionor employer.Med-Arbiter rants he petitionand anelection officer is designatedby theRegionalDirector to wpervbe theelection

Note: Me&Arbiter may determine fthere s employer-employeeelationshipand f hevoters reeligible.

sufferedmassive isaffiliationndNOTfor the purpose of determining hebargaining agent for purposes ofcollective argaining

Purpose s to determinehe issueofmajority represertation of all theworkep in the appropriatecollectivebargaining nit mainly or the purposeof deterqininghe adminbtrator fCBA when the contracting union

Heldby agreementf theunions ithorwithout the participation f the Med-Arbiter

Takes place between the unions whoreceived the two highest number ofvotes h a certification electiorr withthree (3) or more choices, where notone of the unions obtainedthe majorityof the validvotes ca$, provided hat thetotal union votes is at least 50% of thevotes c6t

Takesplacentwo nstances:if onechoice eceives plurality f voteand he remaininghoicesesuhsn atie:orif allchoices eceivedhe samenumberof votes.In both instances,he NO UNION salsoa cfioice.

. yponttetitinffinbor organizationncludinga nationaluiion orfederationwhich hc atreaOyssued a

"f,"rt",erti-ficateo ils localchaptei participaing n-hecertifrcation lectionor a iocalcfraptbr Fi"t n""begn egged a charter cefiificate6v ne national: unionor feder?fori,que$io'ning:trenajority

statusoTne Incumbent argaining gentwithin he 6Gory reedom period eforeheexpiration f a CBA.

r The petl$on must be supported by the wrifienoonsentof at east25olo fall heemployeesn heappropriateargainin nit.

r Theemployer annot ile a petition or certification

:lil o",; onty a tesitimatbhbor organ-aiion,nationalunion or federdion which hal alreadybsugd a charter,certifpate o lts tocai

"t"ot",articipatingn the certifrcationlectionol. ii""fghaptervhichhas been ssueda charter ertiticateby .thenationalunionor federation an file such applicable n this

whenres o

b y aed to; and



Fsn Getre@ollrgeot &


iffi=u6Fart;wever to the

ftle a petitionorcertificationlectionwithin he60

day reedom eriod CONIRIACT-BARUIE)2. \Nhen therd ls no CBA, then the labor

organization an file a petition or -cef{9{taoneljction at any time,subjecto the DEADLOCK

Requisites before a LSor Union can be

Declareda Winner @ouble Majority RuleJ

1. Majority of the eligible voters cast their

votes:AND2. Majorityof the valid votescast is for such

union.

How to Detefmine the Double Majority Rule

1. In determininghe eligible otescast (Firsf

Majortty), nclude spoiledballots.

2. In determining valid votes (Second

Majority), eliminate spoiled ballots but

includechallenged otes.

Run-Off ElectionA run-off election is proper if the following

conditionsexist,namely:

1. Valid Election ook place becausemajorityof the CollectiveBargainingUnit members

voted fFlrst Maiortty]2. The said electionpresentedat least fhree

choices (e.9., Union One, Union Two, and

No Union);

Note: "No Union' shall not be a choice n

the run-offeledion

3. Not one of the choices obtained the

majority (50%+1-sectnd majority)'of thevalid votes cast;4. The tofal votes for the unions is af /east

SP/ool the votes cast,5. There is no unresolved challenged votes

or election protest which if sustained can

materially lter he results;and

6. The two choices which garnered the

highest vates will be voted and the one

which garners he highestnumberof votes

will be declared he winn.erprovided hey'get the;iirejodty voteslof ,the ,total votes

cast.

Who Participates in the Run-Off Election:

The unions receiving-he highestand second

highestnumber of votes cas{.

ART.258.A: EMPLOYER AS BYSTANDER(New,Provisioh nserted by R.A. 94811

In all cases, whether the petition for

certificationeledion is filed by an employer or

a legitimate abor organization,he employer

BqKotldwyrlt.+ 6;1i.a.W iqa'rrwrn̂k,

shattnotbe considereda party thereto.with-a

concomitant right to oppose a peutton tor

certificati n eledi on.

The employer's participdtion in such

proceedings hall be limited o:

i. e"i"g"n"tified or informedof petitionsofsuch nature;and

2. Submittinghe list of employees uring.the

ore-electionconferenceshould the Meo-

Arbiter ac{favorablyon the petition'

Rules Which Prevent the Holding of a

Certification E ec'tion'

Contract - BarRulewnifu

"

v€lid and registered CBA of a fixed.

Ort"tion is subsisting,he BLR is not allowedto hold an election contesting the majority

"i"tu.ot the incumbentunion during the ftve

year erm of the CBAexceptduring he9041Y.

period immediatelyprior to the expirationof

the CBA.

Requirements in order to invoke Contract-

Bar Rule:1. Agreement is in witing and signed by all

contractingParties;

2. lt musl co-ntainhe terms and conditionsol

employment;CovereOemployees n an appropriate

bargainingunit;It is fora reasonableerid orduratlon;4.

5.o-

lt mustberatified',It must and

election n

LL#{}S S$.$ ...41tu



LABOR AW

LABORRELATIONS

1 . The CBA is unregistered,.e. not certifiedby the BLR or not registered by theRegionalOffice.

The CBA is nadequdeor incomplete,.e.,it does not contain all the substantialdemands on terms and conditions andleaves out matters which should havebeen stipulated, where the stipulationbecomesa sweetheartcontract.DOCTRINE OF PREMATUREEXTENSION - the CBA was hastilyentered nto, .e., he renewalor extensionof the agreement was premature,frustrating he right of the employees o

petition for a certification lectionat theproper ime.Withdrawal of affiliation from thecontracting nionbroughtabout by schismor massdisaffiliation.Contract where the identity of therepresentative s in doubt (ALU v. Ferrer-Callela, GR No. 8fi85. November 6,198e)CBA entered into.between he employerand the union during the pendencyforcertification election (Vassar lndustiesEmployees Union v. E*rella, GR No.46562,March 31, 1978\CBA concludedbetween he employer ndthe union incumbent argaining gent) snot a bar to a certification lection iled byanother union and said CBA can berenegotiatedat the option of the newbargainingagent (AfU v. Hon. Noriel,No.L- 48367,January 16, 1979\.

A CBA registeredwith falsifiedsupportingdocuments (Sec. {bJ, RuteXVt, Book V,Rules lmplementing the Labor Code\.CBA was concluded in violation of anorder enjoining he partiesfrom enteringintoa CBA until he issueof representationis resolved:and

10.Petitions filedduringhe 60dayfreedomperiod.

DeadlockBarRule

A petitionor certificationlection annotbeentertainedf,.before,the.filingf the petitionfor certificationlection, bargdiningeadlockto whichan incum6entr certified argainingagent s a party,had.beensubmittedoconciliationr arbitrationr had becomehesubjectof a validnoticeofstrikeor ockout.

Deadlock ,ariseswhen here s an impasse,whichpresupposeseasonable ffortai gooOfaith bargaining which, despite nobleintentions,didnot concluden an agreementbetweenhe parties.

Indications of a Genuine Deadlock1. The submission f the deadlocko a third

partyconciliator r arbitrato[ and

2. The deadlock is the subject of a validnoticeof strikeor lockout.

Negotiation Bar RuleA oetition or certification lection cannot beentertained f, before he filing of the petition

for certification lection, he duly recognized rcertified union has commenced negotiationswith the employer n accordancewith Art. 250of the Labor Code. &i

CertificationYear RuleNo petition or certificationelection may befiled within one year from the date of a validcertirrcation, con$entibi run-off election orfrom he dateof voluntary ecognition.

Examplesof Bad Faith Bargaining1. Surface Bargaining - occurs when

employerconstantly hanges ts positions

over he agreement.2. Boulwarism - bccurs:

a. When the employerdirectly bargainswith the employee disregarding heunion.

b. The aim was to deal with the unionthrough the employees, rather thanwith he employeeshrough he union.

c. Employer submits its proposalsandadopts a 'take it or leave it" stand.This is not negotiation because thetake it or leave tf" stand implies

threat.

TITLE SEVEN.A.GRIEVANCEMACHINERYAND VOLUNTARYARBITRATION Asfncorporated by R.A. 671q

ART. 260: GRIEVANCE MACHINERYAND

4.

Nature of



$en &ele @ollegefAsb


agreement an be registered n the absenceofsuchprocedure.

It is a part of the continuous process ofcollective bargaining ntended to promote afriendly dialogue between labor andmanagement as a means of maintainingindustrialpeace.

Note: Waiver of grievance machineryprocedure does not amount to arelinquishment f employee's ight to avail ofvoluntaryarbitration Apalisokv. RPN,May29,2003).

Voluntary Arbitration contractualproceedingsherepartieso a disputeSelecta judgeof their own choiceand by consentsubmit their controversv to him fordetermination.

Note: All grievancesot settledwithin7 daysfrom the date of its submission o thegrievancemachinery hall automaticallyereferredo voluntary rbitrationrescribedn

theCBA.Althoughhe provisionmentionspartiesto acollective argaining greement,"t doesnotmean hat a grievancemachinery annotbeset up in a CBA-less nterprise.n any workplacewheregrievancean arise,a grievancemachinery regaldlessof name) can beestablished.

ln a unionized ompany,Att. 255 allowsan

employee hetherunion member r not, toraise grievanceirectlyo theemployer.

Arbitration maybe initiated by:1. Submissiongreementwhere heparties

definehe disputeso be resolved,r2. Demandor Notice nvoking collective

agreerlentarbitrationlause.

Distinguished rom MediationA mediator s a disinterested 'o party whohelps.. ettle disputes nvolving erms andconditionsf.a OBA;lHe iBessignedand paidby he Stateand s not selected y he parties.He renders o final and binding ecision, utmerely uggestsolutions.

Effect of Mergerand Gonsolidation:

WileyDoctrineIt states hat, a duty o arbitrate rising rom acollectivebargaining_greement urvives heemployeis ceasing to do business as a

separate entity Bfter its merger with asub$antially arge corporation, o as to be

bindingon the larger corporation,whererelevant imilaityandcontinuity f operations

across he changen ownerships evidenced

by the wholesale transfer of smallercorporation'semployees to the larger'corporation's

Plant.

ART.261:JURISDICTIONFVOLUNTARYARBITRATORS OR PANEL OFVOLUNTARYRBITRATORS

ArbitrableDisputes1. Contract-negotiationisgutesdisputess

to termsof CBA.

2. Contract-interpretationisputes disputesarisingunderan existingCBA' involvingsuch mattersas the interpretationndapplication f the contract,or allegedviolationf tsProvisions.

Jurisdiction f VoluntaryArbitrators

1. All grievances arising from*

interpretationor implementationCBA:2. Thosearising rom the interpretationr

enforcement of company Personnelpolicies;

3. Hearand decidewage distortionssuesarising rom he application f anywageordersn organizedstablishments;nd

4. Unresolved rievances rising rom theinterpretationnd irndementationf theproductivityncentiverogramsnderR.A.

6071.Note: lt is the Labor Arbiterand not thegrievancemachinerywhich has jurisdiction

overdismissalsursuanto the union ecurityc|ause.

ExclusiveOriginalby Law

Jurisdiction Conferred

the

of the



LABORLAW

LABORRELATIONS

A personaccredited bythe Board assuch or aperson namedor designated,inthe CBA by theparties o act astheir VoluntaryArbitrator r oneciosen with or

without theassistarice ofthe NCMB,pursuant to aselectionprocedureagreedupon nthe CBA,or anyofficialauthorized bythe Sec. ofLabor o acl c

VoluntaryArbkator uponwritten requestand agreementof parties to alabordispute.

A disinterestedparty,usuallyagovernmentemployee whohelps n settlingdisputes-involving termsand conditionsof a CBA and sNOT selectedby the parties,

but is usuallyassigned andpaid by theState.

Regularourb.

lnformalproceedings;Arbitratordetermineswhat b

admissibleevidence.

A mediatorrendercno finaland bindingdecision andmerely

suggestssolutions. Heusuallysuggests thatparties submilthe issueto anarbikator.

Formalproceedings,Rules of Cciurtand the Ruleson Evidence

apply.

Arbitrators arenot obliged tofollowprecedents set

by otherarbkations insimilar ases.

Judges arerequired toobserve s{aredecr'sis.

appdiit6'trtffiCA under Rule43 of the Rulesof Court.

Appeal is to ahigher. courtunder he Rulesof Court andB.P. 29.

Distinctions monga VoluntaryArbitrator,Mediator. and a Court of Law

JudicialReview

Grounds:(JADES)'1. Lackof urisdidion;2. Graveabuseof discretion;

4. Erroneousnterpretation f the law;and

5. Denialof substantialustice. ,

CertiorariApplicableA voluntary arbitrator is a "quasi-judicial'

instrumentalitySec.9, B.P. 129,as amended

by R.A. 7902). lts decisions are therefore

appealableo CA under Rule43 of the Rules

of Coutt.Hence,a petition or certiorariunder

Rule 65 of the Rules of Court will lie ONLY

where a grave abuse of discretionor an act

without or in excess of jurisdiction of the

voluntary arbitrator s shown, which may be

filedwith he Courtof Appeals.q

TITLE EIGHT. STRIKES AND LOCKOUTS

AND FOREIGN NVOLVEMENT N TRADE

UNIONACTIVITIES,.,.

CHAPTER . STRIKESAND LOCKOUTS

ART.'263: STRIKES, PICKETING AMLOCKOUTS

Concerted Activi{-

one undertakenby twoor moft employeesor by one on behalfof the

others.

Strike - any temporarystoppageof work by

the concertedaction of employees as a resu/f

of an industrial or labor disPute.

kbor dispute - includesany controversyor

matter concerning terms or conditions of

employment or the association or

representation of persons in negotiations,flxing,maintaining, hangingor arranging he

terms and conditions of employment,

regardless of whether or not the disptrtants

$and in the proximaterelationof empoyers

and employees (Gold City lntqrated Port

Service, nc. v. NLRC,245 SCRA627).



5ff EeUs @ollegeof :[.sb


Law mayprohibitstrike but not the right toself-organization. A law may be passedprohibitingselectedsectors of labor from

resortingo strikes.However, law cannotbepassedprohibitingelected ectorsof laborfromorganizingnions.

Lockout- meanshe emporaryefusal f anemployero furnishwork as a resultof anindustrial r abor ispute.

Note: Strikeand lockoutare similar n thesense hat they connote emporary toppageof work.Thedifferences that stnke sdoneby

employeesor laborunion whileockout s doneby the employer.

Boycott - an attempt,by arousinga fear ofloss, to coerceothers,against heir will towithholdrom onedenominatedunfriendlyolabor"heirbeneficia usinessntercourse.

Slowdown - a method by which one'semployees,without seeking a completestoppage of wor( retard productionand

distributionn an effort o compel omplianceby he employer ith he abor emandsmadeuponhim. -

vl4drw l ioorporwr-rro-$41lftiad

Picketing- act of marchingo and fro theemployer's remises,usuallyccompaniedythe display f placardsndother ignsmakingknown he facts nvolvedn a labordisoute.This is an exerciseof

'one'sfreedomof

speech.

. Article2M(e) ot the LaborCodeprohibitsany person engaged in picketingfromobstructinghe free ngresso and egressfrom the employer'spremises(Jackbiltlndustries,nc. Vs. Jackbilt EmployeesWorkers Union-Naflu-KMU, G.R. No.

. 17161&19, arch 3,2@9.)

Note:Thepicketing f a privatehome n aresidential district is generally heldimproper,even when the picketers redomestic ervants. his s on

theqrounds

' 1,:."atfa,'honleiis nlt'an iriaustri-al,orbusiness nterprise,hat it is not acquiredor maintainedor pecuniaryainor profit,but rather, hat t is an institution sedandmaintaineds a placeof abode,and hatan enterprise ot conducted s meansoflivqlihood,or for profit, does not comewithin he ordinarymeaning f such ermsas business

'trade',or'industry'.Stafe .Cooper,205 Mlnn. 333, 285 N.W. 903,122A.LR.77)

Moreover, he right to peaceful picketing

shouldbe exercise{ by the workerswith

due respect or the rightsof others.Hence,

commission y any picketingemployeeofany act of violence, coercion or

intimidation is prohibited. Similarly'

stationary icketand he use of means ike

placingof objects o constitutepermanent

btocka?e or to effectively close points of

entry or exit in company premises are

likewisenot allowedbY aw

Strike-Breaker- any pefson who obstrucis,

impedes or interfered 6y force, violence,

coercion. threats or intimidation with anypeaceful picketingby employeesduring any

labor controversyaffecting wages, hour or

conditionsof work or in the exercise of the

right to self-organization or collective

bargaining.

Strike Area - the establishment,warehouse,

depots,plantsor offices, ncluding he sitesor

premises used as runaway shops of the

*employer $ruck against, as well as the

lmmeOiate vicinityactuallyused by picketingstrikers n moving o and ro beforeall pointsof

entranceo and exit romsaid establishment.t

also includes he area immediatelybefore he

points of entranceand exit of establishment

struck against.However, he ingressto and

egress from the establishment truck against

aie not part of the strike are, and may not be

blockednor picketed.

Types of Strikes

1. Economic strikes-

used tosecure the

economicdemandssuch as higherwages

and better working conditions for the

workers. t futland n fu kalts t funcUo-ul.rnruya*,t

2. ULP strike - protest against ULP of

management.

ms of

I no rl . 'J thY1

V(. flr,,{ill,a.ri?rhrl

> wf o.r,l,tl,rr

l&t"frs,&lrt

thatnot



LABOR AW

LABOR ELATIONS

lllegal: Fails to complywith certainrequirementsf the law, o wit noticeofstrike, ote,and eport n strike ote.

3. Sympathetic trikes workstoppagestworkers fonecompanyo make omrnoncause with other strikers of othercompanies, without demands orgrievancesof their c^/n against theemployer.

lllega :Becausehere s no abor isputebetweenhe workerswho are oining hestrikers nd he atte/semployei.O otwnn ol c'te -c'arru,f

4. Primary Strike - refers to a strikeconducted y the workersagainst heiremployers involvinga labor disputedirecfly ffectinghem.

Legal: Becausehere s a labordisouteinvolved.

5. SecondaryStrikes- areworkstoppagesof workers of one company to eiertpressure n their employer

o that thelatterwill in turnbringpressure pon heemployer f another ompany ithwhomanothernion asa labor isoute.

lllegal:becausehere s no labordisputeinvolved. strikecan validly afe jtaceonly nthepresencef and n relationo alabor dispute between employerandemployee.

6. Cause OrientedStrikes

-to make astandoncertain ationalssues.r,o;cieJ1p6g;

.1:lg:.ng..t"yan" lilegat:A,,Wetga gb3lan" is iilegatbecauset is a pJtiticalstrike and thereforehere is n"itn"i-

"arg.ainingeadlock or any ULp. t is apoliticalally.

7. QuickieStrikes briefandunannouncedtemporary orkstoppage.,

a.lr.a. ti4ht' in4 t$kg-il , ':,1',3i 4qryt,dJrrdiiinaf ...: .1 .

Thecolleciive argaininagentof the appropriag,bargaining unit candeclare an economicstike.

Either:l- Collectivebargaining

agent;or2. The legitimateabor

organizationn behatfof its members.

ngoris

Er-Eeand he

Economic v. Political Strike

A voluntary strikebecause the employeewill declare a strike tocompet managementtogrant its demands.

An involuntaryslrike; thelabor organization isforced to go on strikebecause of the ULPcommited against themby the employer. lt is anact of self-defensesincethe einployees are beingpushed to the wall andtheirnonly remedy is tostage a stike.

30daysftom he ilingofthf notice

of strikebefore he intended ateof actual trikesubjectothe7-daystrikeban.

15 daysfrom he ilingof

the notice of strikesubject to the 7-daystrike an.

No exceptionmandatory.

Cooling-off eriod maybe dispensedwith, andthe union may takeimmediate ction n caseof dismissal from

employment of theirofficers duly elected inaccordance with theunion'sconstiMionandbyJars, whlch mayconstltute unlonbusting where the

person/s strike s called;



Ssn Sele @olle[e f{.sb

2011CENTRALIZEDAROPERAfIOT.TS

2. The exlsfence of a disptle between thepartiesand the utilizationby labor of theweapon of concerted efusal o work as a

means of persuading or coercingcompliance with the working men'sdemands:

3. The contentionadvaneedby the workersthat afthbugh the work ceaseq theemployment relation ls deemed tocontinue albeit in a state of belligerentsuspension;

4. There s work stoppage,whichstoppage stemporary;

5. The work stoppage is done through the

concerted action of the empoyees, and6- fhe striKng group is a legitimate labor

organization,and in case of bargaining'.'.:.i :deadlock, is the employees' sole

barga ning representative.

Non-Strikeable lssues (NlLAW)(Article 263 1b); Dept. Order no. 9, Rule 12,Sec.2)1. Violationsof CBA which are aot gross in

character shall be resolved via the

GrievanceMachinery;2. lnter-unionor lntra-uniondisputes;3. Labor standards cases such as wage

orders (Guidelines governing LaborRelations [19 Oct. 1987] issued by Sec.Drilon;see also Article261, LC);

4. Those issues which had already beenbrought to . voluntary or compulsory

3rloitration.5. lssues nvolvinggage distortion ausedby

legislatedwage orders.

Procedural Requisites (GF-SARC-7)1. lt must be based on vatid and factual

ground; a strike or lockout must be basedon eithera. Collective Bargaining Deadlock

(economic)b. UnfairLaborPractice political)

l, iyrttrr&t r,tnirn Yuytin0

Purposes: {a) to inform the NCMB of the

intentof the union to conducta strikevote;

(b) give he NCMBample ime to decideon

whetheror not there is a needto supervisethe conductof the strikevote to preventany

acts of violence or irregularities ttendant

thereto; and (c) should the NCMB decide,

motu proprio or upon the request of any

interestedparty including he employer, o

supervise he strike vote, to give it ample

time to prepare or the deploymentof the

requisitepersonnel,ncludi g peaceof icers

4. A strike vote must # t"r"n where a

majorityvote of the membersof the unionmust Spprove t, obtained'bysecret ballot

in a meetingdulycalled or the purpose;or

a lockout vote must be taken where a

majorityvote of the members of the Board

of Diredorsof a corporation r association

.orpartners n a partnership,must approve

it, obtainedby secret ballot in a meeting

duly called or the PurPose;5. A strike or lockout vote leport should be

- submittecf o the NCM-DOLE at least

seven davs before the intendeddate ofstrike or lockout * du. trrwl+pralrsvrakot

i/ninor'rh M/irdPurpose: The evident ntentionof the law

in requiringhe strikeor lockoutvote report

as mandatory requirements is to

reasonably egulate he right to strike or

lockout, which is essential to the

attainmentof legitimatepolicy objectives

embodied n the law.

