De La Salle University Manila

COLLEGE OF LAW

Course Title / Code: LABOR LAW I LABOR STANDARDS (LAW205M)

Semester / Academic Year: First Semester, AY 2017 2018
Professor: Ryan Jeremiah D. Quan, J.D., LL.M.
Consultation Hours: By appointment (ryan.quan@dlsu.edu.ph)

Course Description:

This course is an introduction to Philippine Labor Laws. It covers Preliminary Title, Pre-
Employment (Book I) and the Migrant Workers and Overseas Filipinos Act (R.A. 8042), as
amended; Book II on Human Resources Development and the TESDA Law (R.A. 7796), and the
Magna Carta for Disabled Persons (R.A. 7277); Book III on Conditions on Employment and
related special laws; Book IV on Health, Safety, and Social Welfare Benefits, including the laws
on the Social Security System, the Government Service Insurance System, and the National
Health Insurance Act, as amended.

Class Policies:

Apart from the cases assigned, students are expected to read annotations on the assigned topics
prior to each class. Additional readings may be given during the course of the semester.

During class, books and cases are not allowed on the students desks. At their option, students
may bring out handwritten notes (printed ones are not allowed) and codals during class.
Needless to state, looking at codals and notes during recitation is not allowed. Glancing at
codals and/or notes merits deductions in recitations grades. Gadgets, such as phones, laptops,
tablets, and the like are also not allowed in class. Make sure to turn them off or place them on
silent mode before entering the classroom. Each time a gadget sounds off in class, a quiz will be
administered.

All announcements will be made through the class beadle.

COURSE OUTLINE

INTRODUCTION

Laborem Exercens (On Human Work), Pope John Paul II, 14 September 1981

Link: http://w2.vatican.va/content/john-paul-ii/en/encyclicals/documents/hf_jp-
ii_enc_14091981_laborem-exercens.html

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EMPLOYER-EMPLOYEE RELATIONSHIP

A. Elements of the Relationship

Labor Code: Articles 97 (a), (b), (c), (e); 173 (f), (g); 219 (e) & (f)

Cases:
Television and Production Exponents v. Servaa, January 28, 2008
ABS-CBN Broadcasting Corp. v. Nazareno, September 26, 2006
Fulache v. ABS-CBN, January 21, 2010
Dumpit-Murillo v. Court of Appeals, June 8, 2007
Fuji Television v. Espiritu, December 3, 2014
(These five cases should be read in relation to Sonza v. ABS-CBN Broadcasting Corporation,
June 10, 2004)
Bernante v. PBA, September 14, 2011
Abella v. PLDT, June 8, 2005
Consulta v. CA, March 18, 2005
Villamaria v. CA, April 19, 2006
Republic of the Philippines v. ASIAPRO, November 23, 2007
Phil. Global Communications v. De Vera, June 7, 2005
Coca Cola Bottlers v. Climaco, February 5, 2007
Chavez v. NLRC, January 17, 2005
Angelina Francisco v. NLRC, August 31, 2006
Tongko v. Manufacturers Life, June 29, 2010 & January 25, 2011
Matling Industrial v. Coros, October 13, 2010
Cosare v. Broadcom Asia, February 5, 2014
Atlanta Industries v. Sebolino, January 26, 2011
Intel Technology v. NLRC & Cabiles, February 5, 2014
Royale Homes v. Alcantara, July 28, 2014
Olimpia Housing Inc. v. Lapastora, January 13, 2016

B. Independent Contractors and Labor-Only Contractors

Labor Code: Articles 106-109

Department Order No. 174, series of 2017
Department Circular No. 01, series of 2017

Cases:
Philippine Airlines v. Ligan, February 29, 2008
San Miguel Corporation v. Aballa,J une 28, 2005
Meralco Industrial Engineering Services v. NLRC, March 14, 2008
Manila Electric Company v. Benamira, July 14, 2005
Dole Phils. v. Esteva, November 30, 2006
Aliviado v. Procter and Gamble, March 9, 2010
Temic Automotive v. Temic Automotive Phils. Employees Union, December 23, 2009
Smart Communications v. Astorga, January 28, 2008

