ATENEO CENTRAL BAR OPERATIONS 2006

Labor Law
SUMMER REVIEWER

- page 1 of 75 –

TABLE OF CONTENTS

I. LABOR LAW IN GENERAL III. LABOR RELATIONS 15

Management prerogative 3 Right to self organization
Quitclaims
II. LABOR II STANDARDS 3 Special rules on employees 15
Employer-employee relationship Kinds of unions 17
Control test Chartering of mother union to a local union 18
Economic relations test 4
Conditions of work and rest period 4 Requirements for registration of unions 19
Benefits to which piece-rate workers 4
Overtime 5 Grounds for cancellation of union registration 21
Rules on mealtime 5 Grounds for cancellation of union registration 22
Premium pay for work on rest days / special days 6 Procedure in cancellation of registration due to non- 23
Authorized work on rest day 6 compliance with the reportorial requirements
Holiday work 6 Rights and conditions of membership to unions 23
Service incentive leave 7 Intra-union disputes 25
13th month pay 7 Visitorial power 25
Basic salary 7 Rights of legitimate labor organizations 26
Vacation leave 7 Unfair labor practices 27
Service charge 8 ULP of employers 28
Medical treatment 9 ULP of labor organizations 29
Visitorial and enforcement power and recovery of wages 9 Duty to bargain collectively: 30
Recovery of wages, simple money claims & other benefits 10 Selection of bargaining representative: 30
Employment of women 10 Petition for certification election 33
Anti-sexual harassment law (RA 7877) 12 4 bars to holding a certification election: 35
Minimum employable age 12 Denial of CE 36
Employment of home workers 13 Appeal for the petition for CE 36
Employment of handicapped / disabled workers 13 Collective bargaining 37

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 2 of 75 –

Strikes, lockouts and concerted actions 38 GSIS LAW

Assumption of jurisdiction by secretary of labor under art 39 VII. COMPREHENSIVE AGRARIAN REFORM LAW 59
263(g) AS AMENDED
Power of the president under art 263(g) 40 VIII. CASE DOCTRINES 66
Prohibited activities in strikes and lock-outs 40
Effects of illegal strike
Jurisdiction of voluntary arbitrators 43
IV. TERMINATION OF EMPLOYMENT 44
Security of tenure
Classes of employees 44
Termination 45
Just causes 45
Authorized causes 45
Separation pay 47
Backwages 48
Due process 48
Effects of removal without cause: 48
Effect of removal with cause but without due process 48
Constructive dismissal 49
Dismissal in relation to closed shop agreement 49
Floating status 49
Abandonment 49
Resignation 49
Employment not deemed terminated 49
Preventive suspension 50
Retirement pay law (RA 7641) 50
V. DISPUTE SETTLEMENT
Summary of jurisdiction 52
Prescriptive periods 54
Procedure 54
VI. SALIENT FEATURES OF THE SSS LAW AND 56

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

I. LABOR LAW IN GENERAL
Management Prerogative
Rule: employer is free to regulate, according to his own
discretion and judgment, all aspects of employment,
including:
hiring, work assignments, working methods, time, place and
manner of work, tools to be used, processes to be followed,
supervision of workers, working regulations, transfer of
employees, work supervision, lay-off of workers and the
discipline, dismissal and recall of workers
Ex: as limited by special laws
• As long as the company’s exercise of the same is
exercised in good faith for the advancement of the
employer’s interest, and not for the purpose of defeating
or circumventing the rights of the employees under special
laws or valid agreements, the courts will uphold them
(Capitol Medical Center, Inc. v. Meris, September 16,
2005).
Quitclaims
• Public policy (protection of employees because they stand
on unequal footing with their employers) dictates that
quitclaims signed by our migrant workers are presumed to
have been executed at the behest of the employer. It is the
employer’s duty to prove that such quitclaims were
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 3 of 75 –
voluntary (Oriental Ship Management v CA, January 25,
2006).
II. LABOR STANDARDS
EMPLOYER-EMPLOYEE RELATIONSHIP (EER)
EMPLOYER - includes any person acting directly or indirectly
in the interest of an employer in relation to an employee.
EMPLOYEE - includes any individual employed by the
employer.
Jurisprudential tests for determining the existence of EER:
1. CONTROL TEST – primary test
Elements:
The employer has the ability (need not be actual) to exercise
control over the following:
1.) Wages
2.) Hiring
3.) Firing
4.) Control, not only over the end product/result of
the work, but more importantly, control over the
MEANS through which the work is accomplished.
(most essential element; without it, there is no EER)
2. ECONOMIC RELATIONS TEST – a subordinate/alternative
test. Here, documents such as the company ID, time card,
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 4 of 75 –

pay-slip, ITR, SSS record, loans, and the like can be used to Those paid by results, piece-work, pakyaw or task basis – no
show such a relationship. longer under the same category as those above (Labor
Congress v. NLRC, 290 SCRA 509)
CONDITIONS OF WORK / REST PERIODS:
Benefits to which Piece-Rate Workers are entitled to:
Coverage – the Title shall apply to employees in all (HANS-MOTO)
establishments and undertakings whether for profit or not.
1. Holiday Pay
Exempt:
1. Government Employees
2. Applicable Statutory Minimum Daily Rate
2. Managerial employees
• primary duty is management
3. Night Differential Pay

• customarily and regularly directing work of 2 or more 4. Service Incentive Leave

employees
• with authority to hire 5. Meal and Rest Periods
• suggestions given particular weight
• include officers or members of the managerial staff
6. Overtime Pay
3. Members of the employer’s family dependent on him for
support
7. Thirteenth Month Pay
4. Domestic Servants 8. Other Benefits
5. Field personnel regularly performing duties away from
office Overtime – work in excess of 8 hours
• non agricultural employees who regularly perform
their duties away from the office and whose actual Premium rate for Overtime:
hours of work cannot be estimated with certainty; this Normal 25% ON TOP OF HOURLY RATE
includes in its scope “unsupervised employees” Holiday/Rest Day 30%
(Mercidar Fishing Corporation v. NLRC 297 SCRA Special Day 30%
440 (1998))

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 5 of 75 –

GR: Overtime compensation cannot be waived

Ex: 5. Field
Personnel
1. When waiver is in consideration of benefits and
privileges which may be more than the OT pay Rules on Meal Time
2. Voluntarily agrees to work 9 hours 1. 60 minutes and above: not counted as working time
3. No diminution in pay 2. Less than 60 minutes: counted as working time
4. Value of benefits ≥ 1hr. OT pay during weekdays • minimum 20 minutes
5. OT pay due and demandable even if permitted to work
Saturdays COUNTED AS EXCEPT
6. Work doesn't involve strenuous physical exertion
WAITING
WORKING TIME IF
• Integral part
7. Temporary duration TIME of work/required
• Engaged by
the employer to
Night Shift Differential – work from 10pm 6am; 10% wait
SUBJECT • Required to • Kept w/in
Note: The Differential does NOT apply to: (GriD-MF) TO CALL remain on call in through cell
1. Government employer’s phones or other
Employees premises or close contact devices
so that he cannot but must remain
2. Retail use the time w/in a certain
Businesses with less than 5 workers effectively for his geographical area
own purpose
3. Domestic WORKING • Subject to
Helpers WHILE serious
SLEEPING
4. Managerial
•
interruption
Takes place
Employees under less
desirable
conditions than

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 6 of 75 –

would be likely to 3. Urgent work to be performed on Machines to avoid

exist at serious loss or damage to employer
employee’s home 4. Necessary to Prevent loss of life/property or Imminent
TRAININGS, • Compensab • Voluntary danger to public safety
PROGRAMS, le Attendance 5. Necessary to prevent loss or damage to perishable
LECTURES, • Employee goods
MEETINGS does not perform 6. Necessary to avail of favorable weather or
any productive environmental condition
work during
attendance Authorized Work on a Rest Day allowed when: (PUNA3)
MEAL TIME • Required by 1. Prevent loss/damage to perishable goods
the employer 2. Urgent work to be performed on machinery
3. Nature of work requires continuous operations
• Taken for
4. Actual impending emergency
the employer’s
5. Abnormal pressure or work
benefit
6. Analogous situations
PREMIUM PAY FOR WORK ON REST DAYS / SPECIAL
Note: Under time cannot be offset by Overtime.
DAYS
• Rest Day - 30% HOLIDAY PAY
• Special Day - 30% (Nov.1 & Dec. 31) Unworked 100%
• Rest Day falls on Special Day - 50% Worked 200%
- if also Rest day 230%
For special day: NO WORK, NO PAY
To avail of Holiday pay, Employee should not have been
Emergency OT Work allowed when: (C2UN3) absent without pay on the working day preceding the holiday.
1. Country at war/National or Local Emergency
2. Completion of work started before the 8th hour and is Legal/Regular Holidays:
necessary to prevent serious obstruction or prejudice 1. New Year's Day - January 1
to the business 2. Maundy Thursday
3. Good Friday

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 7 of 75 –

4. Araw ng Kagitingan - April 9

5. Labor Day - May 1 4) Field Employees including those in Contract
6. Independence Day - June 12 basis
7. National Heroes Day - Last Sun of August
8. Bonifacio Day - November 30
5) Already with vacation leave with pay of at least
9. Christmas Day - December 25 5 days
10. Rizal Day - December 30 6) Managerial Employees
Does NOT apply to: 7) Employed in establishments regularly
1. Government employees employing less than 10 employees
2. Retail and Service Establishments regularly employing less
than 10 13TH MONTH PAY
3. Domestic helpers 1. Demandable as a legal obligation
4. Managerial employees 2. In the nature of wages, not bonuses
5. Field Personnel 3. Provided by law
6. Hourly Paid Faculty Members 4. Not computed as additional benefits
SERVICE INCENTIVE LEAVE Who are entitled?
• Has worked for at least a year
1. All Rank & File employees who worked at least 1
month
• 5 days with pay 2. Those with Multiple Employers
• Commutable to its money equivalent if it’s not used or 3. Paid by Result
exhausted at the end of the year 4. Private School Teachers
5. Resigned or Separated employees (proportional)
Does NOT apply to: (GAD-FAME)
1) Government employees NOT entitled:
1. Gov’t. employees
2) Already enjoying benefit 2. Employers of Household helpers
3. Those Already paying
3) Domestic Helpers and those in the personal 4. Employers of employees paid purely on commission,
service of another fixed, boundary or task basis

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Minimum Amount: Not less than 1/12 of total basic salary
earned within a calendar year
BASIC SALARY
• for purposes of 13th mo. pay, shall include all
remunerations or earnings paid by his employer for
services rendered
• but does NOT INCLUDE: allowances and monetary
benefits which are not considered or integrated as part
of the regular or basic salary such as vacation and sick
leave credits, OT premium, night differential, holiday pay
and COLA
UNLESS by individual or collective agreement or company
practice or policy, they are treated as basic salary.
VACATION/SICK LEAVE - not required by law, but must be
observed when stipulated in a CBA
SERVICE CHARGE
85% to Covered Employees – equally distributed
among them, regardless of position or
employment status
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 8 of 75 –
15% to Management – may answer for the losses
and breakages, or may be distributed to
managers.
BONUS – amount granted and paid to an employee for his
industry and loyalty which contributed to the success of the
employer’s business and made possible the realization of
profits.
General Rule: Act of Gratuity on the part of Employer;
Can't be demanded
Ex:
1. Given for a long period of time
2. Consistent & deliberate
3. Employer knew he was not required to give benefit
4. Employer realizes profits – depends if nature of benefit is
dependent on profit
WAGE DISTORTIONS
An increase in the prescribed wage rates, which results in the
elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among
employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiations.
Procedure for correcting:
1. Organized establishment
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