6. Except in cases of union busting' thegooling off periodprescribedby law should

be fully observed7. The 4ay waiting period or strike ban i ttYl

after submissionof strike or lockoutvote to lvtithe NCMB-DOLE houldbe fully observed I f.in ALL

2.

Inr,nlrVtI

rrh ndtf

rrk t{.i'}.1,

A noticeof strikeor lockor.rt ustbe filedwithNCMB-DOLE;rrgicyrflJcMs)

?.At

Jq,st3Q daysr rom tlle intended

' 'date'thereof, if the ;issues nvolvedarose from a collectivebargaining

At least 15 days from the intendeddate, if the..issues raised are in thenatureof unfair labor practices.

rdrnlr.rn deadlock.

,g.nq Wrr .

I

oi{lF

, rh(r{,3. A notice must be gerved to the NCMB-;i'rrdl DOLE at least 24 hours prior to the taking

of stfike or lockoutvote by secret balloting,informing said office of the decision to

conduct a strike or lockout vote, and the, date, placeand timethereof;

b l,{ -w*r fkr[-tt[TnC6 lrl,,f

strike s a



LABORLAW

LABORRELATIONS

Labor Code - the constitutionalpreceptsof due process mandate that the otherparty be notified of the adverse action of

the opposinS party (Filipino Pipe andFoundry Corporationv. NLRC, 3tB SCRA6q.

b. Coolingoff Period before theintendeddateof actualstrikesubjectto the 7{ay strikeban.

a. Bargaining eadlock 30 daysb. ULP 15daysc. Union Busting - cooling-off

period NEED NOT BE

OBSERVED and the unionmay take action immediatelyafter the strike vote isconducted and resultssubmittedo regionalbranch

It is that period of time given theNCMB to mediate and conciliate heparties. lt is that span of time allottedby law for the parties to setfle theirdisputes n a peacefulmanner,before

staging a strike or lockout. lt isreckoned from the time when thenoticeof strikeor lockotrt s filed Wththe NCMB, a copy of said noticehaving been served on the other partyconcemed. Otherwise, he mere filingof the noticewith the NCMBwithout aproof of vatid service thereof to theother party concernedwill not triggerthe runningof the cooling-off eriod.

c. Strike Vote - a requirementwhereinthe decision o declare a strike mustbe:i. Approvedby a MAJORTTY f the

TOTAL UNIONMEMBERSHTPnthe bargaining nit concerned notof the whole bargaining nit);and

ii. Obtainedby SECRETBALLOT nMEETINGS OR REFERENDAcalled or the purpose.

Purpgse: to ensure-that he intendedstrike 16a majoritydebsion.

d. 7-Day Strike Ban - the 74ay waitingperiod before he date of the purportedstrike withinwhich he union ntendingto conduct a strike must at leastsubmit a report to the Department asto the result of the strike voteiintended to give the DepartmentanopportunityTO VERTFYwhether theprojected strike really carries theimprimaturof the majorityof the union

members n addition o the cooling-offperiodbeforeactualstrike. l

Should the strike vote be takenwithin or outside the coolingoffperiod?The law does not specify but NCME'sPrimer on Stike, Picketingand Lockoutstates that if the strike vote is filedWthin the cooling-offperiod, he 7-dayrequirement "SHALL BE COUNTEDFROM THE DAY FOLLOWINGTHEEXPTRATTONF THE .COOLING-OFFPERIOD." In effect, the 7 daYs are

added o the 15 or 30 days.

Note: The7-daywaitingperiodor strikeban applies n€H:cilses,ncludingunionbusting. What the law comPletelYdisregards in cases involving unionbusting s only he cooling-off eriod.

3. Means EmployedTest - a strike ma'y belegal at its inception but eventually be

leclared itlegal if the strike is

accompanied by violence which iswidespread, pervasive and adopted as amatter of policy and not merely violencewhich is sporadicwhich normallyoccur in

a strike area. (See prohibited activities

under Art. 264.\

Note: The 3 tests must concur. Non-compliancewith any of the aforementionedrequisites enders he strike llegal.

Good Faith Strike Doctrine - a strike may beconsidered egalwhere he unionbelieved hat

the company committed ULP and the

circumstanceswarranted such belief in good

faith, althoughsubsequently uch allegationsof ULP are found out as not true (Bacus v.

Ople, GR N.9



Fan Fele 6otlegeof I^010


t)

8.o

5. Declared in violation of an existinginjundion;As a general rule, injunction

cannot beissued against the conduct of picketingexcept:a. Where picketing s carriedout through

illegalmeans,b. Where picketing nvolves he use of

violenceand other llegalactsc. Where injunctionbecomes necessary

to protectthe rights of third parties.Likewisenjunction annotbe issued

Note: Strikes or lockouts cannot beenjoined except when illegal acts arecommitted or if the strike or lockoutappears o be illegal n nature.

: - : r - r i i r ' : : i r '

Strike n" violation of assumptionorcertificationrder.Gontraryo an existing greement,uchas a no strike clause or conclusivearbitrationlause.

Note:The right o strike s notabsolute.thasheretoforeeenheld hata no-strike,no-lockout rovisionn the CBA s a validstipulation tthoughhe clausemay beinvoked y an employer nlywhen hestrike s economicn nature r onewhichis conducted o force wage or otherconcessionsrom the employerhat arenot mandated.to e grantedby the lawitself butnotULPcases).

Strike taged ya minority nion.Strikestagedby a unionwhich is notlegitimate

10. PrematureStrike-Astrike is illegal ifstaged without giving the employerreasonableime o considerndacton hedemandsmadeby the union Almeda s.ctR,96 Phit306) l

ConversionDoctrine Involvesonversionfstrike romeconomico ULP,andviceversa.

A strikeor lockoutmaystartas an economicstrikeor lockoutbut ateron, because f theadtuation,:of\he'parties,he sameimay biconvertedo an unfair abor practice ULp)strikeor lockout,or vice versa.Under hissituation,heconversionoctrinehallapplynwhichcase he requirementsor theconvert€dstrikellockoutto economicromULp,or viceversa,as the casemaybe) hallbe observed.(See Conso/idated-abor Associa&bnof thePhils.Vs.Marsmanand Co., 11 SCRA589,

5e3)

When can the Secretary of Labor Assume

Jurisdiction over a Strike ( Rj$ vl0iiru n4n()

When there existsa labor disputecausingor

likely o causea strikeor lockout n an industryindisoensable o the national interest. Thepower of assumption of jurisdiction or

certification y the Secretaryof Labor s in the

natureof a policepowermeasure.

The secretary of Labormay either: / [l'6';*1. Assumeurisdiction nddecide t, or2. Certify the same to the NLRC for

compulsory rbitration. *

Note: A labordisputemay be assumedby the

Secretaryor certified o the NLRCeven beforethe actualstagingof a strikeor a lockoutsinceArticle 263of the Labor Codedoes not requirethe existenceof the strike but only of a labor

dispute nvolving ational nterest.

Note: What constitutes "INDISPENSABLEINDUSTRY' s based upon the discretionof

the Secretary of Labor. However, the

Prgsident of the Philippines shall not beprecl ded'fromdetermi ing industrieswh ch in

his opinion are indispensableo the national

interest.

Effects of the Assumption of Jurisdictionof the Secretary1. AUTOMATICALLYNJOINS hc iNtCNdCd

or impending trikeor lockoutas specifiedf

in the assumlptionr certification rber;

2. lf one has already aken placeat the time

of assumption r certification, ll strikingorlocked-out employees shall

IMMEDIATELY ETURNTO WORK;ANd3.. The employer shall immediatelyresume

operations and RE-ADMIT ALL

WORKERS under the same terms andconditionsprevailingbefore the strike or

{F-Kffi#qSFr+uon



LABOR AW

LABORRELATIONS

3. Secretaryf Labormaysubsume endinglaborcasesbeforeLaborArbiterswhichare involvedn the disputeand decideeven issues allingunder he exclusiveand originalurisdictionf LaborArbiterssuch as the declaration f legalityorillegalityof strike lnt'tpharmaceuticalsv.Sec.of Labor,GR No.92981-8, January9, 19921.

4. Power fSecretaryfLabors plenary nddiscretionarySf.Luke'sMedicalCenter .Torres,GRNo.99395, une29,1993\.

Entitlemento StrikeDuration ay

GeneralRule:Strikers renotentifledo theirwagesduringhe period f a strike,EVEN FTHESTRIKESLEGAL.

Reason:Nowor( nopay,ora fairday'swagefora fairday's abor

Remedy:A workerwhoabsents imselfromwork as a result of a strike, must seekreimbursement f his wagesfrom his union

whichdeclaredhe strike,OR he mighthavehis absence rom workchargedagainsthisunused acationeaves

Exceptions:1. Incaseof a ULPSTRIKE,nthediscretion

of the authority ecidinghe case (Seetable for more distinction betweenEconomic ndULpsfnke.)

2. Where he strikersVOLUNTARTLYNDUNCONDITIONALLYOFFERED TORETURNTO WORK,but the emptoyerrefused o accept he offer (e.g "we wittreturn tonono$' and NAT "witting toreturn provided\.

Note Theyareentifledo baclorrragedromthedate he offerwasmade.

3. Where there is RETURN-TO-WORKORDER and the employees aredisciminatedagainst.

Fff""t They are entifled to backwagesfroni hedatdofdiscrimination.

4. Whereheemployeesidnotparticipatenthe strikebut were practicallyoc(ed_outby heemployer.

5. When einstatementsno onger ossible.

Ruleon Reinstatement f StrikingWorkers

9*fl"tRule:Striking

mptoyeeslre ntifledto reinstatement,egardless f whetheror notthe strike was the consequericeof theemploye/sULP.

Reason: Because while out on strike. thestrikersare not consideredo have abandonedtheiremployment, ut ratherhave onlyceasedfrom heir abor.

The declarationcrfa strike is nof a renuncidionof employment elation.

Exceptions.'The folloving strikers are NOT entitled toreinstatement:1. Union officerswho knowinglyparticipaten

an illegalstrike;and2.' Any siriker/unionmembef who knowingly

participates n the commissionof illegalacts during he strike.

Note: Those union members pgg*[.qiped anillegal trikebut have not committddaii ittegalact shall be reinstated but without anybackwages.

Rules in Strikes in Hospitals1. lt shall be the dutyof strikingemployees r

locking-out employer to provide and

Araintain an effective SKELETALWORKFORCE f medicaland other healthpersonnel or the durationof the strike orlockout.

2. Secretary of Labor may immediatelyassurne jurisdidion within 24 hours lromknowledge fthe occurrence f suchstrikeor lock-outor certify t to the Commissionfor compulsory rbitration.

ART.264:PROHIBITED CTIVITIES

Labor OrganizationsNO labor organization or employer shalldeclarea $rike or lockout1. Without irst having bargainedmllectively

in accordancewith Tifle Vll of this Book

nrsts$d#

Third

or interfereimpede



5uu ffiels 6ol[egeofLstn


nU r rj rJ

1. Any peaceful picketingby employeesduring any labor controversy r in theexercise f therightof self-organizationr

collectiveargaining,r2. Shall aid or abet such obstruction r

interference.

EmployersNO employershall use or employ any

/ STRIKE-BREAKERor shallanyperson e( employeds a strikebreaker.\-r c.lr.or'FIN(

PublicOfficialor EmployeeNO public official or employee, ncluding

officersand personnel f the New ArmedForcesof the Philippines r the IntegratedNational olice, r armed ersons:1. Shall diiiff',ff4j ntroduceor escort n any

manner, a scab or) any,individual hoseeks to replaceslrikers n enteringorleavinghe prernises f a strikearea,orwork n place f he strikers,

Scab - is an employee ho refuses ojoin a strikeor a union memberwho

refuse o strike or who returns o workbefore .strikes ended r settled.

2. The policeforce shall keep out of thepicketinesunless ctual iolence r othercriminal ctsoccur herein:

PROVIDED,thatnothing erein hill beinterpretedo preventany publicofficersfrom akinganymeasure ecessaryo:a. Maintain eace ndorder;b. Protectife andproperty; ndlorc. Enforcehe aw and egal rder.

PersonsEngaged n PicketingNOperson ngagedn picketinghall:1. Commitany act of violence,'coercion'r

intimidation;r2. Obstructhe free ngresso or egressrom

the employeis premises for laMulpurposes;r'

3. Obstrudpublichoroughfares.; . . ;

Rirlri?on'oifian#l

o}-Asiumpt'rbn 'orCertificationOrderor Return-to-WorkOrderpursuant thereto issued by the DOLESecretaryor'the NLRG

Generat Rule: Non-compliance ith theassumption or certification order of theSecretary of Labor and Employment, r areturn-to-wprk rder issuedpursuant heretoby the Secretaryof Laboror by NLRC,towhicha labordispute s certified,s considered

an illegalact committedn the courseof theslrikeor lockout.

Effect In case of non-compliance f strikers,

they may be subject o immediatedisciplinary

action, including dismissal or loss of

employment status and even to criminalprosecution. (San Juan De Dios Education

Foundation Employees union-AFW vs. San

Juan De Dios Foundation lnc, G.R. NO'

143341,Ma 28, 2004). Moreover, he strike

becomes llegal because of the disregardof

the return-to-work order issued by the

Secretary (Jnion of Filipro Employees us

Nesf/ePirlls., G.R.A/O.88710,Dec 19, 1990)

*(

Rule on Hiring of RePlacements

The hiring of replacements or the stnkersduring a strike s NOT an unfair aborpractice

act of the employer.Such hiringmay even be

done on a permanent basis in case of an

economic strike. An employer is entitled to

carry out his business.But in an unfair abor

practicestrike,such replacementsmay noi be

permanentlyemployed. n case of defianceof

a return-to-work order, or a certificatlon or

assumption rder,a hearing s not required or

tne employer-o validly hire replacement or

workerswho committedhedefiance.

Liability of Persons Committing Prohibited

Acts under Art. 264:Any personviolatingany

of the provisionsof AtL264 shall be punished

by a fine of not lessthan Pl,000.00 nor more

than P10.000.00and/or imprisonmentor not

less than 3 months nor more than 3 years or

both at the discretionof the court. f the person

so convicted is a foreigner' he shall be

subjected o immediatesummarydeportation

and will be permanently barred from re-

entering the country without the specialpermissionof the Presidentof the Philippines.

lf the act at the same tirne is a violation of the

RevisedPenal Code, a prosecution nder he

unionoffer,retum

Reduced referendumthe purpose f

sameact undversa,

conductedby



LABORLAW

LABORRELATIONS

determininghether r not he reduced fferof the union s acceptableo the boardofdirectors,rustees r partners. henat eastamajority f the boardof directors r trustees r

the partners oldinghe controllingnterestnthe partnership, ote to accept he reducedoffer, he workers hall mmediatelyeturn oworf

.gnd the employer hall thereuponreadmithemupon igning f heagreement.

ART. 66:ARREST NDDETENTTON

GeneralRule:A police fficer annot rrest roetarna unionmember or unionactivitiesWthout previous consultationswith theSecretary f Labor.

Excepton grounds f:1. Nationalecuritv:2. Public eace, nd3. Commissionfa crime.

An arrest can be laMully made in thefollowing ases:a. Any personwhoobstructshefreeand

lawful ingressand egressfrom ineemployeispremisesr whoohstructs

. pubticthoroughfares.b. Any personwho shall have in his

possession deadly weapons in. - viotatiol.ol B:p. Bt9.:g ancjRrearms

and.explosives Guideiinesor thecondud of pNp/AFp personnel inLaborDisputes)

TITLEONE. ERMINATIONF

EMPLOYMENT

ART.279: ECURITYFTENURE

Securityof Tenure the constitutionalightgrantedhe employee,hat he employerhallnot terminatehe servicesof an employeeexcept or ust causeor when authorized ylaw. t extendso regular pergranent)s wellas non-regular (temporary)employment(Kiamcov. NLRC,GR No. 129449, une 29.

1ege)

Note:Security f tenureclauseqno.$ggnfinedto casesof terminationf employef:employeerelationshiplone. t is also ntended,tohieldworkers rom unwarranted nd unconsentedDEMOTIONndTRANSFER.

ReliefsAvailable o an lllegallyDismissedEmployee1. Reinstatement;ncl/or

2. Payment f baclarrlages.

Reinstatement restorationf the employeeto the state romwhichhe has beenunjusilyremoved r separatedwithout ossof seniorityrightsandotherprivileges.

Formsof Reinstatement1. Actualor PhysicalReinstatement the

employeehallbe admittedacko work.2. PayrollReinstatementthe employees

merelyeinstatedn thepayroll.

What ls the Effect of the Reversatof LaborArbitels Decision to the ReinstatedEmployee?lf the is later

that thethen

ha$S*l 8S&g

thethe

isfor

actualrefund

need of142732-

1. To determinewhether or not

theimproved ofGr of theEMPLOYER isacceptableo the unionmembers.2. To ascertainhe realsentimentof the silentm4onty of the unionmembers nstike.

1. To determinewhether

or not the lmprovedd tfie UNION isacceptable to board,trustees ndparhers.2. To ascertainhe realsentimentof the silentmajonty of the unionmembers nsffike.

On or before the 30bday of the strike.

On or before the 30n davof the lockout

33,



5sr Fell @ottegetLelo

2011CENTRALIZEDAR9PE AT|eNS

2. That t would be inimical o the employers

Mav A Court Orderfhe Reinstatementof,,a

#iltJE; ptoy"'" venf thePrayer f the"C;;i;t

rt Ji ' Nt InctudesuchRetif?

YES. So longas tnere s a finding hat the

;;i";;'iva"s illegallvdismissed'he court

""tioio"t the reinstatementf an employee

;;;"j;ih" iomptaint oesnot nclude prayer

ioi"rein=tatembnt,nless'9f. "o1lll:tl?

emptoyee has waived nls r g''t-- ::

i"i'i"tj'tlt"nt. By law, an employee.*ho -':u-niu"tfv i"rnissebs entitledo reinstatement'

;iffi; ;idt. rhe mere ract that the

ilripi"ini-oio notpray or reinstatemerrtil l

iii'"pt"iuoi." the' employee'

,b--"""1"-:i"lnnii"iiti"" of law and procedut"-:t:iio*n"J uponn abor roceedingsPhe1c.n'e11

);;;ib;'rl vr4tdaez'GRNo' 1161158'

MaY ,2O05)

What happensf there s an ordgr-ojiiiittii"tr{irtbttt he positions no tonger

available?

The employee should be S-'v^91.-"suisrnrtrTu(LLYouIvALENTostTloN'

;- NO' suOstantiatty quivalent.p-"-='1:",1,-'tavailable,einstatementhould otbeordereo

ffift; inai-wouron erfect"?Iq:J^'thu

;;;t;' io do the imPossiblell -1Y.:n,sitJati6n,he employeehouldmerelyDe

i'i"*' srpnpnrror'r PAYconsistilq-of,:.|"Y""iiinZiii'r* ""ry

vear rservice-(t1)''iiriiii"i-trtitnc"v''tu' on No 83523'

'August31, 1989)

Doctrineof StrainedRelations

fr]l*t-in" employer an nolonger rust he

tpi"vt" and vice-versa'or there were

itti"t-r:ti"." of bad faith to each other'

t"ii"i"t""'"nt couldnot effedivelyserve.asa

il;y. T# doctrine pplies nly o posrtions'iiiin'rrq,i'"

trust aid confid'ence'-(GIobeiiiii"iJ.t'tnc. GR No'82511'March '

1e92).

Under the circumstanceswhere the

Jmpfoyt"nt relationship.as .become,'o

f,ilniO.

to*'pr"d,r5e..'"arqnoniorlgorkin$

relationship,"ni=-1i"i'- lltt'

nbpes atreconciliation re nil after reinstatement't

would be more beneficial o accord the

"tpfoy""backwages ndseparation ay'

SeparationPay n Lieuof Reinstatement

Proceeds'rom an ittegaldismissalwierein

ieiniiatement s ordered'but annotbe carried

;rt as in the ollowing ases:

;.'H.init"t"tn"nt

clnnot be effected n view

of the longp"""'g" oJ ime or because f

the rbalities fthesituation;

J .

(

67

interest;Reinstatementayno.tonoere easibte;

ii;ll';;i *rve the besiinterestor the

partiesnvolved;iil;;;; will be PreiudicedbY the

fl}ilXT,Tl)L" PruoenturPose;nd-îl"irh;;;;" a resultanttrainedelations

Note:Underpresentawsand urisprudence'

."-*irtion paymaybeviewedn ourwaYs:^^,

i: "il ii;; li'reinslatement n i legaldismssar'

;;; *n"'" the emPlofed s ordered

iJtti"t"obut reinstatement is nor

feasible;2. n.'liliiov"r" stalutoryblisation'i:3-:''

"i

-r"s"rterminationue to' authorlzeo

Iru"-u1-rno"trt'283 nd284: - -:^,3. ;ilffiil assistance'sanact3f:?::l

iustice ndeven n caseof legaldismtssat

under4rf .2SZ4. As employmenteneflt lfll* in CBAor

"o*-P*VPolicYPoqulz'2006)

eJkwagestf-':f

1 slt":*?ra:il1,1;f:to compensateim.or,tosrl-1î'i^t^"Î"" ["o"'oeriod f hisdismrssal't presupposesllega

termination'

Note:Entitlemento bact<wagesf he llegalty

dismissedmployeelows rom awive:{'1e

il"iJ;;k ior.t, t t"v begiven-ll" r,?'l^:"

toclaimbaclovages.n'[riu"o'pt"intforil|egdismissals a mer"'piocedural?ry" S::h;";;;i- dereat?",nilln,3ii"'i,0,*;i o?substantiveaw' 1s

i;ffi;* io' rtbiao'December' 2001)

sA?i |3##e



LABORLAW

LABORRELATIONS

2. Vacation or service incentive eave andsick leave;and

3. 13* monthpay.

Note: Facilities such as uniforms, shoes,helmetsand ponchosshould NOT be includedin the computation f backwages.

Reason: said items are givenfree, o be usedonly during official our of duty not for privateor personaluse.

Note: The award of backwages is computedon the basis.of a 30-day month (JAM Trans

Co. v. Flores, GR No. L-68555, March 19,1egs).

Monetary awards to illegally dismissedOFWs.OFWsarenotentitledo reliefsunderArt 27gof the LaborCode.This s so becauseOFWsare contractual mployeeswhoserights andobligationsare governed primarityby theRulesand Regulationsf thepOEA.