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 Coca-Cola Bottlers v. Agito, February 13, 2009
Manila Water v. Dalumpines, October 4, 2010
Babas v. Lorenzo Shipping, December 15, 2010
Teng v. Pahagac, November 17, 2010
Diamond Farms v. Farms Agrarian Reform Beneficiaries Multi-purpose Cooperative,
January 13, 2016
Manila Memorial Park Cemetery v. Luiz, February 3, 2016

C. Classes of Employees

Labor Code: Articles 293, 295-296

Omnibus Rules: Book VI, Sections 5-6

Cases:
Magis Young Achievers Learning Center v. Manalo, February 13, 2009
Pier 8 Arrastre & Stevedoring Services v. Boclot, September 28, 2007
The Peninsula Manila v. Alipio, June 17, 2008
Rowell Industrial Corporation v. CA, March 7, 2007
ABS-CBN Broadcasting Corp. v. Nazareno, September 26, 2006
Kimberly Clark Phils. v. Secretary, November 23, 2007
Benares v. Pancho, April 29, 2005
Hacienda Bino/Hortencia Starke v. Cuenca, April 15, 2005
Filipinas Pre-fabricated Building Systems (FilSystems) v. Puente, March 18, 2005
St. Marys University v. CA, March 8, 2005
Poseidon Fishing v. NLRC, February 20, 2006
PLDT v. Arceo, May 5, 2006
Fulache v. ABS CBN, January 21, 2010
Leyte Geothermal Power Progressive Employees Union v. PNOC-EDC, March 30, 2011
Asos v. PNCC, July 3, 2013
Malicdem v. Marulas Industrial Corp., February 26, 2014
Exodus International Construction v. Biscocho, February 23, 2011
DM Consunji v. Gobres, August 8, 2010
Mercado v. AMA Computer College, April 13, 2010
Colegio del Santisimo Rosario v. Rojo, September 4, 2013
Gapayao v. Fulo, June 13, 2013
Universal Robina Sugar Milling Corp. v. Acibo, January 15, 2014
Abbott Laboratories v. Alcaraz, July 23, 2013,April 22, 2014
Fuji Television v. Espiritu, December 3, 2014
Samonte v. La Salle Greenhills, Inc., February 10, 2016
Jamias v. NLRC, March 9, 2016

WAGES

1987 Constitution, Article XIII, Section 3

Labor Code: Articles 218, 290 (as amended by R.A. 10395)

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A. Concept and Definition

Labor Code: Articles 97-98

Omnibus Rules: Book III, Rule VII, Sections 2-9

Cases:
Tan v. Lagrama, August 15, 2002
Philippine Spring Water Resources v. Mahilum, June 11, 2014
Mabeza v. NLRC, April 18, 1997

B. Wage-Fixing

Labor Code: Articles 99, 101, 120-127

R.A. 6727, R.A. 8188
R.A. 9178
NWPC Guidelines No. 2, Series of 2012, Guidelines on the Implementation of the Two-Tiered
Wage System
Wage Order No. NCR-20

Cases:
David v. Macasio, July 2, 2014
Nasipit Lumber Co. v. NWPC, April 27, 1998
ECOP v. NWPC, RTWPB-NCR and TUCP, September 24, 1991
Metropolitan Bank and Trust Company v. NWPC, February 6, 2007
NWPC and RTWP v. APL, March 12, 2014

Wage Distortion
Metropolitan Bank & Trust Company Employees Union-ALU-TUCP v. NLRC,
September 10, 1993
Prubankers Association v. Prudential Bank, January 25, 1999
Bankard Employees Union-Workers Alliance Trade Unions v. NLRC, February 17, 2004

C. Payment of Wages

Labor Code: Articles 102-105, 112-119 (check Art. 259 Agency Fees, in relation to Art. 112)
Omnibus Rules: Book III, Rule VIII

