LABOR LAW PRE-WEEK NOTES FOR THE 2014 BAR EXAMS By: Prof.

Joselito Guianan Chan

========================== TOPIC NO. 1 FUNDAMENTAL PRINCIPLES AND POLICIES A.
CONSTITUTIONAL PROVISIONS What are the important constitutional principles related to Labor Law?
The following principles should be taken note of: Under Article II (Declaration of Principles and State
Policies): a. Promotion of full employment, a rising standard of living, and an improved quality of life for
all. b. Promotion of social justice in all phases of national development. c. Full respect for human rights.
d. Vital role of the youth in nation-building. e. Role of women in nation-building, and fundamental
equality before the law of women and men. f. Indispensable role of the private sector, g. Protection-to-
labor clause: Section 18. The State affirms labor as a primary social economic force. It shall protect the
rights of workers and promote their welfare. NOTE: Article II is merely a statement of principles and
state policies. Its provisions are not selfexecuting. They do not embody judicially enforceable
constitutional rights but guidelines for legislation. These broad constitutional principles need legislative
enactments to implement them. Under Article III (Bill of Rights): a. Due process and equal protection
of the law. b. Freedom of speech, of expression, or of the press, or the right of the people peaceably to
assemble and petition the government for redress of grievances. c. Right of the people to information
on matters of public concern. Access to official records, and to documents and papers pertaining to
official acts, transactions, or decisions, as well as to government research data used as basis for policy
development, shall be afforded the citizen, subject to such limitations as may be provided by law. d.
Right of public and private sector employees to form unions, associations, or societies for purposes not
contrary to law shall not be abridged. e. Non-impairment of obligations of contracts. f. Right to speedy
disposition of cases in judicial, quasi-judicial or administrative bodies. g. Prohibitions against involuntary
servitude. Under Article XIII (Social Justice and Human Rights): a. Protection-to-Labor Clause: VERY
IMPORTANT Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all. It shall
guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy
and decision-making processes affecting their rights and benefits as may be provided by law.
ChanRobles Internet Bar Review : ChanRobles Professional Review, Inc. www.chanroblesbar.com :
www.chanroblesbar.com.ph PRE-WEEK NOTES ON LABOR LAW 2014 BAR EXAMS Prof. Joselito Guianan
Chan 2 The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace. The State shall regulate the relations
between workers and employers, recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns to investments, and to expansion and
growth. What kinds of due process may be asserted by the employee against his employer? While
constitutional due process cannot be invoked by the employee when he is undergoing administrative
investigation at the company level, he can, however, invoke both of the following kinds of due process
at the same time: a. Statutory due process per Agabon doctrine which refers to the due process
provision in the Labor Code (Article 277[b]); and b. Contractual due process per Abbott Laboratories
doctrine. The rule since Agabon is that compliance with the statutorily-prescribed procedural due
process under Article 277(b) would suffice. It is not important whether there is an existing company
policy which also enunciates the procedural due process in termination cases in determining the validity
of the termination. However, under the latest doctrinal en banc ruling in the 2013 case of Abbott
Laboratories, Philippines v. Pearlie Ann F. Alcaraz, it is now required that in addition to compliance with
the statutory due process, the employer should still comply with the due process procedure prescribed
in its own company rules. The employers failure to observe its own company-prescribed due process
will make it liable to pay an indemnity in the form of nominal damages, the amount of which is
equivalent to the P30,000.00 awarded under the Agabon doctrine. When can an employee invoke
constitutional due process and right to equal protection of the laws? As distinguished from company-
level investigation conducted by the employer, a dismissed employee who files an illegal dismissal case
may raise the issue of deprivation of his right to constitutional due process and right to equal protection
of the laws against the Labor Arbiter who hears and decides his case or the Commission (NLRC), Court of
Appeals on Rule 65 certiorari petition. The reason is that, at this stage, the government is now involved
through said labor tribunals. When can the right to counsel be invoked by an employee? The right to
counsel cannot be invoked in an administrative proceeding such as the company-level investigation
conducted for the purpose of determining whether the respondent employee should be dismissed or
not. Right to counsel may be asserted only in custodial interrogation as this term is understood within
the context of criminal procedure. What is the effect of failure of employer to inform employee of his
right to counsel? The prevailing rule is the right to counsel is neither indispensable nor mandatory, as
held in the 2011 case of Lopez v. Alturas Group of Companies, thus: Parenthetically, the Court finds
that it was error for the NLRC to opine that petitioner should have been afforded counsel or advised of
the right to counsel. The right to counsel and the assistance of one in investigations involving
termination cases is neither indispensable nor mandatory, except when the employee himself requests
for one or that he manifests that he wants a formal hearing on the charges against him. In petitioners
case, there is no showing that he requested for a formal hearing to be conducted or that he be assisted
by counsel. Verily, since he was furnished a second notice informing him of his dismissal and the
grounds therefor, the twin-notice requirement had been complied with to call for a deletion of the
appellate courts award of nominal damages to petitioner. B. NEW CIVIL CODE What are examples of
labor cases where Article 1700 of the Civil Code was applied? Article 1700 of the Civil Code provides:
Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed
with public interest that labor contracts must yield to the common good. Therefore, such contracts are
subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop,
wages, working conditions, hours of labor and similar subjects. How is Article 1702 of the Civil Code
correlated with Article 4 of the Labor Code? Both Article 1702 of the Civil Code and Article 4 of the Labor
Code speak of the rule on interpretation and construction provisions of law and labor contracts. Article
1702 of the Civil Code provides: Article 1702. In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and decent living for the laborer. Article 4 of the
Labor Code states: ChanRobles Internet Bar Review : ChanRobles Professional Review, Inc.
