Labor Law Memory Aid

San Beda College of Law
1
MEMORY AID IN LABOR LAW
1. defect which is congenital or

acquired during minority
2. legitimate spouse living with the
employee
3. the parents of said employee wholly
dependent upon him for regular
support
BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there
are not primary beneficiaries
3. in no case shall the total benefit be
less than P15,000.00
BENEFICIARIES
PRIMARY BENEFICIARIES
A. dependent
spouse
until
he
remarries
B. dependent children (legitimate,
legitimated, natural born or legally
adopted)
ART. 211. DECLARATION OF

POLICY
LABOR RELATIONS the interactions
between the employer and employees
and their representatives and the
mechanism by which the standards and
other
terms
and
conditions
of
employment are negotiated, adjusted
and enforced.
LABOR RELATIONS LAW those
intended to stabilize the relations of
employees and their employers, adjust
differences between them through the
encouragement of collective bargaining,
and settle labor disputes through
conciliation, mediation and arbitration.
SECONDARY BENEFICIARIES
A.
illegitimate children and legitimate
descendants
B.
parents,
grandparents,
grandchildren
TITLE III
MEDICARE
(Repealed by National Health Insurance
Act of 1995)
(See annex for PHILHEALTH)
PAG-IBIG Law- creates a provident
savings system for employees, public and
private, with housing as the primary
investment.
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
it defines the status, rights, and

duties and the institutional
mechanisms that govern the
individual
and
collective
interactions
of
employers,
employees
or
their
representatives.
Absent an employer-employee
relation, there is no labor
relations to speak of.
Collective bargaining process is
possible only when there is a labor
organization, i.e., (1) labor union
or (2) employee association.
POLICY is intended to install industrial

democracy centered on collective
bargaining, leading to social justice as
the end goal.
PARTIES TO LABOR RELATIONS CASES:
1. employees organization,
2. management, and
3. the public
The public is always to be
considered in disputes between
labor and capital, and it has
been held that the rights of the
general public are paramount.
Labor relations policy under the LC
is embodied in Section 3 Article XIII of
the 1987 Constitution which guarantees
to all workers their right among others
to:
LABOR LAW COMMITTEE

CHAIRPERSON: Francis Benedict Rotutar ASSISTANT CHAIRPERSON: Juanito Lim, Jr. SUBJECT HEADS: Aimee Roselle Sabilala(Labor
Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws) EDP: Flora Sherry Basquiez
ASST. EDPS: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
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1. Self-organization,
2. Collective
bargaining
and
negotiations,
3. Peaceful
and
concerted
activities including the right to
strike in accordance with law,
and
4. Participate
in
policy
and
decision-making
processes
affecting
their
rights
and
benefits as may be provided by
law.
ART. 212. DEFINITIONS
EMPLOYER- one who employs the
services of others; one for whom
employees work and who pays their
wages or salaries.
any person acting in the interest of an
employer, directly or indirectly. The
term does not include a labor
organization or any of its officers and
agents, EXCEPT when acting as an
employer.
EMPLOYEE- one who works for an
employer; a person working for salary or
wages.
Shall not be limited to the
employees of a particular
employer, and it shall include
any individual whose work
has ceased as a result of or in
connection with any
current
labor dispute or because of any
unfair labor practice IF he has
not obtained any other:
1. Substantially equivalent
and
2.
Regular
employment
(Art.212f)
ICAWO vs. CIR (16 SCRA 562): The
category of any employee is so broad
as to justify employee status for
supervisors, regular workers, casual
employees,
emergency
laborers,
substitute workers, seasonal workers,
part-time workers and other special
work groups.
APEX MINING CO., vs. NLRC (196 SCRA
251): Laundrywoman not actually
serving the family of the employer but
working in the staff houses or within the
premises of the employers business is a

regular employee and is not included in
the definition of domestic helper.
FELIX vs. BUENASEDA (240 SCRA 139):
Residency or resident physician position
in a medical specialty is not employment
but connotes training and temporary
status. (No E-E relationship)
WORKERS ASSOCIATION - any
association of workers organized for the
mutual aid and protection of its
members or for any legitimate purpose
other than for collective bargaining.
INDEPENDENT UNION It refers to
any labor organization operating at the
enterprise level whose legal personality
is derived through an independent action
for registration with the Bureau of Labor
Relations (BLR) of the Department of
Labor and Employment prescribed under
Art. 234. It may be affiliated with a
federation, national or industry union, in
which case it may also be referred to as
an affiliate.
FEDERATION - any labor organization
with at least 10 locals/chapters or
affiliates each of which must be a duly
certified or recognized as the sole and
exclusive collective bargaining agent of
the employees of an appropriate
bargaining unit.
LEGITIMATE WORKERS ASSOCIATION
refers to an association of workers
organized for mutual aid and protection
of its members of for any legitimate
purpose other than collective bargaining
registered with the Department in
accordance with Rule III, Sections 2-C
and 2-D of these rules.
LABOR MANAGEMENT COUNCIL
- Deals with the employer on
matters affecting the employees
rights, benefits and welfare.
Purposes are to:
a.
b.
c.
promote gainful employment

improve working conditions and
achieve increased productivity
(RA 6971)
LABOR LAW COMMITTEE

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LABOR ORGANIZATION any union or

association of employees which exists in
whole in part for the purpose
of
collective bargaining with employers
concerning terms and conditions of
employment.
LEGITIMATE LABOR ORGANIZATIONany labor organization which is duly
registered with the Department of
Labor.
The
term
includes
a
local/chapter of the Bureau of Labor
Relations directly chartered by a
legitimate federation or national union
which has been duly reported to the
Department in accordance with Rule VI,
Section 2 of Book V of the Rules
Implementing the LC.
LABOR DISPUTE includes
controversy or matter concerning:
1.
2.
c.
d.
any
terms or conditions of employment

OR
the association or representation of
persons in negotiating, fixing,
maintaining, changing or arranging
the terms and conditions of
employment
REGARDLESS of whether the disputants

stand in the proximate relation of
employer and employee.
The test of whether a labor

controversy comes within the definition
of a labor dispute depends on whether it
involves or concerns terms, conditions of
employment, or representation.
TYPES OF LABOR DISPUTES:
1. Labor Standards Disputes
a. Compensation
[e.g.,
underpayment
of
minimum
wage; stringent output quota;
illegal pay deductions]
b. Benefits [ e.g., nonpayment of
c.
b.
holiday pay, overtime pay or other

benefits]
Working conditions [e.g., unrectified
work hazards]
2. Labor Relations Disputes

a. Organizational right dispute/
unfair labor practice [e.g.,
coercion,
restraint
or
interference
in
unionization
e.
efforts; reprisal or discrimination

due to union activities; company
unionism]
Representation disputes [e.g.,
determination of the collective
bargaining unit; ULP strike;
uncertainty as to determination
of the sole and exclusive
bargaining
agent
of
the
employees in an appropriate
bargaining unit which is the
majority union]
Bargaining disputes [e.g., refusal
to bargain (ULP); bargaining
deadlock; economic strike or
lockout]
Contract
administration
or
personnel policy disputes [e.g.,
noncompliance
with
CBA
provisions
(ULP
if
gross
noncompliance with economic
provisions);
disregard
of
grievance machinery; violation
no strike/no lockout agreement]
Employment tenure disputes
[e.g., non regularization of
employees; illegal termination;
non-issuance of employment
contract]
PARTIES TO A DISPUTE:
1. PRIMARY PARTIES employer,
employees, union
2. SECONDARY PARTIES voluntary
arbitrator, agencies of DOLE (BLR,
VAC), NLRC, Sec. of Labor, Office of
the President
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION
CHAPTER I
CREATION AND COMPOSITION
ART. 213. NATIONAL
RELATIONS COMMISSION
LABOR
NLRC an administrative body with

quasi-judicial functions and the principal
government agency that hears & decides
labor-management disputes; attached to
LABOR LAW COMMITTEE

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the DOLE for program

coordination only.
&
policy
3. employer
and
management
sectornominated by the Employers
Confederation
of
the
Philippines (ECOP)
POWERS of the NLRC as amended by

R.A. 6715
EN BANC
1.
Promulgating
rules
&
regulations
governing
the
hearing & disposition of cases
before any of its divisions and
regional
branches
and
formulating policies affecting
its
administration
and
operations.
2.
Under R.A. 7700: to allow cases

within the jurisdiction of any
division to be heard and
decided by any other decision
whose docket allows the
additional workload.
QUALIFICATIONS OF THE CHAIRMAN AND

THE COMMISSIONERS:
1. must be a member of the
Philippine Bar;
2. must have been engaged in the
practice of law in the Philippines
for at least 15 years;
3. must
have
experience
or
exposure in handling labor
management relations for at
least 5 years; and
4. preferably a resident of the
region where he is to hold office.
DIVISION
1.
Exercises
adjudicatory
or
appellate power over decisions
of Labor Arbiters and Regional
Directors of the DOLE over
monetary claims not over
P5,000.00 and all other powers,
functions and duties through its
divisions.
TRIPARTISM
The appointment of the Chairman

and the Commissioners of the NLRC
are not subject to confirmation by
the Commission on Appointments.
QUALIFICATIONS OF EXECUTIVE
LABOR ARBITERS/LABOR ARBITERS:
1. must be members of the
Philippine Bar;
2. must have been engaged in the
practice of law in the Philippines
for at least 7 years; and
3. must
have
experience
or
exposure in handling labor
management relations for at
least 3 years.
The NLRC is composed of five (5)

divisions.
TERM OF OFFICE OF THE CHAIRMAN,

COMMISIONERS, AND LABOR ARBITERS:
Three
(3)
sectors
are
represented in the composition
of the NLRC.
Each division composed of three

commissioners
will
have
representatives
from
the
following:
1. from the public sectornominated by the Secretary
of Labor
2. workers organizationsnominated by the labor
federation
They shall hold office during good

behavior until they reach the age of
65 unless removed for causes as
provided by law or become
incapacitated to discharge the
function of his office.
A.
EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF THE NLRC:
1.
Cases certified to it for compulsory
arbitration by the Secretary of Labor
under Art. 263 CERTIFIED CASES;
2.
INJUNCTION CASES under Art. 218
and 264; AND
LABOR LAW COMMITTEE

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3.
B.
CONTEMPT CASES
EXCLUSIVE APPELLATE JURISDICTION

OF THE NLRC:
1.Cases
DECIDED
BY
LABOR
ARBITERS under Art 217b of the
Labor Code and Sec 10 RA
8012(Migrant Workers Act); and
2.Cases DECIDED BY THE REGIONAL
OFFICES OF DOLE IN THE EXERCISE
OF ITS ADJUDICATORY FUNCTION
under Art 129 of the Labor Code over
monetary
claims
of
workers
amounting to not more that
P5,000.00
THE NLRC ONLY SITS EN BANC
FOR PURPOSES OF:
a. promulgating rules and regulations
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
b. formulating policies affecting its
administration and operations.
The Commission may only sit
en banc for the determination
of policies and NOT for
purposes of adjudication. (RA
6715)
Adjudication of cases certified
to the NLRC, or appealed to it
from the decision of its Labor
Arbiters are referred to and
decided by its five (5) divisions.
-Petitions for certiorari (Rule 65)
against decisions of the NLRC should
henceforth be initially filed with the
Court of Appeals in strict observance of
the doctrine on the hierarchy of courts
as the appropriate forum for the relief
desired.
The Court of Appeals is
procedurally equipped to resolve unclear
or ambiguous factual finding, aside from
the increased number of its component
divisions. (St. Martins Funeral Homes
vs. NLRC; G.R. No. 130866)
- Findings of facts of a labor tribunal
are accorded the utmost respect by the
courts and are well-nigh conclusive if

supported by substantial evidence.
- Labor cases are not subject to
Barangay Conciliation since ordinary
rules of procedure are merely suppletory
in character vis--vis labor disputes
which are primarily governed by labor
laws.
- The failure of the petitioner to
file a motion for reconsideration of the
decision of NLRC before filing a petition
for certiorari has in certain instances
been held not to be a fatal omission.
- In certain cases however the
filing of a Motion for Reconsideration is
deemed a condition sine qua non for the
filing of a Petition for Certiorari.
CHAPTER II
POWERS AND DUTIES
ART. 217. JURISDICTION OF
LABOR ARBITERS AND THE COMMISSION
EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF LABOR ARBITERS:
Except as otherwise provided
under this
Code the Labor Arbiters
shall have original
and exclusive
jurisdiction to hear and decide, within
30 calendar days after the submission of
the case by the parties for decision
without extension, even in the absence
of stenographic notes, the following
cases involving all workers, whether
agricultural or non-agricultural:
1. ULP cases;
2. TERMINATION disputes;
3. If accompanied WITH A
CLAIM FOR REINSTATEMENT,
those cases that workers may
file involving wages, rates of
pay, hours of work and other
terms
and
conditions
of
employment;
4. Claims for actual, moral,
exemplary and other forms of
LABOR LAW COMMITTEE

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DAMAGES arising from employeremployee relations;

5. CASES ARISING FROM ANY
VIOLATION OF ART 264 of this
Code,
including
questions
involving the legality of strikes
and lockouts;
6. Except claims for Employees
Compensation, Social Security,
Medicare and maternity benefits,
ALL OTHER CLAIMS ARISING
FROM
EMPLOYER-EMPLOYEE
RELATIONS, including those of
persons in domestic or household
service, involving an amount
exceeding P5,000.00 regardless
of whether accompanies with a
claim for reinstatement;
voluntary
arbitrator
by
agreement of the parties under
Art. 262.
The law prefers
voluntary
over
compulsory
arbitration.
Cases which must be disposed of
by the labor arbiter by referring the
same to the grievance machinery and
voluntary arbitration:
a. Disputes on the interpretation or
implementation of CBA and
b. those
arising
from
the
interpretation or enforcement of
company personnel policies.
The labor arbiter and the NLRC have

no jurisdiction over claims filed by
employees against international
agencies such as IRRI, WHO etc.
unless they expressly waive their
immunity. (Lasco vs. UNRFNRE)
They also have no jurisdiction over

illegal dismissal cases of corporate
officers which fall under PD 902-A
and now fall under the jurisdiction of
the Regular Courts pursuant to the
New Securities Regulation Code.
[Formerly under the jurisdiction of
the Securities and Exchange
Commission (SEC) (Dily-Daly Nakpil vs
NLRC)]
7. MONETARY
CLAIMS
OF
OVERSEAS CONTRACT WORKERS
under the Migrant Workers Act of
1995; and
8. Claims of employees against
GOCCs if the latter does not
have an original charter and has
been incorporated under the
Corporation Code.
Although the provision speaks of

EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF labor arbiters,
the cases enumerated may
instead be submitted to a
In the absence of service of
summons or a valid waiver
thereof, the hearings and
judgment rendered by the labor
arbiter are null and void.
COMPULSORY ARBITRATION: The

process of settlement of labor disputes
by a government agency which has the
authority to investigate and make and
award binding to the parties.
The NLRC may conduct compulsory
arbitration only in national interest cases
referred to it by the DOLE secretary.
Labor arbiters jurisdiction is
employment related.
ART. 218.
COMMISSION
POWERS OF THE
POWERS OF THE NLRC:

a. Rule-making
power
[promulgation
of
rules
&
regulations governing disposition
of cases before any of its
divisions/regional offices]
b. Power to issue compulsory
processes [administer oaths,
summon
parties,
issue
subpoenas]
c. Power to investigate matters and
hear
disputes
within
its
jurisdiction
[adjudicatory
poweroriginal
& appellate
jurisdiction over cases]
d. Contempt power [218]
LABOR LAW COMMITTEE

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e. Power to issue injunctions and

restraining orders
PROCEDURE FOR THE ISSUANCE
OF RESTRAINING ORDER/ INJUNCTION:
a. filing of a verified PETITION
b. HEARING AFTER DUE AND PERSONAL
NOTICE has been served in such manner
as the Commission shall direct, to:
a. all known persons against
whom the relief is sought and
b. also to the Chief Executive
or other public officials of the
province or city within which the
unlawful
acts
have
been
threatened
or
committed
charged with the duty to protect
the complainants property.
c. RECEPTION AT THE HEARING OF
THE TESTIMONIES OF WITNESSES
with
opportunity
for
crossexamination, in support of the
allegations of the complaint made
under oath as well as testimony in
opposition thereto
d. FINDING OF FACT of the Commission
to the effect that :
prohibited or unlawful acts
have been threatened and will
be committed, or have been
committed
and
will
be
continued unless restrained,
but no injunction or temporary
restraining order shall be
issued on account of any
threat, prohibited or unlawful
act,
except
against
the
persons,
association
or
organization making the threat
or committing the prohibited
or unlawful act or actually
authorizing or ratifying the
same after actual knowledge
thereof.
That
substantial
and
irreparable injury to the
complainants property will
follow
That as to each item of
relief to be granted, greater
injury will be inflicted upon
complainant by the denial of
the relief than will be inflicted
upon the defendants by the

granting of the relief
That complainants has no
adequate remedy at law
That public officers charged
with the duty to protect
complainants property are
unable or unwilling to furnish
adequate protection.
e. Posting of a BOND
IRREPARABLE INJURY: An injury
which
cannot
be
adequately
compensated in damages due to the
nature of the injury itself or the nature
of the right or property injured or when
there exists no pecuniary standard for
the measurement of damages.
ADEQUATE REMEDY: One that
affords relief with reference to the
matter in controversy and which is
appropriate
to
the
particular
circumstances of the case.
The power of the NLRC to enjoin
or restrain the commission of any or all
prohibited or unlawful acts under Art.
218 of the Labor Code can only be
exercised in a labor dispute.
REQUISITES BEFORE TRO MAY
BE ISSUED EX PARTE:
1. The complainant shall ALLEGE
THAT, unless a TRO is issued
without notice, a substantial
and
irreparable
injury
to
complaints property will be
unavoidable;
2. TESTIMONY UNDER OATH is
sufficient, if sustained, to justify
the Commission in issuing a
temporary
injunction
upon
hearing after notice;
3. The complainant shall first FILE
AN
UNDERTAKING
WITH
ADEQUATE SECURITY/BOND in
an amount to be fixed by the
Commission
sufficient
to
recompense those enjoined for
any loss, expenses or damage
caused by the improvident or
erroneous issuance of such order
or injunction, including all
reasonable costs, together with
LABOR LAW COMMITTEE

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a reasonable attorneys fee, and

expense of defense against the
granting of any injunctive relief
sought in the same proceeding
and subsequently denied by the
Commission.
The TRO shall be effective
for no longer than 20 days and shall
become void at the expiration of said
20 days counted from the date of the
posting of the bond.
It may be lifted or it may be
upgraded to a permanent injunction.
The
procedural
and
substantial requirements of Art 218
(e) must be strictly complied with
before an injunction may issue in a
labor dispute.
protection to labor. (Principe vs.

Philippine-Singapore Transport Services
Inc.)
THE FOLLOWING CAN ISSUE

INJUNCTIONS/ TRO IN LABOR DISPUTES:
after having EXPLAINED TO THEM

THE TERMS AND CONSEQUENCES
thereof.
1. President (ART. 263, g)

2. Secretary of Labor (ART. 263, g)
3. NLRC (218)
4. Labor Arbiters (ART. 217/RULE XI
Sec. 1 of IR&R)
5. Regional Directors
6. Med- Arbiters
ART. 219. OCULAR INSPECTION
The Chairman, any Commissioner,
labor Arbiter or their duly authorized
representatives may, at anytime during
working hours:
a. Conduct an ocular inspection on
any establishment, building,
ship,
place
or
premises,
including any work, material,
implement,
machinery,
appliance or any object therein;
and
b. Ask any employee, laborer, or
any person as the case may be
for any information or date
concerning
any
matter
or
question relative to the object
of the investigation
ART. 221. TECHNICAL RULES
NOT BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
The NLRC may disregard technical
rules of procedure in order to give life to
the constitutional mandate affording
RES JUDICATA applies only to

judicial or quasi-judicial proceedings and
NOT to the exercise of administrative
powers.
APPROVAL OF AN AMICABLE
SETTLEMENT BY A LABOR ARBITER
An amicable settlement of a labor
dispute should be approved by the labor
arbiter before whom the case is pending
after being satisfied that:
a. it was VOLUNTARILY ENTERED into
by the parties and
PURPOSE: for the employees

protectionbecause the labor arbiter
before whom the case is pending would
be in a better position than just any
other person to personally determine the
voluntariness of the agreement and
certify its validity (Periquet vs. NLRC).
The Rules of Court are applied in
a suppletory character.
COMPROMISE, as a way of
settling disputes is encouraged
through compromise, the
parties, by making reciprocal
concessions, avoid litigation
or put an end to one already
commenced.
ART. 222. APPEARANCES AND
FEES
APPEARANCE OF NON-LAWYERS
BEFORE THE COMMISSION:
GENERAL RULE: ONLY lawyers can
appear before the NLRC or a Labor
Arbiter
EXCEPTIONS:
Non-Lawyers can
appear ONLY in the following instances:
1. if they represent themselves;
LABOR LAW COMMITTEE

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2. if
they represent their
organization or
members
thereof; or
3. if he is a duly accredited
member of the legal aid office
duly recognized by the DOJ in
cases referred thereto by the
latter or by the IBP.
ATTORNEYS FEES:
1. Art. 111 Labor Code (simple
monetary claim)
The maximum amount to be
given a lawyer for his legal
assistance rendered which is 10% of
the total monetary award adjudged
the employees excluding the award
for moral and exemplary damages.
To demand more than this is
unlawful.
2. Art. 222
a.
Attorneys fees for CBA

negotiations and conclusion shall
be in the amount agreed upon by
the parties to be taken from the
union funds and not from
individual union members.
b. This article prohibits the

payment of attorneys fees only
where the same is effected
through forced contributions
from the workers form their own
funds as distinguished from union
funds.
c.
Neither the lawyer nor the

union itself may require the
individual workers to assume the
obligation to pay the attorneys
fees from their own pockets.
Any agreement to the contrary
shall be null and void.
ARTICLE 211 VS ARTICLE 222