WhichTakesPrecedencen ConflidsArisingBetweenEmployer'sManagementPrerogativeand the Employees'Right to Secuity oftenure?The employee's ight to securityof tenure.Thus,an employer's anagementrerogativeincludeshe right o terminatehe seMcesofthe employee but this managementprerogatives limited y he LaborCodewhichprovideshat the employer an terminate nemployeeONLYFOR A JUST CAUSEORWHENAUTHORIZEDYLAW.This imitationis becauseno less than the Constitutionrecognizesndguaranteesmplofee'sight o

securityof tenure(Aft. 279,LaborCode;Aft.Xlll, Sec.3,Constitution)

ART. 280: REGULAR AND CASUAL,..EM'LO'MENT

---- --ri:l i:**

FourKindsof Employees nder Aft. 2801.Regularmployment2. Casual mployment3. Project mployment4. Seasonalmployment

Other orms of employmentunder BooRVI5. Fixed-Periodmployment6. Probationary

1. Regular mploymentEmploymentarrangementwhere theemployee:a. Has been engaged to Perform

activitieswhichare usuallynecessaryor desirablen the usualbusiness r

tradeof heemPloYer;rb. Hasrendered t leastone(1) yearof

service, whether such service iscontinuous r broken,with respect otheactivitynwhichhe s employed.

Restoresthe employeewhg was unjustlydismissedo the positionfrom which he wasremoved.e. to hb statusquoantedismbsal.

Allows the sameemployee o recover romthe employer that whichhe had lost by way oiwages as a resuft of hisdbmissal.

The awardof reinstatements not inconsbtent iththe awardof bac-kwages.

Separationpay b paidreinstatement nopossible.

Backwages b paid forthe compensation whichotherwise heshould have earned hadhe not .been illegallydismissed.

employee'sengthComputedrom he imeof illegaldismissal p to

'reinstatement.orreinstatementb no

longerpossble,until heof the decision.

Paid as a wherewithalassistance during the

that an employee

Paid for the losseamings during theperiod between illegaldismissal andreinstatement.

b not inconsistentseparationay.

oetwe6SAdtiffiffi*ftivity

at theto the

the



5sn Bebo@otlegef aab

2011CEI.ITRALIZEDAROPERATIONS

b. Period of Serv'ce Iest-Whether or notthe employee has rendered at least

oneyear

of service. An employee,who is allowed o work for at leastoneyear, whether the same is continuousor broken,shall be considered egularemployee.

c. Probationary Employme;nt lesf-Whether or not he employee isallowed o work after he lapseof theprobationary eriod.An employeewhois allowed to work after the lapse of

.the probationary period shall be

considered regularemployee.

tjasual EmploymentEmployment ,arrangement where anemployee is effga(ied to perform activitieswhich are not necessaryor desirable inthe usual trade or business of theemployer.a. The status of regular empoy4ent

attaches o the casual employeewhohas renderedat least one (1) year of'

service, whether such service iscontinuousor broken,with respect othe activi$ in which he is employedand his employmentshall continuewhile such activityexists.

b. A casual employee s only casual forone year,and it is the passageof timethat gives him a regular status(KASAMMA-CCO v. CA, GR No.159828,April19,2006\

Purpose: to give meaning to theconstitutional guarantees of security oftenure and right to self-organization(Mercado v. NLRC, GR No. 79869,September5, 1991).

Project EmploymentEmployment has been flxed for a specificproject or undertaking, he completionorterminationof which has been determinedat the time of engagement of the

employee.^ t . . , - \

WhEie - the'-;mploytit:ht ' bf i piojec'temployees s extended ong af ter thesuppced projecthas been inished, heemployees re removedrom hescopeofproject mployeesndconsideredegularemployees. \

When may a project employeebecomea regularemployee?

1. There s continuousehiring f projectemployeesvenafter he cessation fa projecdor the same asksor natureoftasks:and

2. The tasks performedby the alleged

projectemployeeare vital, necessary

andindisPensable to the usual

business r tradeof the emPloYer.

r PROJECT has reference to a

particularob or undertakinghat may

or may not be within the regular or

usual businessof employer. n either

case, the Project must be distinct,

separate and identifiable from the

main businessof the employerand its

dufation must ber determined or

determinable.

Note: Membersof a work Pool from

which a constructioncompanydraws

its project employees, if considered

emPloYees of the construction

companywhile in the work Pool' are

non-projectemployeesci employees

for an indefiniteperiod. lf they are

employed n a particularproject, he

completion f the projector any phase

thereofwill not mean severanceof E-

E relationship.

UNLESS, he workers n thework Poolare free to leave anY time and offer

theirservices o otheremployers' L'L

Datu & Co., Inc. v. NLRC, GR No'

113162,February9, 1996r'

Note: Project emPloYees are .not

regular emPloYees, their serylces

being needed onlY when thereare

projects o be undertaken.

Requirements: (Policy lnstrudion No' 20

and D.O. No. f 9. Seriesof 1997)

a. Specific project phase thereof stated

specified

As

ale

orwhichare

engagedor that



LABORLAW

LABORRELATIONS

Entitlemento Separation ayGeneralRule: Projectemployees re NOTentitled to separationpay if they are

terminateds a result f thecompletionf theprojector any phase hereof n which heyhavebeenemployed.

Exception: f theprojectsheyareworking nhave not yet been completedwhen theirservicesare terminated; rojectemployeesalsoenjoy ecurity f tenure uring he imitedtime of their employment.De Ocampov.NLRC,GRNo.81077, une6, 1990)

4. SeasonalEmploymentEmploymentarrangementwhere anemployees engagedo work duringaparticular easonon an activity hat isusually ecessaryr desirablen he usua.businessr radeof heemployer.

During off-season,he relationship femployer nd employees not severed;the seasonal employee is merely

considercdon leave of absencewithoutpay.

When are seasonal employeesconsidered s regular mployees?1. When here s reasonableonnection

between the particular activityperformedy he employeen relationto the usual radeor business f theemployer;nd

2. Seasonal orkerswhoare repeatedlyengaged o perform he same tasksfor more than one season. (SeeHacienda Fatima ys. NationatFederation of Sugarcane Workers-Food and GeneralTrade G.R. NO.14944, 8 Jan 2003)

Note: One-year urationon the job ispertinentn decidingwhethera casualemployee asbecomeegular r not,but

it is NOT pertinento a seasonalorprojectemployee. assage f timedoesnot makea seasonalworker egularor

I ,'

:Perffianent(Mercadon pq6,.:cR l/o.79869,September, 1991).

When he business stablishments soldwhich effectively. terminates theemploymentf the seasonal mployees, tthe latterwouldbe entifledo separationpay-

5. Temporary orEmployment

Fixed-Period

projector undertaking hich is psuallynecessaryor desirable n the usuAlbusiness r trade of the employer,he

completionf whichhas beendeterminedat the time of the engagement f theemployee.

A flxed-periodmployeeoesnotbecomea regular employee because hisemployments co-terminus itha specificperiod f time.

Reason for validity of fixed-periodemployment Freedoin of parties tocontracto ongas hestipulationshereofare not contrary o law, morals,goodcustoms,ublic rder ndpublic olicy

.,. ,

Note: lt doesnot necessarilyollow hatwhere he dutiesof the employee onsistof activitiessually ecessaryr desirablein the usualbusinessf the employer,he'parties

are forbiddenrom agreeing n aperiod f time or heperformancef such

activities. here s nothingcontradictorybEtween"a efiniteperiodof employmentand the natureof the employee'suties.(See Pangilinan vs. General MillingCorporation,G.R. No. 149329, 12 July2W4).

However,n the following ases,workersemployedor a fixed-termereconsideredas regular mployees:a. The employees ereallowedo work

beyond he fixed-termwithout thebenefitof a newcontract Viemesvs.NLRC,G.R.No.108405,4 Pr2049;'

b. The employeeswere allowed o workfor more hanoneYearand here s areasonable onnection etween heparticularactivity performedby the

the usual

oli s athethe

usual

lnc.

F#lldszza,1

7, 14



Ssn ffebs@ottege{.tr


the partieswithoutany force,duress, rimproper ressure eingbroughto bearupon he employee nd absent nyother

circumstancesitiating isconsent;r2. lt satisfactorilyppearshat he employerand he employee ealtwitheachother nmoreor less equal ermswith no moraldominancexercisedythe formeror thelatler (BrentSchoo/ .'Zamora,GRNo. L-4U94, February , 1990).

GeneralRule: Fixed-Period mploymentsvalidso long as the criteriaabovementionedarecomplied ith.

Exception:While the SupremeCourt hasupheldhe legality f flxed-term mployment,where rom the circumstancest is apparentthat the periods have been imposed opreclude cquisition f security f tenurebythe empioyee,hey shouldbe struck ownordisregardeds contraryo publicpolicy. SeeManila Water Co. lnc. vs. Pena. G.R. No.158255,8 July 2004; Magsalinvs. NationalArganization of Working Men, G.R. No.

14U92,9 May 2003)

SpecialGroupsof Employees1. OFWs and Seafarers cannot be

considered s regularemployees. heiremployments governed y the contractstireysign every ime heyare rehired ndtheiremployrnents terminated hen hecontractexpires.Their ernploymentsfixed or a cerlain eriod f ime.For a privateschool eacher o acquire

permanentstatus in employment,hefollowing equisitesmust concur: 1) theteacher s a full:time eacher; 2) theteacher must have rendered threeconsecutiveearsof service; nd(3)suchservice must have been satisfactory.(Spouses Alwyn Ong Lim and EvelynLukang'Um Vs, LegazpiHope ChristianSchoo/, t al., G.R. No.172818,March31,2009.)The employmentof househelperss theonlv kind n the LaborCde wherea fixedtein i|t gpnEssly\PRo vtDED FoR.UnderAd. 142 of the LaborCode, heoriginal ontrac-tor domestic ervice hallnot astmore han 2 years, enewableorsuchperiods s .maybe agreeduponbythe partiesand subject o reviewevery3yearswith heend n viewof mprovinghetermsandconditionshereof.Piece-rateworkersmay attainregulaity ofemployment. ayment y the piece s justa methodof compensationnd does not

define he essence f compensation.orpiece ate workerso be regularized:1)

their work must be necessaryor desirat[e

in the usual businessof the employer, 2)

they worked for lhe employer hroughout

the year, their employment notbeing

dependent n a specificprojector season,

and (3) they worked for more than one

year.

ART.281 PROBATIONARY MPLOYMENT

ProbationaryEmPloYmentExists where the emPloYee, upon nls

engagements madeto und;:rgoa trial period

during which the employer determinesnls

fitnesl to qualify or regularemployment ased

on reasonable tandardsmade known to him

at the imeof his engagement.

Note: ln all cases piobationaryemployment,

the employer shall make kncurn to the

employee he standardsunde:'whichhe wil l

quatityas a regularemployeeat the time of his

engagement.Where no standardsare maoe

fn6w-n o the employeeat that time, he should

be*regardeds a regularemployee'

Characteristics of ProbationarY

Employrnent1.

'ltis an employmentor a trialperiod;

2. lt is a temporaryemploymentstatus prlor

to regular mPloYment;3. lt aiises through a contract with the

followingelements:a. ThJemployee must learnand work at

a ParticulartYPef work;

b. Such work calls for a certain

qualificationsi

c. The Probations fixed

d. The employer reserves he power to

terminateduring or at the end of the

trial Period; nd

z-

by



LABORLAW

LABOR ELATIONS

Example:The probationary eriodset forprofessors,nstructorsnd teachers s three(3) consecutiveyears of satisfactoryseNicepursuanto DOLEManual f RegulationsorPrivate chools.

Extension f ProbationThe employer nd employeemay extendbyagreement the probationary period ofemploymenteyond ix(6)months.

Note: By voluntarily greeing o such anextension,he employee aivedany benefitattachingo the completionf the periodf hestill ailed o make hegrade uring heperiod

of extension MariwasaMfg., lnc. v. Hon.Leogardo,GRNo. 74246, anuary26, 1989).

Double or Successive Probation NOTAllowedThe evil sought to be prevented s todiscourage chemingemployersrom usingthe systemof doubleor successiye robationto circumventhe mandateof the law onregularizationnd make t easier or them odismiss heiremployeesHolidaynn Manila .

NIRC,GRNo. 109114, eptember4,1993).

Termination f Probationary mploymentProbationarymployeesre protected y theSECURITYOF TENUREorovision f theConstitrJtion.

'HOWEVER, probationarymployeemaybeterminatedt any ime beforehe expirationftheprobationaryeriodon fwo(2)grounds:1. Justcause; nd2. Failure to meet the

standardsfor

qualificationsor a regular mployment.

Note:Theprobationarymployees entiiledoPROCEDURALDUE PROCESSorior todismissalrom heservice.

The power of the employerto terminateprobationary mployeess suhject to thefollowingimitations:irst, his powermustbeexeros-gdn .accordanaewithr..the, pecificrequirementsof the contrad. Seccind,the

dissatisfactionn the part of the employermustbe realand n good aith,not eigned oas o circumventhe contract r the larrrr.hird,theremusl E nounlaMul iscriminationn hedismissal. Davao ContradorsDevelopmentCooperative (DACODECO) ys. MaritynA. Pasawa,G.R.No. 172174,uty9, 2009)

Llmitations o Terminationof Probation1. The employels power to terminatea

probationarymploymentontractmustbe

exercised n accordancewith the specificrequirementsof the contract;

2. lf a particular time is prescribed, the

terminationmustbe within such ime and f

formal notice is required, hen that formmust be used;

3. The employer's dissafisfactionmust be

real and in good faith, not feignedso as to

circumventhe contractor the law and

4. There must be no unlavtful disciminationin he dismissal.

RegularStatus after ProbaticinargPeriodlf the probationaryemployee is allowed to

work beyond the period of 6 months or the

agreed probationary period, said employeebecomesa regularemployeeby operationof

law"i;l''4r'i

ART.282:TERMINATION Y EMPLOYER

Gurdelines to Determine the Validity of

Termination:1. Gravityof the offense;2. Position occ-upied y the employee,3. Degreeof damage o the emPloYer'

4. Previous nfractionsof the same offense;and5. Lengthof service.Totalityof Infractions DoctrineIt is the totality,not the compartmentalizationof company nfractionshat the employeehad

consistently committed, wttich justifies thepenaltyof dismissal e.9. numberof violations

committedduring the periodof employment).(Manita Eledic Company v. NLRC, GR No.

114129,October24, 1996)

Just Causes1. Serious Misconduct

MISCONDUCThas been defined as the

transgressionof some established and

[,"tffis# #ffr l-J\w



Sun Gebc@otlegt Aeto


Examples:a. Sexual arassmentb. FightingWthin ompanyremises

c. Uttering obscene, insulting oroffe.nsiveordsagainst superior

d. Falsificationf ime ecordse. Grossmmorality

Willful Disobediencer InsubordinationRequisitesa. The employee'sssailedonduct as

been wilfful or intentional, hewillfulness eingcharacterizedy a"wrongfuland perverse ttitude";and

b. Theorder iolatedmusthave een:i. Reasonablend awful,ii. Madeknown o the employee;

andiii. ln connection to the duties

which he had been engaged odischarge (Acesite CorPoration,et. al v. NLRC, GR No. 152308,January 26, 2005).

Note: There is no law that comPels an

employee to accept a promotion for thereason hat a promotion s in the natureof

a gift or reward,which a personhas theright o refuse.Hence, he exerciseby theemployee of the right to refuse apromotioncannot be consideredn law asinsubordination, r willful disobedience fa laMul order of the emPloYet(PT&TCorp. v. CA, September 29, 2a0Q.

Gross and HabitualNeglectof Duties

In order to constitutea just cause for theemployee'sdismissil, he neglec{,of utiesMUSTNOT ONLY BE GROSSBUTALSOHAB1TUAL.o Gross nqlect means an absence of

that diligence that an ordinarilYprudent man would use in his ownatfairs (Depaftment of Labor Manual,Sec. 4343.01[27]).

o Habitual .nqlect implies repeatedfailure to perform one'sdutiesover'a

NLRC, GR No. 110388'

SePtember 4' 1995)

Note: The filing of the complaint orillegal dismissal (with a prayer

.forreinSatement)s inconsistentwith the

charge of abandonment Kams lnt'l'

lnc. v. NLRC. GR No' 128U6'

Se1tember28, 1999)'

HOWEVER, the rule has no

application where the complainant

dobs not PraY tor ginstatement and

asks for separationpay instead' (Jo'

et. al v. NLRC, GR No' 121605'

.February2,2000).

4. Fraud or Willful Breach of Trust

Fraud or dolo - consists n the conscious

and intentionalproposition o evade the

normal fulfillment of an obiigation

Commission of fraud bY an emPtoYee

against he employerwill necessarilyesult

* irithe.latter'sostof trustand confidencen

the former.

Requisites or Fraud:

a. Fraud must be committed AGAINST

the employer or his representative;

andb. lN CONNECTION ith he employee's

work (DePartment of Labor Manual'

Sec. 4s53.01[3]).

ExamPles

1. falsificationof time cards2. theftof comPanyProperty3. unauthorizeduse of vehicltil

Willful Breach of Trust - Breach of trust

or confidencemust be willful'A breach s

(ependinguponthe(JGB and'AsSodiateqlnc.v. NLRC,GRNo.10939, arch ,1ee6).

Formsof Nqled of Dutya. Habitualardinessndabsenteeism;b. Abandonment

i. Failure to report for work orabsence ithout alidor ustifiablereason;

ii. Clear intention s sever Er-Eerelationshipeing manifested ysomeovert acts.(Laboret., al. v.

#gh$rbttSFHHtPloYer{*il -:i$ir [-&1*V



LABORLAW

LABOR ELATIONS

d. Must be genuine, not a mere

afterthought o justify earlier action

taken n bad aith:and

e. The emPloYee involved holds a

Position ftrust andconfidence.

Note: Generally,employersare allowed

wider latitudeof discretion n terminating

the employmentof managerialpersonnel

or those who, while not of similar ranK,

perform functionswhich by their nature

iequire the employer's full trust ?ndconfidence. (Coca-Cola Bottlersv. NLRC'

GR No. 825W, APril25, 1989)

5. Commission of a Crime or Offense

Refers to an offense by the employee' r.:i"'altainstthe prson of his employeror any

immediatememberof his amilyor his duly

authorized representative and thus, the

conviction of a crime invoiving moral

turpitude is not analogous heretoas the

element of relation o his work or to his

employer s lacking.

Note: The CONVICTIONof an employee

in a criminal case is NOT necessary o

warranthis dismissal y hisemployer.

6. Analogous CausesMust be due to the voluntaryand/or wiltful

act or omission of the employee(Nadura

v. Benguet Consolidated, GR No. L-

17780, August 24, 1962).

Examplesa. Violation of company rules and

regulationsb. Drunkennessc. Gross nefficiencyd. lllegallydivertingemployeisproducts

Other Just Causes Recognized under Other

provisions of the Labor Code1. Unionofficerswhoknowingly articipaten

an illegalstrike.

2. Any employee, union officer or mere' ;. ffiembet,yvhgkncningly parti.cipatesn the

commi#ibn of illegalads during' a strike.

3. Strikers who violate orders, prohibitions

and/or injunctions as are issued by the

Secretaryof Laborand Employment r the

NLRC.4. Molation of union s'ecurity clause

stipulated in the CBA pursuant to Art

24.8[eJ.

. Doctrine of IncompatitritityWhere the employeehas donesomething hat

is contrary or incompatible with the faithful

just cause for terminating ls 9mpl.oy.T9nt(ManilaChauffels League . BachrachMotor

Co., 0o.G.159lr.

Due Process to be observed bY the-,

employerin" foifo*ng standards f dueprocess hall

Oe substantially bserved or terminationof

employmentased n ustcauses:

1. Notice TwinNoticeRule) the employer

is requiiedo furnish nemploy-eeho is

to be dismissedwith two P) written

notices efore uch ermination:

a. Pre'Notice a writtennoticeservedon the emPloYeesPecifYing he

ground rgroundsor ermination,nd

liUng to laid emPloYeeeasonable

6pportunityithinwhicho explain is

side;b. Posf-Nofice - a written notice of

terminaiionseryedon tfre employeeindicatinghatupondueconsidcration

of all hecircumstances,rounds ave

heen established to juSifY

-li"terminaiion.whichcomesonly afterthe emPloYees given reasonableperiod rom eceiptof hefirstnotice.to

answerhecharge, eerequirement

below) PePsi-Cola. NLRC'GR No'

909A, February 0' 1992)

2. Hearingor Gonference a hearingor-confere-ncehouldbe held duringwhich

the emPloYeeconcemed, with the

assistance f counsel, f theemployee o

desires, is given the oppot'tunityo

resPond to the charge, Present .fti:evidence r rebut he evidence resented

against him (Lavadorv. "J"'Marketing

Clorparationnd Soyao'GR No' 157757'

June28, 2005).



Ssn SeDs@ollegefAeb

2011CENIRALIZEDAROPERATIONS

tnc. v. NLRC, GR No. 89876, November 13,

1se2).

Note: In Agabon v. NLRC, GR No. 158693,

Nov. 17, 20M, when dismissal s for just or

authorized cause but due process was not

observed, the dismissal should be upheld.

However, he employershould be held liable

for non-compliance with the procedural

requirements f due process t.e.damages).

The above rulingwas modifiedby JAKA Food

Processing v. Pacot, GR No. 151378, March

28,2005:1. lf basedon a just cause (Art. 282) but the

employer ailed to complywith the noticerequirement,he sanction o be imposed

upon him shouldbe temperedbecause he

dismissalprocesswas, in effect, nitiated

by an act imputaHe o the employee;and

2. lf basedon an authorized ause(Art.283)

but the employer ailed o complywith the

noticerequirement,he sanction hould besfiffer becausethe dismissal process was

initiatedby the employer'sexerciseof his

management rerogative.

The ruling n the JAM case was also modified

in lndustrial Timber Corp., et. al. vs. Ababan,

et. al., GR No. 164518,March 30,2O06.This

case subdivided he dismissal or authorized

causes nto 1) due to lossesand 2) not due to

losses. f the authorized ause hat terminates

employmentarisds rom losses, he penalty o

the employerwho disregardeddue process

may be lighter han f the ai:thorized ause has

no relation o losses.

The Court also mentioned other fad,ors to

ansider tn assessing the penalty to the

employer such as:1. The authorizedcause invoked, whether

retrenchment or cessation of operati.on

due to seriousbusiness osses;The number f employeeso be awarded;The inancialapacity f heemployer,Theemployer'srantof other erminationbenefits; nd

Wtrethefhelew3s a{ona fideattemS o

compli'wlth' the' noticerequirement sopposedo givingno noticeat all.

Prevqntive uspensionAn employeemaybe placed nderpreventlvesuspension, f his continuedemploymentposesa seriousand imminenthreat o life orpropertyof the employer r his Co-workers.tshall be for a ma><imumeriodof 30 dqys,during which periodthe employeeplacedunderpreventive uspensions not entitled o

anywages.

1. However,when there is a companypolicy-

or a CBA provisionmandatingpaymentof

wages during said 3O-days preventive

sus.-pension,uch paymentshallbe F.d?,2. Preventive uspensionshould not last for

more than thirty (30) days' The employee

shouldbe mad'e o resume his work after

30 daYs.3. However, the same can be extended

orovided the emPloYer PaYS the

suspendedemployeehis wagesand other

benefits.8:

Note: After he lapseof the 3Gday period' he

employer is required to reinstate the

"t'pfoy"".lf the employerdecides o extend

the' period of preventive suspensions for

iustiniOte easons,he is obligatdd o pay the

"r"g""and other benefits due to the

suspendedworker.