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EXAMS Prof. Joselito Guianan Chan 3 Article 4. Construction in Favor of Labor. All doubts in the
implementation and interpretation of the provisions of this Code, including its implementing rules and
regulations, shall be resolved in favor of labor. Both articles above may be applied to doubts and
ambiguities in (1) labor contracts such as an employment contract or a CBA; (2) evidence presented in
labor cases. C. THE LABOR CODE What are the distinctions between Labor Relations and Labor
Standards? Labor standards law is that part of labor law which prescribes the minimum terms and
conditions of employment which the employer is required to grant to its employees. Labor relations
law is that part of labor law (Book V of the Labor Code) which deals with unionism, collective
bargaining, grievance machinery, voluntary arbitration, strike, picketing and lockout. Labor relations and
labor standards laws are not mutually exclusive. They are complementary to, and closely interlinked
with, each other. For instance, the laws on collective bargaining, strikes and lockouts which are covered
by labor relations law necessarily relate to the laws on working conditions found in Book III. What is
exclusive bargaining representative/agent? Exclusive bargaining representative or exclusive
bargaining agent refers to a legitimate labor organization duly recognized or certified as the sole and
exclusive bargaining representative or agent of all the employees in a bargaining unit. Can individual
employee or group of employees bring grievable issues directly to their employer without the
participation of the bargaining union? Yes. The designation of a bargaining agent does not deprive an
individual employee or group of employees to exercise their right at any time to present grievances to
their employer, with or without the intervention of the bargaining agent. Can individual employee or
group of employees bring grievable issues to voluntary arbitration without the participation of the
bargaining union? No, as held the 2009 case of Tabigue v. International Copra Export Corporation,
where the Supreme Court clarified that an individual employee or group of employees cannot be
allowed to submit or refer unsettled grievances for voluntary arbitration without the participation of the
bargaining union. The reason is that it is the bargaining union which is a party to the CBA which contains
the provision on voluntary arbitration. Being a party thereto, it cannot be disregarded when a grievable
issue will be submitted for voluntary arbitration. In order to have legal standing, the individual members
should be shown to have been duly authorized to represent the bargaining union. What is the
principle of co-determination? The principle of co-determination refers to the right given to the
employees to co-determine or share the responsibility of formulating certain policies that affect their
rights, benefits and welfare. In Philippine Airlines, Inc. (PAL) v. NLRC and Philippine Airlines Employees
Association (PALEA), it was held that the formulation of a Code of Discipline among employees is a
shared responsibility of the employer and the employees. It affirmed the decision of the NLRC which
ordered that the New Code of Discipline should be reviewed and discussed with the union, particularly
the disputed provisions and that copies thereof be furnished each employee. Does the grant of the right
of participation mean co-management of business or intrusion into management prerogatives? No. This
principle does not mean that workers should approve management policies or decisions. What is
Labor-Management Council (LMC)? The establishment of Labor-Management Council (LMC) is
mandated under the said constitutional principle of co-determination. What is the significance of
Article 277 of the Labor Code? Article 277 of the Labor Code enunciates the so-called statutory due
process (as distinguished from constitutional due process) as found in its paragraph (b), to wit: Article
277. Miscellaneous Provisions. (b) Subject to the constitutional right of workers to security of tenure
and their right to be protected against dismissal except for a just and authorized cause and without
prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the
worker whose employment is sought to be terminated a written notice containing a statement of the
causes for termination and shall afford the ChanRobles Internet Bar Review : ChanRobles Professional
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2014 BAR EXAMS Prof. Joselito Guianan Chan 4 latter ample opportunity to be heard and to defend
himself with the assistance of his representative, if he so desires, in accordance with company rules and
regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any
decision taken by the employer shall be without prejudice to the right of the worker to contest the
validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor
Relations Commission. The burden of proving that the termination was for a valid or authorized cause
shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the
effects of the termination pending resolution of the dispute in the event of a prima facie finding by the
appropriate official of the Department of Labor and Employment before whom such dispute is pending
that the termination may cause a serious labor dispute or is in implementation of a mass lay-off.
Additionally, Article 277 likewise recognizes the right of any employee, whether employed for a definite
period or not, to join and be a member of a labor union beginning on his first day of service