• grievance procedure
• voluntary arbitration (decide w/in 10 days from referral)
2. Unorganized establishment
• Employer and workers will try to correct the distortion
• NCMB (10 calendar days--conciliation if unresolved)
• NLRC (decide w/in 20 days from submission)
MEDICAL TREATMENT OF EMPLOYEES
GR : First-Aid medicine and equipment made available
Training of sufficient Number of Employees to apply
First-Aid Treatment
51-200 Employees Full-time registered nurse
EXCEPT when the employer
doesn't maintain hazardous work
places (Licensed First-Aider
sufficient)
201-300 Employees Full-time Registered Nurse,
Part-Time Physician, Dentist &
Emergency Clinic
301 or more Full-Time Registered Nurse,
Full-Time Physician, Dentist,
Dental Clinic,
Infirmary/Emergency Hospital
with a bed capacity of 1 bed per
100 employees
EXCEPT when there is a
hospital or clinic accessible from
the Employer's establishment
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 9 of 75 –
AND he makes arrangements for
the Reservation of necessary
bed and dental facilities
Hazardous Work Full-Time Physician - at least 2
hours
Place Part-Time Physician - at least 8
hours
VISITORIAL AND ENFORCEMENT POWER (AR2I2O2)
by Secretary of Labor or duly authorized representative:
1. Access to employer's records and premises
2. Right to copy records
3. Right to question any employee
4. Investigate any fact, condition or matter which
may be necessary to determine violations, or which
may be necessary to aid in enforcement of this code or
any labor law or order.
5. Issue writs of execution to the appropriate
authority for enforcement of their orders
6. Order and administer, after due notice and
hearing, compliance with the Labor Standards
provisions
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 10 of 75 –

7. Order stoppage of work or suspension of RECOVERY OF WAGES, SIMPLE MONEY CLAIMS &
operations when non-compliance with law and OTHER BENEFITS
implementing regulations poses grave and imminent
danger to the health and safety of workers in the Jurisdiction: DOLE Regional Director (Summary
workplace (only Secretary of Labor has this power) Proceeding)
Claimant : Employee or person in domestic or household
Note: service, Provided:
• Hearing within 24 hours 1. No claim for reinstatement
• Employer liable for salaries during suspension of 2. Aggregate claims of each employee or househelper does
operations if found to have caused the violation not exceed P5,000
if the claim later exceeds P5,000, Regional Director still
• NO TRO or Temporary/Permanent injunction may be retains jurisdiction based on inspection's findings in the
issued by an inferior court over any case involving the nature of enforcement action – [Guico v. Secretary of
enforcement orders issued Labor 298 SCRA 666 (1998)]
3. Claims arise from EER
VISITORIAL & RECOVERY OF WAGES
ENFORCEMENT POWER UNDER ARTICLE 129 Note:
UNDER ARTICLE 128 • Notice and Hearing
• Offshoot of • Initiated by sworn • Resolution of Complaint within 30 days from filing (Appeal
inspection complaints within 5 calendar days to NLRC)
• Labor legislation in • Limits proceedings to • NLRC to resolve appeal within 10 calendar days from
general monetary claims which submission of last pleading
involve any labor
• Inspection of • Adjudication through NOT Included: Claims for Employee's Compensation, Social
establishments & the summary proceedings after Security benefits, Medicare Benefits and Maternity Benefits
issuance of order to notice and hearing of
compel compliance with employee’s claims for wages Regional Director cannot enforce results of Visitorial Power
labor standards, wage & benefits when:
orders & other labor law 1. Employer contests the findings
regulations

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 11 of 75 –

2. Issues raised requires examination of evidentiary

matters 5. Nature of work requires the manual skill
3. Such matters are not verifiable in the normal course of and dexterity of women workers and the same cannot
inspection be performed with equal efficiency by male workers

EMPLOYMENT OF WOMEN
6. Immediate members of the family
operating the establishment or undertaking
NIGHTWORK PROHIBITION
a. Industrial Undertaking 10pm-6am
7. Other analogous cases

b. Commercial or Non-industrial, or 12am-6am

FACILITIES FOR WOMEN
branch thereof, other than
a. Provide seats proper for women
agricultural
b. Establish separate toilet rooms and lavatories
c. Agricultural Undertaking Nighttime, unless and provide at least a dressing room for women
given a period of c. Establish a nursery in a workplace for the
rest not less than 9 benefit of the women employees
consecutive hours d. Determine appropriate minimum age and other
standards for retirement and termination in special
Exceptions: cases
1. Actual or impending emergencies to
MATERNITY LEAVE BENEFITS
prevent loss of life/property or force majeure or
imminent danger to public safety • Has paid at least 3 monthly contributions in the
12-mo. period immediately preceding the semester of
2. Urgent work to be performed to avoid her childbirth or miscarriage
serious loss to employer • Paid only for the first 4 deliveries or
miscarriages
3. Necessary to prevent serious loss of • 100% of average salary credit for 60 days if
perishable goods normal or 78 days if caesarean
4. Holds a responsible position of
• Woman employee may be married or unmarried
managerial or technical nature or engaged to provide
health or welfare service

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Paternity Leave RA 8187 – male employee entitled to
paternity leave of 7 days with full pay for the first 4 deliveries of
the legitimate spouse with whom he is cohabiting
FAMILY PLANNING SERVICES, INCENTIVES FOR FAMILY
PLANNING
• Maintain clinic or infirmary which shall provide for
family planning service
• Develop and prescribe incentive bonus schemes to
encourage family planning among female workers in
any establishment/enterprise
DISCRIMINATION PROHIBITED
ACTS OF DISCRIMINATION:
1. Payment of lesser compensation for work of equal
value
2. Favoring over promotion, training opportunities, study
and scholarship grants solely on account of their sexes
Note:
• Institution of any criminal action under this shall not bar the
aggrieved employee from filing an entirely separate and
distinct action for money claims, which may include claims
for damages and other affirmative relief
• Actions authorized shall proceed independently of each
other
VOID STIPULATIONS AGAINST MARRIAGE
• either as a condition for employment (pre) or for continuing
employment (post)
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 12 of 75 –
PROHIBITED ACTS (DDD)
1. Deny benefits or discharge any woman employed to avoid
giving benefits
2. Discharge such a woman on account of her pregnancy or
while on leave or in confinement due to her pregnancy
3. Discharge or refuse the admission of such woman upon
returning to her work for fear she may again be pregnant
CLASSIFICATION OF CERTAIN WOMEN WORKERS
Any woman permitted or suffered to work in a night club,
cocktail lounge, massage clinic, bar or similar establishment,
under effective control or supervision of the employer for
substantial period determined by the Sec. of Labor, considered
as employee
ANTI-SEXUAL HARASSMENT LAW (RA 7877)
• victim may be male or female
• committed by a person who has Authority, Influence or
Moral ascendance (AIM) over victim
• in a Work, Educational or Training (WET) environment
• offender demands, requests or otherwise requires sexual
favor from the victim, whether or not the latter accedes
MINIMUM EMPLOYABLE AGE
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Below 15 Shall not be employed, except (RA 7610)
Years 1)
- when working under under the sole responsibility of his
parents or guardian, and
- where only members of the employer’s family are employed
and
- his employment does not endanger his life, safety, health
and morals, nor impair his normal development, and
- the parent or legal guardian shall provide said minor with the
prescribed primary and/or secondary education
2)
- child’s employment in public and entertainment or information
through cinema, theater or radio or television is essential,
- PROVIDED employment contract is concluded by child’s
parents or guardian with express agreement of child and
DOLE if possible AND employer ensures child’s protection,
health,
safety and morals
15-below In undertakings which are NOT hazardous or deleterious
18
18 Years No prohibition
Hazardous or Deleterious:
a. exposes workers to dangerous environmental
elements, contaminations, or work conditions
including ionizing radiations, chemicals, fire,
flammable substances, noxious components and the
like
b. engaged in construction work,
logging, fire-fighting, mining, quarrying, blasting,
stevedoring, dock work, deep-sea fishing and
mechanized farming
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 13 of 75 –
c. engaged in the manufacture or
handling of explosives and other pyrotechnic products
d. exposed to or use of heavy or
power-driven machinery or equipment
e. use or are exposed to power-driven
tools
EMPLOYMENT OF HOUSEHELPERS
• engaged in the employer's home, whose services are
usually or desirable for the maintenance and enjoyment
thereof, and ministers exclusively to the personal comfort
and enjoyment of the employer's family
1. Original Contract not more than 2 years but may be
renewed
2. If assigned to work in a commercial, industrial or
agricultural enterprise, must not be paid lower than
agricultural or non-agricultural workers
3. If under 18 years of age, must be given opportunity to
finish at least elementary schooling - cost of education
shall be part of compensation
4. Treated in a just and humane manner
5. Free : Sanitary and suitable living quarters
i. Adequate food
ii. Medical attendance
6. Indemnity for unjust termination if there is a Fixed
Period of Service
i. Compensation already earned + 15
days
7. If no fixed period, notice of termination must be given
at least 5 days prior
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Domestic helper is NOT one who works for a staff house / rest
house; the CRITERIA is that the helper administers to the
comfort of the family of the employer in the home of said
employer. [Apex Mining Company,Inc. v. NLRC 196 SCRA
251 (1991)]
EMPLOYMENT OF HOMEWORKERS
D.O. 5 (1992)
- applies to any person who performs industrial
homework for an employer, contractor or sub-contractor.
Industrial Homeworker
system of production under which work for an employer or
contractor is carried out by a homeworker at his / her home.
Materials may or may not be furnished by the employer or
contractor.
Employer of a Homeworker:
- any person who delivers or causes to be delivered any
goods, articles or materials to be processed or fabricated
in or about a home and thereafter to be returned or to be
disposed of or distributed in accordance with his direction;
or
- sells goods, articles for the purpose of having such
goods or articles processed in or about a home and then
repurchases them himself or through another after such
processing.
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 14 of 75 –
EMPLOYMENT OF HANDICAPPED / DISABLED WORKERS
• Earning capacity impaired by: age & physical/mental
defects
• Can be regular if work is usually or necessary or desirable
to the business [(Bernardo v. NLRC 310 SCRA 186
(1999)]
When Employable
a. necessary to prevent curtailment of
employment opportunities AND
b. does not create unfair competition in labor
costs or impair working standards
2. Employment Agreement shall state/include:
c. Names and addresses of the handicapped
workers to be employed
d. Rate to be paid (not less than 75% of
applicable legal minimum wage)
e. Duration of employment period
f. Work to be performed by handicapped
(the agreement is always subject to
inspection by SOLE or duly authorized
representative)
3. Eligibility for Apprenticeship
- If their handicap is not such as to
effectively impede the performance of job
operations in the particular occupations for
which they are hired
Learners Apprentices
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 15 of 75 –

What • persons • practical training • Ability to follow

hired as trainees in on the job oral and written
semi-skilled and • supplemented by There is a list of instructions
other industrial related theoretical learnable trades by • Any form of
occupations instruction TESDA employment requiring
• non- • covered by a beyond 3 mos. practical
apprenticeable and written apprenticeship training on the job
• may be agreement with an supplemented by
learned through individual employer or related theoretical
practical training on entity instruction
the job in a • needs DOLE • No list
relatively short approval
period of time • shall not exceed
• shall not 6 months
exceed 3 months
When • no experienced • only
may be workers available in highly technical
hired • prevent industries
curtailment of • only
employment in apprenticeable
opportunities occupations
• not to create
unfair competition
in labor costs and
lower working
standards
• At least 14 years
old
• Possess
vocational aptitude and
capacity for tests
• Ability to
comprehend

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 16 of 75 –

II. LABOR RELATIONS

SPECIAL RULES:
RIGHT TO SELF ORGANIZATION A. Managerial and Supervisory Employees
PRIMARY BASIS - Constitution (Art. II, Sec. 18; Art. III, Sec. 1. Managerial Employee – vested with powers or
8; Art. XIII, Sec. 3) prerogatives to:
a. lay down and execute management
WHO ENJOYS THE RIGHT policies
General Rule: b. hire, transfer, suspend, lay-off, recall,
• ALL persons in: discharge, assign or discipline employees.
Commercial, industrial, agricultural, religious, charitable,
medical and educational institutions, whether or not operated Note: Laying down AND executing management policies
for profit. must CONCUR.