Cases:
SHS Perforated Materials v. Diaz, October 13, 2010 (compare with Milan v. NLRC,
February 4, 2015)
Commando Security v. NLRC, July 20, 1992
Mabeza v. NLRC, April 18, 1997

D. Thirteenth-Month Pay

Presidential Decree No. 851 (1975)

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Memorandum Order No. 28 (1986)
Revised Guidelines on the Implementation of the 13th Month Pay Law

Cases:
National Federation of Sugar Workers v. Ovejera, May 31, 1982
Dole Philippines v. Leogardo, October 23, 1982
Universal Corn Products v. NLRC, August 21, 1987
San Miguel Corporation v. Inciong, February 24, 1981
Philippine Duplicators v. NLRC, February 15, 1995
Boie-Takeda Chemicals v. Dela Serna, December 10, 1993
Philippine Agricultural Commercial and Industrial Workers Union v. NLRC, August 14,
1995
Cebu Peoples Multi-purpose Cooperative v. Carbonilla, Jr., January 27, 2016

E. Service Charge

Labor Code: Article 96

Omnibus Rules: Book III, Rule VI

F. Non-Diminution

Labor Code: Article 100

Cases:
Sevilla Trading Co. v. Semana, April 28, 2004
Arco Metal Products v. Samahan ng mga Manggagawa sa Arco-Metal-NAFLU, May 14,
2008
Globe Mackay Cable v. NLRC, June 29, 1988
Insular Hotel Employees Union v. Waterfront Insular Hotel Davao, September 22, 2010
Asis v. Minister of Labor, March 15, 1989
American Wire and Cable Daily Rated Employees Union v. American Wire and Cable,
April 29, 2005
Royal Plant Workers Union v. Coca Cola Bottlers, April 15, 2013

G. Worker Preference

Labor Code: Article 110

Cases:
Development Bank of the Philippines v. Labor Arbiter, March 8, 1989
Development Bank of the Philippines v. Secretary, November 28, 1989
Development Bank of the Philippines v. NLRC, March 19, 1990 (including dissenting
opinion)

H. Attorneys Fees

Labor Code: Article 111

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WORKING CONDITIONS

A. Management Prerogative

Cases:
San Miguel Brewery Sales v. Ople, February 8, 1989
PT & T v. NLRC, May 23, 1997
Goya v. Goya Employees Union, January 21, 2013
Tabuk Multipurpose Cooperative, Inc. v. Duclan, March 14, 2016
Quintanar, et. al. v. Coca Cola Bottlers Philippines, June 28, 2016

B. Coverage

Labor Code: Article 82

Omnibus Rules: Book III, Rule I, Sections 1-2

Cases:
National Sugar Refineries Corp. v. NLRC, March 24, 1993
Penaranda v. Banganga Plywood Corp, May 3, 2006
San Miguel Brewery, Inc. v. Democratic Labor Organization, July 31, 1963
Auto Bus Transport Systems v. Bautista, May 16, 2005
Mercidar Fishing Corp. v. NLRC, October 8, 1998
Labor Congress of the Philippines v. NLRC, May 21, 1998
David v. Macasio, July 2, 2014
Apex Mining Company, Inc. v. NLRC, April 22, 1991

C. Hours of Work

Labor Code: Articles 83-90

Omnibus Rules: Book III, Rule I, Sections 3-11, Rule I-A, Rule II

Cases:

Art. 83
Manila Terminal Co. v. CIR, July 16, 1952
San Juan De Dios Hospital Employees Association v. NLRC, November 28, 1997

Art. 84
Rada v. NLRC, January 9, 1992
University of Pangasinan Faculty Union v. University of Pangasinan, February 20, 1984
National Shipyards and Steel Corporation v. CIR, December 30, 1961

Art. 85
National Development Co. v. CIR, November 30, 1962
Sime Darby Pilipinas v. NLRC, April 15, 1998