ART. 211
Prohibits the
award
of
attorneys
fees
which exceed 10%
of the amount of
wages recovered.
ART. 222
Prohibits
the
payment
of
attorneys fees only
when it is effected
through
forced
contribution from the
workers from their
own
funds
as
PURPOSE: to
fix the limit on the
amount
of
attorneys
fees.
The
victorious
party may recover
in
any
administrative or
judicial
proceeding.
distinguished
from
union funds
PURPOSE:
to
prevent
the
imposition on the
workers of the duty
to
individually
contribute
their
respective shares in
the fee to be paid to
the attorney for his
services to the union.
CHAPTER III
APPEAL
ART. 223. APPEAL
GROUNDS FOR APPEAL:
1.If there is prima facie evidence of
abuse of discretion on the part of
the Labor Arbiter
2.If the decision, order or award was
secured through fraud or coercion,
including graft and corruption;
3.If made purely on questions of law;
and
4.If serious errors in the findings of
facts are raised which would cause
grave or irreparable damage or
injury to the appellant.
PERIODS
APPEAL:
WITHIN
WHICH
TO
A. decisions of the regional director:

within 5 calendar days from
receipt of the order [129 LC
Recovery of wages and simple
money claims of the amount not
exceeding P5,000.00].
B. decisions of the labor arbiter:
within 10 calendar days from
the receipt of the decision.
The appeal must be under oath
and must state specifically the
grounds relied upon and the
supporting arguments.
Where the 10th day falls on a
Saturday, Sunday
or
legal
holiday, the appeal may be filed
LABOR LAW COMMITTEE

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on the next business day. (Rules

of Procedure of NLRC)
PERIOD
TO
APPEALNOT
EXTENDIBLE
It is the policy of the state
to settle expeditiously labor
disputes.
The perfection of an appeal
within
the
statutory/
reglementary period is not
only mandatory but also
jurisdictional and failure to
do so renders the questioned
decision final and executory
as to deprive the appellate
court of jurisdiction to alter
the final judgment of the
RDs
and
LAs.
(Aboitiz
Shipping
Employees
Association vs. Trajano)
REQUISITES
FOR
THE
PERFECTION OF AN APPEAL TO THE
NLRC:
1. Filing
of
A
VERIFIED
MEMORANDUM OF APPEAL within
the required period of appeal;
2. In case of monetary award, when
the appellee is the employer he
should file an APPEAL BOND
corresponding to the monetary
award excluding awards for moral
and exemplary damages and
attorneys fees.
Where the employer
failed to post a bond to
perfect its appeal, the
remedy of the employee is a
motion
to
dismiss
the
appeal, NOT a petition for
mandamus.
The intention of the
lawmakers is to make the
bond
an
indispensable
requisite for the perfection
of an appeal by the
employer.
3. Appeal fee of P150;
4. Proof of service - furnish the
other party with a copy of the
memo of appeal.
Failure to give a copy of
the appeal to the appellee
within 10 days is not fatal IF
the
latter
was
not
prejudiced by the delay in

the service of said copy of
the appealtechnical rules
must yield to the broader
interest
of
substantial
justice. (Modern Fishing
Gear Labor Union vs. Noriel)
A mere notice of appeal
does not stop the running of
the reglementary period of
appeal.
EXECUTION PENDING APPEAL - the

decision of the labor arbiter ordering
the reinstatement of a dismissed or
separated
employee
shall
be
immediately executory insofar as the
reinstatement aspect is concerned and
the posting of an appeal bond by the
employer
shall
not
stay
such
execution.
There is no need for a
motion for the issuance of
writ of execution on the
reinstatement order as it is
self-executory.
(Pioneer
Texturizing Co. vs. NLRC)
Perfection of appeal within the
reglementary
period
is
both
MANDATORY
and
JURISDICTIONAL.
(ACDA vs NLRC; Volkschel vs NLRC)
Non-service of the copy of the
appeal/appeal memorandum to the
adverse party is not a jurisdictional
effect and does not justify dismissal of
the appeal.
AMOUNT OF APPEAL BOND: amount
equal to the monetary award exclusive
of damages (moral and exemplary) plus
attorneys fees.
OPTIONS OF THE EMPLOYER IN
COMPLYING WITH AN ORDER OF
REINSTATEMENT
WHICH
IS
IMMEDIATELY EXECUTORY:
1.He can ADMIT THE DISMISSED
employee back to work under the
same terms and conditions prevailing
prior to his dismissal or separation or
to a substantially equivalent position
LABOR LAW COMMITTEE

11
if the former position is already

filled up, OR
2.He can REINSTATE THE EMPLOYEE
MERELY IN THE PAYROLL WITH
PAYMENT
OF
THE
ACCRUED
SALARIES.
Failure to exercise one
of the foregoing options may
be compelled under pain of
contempt and the employer
may be made to pay instead
the salary of the employee.
ART 224.
EXECUTION
DECISIONS, ORDER, OR AWARDS
The decision of the Secretary of

Labor, the Commission, the Bureau or
Regional Director the Labor Arbiter, the
Med-Arbiter or the Voluntary Arbitrator
shall be final and executory after 10
calendar days from receipt thereof by
the parties and shall be executory
within ten (10) years.
The foregoing may, upon its
own initiative or on motion of
any interested party, issue a
writ of execution on a
judgment within 5 years from
the date it becomes final and
executory.
An independent action is
required for the execution of the
final judgement within the next
of following 5 years [ Phil.
National Railways vs NLRC (177
SCRA740, Sept. 19, 1989)]
The immediate execution of
judgment should be undertaken
only when the monetary award
had
been
carefully
and
accurately determined by the
NLRC and only after the
employer
is
given
the
opportunity to be heard and to
raise
objections
to
the
computation.
A petition for relief from the

decision of the labor arbiter must
strictly comply with 2 reglementary
periods:
1.The petition must be filed within 60
days from knowledge of the
judgment; and
2.The petition must be filed within a
fixed period of 6 months from entry
of such judgment.
Petitions filed beyond
said period will no longer be
entertained.
APPEAL FROM THE DECISION OF THE
NLRC:
No law allows an appeal from a
decision of the Secretary of Labor, or
the NLRC, or of a voluntary arbitrator.
In these cases, the special civil action of
certiorari, prohibition or mandamus
under Rule 65 of the Rules of Court may
be lodged with the Court of Appeals.
(St. Martins Funeral Home vs. CA)
No Motion for Reconsideration is
allowed for any order, decision
or award of a Labor Arbiter.
However
a
Motion
for
Reconsideration of a Labor
Arbiters decision, award or
order which has all the elements
of an appeal may be treated as
appeal.
Only
one
Motion
for
Reconsideration of the decision,
award
or
order
of
the
commission on appealed cases
before it.
OF
TITLE III
BUREAU OF LABOR RELATIONS
ART. 226.
RELATIONS
BUREAU
OF
LABOR
Pursuant to E.O. 126, the NATIONAL

CONCILIATION AND MEDIATION BOARD
(NCMB) has absorbed the conciliation,
mediation and voluntary arbitration
functions of the BLR.
Jurisdiction
over
labormanagement
problems
or
disputes is also exercised by
other offices such as the DOLE
regional offices, and the Office
of the Secretary, NLRC, POEA,
LABOR LAW COMMITTEE

12
OWWA, SSS-ECC, the regional

wage and productivity boards,
NWPC, and even the regular
courts
over
intra-corporate
disputes.
EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF THE BLR
-to act at its own initiative or upon
the request of either or both parties on
all:
1.INTRA- union conflicts
2.INTER- union conflicts
3.all DISPUTES, GRIEVANCES OR
PROBLEMS ARISING FROM OR
AFFECTING LABOR MANAGEMENT
RELATIONS IN ALL WORKPLACES
WHETHER AGRICULTURAL OR NONAGRICULATURAL.
The parties may however, by
agreement,
settle
their
differences by submitting their
case to a voluntary arbitrator
rather than taking the case to
the BLR.
CASES WHERE THE BLR HAS NO
JURISDICTION:
Those
arising
from
the
implementation or interpretation of
collective bargaining agreements which
shall be subject of grievance procedure
and/or voluntary arbitration.
INTRA-UNION DISPUTES refers to
any conflict between and among union
members, including grievances arising
from any violation of the rights and
conditions of membership, violation of or
disagreement over any provision of the
unions constitution and by-laws, or
disputes arising from chartering or
affiliation.
MED-ARBITER- an officer in the
regional office or bureau authorized to
hear,
conciliate,
and
decide
representation cases or assist in the
disposition of intra or inter-union
disputes.
COVERAGE
OF
INTER/INTRA-UNION
DISPUTES (Sec. 1 Rule XI DO 40-03)
a. cancellation of registration of a
labor organization filed by its
members or by any other labor
organization;
b. conduct of election of union and
workers
association
officers/nullification of election
of
union
and
workers
association officers;
c. audit/accounts examination of
union or workers association
funds;
d. deregistration of CBA;
e. validity/invalidity
of
union
affiliation or disaffiliation;
f. validity/invalidity
of
acceptance/non-acceptance for
union membership;
g. validity/invalidity
of
impeachment/
expulsion
of
union and workers association
officers;
h. validity/invalidity of voluntary
recognition;
i. opposition to application for
union and CBA registration;
j. violations of or disagreements
over any provision in a union or
workers association constitution
and by-laws;
k. disagreements over chartering or
registration
of
labor
organizations and CBAs;
l. violations of the rights and
conditions of union or workers
association membership;
m. violations of the rights of
legitimate labor organizations,
except interpretation of CBAs;
n. such other disputes or conflicts
involving the rights to selforganization, union membership,
and collective bargaining
1. between and among
legitimate
labor
organizations
2. between and among
members of a union or
workers association
EXTENDED COVERAGE (Section
DO 40-03)
Other related labor
disputes shall include any
between a labor organization
2 Rule XI
relations
conflict
and the
LABOR LAW COMMITTEE

13
employer or any individual, entity, or

group that is not a labor organization or
workers association. This includes:
1. cancellation of registration
of unions and workers
associations; and
2. a petition for interpleader
SPECIAL REQUIREMENTS AS TO THE
FILING OF CASES:
A. INVOLVING ENTIRE MEMBERSHIP
collective bargaining or to any other

conflict or dispute between legitimate
labor organizations based on any
violations of their rights as labor
organizations.
WHO
WHERE
FILED
1.The complaint must be signed by

at least 30% of the entire
membership of the union and
2.It must also show exhaustion of
administrative remedies.
B. INVOLVING A MEMBER ONLY - In such
case only the affected member may
file the complaint.
Redress must first be sought

within the union itself in
accordance with its constitution
and by-laws EXCEPT under any
of the following circumstances:
a. futility of intra-union remedies
b. improper expulsion procedure
c. undue delay in appeal as to
constitute
substantial injustice
d. the action is for damages
e. lack of jurisdiction of the
investigating body
f. action of the administrative
agency is
patently illegal,
arbitrary, and oppressive
g. issue is purely a question of law
h. where the administrative agency
had already
prejudged the
case
i. where the administrative agency
was
practically
given
the
opportunity to act on the case but it
did not.
Imposition of fees by the union

affects the entire membership,
therefore it requires that the
complaint should be signed by at
least 30% of the membership of
the union.
INTER-UNION DISPUTES -refers to any

conflict between and among legitimate
labor
organizations
involving
representation questions for purposes of
FORMAL
REQUIREMENTS
1. For grounds under Sec. 1:

a. any LLO
b. member(s) thereof
specially concerned
2. For grounds under Sec. 2any
party-in-interest
1. Regional Office that issued its
certificate of registration or
certificate of creation of
chartered local- If it involves labor
unions with independent
registrations, chartered locals,
workers association, its officers
or members
2. Directly with the BureauIf it
involves a Federation/National
Unions/Industry Unions, its
officers or members
1. in writing
2. verified under oath
3. contains the following
averments
a. name, address and other
personal circumstances of the
complainant(s) or petitioner(s);
b. name, address and other
personal circumstances of the
respondent(s)
or
person(s)
charged;
c. nature of the complaint or
petition;
d. facts and circumstances
surrounding the complaint or
petition;
e. cause(s) of action or specific
violation(s) committed;
f. a statement that the
administrative remedies provided
for in the constitution and by-laws
-have been exhausted or
-such remedies are not
readily available to the
complainant(s) or
petitioner(s) through no fault
of his/their own or
-compliance with such
administrative remedies does
not apply to complainant(s) or
petitioner(s);
g. relief(s) prayed for;
h. certificate of non-forum
shopping; and
i. other relevant matters
EFFECTS OF FILING/PENDENCY OF
INTER/INTRA-UNION
DISPUTE
AND
OTHER LABOR RELATIONS DISPUTES
(Section 3 Rule XI DO 40-03)
- The rights, relationships and obligations of
the parties litigants against each other and
other parties-in-interest prior to the
LABOR LAW COMMITTEE

14
institution of the petition shall continue to

remain during the pendency of the petition
and until the date of finality of the decision
rendered therein. Thereafter, the rights,
relationships and obligations of the parties
litigants against each other and other partiesin-interest shall be governed by the decision
so ordered.
- The filing or pendency of any inter/intraunion disputes is not a prejudicial question to
any petition for certification election and
shall not be a ground for the dismissal of a
petition for certification election or
suspension of proceedings for certification
election.
SUMMARY
OF
RULES
ON
INTRA/INTER-UNION DISPUTES (Rule XI
DO 40-03)
MODES OF APPEAL IN INTRA/INTERUNION DISPUTES (Rule XI DO 40-03)
1. Under oath
HOW (formal
2. Consist of a
requirements)
PERIOD
TO WHOM
APPEALABLE
WHERE FILED
memorandum of appeal
3. Based on either of
the following grounds:
a. Grave abuse of
discretion
b. Gross violation
of the Rules
4. With supporting
arguments and evidence
Within 10 days from
receipt of decision
1. Bureau of Labor
Relationsif the case
originated from the Med
Arbiter/Regional
Director
2. Sec. Of Laborif the
case originated from the
Bureau
Regional Office or to
the BLR, where the
complaint originated
(records are transmitted
to the BLR or Sec.
Within 24 hours from
receipt of the
memorandum of appeal)
DETERMINATION OF
EMPLOYEE RELATIONSHIP:
-
EMPLOYER-
labor-management relations in all

workplaces, necessarily, in the
exercise of this jurisdiction over
labor-management relations, the
Med-Arbiter has the authority,
original
and
exclusive,
to
determine the existence of an
employer-employee
relationship.
(MY San Biscuits, Inc. vs. Laguesma
G.R. No. 9511, 22 April 1991)
In cases where there is

overlapping
of
jurisdiction,
determine the principal issue.
The agency that has jurisdiction
thereon may decide on the
incidental issues.
ADMINISTRATIVE FUNCTIONS OF THE

BLR:
1.The REGULATION OF REGISTRATION
of the labor unions;
2.The KEEPING OF A REGISTRY of
labor unions;
3.The maintenance of a FILE OF CBAS.
ART.
227.
COMPROMISE
AGREEMENTS; and
4. The maintenance of a file of all
settlements or final decisions of the
Supreme Court, Court of Appeals,
NLRC and other agencies on labor
disputes.
REQUIREMENTS:
a. must be freely entered into;
b. must not be contrary to law, morals
or public policy; and
c. must be approved by the authority
before whom the case is pending [see
discussion on article 221approval of
labor
arbiter
of
an
amicable
settlement in a case before him.
May be effected at any stage
of the proceedings and even
when there is already a final
executory judgment (2040 NCC).
Cannot be entered into when
the final judgment is already in
the
process
of
execution.
(Jesalva vs. Bautista)
Since the BLR has the original and

exclusive jurisdiction to decide,
inter alia, all disputes, grievances or
problems arising from or affecting
LABOR LAW COMMITTEE

15
FORMAL REQUIREMENTS OF A VALID

COMPROMISE AGREEMENT:
1. in writing
2. signed in the presence of the regional
director
or
his
duly
authorized
representative.
WITH vs. WITHOUT ASSISTANCE OF
DOLE-COMPROMISE AGREEMENTS
Without assistance
With the
of DOLE
assistance of
DOLE
a.
VALIDITY/BINDING
EFFECT
- Valid and binding - Valid and binding
upon the parties
upon the parties
b. REPUDIATION
Can
be - Can no longer be
repudiated by the repudiated
parties by going to becomes final and
the Commission
binding upon the
parties upon
NOTE: ULP cases execution EXCEPT
are not subject to a. in case of non
compromise.
compliance
with the
compromise
agreement;
or
if there is
prima facie
evidence that the
settlement was
obtained through
fraud,
misrepresentation
, or coercion
OPTIONS
WHEN
COMPROMISE
AGREEMENT IS VIOLATED:
1. enforce compromise by writ of
execution
2. regard it as rescinded and insist upon
original demand.
REQUIREMENTS
QUITCLAIM:
OF
VALID
1.
The
quitclaim
must
be
VOLUNTARILY ARRIVED at by the
parties;
2. It must be WITH THE ASSISTANCE of
the Bureau of Labor Standards,
Bureau of Labor Relations or any
representative of the DOLE; and
3. The CONSIDERATION MUST BE

REASONABLE (required only when
entered without the assistance of
DOLE)
Dire necessity is not an

acceptable ground for annulling
the releases, especially in the
absence of proof that the
employees were forced to
execute them. (Veloso vs. DOLE)
WAIVER OF REINSTATEMENT like

waivers of money claims, a waiver of
reinstatement must be regarded as a
personal right which must be
exercised personally by the workers
themselves. (Jag & Haggar Jeans and
Sportswear Corp. vs. NLRC)
ART 231. REGISTRY OF UNIONS

AND
FILE
OF
COLLECTIVE
AGREEMENT
The CBA is more than a contract,

it is highly impressed with public
interest for it is an essential
instrument to promote industrial
peace.
Must be filed directly with the
Bureau or the Regional Offices of
DOLE within thirty (30) days
from execution.
An UNREGISTERED CBA does not
bar
certification
election
[contract bar rule will not apply
in the absence of registration.
[See discussion on Arts. 253 &
253-A]
Registration of the CBA is not a

requisite for its validity.
LIBERTY FLOUR MILLS EMPLOYEES v.
LFM, INC. 180 SCRA 668
The certification of the CBA by the
BLR is not required to put a stamp of
validity to such contract. Once it is duly
entered into and signed by the parties, a
CBA becomes effective as between the
parties regardless of whether or not the
same has been certified by the BLR.
LABOR LAW COMMITTEE

16
ART 232. PROHIBITION

CERTIFICATION ELECTION
CONTRACT BAR RULE: provides that

while a valid and registered CBA is
subsisting for a fixed period of 5 years ,
the Bureau is not allowed to hold an
election contesting the majority status
of the incumbent union except during
the sixty (60) day period immediately
prior to its expiration, which period is
called the freedom period.
The existence of the CBA bars the
holding of an inter-union electoral
contest and the filing of the Petition for
Certification Election except within the
freedom period.
PURPOSE:
politicking
comes.
to
until
minimize
union
the proper time
ART
233.
COMMUNICATION
PRIVILEGED
PRIVILEGED
COMMUNICATION:
Any
statement of such privacy that the law
exempts the person receiving the
information from the duty to disclose it.
Information and statements made at
conciliation proceedings shall be treated
as privileged communication and shall
not be used as evidence in the
Commission.
TITLE IV
ON
Conciliators and similar officials

may not testify in any court or
body regarding any matters
taken
up
at
conciliation
proceedings conducted by them.
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND CANCELLATION
ART. 234. REQUIREMENTS OF

REGISTRATION
LABOR ORGANIZATION - Any union or
association of employees which exists in
whole or in part for the purpose of:
a. collective bargaining or
b. of dealing with employer
concerning terms and conditions of
employment.
It is the agent of the
employees of an appropriate
bargaining unit.
PRINCIPLE OF AGENCY APPLIED
Principal employees
Agent local/chapter
Agent of agent federation
LEGITIMATE LABOR ORGANIZATION or
LABOR UNION
any labor organization duly registered
with the Department of Labor and
Employment, and Bureau of Labor
Relations.
Not every legitimate labor

organization
can
act
as
bargaining representative and be
certified as such. This is true
only of a union that has won in
certification election or has been
voluntarily recognized by the
employer.
PURPOSE OF FORMATION OF LABOR

UNIONS: for securing a fair and just
wages and good working conditions for
the laborers; and for the protection of
labor against the unjust exactions of
capital
LABOR LAW COMMITTEE

17
MODES OF ACQUIRING LEGITIMACY FOR

LABOR ORGANIZATIONS
1. Registration with the BLR
(Independent Union)
2. Affiliation with a legitimate labor
federation
[REGISTRATION REQUIREMENTS FOR
LABOR ORGANIZATIONS (as amended by
DO 40-03)]
3. Application for registration
4. Attachments
name of the applicant labor
union, its principal address;
the name of its officers and their
respective addresses;
o
approximate
number
of
employees in the bargaining
unit where it seeks to
operate, with a statement
that it is not reported as a
chartered local of any
federation or national union;
the
minutes
of
the
organizational
meeting(s)
and the list of employees
who participated in the said
meeting(s);
the name of all its members

comprising at least 20% of
the
employees
in
the
bargaining unit;
the annual financial reports

if the applicant has been in
existence for one or more
years, unless it has not
collected any amount from
the members, in which case
a statement to this effect
shall be included in the
application;
the applicants constitution

and by-laws, minutes of its
adoption or ratification, and
the list of the members who
participated in it. The list of
ratifying members shall be
dispensed with where the
constitution and by-laws was
ratified or adopted during
the organizational meeting.

