COVERAGE

LABOR LAW AND SOCIAL LEGISLATION

2016 BAR EXAMINATIONS
I. Fundamental Principles and Policies
A. Constitutional provisions
1. Article II, Secs. 11, 13, 14, 18, 20.
Sec. 9 Just and Dynamic Social Order
Our laws on labor, foremost of which is the Labor Code, are pieces of social legislation. They have been
adopted pursuant to the constitutional recognition of labor as a primary social economic force and to the
constitutional mandates for the state to protect the rights of workers and promote their welfare and for
Congress to give highest priority to the enactment of measures that protect and enhance the right of all the
people to human dignity, and state to assure the right of workers to security of tenure (Article XIII, Sec. 3
of the New Constitution, Section 9, Article II of the 1973 Constitution). Rivera vs. Genesis Transport
Service, Inc., 764 SCRA 653, August 03, 2015
Section 10-Social Justice
In exceptional cases, the Supreme Court has granted separation pay to a legally dismissed employee as an
act of "social justice" or on "equitable grounds" In both instances, it is required that thedismissal (1) was not
for serious misconduct; and (2) did not reflect on the moral character of the employee. Manila Water
Company vs. Del Rosario, 715 SCRA 67 (2013)
Financial assistance, or whatever name it is called, as a measure of social justice is allowed only in instances
where the employee is validly dismissed for causes other than serious misconduct or those reflecting on his
moral character. Daabay vs. Coca-Cola Bottlers, Inc., 704 SCRA 350 (2014)
Constitution is committed to the policy of social justice and the protection of the working class, it does not
necessary follow that every labor dispute will be automatically decided in favor of labor .Although the
Constitution is committed to the policy of social justice and the protection of the working class, it does not
necessary follow that every labor dispute will be automatically decided in favor of labor . The management
also has its own rights. Out of concern for the less privileged in Montero vs. Times Transportation Co., Inc.,
753 SCRA 250, March 16, 2015
2. Article III, Secs. 1, , 7, 8, 10, 16,
Section 4- Grievances
Grievance Machinery
Article 217 (c) of the Labor Code provides that the Labor Arbiter (LA) shall refer to the grievance
machinery and voluntary arbitration as provided in the Collective Bargaining Agreement (CBA) those cases
that involve the interpretation of said agreements. University of Santo Tomas Faculty Union vs. University of
Santo Tomas, 731 SCRA 456 (2014)
Article 272 of the Labor Code provides that all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement (CBA), including violations of said agreement, are
under the original and exclusive jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators.
What was referred to the grievance machinery was the unfair labor practice case filed by the petitioners
before they were terminated, which contains issues that are different and distinct from their cause of action
for illegal dismissal. Baron vs. EPE Transport, Inc., 765 SCRA 345, August 05, 2015

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Section 8 - Unions
The right to form a union or association or to self-organization comprehends two notions, to wit: (a) the
liberty or freedom, that is, the absence of restraint which guarantees that the employee may act for himself
without being prevented by law; and (b) the power by virtue of which an employee may as he pleases, join
or refrain from joining an association.
In view of the revered right of every worker to self-organization, the law expressly allows and seen
encourages the formation of labor organizations. A labor organization is defined as any union or association
or employees which exists in whole or in part for the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment. A labor organization has two broad rights: (1) to
bargain collectively and (2) to deal with the employer concerning terms and conditions of employment. To
bargain collectively is a right given to a union once it registers itself with the DOLE. Dealing with the
employer, on the other hand, is a generic description of interaction between employer, on the other hand, is a
generic description of interaction between employer and employees concerning grievances, wages, work
hours, and other terms and conditions of employment, even if the employees; group is not registered with
the DOLE. Samahan ng Manggagawa sa Hanjin Shipyard vs. Bureau of Labor Relations, 772 SCRA 613,
October 14, 2015
Section 18 (2)-Involuntary Servitude
Clearly, no compulsion, force or threat is made upon reproductive healthcare service providers to render pro
bono service against their will. While the rendering of such service was made a prerequisite to the
accreditation with PhilHealth, the Supreme Court does not consider the same to be an unreasonable burden,
but rather, a necessary incentive imposed by Congress in the furtherance of a perceived legitimate state
interest. Imbong vs. Ochoa, Jr. 721 SCRA 146 (2014)
3. Article XIII, Secs. , 2, 3, 13, 14.
Section 1- Judicial power of the Supreme Court
The Supreme Court has the authority to sift through the factual findings of both the Court of Appeals and the
National Labor Relations Commission in the event of their conflict. Pepsi-Cola Products Philippines, Inc.
vs. Molon, 691 SCRA 113. (2013)
The Supreme Court does not re-examine the factual findings of the National Labor Relations Commission
nor does it substitute its own judgment for theirs as findings of fact of labor tribunals are generally
conclusive on the Supreme Court. Philman Marine Agency, Inc. (now DOHLE-Philman Manning Agency,
Inc.) vs Cabanban,702 SCRA 467. (2013)

They are means for effecting social justice, i.e., the humanization of laws and the equalization of
social and economic forces by the State so that justice in the rational and objectively secular
conception may at least be approximated. Constitutional Law ; Article XIII , Section 3 of the 1987
Constitution guarantees the right of workers to security of tenure.Article XIII , Section 3 of the
1987 Constitution guarantees the right of workers to security of tenure. Ones employment,
profession, trade or calling is a property right, of which a worker may be deprived only upon
compliance with due process requirements: It is the policy of the state to assure the right of workers
to security of tenure (Article XIII , Sec. 3 of the New Constitution, Section 9, Article II of the
1973 Constitution). The guarantee is an act of social justice. When a person has no property, his job
may possibly be his only possession or means of livelihood. Therefore, he should be protected
against any arbitrary deprivation of his job. Article 280 of the Labor Code has construed security of
tenure as meaning that the employer shall not terminate the services of an employee except for a

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just cause or when authorized by the code. Rivera vs. Genesis Transport
Service, Inc., 764 SCRA

653, August 03, 2015

Section 2- Social Justice
Although the Constitution is committed to the policy of social justice and the protection of the
working class, it does not necessary follow that every labor dispute will be automatically decided in
favor of labor .Although the Constitution is committed to the policy of social justice and the
protection of the working class, it does not necessary follow that every labor dispute will be
automatically decided in favor of labor . The management also has its own rights. Montero vs.
Times Transportation Co., Inc., 753 SCRA 250, March 16, 2015
Section 3
The Labor Code recognizes serious misconduct, willful breach of trust or loss of confidence, and
other analogous causes as just causes for termination of employment. Same be present: (a) it must
be serious; (b) it must relate to the performance of the employees duties; and (c) it must show that
the employee has become unfit to continue working for the employer. Thus, it is not enough for an
employee to be found to have engaged in improper or wrongful conduct. To justify termination of
employment, misconduct must be so severe as to make it evident that no other penalty but the
termination of the employees livelihood is viable. Rivera vs. Genesis Transport Service, Inc., 764
SCRA 653, August 03, 2015
Section 13 Special agency for disabled persons
The Supreme Court (SC) has held that a person who claims entitlement to the benefits provided
by law must establish his right thereto by substantial evidence or such relevant evidence as a
reasonable mind might accept as adequate to support a conclusion.This Court has held that
a person who claims entitlement to the benefits provided by law must establish his right thereto by
substantial evidence or such relevant evidence as a reasonable mind might accept as adequate to
support a conclusion. This Court cannot grant a claim for disability benefits without such
substantial evidence because to do so would be offensive to due process. Hence, the burden is on
the seafarer to prove that he suffered from a work-related injury or illness during the term of his
contract. Philippine Transmarine Carriers, Inc. vs. Aligway, 770 SCRA 609, September 16, 2015
B. Civil Code