The right includes: The management policies referred to pertain EXCLUSIVELY

1.) Forming, joining, or assisting labor organizations freely
chosen by workers.
2.) Freedom from coercion, restraint, and similar acts that
impede the forming, joining and assistance of labor
organizations.
PURPOSE: Collective bargaining, engaging in lawful
concerted activities for collective bargaining, and mutual aid
and protection.
• Ambulant, intermittent and itinerant and rural
workers, the self-employed and those with no
definite employers may form:
Labor organizations.
PURPOSE: Mutual aid and protection.
to labor relations. Hence, even employees at or near the top of
the company hierarchy in terms of business issues may not
necessarily be disqualified from joining a union.
2. Supervisory Employee – In the interest of the employer,
EFFECTIVELY RECOMMENDS managerial actions
mentioned above. Exercise of such authority is not merely
routinary or clerical in nature, but requires the use of
independent judgment.
Note: “Effectively recommends” means that while the
supervisor’s recommendation is reviewed by management, as
a general rule such recommendation is given weight. Absent
any grave abuse of discretion or manifest oversight in
appreciation of facts and evidence on the supervisor’s part, his
decision stands.

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

3. Employees who do not fall under any of the 2 categories
are Rank and File (R & F).
4. Managerial employees may not join, assist, or form ANY
labor organization
5. Supervisory employees are not eligible for membership in
R & F labor organizations, but may join, assist, or form
separate labor organizations of their own.
6. It is nature of the work, not title thereof that is controlling.
*Atlas and Toyota Shaw Cases
Supervisor’s union was not allowed to affiliate itself with the
national federation of R & F employees, since the SC ruled
that such would circumvent Art. 245. This is true if the
supervisors concerned are directly supervising the work of the
R & F employees and the federation is actively involved in
collective bargaining in the establishment.
B. Confidential Employees
Two Requisites:
1. A fiduciary working relationship, with;
2. A managerial employee who oversees labor relations.
The confidential employee should have access to confidential
information and documents pertaining to labor relations, with
such access being inherent to the confidential employee’s
work. This ruling should be applied strictly to avoid
unnecessary curtailment of the right to self-organization.
[Sugbuanon v. Laguesma, February 2, 2000]
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 17 of 75 –
C. Security Guards - No special rule; free to join any
union of R & F or supervisors, depending on their rank.
[Manila Electric Co. v Sec. of Labor and Employment, May
20, 1991]
D. Cooperative Members
Collective bargaining is not available to a member of a
cooperative who is an employee and at the same time a
member and co-owner thereof. The rationale for this is that
one cannot bargain with himself. Only employees who are not
members or co-owners of the cooperative have the right to
self-organization, collective bargaining, and negotiation. It is
the fact of ownership / membership, not the level of
involvement (or lack thereof) in actual management that
disqualifies a member.
E. Government Employees
• E.O. 180: government employees have the right to
organize and bargain collectively
• However, they cannot bargain for higher wages, as
such are fixed by law and Congressional appropriation.
• Only those terms and conditions not otherwise fixed by
law may be subjects of negotiation between the duly
recognized employees’ associations and appropriate
government authorities
EO 180:
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Applies to all employees of all branches, subdivisions,
instrumentalities and agencies of the government
including employees of GOCCs with original charters
Can form, join or assist employees’ organization for
furtherance and protection of interest
NOT Covered: (HAPP-FJ)
High-level employees
AFP
Police Officers
Policemen
Firemen
Jailguards
Application filed with the BLR
Registration is with the CSC or DOLE
CSC Chairman and DOLE Sec jointly approve
Petition for Certification Election if filed with the BLR
F. International Organizations
International organizations are immune from legal process
thus the DOLE has no jurisdiction over them; however they
have the right to organize for the purpose of maintaining
mutual and beneficial cooperation between management
and employees. [International Catholic Migration v. Ferrer-
Calleja, 190 SCRA 130 (1990)]
G. Religious Objectors
• Members of religious sects (i.e. Iglesia ni Kristo) not
prohibited from affiliating with labor unions; they
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 18 of 75 –
cannot be compelled to join unions even with a
security clause
• Right to religion prevails
• It still leaves to said members the liberty and the power
to affiliate, or not to affiliate, with labor unions.
[Kapatiran sa Meat and Canning Divison v Ferrer-
Calleja, 162 SCRA 367]
2 KINDS OF UNIONS (As to purpose)
1) LABOR ORGANIZATION
• For purposes of Collective Bargaining
• any union or association of employees in the private
sector which exists for collective bargaining purposes
or for dealing with employers regarding terms &
conditions of employment
2) WORKER’S ASSOCIATION
• For mutual Aid and Protection
• an association of workers organized for its members'
mutual aid and protection or for any legitimate purpose
other than collective bargaining
Any employee, whether employed for a definite period or not,
shall, beginning on his first day of service, be considered an
employee for purposes of membership in any labor union.
DEFINITIONS:
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

1.) INDEPENDENT UNION-Labor organization operating
at the enterprise level; legal personality stems from an
independent action for registration.
2.) CHARTERED LOCAL-Labor organization also at the
enterprise level; legal personality acquired from the
issuance of a certificate of creation.
3.) NATIONAL UNION/FEDERATION-Labor organization
with at least 10 locals/chapters or affiliated unions, each of
which must be a duly certified or recognized collective
bargaining agent.
4.) TRADE UNION CENTER-Group of registered national
unions or federations organized for the mutual aid and
protection of members, assistance in collective bargaining,
and participation in the formulation of social and
employment policies and standards.
5.) AFFILIATE-refers to an independent union affiliated
with a federation, national union or a chartered local which
was subsequently granted independent registration but did
not disaffiliate from its federation, reported to the Regional
Office and the Bureau
6.) BARGAINING UNIT-Group of employees sharing
mutual interests within an employer unit, composed more
or less of all the employees in the employer unit.
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 19 of 75 –
7.) LABOR/INDUSTRIAL DISPUTE- Controversy over
terms and conditions of employment. Governing law is the
Labor Code for the resolution of the dispute.
8.) EXCLUSIVE BARGAINING REPRESENTATIVE-Any
legitimate labor organization duly recognized or certified as
the sole and exclusive bargaining agent of all the
employees in a bargaining unit.
CHARTERING of Mother Union to a local union
1. Issuance by Federation of charter certificate to a
local/chapter
2. copy of which shall be submitted to BLR within 30 days
from issuance
3. submit Constitution and By-Laws (CBL) and set of
officers
4. books of accounts are no longer required
5. worker’s association may likewise charter any of its
branches
AFFILIATION of Independently Registered Union
1. file with Regional Office or BLR 2 copies of verified
RESOLUTION OF AFFILIATION, ratified by a majority
of the members of the union, and a RESOLUTION OF
ACCEPTANCE of by the federation / industry union.
LOCAL/CHAPTER should submit the ff. to the BLR /
Regional Office:
1) a charter certificate (Within 30 days from issuance)
2) CBL and statement of officers
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 20 of 75 –

 books of account are no longer required shall be acquired upon the issuance of certificate of
 Legal personality of labor unions (independent, registration or certificate of creation (for chartered
chartered/local, federation) and worker’s association locals)

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

REQUIREMENTS FOR REGISTRATION
INDEPENDENT LABOR ORGANIZATION
a) Registration Fee
b) Name of the applicant union,
its principal address, names and addresses
of its officers, approximate number of
employees in the bargaining unit where it
seeks to operate, with a statement that it is
not reported as a chartered local of any
federation or national union;
c) Minutes of the organizational
meeting; list of workers who participated in
the meetings
d) Names of all its members
comprising at least 20% of all the
employees in the bargaining unit
e) Annual financial report if the
applicant has been in existence for one or
more years, unless it has not collected any
amount from the member, in which case a
statement to this effect shall be included
f) Constitution and by-laws (CBL), minutes of
its adoption and ratification, and the list of
the members who participated in it; (list of
ratifying members may be dispensed with
where the CBL was ratified or adopted
during the organizational meeting – factual
circumstance of the ratification shall be
FEDERATION / NATIONAL UNION
In addition to a, b, c, e and f of the
requirements for Independent Union:
a) Resolution of
affiliation of at least 10 LLO’s
whether independent union or
chartered locals(all duly
recognized Collective
Bargaining agents)
b) Names and addresses
of the companies where the
affiliates operate plus list all
members in each company
involved
*Labor organizations operating
within an identified industry may
also apply for registration as a
federation or national union within
the specified industry by submitting
to the Bureau the same set of
documents
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 21 of 75 –
WORKERS’ ASSOCIATION
a) Registration fee
b) Name of the applicant
association, its principal address, the
name of its officers and their respective
addresses,
c) Minutes of the organizational
meetings, and names of individual
members who attended such meetings
d) Financial reports of the
applicant association if it has been in
existence for one or more years, unless
it has not collected any amount from the
members, in which case a statement to
this effect shall be included in the
application
e) Constitution and By-laws with
names of ratifying members, the
minutes of adoption or ratification of the
CBL and the date when ratification was
made, unless ratification was done in
the meeting, in which case such fact
shall be reflected in the minutes
*Application for registration of a workers’
association operating in more than one
region shall be accompanied, in addition to
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 22 of 75 –

recorded in the meeting) the requirements in the preceding

subsection, by a resolution of membership
*all required documents shall be certified under of each member association, duly approved
oath by the Secretary or Treasurer & attested by its board of directors
by the President
*1 original copy and 2 duplicates copies of all
documents accompanying the application or
notice shall be submitted to the Regional Office
or the Bureau

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

AFFILIATION
Where (a) Report of affiliation shall be
to file filed with the Regional Office that
issued its certificate of registration
(a) Resolution of the labor
union’s board of directors
approving the affiliation
(b) minutes of the general
R membership meeting
E approving the affiliation
Q (c) total number of members
U and names of members who
I approved the affiliation
R (d) certificate of affiliation
E issued by the federation in
M favor of the independently
E registered labor union
N (e) written notice to the
T employer concerned if the
S affiliating union is the
incumbent bargaining agent
MERGER
(a) Notice of merger of the
independent labor unions, chartered
locals and workers’ association shall be
filed with the Regional Office that
issued the certificate of registration
(b) Notice of merger of
federation shall be filed and recorded
with the Bureau
(a) minutes of merger convention or
general membership meetings of all the
merging labor organizations with the list
of their respective members who
approved the same
(b) amended constitution and by-laws
and minutes of its ratification, unless
transpired in the convention, which fact
shall be indicated
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 23 of 75 –
CONSOLIDATION
(a) Notice of consolidation of the
independent labor unions, chartered locals
and workers’ association shall be filed with
the Regional Office that issued the certificate
of registration
(b) Notice of consolidation of
federation shall be filed and recorded with the
Bureau
(a) minutes of consolidation convention of all
the consolidating labor organizations, with
the list of their respective members who
approved the same
(b) amended constitution and by-laws,
minutes of its ratification transpired in the
consolidation convention or in the same
general membership meetings, which fact
shall be indicated accordingly

GROUNDS FOR CANCELLATION OF UNION
REGISTRATION
1. Misrepresentation, False Statement or Fraud in
connection with :
• adoption/ratification of the CBL or amendments
thereto, minutes of ratification and the list of
members who took part in the ratification
• election of officers, minutes thereof, list of
officers/voters
• in the preparation of the financial reports
2. Failure to Submit:
•
CBL, minutes of its adoption/ratification, list of
members who took part within 30 days from
adoption of ratification or amendments thereto
• Minutes of the elections of officers, list of
officers/voters within 30 days from election
• Annual financial report to the BLR within 30 days
after the closing of every fiscal year
• List of individual members to the BLR once a
year or whenever required by the BLR
3. Acting as labor contractor or engaging in the
'Cabo System' or otherwise engaging in any
activity prohibited by law
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 24 of 75 –
4. Entering into CBAs with terms and conditions of
employment below minimum standards
established by law
5. Asking for or accepting attorney's fees or
negotiation fees from employer
6. Checking off special assessments or any other
fees without duly signed individual written
authorizations of the members (other than for
mandatory activities under the Labor Code)
1) GROUNDS FOR CANCELLATION OF UNION
REGISTRATION Complaint or petition shall be filed
in the Regional Office that issued the certificate of
registration or certificate of creation of chartered local
2) Complaints involving federations, national
unions, its officers or member organizations shall be
filed with the Bureau
3) Regional Director resolves the petition. He
may appoint a hearing officer from the Labor Relations
Division
4) Case shall be raffled
5) Complaint or petition shall be transmitted to
the Hearing officer who shall prepare the notice for
preliminary conference and cause the service thereof;
the preliminary conference shall be scheduled within
10 days from receipt of the complaint or petition
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