Offers to reinstate the worker made after the

nfingof a complaint or illegaldism.issal ould

notva

t Oatean otherwisearbitraryd sm ssal'

Requirements or Termination1. 'substantive Due Process-The employer

shall not terminate the services of an

employeeexcept or a just calse (Art 282)

or when authorizedby law (Arts' 283 and

284).When there s no showingof a clear'

validand legalcause or the termination f

employment,he law considers he case a

matterof illegaldismissal'

2. ProceduralDue Process

a. For terminationbased on just causes

underArt. 282'

Procedural

due

Process means comPliancewith the

following:i. A written notice

served on the

specifYing the

(first notice)emPloYee

ground for

2.3.4.

5. ofso, t o

his

theduethe

havejustrfy

his





San Felu @otleged {^ffi


precluded from adopting a new policy

conducive to a more economical and

effectivemanagement,and the law does

not require that the employershould besuffering financial losses before he can

terminate he servicesof the employeeon

the ground of redundancY (Dole

Philippines,nc., et. alv. NLRC,et. al).

3. Retrenchment(Downsizing)a. reductionof personnelusuallydue to

poor financial returns so as to cutdown on costs of operationsn termsof salaries and. wages to Prevent

bankruptcyof the comPanY;b. linked with losses, it is a cost-cutting

measuremade immediately ecessaryby business reductionor reverses.. +:.,:;..i...*:

Note: The phrase "TO PREVENTLOSSES' means that retrenchmentortermination from the service of sorneemployees s authorized o be undertakenby the employer sometime before thelosses anticipatedare actuallysustained

orrealized.Evidently,actual osses need

not set in prior to retrenchment Caiucom

Vllv. TPI PhilippinesCementCorporation,et. al, GR No. 149@0, February 11.

2005).

There is NO need for investigation n('

hearing before an employee may bedismissed due to retrenchment or

redundancy.The employeecan however, .controvert the grounds for termination

before'the DOLE.

General Standards of Retrenchment(srNS)1. The lossesexpected re substantial

and notmerelY eminimisn extent;2. Theapprehendedubstantialossare

reasonablY lmminent, can beperceivedbjectivelynd ngood aithby heemPloYer;

3. Retrenchmentmust.lleggFsary.o pf€vent

;ir.,",,tos3eCfbnO

be reasonablythe expected

4. Expected or actual losses must beprbved by'gufficient and convincingevidence (Central Azucarrera dela

Carlota v. NLRC, GR No. 10@92,December29, 1995).

Requirementsfor Valid Retrenchment1. Retrenchment is REASONABLY

NECESSARY and likely to Preventbusiness losses, which, if already

. incurred, are not merelv ce minimis,but substantial, serious, ..:tual and

real, or if onlY expected' .ar :

reasonablY imminent as Percelveoobjectivelyand in good faith by the

employer;2. Th; emPloYer served WRITTEN

NOTICEboth o the emPloYees nd to

the DOLE at Ieastone (1) month prior

the intendeddate of retrenchment;

3. The employer pays the retrenched

emPloYees SEPARATION PAY

equivalent o one month PaY or at

least one-half month PaY for every

year of service; +4. ine emPloYer exercises its

prerogativeo retrenchemployees N-

booD FAITHfor the advancement f

its interest and not to defeat or

circumvent the employees' right to

securitY f tenure;and

5. The emPloYer used FAIR'AND

REASONABLE CRITERIA in

ascertainingwho would be dismissed

and who would be retainedamorg the

employees,such as status, efflciency,

seniofiiY, PhYsical itness, age and

financialhardship or certainworkers

(Asian Ncohol CorP-v. NLRC, GR No'1311O8March25, 1999),

Note: The employerbears the burden to

prove such ground with clear and

satisfactory evidence, failing which.-.the

dismissalon such ground is unjustified'(Bio Quest Marketing lnc and/or Jose L'

Co tzs.Edmund ReY, G.R' No' 181503'

SePtembei 18,2009-)

"Last ln, First Out" Rule (LIFO)It applies o terminationof employmentn the

same ineof work.What is contemplatedn the



LABORLAW

LABORRELATIONS

Hobson's Choice - Meansno choiceat all; achoice between acceptingwhat is offeredorhavingnothing at all. For example, n Asufrin,

Jr. vs. San Miguel Corporation, (G.R. No.156658, 10 March 2004), the employeesweregiventhe choiceeither o voluntarily etire,beretrenched with benefits or be dismissedwithoutreceiving ny benefitat all.

Retrenchmentvs. Redund

4. Glosure or Cessation of Operation ofthe Establishmentor Undertaking

Regufsrfesa. The decision to close or cease

operationsshould bg made in good

faith.b. The purpose should not be to

circumvent the provision of Title IBook Six of the Labor Code (Rules onTermination of Employment

c. There is no other option available othe employerexcept o close or ceaseoperations.

d. The notice requirementunder Art. 283shouldbe compliedwith.Separation ay under he law (when

notdue.to erious usinessosses) rcompanypolicyorrCBA or similarcontract,when appropriate ust'bepaid o theaffected mployees.

Rules;a. Where closure is due to serious

businessosses, oseparationay srequired; NorthDavaoMining Corp.v. NLRC,GR No. 112546, arch13,1996)

b. Whereclosures NOTdue o seriousbusinessosses.workersare entifledto separation ay;

c. Where closurewas due to an act ofthe government,he workers are notentitled to separation pay (National

Federation of Labor v. NLRC, GR No.127718,March2,200O).

Note: Article 283 includes both thecomplete cessation of all businessoperation of an establishmentand thecessation of only part of a company'sbusiness (Cheniver Deco Pint TechnicsCorp. v. NLRC, GR No. 122876,February17,2000). &r

5. Bisease

Requisites:a. The employee is suffering from a

orseaseHis continued employment is eitherprohibited by law, prejudicial o hishealthor prejudicialo the healthof hisco-employees.There s a certification y a competentpublichealthauthority hat the disease

is of suchnatureor at such stage hat itcannot be cured within a periodof sixmonths even with proper medisaltreatment.Notice of termination based on thisground should be served to theemployee concerned and the

b.

, : : r i l r j j , i r ,

Employerreducds' henumberof its personnelin order to preventfurther losses in hisbusiness perations.

\Nhen for purposes ofeconomy a company

decides to reorganize tsdeparhrenE by imposingon employees of onedepartment the dutiesperformed by theemployees of the otherdeparfnent, thusrendering unnecessarythe job of the latter, theservices of theemployees whosefunctions are now being

performedby the former,may be validlyterminated on the groundof REDUNDANCY.

Does notrequireproof ofactual orirnminentloss

Does notrequireproof ofacfual orimminentloss

Requiresproof ofactual orimminentloss

Does notreqlireproof ofactual orimminentloss

must be

refers



Ssn BeDe@oltegef Leb


The requirementor a medical ceftificateunderarticle2A of the aborcodecannotbe dispensedwifh; otherwise,t wouldsanction the unilateral and arbitrarydeterminationy the employerof thegravity r extent f theemployee'sllnessand thus defeat he publicpolicy n theprotection f labor (Sy, et. al v. CA, GRNo.142293,ebruary7,2003).

Note:Discriminationn any orm rompre-employmento post-employment,ncludinghiring, romotionr assignment,ased nthe actual,perceived r suspectedHIV

status of an individual s prohibited.Terminationromworkon he solebasis factual,perceivedr suspected IVstatusis deemedunlavvfulSec.35, R.A. 8504,H|V/AIDSAW.

OtherAuthorizedCauses:1. Total and permanent disability of

employee;2. Validapplicationf union ecurity lause;3. Expiration of period in term of

employment;4. Completion of project in projectemployment;

5. Failurenprobation;6. Relocationf businesso a distant lace;7. Defiance f return-to-workrder;8. Commissionf llegal cts na strike;9. Violation foontractualommitment;nd10.Retirement

Totalityof InfractionsDoctrine

Where he employee as been ound o haverepeatedlyncurred everalsuspensions rwarningson accountof violations f companyrulesand regulations,he law warrantsheirdismissals t is akin o "habitualelinquency'(Villeno . NLRC,251 SCRA 94).

ProceduralStepsRequired1. Written notice o DOLE30 days prior to

the ntended ateof ermination;

Purpose:to enable t to ascertainhe

. ,'terdiotthbCatrse,OflerminatiOrf,+*r1',,r;-' i ' -

2. Writtennoticeo employee oncerned 0days prior to the' intended date oftermination;

Note:When erminationf employments'broughtby the failure of an employeeomeet the standardsof the employer ncaseof probationary mploymen ,t shallbe suffioienthata writtennotice s served

the employeewithina reasonableimefrom heeffective ateof termination.

When erminations brought boutby he

completionof the contract or Phasthereof, opriornotices required.

3. PaymentfseParationaY.

Ruleson t o f

Equivalento one monthPaYor at leastone-halfmonthPaYfor every Year of seryice,whichevers higher, frrtionof six 6)monthssconsideredas one 1)whole ear

Equivalent o at least one

month PaYor at least one

monthpay for everyYear of

service,whichevbrs higher'a

ftactionof six (6) months s

considereds one (1) wholeyeal

Equivalento one monthPaYor at leastone-halfmonthPaYfor every Year of service,

whichevers higher,a fractionof six (6)monthss consideredas one 1)whole ear..lf due to severe buslnesslosses or financialreverses'

no separationPaYdue(North

Dava Mining& DeveloPmentCoeoration v. NLRC, 254

scw721).

Equivalent o at least one-

m6nthsalaryor to 7z month

salary for every Yea( of

sewice,whichevbrs greater'a fractionof at least6 months

shall be considefed ne (1)

rvhole ear

*e$ sffi#e{}$Lt-#$s {}*i LAw



LABORLAW

LABORRELATIONS

Dismissal or Just Causevs. Terminationfor AuthorizedCause

The employee isdismissed for causeswhich are attributabletohis faultor culpability.

The employee isdismissed' for causesindependentof his fauftor culpability.

A s a r u l e , a d i s m i s s e demployees not entifledto separation ay.

An employeeerminatedfor authorized ause isentitled to separationpay.

Beforean employee sdismissedor ustcause.

he mustbe givenampleopportunityo be heardand o defend imself; :

Employermust givetheemployee to beterminated a writtennoticeat least 1 monthbefore he intendeC ayof ermination.

ART.28$: ERMINATIONYEMPLOYEE1. Without Just Cause - Oy servinga

WRITTENNOTTCEn the'emptoyei tleastonemonthn advance.e lmftoyeruponwhom no suchnotiie was servec

may hold the employee iable fordamages.

2. With Just Cause An employeemayputan enctto his employmentWITHbUTSERVTNGNy NOTiCE n the emptoveri9l .ny of the foilowing;ust cJusli:(sucA)a. gerious nsirltby the employer r his

representative n the honor andperson f theemployee;

b. Inhumanand unbearable reatmentaccorded the employee by theemployerr his epresentative;

c. Qommissionf a CrimeOr Offense vthe emplciyeror his representativ6againsthe person f theemployeeranyof the immediate embers f hisfamily; nd

d. Other auses nalogouso anyof theforegoing.

Dismissal Terminationfemploymentythe,9mPoyer., , ,. : . . , : \

'

Resignation Terminationf employmentytheemployee.

VoluntaryResignationueflnedas the actof an employee, ho iridshimselfn a situationnwhicAri Uefi"vesnaipersonaleasonsannot esacrificedniavoiof theexigencyf theservice;

hus,he frasnoolnerchoicebut to disassociateimselfromhieemploymentAtfaro . CA,GR tto. iioieii,Augusl28,Z0O1).

Theemployeemustservea writtennotice nthe employer t least one (1) month nadvance.

Once accepted,cannot be withdrawnwithoutthe consent of the employer (tnteftrodMaritime,'lnc.v.,VLRC, GR No. 810gT.June1e ,1991) .

An employee who voluntaily resigns is notentitled to separationpay unless stipulated inan emptoyment ontractor CBA or sanctionedby established employer pffictice or policy(tbid.).

Note: lf resignations not voluntary, he samecan be deemed o be a constructive ismissal.

Voluntary esignationand illegaldismissatareadversely opposed modes of terminatingemployment elations, n that the presenceofone precfudes hat of the other (Alfaro v. CA,ibid).

lntention to Resign

An employee may be deemed to haveresigned from his position, and such'resignation"

may be accepted and madeeffective by the management,although threemployeedid not mention the word .resign,'

and/ or 'resignation".This happened to the

chlef investigative eporter of the philippineStar.He sent a "Memorandumor File'to theChairman{EO expressing his frustrationsand disappointmentsn the office. (philippinesToday nc., et al v.

NLRC,G.R. No. 112965,January 30, 1997)

Constructive DismissalDefined as quitting because continuedemployment is rendered impossible,

if, o riso

itto

June

to hisbeyond

Taxi



5en Feba@ollegef {.rtu


lnc. v. Catinoy, GR No. 143204, June 26,2001.)

Temporary Lay-OffThere is no specific provisionof law whichtreats of a telnporary retrenchment or lay-off'and provides or the requisites n effecting t or

a period of duration therefore. Theseemployees cannot however be forever"temporarily"aid-off.

To remedy his situation,Article286 may be

applied but only by analogy to set a specificperiod hat employeesmay remain emporarilv

laid-offor in a floating status(while businesr'

operationsare suspended) or only a periodoisix months.

ART. 286: WHEN EMPLOYMENT NOT

DEEMEDTERMINATED

When Employment NOTTerminated:1. Bona ide suspensionof the operationof a

busines or undertaking or a periodnoiexceeding six (6) months;or

2. Fulfillmentby the employeeof a militaryor

civic duty.

Floating StatusThe "floatingstatus" of an employee shouldlast only for a legallyprescribed eriodof time.When the floatingstatus of an employee asfsfor more than , six months, he may beconsidered to have been constructivdydismlssed from service. Thus, he is entitled tothe corresponding benefits for separation(Agro Commercial Secuity Services Agency,

lnc. v. NLRC, GR Nos. 8282924, July 311989).

Notice RequiredSerious business losses do not excuse theemployer from complyingwith the clearance or-report required under Arfible 283 of the LaborCode and its . imptementing rules beforeterminating he employmentof its workers:' nthe absence of justifying circumstances, thefailure of the employer to observe thepocedural-i-eqqlrgrnents'setout.und6:'Mide

284. aints heiractuations ithbhd aith. f thelay-off was temporary but then seriousbusiness ossespreventedhe reinstatementof respondents,he employer hould havecompliedwith the' requirementsof writtennotice.

TITLE TWO. RETIREMENT FROM THE

SERVICE

ART.287:RETIREMENT

Concept of RetirementIt is the resultof a bilateralact of the parties,a

voluntary agreement between the employer

and the employeeswhereby the latter, after

reaching a certain age, agrees and/or

consenti to sever his employmentwith the

former (Brion v. SPUM of the Seventh Day

AdventistChurch, GR No.o,135136,May 19,

leee).

Goverage l Art.287Applieso all employeesn the private ector'

regiardtessf their positiondesignationtatus

an? irrespective f the methodby which heir

wages are paid, except those specifically

exempted.

HOWEVER. tt.287doesnotaPPlYto:

1. Employees f the NationalGovernment,

anit its political subdivisions,ncluding-

GOCC's if they are coveredby Civil

ServiceLaws;2. Employeesf retail, ervice ndagricultural

esiabiishments r operations egularly

employtngotmorehan10employees'

Kindsof Retirement chemes:1. compulsoryndcontributoryn nature;.,2.' one set up by agreement etween he

employer nd the employeesn CBA. r

other-agreements

between hem (other

applicablemPtoYmentontract);

3: ohe that is voluntarilygiven by the

employer, xpressly s in an 9nl9.unc*company olicy r impliedlys n failure-to

contest the emPloYee's claim for

, GR NO,

ASelF$'#ffirs





5sn Sels @ollegeof Affi


TITLETWO.PRESCRIPTION F

OFFENSES ND CLAIMS

ART.291:MONEYCLAIMS

Periods of PrescriPtion

Note: The period of prescriptionmentioned

under Article 292 of the Labor Code refers to

and s LIMITED O MONEYCLAIMS, l lo ther

cases of injury to rights of a working man

being governed by the Civil Code. Hence,

REINSTATEMENT rescribesn 4 years.

Venue: The Regional Arbitration Branchwhere the workplace s located(NLRC Rules

of Procedure).

3 years from the accrualofthecausesof action

Dearfrom theaccrual f the

4 years from the accrual ofthe cause of rction

s&f* ffiH#t\*{}t;**f {sg {}tr l*,,'l"lsd





APPEALDecisions f the NLRCmay be elevated torREVIEWo the CourtofAppealsby a Petition orCertiorariunderRule65ofthe 1997 Rulesof Courtwithin 0 days romnoticeof judgment, order orresolution ought to beassailedAsamended)

1. nttirpretationnd mplementationf CBAprovisions;nd

2. lnterpretationndenforcementfcompany ersonnelolicies.

Note:Giievancemachinerys resortedo for purposes f settlement. nresoMedrievances

arebrough toheVoluntary rbitrator.

hdo

I

ffi -?\"derpretationr mplementatidhf he CBA;

2. Thosearisingrom he interpretationr enforcementf company ersonnel olicies;

a n d . .s. upon agreementf the parties, thor abordisputesncluding LP and bargaining

deadlocks.

nfoteil:nfotherdisputes" nderArt. 262nay includeerminationisputes, rovidedhat

the acireementetweenhe parties tates n unequivocalanguagehat hey conform o

the Sirbmissionf termination isputesand ULP to voluntaryarbitration. his is so

becauseerminationisputes regenerally ithin he-exclusivendoriginalurisdictionfLabor$rbitersyexpress rovisionf aw Vlvero .CA, 344SCRA 68' 2000)'

tffi3. v'ft4. Err

the5. De

jurisd;tS&it [*tr;f discretisa; "e-b&ffi:'

w

ffitrilffi{ffi

ffi:ffiffi::ffiffi

wray be€VIEW tof Appealsofthe 1997f within15tice of therent, finalution or of

the motionfial or

t .



1. Inter-uniondispttre;2. Intra-unionisptute;nd3. Other elatedabor elations isputes.

NOTE:E.O. 251 OF 1987removed rom the jurisdiction f the BLR "all" labor-managementdbputes.heeffect f E.O.251 s o transfer.tohe NCMB he mediation,conciliation.ndarbitrationunctions f he BLR.NOTE:However,he partiesmay by agreement,ettle heir differences y submittingtheircase o aVoluntary rbilratornstead f akinghe case o the BLR.Petitionsor c{lrcellation f union egistrationmaybe filedwith the RegionalOfficeordirectly ith he BLR,

Directorare appealableothe Secretary of Labor

5 days from receipl

Casesnvolvingecovery f wagesand othermonetarylaimsandbenefits,ncludingegalinterest rovidedfiat he claimb presented y anemployee r person mployedn domesticor householdervice, r househelper,heclaim risesiomEr-Eeelations,he'claimantoesnot seekreinstaterqentnd he aggregatemoney laimof each employee r househelperdoesnotexceed ,5,000.

-NOTE:The urisdictionalimitationmposed y Art. 129 on the visitorial nd enforcementpowersof he Reglonal irector nderArt. 128[b]of the LC has been epealed y R. A. No.7730. notherwords, heP 5,000 imit n Art.129doesnot apply o the exercise f power

underArt. 128[b] 6uicov. Sec. f Labor,GR No. 131750,November6' 1998)'

ln oetitions for

cancellation of unionregistration, if filed with

the Regional Office, theappeal b with the BLR

Director whose decisionshall be final andexeclrtory.lf the oetition forcancellation is fileddirectly with the BLR, theappeal b with theSecretary of Labor whosedecisionshall be final and

executor

Pima : facie evidence ofabuseof discretion:lf the decision, order orawarowas

%tlrbtsti'iiA*iihel

orand



Power o inspecqemployer'sremises nd recordb,ssue

EXCLUSTVErui,OnrCuar-lf there existsa la6or dispute ausingor likely o causea strikeor lockout n

indispensableo thqptional interest7' . ' , .

THE SECRETARYiOF ABoR MAY:assumeur:isdiction:dndecidet; orcertify he same o theNLRC orcompulsoryrbitration.

: i

APELLATE :Cancellationf regislrationf ederationr National nionby he BLR;Denial f applicatio-n-ofegistrationf ederation r national nionby he BLR;Dec'rsionf BLR n nter/lntranion ispute;ndDecision f Me&Arbitern Petitionor Certificationlection.



SOCIALEGISLATION

DECLARATIONFPOLICYTo establish,evelop, romote nd perfectsoundand viable ax-exemptocialsecurityservicesuitableo the needsof the peoplethroughouthePhilippineshich hallpromotesocial justice and provide meaningfulprotectiono members nd heirbenefiiiariesagainst he hazardsof disability, ickness,maternity, old age, death, and othercontingenciesesultingn loss of incomeorfinancial urden. owardshis end. he State

shall endeavor o extend social securityprotectionoworkers nd heirbeneficiaries.

DEFINITIONFTERMS

Employer Any person, aturalor juridical,domesticor foreign,who carrieson in thePhilippines, ny trade, business, ndustry,undertakingr activity f any kind and usesthe services f anotherpersonwho is underhisorders s regardshe employmentxcept

the Government nd any of its politicalsubdiMsions,ranchesor instrumentalities.includingorporatioiswnedor controlled vtheGovernment

Employee - Any person who performsseryicesor an employern whicheitherorbothmental ndphlsicalefforts re usedandwho receives ompensationor suchservices.where there is an employer-employeerelationship:Provided,That a self-employed

person hallbe bothemployee nd employerat thesameime.

Self€mployed - Any personwhose ncomeis notderivedromemployment;hallbe theemployerndemployeet hesame ime.

i j . . , ' . . . r - ' :' \ .

DependentsSCP)1. The legal Spouse entitledby law to

receive upportrom hemember;

2. The legitimate, egitimatedor legallyadoptedand illegitimateChild who isunmarried,'notainfullymployedndhasnot reached 1 years.of ge or il 21 yearsof age,he is congenitally4ncapacitatedrwhilestill a minorhas beenpermanentlyincapacitated nd incapableof self-support, hysicallyndmentally; nd

3 The larent who is receiving egular'' supportrom he member.

Compensation All actual emunerationoremployment,ncluding he mandated ost-of-livingallowance,s well as the cashvalle ofany remunerationaid n any mediumotherthancashexcepthatpartof the remunerationin *cess of the maximum alarycredit asorovided nderSec.78.