In such a case, the factual
circumstances
of
the
ratification shall be recorded
in the minutes of the
organizational meeting(s).
(These
are
called
reportorial
requirements)
The application for registration of
labor unions xxx, shall be certified under
oath by its Secretary or Treasurer, as the
case may be, and attested by its
president.
The attachments must now be in
one(1) original copy and two (2)
duplicate copies which shall accompany
the application or notice, and submitted
to the Regional Office or the Bureau.
A prescribed registration fee must be
paid before the issuance of the
certificate of registration
Where
to
registration:
file
application
for
1. For registration of independent labor

unions, chartered locals, workers
associations shall be filed with the
Regional office where the applicant
principally operates. It shall be
processed by the Labor Relations Division
at the Regional office.
2. Applications for registration of
federations, national unions or workers
associations operating in more than one
region shall be filed with the bureau or
the regional offices, but shall be
processed by the bureau.
MINISTERIAL DUTY OF THE BLR
COMPELLABLE BY MANDAMUS- to
review the application for registration
and not the issuance of a Certificate of
Registration.
- After a labor organization had filed
the necessary papers and documents for
registration, it becomes mandatory for
the BLR to check if the requirements
under Article 234 have been sedulously
complied with. If its application for
registration is vitiated by falsification
LABOR LAW COMMITTEE

18
and serious irregularities, especially

those appearing on the face of the
application
and
the
supporting
documents, a labor organization should
be denied recognition as a legitimate
labor
organization.
(Progressive
Development Corporation-Pizza Hut vs.
Laguesma et al., GR No. 115077, April
18, 1997)
PURPOSE OF REGISTRATION Registration with the BLR is the

operative act that gives rights to a labor
organization.
It is the fact of being registered

with the DOLE that makes a
labor organization legitimate in
the sense that it is clothed with
legal personality to claim
representational and bargaining
rights enumerated in Article 242
or to strike or picket under
Article 263.
The requirement of registration
is NOT a curtailment of the
right to association. It is merely
a condition sine qua non for the
acquisition of legal personality
by
labor
organizations,
associations or unions and the
possession of the rights and
privileges granted by law to
labor organizations.
A valid exercise of police power
since the activities in which
labor organizations, associations,
or unions of workers are engaged
affect public interest, which
should be protected. (PAFLU vs.
Sec. Of Labor)
FEDERATION- any labor organization

with at least 10 locals/chapters or
affiliates each of which must be duly
certified or recognized as the sole and
exclusive collective bargaining agent of
the employer they represent.
REQUIREMENTS
BEFORE
FEDERATION CAN BE ISSUED
CERTIFICATE OF REGISTRATION:
A
A
Aside from the application, which

must be accompanied
with the
requirements for registration of a labor
registration, the application should also

be accompanied by the following:
1. Proof of affiliation of at least 10
locals or chapters, each of which
must be a duly recognized sole and
exclusive collective bargaining agent
in the establishment or industry in
which it operates, supporting the
registration
of
such
applicant
federation or national union;
2. The names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.
A LOCAL UNION MAY AFFILIATE WITH
A FEDERATION - The procedure of
affiliation would depend on whether the
union is independently registered or not.
REQUIREMENTS OF AFFILIATION (as
amended by DO 40-03)
1. Report of affiliation of
independently registered labor union
2. Attachments:
a. resolution of the labor unions
board of directors approving the
affiliation;
b. minutes
of
the
general
membership meeting approving
the affiliation;
c. the total number of members
comprising the labor union and
the names of members who
approved the affiliation;
d. the certificate of affiliation
issued by the federation in favor
of the independently registered
labor union; and
e. written notice to the employer
concerned if the affiliating union
is the incumbent bargaining
agent.
A union of supervisory employees may
affiliate with a national federation of
labor organizations of rank and file
employees PROVIDED that:
a. the federation is not actively
involved in union affairs in the
company; and
b. the rank and file employees are not
directly under the control of the
supervisors
LABOR LAW COMMITTEE

19
ONCE AFFILIATED, A LOCAL

UNION MAY DISAFFILIATE FROM THE
FEDERATION.
INDEPENDENT
REGISTRATION
CHARTERING
Obtained
by union
organizers
in
an
enterprise
through
their own
action
A
duly
registered
federation/n
ational union
issues
a
charter to a
union in an
enterprise
and registers
the
charter
with
the
regional
office or the
BIR.
Independent
union
Chapter/local
With legal
personalit
y of its
own
No
legal
personality of
its own as
long as it has
not
availed
itself
of
independent
registration.
Applicatio
n
for
registratio
n is filed
with and
will
be
acted
upon by
the DOLE
regional
office
where the
applicant
s principal
office is
located.
Charter
certificate is
issued by a
federation or
national
union is filed
with
the
regional
office or BLR
with 30 days
after
the
issuance
of
the
charter
certificate.
LABOR LAW COMMITTEE

20
INDEPENDENTLY
REGISTERED
of
-by application of the union

with the federation for the
issuance
of
a
charter
certificate to be submitted to
the Bureau accompanied by
the following:
a. Copies of its constitution
and by-laws
b. Statement of the set of
officers and
Books of accounts, all of
which must be certified by
the Secretary/Treasurer and
attested to by the President.
In such case, the union
becomes a local chapter of
the Federation.
b. EFFECT OF
DISAFFILIATION
TO THE UNION
[local]
- would not affect its being a

legitimate labor organization
and
therefore
it
would
continue
to
have
legal
personality and to possess all
the rights and privileges of a
legitimate labor organization.
upon severance, it would

cease to be a legitimate labor
organization and would no
longer have legal personality
and the rights and privileges
granted by law to legitimate
organization, unless the local
chapter is covered by a duly
registered
collective
bargaining agreement. In the
latter case, the local or
chapter will not lose its legal
personality
until
the
expiration of the CBA. After
the CBA expires it will lose its
legal personality unless i t
registers as an independent
union.
c. EFFECT OF
DISAFFILIATION
TO THE CBA
- an existing CBA would

continue to be valid as the
labor
organization
can
continue administering the
CBA
The CBA would continue to be

valid. The local chapter will
not lose its personality until
the expiration of the CBA.
After the CBA expires the
local
union
looses
its
personality, unless it registers
anew.
a.HOW
AFFILIATE
TO
-by signing
affiliation
contract
UNREGISTERED
LABOR LAW COMMITTEE

21
d. ENTITLEMENT
TO UNION DUES
AFTER
DISAFFILIATION
-labor organization is entitled

to the union dues and not the
federation from which the
labor
organization
disaffiliated.
WHEN TO DISAFFILIATE
GENERAL RULE: A labor union may

disaffiliate from the mother union to
form an independent union only during
the
60-day
freedom
period
immediately preceding the expiration of
the CBA.
EXCEPTION:
MAJORITY
DISAFFILIATION
BY
This happens when there is a

substantial shift in allegiance on
the part of the majority of the
members of the union. In such
a case, however, the CBA
continues to bind the members
of the new or disaffiliated and
independent union up to the
CBAs expiration date.
LIMITATION: disaffiliation should be in

accordance
with
the
rules
and
procedures stated in the Constitution
and by-laws of the federation.
A prohibition to disaffiliate in
the Federations constitution or
by-laws is validintended for its
own protection.
REVOCATION OF CHARTER BY THE

FEDERATION
by
serving
the
local/chapter a verified notice of
revocation, copy furnished the Bureau on
the ground of disloyalty or such other
grounds as may be specified in its
constitution or by-laws.
The revocation shall divest the

local chapter of its legal
personality upon receipt of the
notice by the Bureau, unless in
the meantime the local chapter
has
acquired
independent
registration. (Rule VIII Section 5
of the IRR)
WORKERS ASSOCIATION: Association

of workers for the mutual aid and
protection of its members or for any
legitimate purpose other than collective
bargaining.
ART. 236. DENIAL OF REGISTRATION;
APPEAL
- Decisions of the BLR denying the
registration of a labor organization is
appealable to the Secretary of Labor
within 10 calendar days from receipt of
the decision, on grounds of:
- union dues may no longer

be collected as there would
no longer any labor union that
is allowed to collect such
union
dues
from
the
employees.
Note: Follow the principle of
agency between federati on
and local.
Principal employees
Agent local/chapter
Agent of agent federation
a. grave abuse of discretion; or

b. gross incompetence
even before the onset of the
freedom period, disaffiliation may
still be carried out, but such
disaffiliation must be effected by a
majority of the union members in
the bargaining unit.
decision of the regional office or the

bureau denying the application for
registration shall be:
1. in writing
2. stating in clear terms the reason for
the decision
3. applicant union must be furnished a
copy of said decision
LABOR LAW COMMITTEE

22
ART. 238. CANCELLATION

REGISTRATION; APPEAL
OF
The certificate of registration of

any legitimate labor organization shall
be cancelled by the BLR if it has reason
to believe, after due hearing, that the
said labor organization no longer meets
one or more of the requirements
prescribed by law.
GROUNDS FOR CANCELLATION:
1. Failure to comply with any of the
requirements prescribed under
Arts. 234
(requirements for
registration of a labor union) &
237 (addl. reqts. federation
registration) of the Code.
2. Violation of any of the provisions
of Art. 239 (grounds for
cancellation
of
union
registration) of the Code
3. Commission of any of the acts
enumerated under Art. 241
(rights
and
conditions
of
membership) of the code- No
petition for cancellation based
on this ground 0may be granted
unless supported by at least 30%
of all the members of the
respondent labor organization or
workers association.
A pronouncement as to
the illegality of the
strike is not within the
meaning of Art. 239 of
the Code which provides
for the grounds for
cancellation of union
registration.
MODES OF APPEAL
DENIAL or CANCELLATION BY:
A. Regional Office
transmit records within 24
hours from receipt of Memo of
Appeal
BUREAU decides within 20
days from receipt of records
SUPREME COURT- Rule 65
B. Bureau
transmit records within 24
hours from receipt of memo
of appeal
SEC. OF DOLE decides within
20 days from receipt of
records
SUPREME COURT- Rule 65
*Appeal by memo of appeal
within 10 days from receipt of
notice.
GROUNDS:
1. Grave abuse of discretion
2. Violation of rules as
amended.
EFFECT OF CANCELLATION OF
REGISTRATION IN THE COURSE OF
PROCEEDINGS
- Where a labor union is a party
in a proceeding and later it loses its
registration permit in the course or
during the pendency of the case, such
union may continue as a party without
need of substitution of parties, subject
however to the understanding that
whatever decision may be rendered
therein will be binding only upon those
members of the union who have not
signified their desire to withdraw from
the case before its trial and decision on
the merits. [Principle of Agency
appliedthe
employees
are
the
principals, and the labor organization is
merely an agent of the former,
consequently, the cancellation of the
unions registration, would not deprive
the consenting member-employees of
their right to continue the case as they
are the considered as the principals]
LABOR LAW COMMITTEE

23
ART
239.
CANCELLATION
REGISTRATION
GROUNDS
FOR
OF
UNION
GROUNDS FOR CANCELLATION OF

UNION REGISTRATION:
A. FRAUDULENT ACTS
1. Misrepresentation, False statement
or Fraud in connection with
[RATIFICATION
OF
CONSTI/BYLAWS]:
a. the
ADOPTION
OR
RATIFICATION
of
the
constitution and by-laws or
amendments thereto,
b. the MINUTES of ratification,
and
c. the LIST OF MEMBERS who took
part in the ratification.
2. Misrepresentation, false statement
or fraud in connection with the
[ELECTION PAPERS]:
a.
b.
ELECTION of officers,
MINUTES of the election of
officer and the list of voters, or
c. failure
to
submit
these
documents together with the list of
the
newly
elected/appointed
officers and their postal addresses
within 30 days from election
B. INACTION OR OMISSION
1.
Failure to submit the following

documents
[RATIFICATION OF
CONSTI/BY-LAWS]:
a. the adoption or ratification of
the constitution and by-laws or
amendments thereto,
b. the minutes of ratification, and
the list of members who took
part in the ratification
*Within 30 days from adoption or
ratification of the constitution and
by-laws or amendments thereto.
2. Failure to submit the Annual
Financial report to the Bureau within
30 days after the closing of every
fiscal year and misrepresentation,
false entries and fraud in the
preparation of the financial report

itself;
3. Failure to submit a LIST OF
INDIVIDUAL MEMBERS of the Bureau
once a year or whenever required by
the Bureau; and
4. Failure
to
comply
with
the
REQUIREMENTS UNDER ARTICLES
237.
C. UNLAWFUL ACTS
1.
Acting as a labor contractor or
engaging in the CABO SYSTEM, or
otherwise engaging in any activity
prohibited by law;
2. Entering into collective bargaining
agreements which provide terms and
conditions of employment below
minimum standard established by
law
[CBA-BELOW
MINIMUM
STANDARDS];
(Sweetheart
Agreements)
3.
Asking for or ACCEPTING
ATTORNEYS FEES OR NEGOTIATION
FEES from the employers;
4. Other than for mandatory activities
under this Code, checking off special
assessment or any other fees without
duly signed individual written
authorization of the members
[UNLAWFUL ASSESSMENTS];
CANCELLATION OF REGISTRATION
A. FOR:
1. Legitimate individual labor
union.
2. Chartered local
3. Workers association
WHERE TO FILE
Regional Director who has
jurisdiction over the place
where respondent principally
operates (30 days to decide).
WHO MAY FILE

Any party in interest, if ground
is:
a. Failure to comply with any of
the requirements under Arts.
234, 237 and 238 LC
b. Violation of any provision under
Art. 239, LC
Take note of the cancellation
proceedings if violation is D and
J of Art. 239, LC
LABOR LAW COMMITTEE

24
B. FOR:
1. Federations
2. National or Industry unions
3. Trade union centers
WHERE TO FILE
Bureau Director ( 30 days to
decide)
WHO MAY FILE

Only the members of the
Labor Organization concerned
if grounds are actions
involving violations of Art.
241, subject to the 39% rule
REPORTING REQUIREMENTS OF LABOR

UNIONS AND WORKERS ASSOCIATIONS
(Rule V DO 40-03)
- It shall be the duty of every legitimate
labor union and workers association to
submit to the Regional Office or Bureau
which
issued
its
certificate
of
registration or certificate of creation of
chartered local, as the case may be, two
(2) copies of each of the following
documents:
a. any
amendment
to
its
constitution and by-laws and the
minutes
of
adoption
or
ratification of such amendments,
within 30 days from its adoption
or ratification;
b. annual financial reports within
30 days after the close of each
fiscal or calendar year;
c. updated list of newly-elected
officers, together with the
appointive offices or agents who
are entrusted with the handling
of funds, within 30 days after
each regular or special election
of officers, or from the
occurrence of any change in the
officers of agents of the labor
organization
or
workers
association
d. updated
list
of
individual
members of chartered locals,
independent unions and workers
associations within 30 days after
the close of each fiscal year; and
e. updated list of its chartered
locals and affiliates or member
organizations, CBAs executed

and their effectivity period, in
the case of federations or
national unions, within 30 days
after the close of each fiscal
year, as well as the updated list
of
their
authorized
representatives,
agents
or
signatories in the different
regions of the country.
RULES
ON
ADMINISTRATIVE
CANCELLATION OF CERTIFICATE OF
REGISTRATION OF LLOs DUE TO NONCOMPLIANCE WITH THE REPORTORIAL
REQUIREMENTS:
WHEN
PROPER
Failure to comply with its

legal duty to submit the
documents required to
be submitted under Rule
V of DO 40-03 for 5
consecutive years
WHO MAY
FILE THE
PETITION
1. Motu propio by the

Bureau
2. Any party-in-interest
THREENOTICE
REQUIRE
MENT
1st Notice
Bureau
shall
send
by
registered mail with return
card notice for compliance
indicating the documents it
failed to submit and the
corresponding period in
which they were required,
with notice to comply with
the
said
reportorial
requirements and to submit
proof thereof to the Bureau
within 10 days from receipt
thereof
2nd Notice
Where no response is
received by the Bureau
within 30 days from the
release of the 1st notice,
another
notice
for
compliance shall be made
by the Bureau, with warning
that failure on its part to
comply with the reportorial
requirements within the
time specified shall cause
the continuation of the
proceedings
for
the
administrative cancellation
of its registration
3rd Notice
Where no response is again
LABOR LAW COMMITTEE

25

within 30 days from release
of the 2nd notice, the
Bureau shall cause the
publication of the notice of
cancellation of registration
of the labor organization in
2 newspapers of general
circulation.
When
no
response
is
within 30 days from the
date of publication or when
the Bureau has verified the
dissolution of the labor
organization, it shall order
the
cancellation
of
registration of the labor
organization AND cause its
de-listing from the roster of
legitimate
labor
organizations
c. to require adequate records of

income and expenses;
d. to access financial records;
e. to
vote
on
officers
compensation;
f. to vote on special assessment;
g. to be deducted a special
assessment
only
with
the
members written authorization.
4. Right to Information - the right to
be informed about:
a. the
organizations
constitution and by- laws,
b. the collective
bargaining
agreement, and labor laws.
CHAPTER II
RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION
ART. 241. RIGHTS AND CONDITIONS
OF
MEMBERSHIP
IN
A
LABOR
ORGANIZATION
GENERAL GROUPINGS OF
RIGHTS OF THE UNION MEMBERS:
THE
1. Political right - the right to vote and

be voted for, subject to lawful
provisions on qualifications and
disqualifications.
2. Deliberative and Decision-Making
Right - the right to participate in
deliberations
on
major
policy
questions and decide them by secret
ballot.
3. Rights Over Money Matters - the
right of the members:
a. against imposition of excessive
fees;
b. right
against
unauthorized
collection of contributions or
unauthorized disbursements;
Any violation of the above rights

and conditions of membership
shall
be
a
ground
for
cancellation of union registration
or expulsion of an officer from
office, whichever is appropriate.
At least 30% of all the members
of the union or any member or
members specifically concerned
may report such violation to the
Bureau.
PERSONS WHO ARE PROHIBITED

FROM BECOMING MEMBERS/OFFICERS
OF A LABOR ORGANIZATION UNDER THE
LABOR CODE (see also notes under Art.
243 on persons who are not granted the
right to self-organization):
1. Subversives or those engaged in
subversive
activities [Art.241
(e)]
2. Persons who have been convicted
of a crime involving moral
turpitude shall not be eligible for
election as union officer or for
appointment to any position in the
union. [Art. 241 (f)]
In general, a
select its own
person has an
membership in
union is free to
members, and no
absolute right to
a union.
LIMITATIONS [see discussion on union

security arrangements under Art. 248]:
a. The labor org. cannot compel
employees to become members of
LABOR LAW COMMITTEE

26
their labor organization if they are

already member of rival union.
b.
persons mentioned in Art. 241(e)

[subversives] of the labor code
are prohibited from becoming a
member a labor organization.
c. members of religious organization

whose
religion
forbade
membership in labor organization
could not be compelled into union
membership.
REQUIREMENTS IN MAKING SPECIAL
ASSESSMENTS
or
OTHER
EXTRAORDINARY FEES (Art. 241 [n]):
1.there
must
be
a
WRITTEN
RESOLUTION
2.he resolution must have BEEN
APPROVED BY A MAJORITY of all
the members
3.the approval must be AT A GENERAL
MEMBERSHIP MEETING DULY called
for that purpose
The secretary of the organization

shall record the minutes of the
meeting including:
a. the list of all members present,

b. the votes cast, and
c. the purpose of the assessment or
fees
The record shall be attested by

the President.
Substantial compliance to the

aforementioned procedure is not
enoughthe requirements must
be strictly complied with in view
of the fact that the special
assessment will diminish the
compensation of union members.
(Palacol et. al vs. Ferrer-Calleja
et. al)
CHECK-OFF - a method of deducting

from an employees pay at prescribed
period, the amounts due to the union for
fees, fines or assessments.
NATURE AND PURPOSE OF CHECK-OFF:

to facilitate the collection of
dues necessary for the unions
life and sustenance.
Union dues are the lifeblood of

the union.
REQUIREMENTS WITH REGARD

CHECK-OFFS (Art. 241 [o]):
TO
NO special assessment, attorneys

fees, registration fees or any other
extraordinary fees may be checked off
from any amount due an employee
WITHOUT
an
individual
written
authorization duly signed by the
employee.
The authorization
state the:
should
specifically
a. amount
b. purpose and the beneficiary
of the deduction.
Jurisdiction over check-off disputes is
with the Regional Director of the DOLE,
not the Labor Arbiter
UNION DUES VS. AGENCY FEE
UNION DUES
AGENCY FEE
a. DEDUCTED FROM
- members of a
union
for
the
payment of union
dues.
b. CONSENT
May
not
be
deducted from the
salaries of the union
members
without
the written consent
of
the
workers
affected
- non-members of the
bargaining
agent
(union)
for
the
enjoyment of the
benefits under the
CBA.
- May be deducted
from the salary of
employees
without
their consent.
Agency fee cannot be imposed on

employees already in the service and are
members of another union. If a closed
shop agreement cannot be applied to
them, neither may an agency fee, as a
lesser form of union security, be
imposed to them. (NABAILU vs. San
Miguel Brewery Inc)
LABOR LAW COMMITTEE

27
EXCEPTION TO THE REQUIREMENT

OF
INDIVIDUAL
WRITTEN
AUTHORIZATION:
CHAPTER III
RIGHTS OF LEGITIMATE LABOR
ORGANIZATIONS
1.For mandatory activities provided

under the Code; and
2.When non-members of the union
avail of the benefits of the CBA.
- said non-members may be assessed
union dues equivalent to that paid by
members
- only by a Board Resolution
approved by majority of the members in
a general meeting called for the purpose
Will
the
employees-members
of
another union not be considered as
free riders?
ART. 242. RIGHTS OF LEGITIMATE

LABOR ORGANIZATIONS
RIGHTS OF A LEGITIMATE LABOR
ORGANIZATION [USERFOE]:
1.Undertake activities for benefit of
members
2.Sue and be sued
3.Exclusive representative of all
employees
4.Represent union members
5.Furnished by employers of audited
financial statements
6.Own properties
7.Exempted from taxes
No since when the union bids to be the

bargaining agent, it voluntarily assumes
the responsibility of representing all
employees in the appropriate bargaining
unit.
SPECIAL ASSESSMENT vs. CHECK-OFF
SPECIAL
ASSESSMENTS
CHECK-OFF
a. HOW APPROVED
-by written resolution
approved by majority
of all the members at
a meeting duly called
for that purpose
(Union Dues)
-by
obtaining
the
individual
written
authorization
duly
signed
by
the
employee which must
specify:
a. amount
b. purpose and
c. beneficiary
of
the deduction.
(Agency Fees)
-not necessary if:
1.
For
mandatory
activities
provided
under the Code; and
2. When non-members
of the union avail of
the benefits of the
CBA.
Said
nonmembers
may
be
assessed agency fees
equivalent to that
paid by members only
by a Board Resolution
approved by majority
of the members in a
general
meeting
called
for
the
purpose.
b.
EXCEPTION TO
SUCH REQUIREMENT
-no exceptionwritten
resolution
is
mandatory
at
all
instances.
TITLE V
COVERAGE
ART. 243. COVERAGE AND
EMPLOYEES RIGHT TO SELF
ORGANIZATION
PERSONS/EMPLOYEES ELIGIBLE TO
JOIN A LABOR ORGANIZATION FOR
PURPOSES
OF
COLLECTIVE
BARGAINING:
1.
All
persons
employed
in
commercial,
industrial
and
agricultural (CIA) enterprises, and
2. In religious, charitable, medical or

educational (RCME) institutions
whether operating for profit or not
PERSONS/EMPLOYEES ELIGIBLE TO
JOIN A LABOR ORGANIZATION FOR
MUTUAL
AID
AND
PROTECTION
(AIRSIW):
1. Ambulant,
2. Intermittent,
3. Rural,
4. Self-employed people
5. Itinerant workers and
6. Workers without any definite
employers,
LABOR LAW COMMITTEE