6) Within 3 days from receipt of the complaint or
petition, the hearing officer shall cause the service of
summons upon the respondents directing them to file
answer or comment and to appear before the hearing
officer in the preliminary conference
7) Hearing officer shall conduct the conference
within 10 days from receipt of the petition
8) If parties agree to settle amicably, the
agreement shall be specified in the minutes and a
decision shall be issued within 5 days from the date of
mandatory conference
9) If no amicable settlement is reached, the
Hearing officer shall proceed with the hearing
10) The hearing shall be limited to clarificatory
questions and must be completed within 25 days from
the date of the preliminary conference
11) Complaint shall be submitted for decision
after the date of the last hearing or upon expiration of
25 days
12) The hearing officer shall have 20 days from the
date of the last hearing to decide the complaint or
petition
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 25 of 75 –
13) The notice of decision shall be signed by the
hearing officer and shall be released to the parties
personally within 20 days from the date of last hearing
14) The decision of the regional director may be
appealed to the Bureau while the decision of the
Bureau director may be appealed to the Secretary of
Labor
15) Memorandum of appeal shall be filed in the
Regional Office where the complaint originated
16) Where no appeal is filed within the 10-day
period, the decision shall become final
17) The decision of the Bureau or the Secretary
shall become final after 10 days from receipt of the
parties unless a motion for its reconsideration is filed
within the same period
18) Only 1 motion for reconsideration is allowed
PROCEDURE IN CANCELLATION OF REGISTRATION DUE
TO NON-COMPLIANCE WITH THE REPORTORIAL
REQUIREMENTS
1) The labor relations division of the Regional Office shall
make a report of non-compliance and submit it to the
Bureau for verification
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 26 of 75 –

2) The bureau shall notify the labor org to comply with c) Labor org has not responded to any of the
the requirements and submit proof within 10 days from notices sent by bureau or its notices were returned
receipt unclaimed
3) If no response was received within thirty 30 days from RIGHTS AND CONDITIONS OF MEMBERSHIP
the release of the first notice, another notice for A. POLITICAL RIGHTS
compliance shall be made by the bureau with a warning
that failure to comply shall cause the continuation of the 1. OFFICERS DIRECTLY ELECTED by secret
proceedings for the cancellation of its registration ballot at intervals of 5 years
4) Where no response is again received within 30 days 2. No qualification requirement for candidacy to
from release of the 2nd notice, the Bureau shall cause the any position OTHER THAN MEMBERSHIP IN GOOD
publication of the notice of cancellation of registration STANDING
of the labor organization in 2 newspapers of general
circulation 3. NO PERSON CONVICTED OF CRIME
INVOLVING MORAL TURPITUDE shall be eligible to
5) Where no response is received within 30 days from be an officer of union
date of publication or where the Bureau has verified the
dissolution of the labor org, it shall order the cancellation 4. Officers shall NOT BE PAID ANY
of the registration of the org COMPENSATION other than salaries and expenses
due to their positions as authorized by CBL or written
6) No registration shall be cancelled by the bureau resolution of majority
UNLESS:
a) Non-compliance is for a continuous period of 5
B. DELIBERATIVE
RIGHTS
& DECISION MAKING

years;
1. Determination by secret ballot, any question of
b) Procedures were complied with; and major policy
2. No admission of individuals who are members
of subversive organizations

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

C. RIGHTS OVER MONEY MATTERS
1. No arbitrary, excessive oppressive fines and
forfeiture
2. No collection of fees, dues NOR disbursements
unless duly authorized pursuant to CBL
3. All payment of fees, dues, contributions evidenced
by receipt and entered into records
4. Funds shall not be applied for any purpose other
than expressly provided in CBL or authorized by
majority of members at general meeting
5. No special assessment or other extraordinary fees
may be levied unless authorized by written resolution
of majority
6. Other than mandatory activities, no special
assessment, atty.'s fees, negotiation fees or any other
extraordinary fees may be checked from any amount
due to an employee without individual written
authorization
Requisites for VALID LEVY OF A SPECIAL ASSESSMENT
through CHECK OFF:
1. authorization by a written resolution of
majority of all the members at the general
membership meeting called for the purpose
2. secretary’s record of the minutes of the
meeting
3. individual written authorization
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 27 of 75 –
From what fund can union check off its attorney’s fees?
THE UNION should be made to shoulder the expenses
incurred for the services of its lawyers and accordingly,
reimbursement should be charged to the union’s general fund
or account. No deduction can be made from the salaries of
the concerned employees other than those mandated by law.
D. RIGHT TO BE INFORMED
1. Full and detailed report of all financial
transactions
2. All income and revenue evidenced by a
record and every expenditure evidenced by a receipt
3. Treasurer and Officers render a true and
correct account of all moneys received and paid:
• Since assuming office
• Since last accounting
• At least once a year w/ in 30 days from close of
fiscal year
• Other times as required by written resolution of
majority
4. Books of account and financial records open to
inspection by officer/member during office hours
5. Duty of labor organization to inform
members of contents of CBL, CBA and their rights and
obligations under existing labor laws
PROTEST ON ELECTION OF OFFICERS
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 28 of 75 –

• Formalized before Med Arbiter within 5 days from close of

Election Proceedings
• Decided within 20 working days Requirement for a complaint for Violation of by-laws and
rights and conditions of membership:
INTRA-UNION DISPUTES
General Rule: Relief must first be sought within the union Rule: Minimum of 30% of the members of the Labor
itself in accordance with its CBL, which must be alleged in the Organization
petition
Except: when such violation directly affects only 1 or 2
Exceptions : (FAIL-U) members, then such number would be enough to report the
violation and seek redress with the CIR
1. Futility of intra-union remedies

2. Action for damages

Note: Other related labor relations disputes shall include any
conflict between a labor union and the employer or any
3. Action of the administrative agency is
individual, entity or group that is not a labor organization or
worker’s association. This includes:
patently illegal, arbitrary and oppressive (1) cancellation of registration of unions and
4. Administrative agency has already workers associations; and
(2) (2) a petition for interpleader.
prejudged the case
5. Administrative agency was practically given VISITORIAL POWER
opportunity to act on the case but did not Who: DOLE Sec or duly authorized representative
Re: Inquire into Financial Activities of LLO
6. Improper expulsion procedures Cause: Complaint under oath supported by the written consent
at least 20%of LLO's total membership
7. Issue involved is purely a question of law Prohibited:
1. 60-day freedom period
8. Lack of jurisdiction of the investigating body 2. within 30 days immediately preceding election of
9. Undue delay as to constitute substantial
union officers

injustice DISAFFILIATION

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

General Rule: Only during the 60 day freedom period
& effected by a majority of the members of the bargaining unit
Exception : Outside the freedom period but must still be
supported by a majority of the members of the disaffiliating
union who must remain bound by the CBA until the CBA's
expiration date.
Substitutionary Doctrine
 employees cannot revoke the validity of a validly
executed CBA with their employer by the simple
expedient of changing their collective bargaining agent
 the new agent must respect the subsisting CBA
 employer cannot renege on the CBA, except to
negotiate with the management for the shortening
thereof
 INAPPLICABLE to personal undertaking of deposed
union; e.g.: no strike stipulation
• The BLR is the central registry of legitimate labor
organizations, as well as collective bargaining and
other related agreements, records of dispute
settlements, and copies of orders and decisions of
labor arbiters.
• A local/independent union maintains its separate
personality despite affiliation with a national
union/federation. The federation acts for and in behalf
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 29 of 75 –
of its affiliates, and thus has the status of an agent in
relation to the local union, which is its principal. Hence,
an independent union that affiliates with a federation
becomes a local member of the federation.
• A local union has the right to disaffiliate from its mother
federation, in the absence of enforceable provisions in
the federation’s constitution preventing disaffiliation.
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
(FUC2S-OA)
1) Furnished with the annual audit financial
statements of employer
2) Undertake all other activities designed to benefit
the organization and its members, including cooperative,
housing welfare and other projects not contrary to law
3) Certified as the exclusive bargaining representative
of all employees in an appropriate collective unit for
purposes of collective bargaining
4) Collect reasonable membership fees, union dues,
assessments and fines and other contributions
5) Sue and be sued in its registered name
6) Own property (real/personal) for the use and
benefit of its members and the labor organization
7) Act as the representative of its members for the
purpose of collective bargaining
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

UNION SECURITY CLAUSE
• union can determine membership and prescribe
conditions for its acquisition and retention
• cannot be used by union officials against an employer,
much less their own members except with a high sense
of responsibility, fairness and judiciousness
• OBJECTIVE: To assure continued existence of the
union
CLOSED SHOP - only union members can be hired
and workers must remain union Workers/members to
retain employment
UNION SHOP - non-members may be hired, but to
retain employment, must become union
members within a certain period thereafter
MODIFIED UNION SHOP - employees who are not
union members at the time of the signing of the
contract need not join the union, but all workers hired
thereafter should join
MAINTENANCE OF MEMBERSHIP - no employee is
compelled to join the union, but all present or future
members must, as a condition of employment, remain
in good standing with the union
EXCLUSIVE BARGAINING SHOP - the union is
recognized as the exclusive bargaining agent for
all employees, whether union members or not
BARGAINING FOR MEMBERS ONLY - the union is
recognized as the bargaining agent only for its own
members
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 30 of 75 –
AGENCY SHOP - an agreement whereby employees
must either join the union or pay to the union as the
exclusive bargaining agent a sum equal to that paid by
the members. This is directed against the "free rider"
employees who benefit from union activities without
contributing to union support o prevent a situation of
non-union members enriching themselves at the
expense of union members.
PREFERENTIAL SHOP - agreement wherein
management undertakes to give preference to union
members in the hiring of employees, whether or not as
regulars
HIRING HALL - agreement wherein lost of employees
are given a chance to determine who to
employ/regularize
COVERAGE:
General Rule: All employees in the bargaining unit covered by
the union security clause are subject to its terms
Exceptions:
Any employee who at the time the agreement takes effect is
a bona fide member of a religious organization which
prohibits its members from joining labor unions on
religious grounds
Employees already in the service and already members of
a labor union or unions other than the majority union
at the time the agreement took effect
Supervisors ineligible under the Act to join the majority
union because of the membership therein of employees
under their supervision
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

Employees excluded from the agreement by express
terms
UNFAIR LABOR PRACTICES
Acts opposed to workers' right to organize
2 Elements:
1. EER between the offender and offended
2. Act done is expressly defined in the Labor Code as ULP
REMEDIES:
1. Civil Aspects
- Labor Arbiter who shall resolve within 30
calendar days from submission for decision
- recovery of civil liability in the
administrative proceedings shall bar recovery under
the Civil Code
- substantial evidence enough
2. Criminal Aspects
- Must be proved independently from
labor case
- Prosecution not possible until after
finality of judgment in the labor case
- Admin/civil judgment not evidence of
ULP insofar as the criminal case is concerned
- During the pendency of admin
proceeding, the running of prescription of criminal
offense shall be interrupted
ULP OF EMPLOYERS
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 31 of 75 –
1. INTERFERENCE, RESTRAINT OR COERCION in
their exercise of the right to self-organization;
• tendency to interfere is enough; actual interference
need not be proved. [Insular Life case]
• no excuse that conduct was unintentional and
innocent; However, good faith can be a defense by the
employer
Totality of Conduct Doctrine: culpability of employer's
remarks were to be evaluated no only on the basis of their
implicit implications, but were to be appraised against the
background of and in conjunction with collateral
circumstances (history of employer's labor relations + anti-
union bias)
Doctrine of Successor-Employer: new company will be
treated as a continuation or successor of the one that
closed in the new or take-over company is engaging in the
same business as the closed company or department, or is
owned by the same people, and the "closure" is calculated
to defeat the worker's organizational right in which case
the closure may be declared a subterfuge
Factors to Determine Continuity:
1. Retention of CONTROL
2. Use of the SAME PLANT OR FACTORY
3. Use of the SAME OR SUBSTANTIALLY THE
SAME EMPLOYEES, workers, supervisors or
managers
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