Employment Any serviceperformed y anemployeeor his employer, xceptÊxcludedEmploymentnderSec.8(J);(CAG'T)

. Employmenturelygasual nd not or hepurpose f occupation r business f the

connectionemployer,

. Serviceswithan

Philippir$dlfi Skitljt

EXE€UNVECOMMIITEE:FTFKIEL OSHUAVTLLENA verall chairperson,M|NISTIR MotSESDU chairperson or academks, DJoANVTE oMARE JUNASAchakperson for hoter operations, MARIEMTCAELA IA ANA vice.chairperson for operations, MTKHATL AVERICK UMACDER ke.<ftairperrcn or secretatia JACKIE ou LAMUGvke-chairpersonor finince, otRnn jrnru ruAZoN

"t*J"i*"*ror eap, tRsseN

RALPH EE ice<hairpenon or logistks

SUB'ECTCOIIIIITTEE l'ARotDcFRlSItANTALLEDOubjectchair,AYLA'HERAZADEALENDAB ssistanrsubjectchair,tNKyvEloso edp, NEoV/rLERtoaborstandard'MARKLE5TERTAMoNDoNG|aborre|ations.DoNNAFRANCE5YtADEsociili|egishtion

MEMBERS:

lnonl {artn flUa,KarloDalogo, VanessaGuinto,KayeCohen Lamhrino, arlonPambid, oseCarlosTones,Ramayana aidamen, ose

AngeloDavH,KamilleDeanne agasca, aynanLarosa



Sen 0eXo6otlegeof Lnt


Beneficiaries (SC+D) - The dependent

$pouse until he or she remarries, thedependent legitimate, legitimated or legally

adoptedand illegitimate hildren who shall bethe PRIMARY benefrciaiesof the member:o Provided that the dependent illegitimate

children shall be entitled o 50% of the

share of the legifimate, legitimated orlegallyadoptedcfrildren;

c Providd, furtts, in the absence of the

dependent egitimate, egitimated hildren

of the member, his/her dePendenlillegitimatechildren shall be entitled to100% of the benefits;

t In their absenc*, the dependent parentswho shall be the secondary benefrciaries,and

t ln the absence of all of the foregoing,

any other person Pesignated bY the

covered employee as secondarybeneficiary.

Contingency The retirement, death,disability, injury or sictness and maternity ofthe member.

COVERAGEA. Compulsory (Sec. 9) (ADS)

1. All employeesnot over 60 Yeas ofage and heir employers, nd

2. pomestichelperswith monthly ncomeof not ess han P1,000a month.

3. Coverage in the SSS shall also becompulsory upon such $elf-employedpersonsas may be determined by theCommission,ncludingbut no ltlnitedto the following: Sec.9-A): (P'ffF)

a. All self-emPoyed flrofessionals;b. lartners and singleproprietors;c. {ctors and ac{resses, directors,

scriptwriters and newscorrespondents who do not fallwithin the definition of the termemployee in Secfion 8[dl of this

. Act;d. Professional Athletes, coaches,

trainers,and ockeys;ande. lndividuatFarmersand fishermen.

, ", . , ao : . . .i { , J r i t i . t 4 : { . r i , ' t : l} * , . r : . :

. - i . . T1 ,

Limitations:EECEO)1. Any benefit garned by the employees

underprivatebenefit$ans existingat thetime of the approvat f the Actshallnotbediscontinued, reduced or othenriseimpaired;

2. Privateplans which are gxistingand inforceat the time of compulsory bverageshall'be integrated ith the plan of theSSS n sucha way where he employer'scontributiono his private plan is more

thanthat required f him in this Act, he

shall pay to the SSS only the contribution

requiredof him and he shall continuehis

contributiono such privateplan less his

contribution to the SSS so that theemployeis total contributiono his benefit

olan and to the SQSshall be the same as

his csntribution o his privatebenefitplan

beford he compulsory overage'

Any ghanges,adjustments,modifications'

eliminations or improvements in the

benefitsof the remainingprivateplan after

the integration shall be subject to

agreementsbetweenlheemployersand

the emPloYeesoncernbd; nd

The privite benefit dan which the

employershall continue or his employees

shall remain under the gmPloYer's

managementand control unlesg here is

an existingagreemento the contrary'

Nothing n tnis nA shallbe construedas a

limitationon the right of employersand

employeeb o agree on and adopt benefits

whicn are gver and above hose provided

under his Act.

Vofuntary (SASS)

1. Spoubes who devote full time toilanaging the householdand famitY

atfairs (Sec. 9(b));

2. Filipinos employed f,broad recruited

by foreign-based emPloYers(Sec' 9

(c));3. FJrsons leparated from employment

to maintain his right to full benefits

(Sec. 11);arrd

4. $elf-emPloYed, who realizes no

income or a certainmonth (Sec' 11-

A).

By Agreement (Sec. I fi] t4ilAhy loreign government, international

B.

organization, or their wholly-ovned

instrumentalitY workers n the

Ph

Effects(sec.11)

143



LABORLAW

SOCIAL EGISLATION

Effects of tnterruption of Business orProfessional IncIndividual

Dme of Self_Employed

1. He shail nol.,

b: required to pay^ contributionsor that month-

r

2. HOWEVER,he may be allowed tocontinue paying contiibutionsuno"i tnu

:1"rutes applicabte to

" "upir"t"O coveredemployeemember.

J. rr,toretroactive payment of contributionsshal bearowed inernan""-#Jrii"onder ec.22_A

BENEFITSA.

fr-tonthtypension (S€r-. 2)

.yo1t JVensionhail e tl HrcHESr rthe follo,rring:1. p

.300 plus 20%o f averagemonthtysalary credit ptus zzo o-i ;;;;"monthlysalarycredit or each ;;;;;;year of servi

. ORce In excessof 10 years;

Z._40% of monthly alarycredit;OR3. p1,ooo,proiiaea hattG'inlnir,r"

pensionhall nnocaseo" p",o ol"naggregatemount f ess.than0

a.ro,' ,"*uH"tl,i* ., reast oyears credited service, theminimumensionfraffOe-pfZdi;and

b. For memberswith at least 20years credited service--

tieminimumensionnaffOe

-pZ,aOOl

A-1. Dependent's ension (Sec.12_Al1. Equivatento 1o"/" i ;;n-ryl6n"ion^ 9r

p 250,whichevershigheri2. payable

on account"'oi death.permanent,total \is"o,1titv""1?retirement no

3. payable to each dependentchildconceived nor beforen" o"t" oiihJcontingencybut. not"*;;;i"g

.';;

be..ginningith.. he yorng""i'""n;

without substitution;witn plr"fur"ncon legitimatehildren

B-1. RetirementBenefits Sex-.12_B)

1. A memberwno. ai-Jaiaa]t

-rJast

rzomonthty contributions;ril-i;' fi;

seme$erof retirement hall be3 ti "0 o monthtyensions ong sne ttves,provided hat.a. He has reached the age of

60years and is already separatedfrom employmentor nas ceasedto be self--employed;r

b. He has reached the age of 65years.

Note: Member has the option toreceivehis 1n 1g monthtypensionsiilump sum at a. preferentialrate ofInrerestas determined,by he SSS.

A coveredmemberwho is sixty (60)years old but was not abje' to

,.3n]r Pulg at teast 120 montniy,"eontributionprior o the semester fhisretirementhall tillbe entifledo;lump. um benefitequal o the totalpT1gulo1tspaidby himand on his,Tl"'t PROV|DED, e is separat;rroT.

.employment and is notcontinul4g ayment f contributionsotheSSSon hisown.

2.

?

Em,ployee'sbligation o contribute easesat the end of the monthof separation,But said

,employee hall be'creditedWtnalt contributionspaid on his OefrafianJentitled to benefits

according to theprovisionsof thisAct.

llê_1aV,.owevei, continue o pay the total

contributionso maintainnis'rijnt to-ilribenefit

4.

Upon Death of Retired Member (Sec.12-B[Dil1.

fig nlmaV beneficiariess of thedateof hisretirement haltbe entitieJ

^ to receivehemonthly ension;nJ--

2. lf he hasno primary eneficiaiies;ndhedies60 monthsiom hestartof ni imonthlY pension, secondarvoenettciarieshall be entifled o atumpsum benefit

equivalento 1netotalmonthly ensionsorrespondinoro the balance of the

'$_yea;

qy3l"nl""d. period, exctuding'theqependents'ension.

is less



.5sn SeUe otlegeof lb


Death or of PermanentTotal DisabilityPensionerr His primary eneficiarieshallbe entitled

to the monthty ension;r. lf he hasno primary eneficiariesnd he

Cieswithin60 monthsrom he startof his

monthly pension, his secondarYbeneficiarieshall be entitledo a lumpsum benefit quivalento the otalmonthlypensions orrespondingo the balance fthe S-yearguaranteed eriodexcludingthedependents'ension.

The Following are Deemed PermanentTotal Disabilities: ELPIS)1. Completeossof sightof bothgyes;2. Lossof two imbsat or above he ankleor

wrists;3. Permanent complete paralysis of two

limbs;4. Brainnjury esultingo incurablembecility

or [nsanity; nd5. Suchcasesas determined nd approved

by he$SS.

C. FunerafBenetits Sec.1 B)A funeralgrantequivalento P 12,000shall b6 paid n cashor in .kind o help

itil''defray'the-cod f uheril expenses.

D. Sickness Benefits Sec.14)A dailysickness enefitequivalento 90o/oof his averagedaitysalarycreditshall bepaid by his employer r by the SSS, ifunemployedr self-emploYed.

Requlrements:1. A membermusthavePaidat least3

monthly contributionsn the 12'monthperiod mrnediatelyrecedingthe semester f sici-;nesar injury

2. Confinedor more han hreedays n a

hosPitat or elsewhere with the

aPProval fthe SSS; and

3. Att'sict<eavesof absencewith full payto the creditof the employeememDer

shallhavebeenexhausted'

Note: Sick leavesof absencemust be 3

daYsor more.

Conditions:1. ln no case shall the daily sickness

benefitbe paid lo4gerthan 120 days

in 1 calendarYear;

2. Nor shall any unusedportion of the

120 daYs of sickness benefit be

carried bnrarO and added to the total

number of comPensable daYs':=r'

allowablen the subsequentYear;

3. The dailysicknessbenefitshallnot be

Paid for more than 240 daYs or''

accountof the same confinement; nd

4. The employeemembershall notify.his

employeror tfre SSS if unemployed r

.seti"emptoyea,. f the fac-t of his

sicknesi 6r injury within 5 calendar

days after the start of his confinement'

Note: The following are exceptions o the

requirementof notifl ation:

. Confinements in the hospital;and

r Becamesick or was injuredwhile working

or within he premisesof the emptoyer'

E. MaGrnity Leave Benefits {as amehded

bYR.A.73221CLvereO emale member is entitled to--a

J"iiV m"t"rn,ty benefit equivalent,to1 00o/oof her averagedaily salary credtt tor.ou

daYs or 78 daYs in case of c?esarlan

delivery.

maternitY

reclvery

L45

equalto the monthlY

Pensiontimes the number of monthlyconfribrltbns aid to SSS or '12

times the monthlY Pension,

Requirements:



LABORLAW

SOCIAL EGISLATION,

of sickness benefits for the samecompensable eriodof 60 days or thesame childbirth, abortion, ormiscarriage,

or 78 days in case ofcaesarian elivery;4. That the maternitybenefitsprovided

under this Sectionshall be paid onlyfor the first 4 deliveries ormiscarriages.

5. That the SSS shall immediatelyreimburse he employer of 100o/o fthe amount of maternity benefitsadvanced to the employee by theemployerupon receiptof satisfactory

proof of such payment and legalitythereof;and6. lf an employeeshould give birth or

suffer abortionor miscarriagewithoutthe required ontributions aving beenremited for her by her employer o theSSS, or without he latterhavingbeenprevionslynotified by the employer ofthe time of the pregnancy, theemployer shall pay to the SSSdamages equivalent to the benefits,

which said employeewould otherwisehave been entitled o, and the SSSshall n turn pay such amount o theemptoyee oncerned.

Non-Transferability of Benefits (Sec. i5)General Rule: The SSS shall prompflypaythe benefits provided to persons Entifledthereto in accordancewith this Act.

'Restrictions:

o The SSS shallpay he retirement enefitsonthe day of contingencyo qualifiedmemberswho have submitted the necessaryDocumentsat least6 monthsbefore.

r The beneficiarywho is a national of aForeign Country which does not extendbenefrts o a Filipinobeneficiary esiding nthe Philippines, r which is not recognizedby the Philippines, hatt not be entifled toreceiveanybenefitunder his Act.

o Where the Eesf lnterestof the SSS will be, . served, -the Commission mav direct

paymentS withoui regard- o nati6nalty orcountryof residence.

. lf the recipient is a Minor or incapable ofadministering his own affairs, theCommissionshall appointa representative.Such appointmentshall not be necessary incase the recipient s undei the custody of orliving Wth the parents or spouse of themember in which case the beneflts shall bepaid to such parents

or spouse, asrepresentativepayee of the recipient.o Such benefits are Nof Transferableand no

power of'aftorney

or other document

executedby those entitled hereto in favor ofany agent, attorneyor any other personforthe collectionhereofon their behalfshallbe

recognized, xceptwhen they are physicallyunable o collectpersonally uch benefits:o In case of death benefits, f no beneficiary

qualifiesunder this Act, said benefitsshallbe paid to the legal Helrs in accordancewiththe laryof succession.

Exemptions from Tax, Legal Frocess andLien1. The SSS and all its asselpand properties,

all contributionsollected-and ll accruals

theretoand incomeor investment arningstherefrom as well as all supplieqequipment,papersor documentsshall beexempt ,frsmi,:anytax, assessment, fee,charge,or customsor importdut[ and

2. All benefit payments made, by the SSSshall likeryise e exemot from all kinds oftaxes, fees or charges,and shall not beliable to attachments,garnishments,evyor seizure by or under any legal or

*equitable "process whatsoever, either

before or after receipt by the person orpersonsentitled hereto,except o payanydebt of the member o the SSS.

Rem ttance of ContributionsThe contributionsmposedunder his Act shallbe remitted o the SSS withinthe first ten (10)

days of each calendar month following themonth for which they are applicableor withinsuch ime as the Commissionmay prescribe.

Self-employed members shall remit theirmonthlycontributions uarterlyon such dates

and schedules as the Commission mayorescribe.

#ff {}*a L&\ftf



5sn frelg @ofuge I.elo


Duties of the EmPloYer1. To pay employer's contribution in

accordancewith the scheduleprovided n

thisAct;2. To deduct and to remit employees'

contributions;3. To immediately report to the ssS the

names,'ages,

civil status, occupations,

salaries and dePendents of all his

employeeswho are su$ect to compusory

coverage;4. To keep true and accuratework recorcls

for such period and containing such

information as the Commission may

prescribe;5. To require,m a condition o employment,

the presentationof a'registrationnumber,'',,:';'securedby the prospective mployee rom

the SSS in accordance with suchprocedureas the SSS mayadopt;

6. To notify the SSS oi the confinement-

within 5 calendardays after receiptof the

notification rom the employee member;

and7. To advance in two equal monthlY

installments he maternity leave benefitswithin 30 days from the filing of the

maternityeaveaPPlication.

Liabilities of thg EmPloYer:1. The emploYer shall PaY to the SSS

damagesequivalent o the benefits,which

said employee member would otherwise

have been entitled to, for his failure to

remit he required ontributions'

To pay,besideshe contribution,penalty

thereon f 3%permonthrom hedate hecontributionalls due until paid, or hisfailureo deduct nd emit ontributions;To pay o theSSSdamages quivalentothebenefits, hich aidemployee emberwouldhavebeenentitledo hadhisnamebeenreported n time by the employero

the SSS,for his failure o reportmattersrequired ponhim;andTo pay o the SSSdamages quivalentothe differencebetween he amountof

I rbe[gfits;.towhich,theemployee"ember:"f

' or hiJo6nLfiCiiry oitd havebeeiientitledto had the proper contributionsbeenremitted o the SSS, and the amountpayableon the basis of contributionsactually emitted;or hismisrepresentationof the true date of employmentof the

,emptoyeemember r for remittanceo theSSScontributionsess han hose equiredin this Act or for failure to remit any

' contributionsdue prior to the date ofcontingencY.

Note: The right of the emPloYee..toinstitute he netessaryactionagainst he

' emplover ho refuses rneglectso remlt

Ioriiti6rtion"may be commenced ithin20 years rom he time hedelinquencys

knownor theassessments madeby the

SSS,or from he ime hebenefit ccrues'as the case may be' The prescripttve

oeriod does not commencewhen the

obligationo pay the premiums ccrues

(Lo v. cA [1e9e]).

Settlementof DisPutes Sec'5)

JurisdictionSocialSecurity ommlsston'

Cases Coverd: Any disputearisingunder

thisActwith resPecto: (CBCPA)

1. Qoverage;2. Qenefits;3. 9ontributions;4. Penalty;And5. AnYmatters elafedhereto'

Procedure,i

'-F;l;;. determination no settlement.of

oi=bii"" shall be governed.bYle ru]::

anO regulations romulgated y,tne

commission;2. Shallbe eard Y:

a. Thecommission;b. AnYof tsmembers;r

;. Helringofficers ulyauthorizedy he

commission;3. Snatt-Oeecidedwithin wenty 20).days

afterhesubmissionf evidence;no

4. sn"if-0" nna andexecutoryf no.appeal

within fifteen{15)days from nottceor

judgment.

A

7.N o eN o l

staythe



LABOR AW

SOCIALEGISLATION

COVERAGEMembership n the GSIS shall be compulsoryfor all employees eceiving ompensation hohave not reached the compulsory etirementage irrespective f employment tatus.

Excegtions to the Compulsory Coverage(APC')o Members of the Armed Forces of the

PhillppinesAFp),subject o the condition

that they must setfle first their financialobligationwith the GStS.r Members f the philippineNational oiice

(PNP), subject to the condition hat thevmust setfle flrst their financial obligationwith he GStS.

o Gontractualswho have no employerand. employee relationshipwith the agenciestheyserve;and

. PurelyCasualemployees.

Note: All membersof the GSIS shall have ifeinsurance, retirement, and all other socialsecurity protections such as disability,surviv.orship, eparation, and unemploymenibenefits.

Exception: Members of the Judiciary andConstitutional Cornmissionsshall have lifeinsurance nly.

Computation of Service

Computed from the date of originalappointmenUelection,including periodj ofservice at different times undei one or moreemployers, hose performedoverseas underth€,authority f the Republicof the philippines,and those that may be prescribeOby tneGSIS.

All servicecredited or retirement, esignationor separation or which corresponding enefitshave been awarded shall be'excluO-eJn ine

comp"utation oJ servicq in case ofreinstatementin'the servici of an employerand

. subsequent retirement or separationwhich s.compensable nder his Act.

*Effectof Separation from Service (Sec_ ) -The membershall continueo be

"'ru*06r,nd entitled to whatever benefits he hasqualified to in the event of any contingencycompensableunderthis Act.

DEFINITION F TERMSEmployer - The national government, itspolitical subdivisions,branchds,agencies or

rnstrumentalities ncluding GOCCs andfinancial nstitutionswith originalcharters, hdConstitutional ommissions nd the Judiciary.

Employee/ Member - Any person receivingcompensation while in the service of anemployer,whetherby elecdion r appointment,irrespectiveof the status of appointment,includingbarangayandSanggunian fficials.

Dependents(SCP)1. The legitimate Spouse dependent for

supportupon he membq;or pensioner,2. The egitimate,egitimated,egally dopted

Child, ncludinghe il legitimate hildwhois:a. Unmarried, otgainfullyemployed,not

over he age,of:majority; Rb. ls over the age of majority but

incapacitated and incapable of self-support due to a mental or physicaldefect acquired prior to age ofmajority;

3. Parentsdependentupon the member for* suppo.rt.

Primary Beneficiary- The legal dependentSpouse untll he/she remarries and thedependent hildren.

Secondary Beneficiary - The dependentParentsand, subject o the restrictions n thedependent children, the legitimateDescendants,

Compensation - The basio pay or salary

received by an employee, pursuant to hiselection/appointment, xcluding per diems,bonuses,overtimepay, honoraria,alloruancesand anyotheremoluments eceived n additionto the basicpay which are not integrated nto

mentionedn



Sen Fela €olteged1e


Temporary Total Disabililt - Accrues orariseswhen mpaired hysical nd/ormentalfacultiescan be rehabilitated ncUorestoredto theirnormalundiors

Permanent Partial Dis$ility - Accruesorarises pon he rrewcablecs or impairmentof certainportiorVsf the physicalaculties,despitewhich hemembers able o pursuegainful ccupation.

BENEFITS

GeneralRule:All members f the GSISshallhave ife insurance,etirement,nd all othersocialsecurityprotecdionsuch as disability,survivorship,eparation, nd unemployment'benetits.

Exception:Members f the Judiciary nd heConstitutional ommissionshall be entitledonly o life nsurance enefrts.

A. MonthlyPensions Sec.9)

1. 37.5o/oof the re-valuedaverage. monthlyompensation;lus2, 2.5o/oof said re-valued average

monthly ompensationor eachyearof service n 'excessof 15 YearsPROVIDEDhat the basic monthlYpension hallnot exceed90% of theaveragemonthlyompensation.

3. The basic monthlypensionmaYbeadjusted pon he recommendationfthe PresidentndGeneralManager f

the GSIS and approved bY thePresident of the PhiliPPines naccordancewith the rules andregulationsrescribedy heGSIS;

PROVIDED:a. The basicmonthlypension hall

notbe ess hanP1,300.00 ndb. The basic monthlYPension or

thosewho have rendered t least20 years of service after the

' : effectivity f this Act shall not be' ;'tu)i:i,.,ffi$l,i?4,{180-99yonthr'B. Separation enefits Sec.11)

1. Cashpayment quivalento 100%of. theaveragemonthly ompensationor

each year of service he Paidmntributions, but not less thanPl2,000;

c. Has rendered t leasl three (3)

Yearsbut less than fifteen(15)

Years fservice. R

2. Cashpayment quivalento eighteen(18) imeshis basicmonthly ension

at the time of resignationor

separation, lus an ol6-agepenslon

benefitequal to the basic monthlYpension.

Conditions:a. PaYablemontlf,Y Ponreaching

theageof sixtY60)Years;b. He has resignedor separatecl

fromservice;ndc. Hasrendered t least ifteen 15)

Years fservice.

Note:A member eParatedromthe

service hall ontinueo bea member,and shall be entitled o whateverbenefitshe has qualified o in the

event of any contingency

comPensablenderhisAct

C. UnemPloYment or lnvoluntarYSeparationBenefits Sec' 12)Monthly ashpayments f equivalento

50% of the average monthlY

comPensation.

Conditions:1. Employees separatedrom -service

due to the abolition f his officeor

position usuallY resulting fromreorganization;nd

2. He has been PaYing integratedcontributionsor at least1 yearprior o

seParation..