Article 19
If the Social Security System (SSS) cannot guarantee the security of those who work for it, it is
doubtful that it can even discharge its directive to promote the social security of its members in line
with the fundamental mandate to promote social justice and to insure the well-being and economic
security of the Filipino people As a vital government entity charged with ensuring social security, it
should lead in setting the example by treating everyone with justice and fairness. If it cannot
guarantee the security of those who work for it, it is doubtful that it can even discharge its directive
to promote the social security of its members in line with the fundamental mandate to promote
social justice and to insure the well-being and economic security of the Filipino people. In this
jurisdiction, the long honored legal truism of equal pay for equal work has been impregnably

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institutionalized; persons who work with substantially equal or not
the disputants stand in the

proximate relations of employer and employee. Social Security System vs. Ubaa, 768 SCRA 34,
August 24, 2015
2. Article 1700
Article 1700- Labor Contracts
Should there be ambiguity in the provisions of the contract, the rule is that all doubts, uncertainties,
ambiguities and insufficiencies should be resolved in favor of the labor. Manalo vs. TNS Philippines, Inc.,
743 SCRA 201 (2013)
The Supreme Court has ruled that unless expressly assumed, labor contracts such as employment contracts
and collective bargaining agreements are not enforceable against a trasferee of an enterprise, labor contracts
being in personam, thus binding only between the parties. Maynilad Water Supervisors Association vs.
Maynilad Water Services, Inc., 711 SCRA 110. (2014)
3. Article 1702
C. Labor Code
Books , II, III, V, and VII
Book I- Pre-employment
The Pre-Employment Medical Examination (PEME) cannot be a conclusive proof that the seafarer was free
from any ailment prior to his deployment. Talosig vs United Philippine Lines, Inc., 731 SCRA 180
Book VI-Post-employment
As a general rule, a medically repatriated seafarer is required to submit himself to a post-employment
medical examination by the company's designated physicians within three (3) working days upon his return.
Status Maritime Corporation vs. Delalamon, 731 SCRA 390.
The purpose of the rule is to allow the employer's doctors a reasonable opportunity to assess the seafarer's
medical condition in order to determine whether his illness is work-related or not. Id.
The law , in protecting the rights of the employees, authorizes neither oppression nor self-destruction of the
employer there may be case where the circumstances warrant favoring labor over the interests of
management but never should the scale be so tilted as to result in an injustice to the employer.The law , in
protecting the rights of the employees, authorizes neither oppression nor self-destruction of the employer
there may be cases where the 538 circumstances warrant favoring labor over the interests of management
but never should the scale be so tilted as to result in an injustice to the employer. One Shipping Corp. vs.
Pea, 746 SCRA 536, January 21, 2015

[EXCLUDE: Book IV]

II. Recruitment and Placement
A. Recruitment of local and migrant workers
1. Illegal recruitment (Sec. 5, R.A. No. 10022)
Illegal recruitment is committed by persons who, without authority from the government, give the
impression that they have the power to send workers abroad for employment purposes. People vs. Rea, 698
SCRA 191 (2013)

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There
is Illegal recruitment when one who does not possess the necessary
authority or license gives the
impression of having the ability to send a worker abroad. Where the offense is committed against which a
higher penalty under article 39 (a) the labor code. People vs. Fernandez, 725 SCRA 152. (2014)
a) License vs. authority
It shall likewise include the following acts, whether committed by any person, whether a non-licensee, nonholder, licensee or holder of authority:
To give any false notice, testimony, information or document or commit any act of misrepresentation for the
purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired
workers with the POEA, which include the act of reprocessing workers through a job order that pertains to
nonexistent work, work different from the actual overseas work, or work with a different employer whether
registered or not with the POEA; People vs. Arnaiz, 770 SCRA 319, September 09, 2015
b) Essential elements of illegal recruitment
Essential Elements of Illegal recruitment
It is necessary that the prosecution prove the concurrence of the following elements: (1) the offender
undertakes any of the activities within the meaning Recruitment and Placement under article 13 (b) of the
labor code, or any the prohibited practices enumerated under article 34 of the Labor code, (Sec 6 of RA No.
8042) and (2) the offender engage in recruitment and placement of workers. In the case of Illegal
recruitment in large scale, a third element is added: that the offender commits any acts of recruitment and
placement against three or more persons, individually or as a group. People vs Salvatiera, 725 SCRA 200
(2014)
c) Simple illegal recruitment
d) Illegal recruitment in large scale
The crime of illegal recruitment in large scale is committed upon the concurrence of these (3) elements,
namely: (1) the offenders undertake any activity within the meaning of recruitment and placement defined in
Article 13 (b) or any prohibited practices enumerated in Article 34 of the Labor Code; (2) the offenders have
no valid license or authority required by law to enable them to lawfully engage in the recruitment and
placement of workers; and (3) the offenders commit the acts against three or more persons, individually or
as a group. People vs. Rea, 698 SCRA 191 (2013)
For Illegal recruitment in large scale to prosper, the prosecution has to prove three essential elements,
namely: (1) the accused undertook a recruitment activity under Article 13 (b) or any prohibited practice
under article 34 of the labor code; (2) the accused did not have the license or the authority to lawfully
engage in the recruitment and placement of workers; and (3) the accused committed such illegal activity
against three or more persons individually or a group. People vs. Fernandez, 725 SCRA 152. (2014)
To constitute illegal recruitment in large scale, three elements must concur: (a) the offender has no valid
license or authority required by law to enable him to lawfully engage in recruitment and placement of
workers; (b) the offender undertakes any of the activities within the meaning of recruitment and placement
under Article 13(b) of the Labor Code, 320 or any of the prohibited practices under Article 34 of the said
Code (now Section 6 of RA 8042); and (c) the offender committed the same against three or more persons,
individually or as a group. People vs. Arnaiz, 770 SCRA 319, September 09, 2015

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e) Illegal recruitment as economic sabotage

Under Section 7(b) of Republic Act No. 8042, the penalty of life imprisonment and a fine of not less than
P500,000.00 nor more than P1,000,000.00 shall be imposed if illegal recruitment constitutes economic
sabotage. People vs. Rea, 698 SCRA 191 (2013)
f) Illegal recruitment vs. estafa

We point out that conviction under the Labor Code for illegal recruitment does not preclude
punishment under the Revised Penal Code for the crime of estafa.4 We are convinced that the
prosecution proved beyond reasonable doubt that appellant violated Article 315(2)(a) of the
Revised Penal Code, as amended, which provides that estafa is committed by any person who
defrauds another by using a fictitious name; or by falsely pretending to possess power, influence,
qualifications, property, credit, agency, business; by imaginary transactions or similar forms of
deceit executed prior to or simultaneous with the fraud. PEOPLE OF THE PHILIPPINES
vs. JERIC FERNANDEZ y JAURIGUE, G.R. No. 199211, June 4, 2014.
g) Liabilities
(i) Local recruitment agency
(ii) Foreign employer
(a) Theory of imputed knowledge
Solidary liability
A solidary obligation is one in which each of the debtors is liable for the entire obligation, and each of the
creditors is entitled to demand the satisfaction of the whole obligation from any or all of the debtors. Bognot
vs. RRI Lending Corporation. 736 SCRA 357. (2014)
h) Pre-termination of contract of migrant worker
2. Direct hiring
B. Regulation and enforcement
Suspension or cancellation of license or authority
In suspension or disbarment proceedings, lawyers enjoy the presumption of innocence, and the burden of
proof rests upon the complainant to clearly prove the allegations in the complaint by preponderant evidence.
Jimenez vs. Francisco, 744 SCRA 215. (2014)