4. Similar or substantially the same work or production
under SIMILAR OR SUBSTANTIALLY THE SAME
WORKING CONDITIONS
5. Use of the SAME MACHINERY AND EQUIPMENT
6. Manufacture of the SAME PRODUCTS or the
performance of the same services
2. YELLOW DOG CONTRACT - contract whereby an
employee agrees that during the period of his employment
he will not become a member of a labor union
3. CONTRACTING OUT - services or functions being
performed by union members
• determining factor: motivation
• Runaway Shop: industrial plant moved by its
owners from one location to another to escape union
labor regulations or state laws; a plant removed to a
new location in order to discriminate against
employees at the old plant because of their union
activities
RELIEF IN ULP CASES - not subject to compromise
4. DISCRIMINATION (wages, hours of work, other
terms & conditions of employment)
Purpose: to encourage /discourage membership in any
labor org
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 32 of 75 –
5. INDIRECT DISCRIMINATION against someone
who has filed charges or for having given or about to give
testimony against the employer under the Labor Code
6. VIOLATION OF DUTY TO BARGAIN
7. PAY NEGOTIATION OR ATTORNEY'S FEES TO
THE UNION OR ITS OFFICERS or agents as part of the
settlement of any issue in collective bargaining or any
other dispute.
8. VIOLATION OF THE CBA
Flagrant & malicious refusal to comply with the
economic conditions or provisions thereof
9. INITIATES, DOMINATES, ASSISTS OTHERWISE
INTERFERES WITH THE FORMATION OR
ADMINISTRATION of any labor organization including the
giving of financial or other support to its organizers or
officers
1. Cease and desist order where :
• Restrained conduct was an issue in the case
• There was a finding of fact on said misconduct
• Finding of fact supported by evidence
2. Reinstatement, Payment of Backwages
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

3. Disestablishment - withdrew all recognition from the
dominated labor union
4. Order to bargain
ULP must be overt acts. The objective standard to determine
ULP is if the act has a REASONABLE TENDENCY to interfere
with the right to self-organization, while the subjective element
is the EMPLOYER’S MOTIVE behind the acts. The acts in
question can be one act or a whole series of acts.
Even if there is no existing union, ULP can still be
committed, as the Labor Code contemplates the right to
FORM a union as one of the rights that may be violated by
ULP.
ULP OF LABOR ORGANIZATIONS
1. RESTRAINT, INTERFERENCE OR COERCION in their
exercise of the right to self-organization
Mere tendency to interfere is enough
2. CAUSES EMPLOYER TO DISCRIMINATE BETWEEN
UNION AND NON-UNION members or members of
another union
3. VIOLATION OF DUTY OR REFUSAL TO BARGAIN
COLLECTIVELY
4. FEATHERBEDDING: employee practices which create or
spread employment by unnecessarily maintaining or
increasing the number of employees used or the amount of
time consumed to work on a particular job
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 33 of 75 –
5. SWEETHEART CONTRACT - Accept/ask for negotiation or
attorney's fees from employers as part of the settlement of
any issue in collective bargaining or any other dispute
6. GROSS VIOLATION OF CBA (if not gross, not ULP)
Flagrant & malicious refusal to comply with the
economic conditions or provisions thereof
DUTY TO BARGAIN COLLECTIVELY:
Participation of Workers in Policy and Decision Making
Workers shall have the right subject to such rules and
regulations as the SOLE may promulgate, to participate in
policy & decision making processes of the establishment
where they are employed insofar as said processes will
directly affect their rights, benefits, and welfare pursuant to
this, Labor-Management Councils may be formed.
Elements:
1.) MEET AND CONVENE-Labor must initiate
by submitting a proposal in the form of a draft CBA.
2.) PROMPTLY AND EXPEDITIOUSLY IN
GOOD FAITH-All options in arriving at a CBA must first
be exhausted (bargain until impasse).
3.) TO NEGOTIATE-Proposals and counter
proposals ONLY on the mandatory topics for CBA
negotiations (terms and conditions of employment, and
grievance adjustment/resolution).
Bargaining unit
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

• group of employees sharing mutual interest within a
given employer unit, comprised of all or less than
all of the entire body of employees in the employer
unit or any specific occupational or geographical
grouping within such employer unit
Factors to be considered in determining the appropriate
bargaining unit:
1. will of employees;
2. affinity and unity of employees’
interests, such as substantial similarity of work and
duties or similarity of compensation and working
conditions;
3. prior collective bargaining history;
4. employment status, such as
temporary, seasonal, and probationary employees
In any case, the basic test of a bargaining unit’s acceptability
is whether or not it is fundamentally the combination which will
best assure to all employees the exercise of their collective
bargaining rights.
Exclusive Bargaining Representative
• legitimate labor union duly recognized or certified
as the sole and exclusive bargaining representative
or agent of all the employees in the bargaining unit
• despite having an EBR, an individual employee or
group of employees shall have the right at anytime
to present grievances to their employers
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 34 of 75 –
SELECTION OF BARGAINING REPRESENTATIVE:
1. VOLUNTARY RECOGNITION – process by which a
legitimate labor union is recognized by the employer as the
exclusive bargaining representative or agent in a bargaining
unit
IN UNORGANIZED ESTABLISHMENTS with only one
legitimate labor organization, the employer may voluntarily
recognize the representation status of a union.
Within 30 days from recognition, the employer and union
shall submit a notice of voluntary recognition with the
Regional Office which issued the recognized labor union’s
certificate of registration or certificate of creation of a
chartered local, notice shall be accompanied with 1 original
and 2 copies of the following:
a) Joint statement under oath of voluntary recognition
b) Certificate of posting of the joint statement for 15
consecutive days in at least 2 conspicuous places
in the establishment or bargaining unit where the
union seeks to operate
c) Approximate number of employees in the
bargaining unit, accompanied by the names of
those who support the voluntary recognition
comprising at least a majority of the members of
the bargaining unit; and
d) Statement that the labor union is the only LLO
operating within the bargaining unit
NOTE: If a union asks the employer to voluntarily recognize it
as the bargaining agent of the employees, it in effect asks the
employer to certify it as the bargaining representative—a
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan

certification which the employer has no authority to give. It is
the employees’ prerogative, not the employer’s, to determine
whether they want a union to represent them, and if so, which
one it should be (Samahan ng Manggagawa sa Permex v
Sec.of Labor, 286 SCRA 692).
2. CONSENT ELECTION – process of determining through
secret ballot, voluntarily agreed upon by the parties, the sole
and exclusive representative of the employees in an
appropriate bargaining unit for purposes of collective
bargaining or negotiation
1. Where a petition for CE had been filed and, upon the
intercession of the Med-Arbiter, the parties agree to
hold a consent election, the results thereof shall
constitute a bar to the holding of a CE for one year
from the holding of such consent election
2. Where an appeal has been filed from the results of the
consent election, the running of the one-year period
shall be suspended until the decision on appeal has
become final and executory
3. Where no PCE had been filed but the parties have
agreed to hold a consent election with the intercession
of the Regional Office, the results thereof shall
constitute a bar to another PCE
3. CERTIFICATION ELECTION - process of determining,
through secret ballot, the sole and exclusive bargaining unit
for purposes of collective bargaining
• Requirement for valid election: majority of all eligible
voters cast their votes
ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER
- page 35 of 75 –
• Union to be certified: labor union receiving majority of
the valid votes cast
What is an Organized Establishment?
An enterprise where there is a recognized or certified
exclusive bargaining agent
Determination of organized establishment status should be at
the bargaining unit level. Hence, an establishment may be
considered organized insofar as the R & F unit is concerned
but not organized insofar as the supervisory unit is concerned.
Representation Officer - person duly authorized to conduct
and supervise certification Elections
4. RUN-OFF ELECTION (within 10 calendar days from close
of election)
• 3 or more choices in the Certification Election
• results of election: NO CHOICE received majority of
valid votes cast
• total # of votes for all contending unions at least 50% of
total votes cast
THUS: conducted between labor unions receiving the 2
highest number of votes
The presumption is that there is a valid election, i.e. majority of
eligible voters voted.
Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
 ATENEO CENTRAL BAR OPERATIONS 2006
Labor Law
SUMMER REVIEWER

- page 36 of 75 –

PETITION FOR CERTIFICATION ELECTION

ORGANIZED ESTABLISHMENT UNORGANIZED ESTABLISHMENT (NO CBA)

What Verified petition for questioning the majority status of the Verified petition
incumbent bargaining agent
Who LLO or employer when requested to bargain collectively LLO or employer when requested to bargain
files collectively
When (a)With CBA – within the 60 day freedom period before the Anytime, except:
filed expiration of the CBA (a) Within 1 yr from date of a valid
(b) Without CBA – anytime except when barred by
certification election
(b)
certification year rule, deadlock bar rule, or negotiations
bar rule
With DOLE (Regional Office) Regional Office which issued the certificate of
whom registration of the LLO
filed
Requis (a) Written consent of at least 25% of all (a) No 25% requirement
ite employees in the bargaining unit What is an unorganized establishment?
 Labor Code: 25% not a requisite but makes An establishment is considered unorganized when a
conduct of CE mandatory if submitted group of employees qualified to form a union are not
 IRR: 25% is a requisite, absence of such is a properly represented by a union, regardless of the
ground for dismissal of the petition existence of other unions representing other groups
of employees. E.g. if a company has a supervisors’
 Even if 25% is not achieved, if med arbiter feels union but no rank and file union, it is considered
there is a representation achievement, Med Arbiter may still unorganized
order conduct of CE [California Manufacturing v Laguesma
209 SCRA 606 (1992)]

Adviser: Atty. Marlon J. Manuel; Head: Eeza Ramos; Understudy: Ryan Quan
PROCEDURE:
Secretary decides; the
Petition Decide File decision is final and
with d w/in appeal executory; not subject to
Med 20 with Motion for
Arbiter days Regional Reconsideration
Office
but it is if PCE denied, party Regional
Sec. who can file a Director Party
decides memorandum of given 15 days to decide;
transmits decision is final and
appeal to Reg. Dir. MOA to period to
reply to unappealable if
Secretary petition is granted in
the
appeal an unorganized
establishment;
CONDUCT OF CERTIFICATION ELECTION
1. NOTICE of at least 10 working days before actual date
(2 most conspicuous places)
Notice shall include:
1. date and time of election
2. names of all contending unions
3. description of bargaining unit
4. list of eligible and challenged voters
2. ELECTION PROPER
• Any party in interest may protest to be recorded in the
minutes, `otherwise, it is deemed waived; thereafter
protests must be formalized with Med-Arbiter within 5
days from close of election proceedings
• Within 24 hours from final canvass of votes, there being
a valid election, the Election officer shall transmit the
records to the Med Arbiter, who shall within the same
period from receipt of the minutes and results of election,
issue an order proclaiming the results, when:
1. No protest was filed or, even if one was filed, the
same was not perfected within the 5 day period for
perfection of the protest
2. No challenge or eligibility issue was raised or even if
one was raised, the resolution of the same will not
materially change the results of the elections
• All employees in bargaining unit can vote
• CHALLENGE: before employees cast vote
• Abstention is not a valid vote
4 BARS to holding a Certification Election:
1) ONE YEAR BAR (certification year)
• Within 1 yr. from issuance of a final certification election
result, voluntary recognition or a valid certification,
consent or run-off election and no appeal on the results
of the certification consent or run-off election is pending;
if there is an appeal the running of the 1-year period shall
be suspended
Exception: unusual circumstances exist as when a change in
the structure of the membership of the contracting union
occurs in such a way that a reasonable doubt arises as to
whether it remains the labor union which the employees
desired to represent them in the first place with an
accompanying change in the officials, constitution, by-laws,
and bargaining authority of the contracting union.
Even if there is no winner in an election (no union received
majority of valid votes cast) or the “no union” choice won, the
election, as long as it is valid (majority of eligible voters voted)
will be a bar for 1 year.
2) DEADLOCK BAR
• during the existence of a bargaining deadlock to which an
incumbent or certified bargaining agent is a party and
which had been submitted to conciliation or arbitration or
had become the subject of a valid notice of strike or lock-
out
3) CONTRACT BAR
• during the existence of CBA; CBA need not be certified,
need only to be registered under Art. 231
• Applies as well after the lapse of the 60 day freedom
period when old CBA is extended until a new one is signed
Exception: within the freedom period
4) NEGOTIATIONS BAR
• when the duly certified union has commenced and
sustained negotiation in good faith with the employer
 in accordance with Article 250 of the Labor Code • Med-Arbiter releases the decision whether to grant the
within the one year period after a certification year PCE personally to the parties on an agreed date and time