D. Retirement enefits Sec.13)

Conditions:'a, "Payapleupon reaching he age ofsixty (60) years;

b. He has resighed or separated



LABORLAW

SOCIAL EGISLATION

lf he is in serviceand has paid atotal of at least 180 monthlycontributions, e shall

receiveanadditional cash payment of 1gtimes his basic monthly pension;andMember cairnot enjoy monthlyIncome benefit and the old-ageretirement imultaneouslv.

2. Cash paymentequivalent o 100% ofhis avera(;emonthlycompensationoreach

year of service but not lesS hanP12,000.

.-:".,,,,,, . Spg-cificConditions\ . , ,a..Member does not satisfv the

conditions under the precedingnumber;and

b. Has rendered at least 3 years ofseMce at the time of Cisanitity.

Note: Retirement is compulsory uponreaching65 yearsof age with at least 15years of service.BUT if he has renderedless

than 15 yearsof service,he may beallowed o completehe said period.

E. Permanent Total Disability Benefits(Secs. 1*16)

GeneralConditions:Employeesuffersdisabilitynot due to his:(MisNlK)a. Gravemisconduct,b. Notoriousgegligence;

c. Habitualntoxication; ndd. Willful intention to kill himself oranother.

1. Monthly ncomebenefit or life eoual othe basicmonthlypension.

Specific Gonditions:a. Effective from the date of

disabitity;b. He is in service at the time of

disabitity;c. lf he is separated rom service, he

has paid at least 36 monthlvcontributionswithin the S-vearperiod immediately precedingdisability, r has paid a total of atIeast 180 monthly contrlbutionsprior o the disability;

Suspensionof Disability Benefits1. He s re-employed;2. He recovers romdisability; r

3. He failed to present himself formedical examinationwhen requiredby he GSIS.

F. Temporary Total Disability Benefits(sec.18J75o/o f the currentdaily compensationoreach day or fraction hereof of temporarydisability.

Conditions:d(

1. Such benefit shall not exceed 120days n one calendaryear.

2. Employeehas exhaustedall his sickleavecre,jits and cq{eeJiye,Qargainingagreementsick leave benefits;

3. He is in service at the time of hisdisability; r

4. lf separateC, e has ;enderedat least3 years'ofserviceand paid at least6monthlycontributionsn the 12-monthperiod immediately preceding thedisdbility;

5. Membercannotenjoy temporary otaldisabilitybenefit and sick leave paysimultaneously;

6. lf the disability requires moreextensive reatment that lasts beyond120 days, the payment of thetemporary otal disabilitybenefit maybe extendedby the GSIS but not toexceeda total of 240 days; and

7. Such benefit shall not be less thanP70a day.

G. Survivorship Benefits (Sec.20)When a member or pensionerdies,beneficiaries shall be entifledsuwivorship enefits:

trdRffidts€

heyearsof

of his death

e. theto

is



Sun FebsGotlege f Agto


within tte $year periodimmediatdy preceding his death;ot:

c. lf separatedfrom service, he hasPaida total of at least180 monthlYcontribx.rtions rior to his death.OR

2. Survivorship Pension plus cashpayment equinalent o 100% of his

average monthly compensation foreveryyear of service.

Conditions:

a. Employee was in service at thetime of death: and

b. Has rendered at least three yearsof serviceOR , 'i:--::

3. Cash p-yment equivalent o 100% ofhis averagemonthlycompensationoreach year of seMce he paidcontributions, hJt not less thanP12,000.

Conditions:.a. Employeehas renderedat least 3

yearsof serviceprior o his death;but

b. He failed to qualifyunder items 1and 2 mentionedabove.

Note: The survivorship ensionshall be paidas follows:o When the dependentspouse is the only

survivor. he/she shall receive the basic

survivorship ension or life or until he/sheremarries;

. When only dependent children are thesurvivors, they shall be entitted to thebasicsurvivorship ensionas long as theyare qualified, plus the dependentchildren's pension equivalent o 10% ofthe basic monthly pension for everydependentchild not exceeding5, countedfrom the youngest and withoutsubstitution,

r . When the survivors are the dependent- ..,,jspougd'iiiio'tne'cede'naentctrltitien,''the' :''dependent

spouse hall eceivehe basicsurvivorshipensionor lifeor untilhe/sheremarries,and the dependentchildrenshall receive he dependentchildrenpensionmentionedn the. immediatelypreceding aragraph hereof.

lf there are no primary beneficiaries,secondary eneficiariesre'entitledo:

r Cashpayment quivalento 100%of hisaverage monthlycompensationor eachyearof sbMce he paid contributions, nt

not less hanP12,000PROVIDEDhat the

memberwas in service at the time of his

deathand has renderedat least3 yearsof

service;ando ln the absenceof secondarybeneficiaries,

such benefitsshall be paid to his legal

heirs.r For purposesof the survivorship enefits'

legit imateclt i ldrenshall include legally

adoptedand legitimated hildren.

H. Funeral Benefits (Sec.23)

In an amount lxed by the GSIS rulesand

regulationsbut should not be less than

P12,000, to be increased to at least18,000 after 5 Years, PaYableuPon the

deathot1. An activemember;or

2. A memberwho has been seParated

from the service, but who may be

entitled o futurebenefit;or

3. A pensioner; r4. A retiree who at the time of his

retirementwas f pensionable ge'

tl lite insurance Benefits lsec- 24)Compulsoryupon all employees except

membersof the AFPand the PNP.

J. LoanGrants*. so)GSIS undsmaYbe invested:

1. In direct housing oans to members

and group housing projects securecl

by first mortgage,givingpriority o the

low ncomegrouPs;and

2. ln short and medium-term oans to

members such as salary, PolicY,educational, emergency stock

purchaseplanand othersimilar oans'

Adjudication of Claimsand Disputes

Ju

GSISJURI

1997the

. APPeal



LABOR AW

SOCIALEGISLATION

. Appealshall not staythe executionof theorder or award unless ordered by theBoard,by the Court of Appeals,or.5y tn"SupremeCourt;ano

o Appeal shall be without prejudice o thespecial civil action of certiorari whenproper.

Execution (Sec.32). Any decisionor awardshallbe executed n

the samemanner s in he RTC,o The Boardhas the power to issueto the

city9r provincialsheriff or its appoinieO

sheriff writs of execution iortheenforcement f suchdecisionor award.

. Any personwho failsor refuses o comolvafter being equired o do so sn"ri-u6iappticationby the GS|S, Oe punisneJ-toicontempt.

Exemption from Tax, Legal process andLien

]h9,GS.IS, ts assets, revenuesand benefits

paid shall be exempt from"ff

-i"*"",

assessments, ees, charges or duties of at lkinds.

imprisonment rperpetuas mposed;

death or reclusion

\ . .' i i . . ^ i

*{}i;.Ltr {S'ff1*$ i"-;AW

752



Sen SeM GoUegef [nlo


SOCIALSECURITYACT ANdGOVERNMENTSERVICE NSURANCESYSTEMACT

1. Employer' Ndional overnment'ts

potiiicai subdivbiors, branches,

Loencies or instrumentalities,influding government-owned r

controlledorporations ith original

charters.EmploYee- AnY Person ecevlng

compensationhile n heserv'pe.ol

an emploYer as defined herein'

whether by election or apPointment'

including barallgaY and

officials.

his orders as regard theEXCEPT HOSEUNDER HEGS. Employee - AnY Personwho

servicesfor an emPloyerwhocompensation for such servlces,

there'E

an employer

relationship.3. Self4.mlpoyed - considered as both

1. Employer Anyperson,whocarneson In

the Philippinesany trade, business,

industry, undertaking, and usesservicesof anotherPersonwho b

1. Legalspouse entitled or suppo(

2. Cnid,'whether.

legitimate, legitimated,

legaltyadopted oi ineditimate;and3. Paents deoendentfor suPPort

1. Unmanied;2. Not gainfultYemPloYed;

1. Notoverageof majoriV; r1. Hasnotreached1Yearsof ge;or

CbmpulsoryAllemployeeseceivingompensation*ht d"i not reacfredhe comPulsory

retirement age, inesPective of

.physically r mentally rior o 2'l yearsofor majority ge,as he casemaYbe.

1. Incapable f supporting irneelf

t Members fAFPandPNP;

2. Contr*tual emPloYees, who have

no emploYer-employeeelatiot

with he agencYheY erve;and

. Members. of Judiciary ancl

Constitutional Commission, who

shall be covered onlY bY life

insuranceoverage.. PurelYasualemPloYees.

1. Employmenturelycasualand not orpurposeof occupation r businessofemployer;

2. Services performed on or in connection

with an alienvessel by an employee f he

employedwhensuchvessel s outsidePhilippines;

3. Serviceperformed n the employofPhilippinegovemment,nstrumentalityagency hereof;

. Service performed in the employ offoreign governmem,organization, or lheirinstrumentality;nd

5. Services performed bYemployees, which may be excluded

regulat'rionf the Commission.

All acfrral . emuneration forincluding the mandated

as well. 6 the cash value

ationpaidtin any.medtum

iash excefr thatpart

of theexcess rfhe maximum alary redit

1. Employer'scontributionon hisceases:

. Employee'sobligation o contributeceases at the end

-ofthe mon

separation;and3. Employee'shalf be credited with

contibutions paid on his behatfentitled to beneftts according toprwisionsof thisAct.

Note: He may continue o pay thecontbutions to maintain his rigttt to

' bbneft



LABOR AW

SOCIAL EGISLATION

EmployerReport immediately o SSS theinformationon all his covered employees:1. Names:

3. Civil tatus;4. Occupations;5. Salaries: nd

Self{mployedReport o SSSwithin hirty(30) days tomfirst dayof his operationhe ollowing:1. Name:

2. Age;3. Civil tatus;. Occupation;, Averagemonthly et ncome; nd

to GSIS the followingall his covered employees:

Salaries;nd5. Such other matterdeterminedy heGSIS

. Rertirementenefits:

. Permanentisability enefrts;

1. Sickness enefrts:2. Maternityeavebenefits; nd3. Dependents'ension.

1.Temporary isability enefrts;2. Separationenefits;3. UnemploymenUinvoluntar

separation enefits;4. Survivorshipenefits; nd5. Life nsurance enefrts.

', assets,andrevenue of the GSISand SSSare all exempt rom axes,and allpaidby SSSor GSISshall ikewise e exempt romtaxes,assessments,ees,and duties of all kind.

1. Coverage;2. Benefits:3. Contibutiors:

5. Anymaters elatedhereto.

SocialSeorrityCommission

Mandatory-periodf twenty(20)submbs'ronf evidence

- Que$ions of law and facts (Rule- Questionsf lawonly Rule45)

DisputeArising From:disputearising under his Act andlaws administeredby the GSIS.

**Lffi{S.tr S"|*AW

10 YEARSfrom the time the right of

Employer'sontributions;ndEmployee's/Member'sontributions



5sn FeUa€ollegeof fstn


An Act institutingLtmrtedPortability Scheme nthe Social Seanrity lnsr.tnnce Systerns by

TOTALIZING THE WI3.RKERS'CREDITABLESERY/CES OR COA/TRIEUIIOA/SN EACH OF

IHE SYSTEMS.

Policy of the StaE: (PtT)

1. lromotion of workers' welfare by realizing

their efforts n productiveendeavors;2, lmprovement of workers' conditions by

providingbeneftts for their long years of

contributiono nationaleconomy;ancl3. Totalization nd portatrility f socialsecurity

benefits with the vierryof establishingwithin,a reasoneble erioda unitarysocial securitysystem.

Note: lt includes contributions paid by theemployee or worker on account of the worker's

membership to the system, either theGovernmentSeMce InsuranceSystem (GSIS)

or the SocialSecuritySystem SSS). r

Totalization - refers o the processof addingup the periods of . creditable services orcontributionsunder each of the systems, forpurposes of eligibility and corhputation of

benefits.

Portability - refers o the transfer of funds for

the account and beneflt of a worker whotransfers rom one system to the other.

Who are the covered workers? (TE)'1.

Those who fransfer employment rompublic

to privatesector or vice-versa;or2. f,mployed in both privateor prublic ectors

The creditable services or contributions inboth systems shall be:1. Creditedto heirserviceor contributionecordin each of the systems;and be2. Totdized for purposes of old-age, disability,$urvivorshipand other benefits in case thecovergd membe.rdoes,not qualify for SSS orGSIS'benefits'in ither or both systemswithout

totalization.

Note: In case of overlapping periods ofmembership,t shall be creditedonly ONCE forpurposesof totalization

ProportionalitY of Benef ts :Benefits to be paid by the system shall be inproportion. to the number of contributions

ACTUALLYREMITTED o that sYstem.

Note: Atl cohtributions paid by such member

personally, and those that were paid by his

employers o both systems (SSS and GSIS)

shallbe consideredn the processing f benefits

whichhe can claim romeitheror bothsystems'

Policy of the State:Promotion of a tax-exempt employees'

compensation rogramwherebyemployeesand

their dependents, in the event of work-

connecled disability or Qpath, may promptly

secure adequate incomel medical or related

benefits.

Primary purPose:

+o proviOe ompensationor disabilityor death

resulting rom occupationalnjuriesor diseases'

or accidientalnjury o, or deathof, employees' t

is for the Oenetitof injured employeesand not

for the injuredemPloYers.

Workmen's ComPensation and State

lnsurance Fund (SlF)

Workmen'sCompensation - genbral term

applied to those laws providing for

compensation rom loss resulting from injury'

disahement, or death of workmen through

industrial accident, casualty or disease' The

amount of compensation is generally

determined in accordance with a definite

schedule,basedupon the LOSS OF EARNING

POWER.

Two classes of source of compensation:

1. Direct Payment Statr.rtes - payment of

compensationby the employer directly tothe emPloYee

2. lnsurance-Statutes (SlF) - require the

emplover o take out insurancebureau

operated by the state or with private

type.t o aequicreditpayState

1. Builtbased

2 . C

oyees.bompensation

not required.

company

orfr&rffi#ffir$ation

' b yt h e

155



LABORLAW

SOCIALEGISLATION

Opposition by the employers s likewisediscarded.

3.lresumption

of compensabilityn favor ofthe workmen is abolished.EXCEPT n thecase of policemen and members of theAFP, the presumption arises from thenature of their work provided thatevidentiarydetails of injury or death arecfearlyestablished.Quebecv. GS/S)

4. Ruleon gggravation f illness s removed.5. Employers'gluty is only to pay the regular

monthly remiumso the scheme.6. Emplclyees' Compensation Commission

(ECC)settles the claim from fund towhether or not compensationmay be paid

under ts exclusive ontrol.

EMPLOYEES'COMPENSATIONCOMMISSION

A. Structure:1. Chairman DOLESecretary)2. Ex-Officio Members (SSS Adminislrator,

GSIS President,ECC ExecutiveDirector,

MedicareChairman)

B. Thrust of ECC Program:1. PreventiveThrust.- o minimizeand control

hazards n the workingenvironment.2. Compensative Thrust - ECC through SSS

and GSIS pays benefitso the workerswhosufferwork-conqectedonti gencies.

3. Curative Thrust - treats the sickness orinjury hat a workermaysuffer.

Compulsory Coverageupon:1. Allemployers;2. Theiremployeesnot over60 yearsold;or3. Employeesover 60 years old and paying

contributions: nd4. Filipino employees employed abroad

subject o prescribedECC regulations

Covered Employees:1. Personscompulsorily overedby GSIS or

SSSi

2. Those employed as casual\ emergency\r' : I ;' tempofiry;:r,,,', ubgtitute)* or . .,,qontrac{ualemployees;and

3. fiiembers oiine A-FF.

Qualified Dependents.:1. Legitimate, egitimated, egally adopted or

acknowledgednatural chib who isa. Unmanied,b. Notgainfully mployed; ndc. Not over21 yearsold or

d. Qver 21 years old provided that he isincapacitated and incapable of self-

' s{rpport due to a physical or mental

2. Legitimatepouseivingwith he employee,and

3. Parentsof said employeewhollydependentupon him or regular upport.

Qualified Beneficiaries1. Primary

a. Dependent spouse until heremarries; nd

b. Dependent hildrenc. Dependent acknowledged natural

child onlv when there are noother deoendeni childfen who arequalified and eligible or monthlyincome benefit.

2. Secondarya. Dependentparents;

b. lllegitimate childrenandc. Legitimate descendants ubject to the

restrictions imposed on dependentchildren

Liability of Third PartiesWhen the disability or death is caused by

circmri'stanceSreatinga legal iabilityagainstathird party, the disabled employee or thedependentsn case of his deathshall be paid.

The system shall be subrogatedo the rights ofthe disabled employee or the dependents ncaseof hisdeath as against hirdpady.

Note: Where the system recovers rom suchthird partydamages n excessof those paid oralloned under this Title, such excess shall bedelivered to the disabled employee or other

personsentitledhereto,afterdeducting he costof proceedings nd expensesof the system.

Coverageof Compensability: (ISDD)1. lnjury2. $ickness3. Qisability4. Death



5ffi SeDs @ollegeof {.eto

2011 CENTRALIZED AROPERATIONS

Injury - any harmful change in the human

organism rom any accident1. Arisingout of, and

2. In the courseof emSoyment.

"Arisingout of refersto the origin or cause of

the accident.ln the @ursr- of Employment"

refersto injurythat takes placewithin the period

of employment, at the place where the

employee reasonably may be, and while is

fulfllling his dr.rtiesor is engaged in doing

something incidental hereto. (llcilo Dock and

EngineeringCo. v. WCC, et al. GR no L-26341

November27, 1968)

Note: Employmentndudes not only the actual

doing of the worl( btrt also a reasonablemargin

of time and space necessary to be used in

passing o and from the placewhere the work is

to be done, where the latter is expressly,or

impliedlyncluded n the terms of employment.

RELEVANT DOCTRTNES1. Proximate Cause Doctrine

Proximateegalcause s one acting irstand

producing he injuryeither immediatelyor

by settingothers n motion.They constitute

a natural and continuouschain of events,

each havinga close casualconnectlonwith

its immediatePredecessor.

Where Primary injury is shown to have

arisen n the course of employment,every

natural consequence hat flows from the

injury ikewisearisesout of the employment'

unless it is the reSult of an independent'- interveningcause attributable o claimant's

own negligence or misconduct. (Belarminov. Employees''Compensation Qommission,

GR no. 90104,MaY 11, 1994)

GeneralRule: Proximatecauseresulting o

injury is an injury arising out of the

emPloYment.

Exception: When independent ntervening

cause ensues attributable to claimant's

' , . l ' ,? .u t , r . . . . . , . - . ;1; , , \ ; ; :€ i . . i r1r . . , : .s i i . .

2. 24.Hours DutY DoctrineGeneral Rule: Soldiers, policemen and

firemen by the nature of their work may be,

c.onsidered on duty round-the-clock. lt

relaxes the workplace tador but still

requires work-connectian. (Hinoguin v.

ECC, GR no. il40, APril17, 1989)

Exception: Moonligfrting here the injury s

not work-connected.

Notq The Z4-hourdufy doctrine should notbe sweepingly applied {o all

.acts and

circumstancesausinghedeathof a police

officer utonly o thosewhich,although ot

on official ine of duty, are nonetheless

basically olice ervicen character'GS/Sv. Atlegre, Rno. 128524,April 0, 1999)

3. DirectPremisesDoctrineGeneral Rule: Accident should have

occurred at the Place of work to be

compensable.

ExcePtions:Wnen njurysCOMPESSABLEvenwhen

it did NOT occur at the Placeol worK

(Going to, Comingfrom/ lngress' Egress

Rule) (PPENSS)^, f*t't" - PremisesRule - where the='='ernployetis roceedingo or fromhis

woit< n hepremisesf hisernploye6.b. froximity Rule - where employees

l-Oouto enteror leave he premises f

hisemployerywayof theexclusiver

customary means of ingress and

egress;itoiloOocX& Engineein?co^Y

tricc; aR no' L-26341'November27'

loaeYc. Speiiat work-relatedrrand [ule. ..-

where he employees chargedwhile

on his waY to or from his Placeot

emPloYmentr at his homeor during

his' emPloYment ith some duty .orspecial

'eirand connectedwith ^his

uiiPfoYt"nt (Enaov' ECC' 135SCRA

t57



LABORLAW

SOCIALEGISLATION

e. Shuttle Bus Doctrine - where theemptoyer,as incident to employmentprovides he meansof transportationoandfrom place

of employment.f. Special Engagement Rule - whereemployee s injuredwhile at recreationduring a temporarycessationof work,atso clvers fleld trips, intramurals,outingswhen initiatedor sponsoredbyemptoyer.

Test Whether the recreationwas forthe employee's exctusive benefit orwhether the employer had someinterestn the

activity.Note: In the absence of specialcircumstancesenumerated_bove, anemployeenjured n,going o,'orcomingfrom, his place of work is NOTCOMPENSABLE.

4. Incidents of Employment DoctrineActs which are reasonablyncidental o theemploymentare deemedarisingout of suchemptoyment, thus

COMPENSABLE.(MCBEG)a. Acts of personalMinistration;b. Slight deviation from work from

Curiosity;

9 Acts for the Benefit of the employer;d. Acts n fmergencies,e. Acts done to. urther he Goodwillof the

business;

Acts of Ministration (M)Injuriesduring an intermission

or break forrest or refreshment arises in the course ofthe employment.re compensable.

a. S/eeping

c. Union MeetingInjury receivedat union meeting is NOTcompensable,not an injury arising out of

and n the courseof employment.

Acts for the Benefit of Employer (B)Injury arising out of and in the course of hisemployment is compensable becauseemployee'sact enhances the prestigeof theemployerand results n increasedpatronageofthe serviceof his employer.(Versozav. Vda.Dela Cruz, GR no. L-7305,December 1953)

Doing Work at Home'r t

Compensablewhen injury is sustained fromwork at homedone pursuant o the terms of thecontract,expressor implied,or pursuanto thedirectionor requestof the emptoyer,EXCEPTwhen work at home is done voluntarilyby theemployee or his own convenience.

Acts during Emergency(E)Injurysustainedwhile doing an act outside hescope of his usual duties where such act wasreasonably necessary or incidental to his

regular wor( particularly if an emergencyexisted, and although no emergency orreasonable necessity existed calling for {heperformanceof such act, workman is alloryedcompensationf it was done in the furtheranceof the employer'sbusinessor pursuant o habitor custom.

5. Dual Purpose and Mingling of PurposesDoctrineCompensable when injury is sustained

while on a trip undertaken or the benefitofthe employereven in the course hereof heemployeepursuesalsoa personalpurpose.

Test lf the work of the employee ends tocreate necessity for travel, employee isdeemed n the courseof employment, lbeit

t ime some

Rlsksof hisbe at

andone

thereof his

arising ut

Ilr.e fagt that an employee nintentionallyfallsasleepwhilehe is resting t a propertimeandplace oesnotnecessarilyepiivellim of the right to compensationoi aninjury eceived hileso sleeping, XCEPTwhen his dutiesare of such natureas torequire im o remain wake,

s n hecase' o f a w a t c - h m a n ., : , , \ . _ : , , , ' .