Pursuant to national development objectives and in order to harness and maximize the use of
private sector resources and initiative in the development and implementation of a comprehensive
employment program, the private employment sector shall participate in the recruitment and
placement of workers locally and overseas under such guidelines, rules and regulations as may be
issued by the Secretary of Labor. This is echoed in Art. 35 of the Labor Code. Republic vs.
Humanlink Manpower Consultants, Inc. (formerly MHY New Recruitment International, Inc.), 757
SCRA 257, April 22, 2015
Regulatory and visitorial powers of the DOLE secretary

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4. Prohibited activities

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III. Labor Standards

Hours of work
1. Coverage/Exclusions (Art. 82, Labor Code)
2. Normal hours of work
a) Compressed work week
3. Meal break
4. Waiting time
5. Overtime work, overtime pay
We affirm the awards except those for the guaranteed overtime pay and legal holiday pay. Under Section
1020 of Republic Act No. 8042, the unjustly terminated employee is entitled to the full reimbursement of his
placement fee with interest at 12% per annum, plus his salaries for the unexpired portion of his employment
contract. We further allow the payment of vacation leave pay and sick leave pay because the employment
contract21 stipulated 12 days vacation leave with pay and seven days sick leave with pay that could be taken
after one year. Centro Project Management Services Corporation vs. Naluis, 758 SCRA 627, G.R. No.
160123. June 17, 2015
6. Night work (R.A. No. 10151), Night shift differential
7. Part-time work
8. Contract of Piece of Work.
Under article 1715 of the civil code, if the work of a contractor has defects which destroy or lessen its value
or fitness for its ordinary or stipulated use, he may be required to remove the defect or execute another work.
If he fails to so, he shall be liable for the expenses by the employer for the correction of the work. Mackay
vs. Caswell 740 SCRA, 419. (2014)
Wages
Following the wording of Section 10, R.A. No. 8042 and Supreme Courts ruling in Marsaman Manning
Agency, Inc. v. National Labor Relations Commission, 371 Phil. 827 (1999), when the illegally dismissed
employees employment contract has a term of less than one year, he/she shall be entitled to recovery of
salaries representing the unexpired portion of his/her employment contract. Tangga-an vs. Philippine
Transmarine Carriers, Inc., 693 SCRA 340. (2013)
The term wage is broadly defined in Article 97 of the labor code as remuneration or earnings, capable of
being expressed in terms of money whether fixed or ascertained on a time, task, piece or commission basis.
Hacienda Leddy vs Villegas, 735 SCRA 663 (2014)
The established rule in labor law is that the withholding of wages need not be coupled with malice or bad
faith to warrant the grant of attorneys fees under Article 111 of the Labor Code. Montierro vs. Rickmers
Marine Agency Phils., Inc., 746 SCRA 287, January 14, 2015

1.
2.
3.
a)
b)
c)
d)
4.

Wage vs. salary

Minimum wage defined, Minimum wage setting
Minimum wage of workers paid by results
Workers paid by results
Apprentices
Learners
Persons with disability
Commissions

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5. Deductions from wages

Labor Law and Social

Legislation

It is clear in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person,
shall make any deduction from the wages of his employees, except in cases where the employer s authorized
by law regulations issued by the Secretary of Labor and Employment among others. Philippine Long
Distance Telephone Company vs. Estranero, 738 SCRA 437. (2014)

Deduction from the wages of his employees, except: 1. In cases where the worker is insured with
his consent by the employer, and the deduction is to recompense the employer for the amount paid
by him as premium on the insurance; 2. For union dues, in cases where the right of the worker or
his union to check off has been recognized by the employer or authorized in writing by the
individual worker concerned; and 3. In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor and Employment. Same; Same; The return of the
propertys possession became an obligation or liability on the part of the employees when the
employer-employee relationship ceased. Milan vs. National Labor Relations Commission, 750
SCRA 1, February 04, 2015
6. Non-diminution of benefits
The Labor Code also prohibits the elimination or diminutionof benefits . Thus: Art. 100. Prohibition against
elimination or diminution of benefits .Nothing in this Book shall be construed to eliminate or in any way
diminish supplements, or other employee benefits being enjoyed at the time ofpromulgation of this Code.
However, our law supports the employers institution of clearance procedures before the release of wages.
As an exception to the general rule that wages may not be withheld and benefits may not be diminished,
the Labor Code provides: Art. 113. Milan vs. National Labor Relations Commission, 750 SCRA 1, February
04, 2015
7. Facilities vs. supplements
Under the purpose test, if a benefit or privilege granted to the employee is clearly for the employers
convenience, it will not be considered as a facility but a supplement. Our Haus Realty Development
Corporation vs. Parian, 732 SCRA 351. (2014)
8. Wage Distortion/Rectification [NOTE: no computation; principle only]
9. Divisor to determine daily rate [NOTE: no computation; principle only]
C. Rest Periods
1. Weekly rest day
2. Emergency rest day work
Holiday pay/Premium pay
In case of termination of overseas employment without just, valid or authorized cause as defined by law or
contract, the worker shall be entitled to the full reimbursement of his placement fee with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three
(3) months for every year of the unexpired term, whichever is less. Centro Project Management Services
Corporation vs. Naluis, 758 SCRA 627, G.R. No. 160123. June 17, 2015
Premium Pay
The burden of proving the entitlement to overtime pay and premium pay for holidays and rest days rests on
the employee because these are not incurred in the normal course of business. Loon vs. Power Masterm,
Inc., 712 SCRA 440. (2013)

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Holiday
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An employee must receive his daily wage even if he does now work on a regular holiday. Lim vs HMR
Philippines, Inc., 731 SCRA 576 (2014)
1. Coverage, exclusions
2. Teachers, piece workers, takay, seasonal workers, seafarers
Leaves
By law, all employees in the civil service are entitled to leave of absence for a certain number days with or
without pay. Light Rail Transit Authority vs. Salvana 726 SCRA 141. (2014)
Service Incentive Leave
Under the implementing Rules and Regulations, exemption from coverage of holiday and Service Incentive
leave pay refer to field personnel and other employees whose time and performance is unsupervised by the
employer including those who are engaged on task or contract basis. David vs. Macasio, 729 SCRA 67.
(2014)
2.
3.
4.
5.
6.