28
PERSONS/EMPLOYEES WHO ARE NOT

GRANTED THE RIGHT TO SELFORGANIZATION: (HEMACEN)
1. High-level government employees
(E.O. 180 Sec. 3) (MANAGERIAL
GOVERNMENT EMPLOYEES)
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS WITH
AN ORIGINAL
CHARTER
a. LAW
- Employees cannot stage
strikes since they are
governed by the Civil
Service Law. They are
enjoined by Civil Service
Memorandum
Circular
No. 6, under pain of
administrative sanctions
from
staging
strikes,
demonstrations,
mass
leaves, walkouts and
other
concerted
activities.
b. BARGAINING RIGHTS
- Corporations with
original charters
cannot bargain with
the government
concerning the terms
and conditions of
their employment.
However, they can
negotiate with the
government on those
terms and conditions
of employment which
are not fixed by law.
Thus, they have
limited bargaining
rights.
c.PURPOSE OF
ORGANIZATION
- Can only form, join or
assist labor organization
for purposes not contrary
to law.
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS
WITHOUT
ORIGINAL
CHARTER
- The GOCC is
created under
Corporation Code,
then employees are
covered by the Labor
Code. Therefore
the employees have
the same rights as
those as employees
of private
corporations, one of
which is the right to
strike.
- The GOCC is
created under
Corporation Code,
being governed by the
Labor Code, they can
bargain with the
government
concerning the terms
and
conditions of
their employment.
Thus, they have
unlimited bargaining
rights.
- Can form, join or

assist labor
organization for
purposes of CBA, etc.
2.
Employees
of
international
organizations with immunities (ICMC vs.
Calleja)
3. Managerial employees
whose functions are normally
considered as policy-making or
managerial
whose duties are of a highly

confidential or highly technical
in nature (212 LC)
4. Members of the Armed Forces of the

Philippines, including police officers,
policemen, firemen and jail guards
(E.O. 180 Sec. 4);
5. Confidential employees
vs. Confesor)
(Metrolab
6. Employees of cooperatives who are

members (Benguet Elec. Coop. vs
Calleja)
7. Non-Employees
Ople)
(Rosario
Bros.
vs
Foreigners validly working in the

Philippines [with permit from DOLE]
can form labor organizations, provided
the same right to form, join or assist in
the formation of labor unions is also
given to Filipinos in their country of
origin. This embodies the principle of
reciprocity.
MAY SECURITY GUARDS FORM A LABOR
ORGANIZATION?
YES. Under RA 6715, they may now
freely join a labor organization of the
rank-and-file or that of the supervisory
union, depending on their rank. (Meralco
vs. Secretary of Labor)
EXTENT OF THE RIGHT TO SELFORGANIZATION

1. To form, join and assist labor
organizations for the purpose of
collective
bargaining
through
representatives of their own choosing
and
2. To engage in lawful concerted
activities for the same purpose- for
their mutual aid and protection.
ART. 244. RIGHTS OF EMPLOYEES IN
THE PUBLIC SERVICE
THE FOLLOWING ARE CONSIDERED

NEGOTIABLE IN GOCCs WITH ORIGINAL
CHARTER:
1.schedule of vacation and other
leaves
2.work assignment of pregnant women
LABOR LAW COMMITTEE

29
3.personnel growth and development

4.communication system lateral and
vertical
5.provision for protection and safely
6.provision
for
facilities
for
handicapped personnel
7.provision for first-aid medical
services for married women
8.annual medical/physical examination
9.recreational, social, athletic and
cultural activities and facilities
(Rules implementing WO 180)
THE FOLLOWING ARE CONSIDERED
NOT NEGOTIABLE:
1. Those which require appropriation of
funds, such as:
a. increase
in
salary
emoluments
and
other
allowance
not
presently
provided for by law
b. facilities requiring capital
outlays
c. car plan
d. provident fund
e. special
hospitalization,
medical and dental services
f. rice/sugar/other subsidies
g. travel expenses
h. increase
in
retirement
benefits
2. Those that involve the exercise of
management prerogatives, such as:
a. appointments
b. promotion
c. assignments/details
d. reclassification/upgrading of
position
e. revision of compensation
structure
f. penalties imposed as a result
of
disciplinary actions
g. selection of personnel to
attend seminar, trainings,
study grants
h. distribution of work load
i.
external
communication
linkages
Government
employees
and
employees of government-owned
and controlled corporations with
original charters may bargain,
however, such bargaining power

is limited.
NOTE:
The Public Sector Labor

Management Council (PSLMC), created
by E.O. 180 has jurisdiction to hear
charges of ULP filed by government
employees against their employer.
REASONS WHY EMPLOYEES IN GOCCs
INCORPORATED
UNDER
THE
CORPORATION CODE ARE ALLOWED TO
ORGANIZE:
1. they are not involved in public
service
2. terms of employment are not fixed
by law
3. they are governed by the provisions
of the Labor Code not by the Civil
Service Law
ART. 245. INELIGIBILITY OF

MANAGERIAL EMPLOYEES TO JOIN ANY
LABOR ORGANIZATION; RIGHT OF
SUPERVISORY EMPLOYEES.
MANAGERIAL EMPLOYEE - one who is
vested with powers or prerogatives to
lay down and execute management
policies and /or to hire, transfer,
suspend, lay-off, recall, discharge,
assign or discipline employees.
MANAGERIAL EE UNDER LS AND LR
Managerial
Managerial
Employees under
Employees
Labor Standards
under Labor
Relations
a. POWERS/DUTIES
- primary duty consists - See definition
of the management of above
the establishment in
which
they
are
employed or of a
department
or
subdivision
- does not include
b. EXTENT
- includes the officers the managerial
and members of the staff since they are
classified as
managerial staff
supervisory
employees [who
may/may not be
eligible to join a
labor union with
the rank and file
employees]
LABOR LAW COMMITTEE

30
c. PURPOSE OF
DEFINITION
- to determine w/n
certain employees are
covered by Book III of
the LC on Conditions of
- to determine an
employees
eligibility
in
joining/forming a
labor union.
Employment.
Reason for ineligibility in the

collective
bargaining
process,
managerial employees are the alter ego
of the employers and thus they are
supposed to be on the side of the
employer to act as its representatives,
and to see to it that its interests are
well protected. The employer is not
assured of such protection if these
employees are union members.
In the same manner, the labor
union might not be assured of
their loyalty to the union in
view of the evident conflict of
interest.
The union can also become
company-dominated with the
presence
of
managerial
employees in Union Membership
(Bulletin Publishing Co. Inc. vs.
Hon. Augusto Sanchez).
SUPERVISORY EMPLOYEES - those
who, in the interest of the employer,
effectively recommend such managerial
actions if the exercise of such authority
is not merely routinary or clerical in
nature but requires the use of
independent judgment.
MAY SUPERVISORY EMPLOYEES FORM,
ASSIST, JOIN A LABOR ORGANIZATION?
YES, on their own and NOT with the
rank-and-file employees (RA 6715).
The TEST IS: Do they exercise

independent judgment which is
not subject to evaluation of
other department heads/other
superiors? If in the affirmative,
then they may-must form a labor
organization
of
their
own
[separate from the rank and file
employees]
If their responsibilities do not
inherently require the exercise
of discretion and independent
judgment
[or
merely
routinary/clerical in nature]
then they may join the union
composed of the rank and file
employees.
NOTE: It is the nature of the employees
functions and not the nomenclature or
title given to his job which determines
whether he has a rank and file or
managerial
status.
(Engineering
Equipment, Inc. vs. NLRC)
MAY THEY AFFILIATE WITH A
FEDERATION OF LABOR ORGANZATIONS
OF RANK AND FILE EMPLOYEES?
YES. Provided that:
a.
the federation is not actively
involved in union affairs in the
company; and
b. the rank and file employees are
not directly under the control of
the supervisors (Adamson vs.
Adamson)
EFFECT
OF
HAVING
MIXED
MEMBERSHIP
A
union
whose
membership is a mixture of the
supervisors and the rank and file is not
and cannot become a legitimate labor
organization. It cannot petition for a
certification election, much less ask to
be recognized as the bargaining
representative of employees.
CONFIDENTIAL EMPLOYEES - by the
very nature of their functions, they
assist and act in a confidential capacity
to, or, have access to confidential
matters of persons who exercise
managerial functions in the field of
labor relations. Therefore, the rationale
behind the ineligibility of managerial
employees to form, assist or join a labor
union equally applies to them. (Philips
Industrial Devt Inc. Vs. NLRC)
- they are entrusted with confidence on
delicate matters, or with the custody,
handling, or care and protection of the
employers property.
Under the
doctrine of necessary implication,
confidential employees are similarly
disqualified under Article 245. (Republic
Planters Bank vs. Torres)
LABOR LAW COMMITTEE

31
NOTE: The phrase in the field of labor

relations is important. It stresses labor
nexus, i.e., confidentiality of the
position is related or linked to labor
relations matters.
Access to information which is
regarded by the employer to be
confidential from the business
standpoint, such as financial
information or technical trade
secrets, will not render an
employee
a
confidential
employee. (SMC Supervisors &
Exempt
Union
vs.
Hon.
Laguesma, et al.)
Confidentiality is not a matter of
official rank, it is a matter of job
content and authority. It is not
measured by closeness to or
distance from top management,
but by the significance of the
jobholders role in the pursuit of
corporate
objectives
and
strategies.
Every managerial position is
confidential because one does
not become a manager without
having gained the confidence of
the appointing authority. But
not every confidential employee
is managerial; he may be a
supervisory or even a rank-andfile employee.
TITLE VI
UNFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
ART. 247. UNFAIR LABOR PRACTICES
NATURE
PRACTICES:
OF
UNFAIR
LABOR
1. VIOLATE THE CONSTITUTIONAL

RIGHT of workers and employees to
self-organization;
2. are INIMICAL TO THE LEGITIMATE
INTERESTS of both
labor and management, including
their right to bargain collectively
and otherwise deal with each
other in an atmosphere of freedom
and mutual respect
3. DISRUPT INDUSTRIAL PEACE; and
4. hinder the promotion of healthy and
stable labor-management relations
and mutual respect [LABOR-MNGT
RELATIONS-UNSTABLE];
2 ELEMENTS OF UNFAIR LABOR
PRACTICE:
1.
ART. 246. NON-ABRIDGEMENT OF

THE RIGHT TO SELF-ORGANIZATION
THE RIGHT TO SELF-ORGANIZATION
SHALL NOT BE ABRIDGED MEANS:
It shall be unlawful for any person to:
a.
b.
c.
d.
restrain,
coerce,
discriminate against, or
unduly interfere
- with employees and workers in their

exercise of the right to self-organization.
Any act intended to weaken or

defeat the right is regarded by
law as an offense, which is
technically called unfair labor
practice.
employer-employee relationship
between the offender and the
offended
2. act done is expressly defined in
the Code as an act of unfair
labor practice
3. it is now considered a criminal
offense triable by the criminal
court
NOTE: Prohibited acts are all related to
the workers' self-organizational right and
the the observance of a CBA, except Art.
248 (f) dismissing or prejudicing an
employee for giving testimony under the
Code.
ULP has a technical meaning.
It is a practice unfair to labor,
although the offender may either
be an employer or a labor
organization
LABOR LAW COMMITTEE

32
It refers to acts opposed to

workers'
right
to
organize.
Without this, the act, no matter
how unfair, is not ULP.
It commonly connotes antiunionism.
It also refers to gross violation of
CBA provisions. Gross means the
act is malicious and flagrant.
2 ASPECTS
PRACTICE:
CIVIL CASE
OF
UNFAIR
LABOR
CRIMINAL CASE
A. PERSONS LIABLE
1. Officers and 1.
Agents
and
agents
of officers
who
employer or
participated
or
2. Labor
authorized or ratified
organization,
the act.
officers
and 2.
Agents,
agents
representatives, members
of the government board,
including
ordinary
members
B. JURISDICTION
-Labor Arbiters of -MTC/RTC as the case
the NLRC
may be.
C. QUANTUM OF PROOF NEEDED
-substantial
-beyond reasonable doubt
evidence
[subject to prosecution
and punishment]
D. PRESCRIPTIVE PERIOD
- one year from - one year from the
the accrual of the accrual of the ULP act,
ULP act.
however
it
will
be
suspended
once
the
administrative case has
been filed and would only
continue running once the
administrative case has
attained finality.
Final judgment in the
administrative
proceeding finding that
ULP has been committed
is a prerequisite in filing
a criminal case for ULP
NOTE: Final judgment in
the
administrative
proceedings shall not be
binding in the criminal
case
nor
shall
be
considered
as
an
evidence of guilt but
merely as a proof of
compliance
of
the
requirements prescribed
by the Code.
CHAPTER II
UNFAIR LABOR PRACTICES
OF EMPLOYERS
ART 248. ULP THAT MAY BE
COMMITTED BY AN EMPLOYER (1-10)
1. To INTERFERE WITH, RESTRAIN OR
COERCE EMPLOYEES
- in the exercise of their right
to self-organization;
INTERFERENCE
Examples:
- outright and unconcealed intimidation
- interrogation
employer must communicate to the
employee the purpose of questioning
1. assure him that no reprisal would
take place
2. obtain employee participation
voluntarily
3. must be free from employer
hostility to union organization
4. must not be coercive in nature
-intimidating expressions of opinion by
employer
TEST OF INTERFERENCE OR COERCION whether the employer has engaged in
conduct which it may reasonably be said
tends to interfere with the free exercise
of the employees' right and it is not
necessary that there be direct evidence
that any employee was in fact
intimidated
or
coerced
by
the
statements of threats or the employer if
there is a reasonable interference that
the anti-union conduct of the employer
does have an adverse effect of selforganization and collective bargaining.
2. TO REQUIRE AS A CONDITION FOR
EMPLOYMENT THAT A PERSON OR
AN EMPLOYEE
- shall not join a labor
organization or
- shall withdraw from one to
which he belongs;
LABOR LAW COMMITTEE

33
YELLOW DOG CONTRACT - A promise

exacted from workers as a condition of
employment that they are not to belong
to, or attempt to foster, a union during
their period of employment. It is null
and void because:
- It is contrary to public policy
for it is tantamount to involuntary
servitude.
- It is entered into without
consideration for employees in
waiving
their
right
to
selforganization
- Employees are coerced to sign
contracts disadvantageous to their
family.
Does Art. 248 (3) mean that an
employer cannot contract out work?
NO. Contracting out services is not ULP
per se. It is ULP only when the following
conditions exist:
1. the service contracted- out
are being performed by
union members; and
2. such
contracting-out
interferes with, restrains, or
coerce employees in the
exercise of their right to
self-organization.
HOWEVER, when the contracting-out is
being done to minimize expenses, then it
is a valid exercise of management
prerogative.
3. To CONTRACT OUT SERVICES OR
FUNCTIONS BEING PERFORMED BY
UNION MEMBERS
- when such will interfere with,
restrain or coerce employees in
the
- exercise of their right to selforganization;
4.
To INITIATE, DOMINATE, ASSIST

OR OTHERWISE INTERFERE
with
the
formation
or
administration of any
labor
organization,
- including the giving of financial or
other support to it or its
organizers or officers; (Formation
of Company Union)
5. To DISCRIMINATE IN REGARD TO
WAGES, hours of work, and other
terms
and
conditions
of
employment in order to encourage or
discourage
membership in any
labor organization.
TEST OF DISCRIMINATION- whenever
benefits or privileges given to one is not
given to the other under similar or
identical conditions when directed to
encourage
or
discourage
union
membership (see more discussions
below)
6. To
DISMISS,
DISCHARGE
OR
OTHERWISE
PREJUDICE
OR
DISCRIMINATE against an employee
- for having given or being about
to give testimony under this
Code; (The only ULP act which is
not anti-unionism)
DISCRIMINATION
BECAUSE
OF
TESTIMONY
TEST: the subject matter of the
testimony can be anything under
the Code
what is ULP is the employer's
retaliatory act regardless of the
subject of employee's complaint
or testimony
7. TO VIOLATE THE DUTY TO BARGAIN
COLLECTIVELY AS PRESCRIBED BY
THIS CODE;
8.
TO PAY NEGOTIATION OR
ATTORNEYS FEES TO THE UNION OR
ITS OFFICERS OR AGENTS
- as part of the settlement of any
issue in collective bargaining

or any other disputes; or
9.
To
VIOLATE
A
COLLECTIVE
BARGAINING AGREEMENT.(GROSSLY!)
- the violation must be gross and
with respect to the economic
provision of the CBA (flagrant
and with malice)
All the aforementioned acts (Nos. 19) must have a relation to the
employees exercise of their to selforganization. Anti-union or antiorganization motive must be proved
LABOR LAW COMMITTEE

34
because it is a definitional element

of ULP.
RUNAWAY SHOP - an industrial plant
moved by its owners from one location
to another to escape union labor
regulations or state laws or to
discriminate against employees at the
old plant because of their union
activities.
COMPANY UNIONISM
1. Initiation of the company union
idea by:
a. outright formation by
employer
or
his
representatives
b. employee formation on
outright
demand
or
influence by employer
c. managerially motivated
formation by employees
2. financial support to the union by:
a. employer defrays union
expenses
b. pays attorney's fees to the
attorney who drafted the
Constitution or by laws of
the union
3.
employer encouragement and
assistance by immediate granting
of
exclusive
recognition
as
bargaining
agent
without
determining whether the union
represents
majority
of
the
employees
4. supervisory assistance by soliciting
membership, permitting union
activities during work time or
coercing employees to join the
union by threats of dismissal or
demotion.
DISCRIMINATION FOR OR AGAINST

UNION MEMBERSHIP
TEST OF DISCRIMINATION: That the
discharge of an employee was motivated
by his union activity. Such inference
must be based on evidence, direct or
circumstantial, not upon mere suspicion.
CONSTRUCTIVE DISCHARGE - ULP
where employer prohibits employees
from exercising their rights under the
Code, on pain of discharge, and the
employee quits as a result of the

prohibition
THREE COMPONENTS OF ART. 248(5)
(DISCRIMINATION):
1.It prohibits discrimination in
terms
and
conditions
of
employment in order to encourage
or discourage membership in the
union;
2.It gives validity to union security
agreements;
3.It allows an agency shop
arrangement whereby agency fees
may be collected from non-union
members.
SECURITY
ARRANGEMENTS
stipulations in the CBA requiring
membership in the contracting union as
a condition for employment or retention
of employment in the company.
PRINCIPLES OF UNION SECURITY
ARRANGEMENTS:
1. Protection - To shield union members
from whimsical and abusive exercise
of management prerogatives.
2. Benefits - An additional membership
will insure additional source of
income to the union in the form of
union dues and special assessment.
3. Self-preservation- It strengthens the
union
through selective
acceptance of new members on the
basis of commitment and loyalty.
DIFFERENT KINDS OF UNION
SECURITY
ARRANGEMENTS:
(EXCEPTIONS
TO
ULP
ON
INTERFERENCE ON THE EMPLOYEES
EXERCISE OF THEIR RIGHT TO SELFORGANIZATION)
1. CLOSED-SHOP AGREEMENT - the
employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual
once employed must, for the duration of
the agreement, remain a member of the
union in good standing as a condition for
continued employment.
- does not have any retroactivity
- apply only to new hires
LABOR LAW COMMITTEE

35
EXCEPTIONS:
a. employees belonging to any
religious
sect
which
prohibit
affiliation of their members with any
labor organization are not covered
by
such
agreementThe
free
exercise of religious belief is
superior
to
contract
rights
(Victoriano
vs.
Elizalde
Rope
Workers).
b. members of the rival union are not
covered by such arrangement.
either join the union or pay to the union

as exclusive bargaining agent a sum
equal to that paid by the members.
SEMI-CLOSED SHOP AGREEMENT- has

no requirement for the employee to
remain as member of the contracting
union in good standing as a condition
for continued employment.
Employee
members
of
another/rival union are not
considered free riders since
when the union [agent] bids to
be the bargaining agent, it
voluntarily
assumed
the
responsibility of representing all
the
employees
in
the
appropriate bargaining unit.
2. UNION
SHOP AGREEMENT stipulation whereby any person can be
employed by the employer but once
employed such employee must, within a
specific period, become a member of the
contracting union and remain as such in
good standing for continued employment
for the duration of the CBA [take note of
the exceptions in the preceding
number.]
This is directed against

FREE RIDER employees who
benefit from union activities
without contributing support to
the union, to prevent a situation
of non-union members enriching
themselves at the expense of
union members.
REQUIREMENTS FOR A VALID