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Art. 87
Bisig ng Manggagawa ng PRC v. PRC, September 30, 1981
PAL Employees Savings and Loan Association, Inc. (PESALA) v. NLRC, August 22, 1996

Art. 88
Lagatic v. NLRC, January 28, 1998

Art. 89
Interphil Laboratories Employees Union v. Interphil Laboratories, December 19, 2001

Art. 86
Mercury Drug Co. v. Dayao, September 30, 1982

Evidence
Prangan v. NLRC, April 15, 1998
National Semiconductors Distribution Ltd. V. NLRC, June 26, 1998

D. Rest Periods and Holidays

Labor Code: Articles 91-94

Executive Order 203 (1987)
Omnibus Rules: Book III, Rules III-IV
R.A. 9849, December 11, 2009

Cases:
Jose Rizal College v. NLRC, December 1, 1987
San Miguel Corp. v. CA, January 30, 2002
Insular Bank of Asia and America Employees Union (IBAAEU) v. Inciong, October 23,
1985
Wellington Investment and Manufacturing Corporation v. Trajano, July 3, 1995
Caltex Regular Employees at Manila Office v. Caltex (Phils.), Inc., August 15, 1995

Divisor
Chartered Bank Employees Association v. Ople, August 28, 1985
Odango v. NLRC, June 10, 2004

E. Service Incentive Leave

Labor Code: Articles 95

Omnibus Rules: Book III, Rule V

Cases:
Cebu Institute of Technology v. Ople, December 18, 1987
Auto Bus Transport Systems v. Bautista, May 16, 2005

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F. Employees Paid by Results

Labor Code: Article 101

Cases:
Tan v. Lagrama, August 15, 2002
Serrano v. Severino Santos Transit, August 9, 2010
Labor Congress of the Philippines v. NLRC, May 21, 1998
David v. Macasio, July 2, 2014

G. Miscellaneous

Department Order No. 118-12, Rules and Regulations Regarding the Employment and Working
Conditions of Drivers and Conductors in the Public Utility Bus Transport Industry

Labor Advisory No. 4, series of 2016, Working Conditions in the Movie and Television Industry

WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES

A. Women

Labor Code: Articles 130, 132-136

Omnibus Rules: Book III, Rule XII, Sections 1, 4-14

R.A. 9710, Magna Carta of Women, Section 1-3, 4 (b) & k, 22, 35, 41
R.A. 7877, Anti-sexual Harassment Act of 1995

Cases:
Philippine Telegraph & Telephone Co. v. NLRC, May 23, 1997
Libres v. NLRC, May 28, 1999
Domingo v. Rayala, February 18, 2008
Duncan Association of Detailman v. Glaxo Wellcome, September 17, 2004
Star Paper Corp. v. Simbol, April 12, 2006

Maternity Leave and Paternity Leave

R.A. 1161, Social Security Act, as amended, Section 14-A

R.A. 8187, Paternity Leave Act
Implementing Rules and Regulations of R.A. 8187
CSC Memorandum Circular No. 01-2016

VAWC Victims Leave

R.A. 9262, Anti-Violence Against Women and their Children Act, Section 3 (a), 5, 43
Rules And Regulations Implementing Republic Act No. 9262, Section 42

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Solo Parents Leave

R.A. 8972, Solo Parents Welfare Act of 2000, Section 3 (a), 6-8
Implementing Rules and Regulations of R.A. No.8972, Section 16-21

Special Leave

R.A. 9710, Magna Carta of Women, Section 18

Implementing Rules and Regulations of R.A. No. 9710, Section 7 (M), 21

B. Night Workers

Labor Code: Articles 154-161 (as amended by R.A. 10151)

Department Order No. 119-12

For reference: check the repealed Article 130-131

C. Minors

Labor Code: Articles 137-138

Omnibus Rules: Book III, Rule XII, Sections 2-3
R.A. 7610, Special Protection Against Child Abuse, Exploitation and Discrimination Act, Section
12, as amended by R.A. 7658
R.A. 9231, An Act Providing for the Elimination of the Worst Forms of Child Labor and
Affording Stronger Protection for the Working Child