Maternity Leave
Paternity Leave
Parental Leave (R.A. No. 8972)
Leave for Victims of Violence against Women and Children (R.A. No. 9262)
Special leave benefit for women

Service Charge
Article 96 of the Labor Code provide for the minimum percentage distribution between the employer and the
employer and the employees of the collected service charges, and its integration in the covered employees
wages in the event the employer terminates its policy of providing for its collection. National Union of
Workers in Hotel Restaurant and Allied Industries (NUWHRAIN-APL-IUF), Philippine Plaza Chapter vs
Philippine Plaza Holdings, Inc., 730 SCRA 465.(2014)
Thirteenth Month Pay
Pursuant to Memorandum Order No. 28, as implemented by the Revised Guidelines on the Implementation
of the 13th Month Pay Law dated November 16, 1987, managerial employees are exempt from receiving
such benefit without prejudice to the granting of other bonuses, in lieu of the 13 th month pay, to managerial
employees upon the employers discretion. Torres vs. Rural Bank of San Juan, Inc., 693 SCRA 357. (2013)
As with holiday and service incentive leave pay, 13 th month pay benefits generally cover all employees an
employee must be one of those expressly enumerated to be exempted. Section 3 of the Rules and
Regulations Implementing Presidential Decree (P.D) No. 851 enumerates the exemptions from the coverage
of 13th month pay benefits. David vs Macasio, 729 SCRA 67. (2014)
Separation Pay
True, under the Labor Code, separation pay may be given not only when there is illegal dismissal. In fact, it
is also given to employees who are terminated for authorized causes, such as redundancy, retrenchment, or
installation of labor-saving devices under Article 283 or the Labor Code. 7K Corporation vs. Albarico, 699
SCRA 700. (2013)
Separation pay equivalent to one month salary for every year of service should be awarded as an alternative
in case reinstatement is not possible. South East International Rattan, Inc vs. Coming 718 SCRA 658. (2014)

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0 by Articles 283 Legislation
Separation
pay is given to employees in instances covered
and 284 of the Labor Code of the
Philippines. An employees entitlement to separation pay depends on the reason or ground for the
termination of his or her services. An employee may be terminated for just cause (i.e., gross and habitual
neglect of duty, fraud, or commission of a crime), and other similar causes as enumerated under Article 282
of the Labor Code and, generally, may not be entitled to separation pay.5 On the other hand, where the
termination is for authorized causes, separation pay is due.
For the implementation of a redundancy program to be valid, the employer must comply with these
requisites: (1) written notice served on both the employee and the Department of Labor and Employment at
least one month prior to the intended date of retrenchment; (2) payment of separation pay equivalent to at
least one-month pay or at least one-month pay for every year of service, whichever is higher; (3) good faith
in abolishing the redundant positions; and (4) fair and reasonable criteria in ascertaining what positions are
to be declared redundant and accordingly abolished Ocean East Agency Corporation vs. Lopez, 772 SCRA
414, G.R. No. 194410 October 14, 2015

Retirement Pay
The Supreme Court held in Aquino v. National Labor Relations Commission, 206 SCRA 118 (1992), that in
the absence of specific prohibition in the retirement plan or the collective bargaining agreement, retirement
benefits and separation pay are not mutually exclusive of each other and the employees whose services were
terminated without cause are entitled to both separation pay and retirement gratuity. Zuellig Pharma
Corporation vs. Sibal, 701 SCRA 165. (2013)
Retirement is a form of reward for an employee loyaltys and service to the employer and is intended to
help the employee enjoy the remaining years to his life, and to lessen the burden of worrying about his
financial support upkeep. Castro, Jr vs. Ateneo de Naga University 730 SCRA. (2014)
R.A. No. 7641, otherwise known as The Retirement Pay Law only applies in a situation where 1) there is
no collective bargaining agreement or other applicable employment contract providing for retirement
benefits for an employee; or 2) there is a collective bargaining agreement or the applicable employment
contract providing for retirement benefits for an employee, but it is below the requirements set for by law.
Villena vs. Batangas II Electric Cooperative, Inc., 750 SCRA 55, G.R. No. 205735 February 4, 2015
Eligibility and Amount
In the absence of any applicable agreement, an employee must (1) retire when he is at least (60) years of age
and (2) serve at least (5) years in the company to entitle him/her to a retirement benefit of at least one-half
(1/2) month salary for every year of service, with a fraction of at least (6) months being considered as one
whole year. Padillo vs. Rural Bank Nabunturan, Inc., 689 SCRA 53. (2013)
c. Retirement benefits of workers paid by results
d. Retirement benefits of part-time workers
e. Taxability
J. Women Workers
a. Provisions against discrimination
b. Stipulation against marriage
c. Prohibited acts
d. Anti-Sexual Harassment Act (R.A. No. 7877)
K. Employment of Minors (Labor Code and R.A. No. 7678, R.A. No. 9231)
L. Househelpers (Labor Code as amended by R.A. No. 7655, An Act Increasing the
Minimum Wage of Househelpers; see also Household Service under the Civil Code)
M. Employment of Homeworkers
N. Apprentices and Learners

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O. Person with Disability

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In a catena of cases, the Supreme Court has consistently ruled that disability should not be understood more
on its medical significance but on the loss of earning capacity. Magsaysay Maritime Corporation vs Chin Jr.,
721 SCRA 46.
a.
b.
c.
d.

Definition
Rights of persons with disability
Prohibition on discrimination against persons with disability
Incentives for employers

It has been the Supreme Courts consistent ruling that in disability compensation, it is not the injury which
compensated, but rather it is the incapacity to work resulting in the impairment of ones earning capacity.
Fil-Pride Shipping Company, Inc. vs. Balasta 717 SCRA 624 (2014)
IV. Termination of Employment
Any union officer who knowingly participates is an illegal strike and any worker or union officer who
knowingly participates in the commission of illegal acts during a strike may be declared to have lost his
employment status. Visayas Community Medical Center (VCMC) vs. Yballe, 714 SCRA 17 (2014)
Employer-employee relationship
The established criteria for the determination pages of an employer-employee relationship, are: (1) the
selection and engagement of the employee; (2) the payment of wages; (3) the powers of dismissal; and (4)
the power to control the employees conduct. McBurnie vs. Ganzon, 707 SCRA 646 (2013)
1. Four-fold test
To determine the existence of said relation, case law has consistently applied the four -fold test , to wit:
(a) the selection and engagement of the employee;
(b) the payment of wages;
(c) the power of dismissal; and
(d) the employers power to control the employee on the means and methods by which the work is
accomplished. Of these criteria, the so-called control test is generally regarded as the most crucial and
determinative indicator of the presence or absence of an employer-employee relationship. Begino vs. ABSCBN Corporation (formerly ABS-CBN Broadcasting Corporation), 756 SCRA 236, April 20, 2015
2. Kinds of employment
a. Probationary

Indeed, the pernicious practice of engaging employees for a fixed period short of the sixmonth probationary period of employment, and again, on a day-to-day basis thereafter, mocks
the law. Basan vs. Coca-Cola Bottlers Philippines, 749 SCRA 541, February 04, 2015
b. Regular

If the employee has been performing the job for at least one (1) year, even if the performance is not
continuous or merely intermittent, the law deems the repeated or continuing performance as
sufficient evidence of the necessity, if not indispensability of that 238 activity in the business.

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Begino vs. ABS-CBN Corporation (formerly ABS-CBN BroadcastingLegislation
Corporation), 756 SCRA 236,

April 20, 2015

c. Project employment

Article 280 of the Labor Code and jurisprudence identified three types of employees, namely: (1)
regular employees or those who have been engaged to perform activities which are usually
necessary or desirable in the usual business or trade of the employer; (2) project employees or those
whose employment has been fixed for a specific project or undertaking, the completion or
termination of which has been determined at the time of the engagement of the employee or where
the work or service to be performed is seasonal in nature and the employment is for the duration of
the season; and (3) casual employees or those who are neither regular nor project employees. .Paz
vs. Northern Tobacco Redrying Co., Inc., 751 SCRA 99, February 18, 2015
d. Seasonal