TERMINATION BY THE EMPLOYER OF
THE SERVICES OF AN EMPLOYEE
PURSUANT TO A UNION OR CLOSEDSHOP AGREEMENT:
3. MAINTENANCE OF MEMBERSHIP
CLAUSE - the agreement DOES NOT
require non-members to join the
contracting union BUT provides that
those who are members thereof at the
time of the execution of the CBA and
those who may thereafter on their own
volition become members must for the
duration of the agreement maintain
their membership in good standing as a
condition for continued employment in
the company for the duration of the
CBA.
1. The agreement must be expressed in

a CLEAR AND UNEQUIVOCAL way so
as
not
to
leave
room
for
interpretation because it is a
limitation to the exercise of the
right to self-organization.
Any doubt must be resolved
against the existence of a
closed-shop agreement.
4. PREFERENTIAL SHOP AGREEMENT

an agreement whereby the employer
merely agrees to give preference to the
members of the bargaining union in
hiring, promotion or filing vacancies and
retention in case of lay-off. The
employer has the right to hire from the
open market if union members are not
available.
3. It can only be exercised by giving the

employee his right to DUE PROCESS.
- The employer has the right to
satisfy himself that there are
sufficient bases for the request
of the union.
- The termination of the services
of the employee is not automatic
upon the request of the union.
5. AGENCY SHOP AGREEMENT - an

agreement whereby employees must
4. It cannot be applied to employees

who are already MEMBERS OF THE
2. The agreement can only have

PROSPECTIVE APPLICATION and
cannot be applied retroactively.
LABOR LAW COMMITTEE

36
RIVAL UNION or to the employees

based on their religious beliefs.
CHAPTER III
UNFAIR LABOR PRACTICES OF
LABOR ORGANIZATIONS
ART. 249. UNFAIR LABOR PRACTICES
OF LABOR ORGANIZATIONS
a. To RESTRAIN OR COERCE employees
in the exercise of their right to selforganization. However, a labor
organization shall have the right to
prescribe its own rules with respect
to the acquisition or retention of
membership;
b. To CAUSE OR ATTEMPT TO CAUSE
AN EMPLOYER TO DISCRIMINATE
AGAINST AN EMPLOYEE, including
discrimination
c. To VIOLATE THE DULY OR REFUSE
TO BARGAIN COLLECTIVELY with
the employer provided that it is the
representative of the employees;
d. TO CAUSE OR ATTEMPT TO CAUSE
AN EMPLOYER TO PAY OR DELIVER
OR AGREE TO PAY OR DELIVER ANY
MONEY or other things of value, in
the nature of an exaction, for
services which are not performed or
not to be performed, including the
demand for a fee for union
negotiations;
(This
is
called
FEATHERBEDDING)
e. To
ASK
FOR
OR
ACCEPT
NEGOTIATION OR ATTORNEYS FEES
FROM EMPLOYERS as part of the
settlement of any issue in collective
bargaining or any other dispute; or
f. To GROSSLY VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.
- The violation must be gross and
must be with respect to
economic provisions of the CBA
flagrantly and with malice.
PERSONS CIVILLY LIABLE FOR
ULP:
1. Officers and agents of employer
2. Labor organization, officers and
agents
3. Agents
and
officers
who
participated or authorized or
ratified the act.
FEATHERBEDDING - refers to the

practice of the union or its agents in
causing or attempting to cause an
employer to pay or deliver or agree to
pay or deliver money or other things of
value, in the nature of exaction, for
services which are not performed or not
to be performed, as when a union
demands that the employer maintain
personnel in excess of the latters
requirements.
It is not featherbedding if the
work is performed no matter
how unnecessary or useless it
may be.
SWEETHEART DOCTRINE considers
it ULP for a labor organization to ask for
or accept negotiation or attorneys fees
from the employer in settling a
bargaining issue or dispute
resulting CBA is considered a

sweetheart contract a CBA
that does not substantially
improve the employees wages
and benefits.
TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
ART.
250.
PROCEDURE
IN
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING negotiation
by an organization or group of workmen,
in behalf of its members, with the
employer, concerning wages, hours of
work and other terms and conditions of
employment and the settlement of
disputes by negotiation between an
employer and the representative of his
employees.
Negotiation towards a collective
agreement.
The
mechanics
of
collective
bargaining is set in motion only when the
following
JURISDICTIONAL
PRECONDITIONS are present:
LABOR LAW COMMITTEE

37
1. POSSESSION OF THE STATUS OF

MAJORITY representation by the
employees
representative
in
accordance with any of the means of
selection or designation provided for
by the Labor Code;
2.
proof
of
MAJORITY
REPRESENTATION (Certification of
the BLR that the representative of
the employees in the sole and
exclusive bargaining agent having
won in a certification election); and
3. a DEMAND TO BARGAIN under
Article 250 (a) of the Labor Code.
(Kiok Loy vs. NLRC)
COLLECTIVE BARGAINING AGREEMENT
(CBA) - a negotiated contract between a
legitimate labor organization and the
employer concerning:
a. wages,
b. hours of work, and
c. all
other
terms
and
conditions of employment in
a bargaining unit, including
mandatory provisions for
grievances and arbitration
machineries.
PROCEDURE
BARGAINING
IN
COLLECTIVE
1.Written NOTICE with statement of

proposals
2.REPLY by the other party within 10
calendar days with counter proposals
3.In case of differences, either party
may REQUEST FOR A CONFERENCE
which must be held within 10 days
from receipt of request.
4.If not settled NCMB MAY INTERVENE
AND ENCOURAGE the parties to
submit the dispute to a voluntary
arbitrator
5.If not resolved, the parties may go to
where they want AND RESORT TO
ANY OTHER LAWFUL MEANS [either
to settle the dispute or submit it to a
voluntary arbitrator].
During
the
conciliation
proceeding in the Board, the
parties are prohibited from doing
any act which may disrupt or
impede the early settlement of
the disputes (250[d] LC).
8 STAGES IN THE NEGOTIATION FOR

A
COLLECTIVE
BARGAINING
AGREEMENT:
1. PRELIMINARY process - written
notice for negotiation which must
be clear and unequivocal
2. NEGOTIATION Process
3. EXECUTION Process signing of the
agreement
4. PUBLICATION for at least 5 days
before ratification
5. RATIFICATION by the majority of
all the workers in the bargaining
unit represented in the negotiation
(not necessary in case of arbitral
award)
6. REGISTRATION Process
Requisites for registration:
a. mandatory provisions
b. payment of P1, 000
c. 5 copies of CBA
d. proof of ratification
7. ADMINISTRATION Process the CBA
shall be jointly administered by
the
management
and
the
bargaining agent for a period of 5
years
8. INTERPRETATION
AND
APPLICATION Process
MANDATORY PROVISIONS OF THE
CBA:
1. wages
2. hours of work
3. grievance machinery
4. voluntary arbitration
5. family planning
6. rates of pay
7. mutual observance clause
In addition, the Bureau requires

that the CBA should include a
clear statement of the terms of
the CBA.
Note: Employers duty to bargain is

limited
to
mandatory
bargaining
subjects; as to other matters, he is free
to bargain or not to bargain.
ART. 252. MEANING OF DUTY TO
BARGAIN COLLECTIVELY
DUTY TO BARGAIN COLLECTIVELY the performance of a mutual obligation:
LABOR LAW COMMITTEE

38
a. to MEET AND CONVENE promptly

and expeditiously in good faith for
the purpose of negotiating an
agreement with respect to wages,
hours of work and all other terms
and conditions of employment
including proposals for adjusting
any grievances or questions arising
under such agreement and
b. EXECUTING
A
CONTRACT
incorporating such agreements if
requested by either party.
d. gross violation of the CBA

Do economic exigencies justify refusal
to bargain?
An employer has been held not guilty of
refusal to bargain by adamantly
rejecting the union's economic demands
where he is operating at a loss, on a low
profit margin, or in a depressed industry,
as long as he continues to negotiate.
But financial hardship constitutes no
excuse
for
refusing
to
bargain
collectively.
LIMITATIONS:
1. the duty to bargain collectively does
not compel any party to:
a. agree to a proposal; or
b. make a concession.
No room for Take it or Leave it
posture.
2. the parties cannot stipulate terms
and conditions of employment which
are below the minimum requirements
prescribed by law
(Meaning of duty to bargain when there
exists a CBA, see discussion under Art.
253)
Collective bargaining does not

end with the execution of the
agreement. It is a continuous
process. The duty to bargain
imposes on the parties during
the term of their agreement the
mutual obligation to meet and
confer
promptly
and
expeditiously and in good faith
for the purpose of adjusting any
grievances or question arising
under such agreement. (Republic
Savings Bank vs. CA)
FOUR (4) FORMS OF ULP IN

BARGAINING:
a. failure or refusal to meet and
convene
b.
evading the mandatory subjects
of bargaining
c.
bad
faith
in
bargaining
[boulwarism], including failure or
refusal to execute the CBA, if
requested
ACTS NOT DEEMED REFUSAL TO

BARGAIN:
1. adoption of an adamant bargaining
position in good faith
2. refusal to bargain over demands for
commission of ULP
3. refusal to bargain during period of
illegal strike
4. there is no request for bargaining
5. union seeks recognition
inappropriately large unit
for
an
6.
union seeks to represent some
persons who are excluded from the Code
7.
the rank-and-file unit includes
supervisors or inappropriate otherwise
8.
the demand for recognition and
bargaining is made within the year
following a certification election in
which the clear choice was no union and
no ad interim significant change has
taken place in the unit
9. the union makes unlawful bargaining
demands
BARGAINING TO THE POINT OF
DEADLOCK OR IMPASSE:
1. over a mandatory subject - party
may insist on bargaining and will not be
construed as bargaining in bad faith
REASON:
duty to bargain requires
meeting and convening on the terms and
conditions of employment
LABOR LAW COMMITTEE

39
but does not require assent to the other

party's proposals.
2. over a non-mandatory subject party may not insist on bargaining to the
point of impasse, otherwise, he will be
construed as bargaining in bad faith.
253
253-A/256
A.FREEDOM PERIOD
-the notice of intention to
terminate, amend or alter
the provisions of the CBA
shall be filed within the
sixty (60) day period,
immediately prior to the
expiration of the CBA.
-the economic provisions
however
may
be
renegotiated not later than
three (3) years. Those
economic
provisions
entered within 6 months
from the expiry of their
term as fixed in the CBA
shall retroact to the day
immediately following such
date, if beyond 6 months
the
effectivity
is
by
agreement of the parties.
- representation
aspect of the
CBA shall be for
a term of five
(5). A petition
for certification
election may be
entertained and
a
certification
election may be
conducted within
the
60-day
period
immediately
prior
to
the
expiration of the
CBA.
B.
WHAT MAY BE
CHANGED DURING THE 60DAY FREEDOM PERIOD
-re-negotiable provisions of
the CBA particularly the
non-representation aspect
(ECONOMIC
PROVISIONS
may be renegotiated not
later than three (3) years.
representation
aspectit may be
resolved by holding
certification
election
EXAMPLE:
The employer's insistence
that the union should change its
negotiator
before
bargaining
can
proceed to the employees' wage and
benefits is an instance of bad-faith
bargaining because the composition of
the negotiating panel is not a mandatory
subject of bargaining.
Hence, if Party A insists on first settling
a non-mandatory subject before tackling
a mandatory subject, Party B may
complain that Party A's posture is just an
excuse to avoid bargaining on the
mandatory,
essential
subjects
of
bargaining; thus, Party B can charge that
Party A is bargaining in bad faith or is
evading bargaining on terms and

conditions of employment - in short,
Party A is committing ULP.
NOTE: What the rule forbids is the
posture of making settlement of a nonmandatory subject a pre-condition to the
discussion or settlement of a mandatory
subject.
ART. 253. DUTY TO BARGAIN
COLLECTIVELY WHEN THERE EXISTS A
GENERAL RULE: When there is an
existing CBA, the duty to bargain
collectively shall also mean that neither
party shall TERMINATE nor MODIFY such
agreement during its lifetime. It is the
duty of both parties to:
a. keep the status quo and
b. to continue in the full force and
effect the terms and conditions of
the existing CBA
EXCEPTION: during the 60-day period
prior to its expiration, upon service of a
written notice of a partys intention to
terminate or modify the same, a party
may choose to terminate or modify the
non-representational aspect of the CBA
only after the expiration of CBA of fixed
duration.
DUTY TO BARGAIN COLLECTIVELY
UNDER 253 AND 253-A/256
AUTOMATIC RENEWAL CLAUSE Art.
253 provides that the CBA shall remain
effective and enforceable even after the
expiration of the period fixed by the
parties as long as no new agreement is
reached by them.
WHAT MAY BE DONE DURING THE

60-DAY FREEDOM PERIOD:
a. A labor union may DISAFFILIATE

from the mother union to form a
local or independent union only
during the 60-day freedom period
immediately
preceding
the
expiration of the CBA. [take note of
the limitation-see discussions on
registration of labor unions]
LABOR LAW COMMITTEE

40
b. either party can serve a written

notice to TERMINATE OR MODIFY
the agreement at least 60 days prior
to its expiration period [on renegotiable/non-representation
aspect of the CBAsee discussion on
253]
c. a petition for CERTIFICATION
ELECTION may be filed
ART. 254. NO INJUNCTION RULE

No
temporary
or
permanent
injunction or restraining order in any
case involving or growing out of labor
disputes shall be issued by any court or
other entity, except as otherwise
provided in Articles 218 (Powers of the
Commission/NLRC) and 264 (Prohibited
Activities) of this Code.
ART. 253A.
TERMS OF A
(CONTRACT BAR RULE)
REASON:
injunction contradicts the
constitutional preference for voluntary
modes of dispute settlement
DURATION OF THE CBA:

1. With
respect
representation aspect,
lasts for 5 years
to
the
the
same
2. With respect to other provisions

[economic provisions], the same may
last for a maximum period of 3 years
after the execution of the CBA
RULE ON RETROACTIVE EFFECTS OF
OTHER ECONOMIC PROVISIONS WITH
FIXED TERM OR DATES OF EXPIRY AS
PROVIDED IN THE CBA:
a. Those made within 6 months after
the date of expiry of the CBA
- Any agreement on such other
provisions of the CBA made within 6
months after the date of expiry of the
CBA
is
subject
to
AUTOMATIC
RETROACTION to the day immediately
following such date of expiry.
b. Those not made within 6 months the
parties may agree to the DATE OF
RETROACTION.
- This rule applies only if there
is an EXISTING AGREEMENT. If THERE IS
NO EXISTING AGREEMENT, there is no
retroactive effect because the date
agreed upon shall be the start of the
period of agreement.
NOTE: Article 253-A on retroaction does
not apply if the provisions were imposed
by the Secretary of Labor by virtue of
arbitration.
It applies only if the
agreement was voluntarily made by the
parties.
In cases of strikes/picketing, third

parties or innocent bystanders may
secure a court (regular court)
injunction to protect their rights.
(PAFLU vs. CLORIBEL)
ART. 255. EXCLUSIVE BARGAINING

REPRESENTATION
AND
WORKERS
PARTICIPATION
IN
POLICY
AND
DECISION-MAKING
WHAT IS THE MEANING OR EXTENT OF
THE
WORKERS
RIGHT
TO
PARTICIPATE IN POLICY AND DECISIONMAKING PROCESSES?
Such right refers ONLY to
participation in grievance procedures
and voluntary modes of settling disputes
and NOT to formulation of corporate
programs and policies.
NOTE:
An employer may solicit
questions, suggestions and complaints
from
employees
eventhough
the
employees are represented by a union,
provided:
1.
the
collective
bargaining
representative
executes
an
agreement waiving the right to be
present on any occasion when
employee grievances are being
adjusted by the employer and
2. employer acts strictly within the
terms of this waiver agreement.
LABOR LAW COMMITTEE

41
ONE-UNION, ONE-COMPANY POLICY the proliferation of unions in an

employer unit is discouraged as a matter
of policy unless there are compelling
reasons which would deny a certain class
of employees the right to selforganization for purposes of collective
bargaining.
EXCEPTION:
supervisory employees who are
allowed to form their own unions apart
from the rank-and-file employees
- the policy should yield to the right of
employees to form unions for purposes
not contrary to law, self-organization
and to enter into collective bargaining
negotiations.
two companies cannot be
treated into a single bargaining unit
even if their businesses are related.
subsidiaries
or
corporations
formed out of former divisions of a
mother
company
following
a
reorganization may constitute a
separate bargaining unit.
FOUR FACTORS IN DETERMINING THE

APPROPRIATE BARGAINING UNIT:
1. the EXPRESS WILL OR DESIRE of the
employees (Globe Doctrine);
the desires of all the employees
are
relevant
to
the
determination of the appropriate
bargaining unit. The relevance
of the wishes of the employees
concerning their inclusion or
exclusion from a proposed
bargaining unit is inherent in the
basic right to self organization
2. the SUBSTANTIAL AND MUTUALITY
INTEREST factor;
3. prior collective bargaining HISTORY;
and
4. EMPLOYMENT STATUS, such as
a. temporary
b. seasonal, and
c. probationary employee
THINGS TO CONSIDER IN
DETERMINING THE COMMUNITY
OF INTEREST DOCTRINE:
LABOR MANAGEMENT COUNCILS deal with the employer on matters

affecting employees rights, benefits and
welfare.
They may be formed even if there
is already a union in the company.
1. similarity in the scale and manner of

determining earnings
ARTS. 256-259 PETITION FOR

CERTIFICATION ELECTION
3. similarity in the kinds

performed
BARGAINING UNIT- a group of

employees of a given employer,
comprised of all or less than all the
entire body of the employees, which,
consistent with equity to the employer,
indicate to be best suited to serve the
reciprocal rights and duties of the
parties under the collective bargaining
provision of the law.
4. similarity in the qualifications, skills

and training of the employees
CERTIFICATION YEAR - refers to the

period wherein collective bargaining
should begin, which is within 12 months
following
the
determination
and
certification of employees' exclusive
bargaining representative.
7. history
of
bargaining
2. similarity in employment benefits,

hours of work and other terms and
conditions of employment
of work
5. frequency of contract or interchange

among the employees
6. common
supervision
and
determination of labor-relations
policy
previous
collective
8. desires of the affected employees

9. extent of union organization
LABOR LAW COMMITTEE

42
MODES OF CHOOSING THE EXCLUSIVE

BARGAINING UNIT:
1. SELECTION - certification election
2. DESIGNATION - voluntary recognition
A. CERTIFICATION ELECTION the
process of determining by secret ballot
the sole and exclusive bargaining agent
of the employees in an appropriate
bargaining unit, for purposes of
collective bargaining
CERTIFICATION
ELECTION
CERTIFICATION
ELECTION
A. NATURE
- separate and distinct
from
a
consent
election
B. PURPOSE
- to determine the sole
and
exclusive
bargaining agent of all
the employees in an
appropriate bargaining
unit for the purpose of
collective bargaining;
vs.
CONSENT
CONSENT
ELECTION
- a separate and
distinct process
and has nothing
to do with the
import
and
effect
of
a
certification
election
- to determine
the
issue
of
majority
representation
of
all
the
workers in the
appropriate
collective
bargaining unit
mainly for the
purpose
of
determining the
administrator of
the CBA when
the contracting
union
suffered
massive
disaffiliation but
not
for
the
purpose
of
determining the
bargaining agent
for purposes of
collective
bargaining.
DIRECT CERTIFICATION - the process

whereby
the
Med-Arbiter
directly
certifies a labor organization of an

appropriate bargaining unit of a
company after a showing that such
petition is supported by at least a
majority of the employees in the
bargaining unit.
IT IS NO LONGER
ALLOWED. (EO 111)
VOLUNTARY RECOGNITION the process
whereby the employer recognizes a labor
organization as the exclusive bargaining
representative of the employees in the
appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
EFFECT
OF
VOLUNTARY
RECOGNITION BY THE EMPLOYER through voluntary recognition by the
employer, the labor organization is
recognized by the employer as the
exclusive bargaining agent which may
collectively bargain with such employer.
C.E. IN AN ORGANIZED AND AN
UNORGANIZED ESTABLISHMENT
ORGANIZED
UNORGANIZED
A. WHEN MANDATORY ON
THE PART OF BLR
- upon the filing of a
verified petition by a
legitimate
labor
organization
questioning
the majority status of the
incumbent
bargaining
agent within the 60-day
freedom period before the
expiration of a CBA.
- The petition must be
supported by the written
consent of at least 25% of
ALL THE EMPLOYEES IN
THE
APPROPRIATE
BARGAINING UNIT.
- the employer cannot file
a petition for certification
election; only a legitimate
labor organization can file
such petition.
Upon:
a. the filing
of a verified
petition by a
legitimate
labor
organization;
or
b. upon the
filing of a
petition
by
the employer
when
such
employer is
requested by
the
employees to
bargain
collectively.
B. PERIOD FOR FILING THE

PETITION
a. when there is a CBA,
- any time,
LABOR LAW COMMITTEE

43
the labor organization can

file
a
petition
for
certification
election
within the 60-day freedom
period
(CONTRACT-BAR
RULE)
b. when there is no CBA,
then the labor organization
can file a petition for
certification election at
any time, subject to the
Deadlock Bar Rule.
subject
however to
the
ONEELECTIONPER-YEAR
RULE.
REQUISITES BEFORE A LABOR UNION

CAN BE DECLARED A WINNER (DOUBLE
MAJORITY RULE):
1. Majority of the eligible voters cast
their votes AND
2. Majority of the valid votes cast is for
such union.
HOW TO DETERMINE THE DOUBLE
MAJORITY RULE:
(c) NOT ONE OF THE

CHOICES
OBTAINED
THE
MAJORITY
(50%+1-SECOND
MAJORITY) of the valid votes
cast;
(d) the TOTAL VOTES FOR
THE UNIONS IS AT LEAST 50%
of the votes cast;
(e) there
is
NO
UNRESOLVED
CHALLENGED
VOTES or election protest
which
if
sustained
can
materially alter the results
(f) the two choices which
garnered the highest votes will
be voted and the one which
garners the highest number of
votes will be declared the
winner provided they get the
majority votes of the total
votes cast
Who will participate in the run
off?
1. In determining the eligible votes cast

[FIRST MAJORITY], include spoiled
ballots
The unions receiving the highest

and second highest number of votes
cast.
2. In determining valid votes [SECOND

MAJORITY], eliminate spoiled ballots
but include challenged votes
Re Run Election vs. Run off