D. Househelpers

R.A. 10361, Batas Kasambahay

Cases:
Apex Mining Company, Inc. v. NLRC, April 22, 1991
Remington Industrial v. Castaneda, November 20, 2006

E. Homeworkers

Labor Code: Articles 151-153

DOLE Department Order No. 5, series of 1992

F. Handicapped/Disabled

R.A. 7277, Magna Carta for the Disabled, Sections 4 (a-d, i), 5-11, 32-33
Labor Code: Articles 78-81
Omnibus Rules: Book II, Rule VIII

Case:
Bernardo v. NLRC, July 12, 1999

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HUMAN RESOURCES DEVELOPMENT PROGRAM

A. National Manpower Development Program Government Machinery

Labor Code: Articles 43-56 (insofar as they have not been modified)
R.A. 7796, The TESDA Act

B. Apprenticeship and Learnership

Labor Code: Articles 57-77

Omnibus Rules: Book II, Rules VI-VII
R.A. 7687, The Dual Training System Act

Cases:

Nitto Enterprises v. NLRC, September 29, 1995

Filamer Christian Institute v. IAC, August 17, 1992
Atlanta Industries v. Sebolino, January 26, 2011

C. Employment of Aliens

Labor Code: Articles 40-42

Omnibus Rules: Book I, Rule XIV

Cases:
General Milling Corp. v. Torres, April 22, 1991
International School Alliance of Educators (ISAE) v. Quisumbing, June 1, 2000
McBurnie v. Ganzon, EGI-Managers, Inc., October 17, 2013

PRE-EMPLOYMENT

R.A. 8042, Migrant Workers and Overseas Filipino Act, as amended by R.A. 10022
Implementing Rules, Migrant Workers and Overseas Filipino Act
Department Order 141-15

A. Principles and Definitions

Labor Code: Articles 12 - 13

R.A. 8042 (Migrant Workers and Overseas Filipino Act): Secs. 2 - 5
Omnibus Rules Implementing R.A. 8042, secs. 1 - 2
1991 POEA Rules: Book I, Rules I II

Cases:
JMM Promotion and Management, Inc. v. CA, November 22, 1993
Philippine Ass. of Service Exporters, Inc. v. Drilon, June 30, 1988
Philippine National Bank v. Cabansag, June 21, 2005

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B. Recruitment and Placement

1. Definition; Illegal Recruitment; Prohibited Acts

Labor Code: Articles 13(b), 34, 35, 38, 39

R.A. 8042, Sections 6-9
Rules Implementing of R.A. 8042, Sections 9-13

Cases:
People vs. Diaz, July 26, 1996
Aquino vs. Court of Appeals, November 21, 1991
People v. Seoron, January 30, 1997
People v. Panis, July 11, 1990
People v. Goce, August 39, 1995
Darvin v. CA, July 13, 1998
People v. Yabut, October 5, 1999
People v. Saulo, November 15, 2000
Athenna International Manpower v. Villanos, April 15, 2005
Rodolfo v. People of the Phil., August 10, 2006

2. Regulation of Recruitment and Placement Activities

Labor Code: Articles 16, 18, 25-33, 35-37

R.A. 8042, Sections 29 30

Cases:
Eastern Assurance Corp. vs. Secretary of Labor, January 17, 1990
Capricorn Travel and Tours vs. CA, April 3, 1990
Stronghold Insurance Co. vs. CA, January 30, 1992
Catan v. NLRC, April 15, 1988
Royal Crown v. NLRC, October 16, 1989
Trans Action Overseas Corp. v. Secretary of Labor, September 5, 1997
Salazar v. Achacoso, March 14, 1990
Republic v. Human Link Manpower, April 22, 2015