As previously held by this Court, fixed-term employment contracts are not limited, as they are
under the present Labor Code, to those by nature seasonal or for specific projects with
predetermined dates of completion; they also include those to which the parties by free choice have
assigned a specific date of termination. The determining factor of such contracts is not the duty of
the employee but the day certain agreed upon by the parties for the commencement and termination
of the employment of the work except as to the results thereof; The contractor or subcontractor has
substantial capital or investment; and The agreement between the principal and contractor or
subcontractor assures the contractual employees entitlement to all labor and occupational safety and
health standards, free exercise of the right to self-organization, security of tenure, and social and
welfare benefits. Fonterra Brands Phils., Inc. vs. Largado, 753 SCRA 649, March 18, 2015
e. Casual
F. Fixed-term Employment
The Supreme Court ruled in Brent School, Inc. v Zamora, 260 Phil. 747 (1990), that fixed term employment
contract, which specified employment will last only for a definite period, is not per se illegal or against
public policy. GMA Network, Inc. vs. Pabriga, 710 SCRA 690 (2013)
The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of
the parties, an employment shall be deemed to be regular where the employee has been engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the employer, except
where the employment has been fixed for a specific project or undertaking the completion or termination of
which has been determined at the time of the engagement of the employee or where the work or services to
be performed is seasonal in nature and the employment is for the duration of the season. Gadia vs. Sykes
Asia, Inc., 748 SCRA 633, G.R. No. 209499 January 28, 2015
3. Job contracting
a. Articles 106 to 109 of the Labor Code b. Department Order No.
18A

Article 106 of the Labor Code ,labor -only contracting, a prohibited act, is an arrangement
where the contractor, who does not have substantial capital or investment in the form of tools,
equipment, machineries, work premises, among others, supplies workers to an employer

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3
Legislation
and the workers recruited are performing activities which are directly
related to the principal

business of such employer. Petron Corporation vs. Caberte, 757 SCRA 390, June 15, 2015
Under Article 107 of the Labor Code , an indirect employer is any person, partnership, association
or corporation which, not being an employer, contracts with an independent contractor
for the performance of any work, task, job or project. Light Rail Transit Authority vs. Mendoza, 767
SCRA 624, August 19, 2015
Article 109 of the Labor Code on solidary liability, mandates that every employer or indirect
employer shall be held responsible with his contractor or subcontractor for any violation of any
provisions of this Code. For purposes of determining the extent of their civil liability under this
Chapter, they shall be considered as direct employers. Light Rail Transit Authority vs. Mendoza,
767 SCRA 624, August 19, 2015
c. Department Circular No. 01-12
d. Effects of Labor-Only Contracting
The basis of the solidary liability of the principal with those engaged in labor-only contracting is the last
paragraph of Article 106 of the Labor Code, which in part provides: In such cases [labor-only contracting],
the person or intermediary shall be considered merely as an agent of the employer who shall be responsible
to the workers in the same manner and extent as if the latter were directly employed by him. Vigilla vs.
hilippine College of Criminology, Inc., 698 SCRA 247 (2013)
e. Trilateral relationship in job contracting
A. Dismissal from employment
The penalty of dismissal carries with it the accessory penalties of cancellation of eligibility, forfeiture of
retirement benefits [except leave credits pursuant to Rule 140, Section 11 (1) of the Rules of Court] and
disqualification from reemployment in the government service. Olivan vs. Rubio. (2013)
The penalty of dismissal from service includes cancellation of eligibility, forfeiture of leave credits, and
retirement benefits, and disqualification from re-employment in the government service. Selection and
Promotion Board, Office of the Court Administrator vs Taca, 729 SCRA 287 (2014)
1. Just Causes

An employees guilt or innocence in a criminal case is not determinative of the existence of a just
or authorized cause for his or her dismissal. It is well-settled that conviction in a criminal case is
not necessary to find just cause for termination of employment, as in this case. Criminal and labor
cases involving an employee arising from the same infraction are separate and distinct proceedings
which should not arrest any judgment from one to the other. St. Luke's Medical Center, Inc. vs.
Sanchez, 753 SCRA 218, March 11, 2015
2. Authorized Causes
Due Process
The most basic tenet of due process is the right to be heard. Denial of due process means the total lack of
opportunity to be heard or to have ones day in court. Ylaya vs. Gacott, 689 SCRA 452; Philworth Asia, Inc.
vs. Philippine Commercial International Bank, 697 SCRA 206. (2013)

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A project employee is assigned to a project which begins and ends at determined or determinable times.
Unlike regular employees who may only be dismissed for just and/or authorized causes under the Labor
Code, the services of employees who are hired as project[-based] employees may be lawfully terminated
at the completion of the project. Gadia vs. Sykes Asia, Inc., 748 SCRA 633, G.R. No. 209499 January 28,
2015
a) Twin-notice requirement
b) Hearing; meaning of opportunity to be heard
Reliefs for Illegal Dismissal
The normal consequences of respondents illegal dismissal, then are reinstatement without loss of seniority
rights, and payment of backwages computed from the time was withheld up to the date of actual
reinstatement. Where reinstatement is no longer viable as an option, separation pay equivalent to one (1
month) salary for every service should be awarded as an alternative. Dreamland Hotel Resort vs Johnson
719, SCRA 29. (2014)
Reinstatement
Reinstatement, as a labor law concept, means the admission of an employee back to work prevailing prior to
his dismissal; restoration to a state or position from which one had been removed or separated, which
presupposes that here shall be no demotion in rank and/or diminution of salary, benefits and other privileges;
if the position previously occupied position in terms of salary, benefits, and other privileges. Baares vs
Tabaco Womens Transport Service Cooperative (TAWTRASCO), 694 SCRA 312. (2013)
An illegally dismissed employee should be entitled to either reinstatement if viable, or separation pay if
reinstatement is no longer be visible plus back wages in either instance. Hacienda Leddy vs. Villegas, 735
SCRA 663. (2014)

Where reinstatement is no longer viable as an option, separation pay equivalent to one-month

salary for every year of service should be awarded as an alternative. The payment of separation pay
is in addition to payment of backwages. Given the strained relations between the parties, the award
of separation pay, in lieu of reinstatement is in order. Manarpiis vs. Texas Philippines, Inc., 748
SCRA 511, January 28, 2015
Pending appeal (Art. 223, Labor Code)
Separation pay in lieu of reinstatement
Where reinstatement is no longer viable as an option, separation pay equivalent to one (1) month salary for
every year of service should be awarded as an alternative. Baares vs Tabaco Womens Transport Service
Cooperative (TAWTRASCO), 694 SCRA 312. (2013)
Backwages
Backwages, in general, are awarded on the ground of equity as a form of relief that restores the income lost
by the terminated employee by reason of his illegal dismissal. 7K Corporation vs. Albarico, 699 SCRA 700.
(2013)
Backwages represent compensation that should have been earned but were not collected because of the
unjust dismissal. Hacienda Leddy vs. Villegas, 735 SCRA 663. (2014)