Election
RE RUN ELECTION
RUN OFF
ELECTION
RUN-OFF ELECTION:
Held
in
instances:
A run-off election is proper if the

following conditions exist namely:
(a) a VALID ELECTION took
place because majority of the
Collective
Bargaining
Unit
members
voted
[FIRST
MAJORITY];
(b) the
said
election
presented at least THREE
CHOICES, e.g., Union One,
Union Two, and No Union
(Take Note: No Union shall
not be a choice in the run off
election);
two
1. if one choice
receives
a
plurality of vote
and
the
remaining
choices results
in a tie;
2. if all choices
received
the
same number of
votes;
In
both
instances,
the
NO UNION is also
a choice
Conducted
when
none
of
the
choices, including
the choice of No
Union, receives a
majority of the
valid vote cast.
This
presupposes
no less than three
competing choices.
In this situation, an
election
is
conducted
between the union
choices receiving
the largest and the
second
largest
number of the
valid votes cast.
LABOR LAW COMMITTEE

44
RULES WHICH PREVENT THE

HOLDING
OF
A
CERTIFICATION
ELECTION [DONC]:
1. Deadlock bar rule- when there
is a deadlock in collective bargaining and
the same has been submitted to NCMB
for conciliation and mediation the same
bars any petition or conduct of
certification election.
2. One year bar rule
3. Negotiation bar rule
4. Contract bar rule
1. CONTRACT-BAR RULE - while a valid
and registered CBA of a fixed duration is
subsisting, the BLR is not allowed to hold
an election contesting the majority
status of the incumbent union during the
five year term of the CBA except during
the sixty day period immediately prior to
the expiration of the CBA.
REQUIREMENTS IN ORDER TO INVOKE
CONTRACT-BAR RULE:
1. Agreement is in WRITING AND
SIGNED by all contracting parties.
2. It must contain THE TERMS AND
CONDITIONS of employment.
3. Covered employees in an appropriate
bargaining unit [ABU EES COVERED].
4. It is for a REASONABLE PERIOD or
duration.
5. It must be RATIFIED.
6. It must be REGISTERED with the
Bureau.
7. The violation of the contract bar rule
or the existence of a duly registered
CBA must be specifically IMPLEADED
AS A DEFENSE.
EFFECT OF AN INVALID AND

UNREGISTERED CBA- there is no bar and
therefore a certification election may be
held.
NOTE: Registration of CBA only puts into
effect the contract bar rule but the CBA
itself is valid and binding even if
unregistered.
EXCEPTIONS TO THE CONTRACT-BAR
RULE:
1. CBA is not registered
2. CBA deregistered
3. CBA was hastily concluded way

ahead of the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace
because of schism
6. CBA was concluded in violation of an
order enjoining the parties from
entering into a CBA until the issue of
representation is resolved
7. Petition is filed during the 60-day
freedom period
SUCCESSOR-IN-INTEREST DOCTRINE
When an employer with an existing CBA
is succeeded by another employer, the
successor-in-interest who is a buyer in
good faith has no liability to the
employees in continuing employment
and the collective bargaining agreement
because these contracts are in personam
EXCEPT:
a. when the successor-in-interest
expressly assumes the obligation or
b.
the sale is a device to
circumvent the obligation or
c. the sale or transfer is made in
bad faith
SUBSTITUTIONARY DOCTRINE where
there occurs a shift in the employees
union allegiance after the execution of a
collective bargaining contract with the
employer, the employees can change
their agent (the labor union) but the
collective bargaining contract which is
still subsisting continues to bind the
employees up to its expiration date.
They may, however, bargain for the
shortening of said expiration date.
The employees cannot revoke

the validly executed collective
bargaining contract with their
employer
by
the
simple
expedient of changing their
bargaining agent.
The new
agent must respect the contract.
(Benguet Consolidated, Inc. vs.
Employees and Workers UnionPAFLU)
LIMITATION AS TO ITS APPLICATION

it cannot be invoked to support the
contention that a newly certified
collective bargaining agent automatically
LABOR LAW COMMITTEE

45
assumes all the personal undertakings of

the former agentlike the no strike
clause in the CBA executed by the
latter (Benguet Consolidated Inc. vs. BCI
Employees and Workers Union-PAFLU).
2. DEADLOCK BAR RULE - a petition for
certification
election
cannot
be
entertained if, before the filing of the
petition for certification election, a
bargaining deadlock to which an
incumbent or certified bargaining agent
is a party, had been submitted to
conciliation or arbitration or had become
the subject of a valid notice of strike or
lockout.
DEADLOCK arises when there is an
impasse, which presupposes reasonable
effort at good faith bargaining which,
despite noble intentions, did not
conclude in an agreement between the
parties.
INDICATIONS
OF
A
GENUINE
DEADLOCK:
1. the submission of the deadlock
to a
third party conciliator or
arbitrator
2. the deadlock is the subject of
a valid notice of strike or lockout
3. NEGOTIATION BAR RULE - a petition
for certification election cannot be
entertained if, before the filing of the
petition for certification election, the
duly recognized or certified union has
commenced negotiations with the
employer in accordance with Art. 250 of
the Labor Code.
4. CERTIFICATION YEAR RULE no
petition for certification election may be
filed within one year from the date of a
valid certification, consent, or run-off
election or from the date of voluntary
recognition
EXAMPLES
BARGAINING:
OF
BAD
FAITH
1. Surface Bargaining occurs when

employer constantly changes its
positions over the agreement.
2. Boulwarism occurs:
a. when the employer directly

bargains
with
the
employee
disregarding the union.
The aim was to deal with the

Union through the employees,
rather than with the employees
through the union.
b. Employer submits its proposals
and adopts a take it or leave it
stand.
This is not negotiation
because the take it or leave it stand
implies threat.
3.
Side Bar Technique
TITLE VII- A
(as incorporated by RA 6715)
GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
ART. 260. GRIEVANCE MACHINERY
AND VOLUNTARY ARBITRATION
GRIEVANCE
MACHINERY
a
mechanism for the adjustment of
controversies or disputes arising from
the interpretation or implementation of
the CBA and the interpretation or
enforcement of company personnel
policies
GRIEVANCE - arises when a dispute or
controversy
arises
over
the
implementation or interpretation of a
CBA or from the implementation or
enforcement of company personnel
policies, and either the union or the
employer
invokes
the
grievance
machinery provision for the adjustment
or resolution of such dispute or
controversy.
NATURE OF GRIEVANCE PROCEDURE It is a must provision in any CBA and
no collective agreement can be
registered in the absence of such
procedure.
It is a part of the continuous
process of collective bargaining intended
to promote a friendly dialogue between
LABOR LAW COMMITTEE

46
labor and management as a means of

maintaining industrial peace.
VOLUNTARY
ARBITRATION
contractual proceedings where parties to
a dispute select a judge of their own
choice and by consent submit their
controversy to him for determination.
All grievances not settled within 7
days from the date of its submission to
the
grievance
machinery
shall
automatically be referred voluntary
arbitration prescribed in the CBA.
Although
the
provision
mentions parties to a
collective
bargaining
agreement, it does not
mean that a grievance
machinery cannot be set up
in a CBA-less enterprise. In
any work place where
grievance can arise, a
grievance
machinery
(regardless of name) can be
established.
In a unionized company, Art.
255 allows an employee,
union member or not, to
raise a grievance directly to
the employer.
b) Those
arising
from
the
interpretation or enforcement of
company personnel polices.
c) Hear
and
decide
wage
distortion issues arising from the
application of any wage orders
in organized establishments.
d) Unresolved grievances arising
from the interpretation and
implementation
of
the
productivity incentive programs
under RA 6071 .
GROSS VIOLATION flagrant and/or

malicious refusal to comply with the
economic provisions of the CBA.
2. JURISDICTION BY AGREEMENT OF
THE PARTIES (Art. 262)
-all other disputes including ULP
and bargaining deadlocks
The disputes the parties may
submit to a Voluntary Arbitrator
can include any or all the
disputes mentioned in Art. 217
which otherwise fall under the
exclusive jurisdiction of a labor
arbiter.
Voluntary arbitration may be
viewed as a master procedure to
prevent or resolve labor disputes
ARBITRATION MAY BE INITIATED BY:

1.
2.
SUBMISSION
AGREEMENT
where the parties define the

disputes to be resolved; or
DEMAND OR NOTICE invoking a
collective agreement
arbitration clause.
ART 261. JURISDICTION OF

VOLUNTARY ARBITRATORS OR PANEL
OF VOLUNTARY ARBITRATORS
JURISDICTION OF VOLUNTARY
ARBITRATORS:
1. EXCLUSIVE ORIGINAL JURISDICTION
CONFERRED BY LAW
a) All grievances arising from the
interpretation or implementation
of the CBA.
It is the labor arbiter and not the

grievance machinery which has
jurisdiction over dismissals pursuant
to the union security clause.
violations of CBA, except those
which are gross in character, shall no
longer be treated as ULP and shall
be resolved as grievances.
GROUNDS FOR JUDICIAL REVIEW OF

DECISIONS
OF
VOLUNTARY
ARBITRATORS:
1.
2.
3.
4.
5.
Lack of jurisdiction
Grave abuse of discretion
Violation of due process
Denial of substantial justice
Erroneous interpretation of the law
A voluntary arbitrator is a quasijudicial instrumentality (Sec 9 BP129

as amended by RA 7902); hence, a
LABOR LAW COMMITTEE

47
petition for certiorari under Rule 65

of the Rules of Court will lie where a
grave abuse of discretion or an act
without or in excess of jurisdiction
of the voluntary arbitrator is shown,
which may be filed with the Court of
Appeals.
TITLE VIII
STRIKES AND LOCKOUTS AND
FOREIGN INVOLVEMENT IN TRADE
UNION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOUTS
ART. 263. STRIKES, PICKETING AND
LOCKOUTS
STRIKE - Any temporary stoppage
of work by the concerted action of
employees as a result of an industrial
or labor dispute.
IMPORTANCE:
it is the most
effective weapon of labor in protecting
the rights of employees to improve the
terms
and
conditions
of
their
employment.
Government employees may form
labor unions but are not allowed to
strike.
Only legitimate labor organizations
are given the right to strike.
Ununionized workers may hold a
protest action but not a strike
Not all concerted activities are
strikes; they may only be protest
actions. And they do not necessarily
cause work stoppage by the
protesters. A strike, in contrast, is
always a group action accompanied
by work stoppage.
LOCKOUT - means the temporary
refusal of an employer to furnish work as
a result of an industrial or labor dispute.
PICKETING - the act marching to
and fro the employers premises, usually
accompanied by the display of placards
and other signs making known the facts
involved in a labor dispute. This is an
exercise of ones freedom of speech.
STRIKE-BREAKER - any person
who obstructs, impedes or interferes by
force, violence, coercion, threats or

intimidation with any peaceful picketing
by
employees
during
any
labor
controversy affecting wages, hour or
conditions of work or in the exercise of
the right to self organization or
collective bargaining
STRIKE AREA the establishment,
warehouse, depots, plants or offices,
including the sites or premises used as
runaway shops of the employer struck
against, as well as the immediate
vicinity actually used by picketing
strikers in moving to an fro before all
points of entrance to and exit from said
establishment
SOME EXAMPLES OF STRIKES AND
THEIR VALIDITY
A.
SIT-DOWN
STRIKE
is
characterized by a temporary work
stoppage of workers who thereupon
seize or occupy property of the employer
or refuse to vacate the premises of the
employer.
ILLEGAL- amounts to a
criminal act because the employees
trespass on the premises of the
employer.
B. WILDCAT STRIKE- is a work stoppage
that violates the labor contract and is
not authorized by the union. ILLEGAL- It
is not valid because it fails to comply
with certain requirements of the law, to
wit: notice of strike, vote, and report on
strike vote.
C. SYMPATHETIC STRIKES- are work
stoppages of workers of one company to
make common cause with other strikers
of other companies, without demands or
grievances of their own against the
employer. ILLEGAL - because there is no
labor dispute between the workers who
are joining the strikers and the latters
employer.
D. SECONDARY STRIKES- are work
stoppages of workers of one company to
exert pressure on their employer so that
the latter will in turn bring pressure
upon the employer of another company
with whom another union has a labor
dispute. ILLEGAL- because there is no
labor dispute involved.
IS A WELGA NG BAYAN LEGAL?
NO. A welga ng bayan is illegal
because it is a political strike and
LABOR LAW COMMITTEE

48
therefore there is neither a bargaining

deadlock nor any ULP. It is a political
rally.
GROUNDS
FOR
THE
DECLARATION OF STRIKE:
1. deadlock in collective bargaining
(ECONOMIC); and/or
and
strike
vote
maybe
dispensed
with.
They
may
strike immediately.
2. unfair labor practices (POLITICAL)

ECONOMIC STRIKE
ULP STRIKE
[POLITICAL]
A. NATURE
- A voluntary strike - An involuntary
because
the strike; the labor
employee
will organization
is
declare a strike to forced to go on
compel management strike because of
to grant its demands. the
ULP
committed
against them by
the employer. It
is an act of selfdefense since the
employees
are
being pushed to
the wall and their
only remedy is to
stage a strike.
B. INITIATED BY:
The
collective - either
bargaining agent of a.
Collective
the
appropriate bargaining agent
bargaining unit can or
declare an economic b. the legitimate
strike.
labor organization
in behalf of its
members
C. COOLING OFF PERIOD
-30 days from the
filing of the notice of
strike before the -15 days from the
intended date of filing
of
the
actual strike subject notice of strike.
to the 7-day strike
ban.
D. EXCEPTION TO THE COOLINGOFF PERIOD
- No exception - the cooling off
period
may
be
mandatory.
- Notice of strike
dispensed with, and

the union may take
immediate action in
case of dismissal
from employment
of their officers duly
elected
in
accordance with the
unions Constitution
and By-laws, which
may
constitute
union
busting
where
the
existence of the
union
is
threatened.
- BUT it must still
observe
the
mandatory 7-day
period before it
can stage a valid
strike.
E. STRIKE DURATION PAY IN CASE OF A

LEGAL STRIKE
- not entitled to said
pay based on the
principle that a fair
days wage accrues
only for a fair days
labor
- may be awarded
the said paid in the
discretion of the
authority deciding
the case.
CHARACTERISTICS OF STRIKES:
1. there must be an established
relationship between the strikers and
the person/s against whom the strike is
called
2. the relationship must be one of
employer and employee
3.
the existence of a dispute
between the parties and the utilization
by labor of the weapon of concerted
refusal to work as a means of persuading
or coercing compliance with the working
mens demands
4. the contention advanced by the
workers that although the work ceases,
the employment relation is deemed to
continue albeit in a state of belligerent
suspension
5. there is work stoppage, which
stoppage is temporary
6.
the work stoppage is done
through the concerted action of the
employees
7. the striking group is a legitimate
labor organization, and in case of
bargaining deadlock, is the employees
sole bargaining representative.
LABOR LAW COMMITTEE

49
TESTS IN DETERMINING THE

LEGALITY OF A STRIKE:
1. Purpose Test
2. Compliance with Procedural and
substantive requirements of law
3. Means employed test
1. PURPOSE TEST - The strike must be
due to either
- bargaining deadlock and/or
- unfair labor practice.
2. COMPLIANCE WITH PROCEDURAL &
SUBSTANTIVE REQUIREMENTS OF
LAW to wit (a-d):
a. notice of strike
b. 30/15-day cooling-off period
before
the intended date of actual
strike subject to the 7-day strike ban.
COOLING OFF PERIOD - that period
of time given the NCMB to mediate and
conciliate the parties.
It is that span of time
allotted by law for the
parties
to
settle
theirdisputes in a peaceful
manner, before staging a
strike or lockout.
c. strike vote
STRIKE VOTE - a requirement
wherein the decision to declare a strike
must be:
1. approved by a MAJORITY of the
total union membership in the
bargaining unit concerned [not
of the whole bargaining unit],
2. obtained by SECRET BALLOT
in
MEETINGS
OR
REFERENDA called for the
purpose.
PURPOSE OF A STRIKE VOTE: - to
ensure that the intended strike is a
majority decision
The report on the strike
vote must be submitted to the
DOLE at least 7 days before
the intended strike subject to
the cooling-off period.
d. 7-day strike ban

7-DAY STRIKE BAN it is the 7 day
waiting period before the date of the
purported strike [within which the union
intending to conduct a strike must at
least submit a report to the Department
as to the result of the strike vote]
intended to give the Department an
opportunity TO VERIFY whether the
projected strike really carries the
imprimatur of the majority of the union
members in addition to the cooling off
period before actual strike.
3. MEANS EMPLOYED TEST-A strike
may be legal at its inception but
eventually be declared illegal if the
strike is accompanied by violence
which violence is widespread,
pervasive and adopted as a matter of
policy and not merely violence which
is sporadic which normally occur in a
strike area [see prohibited activities
under art. 264].
NOTE: The 3 tests must concur.
Non-compliance with any of the
aforementioned requisites renders the
strike illegal.
EFFECT OF GOOD FAITH OF
STRIKERS ON LEGALITY OF STRIKE - A
strike may be considered legal where the
union believed that the company
committed ULP and the circumstances
warranted such belief in good faith,
although subsequently such allegations
of ULP are found out as not true. (Bacus
vs. Ople)
TOTALITY DOCTRINE - the
culpability of an employers remarks are
to be evaluated not only on the basis of
their implicit implications but are to be
appraised against the background of and
in
conjunction
with
collateral
circumstances.
Under this doctrine expressions
of opinion by an employer which, though
innocent in themselves, frequently were
held to be culpable because:
a. of the circumstances
under which they were uttered
LABOR LAW COMMITTEE

50
b. the history of the particular

employers labor relations of
anti-union bias or
c. because of their connection
with an established collateral
plan of coercion or interference.
WHEN CAN THE SEC. OF LABOR
ASSUME JURISDICTION OVER A STRIKE?
1.there exists a labor dispute causing or
likely to cause a strike or lockout in a
INDUSTRY INDISPENSABLE TO THE
NATIONAL INTEREST,
2.the
Secretary
of
Labor
and
Employment may:
a. decide it, or
b. certify the same to the NLRC for
COMPULSORY ARBITRATION.
(PAL vs. Sec. of Labor, 23 January

1991).
NOTE:
What
constitutes
indispensable industry is based solely
upon the discretion of the Secretary of
Labor.
EFFECTS OF THE ASSUMPTION
OF JURISDICTION OF THE SECRETARY
1. AUTOMATICALLY
ENJOINS
the
intended or impending strike or
lockout
as specified in the
assumption or certification order;
2. if one has already taken place at
the
time
of
assumption
or
certification, all striking or lockedout employees shall IMMEDIATELY
RETURN TO WORK; and
3. the employer shall immediately
resume operations and READMIT ALL
WORKERS under the same terms and
conditions prevailing before the
strike or lockout.
c.
Issues submitted to the Secretary

for resolution and such issues
involved in the labor dispute itself.
(St. Scholasticas College vs.
Torres; 29 June 1992)
e.
Secretary of Labor may subsume

pending labor cases before Labor
Arbiters which are involved in the
dispute and decide even issues
falling under the exclusive and
original jurisdiction of labor
arbiters such as the declaration of
legality or illegality of strike.
(Intl Pharmaceuticals vs. Sec of
Labor; 09 January 1992).
f.
Power of Sec. of Labor is plenary

and discretionary. (St. Lukes
Medical Center vs. Torres; 29 June
1993; reiterated in PAL vs.
Confesor; 10 March 1994).
IN CASE THE STRIKE IS DECLARED

LEGAL, ARE THE STRIKERS ENTITLED
TO STRIKE DURATION PAY?
GENERAL RULE: Strikers are not
entitled to their wages during the period
of a strike, even if the strike is legal.
EXCEPTIONS:
1.
In case of a ULP STRIKE, in the

discretion of the authority deciding
the case [see table for more
distinction bet. Economic and ULP
strike]
2.
Where the strikers VOLUNTARILY

AND UNCONDITIONALLY OFFERED
TO RETURN TO WORK, but the
employer refused to accept the
offer [e.g. of an unconditional
offer: we will return tomorrow
and NOT willing to return
provided]
They are entitled to backwages from

the date the offer was made
A motion for reconsideration does

not suspend the effects as the
assumption order is immediately
executory.
ISSUES THAT THE SECRETARY OF

LABOR CAN RESOLVE WHEN HE
ASSUMES JURISDICTION OVER A LABOR
DISPUTE:
d.
Only issues submitted to the

Secretary may be resolved by him.
LABOR LAW COMMITTEE

51
3.
Where there is RETURN-TO-WORK

ORDER and the
employees are
discriminated against.
ART.
ACTIVITIES
264.
PROHIBITED
LABOR ORGANIZATIONS
-
They are entitled to backwages

from the date of discrimination.
1. No labor organization or employer

shall declare a strike or lockout
RULE ON REINSTATEMENT OF
STRIKING WORKERS:
without
first
having
bargained
collectively
in
accordance with Title VII of
this Book or
GENERAL RULE : Striking employees

are entitled to reinstatement, regardless
of whether or not the strike was the
consequence of the employers ULP
REASON: because while out on
strike, the strikers are not considered to
have abandoned their employment, but
rather have only ceased from their labor.
without
the
necessary
strike or lockout vote first
having been obtained and
reported to the Department.
The declaration of a strike is

NOT
a
renunciation
of
employment relation.
EXCEPTIONS - The following strikers

are NOT entitled to reinstatement:
1. Union officers who knowingly
participate in an illegal strike; and
2. any striker/union member who
knowingly
participates
in
the
commission of illegal acts during the
strike.
without first having filed

the notice required in Art. 263
or
Those union members who

joined an illegal strike but have
not committed any illegal act
shall be reinstated but without
any backwages.
RULE IN STRIKES IN HOSPITALS

1. It shall be the duty of striking
employees or locking-out employer to
provide and maintain an effective
SKELETAL WORKFORCE of medical
and other health personnel for the
duration of the strike or lockout.
2. SECRETARY
OF
LABOR
MAY
IMMEDIATELY ASSUME JURISDICTION
WITHIN
24
HOURS
FROM
KNOWLEDGE of the occurrence of
such strike or lock-out or certify it to
the Commission for compulsory
arbitration.
NO strike
declared:
or
lockout
shall
be
a. AFTER
assumption
of
jurisdiction by the President
or the Secretary or
b. AFTER
certification
or
submission of the dispute to
compulsory or voluntary
arbitration or
c. DURING the pendency of
cases involving the same
grounds for the strike or
lockout.
THIRD PERSONS
2. NO person [3rd persons] all obstruct,
impede or interfere with by force,
violence,
coercion,
threats
or
intimidation
any peaceful picketing by
employees
during
any
labor
controversy or in the
exercise of the right of selforganization or collective
bargaining or
LABOR LAW COMMITTEE

52
shall aid or abet such

obstruction or interference.
ART. 265. IMPROVED OFFER vs.