* REFUSAL TO BARGAIN BAR • If PCE is granted in unorganized establishments –

• Since law proscribes conduct of CE when there is a decision is UNAPPEALABLE – remedy for party
bargaining deadlock submitted to conciliation or arbitration, contesting the decision: protest on the conduct and results
with more reason should it not be conducted if, despite of the certification election
attempts to bring an employer to the negotiation table by
the certified bargaining agent, there was “no reasonable • If PCE is denied, party can file a Memorandum of Appeal
effort in good faith” on the part of the employer to bargain (MOA) to Regional Director –> MOA stays the holding of
collectively. [Capitol Medical Center v. Laguesma 267 any certification election–> Regional Director transmits
SCRA 503 (1997)] MOA and other records to the Office of the Secretary –>
period to reply to the appeal given to the party in the
DENIAL OF CE petition –> Secretary decides –> and the decision is final
Grounds for denial of petition for certification election and executory; not subject to Motion for
 Petitioning union is not a LLO Reconsideration
o Either not listed as a LLO or
o Legal personality has been revoked or Registration of CBA
cancelled
 Petition filed violates any of the Bars to Certification What to file 2 duly signed copies of the CBA
Election When to file Within 30 days from execution of a
 Petitioning Union in an organized establishment, CBA
fails to submit the 25% support requirement for the Who will file Parties to the CBA
filing of the petition for certification election Where to file • Regional Office which issued
the certificate of
NOTE: Any question pertaining to the validity of petitioning registration/certificate of creation
union’s certificate of registration or its legal personality as a of chartered local of the labor
LLO, or validity of registration and execution of CBA, shall be union-party to the agreement
heard and resolved by the Regional Director in an • If certificate was issued by
INDEPENDENT PETITION FOR CANCELLATION of its BLR, CBA shall be filed with the
registration NOT BY THE MED-ARBITER IN THE PETITION Regional Office which has
FOR CERTIFICATION ELECTION, except if the union or and jurisdiction over the place where it
existing CBA is unregistered with DOLE principally resides
• Multi-employer bargaining
APPEAL FOR THE PETITION FOR CE agreements shall be filed with the
 BLR
Requirements for Application for CBA registration shall
registration be accompanied by the original and 2
copies of the following documents:
(1) CBA
(2) Statement that the CBA was
posted in a least 2
conspicuous places in the
establishment(s) concerned
for at least 5 days before its
ratification
(3) Statement that the CBA was
ratified by the majority of the
employees in the bargaining
unit of the employer(s)
concerned
Documents must be certified under
oath by the representative(s) of the
employer(s) and the labor union(s)
concerned
TERM OF CBA
As to the representation aspect, 5 YEARS
Renegotiation of provisions other than representation aspect,
NOT LATER THAN 3 YEARS AFTER ITS EXECUTION
COLLECTIVE BARGAINING
• Parties shall, at the request of either of them, make
available such up-to-date financial info on the economic
situation, which is normally submitted to relevant gov’t.
agency
• If the disclosure could be prejudicial, the information would
be regarded as confidential
• In a single enterprise bargaining, a recognized or certified
labor union that desires to negotiate shall submit such
intention in writing to the employer together with proposals
• Multi-employer bargaining: LLO(s) and employers may
agree to come together for collective bargaining, provided:
 only LLO(s) who are incumbent exclusive bargaining
agents may participate and negotiate
 only employers with counterpart LLO who are
incumbent exclusive bargaining agents may participate
and negotiate
 only LLO(s) who pertain to employer units who consent
to multi-employer bargaining may participate
Procedure in Multi-employer bargaining:
1. May be initiated by LLO or employers
2. LLO shall execute a written agreement among
themselves, which shall contain:
a. Names of the labor unions who desire to avail
b. Each labor union in the employer unit
c. Fact that each of the labor unions are the
incumbent exclusive bargaining agent for their
respective employer units
d. Duration of the CBA, if any, entered into by each
labor union with their respective employers
3. LLO who desire to bargain with multi-employers
shall send a written notice to this effect to each
employer concerned
4. Employers who agree to group themselves or use
their existing associations shall send a written notice
to LLO’s indicating their desire to engage in multi-
employer bargaining, which notice shall indicate:
 a. Names of employers
b. Corresponding LLO(s)
c. Fact that each LLO is any incumbent exclusive
bargaining agent
d. Duration of the current CBA if any
Bargaining Negotiations:
Request to Bargain by union => Counter-Proposal w/in 10 cal
days or reasonable period of time
NOTE: There is nothing that says the arbitral awards or
renewals of CBA’s shall always have retroactive effect.
Meralco v. Secretary of Labor, (February 2000)
Court issued the resolution here that: where an arbitral
award is granted beyond 6 months after the expiration of the
existing CBA, and there is no agreement between the parties
as to the date of effectivity thereof, the arbitral award shall
retroact to the first day after the 6-month period following the
expiration of the last day of the CBA.
Manila Electric Company v. Secretary of Labor G.R. No.
127598, August 1, 2000).
In resolving the motions for reconsideration in this case,
the Court took into consideration the fact that petitioner
belongs to an industry imbued with public interest and cannot
ignore the enormous cost in case of full retroaction of the
arbitral award. Balancing this with the interests of social
justice; the arbitral award in this case would retroact to the first
day after the 6-month period following the expiration of the last
day of the CBA. Parenthetically, during the period between
the expiration of the economic provisions and the date of
effectivity of the arbitral award, the hold-over principle shall
govern.
STRIKES, LOCKOUTS AND CONCERTED ACTIONS
DEFINITIONS:
1. STRIKE - any temporary stoppage of work by concerted
action of employees as a result of an industrial labor
dispute (mass resignation is not a strike, as the latter
contemplates a TEMPORARY stoppage of work.)
2. LOCKOUT - temporary refusal of an employer to
furnish work as a result of an industrial or labor dispute
3. INTRA UNION DISPUTE -
includes all disputes or grievances arising from any
violation of or disagreement over any provision of the
constitution and by-laws of a union, including any violation
of the rights and conditions of union member ship provided
for in this Code
4. STRIKE BREAKER - any
person who obstructs, impedes, or interferes with by force,
violence, coercion, threats, or intimidation, any peaceful
picketing by employees during any labor controversy
affecting wages, hours, and conditions of work or in the
exercise of the right of self-organization or collective
bargaining
5. STRIKE AREA - establishment,
warehouses, depots, plants or offices, including the sites
or premises used as run-away shops of the employer
struck against as well as the immediate
vicinity actually used by picketing strikers in moving to and
fro before all points of entrance to and exit from said
establishment
VALID PURPOSE FOR CONCERTED ACTIVITIES
1. collective bargaining
2. mutual benefit and protection
GROUNDS FOR STRIKES AND LOCKOUTS :
1. Deadlock in CBA negotiations [after reasonable efforts]
2. ULP [good faith of the strikers, supported by rational
evidence as to the existence of ULP is sufficient,
depending on circumstances]
Violations of CBA that are NOT FLAGRANT AND/OR
MALICIOUS refusal to comply with economic provisions are
not ULP; thus, not strikeable.
1. PERSONALITY LLO or recognized bargaining agent
2. NOTICE OF STRIKE
in case of economic strike
Cooling off period
Bargaining deadlocks: 30 days
ULP : 15 days
 Dispensed with if duly elected
officer of union is dismissed
such as to constitute union
busting
 Duty of DOLE to exert all efforts
at mediation and conciliation to
effect a voluntary settlement
 30 day/15 day cooling off period
mandatory
except : cases of union-busting
 7-day strike ban mandatory
2. STRIKE VOTE: Decision must be approved by a
majority of the total union
membership in the bargaining unit
concerned obtained by secret
ballots in meetings or referenda
called for that purpose (or of the
BoD of the corp. case of a lockout
3. REPORT OF STRIKE DOLE must be furnished with the
VOTE RESULTS: results of the voting at least 7 days
before the intended strike or lockout
subject to the cooling off period (7
day strike ban)
DOLE informed of meeting 24 hours
before
ASSUMPTION OF JURISDICTION BY SECRETARY OF
LABOR UNDER ART 263(G) (resolved within 30 calendar
days)
1. Discretionary
• In his opinion there exists a labor dispute causing or likely
to cause a strike or lockout in an INDUSTRY
INDISPENSABLE TO THE NATIONAL INTEREST
• may certify the same to the commission for
COMPULSORY ARBITRATION
• Effect: AUTOMATICALLY ENJOINS the intended on
impending strike or lockout but if one has already taken
place, all striking or locked out employees SHALL
IMMEDIATELY RETURN TO WORK and the employer
shall immediately resume operations and re-admit all
workers under the same terms and conditions prevailing
before the strike or lock-out
2. Mandatory: (within 24 hours)
• In labor disputes adversely affecting the continued
operation of HOSPITALS, CLINICS, OR MEDICAL
INSTITUTIONS
 • Duty of striking union or locking out employer to provide
and maintain an effective SKELETAL WORKFORCE of
medical and other health personnel, where movement and
service shall be unhampered and unrestricted as are
necessary to insure the proper and adequate protection of
the life and health of its patients most especially
emergency cases for the duration of the strike or lock-out
POWER OF THE PRESIDENT UNDER ART 263(G):
1. may determine the industries, which are in his opinion
indispensable to national interest
2. may intervene at any time and assume jurisdiction over any
such labor dispute in order to settler or terminate the same
Decision of the President, Secretary of labor, NLRC is final
and executory after receipt thereof by the parties.
How can the SOLE take cognizance of an ISSUE which is
merely incidental to the dispute (not a mandatory issue)?
Before the SOLE may take cognizance of an issue which is
merely INCIDENTAL to the labor dispute, the same must be
involved in the labor dispute itself, or otherwise submitted to
him for resolution. [St. Scholastica’s College v. Torres 210
SCRA 565 (1992)]
PROHIBITED ACTIVITIES in STRIKES and LOCK-OUTS
1) strike or lock-out without first having bargained
collectively strike or lock-out without the necessary
notice being filed with the DOLE
2) strike or lock-out without the necessary vote first
having been obtained and reported to the DOLE
3) strike or lock-out after DOLE has assumed
jurisdiction or the President or after certification
or submission of dispute to the compulsory
arbitration/voluntary arbitration or during the
pendency of cases involving the same grounds for
the strike or lockout
4) knowingly participating in illegal strike or
knowingly participates in the commission of illegal
acts during a strike  ground for termination of
employment
5) obstruct, impede, or interfere with by force,
violence, coercion, threats, or intimidation any
peaceful picketing by employees during any labor
controversy or shall abeit or aid such obstruction or
interference
6) employment or use of any strikebreaker/ employed
as a strike breaker
7) bringing in, introducing, or escorting by any public
officer or employee, including officers and personnel
of the AFP or PNP, or any armed person in any
manner of any individual who seeks to replace
strikers in entering or leaving the premises of a
strike area or work in place of strikers
8) commit any act of violence, coercion or
intimidation while engaged in picketing or obstruct
the ingress or egress from the employer's premises
for lawful purposes or obstruct public thoroughfares
(must be pervasive and widespread/consistently
and deliberately resorted to as a matter of policy)
 *See Sec. 7 (g) of D.O. 10; now Sec. 6 (e) of DO 18
regarding prohibition on contracting out a job, work or
service directly related to the business or operation of
the principal by reason of a strike or lockout whether
actual or imminent.
NOTE: If violence is only in small scale, strike is still valid and
only perpetrators are accountable; if violence is in large scale,
the strike is rendered illegal.
EFFECTS OF ILLEGAL STRIKE
The following may be deemed to have lost employment status:
- Union officer who knowingly participates in an illegal strike
- Member who participaates in the commission of illegal acts
Members of a union cannot be held responsible for an illegal
strike on the sole basis of such membership or even on
account of their affirmative vote authorizing the same.
A lawful strike may become illegal if violence, coercion, or
blocking of ingress and egress routes are resorted to.
GR: During strike: No work, no pay
Exceptions:
1. there is a return to work order and employer does not
accept them; strike continues
2. ULP due to union discrimination, termination of ees,
discriminated employees discharged – should be paid
Defiance of a return to work order is a ground for dismissal.
IMPROVED OFFER BALLOTING - Referendum by secret
ballot involving union members on the improved offer of the
employer on or before the 30th day of a strike
 where at least a majority of the union members/BOD,
trustees, or the partners holding the controlling interest
vote and accept the improved/reduced offer, the workers
shall immediately return to work and the employer shall
thereupon readmit them upon the signing of the agreement
REQUIREMENT FOR ARREST, DETENTION OF UNION
MEMBERS/ORGANIZERS FOR UNION ACTIVITIES
GR: previous consultations with the SOLE
Exceptions: grounds of national security and public peace
in case of commission of a crime
GUIDELINES FOR THE CONDUCT OF THE INP/AFP
PERSONNEL DURING STRIKES/LOCKOUT AND LABOR
DISPUTES IN GENERAL**
Involvement limited to the:
a. maintenance of peace and order
b. enforcement of laws and legal order of duly constituted
authorities
c. performance of special functions as may be provided by law
1) Elements of the Police Force should first be called upon to
render assistance
2) When it is unavailable or inadequate, CAPCOM or
METRODISCOM may call upon the Constabulary to render
assistance
3) Personnel from the army, Navy, or Air Force only when
directed by the President or personally by the Secretary of
National Defense upon consultation with the Secretary of
Labor and Employment or when requested by the latter.
Personnel related by affinity or consanguinity within the 4th civil
degree to any official/leader of the parties in the controversy or
has any financial or pecuniary interest therein - not allowed to
render services in connection with a strike or lock-out
PEACE-KEEPING DETAIL
• personnel detailed shall be in uniform, with proper
namecloth at all times, personnel shall observe strict
neutrality in his dealings with both parties to the
controversy
• stationed such that their presence may deter
commission of criminal acts from either side
• maintain themselves outside a 50 meter radius
from the picket line except if the 50 meter radius includes a
public thoroughfare, they may station themselves in such
public thoroughfares for the purpose of insuring the free
flow of traffic
ARRESTS/SEARCHES AND SEIZURES
• effected only on the basis of an existing and valid
warrant
• any person who obstructs the free and lawful
ingress to and egress from the employer's premises or
who obstructs public thoroughfares may be arrested and
accordingly charged in court
• as well as any person who shall have in his
possession deadly weapons in violation of BP Blg. 06 such
as knives, bolos, blunt or pointed instruments and firearms
or explosives in violation of PD 1896
SERVICE OF DOLE, COURT OR LAWFUL ORDERS/WRITS
• primary concern of the DOLE representatives,
sheriff, representative of the govt. agency issuing the order
respectively
• role of the AFP/INP is only supportive
ADMINISTRATIVE JURISDICTION
• determination of whether a strike, picket or lock-out
is legal or not should be left to DOLE
• personal escort only upon direction of competent
authority
• other party shall be informed accordingly
• all escorts shall be in uniform at all times
SOCIALIZING/LIAISON
• discouraged from socializing with any of the parties
involved during the pendency
• shall not, under any pretext, accept an invitation
from either of the parties
• liaison established and maintained with
representatives of DOLE, mgt., and union for the purpose
of maintaining peace and order as well as to maintain a
continuing peaceful dialogue
ADMINISTRATIVE ACTION
• all complaints/reports leveled against any personnel of
the INP/AFP on the occasion of strike/lock-out shall be
acted with dispatch
• whenever applicable, and if the evidence so warrants,
appropriate disciplinary action shall be takes against the
erring personnel
JURISDICTION OF VOLUNTARY ARBITRATORS
VOLUNTARY ARBITRATOR – any person accredited by the
Board as such, or any person named or designated in the CBA
by the parties to act as their voluntary arbitrator, or one chosen
by the parties, with or without the assistance, of the Board,
pursuant to a selection procedure agreed upon in the CBA
1. Original and Exclusive
• all unresolved grievances arising from the
interpretation or implementation of the CBA
 • those arising from the interpretation or
enforcement of company personnel policies