2016 Bar Examination

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Labor Law and Social
Coveragewithout a just or authorized cause renders
5 the dismissal invalid,
Legislation
Termination
and entitles the employee to
reinstatement without loss of seniority rights and other privileges and full backwages , inclusive of
allowances, and other benefits or their monetary equivalent computed from the time the compensation was
not paid up to the time of actual reinstatement. Brown Madonna Press, Inc. vs. Casas, 757 SCRA 525, June
15, 2015
Computation
The computation of backwages depends on the final awards adjudged as a consequence of illegal dismissal.
Bani Rural Bank, Inc. vs. De Guzman, 709 SCRA 330. (2013)
The computation of the respondents backwages must be from the time of the illegal dismissal from
employment until the finality of the decision ordering the payment of separation pay. Id.
b. Limited backwages
D. Preventive Suspension
E. Constructive Dismissal
Constructive dismissal exists when an act of clear discrimination, insensibility, or disdain, on the part of the
employer has become so unbearable as to leave an employee with no choice but to forego continued
employment, or when there is cessation of work because continued employment is rendered impossible,
unreasonable, or unlikely, as an offer involving a demotion in rank and a diminution in pay. Tatel vs. JLFP
Investigation Security Agency, Inc., 752 SCRA 55, February 25, 2015
V. Management Prerogative
The Supreme Court has recognized that the employer has the right to regulate, according to its discretion and
best judgment, all aspects of employment, including work assignment, working methods, processes to be
followed, working regulations, transfer of employees, working supervision, lay-off of workers and the
discipline, dismissal and recall of workers. Century Iron Works, Inc. vs. Baas, 699 SCRA 157. (2013)
The Supreme Court has consistently ruled that the power to dismiss n employee is a recognized prerogative
inherent in the employers right to freely manage and regulate business. The workers right to security of
tenure is not absolute right, for the law provides tht he may be dismissed for cause. Sutherland Global
Services (PHILIPPINES), Inc. vs. Labrador, 719 SCRA 634. (2014)
Discipline
In the exercise of its management prerogative, an employer must therefore ensure that policies, rules and
regulations on work-related activities of the employees must always be fair and reasonable and the
corresponding penalties, when prescribed, commensurate to the offense involved and to the degree of the
infraction. Mirant (Philippines) Corporation vs. Caro, 723 SCRA 465. (2014)
The right of an employer to regulate all aspects of employment, aptly called management prerogative,
gives employers the freedom to regulate, according to their discretion and best judgment, all aspects of
employment, including work assignment, working methods, processes to be followed, working regulations,
transfer of employees, work supervision, layoff of workers and the discipline , dismissal and recall of
workers. St. Luke's Medical Center, Inc. vs. Sanchez, 753 SCRA 218, March 11, 2015

Transfer of employees

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When the transfer of an employee is not unreasonable, or inconvenient, or prejudicial to him, and it does not
involve a demotion in rank or a diminution of his salaries, benefits and other privileges, the employee may
not complain that it amounts to a constructive dismissal. Peckson vs. Robinsons Supermarket Corporation,
700 SCRA 668 (2013)
While the law imposes many obligations upon the employer, nonetheless, it also protects the employers
right to expect from its employees not only good performance, adequate work, and diligence, but also good
conduct and loyalty. In fact, the Labor Code does not excuse employees from complying with valid
company conditions they have to endure. ICT Marketing Services, Inc. (now known as Sykes Marketing
Services, Inc.) vs. Sales, 770 SCRA 286, September 09, 2015

Productivity standard
Grant of bonus
The grant of bonus or special incentive, being a management prerogative, is not demandable and enforceable
obligation, except when the bonus or special incentive is made part of the wage, salary or compensation of
the employee, or is promised by the employer and expressly agreed upon by the parties. Mega Magazine
Publications, Inc vs Defensor, 726 (2014)
Change of working hours
Rules on Marriage between employees of competitor-employers
Post-employment ban; non-compete and confidentiality clauses
VI. Social Welfare Legislation (P.D. 626)
Social Legislation
Social legislations contemporaneous with the execution of the Collective Bargaining Agreement have given
a meaning to the term legal dependent. Philippine Journalists, Inc. vs. Journal Employees Union (JEU), 697
SCRA 103. (2013)
A. SSS Law (R.A. No. 8282)
1. Coverage
2. Exclusions from coverage
3. Benefits
Beneficiaries
In general, retirement laws provide security to the elderly who have given their prime years in employment
whether in the private sector or in government. Re: Application for Survivorship Pension Benefits Under
Republic Act No. 9946 of Mrs. Pacita A. Gruba, Surviving Spouse of the Late Manuel K. Gruba, Former
CTA Associate Judge, 709 SCRA 603. (2013)
GSIS Law (R.A. No. 8291)
The funds and assets of Government Service Insurance System (GSIS) may after the resolution of the
appeal and barring any provisional injunction thereto be subjected to execution, attachment, garnishment
or levy since the exemption under Section 39 of RA 8291 does not operate to deny private entities from

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properly
enforcing their contractual claims against7 GSIS. GovernmentLegislation
Service Insurance System vs.
Prudential Guarantee and Assurance, Inc., 710 SCRA 337. (2013)
1.
2.
3.
4.

Coverage
Exclusions from coverage
Benefits
Beneficiaries

C. Limited Portability Law (R.A. No. 7699)

Employee Compensation
Sickness, as defined under Article 167 (1) Chapter I, Title II, Book IV of the Labor Code of the Philippines
refers to any illness definitely accepted as an occupational disease listed by the Employees Compensation
Commission, or any illness caused by employment, subject to proof that the risk of contracting the same is
increased by working conditions. Lorenzo vs. Government Service Insurance System (GSIS), 706 SCRA 602.
(2013)
Employee Compensation- when compensable
In cases of death, Section 1(b), Rule III of the Rules of Implementing P.D. No. 626, as amended, requires
that for the sickness and the resulting disability or death to be compensable, the claimant must show: (1) that
it is the result of an occupational disease listed under Annex A of the Amended Rules on Employees
Compensation with the conditions set therein satisfied; or (2) that the risk of contracting the disease is
increased by the working conditions. Id.
VII. Labor Relations Law
Right to self-organization
The right to self-organization is not limited to unionism. Workers may also form or join an association for
mutual aid and protection and for other legitimate purposes. Samahang ng Manggagawa sa Hanjin Shipyard
vs. Bureau of Labor Relations, G.R. No. 211145 (2015)
1. Who may unionize for purposes of collective bargaining
a) Who cannot form, join or assist labor organizations
Bargaining unit
A bargaining unit has been defined as a group of employees of a given employer, comprised of all or less
than all of the entire body of employees, which the collective interests of all the employees, consistent with
equity to the employer, indicated to be the best suited to serve reciprocal rights and duties of the parties
under the collective bargaining provisions of the law. Holy Child Catholic School vs. Sto. Tomas, 701
SCRA 589. (2013)
Test to determine the constituency of an appropriate bargaining unit
View that the Supreme Court explained for the first time in Democratic Labor Association v. Cebu
Stevedoring Company, Inc., et. al., 103 Phil. 1103 (1958), that several factors determine an appropriate
bargaining unit, namely: (1) will of employees (Global Doctrine); (2) affinity and unity of employees
interest, such as substantial similarity of work and duties, or similarity of compensation and working
conditions; (3) prior collective bargaining history; and (4) employment status, such as temporary, seasonal
and probationary employees. Id.
Voluntary recognition
Requirements