3. Contracts

1991 POEA Rules: Book V, Rule II

Labor Code: Articles 34-35

Cases:
Virjen Shipping v. NLRC, November 18, 1983, July 20, 1982
Suzara v. Benipayo, August 15, 1989
Seagull Maritime v. Balatongan, February 28, 1989
Chavez v. Bonto-Perez, March 1, 1995
Interorient Maritime Enterprises, Inc. v. NLRC, September 16, 1996

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 Placewell International Services v. Camote, June 26, 2006
Sunace International Management Services v. NLRC, January 25, 2006
Santiago v. C.F. Sharp, July 10, 2007

4. Government Machinery

Labor Code: Articles 14 - 21, 24 (note that Arts. 15, 17, 19 have been repealed)
E.O. 247 (1987) (POEA Organization)
R.A. 8042, Sections 13 - 30, 32- 34
P.D. 1694 (OWWA)
B.P. 79 (Commission on Filipinos Overseas)

5. Other matters incidental to Overseas Employment

a. Repatriation:
R.A. 8042, Sections 14 18, 36
Omnibus Rules Implementing R.A. 8042, Sections 52 - 61

Case:
Equi-Asia Placement, Inc. v. Department of Foreign Affairs, September 19, 2006

b. Foreign Exchange Remittance

Labor Code: Article 22

E.O. 857 (1982)
Rules Implementing EO 857, Rule 2, Sections 4; Rule 5, Sections 1 - 5

c. Exemption from taxes and fees; scholarship

R.A. 8042, Sections 35-37

d. Migrant Workers Day: R.A. 8042, Section 39

e. Incentives to Professionals: R.A. 8042, Section 31

f. Disciplinary Actions: 1991 POEA Rules, Book VII, Rule 7

6. Dispute Settlement

Labor Code: Articles 36 -37

RA 8042, Sections 9 - 13
Omnibus Rules Implementing R.A. 8042, Sections 28 - 29

Cases:
Acua v. CA, May 5, 2006
Serrano vs. Gallant Maritime, March 24, 2009
Sameer Overseas v. Cabiles, August 5, 2014
Yap v. Thenamaris Ships Management, May 30, 2011

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 Skippers United v. Doza, February 8, 2012
Stolt-Nielsen v. Medequillo, January 18, 2011
Estate of Nelso Dulay v. Aboitiz Jebsen Maritime, June 13, 2012
Hon. Sto. Tomas v. Salac, November 13, 2012

ENFORCEMENT MECHANISM (FOR WAGES AND OTHER BENEFITS)

Labor Code: Articles 128-129, 306-307

Cases:
Peoples Broadcasting v. Secretary, May 8, 2009 and March 6, 2012
Arriola v. Pilipino Star Ngayon, August 13, 2014
Auto Bus Transport Systems v. Bautista, May 16, 2005

HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS

Medical Dental and Occupational Safety, Articles 162-171

Employees Compensation, Articles 172-178

Cases:
Sarmiento v. ECC, May 11, 1988
Belarmino v. ECC, May 11, 1990
Hinoguin v. ECC, April 17, 1989
GSIS v. CA and Alegre, April 20, 1999
Valeriano v. ECC, June 8, 2000
Alano v. ECC, March 16, 1988
Lazo v. ECC, June 18, 1990
NFD International Manning Agents v. Illescas, September 29, 2010
Menez v. ECC, April 25, 1980
Clemente v. GSIS, July 31, 1987
Narazo v. ECC, February 6, 1990
Orate v. CA, March 26, 2003

Art. 179
Ortega v. Social Security Commission, June 25, 2008
Ysmael Maritime v. Avelino, June 30, 1987

P.D. 1921 (DOJ Opinion, May 23, 1989, and January 12, 1990)

Social Security (Focus on Coverage, Benefits, Beneficiaries)

R.A. 1161, as amended by R.A. 8282 (SSS)

Social Security Commission v. Azote, April 15, 2015

R.A. 8291 (GSIS)

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R.A. No. 7699, Limited Portability Law

R.A. 7875, as amended by R.A. 9241 and 10606 (National Health Insurance Act)

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