REDUCED OFFER BALLOTING
EMPLOYERS
3.
NO employer shall use or employ

any STRIKE-BREAKER nor shall any
person
be
employed
as
a
strikebreaker.
PUBLIC OFFICIAL OR EMPLOYEE
4.
NO public official or employee,

including officers and personnel of
the New Armed Forces of the
Philippines of the Integrated
National Police, or armed persons,
shall bring in, introduce or

escort in any manner, any
individual who seeks to
replace strikes in entering
or leaving the premises of a
strike area, or work in place
of the strikers.
The police force shall keep
out of the picket lines
unless actual violence or
other criminal acts occur
therein:
IMPROVED OFFER
BALLOTING
1. a referendum
conducted by the NCMB
on or before the 30th day
of the strike, for the
purpose of determining
whether or not the
improved offer of the
employer is acceptable
to the union members.
PURPOSE
2. to determining
whether or not the
improved offer of the
EMPLOYER is acceptable
to the union members.
to ascertain the
real sentiment of
the silent majority
of
the
union
members on strike.
Provided, That nothing herein shall

be interpreted to prevent any public
officers from taking any measure
necessary to:
a. maintain peace and order,
b.
and/or
protect life and property,
c.
order.
enforce the law and legal
PERSONS ENGAGED IN PICKETING

NO person engaged in PICKETING shall:
a. commit any act of violence,
coercion or intimidation or
b. obstruct the free ingress to or
egress from the employers premises
for lawful purposes,or
c. obstruct public thoroughfares
PERIOD OF FILING
3. on or before the
30th day of the strike
LIMITATION
4.
applies
economic
(deadlock)
only to
strikes
REDUCED
OFFER
BALLOTING
1.
a
referendum
conducted
by
the NCMB for the
purpose
of
determining
whether or not
the
reduced
offer of the
union
is
acceptable
to
the board of
directors,
trustees
or
partners.
2.
to
determining
whether or not
the
improved
offer of the
UNION
is
acceptable
to
the
union
members.
to ascertain
the
real
sentiment of the
silent
majority
of the union
members
on
strike.
3.
on or
before the 30th
day
of
the
lockout
4.
applies
only to economic
strikes-deadlock
in
bargaining
(lockout)
ART. 266. ARREST AND DETENTION

General rule is that a police officer
cannot arrest or detain a union
member for union activities without
previous consultations with the
Secretary of Labor EXCEPT on
grounds of:
LABOR LAW COMMITTEE

53
a. national security
b. public peace
c. commission of a crime
BOOK SIX
POST EMPLOYMENT
TITLE I
TERMINATION OF
EMPLOYMENT
ART. 279. SECURITY OF TENURE
SECURITY OF TENURE - the
constitutional
right
granted
the
employee, that the employer shall not
terminate the services of an employee
except for just cause or when authorized
by law.
RELIEFS
AVAILABLE
TO
AN
ILLEGALLY DISMISSED EMPLOYEE:
A. REINSTATEMENT - Restoration of
the employee to the state from which he
has been unjustly removed or separated
without loss of seniority rights and other
privileges.
FORMS OF REINSTATEMENT:
ACTUAL OR PHYSICAL REINSTATEMENT
- the employee shall be admitted
back to work
2. PAYROLL REINSTATEMENT
- the employee is merely reinstated
in the payroll.
1.
May
a
court
order
the
reinstatement
of
a
dismissed
employee even if the prayer of the
complaint did not include such relief?
YES. So long as there is a finding
that the employee was illegally
dismissed, the court can order the
reinstatement of an employee even if
the complaint does not include a prayer
for reinstatement, unless, of course, the
employee has waived his right to
reinstatement. By law, an employee who
is unjustly dismissed is entitled to
reinstatement, among others. The mere
fact that the complaint did not pray for

reinstatement will not prejudice the
employee, because technicalities of law
and procedure are frowned upon in labor
proceedings (General Baptist Bible
College v. NLRC; 219 SCRA 549).
What happens if there is an order
of reinstatement but the position is no
longer available?
The employee should be given a
SUBSTANTIALLY EQUIVALENT POSITION.
If NO SUBSTANTIALLY EQUIVALENT
POSITION IS AVAILABLE, reinstatement
should not be ordered because that
would in effect compel the employer to
do the impossible. In such a situation,
the employee should merely be given
SEPARATION PAY CONSISTING OF ONE
MONTH SALARY FOR EVERY YEAR OF
SERVICE (1:1).
CIRCUMSTANCES
WHEN
COMPANY MAY NOT REINSTATE DESPITE
ORDER OF REINSTATEMENT
1. TRANSFER OF BUSINESS OWNERSHIP
-There is no law requiring a
purchasing corporation to absorb the
employees of the selling corporation.
A fortiori, reinstatement of unjustly
dismissed employees CANNOT be
enforced against the new owner
UNLESS
there
is
an
express
agreement on the assumption of
liabilities
by
the
purchasing
corporation;
2. When reinstatement is rendered
IMPOSSIBLE due to the abolition of
the position;
3. When the business has CLOSED
DOWN;
4. PHYSICAL INCAPACITY
of the
employee; and
5. DOCTRINE OF STRAINED RELATIONS
- When the employer can no longer
trust the employee and vice-versa,
reinstatement could not effectively
serve as a remedy. This doctrine only
applies only to positions which
require trust and confidence
- Under the circumstances
where
the
employment
relationship has become so
strained
to
preclude
a
harmonious
working
LABOR LAW COMMITTEE

54
relationship, and that all hopes

at reconciliation are nil after
reinstatement, it would be
more beneficial to accord the
employee
backwages
and
separation pay.
B. BACKWAGES the relief given to
an employee to compensate him for lost
earnings during the period of his
dismissal.
PERIOD COVERED BY THE
PAYMENT
OF BACKWAGES Backwages shall cover the period from
the date of dismissal of the employee up
to the date of actual reinstatement
HOW COMPUTED - Under existing
law, backwages is computed from the
time of the illegal dismissal up to time of
actual reinstatement.
INCLUDED IN THE COMPUTATION
OF BACKWAGES
1. transportation
and
emergency
allowances
2. vacation or service incentive leave
and sick leave
3. 13th month pay.
NOTE: facilities such as uniforms,
shoes, helmets and ponchos should NOT
be included in the computation of
backwages.
REASON: said items are given free,
to be used only during official tour of
duty not for private or personal use.
CIRCUMSTANCES THAT PREVENT
AWARD OF BACKWAGES:
1. death of the employee
2. physical and mental incapacity
3. business reverses
4. closure of business
5. reinstatement of dismissed employee
confinement in jail
Which
takes
precedence
in
conflicts arising between employers
MANAGEMENT PREROGATIVE and the
employees right to security of tenure?
The employees right to security
of tenure. Thus, an employers
management prerogative includes the
right to terminate the services of the
employee
but
this
management
prerogative is limited by the Labor Code
which provides that the employer can
terminate an employee only for a just
cause or when authorized by law. This
limitation is because no less than the
constitution recognizes and guarantees
employees right to security of tenure.
(Art. 279, Labor Code; Art. XIII, Sec. 3,
Constitution)
ART. 280. REGULAR AND CASUAL
EMPLOYMENT
REGULAR EMPLOYMENT - one wherein
an employee is engaged to perform
activities which are usually necessary or
desirable in the usual business or trade
of the employer.
- He is a regular employee at the point
of hiring.
Test of
employment.
regularity:
nature
of
CASUAL EMPLOYMENT one wherein an

employee is engaged to perform
activities which are not necessary or
desirable in the usual trade or business
of the employer.
- becomes a regular employee after
one (1) year of service.
REGULAR EMPLOYEE
VS.
PROJECT EMPLOYEE
PROJECT
EMPLOYEE
REGULAR
EMPLOYEE
A project employee is
one
whose
employment is fixed
for a specific project
or undertaking the
completion of which
has been determined
at the time of the
engagement of the
employee. (See Art.
280 LC)
A
regular
employee
is
one
engaged to perform
activities which are
usually necessary or
desirable in the usual
business or trade of
the employer
TEMPORARY EMPLOYMENT OR
EMPLOYMENT FOR A FIXED SPECIFIC
PERIOD - one wherein an employee is
engaged to work on a specific project or
undertaking which is usually necessary or
LABOR LAW COMMITTEE

55
desirable in the usual business or trade

of the employer, the completion of
which has been determined at the time
of the engagement of the employee.
- He does not become a regular
employee. The employment is
coterminous with the specific
period.
SEASONAL EMPLOYMENT - one
wherein an employee is engaged to work
during a particular season on an activity
that is usually necessary or desirable in
the usual business or trade of the
employer.
Pakiao employees are considered
employees as long as the
employer exercises control over
the means by which such
workers are to perform their
work.
Employee is considered an
regular employee insofar as the
season to which he was
employed is concerned.
- during the off-season his
employment
is
merely
suspended not terminated
(Phil. Tobacco Flue Curring
and Drying Corp. vs. NLRC).
PROBATIONARY PERIOD OF
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e.,
the time needed to learn the job.
It is the period during which the
employer may determine if the
employee is qualified for possible
inclusion in the regular force.
PURPOSE: To afford the employer an
opportunity to observe the fitness of a
probationary employee at work.
NOTE:The standard which the
probationary employee is to meet must
be made known by the employer to the
employee at the time of engagement.
The services of probationary employees
may be terminated for the same causes
as in the case of regular employee,
except that there is an additional ground
failure to meet the standard.
LIMITATIONS
ON
THE
EMPLOYERS POWER TO TERMINATE A
PROBATIONARY
EMPLOYMENT
CONTRACT:
1. the power must be exercised in
accordance with the specific
requirements of the contract
[COMPLIANCE
WITH
SPECIFIC
REQUIREMENTS];
2.if a particular time is prescribed,
the termination must be within such
time and if formal notice is
required, then that form must be
used
[WITHIN
PARTICULAR
PRESCRIBED TIME];
3.the
employers
dissatisfaction
must be real and in good faith, not
feigned so as to circumvent the
contract
or
the
law
[DISSATISFACTIONREAL AND IN
GOOD FAITH]; and
4.there must BE NO UNLAWFUL
DISCRIMINATION in the dismissal.
GENERAL
RULE:
Probationary
employment shall not exceed six months
from the date the employee started
working.
EXCEPTIONS:
1.
when it is covered by an
apprenticeship agreement stipulating a
longer period; or
2. when the parties to an
employment contract agree otherwise,
such as when the same is established by
company policy or when the same is
required by the nature of the work to be
performed by the employee
EFFECT IF PROBATIONARY
EMPLOYEE IS ALLOWED TO WORK
BEYOND 6 MONTHS
If the probationary employee is
allowed to work beyond the period of 6
months or the agreed probationary
period, said employee becomes a regular
employee by operation of law.
Under the Labor Code, an
employee who is allowed to work after a
probationary period shall be considered
a regular employee. (Art. 281.)
ART. 282. TERMINATION BY
EMPLOYER
SECURITY OF TENURE - An
employer
CANNOT
terminate
the
LABOR LAW COMMITTEE

56
services of an employee EXCEPT for a

just cause or when authorized by law.
GUIDELINES TO DETERMINE THE
VALIDITY OF TERMINATION:
1. Gravity of the offense
2. Position
occupied
by
the
employee
3. Degree of damage to the
employer
4. Previous infractions of the same
offense
5. Length of service
A. JUST CAUSES [MaNaBaCA]:
1. Serious MISCONDUCT OR WILLFUL
DISOBEDIENCE by the employee of
the lawful orders of his employer or
representative in connection with his
work;
Misconduct- transgression of
some established and definite
rule of action, a forbidden act, a
dereliction of duty, willful in
character, and implies wrongful
intent and not mere error in
judgment. (Dept. of Labor
Manual, Sec. 4353.01)
2. Gross and habitual NEGLECT by the
employee of his duties; (Repeated
absenteeism and tardiness)
3. FRAUD OR WILLFUL BREACH by the
employee of the trust reposed in him
by his employer or duly organized
representative
Fraud must be committed
against the employer or his
representative and in connection
with the employees work.
((Dept. of Labor Manual, Sec.
4353.01 [3])
4. Commission of a CRIME OR OFFENSE
BY THE EMPLOYEE AGAINST THE
PERSON OF HIS EMPLOYER or any
immediate member of his family or
his duly authorized representative;
and
Conviction or prosecution is not
required.
5. Other causes ANALOGOUS to the
foregoing.
A cause must be due to the
voluntary or willful act or
omission of the employee.

(Nadura
v.
Benguet
Consolidated; G.R. No. L-17780)
DUE PROCESS TO BE OBSERVED
BY THE EMPLOYER - For termination of
the employment based on the any of the
just causes for termination, the
requirements of due process that an
employer must comply with are: (TWIN
NOTICES)
1. Written NOTICE should be served
to the employee specifying the
ground or grounds for termination
and giving the said employee
reasonable
opportunity
within
which to explain;
2. A HEARING OR CONFERENCE
should be held during which the
employee concerned, with the
assistance of counsel, if the
employee so desires, is given the
opportunity to respond to the
charge, present his evidence and
present the evidence presented
against him;
3. A
WRITTEN
NOTICE
OF
TERMINATION, if termination is
the decision of the employer,
should be served on the employee
indicating
that
upon
due
consideration
of
all
the
circumstances, grounds have been
established
to
justify
his
termination.
For
termination
of
employment
based
on
authorized
causes,
the
requirements of due process
shall be deemed complied with
upon service of a written notice
to the employee and the
appropriate Regional office of
the Department of Labor and
employment at least thirty days
before the effectivity of the
termination
specifying
the
grounds for termination.
NOTE: Under the so-called WENPHIL
DOCTRINE if the services of the
employee was terminated due to a just
or authorized cause but the affected
employees right to due process has
been violated, the dismissal is legal but
LABOR LAW COMMITTEE

57
the employee is entitled to damages by

way of indemnification for the violation
of the right.
SERRANO vs. ISETANN et. al.

abandoned
the
WENPHIL
DOCTRINE and ruled that if the
employee is dismissed under just
or authorized cause but the
affected employees right to due
process has been violated, his
dismissal becomes ineffectual.
Therefore, the employee is
entitled to backwages from the
time he was dismissed until the
determination of the justness of
the cause of the dismissal.
AGABON vs. NLRC (Nov. 17,
2004) abandoned the Serrano
doctrine and REINSTATED THE
WENPHIL DOCTRINE.
The
sanctions, however must be
stiffer than that imposed in
Wenphil.
PREVENTIVE SUSPENSION when

there is an imminent threat to the lives
and properties of the employer, his
family and representatives as well as the
offenders co-workers by the continued
service of the employee then he may be
placed under preventive suspension
pending his investigation, leading to
termination.
preventive suspension should not

last for more than thirty (30)
days. The employee should be
made to resume his work after
30 days.
it can be extended provided the

employees wages are paid after the
30 day period.
ARTS. 283-284.
B.
AUTHORIZED
CAUSES
TERMINATION BY THE EMPLOYER:
OF
1. installation of labor-saving devices

(AUTOMATION)
2. REDUNDANCY (superfluity in the

performance of a particular work)
redundancy, for purposes of the

Labor Code, exists where the
services of an employee are in
excess of what is reasonably
demanded
by
the
actual
requirements of the enterprise.
(Wishire File Co. Inc. vs. NLRC)
Reorganization as a cost-saving
device
is
acknowledged
by
jurisprudence. An employer is not
precluded from adopting a new
policy conducive to a more
economical
and
effective
management, and the law does not
require that the employer should
be suffering financial losses before
he can terminate the services of
the employee on the ground of
redundancy (DOLE PHILIPPINES,
INC et al., vs. NATIONAL LABOR
RELATIONS COMMISSION et al.)
3. RETRENCHMENT to prevent losses

(there is excess of employees and
employer wants to prevent financial
losses)
CONDITIONS UNDER WHICH AN
EMPLOYER MAY RETRENCH:
(a) substantial losses which are not
merely de minimis in extent;
(b) imminence of such substantial
losses;
(c) retrenchment would effectively
prevent the expected and additional
losses;
(d) the alleged losses and expected
losses must be proven by sufficient and
convincing
evidence.
(NDC-GUTHRIE
PLANTATIONS, INC., vs. NATIONAL LABOR
RELATIONS COMMISSION, ET. AL)
4. closing
or
CESSATION
OF
OPERATION of the establishment or
undertaking UNLESS the closing is for
the purpose of circumventing the
provisions of the Labor Code.
5. INSTALLATION of labor saving
devices(Automation, Robotics)
LABOR LAW COMMITTEE

58
6. DISEASE
a. the disease is incurable
within 6 months and the
continued employment of
the employee is prohibited
by law or prejudicial to his
health as well as to the
health of his co-employees
b. with a certification from
public heath officer that the
disease is incurable within 6
months
despite
due
medication and treatment.
Before an employer could
dismiss an employee based on a
disease, Section 8 of Rule 1, Book VI
of the Omnibus Rules Implementing
the
Labor
Code
requires
a
certification by a competent public
health authority that the disease is
of such a nature or at such stage
that it cannot be cured within a
period of 6 months even with proper
medical treatment. (Cathay Pacific
Airways vs. NLRC and Martha
Singson)
DISCRIMINATION IN ANY FORM FROM

PRE-EMPLOYMENT
TO
POSTEMPLOYMENT, INCLUDING HIRING,
PROMOTION OR ASSIGNMENT, BASED
ON THE ACTUAL, PERCEIVED OR
SUSPECTED HIV STATUS OF AN
INDIVIDUAL
IS
PROHIBITED.
TERMINATION FROM WORK ON THE
SOLE BASIS OF ACTUAL, PERCEIVED
OR SUSPECTED HIV STATUS IS
DEEMED UNLAWFUL. (SEC. 35, RA
8504, HIV/AIDS LAW)
CAUSE OF
TERMINATION
Automation
Redundancy
SEPARATION
PAY
Equivalent to at
least one month pay or
at least one month pay
for every year of
service, whichever is
higher
Equivalent to at
least one month pay or
at least one month pay
for every year of
Retrenchment
Closures or
cessation
of
operations
not
due to serious
business losses or
financial reverses
Disease
higher
Equivalent to one
month pay or at least
one-half month pay for
every year of service
Equivalent to one
month pay or at least
one-half month pay for
every year of service
(If due to severe
financial losses, no
separation pay due.)
Equivalent to at
least one-month salary
or to month salary
for every year of
greater, a fraction of at
least 6 months shall be
considered
one
(1)
whole year.
NOTE: ARTICLE 283 governs the

grant of separation benefits in case of
closures or cessation of operation of
business establishments NOT due to
serious business losses or cessation of
operation [North Davao Mining Corp. vs.
NLRC, et al]. Therefore, the employee
is not entitled to such benefit if the
closure was due to SERIOUS BUSINESS
LOSSES.
When termination of employment
is brought by the failure of an employee
to meet the standards of the employer in
case of probationary employment, it
shall be sufficient that a written notice
is served the employee within a
reasonable time from the effective date
of termination.
When termination is brought
about by the completion of the contract
or phase thereof, no prior notice is
required
LABOR LAW COMMITTEE

59
ART. 285. TERMINATION BY

EMPLOYEE
TERMINATION BY THE EMPLOYEE:
a. WITHOUT JUST CAUSE- by serving a
WRITTEN NOTICE on the employer at
least one month in advance. The
employer upon whom no such notice was
served may hold the employee liable for
damages.
b. WITH JUST CAUSE - An employee may
put an end to establish WITHOUT
SERVING ANY NOTICE on the employer
for any of the following just causes
[SUCA]:
1. SERIOUS
INSULT
by
the
employer or his representative
on the hour and person of the
employee;
2. Inhuman
and
UNBEARABLE
TREATMENT
accorded
the
employee by the employer or his
representative;
3. Commission of a CRIME OR
OFFENSE by the employer or his
representative
against
the
person of the employee or any of
the immediate members of his
family; and
4. Other causes ANALOGOUS to any
of the foregoing.
ART. 287. RETIREMENT
RETIREMENT AGE - The age of
retirement is that specified in the CBA or
in the employment contract. In the
absence of a retirement plan or
agreement providing for retirement
benefits
of
employees
in
an
establishment, an employee upon
reaching the age of 60 years or more,
but not beyond 65 years which is hereby
declared as the compulsory retirement
age, who has served at least 5 years in
said establishment.
The rule is different with respect
to underground mining employees
whose optional retirement age is
50-60 provided they have at least
served for a period of 5 years (Art.
287 as amended by RA 8558).
BENEFITSA retiree is entitled to

a retirement pay equivalent to at least
month salary for every year of service,
a fraction of at least six (6) months
being considered as one whole year.
Unless the parties provide for
broader inclusions, the term one half
(1/2) month salary shall mean:
15 days plus 1/12 of the 13 th
month pay and
the cash equivalent of NOT more
than 5 days of service incentive
leaves.
(22.5 days per year of service)
Under Section 26, R.A. No. 4670,
otherwise known as the Magna Carta for
Public School Teachers, public school
teachers having fulfilled the age and
service requirements of the applicable
retirement laws shall be given ONE
RANGE SALARY RAISE upon retirement,
which shall be the basis of the
computation of the lump sum of the
retirement pay and the monthly benefit
thereafter.
NOTE: Exempted from the payment
of retirement pay are retail, service and
agricultural establishments or operations
employing NOT more than ten (10)
employees or workers.
Age
60-65
Retirement
Optional
but
the
employee must have served
at least 5 years
65
Compulsory (no need

for five years of service)
LABOR LAW COMMITTEE

60
BOOK SEVEN
NOTE: The period of prescription

mentioned under Article 292 of the
Labor Code refers to and is limited to
money claims, all other cases of injury
to rights of a workingman being
governed by the Civil Code. Hence,
REINSTATEMENT prescribes in 4 years.
TRANSITORY AND FINAL