O. uncn -:

Compensablehen injuryorcunedduringlunchperiodwhere he eatingof the luncion employeis premiseswas with theemployeis knowldge and consent.express r implied, XCEPT hen t resultfrory an independent ct of the employeehayngnoconneclion ithhisworkoi meal,or f theemployeet the imewas na placewherehe hadno right o oe. emof

Maj$ffi{ ffiffi*e

injured.rs so



$en @ebs@ollege f [.sb


7. AssaultCompensable f assault against employee

arising out of the employment, althoughresulting rom a deliberate ct of the slayer,is considered an accident or unforeseeninjury and act of which the injured party is

not legally esponsible.

8. Violation of the RuleGeneral Rule: Ads within the sphere of

employmentbut carried out in violation of

the rulesare compensable here: (CSl)

a. Violationof the rule itself did nof bringabout he gauseof the accident;

b. There is serious doubt that prohibitionwas known to the emPloYee niured;and

c. Violationwas not ntentionaland due to

negligence r carelessness.

Exception: Not compensable hen injury s

caused by: (WlN-Law)a. Willful ntentiono injureor kill himself

or another;b. lntoxication y emPloYee;c.

lotoriousnegligence;d. Otherwise excluded from coverage ofLaw.

B. SICKNESS ANDDISEASE

OCCUPATIONAL

Sickness - any llnessdefinitelyacceptedas:

1. OCCUPATIONALDISEASE listed by the

Commission, r2. CAUSED BY EMPLOYMENT, subject to

proof that the risk of contracting the same isincreasedby wqrking conditions.

Theory of Increased Risks - if the ailment s

not included n the listof occupational iseases,

the claimanthas the burdenof proving hat the

nature of the work increased the risk of

contracting the disease. The degree of proof

required s merelysubstantialevidence.

.C: qtSABtUTtf ;.: ';'r,i''::"-' l f ''',''' 11'.,.'r'1t'.11ri";1t;,'

There is disability when there is a loss ordiminutionof earningpower becauseof actual

absence from work due to the injury or illness

arising out of anb in the course of business.

Basis is the REDUCTION OF EARNING

POWER.

Categoriesof Disabil ty:1. Temporary Total DisabilitY

As a result of injury or sickness; theemployee s unable o perform any gainful

occupationfor a continuous period NOT

EXCEEDING120 DAYS.

Amount of Benefits:lncome benefit equivalent to 90% of hjs

average daily salary credit subject to

following:a. genefit shall not be less than P 10 or

more than P 2OO,nor Paid lower than

120 daYs UNLESS injury or sickness

requiresmore extensive reatment hat

lasis beyond120days not exceeding

240 daYs romthe onset oI

disabiliiY,n which casehe shall

be Paidbenefit or temPorary totll

disabilityduringex'tbnded eriod'(Pl9 -

P200P6rdaY,maximum 120 days)

b. Benefitshall be suspended f emfloyeefailed to submit monthlymedical repart

certifiedbYattending PhYsioan'

Note: Relapse after recovery from illness

shall be considered ndependentol ?Mseparate from the period covere{ OV.tfe

originaldisability.Such period shallnot be

adled to the original disahility period'

Where -after period of temporary total

disability had ceased, he is found to.be

sufferinil from a permanent partlal

disability,he shall be entitled o an a\Marcbaseduponpermanentpartialdisability'

2. PermanentTotal DisabilitY

As a result of the injury or sickness.the

emptoyee s unable to perform any gainful

o"Jup"tion for a continuous period

EXCEEDING 12O DAYS' excePt as

otherwiseprovidedby commission;or any

of the folloring:a. Complete oss of sight of both eyes; . ,

b. Loss of twolimbsat or above he anKle

or wrist:c. Permanent complete paralysis of two

d.

limbs;Brain injuryimbecilitYrSuch

resulting in incurable

the

1s9



LABORLAW

SOCIAL EGISLATION

Loss of workor inabilitvto perform usualwork

Loss of the use of anvparticular anatomicalPgrtof his body

2. Permanent otalDisabil ity3. Permanent artialDisabiitv4. Death

C. FuneralBeneflts

EXCLUSION FROM EMPLOYEES,COMPENSATTON:

This act does not cover disability or deathoccasioned y the employee,s:WN_Law)

1. [illful intention o injure or kil himsetforanother

D.DEATH

Death lossof ife esultingrom njury rsickness.

DeathBenefitsPaid n he ormof cashmonthly ension:1. For life to the primary'Oenenciaries,^ guaranteedor5 years;

2. Fornot more han60 monthso secondarybeneficiaries:3. Totalbenefltshalioeat teast 15.000.

Beneficiaries:1. Primary eneficiaries:

3Dependentpouse ntil emarries;

b. Dependent children (legitimate,tegitimated, natural borri,

-Ieg;it

adopted)2. SecondaryBeneficianes;

3 iltegitimatechitdren;b. Legitimateescendants:c. Parents, randparents/children

Suicide, provokeddeath or attributable o

one's own aggression s not compensable.Suicide s compensable nly when it results

.,._.,, frofi insanity resulting from compensablework injury; or occurs during deliriumresulting romcompensable isease.

2. lntoxicationThere is impairment of judgment, acts,words and conduct; or one is not entirelyhimself.

3. lotorious negligenceIt signifiesa deliberateact of the employeeto disregard his own personal safety.Disobedience o rules or prohibitiondoesnot in itself constitutenotoriousnegligenceif no intention can be attributed- o tfreinjured o end his life. (paez v. CWW GRNo.L-l8438, March 30, 1963)

4, Otherwiseprovidedby Law.

Note: Liabitityof the ECC through SSSiGS|Sshall be exclusive and in place of all otherliabilitiesof the employer o the employee,hisoependents or anyone otherwise entifled toreceivedamageson behalf of the employeeorhisdependents.

. ; . , . . . , : l j r " . r . \ ; - , .

êylt-qte_rs;oru'perusArroNENEF|TSSUMMARIZED:A. SeMces

1. Medical e;vices2. Rehabilitationseryices

a. physicatrehabilitatione.g.physical. therapy)

b. Vocational assessment (e.ovocationalducation)

c. Vocationalplacem6nt (e.g. job

placement)B. Cash ncome enefitsof pensiondue o:1. TemporaryotalDisabitity

Loss of use.of part of the body@artia0

inabilityoperformwork

(totat)

hasforhisthe



Ssn Febs Gollegeof Aarn


3. Only for the first four (4) deliveries oflegitimate spo{rse wrth whom he iscohabiting;and

4. Notifyhis employerof the pregnancyof hislegitimate pouseand tne expecteddate ofsuchdelivery.

Note: "Delivery'shall inor.rdechildbirth r anymiscarriage.PatemrtyLeave Benefitsshall notbe convertibleo cash in case it is not availedof.

COVERAGE1. All employeesn the private ector;?. Part-time mpoyees;3. Employeesof seMce and other job

contractors;rd5. Domesticelpers r personsn he personal

service fanother.

Note:The awdoesnotcover mployeesf:1. Retail, seMce and agricultural

es'tablishmentsr operationsmploying otmorehan en 10) mployees;nd2. Governmentnd its political uMivisions,

includingGOCC's,f they are coveredbythe CivilService awand tsregulations.

WHEN ORETIRE1. Upon reaghing the retirement age

establishedn the CBA or anv otherEmploymentontract.

RetirementBenefits - as he may haveearnedunderexistingawsand any CBAandotheragreements,rovidedhal.a. lt shall not be less than those

prescribed y the Retirement ay Law;and

b. lf suchbenefits re ess, he employershall pay the difference etween heamountdue the under he RetirementPay Law and that provided nder heCBAor retirementlan.

2,:il0 :$e'€b6ence. f rbtiremerfplan';or.:CBAregarding retirement, employee uponreachinghe age of 60 yearsor moreandhas servedat least 5 years n the saidestablishment.Optional etirementi

Retirement enefits equivalento at least- 1n month alaryor every earof service;

fraction of at least 6 months beingconsideredsonewholeyear.

Note: Unless parties provide for broadeiinclusions,he term "1/2 MONTHSALARY"shall mean 15 days+ 2.5 days representing

one-twelfth 1t12)of the 13* monthpay and the

cash equivalentof not more han ive (5) days of

service lncentive leaves,or a total of 2.5 days

for everyyearof service.

3 Upon reachinghe age of 65. (Compulsory

Retirement)

RETIREMENT LAN VIS-A-VISRETIREMENT

PAY LAWA retirementplan in a companypartakesof the

nature of a contract,with the employerand the

employeeas the contractilgparties.R.A. No.7641onlyappliesn a situation here:

At . There is no CBA or other aPPlicable

employment contract providing forretirementenefitsoran employee;r -There is a CBA or other aPPlicableemployment contract providing forretirementenefitsaran employee,ut t isbelow he requii-ementset or by aw.

Even f the company oesnot nclude13'monthpay and service ncentiveeaveas

partbf the salarybase,R.A No.7641doesnot applywhere he employeeeceiveslump sum of 1% month'spay per yearofservice. he company lready rantso itsretiring mployeemore hanwhat he lawgiveswhich is % monthsalary or everyyear of service. (Oxales v. UnitedLaboratories,nc., G.R. No. 152991,July21,2008)

DECLARATIONOF POLICYThe State shall: D2H2)1. Value he Dignityof every ndividual:

2. Enhance the development of its fluman

2.

t :

woRK,

1 .



LABORLAW

SOCIAL EGISLATION

4. fmployer5. Employee,6. leacher;

7. lnstructor;8. lrofessor,9. Coach;10. Trainor; nd11. Any other person who, having guthority,

influenceor gqoralascendancy AlM) overanother.

12. Any personwho glirectsor inducesanotherto commitany act of sexualharassmentasherein defined, or who cooperates n thecomrhission thereof by another, without

which it would not have been committed.shallalsobe held iable nder hisAct.

WHEN Sexual Harassment punishable:. (wET)

1. flork-related;2. lducation-related;and3. fraining-relateo.

WHERE Committed:In a work or trainingor education nvironment.

HOWCommitted:General Rule: Demands, equestsor otherwiserequires any sexual favor from the otherregardlessof whetherthe demand, requestorrequirement or submission s acceptedby theobject of said ac.t.

Specifically:A. In a work-related or emolovment

environment, sexual harassmeni iscommitted

when: (GRIJHO)1. The sexual favor 6 made as agondition:

?. tn thd hiringor in the employment;b. Re-employment or continued

employment f said ndividual; rc. In grantingsaid individualavorable

compensation, terms, conditions,

_ promotionsor privileges.2. The gefusal to grant thl sexual favor

B. ln an education or training environm6nt,sexual harassment is committed: (CEC-rHo)

1. Against one who is under the Gare,custodyor supervision f the offender;

2. Againstone whqse ducation, training,apprenticeship r tutorship s entrustedto the offender;

3. When the sexual favor is made aConditionto the giving of a passinggrade, or the granting of honors andscholarships,or the payment of astipend, allowancd or*other benefits,privileges r consideratidns;nd

4. When the sexual advances esult n anlntimidating, lostile or QffensiveenMronment or the result, trainee orapprentice lHO).

Duty of the Employer or Head of Office in aWork-Related, Education. or TrainingEnvironment (Pre-Pro2Com-Ois)It is the dutyof the employeror headof office na work-related,education r trainingenvirqlnment:

1. To prevdntor deter the commissionof actsof sexualharassment;2. To gide the procedures for the

resolution, ettlementor prosecution f actsof sexualharassment:

3. Promulgate appropriate rules andregulationsn consultationwith and jointlyapprovedby the employeesor studentsortrainee, through their duly designatedrepresentatives, rescribing he procedurefor the investigation f sexual harassment

cases and the administrativesanctionstherefonCreate a ggmittee on decorum andinvestigation of cases on sexualharassmento-increase nderstandingndpreventncidents f sexualharassment;ndThe employeror head of office,educational

Slt*'t ##$&

orhead of

IS

4.

orof

er tlposta l lq

results. in limiting, segregatingor

.crassttytnghe empJoyeehich n anviray i would disbrimliiat'e;deprive ;idiminishemployment pportuhities rotherwise adversely affect saidemployee;The above acts would lmpair theemployee'sightsand privilegesnderexlstingabor aws;andThe above acts would result in anlntimidating, flostile or effensiveenvlronmentor heemployeelHO).

2

4.

Sha

partyand



5er $e e Goll.egef Leb


Independent Action for DarnagesNothing n this Act shall preclude he victim ofwork, education or training-+elated sexualharassmentfrom inditutrg a separate andindependentaction for damages and otheraffirmativeelief.

PenaltiesAny personwho violates he provisionsof thisAct shall, upon corviction, be penalized byimprisonment f not less han 1 month nor morethan 6 months, or a fine of not less thanP10,000nor more than P20,000,or both suchfine and imprisonmentat the discretionof the

coun.

PrescriptionAny action arising from the violation of theprovisions of this Act shall prescribe in 3YEARS.

POLTCYPSR)It is hereby declared o be the policy of the stateto:

1. Provide special lrotection to childrenfrom all forms of abuse, neglect, cruelty,exploitationand discrimination and otherconditionsprejudicial o their developmentincluding hild aborand its worst forms;2. Provideganc-tionsor their commissionand carry out a program or preventionanddeterrence of and crisis intervention insituationsof child abuse, exploitationanddiscrimination:nd

3. Protect and Rehabilitate childrengravely threatened or endangered bycircumstances which affect or will affecttheir suMval and normaldevelopmentandoverwhich hey have no control.

DEFINIT|ONOF TERI,/ISD.O.6&U)

Child - Any personunder 18yearsof age.

Child Labor - Any wo-rkor economic activityperformedy a cfiito lat'subjd&shirh/iier6

'-

any drmof exploitationr is harmfulo his/herhealth and safety or physical, mental orpsychosocial evelopment.

Working ChildAworking child is:1. A childwho is below eighteen 18) yearsof

age, and is engaged n a work or economicactivity that does not constitute child laboras defined in the immediatelyprecedingsub-paragraph, nd

2. A child below ifteen 15) yearsof age:

a. Who is engaged n a workwherehe/she

is directly under the responsibilityof

his/her parents or legal guardian and

where onlY members of the child'sfamilYare emPloYed; r

b. Whose ParticiPation in Publicentertainment or information is

essential.

Collective Needs of the FamilY

Such basic needs as food, shelter' light and

water, clothing, education, medical,

transportation and cither4.expenditure tems

necessary or the survivalbf the family of the

child.

Work PermitThe permit securedby the employer,parent or'

guardian rom the DOLE for any childbelory15

years of age in any work alloryedunder R'A'

9231

Alternative Learning SYstem

A parallel and comparable learning

rarhich provides a viable altemative

existing ormaleducation ystem.

Forced Labor and SlaverY

Generalof age

Exceptions:1. \Men a

systemto the

The extraction of work or seryices from any

person by means of enticement, violence,

intimidationor threat, use of force or coerclon,

including deprivation of freedom, abuse of

authorityor moralascendancy, ebt bondageor

deceotion.

Normal DeveloPmentof the Child

The physical, emotional, mental, and spiritual

growtfr of a child withih a safe and nurturingenvironmentwhere he/she is given adequate

nourishment, care and protection and the

opportunityo perform asks appropriate t each

stage of development-

of the

the sole

or legal

153

When State

I

responsibilitY



LABORLAW

SOCIAL EGISLATION

guardianand where only membersof his/her amilyare employed.

Conditions:a. That his/ her employment neither

endangershis life, safety, health andmorals, nor impairs his normaldevelopment, nd

b. That he parentor legalguardian hallprovide the said minor child with theprescribed primary and/or secondaryeducation.

2. Wherb the child's employment orparticipation in public entertainment

orinformation hrough cinema, heater, radio,television or other forms of media isessential.

Conditions:a. That the employment contract is

concludedby the child'sparentsor legalguardianwith the expressagreementofthe childconcerned, f possible,and theapprol/alof he DOLE.

b. That the following requirement n al linstances re stricflycompliedwith:i. The employer shall ensure the

protection, health, safety, moralsand normal development of thechitd;

i i . The employer shall institutemeasures to prevent the child'sexploitationor discriminationakingintoaccount he systemand levelofremunerationand the durationand

... anangementof working ime; and

iii. The employer shall formulate andimplement,subject o the approval

"nqsupervision of -competent

authorities, continuing rogram ortrainingand skillsacqriisitioir t thechitd.

iv. The child is provided with at leastthe mandatory elementary orsecondaryeducation.

Note: In the above+xceRttonal cases. theemptoyer

shall r i st, secure,\efcire'

-engaging

such child, A WORK pERMtT FROM 5O"fi,which shall ensure observance of the aboverequirements.

For..purposes f this Article, he te;m ,,CH|LD,,shall apply to all persons under eighteen11S;years of age.

Hours of Work of a Working Child1. A child below ifteen(15j years of ase mav

b_e llowed to work toi n6t moretnan"twenl'v(20)hours weekandmoreha; fd;iii

hours tany iven ay.

164

A child ifteenwho is (15) yearsof age andbeloweighteen 18) shall not be allo,vedo

work for more than eight (8) hours a day,and in no case beyond forty (40) hours aweek;and

No child below fifteen (15) years of ageshall be allowed to work between eighto'clock n the eveningand six o'clock n themorningof the followingday and no childfifteen 15)yearsof age and beloweighteen(18) years of age shall be jllowed to workbetween en o'clock n the eveningand six

o'clock n the morningof the followingday.

Ownership, Usageand Administration of theWorking Ghild's ncome1. The wages, salaries, earnings and other

incomeof the workingchild shall belong ohim/hern ownership nd shallbe set asideprimarily or his/her support, educationorskills acquisition and secondarily to thecollec{ive eedsof the family.

Condition: that not more than 20Yoot thechild's income

may be used for thecollective eedsof the family.

2. The incomeof the workingchild and/or hepropertyacquiredthrough the work of thechildshall be administered y both parents.In the absence or incapacity of either

Hours of Work of a Worki

Not morethan 8hours -

u p aTHEand

to

ll have fullor the

control



Ss't Gels @oltegef1[ab2OI1CENTRALIZEDAROPERATIONS

Prohibition against Worst Forms of ChildLabor"Worst

forms of dtild labof shall refer o anv ofthe following: Sec 3)1. All forms of slavery,as defined under the

"Anti-Traffrckingof persons Act of 2003,'orpractices imilar o slaverysuchas sale andtraffickingof chibren, debt bondage andserfdom and forced or compulsory abor,including ecruitment f children or use inarmedconflid;or

2. The use, procuring,offeringor exposingofa.childfor prostitution,or the production f

pornography or for pornographicperformances; r3. The use, procuring,offeringor exposingot

a child or il legal r i l l iotactivrties,ncludingthe pi6ductionand traffickingof dangerousdrugs and voldile substances pronibiteOunderexistingaurs, r

4. Work which, by its nature or thecircumstanc€sn which it is carriedout. ishazardousor likely to be harmful to thehealth, safety or morals of children.such

that it :a. Debases,degrades or demeans theintrinsicworthanddignityof a childas ahumanbeing, r

b. Exposeshe child o physical,emotionalor sexualabuse,or is found o be highlystressful psychologically or ."Vprejudicemorals:or

c. ls performedunderground, nderwater,or at dangerousheights;or

d. lnvolves the use'

of dangerous

machinery, quipmentand tools suchas power{riven or explosive power_actuated ools: or

e. Exposes the child to physical dangersuchas but not limited o the dangerousfeats of balancing, physicatstrerigtn oicontortion, r which requireshe manualtransportof heavy oads;or

f. ls performed in an unhealthvenvironment exposing the child

't6

hazardous working conditions,elements, substances,

co-agents or, _ processes involvirlg ionizing, radiation,fire,' flammable sDbstan'ces. hoxiouscomponentsand the like,or to extreme

. temperatures, noise levels, orvibrations: r

g. ls performed.underparticularlydifficultconditions; r

h. Exposes he child to biologicalagentssuch as bacteria, fungi, viruses,protozoans, nematodes and otherparasites;or i

i. InVolveshe manufacture r handling,of

.explosives and other pyrotechnicproducts.

Access to Education and Training forWorking Children

No child shall be deprived of FORMAL ORNON-FORMAL EDUCATION. n all cases ofemployment allowed in this Act, theEMPLOYER hall providea workingchildwithaccess o at leastPRIMARYand SECONDARYEDUCATION.

Prohibition on the Employment of Childrenin Certain AdvertisementsNo child shall be employed,psa model in anyadvertisement, irectly or iiiUirectly,promoting

a coholicbeverages,ntoxicati g drinks, obaccoand its by-products,gambling or any form ofviolence r pornography.

TRUSTFUNDFROMFINESAND PENALTIESThe fine imposedby the court shall be treatedas a Trust Fund, administeredby DOLE anddisbursedexclusively or the needs, indudingthe cost of rehabilitation nd reintegration ntothe mainstream of society of the workingchildrenwho are victims of violationsof this Act.

ant for the programs and projects that willpreventacts of child abor.

WHO MAY FILE A COMPLAINTON CASESOF UNLAWFUL ACTS COMMITTEDAGAINSTCHILDREN Sec.8)1. Offendedparty;2. Parents r guardians;3. Ascendantsor collateral elativeswithin he

third(3'd)degreeof consanguinity;4. Officer,social worker or representative f a

I censedchi d-+aring nstitution;Officeror socialworker of DSWD:.Barangay hairman of the placewhere theviolation occurred, where the child isresidingor employed;orAt least three (3) concerned, responsiblecitizenswhere he violationoccurred.

o-

date of





$an Eets @ollege f{.sb'2011CENTRALIZEDAROPERATIONS

paid a standard amornt for every pieceor unit of work prodrced that is more or

less regularly reflicated without regardto the time spent in producing he same.

Piece-rde wskers are dassified into'.i. Piece<ate $orkers working inside

the work prenises of the employerand are under he direct supervisionof the employer, hus entitled o 13tnmonthpay and

ii. Piece-+ate workers who work' outside the work premises of the

emfloyer \Yhce hours spent in theperfonnanceof ttpir work cannot beascertained v/ith reasonablecerpl'*y and are not under thedirect superyisionof the employer,thus NOT entitled o 13fr month pay(Labor Congress of the PhilippinesY. NL"C).

b. EmployeesGeneral Rule: All RANK-ANHILEemployees regardless of the amount of

basic salary that they reeive in a month, iftheir employers re not otherwiseexemptedfrom paying the .13h month pay. Suchemployees are entitled to the 13'' monthpay regardless of their designation oremployment tatus, and irrespectiveof themethod by. which their wages are paid,PROVIDED hat they have worked for atleast 1) one monthduringa calendar ear(Revised.Guidelineson the lmplementationof the 1f-Month Pay Law).

Exceptions: (H-CR€)1. Household elpers2. Employeespaid purelyon Qommission

basis3. Employees already Receiving 13th

monthpay4. $overnmentemployees

Note: Part-Umeemployees are entitledto13t monthpay.