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Certification election
The purpose of certification election is precisely to ascertain the majority of the employees choice of an
appropriate bargaining unit to be or not to be represented by a labor organization and, if in the affirmative
case, by which one. Holy Child Catholic School vs. Sto. Tomas, 701 SCRA 589. (2013)
In an unorganized establishment
In an organized establishment
Run-off election
Requirements
Re-run election
Consent election
Affiliation and disaffiliation of the local union from the mother union
Substitutionary doctrine
Union dues and special assessments
Requirements for validity i) Agency fees
Requisites for assessment
B. Right to collective bargaining
Duty to bargain collectively
A cursory reading of the law demonstrates that a common element between unionism and the formation of
LMCs is the existence of an employer-employee relationship. Where neither party is an employer nor an
employee of the other, no duty to bargain collectively would exist. In the same manner, expressed in Article
255 (now 261) is the requirement that such workers be employed in the establishment before they can
participate in policy and decision making processes. SAMAHAN NG MANGGAGAWA SA HANJIN
SHIPYARD rep. by its President, ALFIE ALIPIO vs. BUREAU OF LABOR RELATIONS, HANJIN
HEAVY INDUSTRIES AND CONSTRUCTION CO., LTD. (HHIC-PIDL.) G.R. No. 211145 (2015)
a) When there is absence of a CBA
b) When there is a CBA
Collective Bargaining Agreement (CBA)
A collective bargaining agreement or (CBA) refers to the negotiated contract between a legitimate labor
organization and the employer concerning wages, hours of work and all other terms and conditions of
employment in bargaining unit. Goya, Inc. vs. Goya, Inc. Employees Union-FFW, 689 SCRA 1; Philippine
Journalists, Inc. vs. Journal Employees Union (JEU), 697 SCRA 103; Zuellig Pharma Corporation vs Sibal,
701 SCRA 165. (2013)
A collective bargaining agreement, as used in Article 252 ( now Article 262) of the labor code, is a contract
executed as he request of either the employer or employees exclusive bargaining representative with respect
to wages, hours of work and all other terms and conditions of employment including proposals for adjusting
any grievances or questions under such agreement. National Union of Workers in Hotel Restaurant and
Allied Industries (NUHWHRAIN-APL-IUF), Philippine plaza chapter vs Philippine plaza holdings,. Inc 730
SCRA 465; Philippine electric corporation (philec) vs Court of appeals, 744 SCRA 361. (2014)
a) Mandatory provisions of CBA
(i)
Grievance procedure
Under Article 260 of the Labor Code, grievances arising from the interpretation or implementation of the
parties Collective Bargaining Agreement should be resolved in accordance with the grievance procedure
embodied therein. Octavio vs. Philippine Long Distance Telephone Company, 692 SCRA 72. (2013)

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9 rest of the union Legislation
As
the NLRC aptly pointed out, instead of him and the
officers bringing their sentiments
and/or grievances against the management to the proper forum, they intentionally, knowingly and
purposefully breached their employer's trust, by issuing derogatory statements and causing their publication,
apparently, to incite public condemnation against the latter." It bears noting that, while petitioners harp on
the refusal of VECO to follow the grievance machinery procedure under the CBA, they conveniently forgot
that they themselves shunned the very procedure to which they now hang by a thread. Visayan Electric
Company Employees Union-Alu-TUCP vs. Visayan Electric Company, Inc. (Veco) G.R. No. 205575 (2015)
(ii)

Voluntary arbitration

A decision or award of a voluntary arbitrator is appealable to the CA via petition for review under Rule 43.
Royal Plant Workers Union vs. Coca-Cola Bottlers Philippines, Inc.-Cebu Plant, 696 SCRA 357. (2013)
Voluntary arbitration really takes precedence over other dispute settlement devices. Such primacy of
voluntary arbitration is mandated by no less than the Philippine Constitution,37 and is ingrained as a policy
objective of our labor relations law.38 The reinstatement order by the Voluntary Arbitrator should have the
same authority, force and effect as that of the reinstatement order by the Labor Arbiter not only to encourage
parties to settle their disputes through this mode, but also, and more importantly, to enforce the constitutional
mandate to protect labor, to provide security of tenure, and to enhance social justice. Rogelio Baronda vs.
Hon. Court of Appeals and Hidego Sugar Milling Co. Inc., G.R. No. 161006 (2015)
(iii)
No strike-no lockout clause
(iv)
Labor management council
b) Duration
(i) For economic provisions
(ii) For non-economic provisions
(iii) Freedom period
Union Security
Union security clauses; closed shop, union shop, maintenance of membership shop, etc.
Union shop
Pepsi need not implement a retrenchment program just to get rid of LEPCEU-ALU members
considering that the union shop clause already gave it ample justification to terminate them. It is
then hardly believable that union affiliations were even considered by Pepsi in the selection of the
employees to be retrenched. CABAOBAS vs. PEPSI-COLA PRODUCTS. PHILIPPINES,
INC. G.R. No. 176908 (2015)
Check-off; union dues, agency fees
Union Dues
The law supports the employers institution of clearance procedures before the release of wages. As an
exception to the general rule that wages may not be withheld and benefits may not be diminished, the Labor
Code provides:
Art. 113. Wage deduction.No employer, in his own behalf or in behalf of any person, shall make any
deduction from the wages of his employees, except:
1. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense
the employer for the amount paid by him as premium on the insurance;
2. For union dues, in cases where the right of the worker or his union to check-off has been recognized by
the employer or authorized in writing by the individual worker concerned; and

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3.Coverage
In cases where the employer is authorized by law0or regulations issued
by the Secretary of Labor and
Employment. Milan vs. National Labor Relations Commission G.R. No. 202961 (2015)
Unfair Labor Practice in collective bargaining
The refusal of VECO to follow the grievance machinery procedure under Section 4, Article XVII of the
CBA in the suspension and termination from employment of the other union officers and members
constituted unfair labor practice. Visayan Elecric Company Employees Union-Alu-Tucp vs. Visayan Elecric
Company. G.R. No. 205575 (2015)
a) Bargaining in bad faith
b) Refusal to bargain
c) Individual bargaining
d) Blue sky bargaining
e) Surface bargaining
Unfair Labor Practice (ULP)
Acts considered as unfair labor practice relate to the workers right to self-organization and to the
observance of a collective bargaining agreement. Bankard, Inc. vs. National Labor Relations CommissionFirst Division, 692 SCRA 459. (2013)
Article 290 of the labor codes provides that unfair labor practices (ULP) prescribe within one year from
actual such ULP: otherwise, they shall be forever barred Article 291 of the same code provides that money
claims arising from employer-employee relations prescribe within three years from the time the cause of
action accrued; otherwise they shall be forever barred University of Santo Tomas Faculty Union vs
University of Santo Tomas 731 SCRA 456. (2014)
Labor-only contracting is considered as a form of ULP when the same is devised by the employer to
"interfere with, restrain or coerce employees in the exercise of their rights to self-organization." Cagayan
Electric Power & Light Company, Inc. vs. Cepalco Employees Labor Union-Associated. G.R. No. 211015
a) Nature of ULP
b) ULP of employers
In the case at bench, petitioners are being accused of violations of paragraphs (a), (c), and (e) of Article 257
(formerly Article 248) of the Labor Code, to wit: Article 257. Unfair labor practices of employers.It shall
be unlawful for an employer to commit any of the following unfair labor practices: (a) To interfere with,
restrain or coerce employees in the exercise of their right to self-organization; (c) 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 self-organization; (e) 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. T & H Shopfitters Corporation/Gin Queen Corporation vs. T & H Corporation/ Gin Queen
Workers union. G.R. No. 191714 (2015)
In Great Pacific Employees Union v. Great Pacific Life Assurance Corporation, the Court observed: There
should be no dispute that all the prohibited acts constituting unfair labor practice in essence relate to the
workers' right to self-organization. Thus, an employer may be held liable under this provision if his conduct
affects in whatever manner the right of an employee to self-organize. Cagayan Electric Power & Light
Company, Inc. vs. Cepalco Employees Labor Union-Associated. G.R. No. 211015
ULP of labor organizations
Right to peaceful concerted activities
1. Forms of concerted activities
2. Who may declare a strike or lockout?