• wage distortion, if not resolved at the plant

level
2. All other labor disputes AGREED to be referred to
it by the parties

PROCEDURE:

Grievance Automati- Award Decision

machinery, cally to be or award
final if referred made shall
unsettled to w/in 20 become
after 7 voluntary cal. final and
calendar arbitrator days executory
days from after 10
submission calendar
III days
 IV. TERMINATION OF EMPLOYMENT
SECURITY OF TENURE
Coverage: applies to all establishment or undertakings
whether for profit or not
CLASSES OF EMPLOYEES
1. REGULAR
• engaged to perform activities which are usually necessary
or desirable in the usual business or trade of the employer
• may be terminated only for just / authorized causes
2. PROBATIONARY
General Rule: Not to Exceed 6 mos.
Except:
a) covered by an apprenticeship agreement
stipulating a longer period
b) voluntary agreement of parties (especially when
nature of work requires a longer period)
c) the employer gives the employee a second
chance to pass the standards set
May be terminated:
a) for just / authorized causes
b) when he fails to qualify as a regular employee
in accordance with reasonable standards made known
by the employer to employee at the time of his
engagement
If allowed to work after the probationary period, he
shall be considered a REGULAR employee
3. PROJECT
• one whose employment has been fixed for a specific
project or undertaking the completion of which has been
determined at the time of engagement of the employee;
the period is not the determining factor, so that even if the
period is more than 1 year, employee does not necessarily
become regular)
• becomes regular when:
a. Job is usually necessary or desirable in the
usual business or trade or business (UNOD in
UTOB) AND
b. Repeated rehiring - must be for the same or
similar tasks; vital and indispensable to the business
(Maraguinot case)
4. SEASONAL
• one whose work or services to be performed is seasonal in
nature and the employment is for the duration of the
season
5. CASUAL
• activity performed is not usually necessary or desirable in
the usual business or trade of the employer, not project
and not seasonal
• Except: if he has rendered at least 1 year of service,
whether such service is continuous or broken, he is
considered a REGULAR employee with respect to the
activity in which he is employed and his employment shall
continue while such activity exists
• Despite the distinction between regular and casual
employment, every employee shall be entitled to the same
rights and privileges, and shall be subject to the same
duties as may be granted by law to regular employees
during the period of their actual employment. (Book VI
Rule I)
6. FIXED TERM
 • period is agreed upon knowingly and voluntarily by the
parties without force, duress, or improper pressure exerted
on the employee
• satisfactorily appears that employer and employee dealt
with each other on more or less equal terms with no moral
dominance exercised by the employer on the ee
• term employment is not resorted to defeat the rights of the
workers’ rights
TERMINATION
JUST CAUSES
Grounds: SoMe WiD GAN FWeT CO
1. Serious Misconduct or Willful Disobedience
by the employee of the lawful orders of his employer or
representative in connection with his work (work-related)
• Serious misconduct - improper or wrong conduct; the
transgression of some established and definite rule of action, a
forbidden act, a dereliction of duty, willful in character, and
implies wrongful intent and not mere error in judgment. To be
serious within the meaning and intendment of the law, the
misconduct must be of such grave and aggravated character
and not merely trivial or unimportant (Villamor Golf Club v
Pehid, October 4, 2005).
• Elements of Misconduct as a just cause for dismissal:
1. serious;
2. relate to the performance of the
employee’s duties;
3. employee has become unfit to
continue working for the employer [Phil. Aeolus v
NLRC (2000)]
• Elements of Willful Disobedience as a just cause for
dismissal:
1. employee’s assailed conduct was
willful or intentional, the willfulness being
characterized by a wrongful and perverse
attitude;
2. the order violated must have been
reasonable, lawful, made known to the employee
and must pertain to the duties which he has been
engaged to discharge (Micro Sales Operation
Network v NLRC, October 11, 2005).
2. Gross And habitual Neglect by the
employee of his duties
• GROSS and HABITUAL must concur together.
• Implies a want or absence of or failure to exercise
slight care or diligence, or the entire absence of care. It
evinces a thoughtless disregard of consequences
without exerting any effort to avoid them.
• Previous infractions by the employee should have been
acted upon appropriately by the employer before
terminating the former.
3. Fraud or Willful breach by employee of the
Trust reposed in him by his employer or duly authorized
representative (not mere suspicion)
• For R & F workers, there must be an OVERT/ACTUAL
ACT; furthermore, the worker should have been
entrusted with the custody of money of property by the
employer.
• For managerial/confidential employees, acts ARE NOT
necessary; MERE CIRCUMSTANCES tending to show
loss of confidence are enough.
 4. Commission of a Crime or offense by the
employee against the person of his employer or any
immediate member of his family or duly authorized
representative
• A criminal case need not be actually filed. Commission
of acts constituting a crime is sufficient.
5. Other causes analogous to the foregoing
• Immorality; For private sector employees, it can only be
a ground if it is work related. For public sector
employees, immorality is sufficient cause for
termination.
• Sexual Harassment-Commission of acts constituting
such is enough; a criminal case need not be filed.
• Being quarrelsome/bossy
• Gross inefficiency
NOTE: Sexual harassment (used in ordinary sense) may still
be a ground for termination even if it will not fall under the
restrictive definition of “sexual harassment” under RA 7877.
Although the employer has the prerogative to discipline or
dismiss its employee, infractions should merit only the
corresponding sanction demanded by the circumstances. The
penalty must be commensurate with the act, conduct or
omission [Farrol v CA (2000)].
AUTHORIZED CAUSES
Grounds:
1. Introduction of labor-saving devices
• view to effecting more economy and efficiency in its
method of production
2. Redundancy
• exists where the services of an employee are in excess
of what is reasonably demanded by the actual
requirements of the enterprise
• a position has become superfluous as an outcome of a
number of factors such as overhiring of workers,
decreased volume of business, dropping of a particular
product line or service activity previously manufactured
or undertaken by the enterprise (THUS IT ONLY
REQUIRES SUPERFLUITY NOT DUPLICATION OF
WORK)
• The redundancy SHOULD NOT have been created by
the EMPLOYER.
3. Retrenchment
• resorted primarily to avoid or minimize business losses
• Standards to justify retrenchment:
1. The losses expected should be
substantial and not merely de minimis in extent.
2. The substantial loss apprehended must
be reasonably imminent
3. It be reasonably necessary and likely to
effectively prevent the expected losses. The
employer should have taken other measures
prior or parallel to retrenchment to forestall
losses.
4. The alleged losses if already realized,
and the expected imminent losses must be
proved by sufficient and convincing evidence
(Oriental Petroleum & Minerals Corp. v
Fuentes, October 14, 2005).
• Procedure for retrenchment to be valid:
 (a) 1-month prior notice to the employee; and - written notice served on the worker and the DOLE at least
(b) use of a fair and reasonable criteria in carrying 1 month before the intended date thereof
out the retrenchment program, such as 1) less
preferred status (as in the case of temporary SEPARATION PAY:
employees), 2) efficiency rating, 3) seniority, and 4)
proof of claimed financial losses (Oriental Petroleum, • Installation of labor- • 1 month pay or 1 month
supra). saving devices pay for every year of
service whichever is
4. Closure of business as a result of grave • Redundancy higher.
financial loss NOTE:
1 month pay for every year is
5. Closure not due to losses. always higher if the employee
In cases of closure, it must NOT be in BAD FAITH. The has served for more than 1
standard for determining such is the TOTALITY OF year.
CONDUCT doctrine. • Retrenchment to • 1 month pay or at least 1/2
prevent losses month pay for every year of
AILMENT OR DISEASE • Closures or cessation service whichever is higher
(other authorized causes: non-economic ground) of operations of
• when his continued employment is prohibited by law or establishments or
prejudicial to his health or to the health of his co- undertaking NOT due
employees to serious business
• there is a certification by a competent public health losses or financial
authority that the disease is of such nature or at such reverses
stage that it cannot be cured within a period of 6 months • Disease
even with proper medical treatment * A fraction of at least 6 moths shall be considered as 1 year.