. r " . 1 : r - 1 . , . , , y . : , - i 1 r. ' ; '

1 . . , \ i ' ; " , i ' .: ' ; ' . ' ' r i 1 : r . - . r . . r

Manageribl employees may receive 13nmonth pay if such payment has been acompanypractice.

Time of Payment'

Shall be paid not later than December 24 ofeach year. An employer, however, may give tohis employees ne half (112) f the required13'month pay before the opening of the regularschool year and the other half on or beforeDecember.24of every year. The frequency ofpayment may be subjectto agreement betweenemployerandthe collectivebargainingagent ofthe employees.

Nonlnclusion in RegularWage

The benefitsgranted under this issuanceshall

not be creditedas part of the regularwage ofthe employees for purposes of determining

overtimeand premiumpay, fringe benefits,as

well as oremium contributions o the State

lnsuranceFund, social security,Medicareand

privatewelfareand retirementplans.

Rules on CertainTypes of Employees

1 . Employees Paid bY Rpults

Employeespaid on piecework basisare by

law entitled o the 13thmonth.pay.

Employeespaida fixed or guaranteedwage

olus commissionare also entitled to the

mandated13th month pay, based on their

total earningsduring he calendaryear, i-e.'

on both their fixed or guaranteedwage and

commission.

Those with MultiPleEmPloYers

Governmentemployeesworking part time in

a p'rivate enterprise, including private

educational institutions, as well asemployeesworking in two or more private

firms,whetheron full or part time basis,are

entitled o the required13thmonthpay from

all their prtvate employers regardless of

their total earningsfrom each oi' all their

employers.

Private School Teachers

Private school teachers, induding faculty

membersof universitiesand colleges,are

entitled to the required 13th month pay'

regardless of the number of months they

teich or are paidwithina year; if they have

renderedseryice or at least one (1) month

withina year.

4. Resignedorlf resigned

Generalonly inwork;servicethe worker

2.

before

[2005]).

L67



LABORAW

SOCIALEGISLATION

earnd are entiiled o 13hmonth pay OasLO-cn

PilL earninss- (phitippine

'esiiittriu,r

vommercial and lndustrial Workers -Unionv.

NLRC,247 SCRA 256, 1sssl)

Adjudication of Glaims, Non-paymentof 13frmonthpay shall be treated

as money c/ams cases.

ll:te;jiff_eTnceof opinion,onhow to compute

:1,y,i

.monrnpay is non_strikeable nd asrflKenetd on that qround is illegal(tsalamaMachine Works Corplv. NLRC,

ngiin14thMonth payThe granting of 14dn month pay is a

llT:g:i9.t ,prerosativend is noi legatryoemanctable.t is basicallya bonus

"nii,gratuitousn nature Kanayapoini-uiiit ,.

NLRC,[1989]

39nt1ory Emptoyees ho are paid aguaranteedminimum wage or commissionsthe country of destination of the misrantworkers, NO permit for deploymentshaii be,.":u9d. y the philippineOverseasEmploymentAdministrationpOEA).The members of the pOEA governingboardwno actuallyvoted n favor of an order ttowingthe.deployment f migrantworkerswithoutanyof the aforementioned uaranteesshall sufferthe penalties of removal or dismissal fromservice with disqualiflcation to hold anvappointive ublicoffice or5 years.

The State shall also allow thddeployment ofoverseas Filipino workers to:

1. Vessels navigating he foreign seas or tolnstallations ocated offshore or on highseas whose ownervemployers arecompliant with international laws and -standards hat protect he rightsof migrantworkers.

2. Companies and contractors withinternational operations: provide4, Thatthey , are compliant with standardsconditionsand requirements, s embodieJirrthe ernployment ontractsprescribedbvthe POEA and

in accordance withinternationall-accepted tandards.

Terminationor Ban on DeploymentIn pursuit f the NATIONALNTEREST r whenPUBLIC WELFARE so requires, he pOEAGoverning Board, after consultaiionwitn ineOepartment f ForeignAffairs,may,at any ime,terminate r impose banon the depoymentoimigiantworkers.

lllegal.Recruitment (See Arf. 3AJ(CEC_TUH_PRP-A)

DEFINITION F TERMS

Overseas Filipino WorkerHersonwho is to be engaged, is engaged or1T-b"9n 9?SaSedn a remunerated c'tivilvlnastate of which he or she is not a citiz;;';;'"n

::1r1 1vesse navigating tne ro eig 's;;; ;;"r.rnana governmentshipused or mlilt"ryot.non_

::Ilgr"i9l.purposes or on an instatration

pg1 g offshoreor on the high seis; i" O" r""oINTERCHANGEABLY witn UlenarrrrWORKER.

Deployment of Migrant WorkersI he State shall deploy overseas Filipinoworkers only in countrieswhere the rignil :otFilipino migrant workers are protected. The11t:-.lg arerecognizeos a gr;a;;t";;" il" .1I _ol

h"_l:ceivi

g country oitne prot"Jionorgvelnas Fitipinoworkersir-C$ttilt ,.,- , .

'

1.

. lt"q.

existingtaoor andsociat Laws., pd1llg therights f migrantwork"rs-"

z. tr ts. stgnatoryo multilateralonveniionsdeclarationsr resolution. "f"ting-io h-;

^protectionf migrant orkers;

r. rr has concluded .bilateral{greementorarrangement with the-government

l:oL"^"lnSthe rights of oversjas iiripino

worKers; nd4. lt is takingpositive,concrete[easures toprotectherightsof migrantwofters.

-- --

_oh,.'.T he_ bsence f .a clearshowinghatanyof the aforementioneduarantees xists n169 )

indirec.tly



Sffi Eels 6ottege of Lsto


or'to make a worker pay or acknowledgeany amount greater than that actuailyreceivedby him as a loan or advance;

2. To furnish or publishany false notice orinformation or document in relation torecruitment r employment;

3. To give any false notice, testimony,informationor documentor commit any actof misrepresentation for the purpose ofsecuring a license or authority under heLabor Code, or for the purpose ofdocumentinghired wokers with the POEA,

.which include the act of reprocessingworkers hrough a job order hat pertains o

nonexistentwork, work different from theactual overseas work, or work with adifferent employer whether registeredor notwith the POEA

4. To induce or attem$ to induce a workeralreadyemployed o quit his employment norder to offer him another unless thetransfer

'sdesigned to liberate a worker

from oppessive terms and conditions oiemployment;

5. To influence or attempt to influence anyperson or entity not to employ any worke:

who has not applied for employmenithrough his agency or who has forme.;joined or supported,or has contactedcrsupported by any union or workersorganization,

6. To engage n the recruitmentor placemi''-'of workeri in jobs harmful to publichea:rr,or moralityor to the dignityof the Repi:l,rof the Philippines;

7. To fail to submit reports on the status ctemployment, placement vacancir.s

remittance of foreign exchange earningrseparation rom jobs, departuresand siirt-iother matters or information as ffi?) l;i:required by tlie Secretary of Labor a:rcEmployment;

8. To substitute or alter to the prejudice :'the worker, employmentcontracts appro 'e,:,

. and verified by the Department of Laborand Employment rom the time of actuasigning thereof by the parties up to an':

.includingthe_perio{ of lhe expirafion of th*same withont the approval of thr

Department f Laborand Employment;9. For an officer or agent of a recruitmento'

placementagencyto become an officer ormember of the Board of any corporatior.engaged n travel agencyor.to be engagecdirectlyor indirectly n the management >itravelagency; ,,

10. To withhold or deny travel documentsfrom applicantworkers before departuref*rmonetaryor financialconsiderations, r forany other reasons, other than thosr

. authorized under the Labor Code and it$implementingulesand regulations;

11. Failure to actually deploy a contracted

worker Wthout valid reasonas determinedby the DePartment of Labor and

Employment;12. Failure to reimburse expenses incurred

by the worker in connection with his

documentation nd processingor purposes

of deployment, in cases where the

deploymentdoes not actually ake place

without he worker's ault. lllegal ecruitment

when committedby a syndicateor in large

scale shall bs. considered an offense

involvingeconomicsafbotage; nd

13. To allow a non-Filipino citizen to head or

manage a licensed recruitmenVmannirgagency.(See Sec. 6 of RA 8042)

ln aCdition to the acts enumerated above' it

shall atso be unlaMul fot any person or

entity to commit the follouving prohibibd

acts:1. Grant a loan to an overseasFilipiro worker

with interest EXCEEDING eight percent

(8%) pgr annum, which will be used for

baymeni of legal and allowableplacement

ie& and make the migrant worker issue,

either personallyor through a guarantororaccommodation party, postdated checks in

relation o the said loan;

2. lmpose a .compulsory and exclusive

arrangementwhereby an overseasFilipino

worker is required to avail of a loan only

from specificalty designated institutions'

entitiesor Persons;3. Refuse to condone or renegotiate a toan

incurredby an overseas Filipinoworker after

the latter's employment contract has been

prematurely terminated through no fault of

his or her orvn:4. lmpose a -compulsory and exclusive

arrangementwhereby an overseasFlllplno

workJr is required to undergo health

examinationsdesignated

es or

princi

o.

7.

Foragencyactivityworkers'For a. 9 r a

pass on the

from speciflcailY

69

foreign Princi





$ar Eela @ollege f LstD


officers, irectors, r partners hall.beointlyandSOLIDARILYiablewith he agency.

2. POEARetains ORIcINAL and EXCLUSIVEjurisdictiono hearanddecide:a. All cases which are administrative n

character, involving or arising out ofviolations of rules and regulationsrelating o licensingand registration frecruitment nd employment genciesor entities;and

b. Disciplinay action cases and other

specialcases,which are administrativein character, involving employers,principals, contracting partners andFilipinomigrant orkers.

Venue: POEAAdjudicationOfficeof DOLEor POEARegionalOfficeof the placewherethe complainant ppliecl r \ /as recruiteC, tthe OPTIONOF THECOMPLAINANT.

3. RTC

Criminal action arising from illegalrecruitmentshall be filed with the RTC ofthe provinceor city where the offensewascommitted or where the offended partyactually resides at the time of thecommission f the offense.The courtwherethe criminal ction s first i ledshallacouirejurisdictiono the exclusion f othercourts.

Effects of Termination of Overseas

,Employment WTHOUT Just, Valid orAuthorized CauseThe worker shall be entitled to the fullreimbursementof his placement ee and thedeductions made with interest at 12o/oplannum, plus his salaries for the unexpiredportionof his employmentcontractor for threemonths for every year of the unexpired erm,whichever s less. Sec. 10 ot RA 8042)

Note: The phrase, "plus his salaries for theunexpiredportionof his employment ontractorfor three months or everyyear of the unexpiredterm,',whichever'.is'fess' ias already.beendeclared UNCONSTITT|ONAL in Serrano ys.

Gallant Maritime Serylces, lnc. (C.R. No.167614, March 24, 20O9), or being violative ofthe equalprotection lauseand he due processclauseof the Constitution.This means that anOFW who is illegallydismissed rom work isnow entitled o monetary benefitsequal to hisbasic salary multipliedby the entire unexpiredportionof

his employmentcontract.IN CaSe of a FINAL AND EXECUTORYJUDGMENT against a foreign

from participating n the PhilippineOverseas

EmploymentProgram and from recruitingand

hiring Filipinoworkers until and unless t fullysatisfies he udgmentaward.

RepatriationGeneral Rule: (Sec. 15)Repatriationof the worker and the transportof

his personal belongingsshall be the primary

responsibility f the agency,which recruitedor

deployed he worker overseas The repatnation

of remains and transoort of the personal

belongingsof a decease?worker and all costs

attendant heretoshall be borneby the pnnctpaand/or he local agency.

Exceptions:1. lf the termination f emdoyment ts due sole

to the fault of the worker. the principaU

employer r agency hallnd in anymannerbe responsible for the repotriation of the

formerand/prhis belongings; nd2. In cases of war, epridemiq disaster or

calamities,naturalor man-made,and other

sirnilarevents, and where the principalorrecruitment gencycannotbe identified,he

Overseas Workers Welfare Administration(OWWA), in coordinationwith appropriate

internationalgencies, hall ake chargeof

the repatriation.

Mandatory Repatriationof Underage Migrant

Workers (Sec.16)Upon discovery or being informed of thepresenceof migrant workers whose ages fall

below the minimum age requirement foroverseasdeployment,he responsible fficers n

the foreign seryice shall WITHOUT DELAY

REPATRIATE said workers and advise the

Department of Foreign Affairs through the

fastest means of communicationavailaHe of

suchdiscoveryand other relevant nformation.

lq500,

theby



LABORLAW

SOCIAL EGISLATION

the mandatoryrepatriationas provided for inthisAct.

National Reintegration Center for OverseasFilipinoWorkersA National ReintegrationCenter for OverseasFilipinoworkers (NRCO) s herebycreated nthe Departmentof Labor and Employment orreturning Filipino migrant workers which shallprovidea mechanism or their reintegrationntothe Philippine society, serve as a promotionhouse or their ocalemployment, nd tap theirskil lsand potentialsor natonaldevelopment.

Policy of the State (PEDEAA)1. Affirm he roleof women n nationbuilding;2. Ensure the substantiveequalityof women

andmen;3. Eromote empowerment of women and

pursueequalopportunitiesor women;4. lnsure equal access to resources and to

development esultsand outcome:

5. {bolish the unequal structures anopracticeshat perpetuate iscrimination ndinequalities;

6. Qevelop plans,' policies, programs,measures, and mechanisms to addressdiscrimination and inequality in theeconomic,political,social, and cultural ifeof womenand men

Principles of Human and Rights of Women(ut1

Human ights re:1. Universal nd nalienable;2. lndivisible;3. lnherent to the dignity of every human

being;4. lnterdependent nd interrelated.

DEFINITION F TERMS

Women Empowerment - provisionsof the lawmaking opportunities, ervicesand observance

of human rights available and accessible owomen. These enablewomtn'to'participate tothe political, economic, social and bulturaldevelopment f the nation.

DiscriminationAgainst Women - (GAFI)1 Any Gender-basd distindion, exclusibn, orrestriction which impairs the exerclses bvwomen of human rights and fundamentjlfreedoms; .2..Aly.Ad or ornlssron,ncludingby law; policy,administrativemeasure,

or pradice, that directiyor indirectfyexcludesor re,stids women in therecognitionand promotion of their rights andtheir access to and enjoyment of opportunities,

3. When a measure or practice of generalappfcation fails to provide for mechanisms o

orTset or address sex or gender-baseddisadvantages or limitations of women, orwomen, more than men, are shown to havesuffered the greater adverse effects of thosemeasuresor oractices.4. Discrimination lntersecting with orcompounded by other grounds, status, orcondition,such as ethnicity, age, poverty, orreligion.

Marginalization a conditiondVhere whole

categoryof people s excluded rom usefulandmeaningful articipationn political, conomigsocialandculturalife.

Marginalized - refers to the disadvantaged rvulnerablepersonsor groups, who are mostlyliving n povertyand have little or no access oland and other resources, basic social andeconomic ervi€s.

These include,but are not limited o, women in

the t6itowing[ ectors and groups: (SFU-WWM-rMc-sDs)1. $mallFarmers nd RuralWorkers2. fisherfolk3. lrban Poor4. Workers n the FormalEconomy5. Workers n the InformalEconomy6. MigrantWorkers7. lndigenous eoples8. SoroL Qhildren

10. SeniorCitizens11. Disabled erson12. Solo Parents

Substantive Equality - full and equalenjoyment of rights and freedoms. ltencompassesde ure and de facfo equality andalsoequality n outcomes.

Gender for making



Ssx EeDs@ollegef Asb

2OI1CENTRALIZEDAROPERATIONS

womenand men benefitequallyand inequalityis not perpetuated.

Temporary Special Measures - measuresaimed at accelerating he de facto equalityofwomenandmen.

/Vofe; t is temporaryonly. The measuresshallbe abolished nceequalitys achieved.

Violence Against Women - any act of gender-based violence that results in, or is likely toresult n, physical, exual,or psychological armor suffering o women, ncluding hreatsof such

acts, coercion,or arbitrarydeprivation f liberty.whether occuning n publicor in private ife. ltincludespphysical,sexual, psychotogical, ndeconomic iolenceoccuning n the family withinthe general community, perpetrated orcondonedby the Sfafe,wherever t occurs:anoRA 9208and 9262.

Women in the Military - women in the militarywhether performingcombat ancl/ornoncombatfunctions.

Social Protection- policies and programsreducing poverty and vulnerability aimed atenhancing the social status and rights of allwomen.

HUMANRIGHTSOF WOMENAll rights in' the Constitution and underinternational instruments duly signed andratifiedby the Philippines.

Riglts of EveryWoman to: (VEEDDS-HSMD)

1. Protection from all forms of Violence.includinghosecommittedby the State;2. lqual treatment before the law, including

the State's review and when necessaryamendmentor repeal of existing aws thjtare discriminatoryo women

3. Equal access and elimination ofdiscrimination gainstwomen in fducation,scholarships nd training.

4. Protectionand security n times of Disaster,calamitiesand otheF-qrisis i{uatiors; .

5. Participation nd equitable epresentation fwomen in the Qecision-making nd policy-makingprocesses,

6. Participation f women and girl-children ncompetitiveand noncompetitivegports

7. Comprehensive, culture-sensitive, andgender-responsive Health services andprograms covering all stages of a woman,slife cycle and which addresses the majorcausesof women'smortalityand morbidity

8. Women in the gilitary, police, and othersimilar seryicesshall be providedwith the

same right o employmentas men on equalcondit ions

9. Nondiscriminatory and nonderogatoryportrayal f women n $edia and film

'10. Equal rights in all matters relating to

$arriage and family relations

RIGHTSOF WOMEN N THE MARGINALIZEDSECTORS FHEW-CRISP-WeGs)To guarantee al civil, potitical, social, andeconomic ights recognized, promoted, andproteded under existing laws.1. food security and resources for food

production, nclu{ing-. qual r ights in thetitling of the lan# and issuance ofstewardship ontractsand patents;

2. Localized, accessible, secure andaffordableHousing;

3. lducation, livelihood, credit, capital and'

technology;4. Decent[ork, skills, raining,scholarships;5. Recoghition and preservationof Qultural

identityand integrity not discrirninatory owomen;

6. Representation nd participation n policy-

makingor decision-mak ing odies;1. Access o lnformation egardingpolicieson

women, including programs, projects andfundingoutlays hat atfect hem;

8. $ocial protection;9. leace and development;10. Services and interventions or women in

especialty ifficultcircumstances r WEDC;11. Protectionof Girl-childrenagainstall forms

of discrimination n education, health and' nutrition, nd skillsdevelopment; nd12. Protection f women$enior citizens.

Women in Especially Difficttlt Circumstances

- (WEDC) victims and survivors of sexual andphysicalabuse, illegal recruitment,prostitution,

trafficking,armed conflict,women in detention,victims and survivorsof rape and incest.

National Commission of Filipino

last12

Benefit:her

women

Women inAcf (Republic

Women (

Note: Filipredude tremediesany of thethose recently

and children

surgery

L73



LABORLAW

SOCIALEGISLATION

Act No. 7192), the Speaa/ protedion ofChildren Against Child Abuse, Exploitation andDisciminationAcf (RepubticAct No. 7610). he

Anti-SexualHarassmentAct of 1995(RepublicAct No. 7877), the Anti-RapeLaw of 1997(Republic Act No. 8353), the Rape VictimAssisfanceand Protection Act of 1998 RepublicAct No. 8505), the Anti-Traff,cking n personsAct of 2@3 (RepublicAct No. 9208) and theAnti- Violence Again$. Women atnd TheirChildrenAct of 2004 (RepubticAct No. 9262). fviolencehas been proven o be perpetratedbyagentsof the State ncluding,but not limited o,extrajudicialkillings,enforced disappearances,torture,and internaldisplacements, uch shallbe considered aggravating offenses withcorresponding penalties depending on theseverityof the offenses.

APPLICABILITY:Personswithdisabilitywho are Filipino itizens

Persons with Disability

Those suffering from restriction or differentdisabilities, s a result of a mental,physicalorsensory mpairment,o performan activitv n themanneror within he rangeconsidered ormalfor a humanbeing

Proof for entiflement to privileges:1. ldentificationCard issued Oy tne mayor or

barangay captain where the diiabledperson esides;

2. Passport;or3. Transportation

discount fare lD issued bvNationalCouncil or the Welfareof DisabledPersons NCWDp).

PRIVILEGES ND INCENTIVES

A. Of Persons with Disability: (20-SEGE)

1. At least20%discount or the exclusiveuseor.qnjoymentof personswith disabilityrom:(Ha ejQ) .a.' lotel and' similar )oOging services,

restaurantsand recreationcenters:b. {dmission fees from theater, cinema,

concerthalls and other placeof culture,leisureand amusement;Prrchaseof Medicinesn all drugstores;Medical and dental seMces in allgovernm"ent facilities, and privatehospitals and , medical facilities(including professional ees of doctors)subject to DOH and pHtLHEALTt-iguidelines;

e. Qomestic air and sea travel,..publicrailways,skywaysand bgs fares

2. Special discounts n special programsonpurchaseof basic commoditiessubject toDTI andDA guidelines;

3. lducational assistance, as well asvocational r technicaleducation,n publicand private schools through scholarships,grants, financial aids and other incentives,including support for books, learningmaterialanduniformallot/ance:

4. Qontinuanceof the SSS, GSIS and PAG-lBlG beneflts; nd

5. Provision f fxpress lanes n all commercialandgovernment stablishrnents;n absencethereof,priority hall be given o them.

Non-Entitlementof Privileges:The privileges may not be claimed if the

personswith dlsabilityclaims a higherdiscountas may be granted by the commercialestablishment nd/or under other existing awsor in combinationwith otherdiscountprogram.

B. lndividual Persons Caring for and Livingwith Personswith Disability.

Persens with disability shall be treated asdependents under Sec 35(A) of the National

lnternatRevenueCode, and as such, individualtaxpayerscaring or them shall be accorded heprivileges rantedby the code insofaras havingdependents under the same section areconcemeo.

C. Individuals or Nongovernmentallnstitutions establishing Hornes, ResidentialComrnunities or Retirement Villages solelyto suit the needs of Persons with Disability:{HR)

1. Realty tax Holiday for the first 5 years ofoperation; nd

2. Priority in buildingand/or maintenanceofprovincial or municipal Roads leading tosaidhomes.

d .

writing

174



5an frebs @olbqeof lalr

2OT CENTRALIZEDAROPERATIONS

2, Delitrerancefrom VilificationNo indMdual, group or communityshall

executeany of these acts of ridiculeagainstpersonswith disability n any time and placewhich could intimidateor result in loss ofself-esteemof the latter-

Vilification (1) any utterance ofslanderous and abusive statementsagainsta person with disability; or (2) adivity inpublic whictr incites hatred towards serious

. contem$ for, or severe ridicule of personswith disabilig-

0i ' , t l . l