PROVISIONS
PRESCRIPTION
CLAIMS
TITLE II
OF OFFENSES
AND
VENUE: The Regional Arbitration Branch

where the workplace is located (NLRC
Rules of Procedure.
ART. 291. MONEY CLAIMS

PERIODS OF PRESCRIPTION
Cause
MONEY
CLAIMS
ULP
ILLEGAL
DISMISSAL
REINST
ATEMENT
Period
of
Prescription
3 years from the
accrual of the causes of
action
1 year from the
accrual of the cause of
action
4 years from the
accrual of the cause of
action
4 years
LABOR LAW COMMITTEE

61
Appendices
SPECIAL LAWS
SOCIAL SECURITY SYSTEM
RA1161 as amended by RA 8282
COVERAGE:
Compulsory:
1. Compulsory upon all employees
not over 60 years of age and
their employers
2. In case of domestic helpers,
their monthly income should not
be less than one thousand pesos
Limitation: Sec. 9 (a)
a. Any benefit already earned
by the employees under
private benefit plans existing
at the time of the approval
of the Act shall not be
discontinued, reduced or
otherwise impaired
b. Private plans which are
existing and in force at the
time of compulsory coverage
shall be integrated with the
plan of the SSS in such a way
where
the
employers
contribution to his private
plan is more than that
required of him in this Act,
he shall pay to the SSS only
the contribution required of
him and he shall continue his
contribution to such private
plan less his contribution to
the SSS
so
that
the
employers
total
contribution to his benefit
plan and and to the SSS
shall be the same as his
contribution to his private
benefit plan before any
compulsory coverage.
c. Any changes, adjustments,
modifications, eliminations
or improvements in the
benefits to be available
under the remaining private
plan,
which
may
be
necessary to adopt by reason
of the reduced contribution
thereto as a result of the

integration shall be subject
to agreements between the
employers
and
the
employees concerned
d. The private benefit plan
which the employer shall
continue for his employees
shall remain under the
employers managementand
control unless there is an
existing agreement to the
contrary.
e. Nothing in this Act shall be
construed as a limitation on
the right of employers and
employees to agree on and
adopt benefits which are
over
and
above
those
provided under this act
3. Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to
the following (Sec 9-A): (APAPI)
1. All
self
employed
professionals
2. Partners
and
single
proprietors
3. Actors
and
actresses
directors, scriptwriters and
news correspondents who do
not fall within the definition
of the term employee in
Section 8 (d) of this Act
4. Professional
athletes,
coaches,
trainers,
and
jockeys
5. Individual
farmers
and
fishermen
Voluntary:
1. Spouses who devote full time to
managing the household and
family affairs, unless they are
also engaged in other vocation or
employment which is subject to
mandatory coverage, may be
covered by the SSS on a
voluntary basis.
2. Filipinos recruited by foreign
based employers for employment
abroad may be covered by the
SSS on a voluntary basis
LABOR LAW COMMITTEE

62
3. Employees
separated
from
employment may continue to
pay contributions to maintain his
right to full benefits (Sec. 11)
4. Self-employed with no income
(11-A)
BY AGREEMENT:
Any
foreign
government,
international organization, or their
wholly-owned instrumentality employing
workers in the Philippines, may enter
into an agreement with the Philippine
government for the inclusion of such
employees in the SSS except those
already covered by their respective civil
service retirement systems (Sec.8 (j (4)).
EXCLUDED EMPLOYMENT (SEC. 8 (J)):
1. Employment purely casual and not
for the purpose of occupation or
business of the employer
2. Service performed on or in
connection with an alien vessel by
an employee if he is employed when
such
vessel
is
outside
the
Philippines.
3. Service performed in the employ of
the Philippine government or
instrumentality or agency thereof.
4. Service performed in the employ of
a foreign government, international
organization, or their wholly owned
instrumentality;
5. Services performed by temporary
employees, which may be excluded
by regulation of the commission.
EFFECTIVE DATE OF COVERAGE:
1. Employer: It shall take effect on
the first day of his operation
2. Employee: On the day of his
employment
3. Self-employed: It shall take
effect upon his registration with
SSS
person who is under his orders as regards

the employment except the Government
and any of its political subdivisions,
branches or instrumentalities, including
corporations owned or controlled by the
Government
Self- employed person shall be
both the employer and employee at the
same time
EMPLOYEE
Any
person
who
performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation for
such services, where there is an
employer- employee relationship.
Self- employed person shall be
both the employer and employee at the
same time
DEPENDENTS:
1. The legal spouse entitled by law
to receive support from the
member
2. the legitimate, legitimated or
legally adopted and illegitimate
child who is unmarried, not
gainfully employed and has not
reached 21 years of age or if 21
years of age, he is congenitally
incapacitated or while still a
minor has been permanently
incapacitated and incapable of
self- support, physically and
mentally and
3. the parent who is receiving
regular
support
from
the
member
BENEFICIARIES
a.
Definition of Terms
EMPLOYER
Any person natural or juridical,
domestic or foreign, who carries on in
the Philippines, any trade business,
industry undertaking or activity of any
kind and uses the services of another
b.
The dependent spouse until he

or
she
remarries,
the
dependent
legitimate,
legitimated or legally adopted
and illegitimate children who
shall
be
the
primary
beneficiaries of the member
PROVIDED that the dependent
illegitimate children shall be
entitled to 50% of the share of
the legitimate, legitimated or
legally adopted children.
LABOR LAW COMMITTEE

63
c.
d.
e.
PROVIDED FURTHER in the

absence of the legitimated,
legally adopted or legitimate
children, illegitimate children
shall be entitled to 100% of
the benefits.
IN THEIR ABSENCE, the
dependent parents who shall
be
the
secondary
beneficiaries.
IN THE ABSENCE OF ALL of
the foregoing, any person
designated by the covered
employee
as
secondary
beneficiary.
resumption of self-employment
of a retired employee who is
less than 65 years old.
4. Death Benefits
5. Permanent disability benefits
6. Funeral Benefit
A funeral grant equivalent to Twelve
thousand pesos (P12, 000.00) shall
be paid, in cash or in kind, to help
defray the cost of funeral expenses
upon the death of a member,
including
permanently
totally
disabled member or retiree.
Benefits
1. Monthly pension
2. Dependents pension
It shall be paid for each dependent
child conceived on or before the
date of the contingency but not
exceeding five, beginning with the
youngest
without
substitution
PROVIDED that where there are
legitimate and illegitimate children,
the former shall be preferred.
3. Retirement benefits
A member who has paid at least 120
monthly contributions prior to
the semester of retirement and
who:
a. has reached the age of
60 years and is already
separated
from
employment
or
has
ceased to be selfemployed
b. has reached the age of
65 years, shall be
entitled for as
A covered member who is 60 years
old not qualified under No. 1
shall still be entitled to
retirement benefits PROVIDED,
he
is
separated
from
employment
and
is
not
continuing
payment
of
contributions to the SSS on his
own.
SUSPENSION OF MONTHLY PENSION:
Upon the re-employment or
7. Sickness benefit
Requirements:
a. A member must have paid at
least 3 monthly contributions
in the twelve month period
immediately preceding the
semester of sickness or injury
b. and is confined therefor for
more than three days in a
hospital or elsewhere with the
approval of the SSS
8. Maternity Leave Benefit
It shall be paid
to a female
employee who has paid at least 3
monthly contributions in the twelve
month period immediately preceding
the semester of her childbirth or
miscarriage PROVIDED:
a. That the employee shall have
notified her employer of her
pregnancy and the probable
date of her childbirth which
notice shall be transmitted to
the SSS.
b. The full payment shall be
advanced by the employer
within 30 days from the filing
of
the
maternity
leave
application
c. Payment of daily maternity
benefits shall be a bar to the
recovery of sickness benefits
d. The
maternity
benefits
provided under this section
shall be paid only for the first
4 deliveries or miscarriages
e. The SSS shall immediately
reimburse the employer 100%
LABOR LAW COMMITTEE

64
f.
of the benefits advanced by

the latter
If no contributions were
remitted by the employer or
no notice was given to SS, the
employer shall be liable for
damages equivalent to the
benefits which said employee
member would otherwise have
been entitled to.
Non-transferability of benefits
(Sec. 15)
Such benefits are not transferable
and no power of attorney or other
document
executed
by
those
entitled thereto, in favor of any
agent, attorney or any other person
for the collection thereof on their
behalf shall be recognized, except
when they are physically unable to
collect personally such benefits.
Sources of Fund
1. Collection:
Beginning on the last day of the
month
when
an
employees
compulsory coverage takes effect
and every month thereafter during
his employment, his employer shall
pay the employers contribution and
shall deduct and withhold from such
employees monthly salary the
employees contribution.
The same time of collection for
self-employed
2. Remittance:
It shall be remitted within the first
10 days of each calendar month
following the month for which they
are applicable or within such time
as the Commission may prescribe.
For self-employed they shall
remit their contributions quarterly
on such dates and schedules as the
Commission may require.
(NOTE: SEE TABLE ON SOCIAL WELFARE
LEGISLATION FOR COMPARISON WITH
GSIS)
GOVERNMENT SERVICE
INSURANCE SYSTEM
RA 8291
COMPULSORY MEMBERSHIP (Sec. 3)
Compulsory for all employees (as
defined in Section 2 (d) of GSIS Law)
receiving compensation who have not
reached the compulsory retirement age,
irrespective of employment status,
EXCEPT MEMBERS OF THE ARMED
FORCES AND THE PNP, subject to the
condition that they must settle first their
financial obligations with the GSIS and
contractuals who have no employer and
employee relationship with the agencies
they serve.
EXCEPT FOR THE MEMBERS OF
THE JUDICIARY AND CONSTITUTIONAL
COMMISSIONS WHO SHALL HAVE LIFE
INSURANCE ONLY, all members of the
GSIS
shall
have
life
insurance,
retirement and all other social security
protection
such
as
disability,
survivorship,
separation
and
unemployment benefits.
COMPUTATION OF SERVICE
The computation of service for
the purpose of determining the amount
of benefits payable shall be FROM THE
DATE OF THE ORIGINAL APPOINTMENT/ ELECTION
INCLUDING PERIODS OF SERVICE AT DIFFERENT
TIMES UNDER THE AUTHORITY OF THE REPUBLIC
OF THE PHILIPPINES AND THOSE THAT MAY BE
PRESCRIBED BY THE GSIS IN COORDINATION
WITH THE CIVIL SERVICE COMMISSION.
All
service
credited
for
retirement, resignation or separation for
which corresponding benefits have been
awarded shall be EXCLUDED in the
computation of service in case of
reinstatement in the service of an
employer and subsequent retirement or
separation which is compensable.
Definition of Terms
Employer:
The
national
government,
its
political
subdivisions,
branches,
agencies
or
instrumentalities
including GOCCs and financial
institutions with original charters,
LABOR LAW COMMITTEE

65
the constitutional commissions and

the judiciary
Employee or Member:
Any person receiving compensation
while in the service of an employer
as defined herein, whether by
election
or
appointment,
irrespective of status appointment,
Dependents:
1. The legitimate spouse dependent
for support upon the member or
pensioner
2. The
legitimate,
legitimated
legally adopted child, including
the illegitimate child who is:
a. unmarried,
b. not gainfully employed,
c. not over the age of
majority,
d. or is over the age of
majority
but
incapacitated
and
incapable of self-support
due to a mental or
physical defect acquired
prior to age of majority
3. Parents dependent upon the
member for support
Primary Beneficiary
The legal dependent spouse until
he/she remarries
Secondary Beneficiary
The dependent parents and subject
to the restrictions on dependent
children, the legitimate descendants
Disability
Any loss or impairment of the normal
functions of the physical and/or
mental faculty of a member which
reduces
or
eliminates
his/her
capacity to continue with his/her
current gainful occupation or engage
in any other gainful occupation.
Total Disability
Complete incapacity to continue
with his present employment or
engage in any gainful occupation due
to the loss or impairment of the
normal functions of the physical
and/or mental faculties of the

member
Permanent Total Disability
Accrues or arises when recovery
from impairment mentioned in
Section 2 (Q) (defining disability) is
medically remote
Temporary Total Disability
Accrues or arises when impaired
physical and/or mental faculties can
be rehabilitated and/or restored to
their normal functions
Permanent Partial Disability
Accrues
or
arises
upon
the
irrevocable loss or impairment of
certain portion/s of the physical
faculties, despite which the member
is able
to pursue a gainful
occupation.
Sources of Fund
Contributions
1. It shall be mandatory for the
member and the employer to
pay the monthly contributions.
2. The employer shall include in its
annual
appropriation
the
necessary amounts for its share
of the contributions indicated
above PLUS any additional
premiums that may be required
on account of the hazards or
risks
of
its
employees
occupation.
3. Failure to do so shall subject the
employers
to
penal
or
administrative sanctions.
Collection and Remittance
1. Collection: The employer shall
report to the GSIS all pertinent
information
regarding
the
employee and shall deduct each
month from the salary or
compensation of each employee
the contribution payable by him.
2. Remittance: The employer shall
remit directly to the GSIS the
employees
and
employers
contributions within the first ten
(10) days of the calendar month
following the month to which the
contributions apply.
LABOR LAW COMMITTEE

66
Benefits
1.
SEPARATION BENEFITS (SEC.

11):
Separation benefits are given to
the:
a. The member resigns or
separates from the service
after he has rendered at
least three (3) years of
service but less than fifteen
(15) years or
b. The member resigns or
separates from office after
he has rendered at least
fifteen (15) years of service
and is below sixty (60) years
of age at the time of
resignation or separation.
Separation
include:
benefits
likewise
UNEMPLOYMENT
OR
INVOLUNTARY
SEPARATION
BENEFITS (Sec. 12): shall be
paid to a permanent employee
who is involuntarily separated
from the service due to the
abolition of his office or position
usually
resulting
from
reorganization PROVIDED that
he has been paying integrated
contributions for at least one (1)
year prior to contributions.
2.
RETIREMENT BENEFITS:
Conditions for entitlement (Sec.
13-A):
Member has rendered at least 15
years of service
He is at least 60 years of age at
the time of retirement
He is not receiving a monthly
pension
benefit
from
permanent total disability
3.
PERMANENT
DISABILITY
BENEFITS
General
Conditions
for
Entitlement (Sec. 15):
The member must have suffered
permanent disability for reasons
NOT DUE to:
1. Grave misconduct
2. Notorious negligence
3. Habitual intoxication, or
willful intention to kill
himself or another.
Specific conditions for
entitlement (Sec. 16):
He shall receive monthly income
benefit for life equal to the basic
monthly pension effective from
the date of the disability.
PROVIDED:
1. He is in the service at the
time of the disability
2. IF
SEPARATED
FROM
SERVICE, he has paid at
least
36
monthly
contributions within the 5
year period immediately
preceding the disability or
has paid a total of at least
180 monthly contributions
prior to the disability
3. IF HE WAS IN SERVICE AND
HAS PAID A TOTAL OF AT
LEAST
180
MONTHLY
CONTRIBUTIONS, in addition
to the monthly income
benefit, he shall receive a
cash payment equivalent to
18 times his basic monthly
pension
4. However, a member cannot
enjoy the monthly income
benefit
for
permanent
disability and the old age
retirement simultaneously.
Unless the member has reached
the
minimum
retirement
age,
disability
benefits
shall
be
SUSPENDED when:
1. He is reemployed
2. He
recovers
from
his
disability as determined by
the GSIS, whose decision
shall be final and binding
3. He fails to present himself
for medical examination
when required by the GSIS
PERMANENT
PARTIAL
DISABILITY (Sec. 17):
He must satisfy specific
conditions 1-3.
LABOR LAW COMMITTEE

67
4. TEMPORARY DISABILITY
BENEFITS (Sec. 18)
The member shall be entitled to
75% of the current daily
compensation for each day or
fraction thereof of temporary
disability benefit not exceeding
120 days in one calendar year
after exhausting all sick leave
credits and collective bargaining
agreement sick leave benefits.
PROVIDED:
1. He is in service at the time
of his disability
2. If
separated,
he
has
rendered at least 3 years of
service and has paid at least
6 monthly contributions in
the
12month
period
immediately preceding the
disability
HOWEVER, a member cannot
enjoy temporary total disability benefit
and sick leave pay simultaneously
IN ADDITION, If the disability
requires more extensive treatment that
lasts beyond 120 days, the payment of
the temporary total disability benefit
may be extended by the GSIS but not to
exceed a total of 240 days
LASTLY, and in no case shall the
benefit be less than 70 pesos a day.
5. SURVIVORSHIP BENEFITS:
For purposes of survivorship
benefits, legitimate children
shall include legally adopted
and legitimated children.
Death of a Member
Upon the death of a member, the
primary beneficiaries shall be entitled
to:
1. SURVIVORSHIP
PROVIDED:
PENSION,
a. Member was in service at

the time of his death
b. If separated from service,
has rendered at least 3
years of service and paid
36 monthly contributions
with the 5- year period
immediately preceding his
death or has paid a total of

at least 180 monthly
contributions.
2. SURVIVORSHIP PENSION PLUS A
CASH PAYMENT EQUIVALENT TO
100%
OF
HIS
AVERAG`E
MONTHLY COMPENSATION FOR
EVRY YEAR OF SERVICE
PROVIDED: The deceased was in
the service at the time of his
death with at least three years of
service
3. SURVIVORSHIP PENSION PLUS A
CASH PAYMENT EQUIVALENT TO
100% OF HIS AVERAGE MONTHLY
COMPENSATION
FOR
EVERY
YEAR OF SERVICE HE PAID
CONTRIBUTIONS BUT NOT LESS
THAN P12, 000
PROVIDED That the deceased has
rendered at least 3 years of
service prior to his death but does
not qualify under 1 and 2.
ORDER
OF PAYMENT OF THE
SURVIVORSHIP PENSION
1.
When the dependent spouse is

the only survivor, he/shall
receive the basic survivorship
pension for life or until he/she
remarries.]
2.
When only dependent children

are the survivors, they shall be
entitled
to
the
basic
survivorship pension for as long
as they are qualified, plus the
dependent childrens pension.
3.
When the survivors are the

dependent spouse and the
dependent
children, the
dependent spouse shall receive
the basic survivorship pension
for life or until he/she
remarries, and the dependent
children shall receive
the
dependents pension.
LABOR LAW COMMITTEE

68
IN THE ABSENCE OF PRIMARY

BENEFICIARIES, THE SECONDARY
BENEFICIARIES SHALL BE ENTITLED
TO:
1. Cash payment equivalent to
100% of his average monthly
compensation for each year of
service he paid contributions,
but not less than P12,000
PROVIDED that the member is in
service at the time of his death
and has at least 3 years of
service.
2. In the absence of secondary
beneficiaries , the benefits
under this paragraph shall be
paid to the legal heirs
6. FUNERAL BENEFITS:
It shall not be less than twelve
thousand pesos (P12,000.00)
PROVIDED that
it shall be
increased to at least eighteen
thousand pesos (P18,000.00)
after five years and shall be paid
upon death.
7. LIFE INSURANCE BENEFITS
All employees except members
of the AFP and the PNP shall be
compulsorily covered with life
insurance.
Adjudication of Claims and Disputes
PRESCRIPTION OF CLAIMS
Claims for benefits under the Act
except for life and retirement shall
prescribe AFTER 4 YEARS FROM THE
DATE OF THE CONTINGENCY.
JURISDICTION
GSIS shall have the exclusive and
original jurisdiction to settle any dispute
arising under the Act and any other laws
administered by the GSIS.
Appealable under Rule 43 and 45
Of the 1997 Rules of Civil Procedure. The
appeal shall not stay the execution of
the order or award unless ordered by the
Boards, CA, or SC and the appeal shall be
without prejudice to the special civil
action of certiorari when proper.
LABOR LAW COMMITTEE

69
LABOR LAW COMMITTEE

CHAIRPERSON: Francis Benedict Rotutar ASSISTANT CHAIRPERSON: Juanito Lim, Jr. SUBJECT HEADS: Aimee Roselle Sabilala(Labor Standards), Elsa
Villaflor(Labor Relations), Maria Fe Taal (Special Laws) EDP: Flora Sherry Basquiez
70
LABOR LAW COMMITTEE

71
LABOR LAW COMMITTEE

72
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73
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75
LABOR LAW COMMITTEE


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San Beda College of Law

1. defect which is congenital or

ART. 211. DECLARATION OF

it defines the status, rights, and

POLICY is intended to install industrial

LABOR LAW COMMITTEE

San Beda College of Law

premises of the employers business is a

promote gainful employment

LABOR LAW COMMITTEE

San Beda College of Law

LABOR ORGANIZATION any union or

terms or conditions of employment

REGARDLESS of whether the disputants

The test of whether a labor

holiday pay, overtime pay or other

2. Labor Relations Disputes

efforts; reprisal or discrimination

NLRC an administrative body with

LABOR LAW COMMITTEE

San Beda College of Law

the DOLE for program

POWERS of the NLRC as amended by

Under R.A. 7700: to allow cases

QUALIFICATIONS OF THE CHAIRMAN AND

The appointment of the Chairman

The NLRC is composed of five (5)

TERM OF OFFICE OF THE CHAIRMAN,

Each division composed of three

They shall hold office during good

LABOR LAW COMMITTEE

San Beda College of Law

EXCLUSIVE APPELLATE JURISDICTION

courts and are well-nigh conclusive if

LABOR LAW COMMITTEE

San Beda College of Law

DAMAGES arising from employeremployee relations;

The labor arbiter and the NLRC have

They also have no jurisdiction over

Although the provision speaks of

COMPULSORY ARBITRATION: The

POWERS OF THE NLRC:

LABOR LAW COMMITTEE

San Beda College of Law

e. Power to issue injunctions and

upon the defendants by the

LABOR LAW COMMITTEE

San Beda College of Law

a reasonable attorneys fee, and

protection to labor. (Principe vs.

THE FOLLOWING CAN ISSUE

after having EXPLAINED TO THEM

1. President (ART. 263, g)

RES JUDICATA applies only to

PURPOSE: for the employees

LABOR LAW COMMITTEE

San Beda College of Law

Attorneys fees for CBA

b. This article prohibits the

Neither the lawyer nor the

ARTICLE 211 VS ARTICLE 222

A. decisions of the regional director:

LABOR LAW COMMITTEE

San Beda College of Law