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Requisites for a valid strike
4. Requisites for a valid lockout

2
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Labor Law and Social

Legislation

Strike or Lockout
The termination of employment of 127 officers and members constituted union-busting and unlawful
lockout. As said officers and members were unlawfully dismissed from employment, they are entitled to
reinstatement with full backwages. Malayang Manggagawa ng Stayfast Phils., Inc. vs. National Labor
Relations Commission, 704 SCRA 24. (2013)
In arriving at said determination, the Court found out both parties were at fault or in pari delicto and must
bear the consequences of their own wrongdoing. Thus, it decreed that the striking employees must be
restored to their respective positions prior to the illegal strike and illegal lockout. Automotive Engine
Rebuilders, Inc. (AER) vs. Progresibong Unyon ng mga Manggagawa sa AER. G.R. No. 160138 (2013)
Article 263(g) is both an extraordinary and a preemptive power to address an extraordinary situation - a
strike or lockout in an industry indispensable to the national interest. This grant is not limited to the grounds
cited in the notice of strike or lockout that may have preceded the strike or lockout; nor is it limited to the
incidents of the strike or lockout that in the meanwhile may have taken place. Tabangao Shell Refinery
Employees Association vs. Pilipinas Shell Petroleum Corporation. G.R. No. 170007 (2014)

5. Requisites for lawful picketing

6. Assumption of jurisdiction by the DOLE Secretary or Certification of the labor dispute to the NLRC
for compulsory arbitration
7. Nature of assumption order or certification order
8. Effect of defiance of assumption or certification orders
9. Illegal strike
In an action for declaration of illegal strike, the cause of action is premised on a union or a labor
organizations conduct of a strike without compliance with the statutory requirements. Club Filipino, Inc. vs
Benjamin Bautista. G.R. No. 168406 (2015)
A strike staged without compliance with the requirements of Article 263 1 of the Labor Code is illegal, and
may cause the termination of the employment of the participating union officers and members. However, the
liability for the illegal strike is individual, not collective. To warrant the termination of an officer of the labor
organization on that basis, the employer must show that the officer knowingly participated in the illegal
strike. The Hongkong & Shanghai Banking Corporation Employees Union vs. National Labor Relations
Commission. G.R. No. 156635 (2016)
a) Liability of union officers
b) Liability of ordinary workers
c) Liability of employer
d) Waiver of illegality of strike
Injunctions
Injunction is a judicial writ, process or proceeding whereby a party is ordered to do or refrain from doing a
certain act. City of Lapu-Lapu vs. Philippine Economic Zone Authority, 742 SCRA 524 (2014)
a) Requisites for labor injunctions
b) Innocent bystander rule
VIII. Procedure and Jurisdiction

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A. Labor Arbiter

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Legislation

Settled jurisprudence qualifies that when the dispute involves a charge of illegal dismissal, the action may
fall under the jurisdiction of Labor Arbiters upon whose jurisdiction, as a rule, falls termination disputes and
claims for damages arising from employer-employee relations as provided in Article 217 of the Labor Code.
Cosare vs. Broadcom Asia, Inc., 715 SCRA 534 (2014)
1. Jurisdiction
a) versus Regional Director
2. Reinstatement pending appeal
3. Requirements to perfect appeal to NLRC
A party who seeks to avail of the right must, therefore, comply with the requirements of the rules, failing
which the right to appeal is invariably lost. Insofar as appeals from decisions of the Labor Arbiter are
concerned, Article 223 of the Labor Code of the Philippines provides that, "decisions, awards, or orders of
the Labor Arbiter are final and executory unless appealed to the [NLRC] by any or both parties within ten
(10) calendar days from the receipt of such decisions, awards or orders." In case of a judgment involving a
monetary award, the same provision mandates that, "an appeal by the employer may be perfected only upon
the posting of a cash or surety bond issued by a reputable bonding company. Manila Mining Corporation vs.
Lowito Amor. G.R. No. 182800 (2015)

B. National Labor Relations Commission (NLRC)

National Labor Relations Commission
The decision of the National Labor Relations Commission (NLRC) becomes final and executory after the
lapse of ten calendar days from receipt thereof by the parties. Univac Development, Inc. vs. Soriano, 699
SCRA 88. (2013)
Under the National Internal Revenue Code (NILC), a resident citizen who is engage in the practice of a
profession within the Philippines is obligated to file in duplicate an income tax return on his income from all
sources, regardless of the amount of is gross income; Under Section 51 (B) of the National Internal Revenue
Code (NIRC), the return should be filed with an authorized agent bank, Revenue District Officer,
Collection Agent or duly authorized Treasurer of the city or municipality in which such person has his legal
residence or principal place of business in the Philippines. Mendez vs. People, 76 SCRA 203. (2014)
1. Jurisdiction
2. Effect of NLRC reversal of Labor Arbiters order of reinstatement
3. Remedies
4. Certified cases
C. Bureau of Labor Relations Med-Arbiters
1. Jurisdiction (original and appellate)
D. National Conciliation and Mediation Board
1. Nature of proceedings
2. Conciliation vs. Mediation
3. Preventive mediation
E. DOLE Regional Directors
1. Jurisdiction
F. DOLE Secretary
1. Visitorial and enforcement powers

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Power to suspend/effects of termination
3. Assumption of jurisdiction
4. Appellate jurisdiction
5. Voluntary arbitration powers

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Voluntary Arbitration
Article 217 of the Labor Code provides that the Labor Arbiter (LA) shall refer to the grievance machinery
and voluntary arbitration as provided in the Collective Bargaining Agreement (CBA) those cases that
involve the interpretation of said agreement. University of Santo Tomas Faculty Union vs. University of
Santo Tomas, 731 SCRA 456. (2014)
Grievance Machinery and Voluntary Arbitration
1. Subject matter of grievance
Voluntary arbitrator
The labor code vest the Voluntary Arbitrator original and exclusive jurisdiction to hear and decide all
unresolved grievances arising from the interpretation or implementation of the collective bargaining
agreement (CBA) and those arising from the interpretation or enforcement of company personal policies.
Honda Cars Philippines Inc, vs. Honda Cars Technical Specialist and Supervisors Union 741 SCRA 281.
(2014)
a) Jurisdiction
b) Procedure
c) Remedies
Court of Appeals
In exercising the expanded judicial review over labor cases, the Court of Appeals can grant the petition if it
finds that the National Labor Relations Commission (NLRC) committed grave abuse of discretion by
capriciously, whimsically, or arbitrarily disregarding evidence which is material or decisive of the
controversy which necessarily includes looking into the evidence presented by the parties. Univac
Development, Inc. vs. Soriano, 699 SCRA 88 (2013)
Rule 65, Rules of Court
Rule 65, Rules of Court
The Court of Appeals is clothed with jurisdiction to review the resolution issued by the Secretary of the
Department of Justice (DOJ) through a petition for certiorari under Rule 65 of the Rules of Court albeit
solely on the ground that the Secretary of Justice committed grave abuse of discretion amounting to excess
or lack of jurisdiction. Gaditano vs. San Miguel Corporation, 702 SCRA 191. (2013)
Supreme Court
The Supreme Court is not a trier of facts and this doctrine applies with greater force in labor cases.
Questions of fact are for the labor tribunals to resolve.
Rule 45, Rules of Court

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is settled that the jurisdiction of the Supreme Court4in cases brought before
it from the Court of Appeals
via Rule 45 of the Rules of Court is generally limited to reviewing errors of law. The Court is not the proper
venue to consider a factual issue as it is not a trier of facts. Philippine Plaza Holdings, Inc. vs. Episcope, 692
SCRA 227. (2013)
J. Prescription of actions

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IMPORTANT NOTES:
1. This listing of covered topics is not intended and should not be used by the law schools as a course
outline. This was drawn up for the limited purpose of ensuring that Bar candidates are guided on the
coverage of the 2016 Bar Examinations.
2. All Supreme Court decisions - pertinent to a given Bar subject and its listed topics, and promulgated up
to May 31, 2015 - are examinable materials within the coverage of the 2016 Bar Examinations.