The requirement for a medical certificate cannot be dispensed

with; otherwise, it would sanction the unilateral and arbitrary
determination by the employer of the gravity or extent of the
employee’s illness and thus defeat the public policy on the
protection of labor (Manly Express v Payong, October 25,
2005)
NOTICE AND SEPARATION PAY
BACKWAGES
• granted on grounds of equity for earnings which a worker
has lost due to his illegal dismissal.
• full backwages are to be awarded to an illegally dismissed
employee and should not be diminished or reduced by
earnings derived elsewhere
DUE PROCESS
1. written notice containing a statement of the
causes for termination
2. a hearing or conference where the
employee, who may be assisted by counsel if he so
desires, is given the opportunity to respond to the
charge, present his own evidence, or rebut evidence
against him
3. written notice of termination served on the
employee indicating that grounds have been
established to justify his termination based on due
consideration of all the circumstances
4. right to contest the validity or legality of his
dismissal by filing a complaint with the NLRC
5. burden of proof is with the employer
6. SUSPENSION OF EFFECTS PENDING
RESOLUTION: if there is a prima facie finding that the
termination may cause a serious labor dispute or is in
implementation of mass layoff, the Secretary of Labor
may suspend the effects of the termination
EFFECTS OF REMOVAL WITHOUT CAUSE:
1) entitled to REINSTATEMENT without loss
of seniority rights and other privileges
If reinstatement is no longer possible, SEPARATION PAY
2 instances when reinstatement is not possible:
a.) Strained relations - applies only to
managerial/confidential employees.
b.) Position has been abolished – applies to
both managerial and rank and file.
2) entitled to FULL BACKWAGES, inclusive of
allowances and other benefits or their monetary
equivalent. Back wages are punitive in relation to the
employer. Hence, they must be paid in full from time of
illegal dismissal (there is no longer a maximum period).
Back wages must be paid regardless of whether or not the
employee has since found work elsewhere. Back wages
are computed by assuming that there was NEVER ANY
TERMINATION. Hence, it would be as if EE had been
working in company all the time.
3) DAMAGES
a) Moral - If the dismissal is in bad faith, attended by
fraud, is against public policy, good customs, morals,
or is oppressive to labor.
b) Exemplary - If the dismissal is wanton, oppressive, or
malevolent.
EFFECT OF REMOVAL WITH CAUSE BUT WITHOUT DUE
PROCESS
Serrano (G.R. 117040, January 27,2000)
Termination due to authorized cause without giving the notice
required under the Labor Code is not a violation of due
process. It is valid although declared irregular/ineffectual.
He shall however be entitled to SEPARATION PAY AND
BACKWAGES subject to the following rules:
• When the dismissal is for a cause, the employee, whether
dismissed for just cause or authorized cause but without
prior notice, is entitled to full backwages from the time he
was terminated until the decision finding cause becomes
final.
• When the dismissal is without just or authorized cause,
backwages shall be computed from the time of his
dismissal until his actual reinstatement.
NOTE: Serrano, although a case of termination for authorized
cause also covers termination due to just cause; if termination FLOATING STATUS
is due to just causes, no separation pay is due. a.) It is legal, such as in the case of security
guards who have no assignment.
Agabon vs NLRC, Nov. 17, 2004 modifies Serrano b.) Such a status should not exceed six-
Dismissal for an authorized or just cause, w/o procedural months; if it does, it amounts to a dismissal.
due process is not an illegal dismissal which warrants
backwages; employee entitled only to nominal damages ABANDONMENT
The Court interpreted Art. 279 to the effect that termination is • means the deliberate, unjustified refusal of an employee
illegal only if it is not for any of the justified or authorized to resume his/her employment.
causes provided by law. Payment of backwages and other • Two elements must be proved:
benefits, including reinstatement, is justified only if the 1) the intention to abandon; and
employee was unjustly dismissed. 2) an overt act from which it may be inferred that the
The Court decided to follow Wenphil that where the dismissal employee has no more intent to resume his/her
is for a just cause, the lack of statutory due process should not work.
nullify the dismissal or render it illegal. However, the employer • this is negated by immediate filing of an action for
should indemnify the employee for the violation of his rights. ILLEGAL DISMISSAL
The indemnity should be stiffer than that provided in Wenphil
to discourage the abhorrent practice of “dismiss now, pay RESIGNATION
later.” The indemnity should be in the form of nominal a. WITHOUT JUST CAUSE
damages, which is adjudicated in order that a right of plaintiff, 1. at least 1 month prior notice
which has been violated by the defendant, may be vindicated. 2. employee may be held liable for damages
for failure to give notice
CONSTRUCTIVE DISMISSAL b. WITH JUST CAUSE
a.) No formal dismissal
b.) The employee is placed in a situation by the 1. Grounds
employer such that his continued employment has become a. serious insult on the honor and person
UNBEARABLE. of employee by the employer or his representative
b. inhumane and unbearable treatment
DISMISSAL IN RELATION TO CLOSED SHOP accorded to the employee
AGREEMENT c. commission of a crime against person of
a.) The company cannot dismiss an employee the employee or any of the immediate members of
on the mere allegation of the union. his family
b.) The company must conduct an independent d. other causes analogous to the foregoing
investigation of the charges before taking action. 2. Notice not necessary

NOTE: Resigning employee not entitled to separation pay,
unless company policy gives it.
EMPLOYMENT NOT DEEMED TERMINATED
a. bona fide suspension of the operation of a
business/undertaking for a period of not more than 6
months
b. fulfillment by the employee of a military or
civic duty
• Employer shall reinstate the employee to his former
position without loss of seniority rights IF employee
indicates his desire to resume his work not later than 1
month from resumption of operations of his employer or his
relief from the military or civic duty
PREVENTIVE SUSPENSION
• justified where the employee’s continued employment
poses a serious and imminent threat to the life or property
of the employer or of his co-workers (there is a
REASONABLE POSSIBILITY of the employee posing such
a threat).
• must not exceed 1 month
• only for the purpose of investigating the offense to
determine whether he is to be dismissed or not. IT IS NOT
A PENALTY.
• if more than 1 month, the employee must be actually
reinstated or reinstated in the payroll
• officers liable only if with malice and bad faith
RETIREMENT PAY LAW (RA 7641)
A. WHO ARE EXEMPTED:
1. retail, service, agricultural establishments
2. operations employing not more than 10 employees
B. KINDS:
1. OPTIONAL - 60 years old / 5 years in service (includes
authorized absences/vacations/regular holidays/mandatory
military or civic service). This depends on the stipulations in
the CBA, company retirement plan, or employment contract.
2. COMPULSORY - 65 years old/ regardless or years of
service (company not bound to dismiss employee)
C. BENEFITS:
1/2 month salary per year of service which shall include:
1. (22.5 days)15-day basic wage, plus
2. 1/12 of the 13th month pay, plus
3. 5-day Service incentive leave pay plus
*a fraction of at least 6 mos. considered as 1 whole year
4. other benefits as maybe agreed upon by er and ee
MINIMUM ~ no. 1 + no. 2 + no. 3 = n x years of
service; minimum only, so that employer must pay deficiency
in case agreed amount be less than the above
V. DISPUTE SETTLEMENT
LABOR DISPUTE
• includes any controversy or matter concerning terms or
conditions of employment or the association or
representation of persons in negotiating, fixing,
maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the
disputants stand in the proximate relation of employer and
employee

BUREAU OF LABOR RELATIONS
• original jurisdiction: appeal to Office of the Secretary
• appellate jurisdiction: decision shall be immediately
executory upon issuance of entry of final judgment
1. JURISDICTION
a. Inter-union conflicts
b. Intra-union conflicts
c. All disputes, grievances or problems arising
from or affecting labor-management relations in
all workplaces EXCEPT those arising from the
implementation or interpretation of the CBA
which shall be the subject of grievance
procedure and/or voluntary arbitration
d. Complaint involving federations, national
unions, industry unions, its officers or member
organizations
2. COMPROMISE AGREEMENTS
• if voluntarily agreed upon by the parties with the
assistance of the BLR or the regional office of
DOLE  final and binding upon the parties
• the only time NLRC or any courts can assume
jurisdiction over issues involved therein:
a. in case of non-compliance thereof
b. if there is prima facie evidence that
the settlement was obtained through
fraud, misrepresentation or coercion
3. POWER TO ISSUE SUBPOENA
• when relevant to a labor dispute under its
jurisdiction either at the request of any
interested party or at its own initiative
4. REGISTRY OF UNIONS AND FILING OF
COLLECTIVE AGREEMENTS
a. Keep registry of LLO
b. Maintain a file of all CBA and other related
agreements, records of settlement of labor
disputes, copies of orders, and decisions of
voluntary arbitrators
• open and accessible to interested parties under
conditions prescribed by the Secretary of
DOLE, provided that no specific information
submitted in confidence shall be disclosed
UNLESS authorized by the Secretary OR when
it is at issue in any judicial litigation OR when
public interest or national security so requires
• submitted within 30 days from execution of CBA
to the BLR/DOLE for registration accompanied
with verified proofs of its posting in 2
conspicuous places in the place of work and
ratification by the majority of all the workers in
the bargaining unit
5. PRIVILEGED COMMUNICATION
• information and statements made at conciliation
meetings shall NOT be used as evidence in the
NLRC
• conciliators and similar officials shall not testify
in any court or body regarding any matters
taken up at conciliation proceeding conducted
by them
 6. APPEAL
• within 10 days to the Secretary C. POEA
• GROUNDS: • Appeal to Secretary of DOLE within 10 cal days
• a. grave abuse of discretion o cancellation/ revocation/ supervision of license
b. gross incompetence or authority
• Appeal to NLRC within 10 cal days
SUMMARY OF JURISDICTION o violation of overseas employment contracts
A. VOLUNTARY ARBITRATORS o disciplinary cases filed against overseas
• supervised by National Conciliation and Mediation contract workers
Board (NCMB) • Original and exclusive jurisdiction over all claims arising
• cases decided within 20 cal days, final within 10 cal out of an employer-employee relationship or by virtue of
days any law or contract involving Filipino overseas workers
1. unresolved grievances arising from the including disciplinary cases; and all pre-employment cases
interpretation or implementation of the CBA which are administrative in character involving or arising
EXCEPT gross violation of the CBA therefrom, or violations of the conditions for issuance of
• unresolved within 7 cal days from submission to license or authority to recruit workers
grievance machinery
• monetary claim based on a CBA provision is D. LABOR ARBITERS/NLRC
under the exclusive jurisdiction of the grievance LABOR ARBITER’s jurisdiction
machinery & VA
2. unresolved grievances arising from the
1. ULP (priority  resolved within 30 cal days
interpretation or enforcement of company from submission for decision)
personnel policies 2. termination disputes
3. upon agreement of parties = any dispute 3. claims for wages, rates of pay, hours of work and
other terms and conditions of employment
B. MED-ARBITERS/BLR 4. claims for actual, moral, exemplary and other forms
Original Jurisdiction: appeal to the Office of the Secretary of damages arising from employer-employee
Appellate Jurisdiction: appeal to CA on certiorari relationship
1. petition for certification election (Med Arbiter) 5. cases arising from prohibited activities during
2. registration of CBA/ Labor Org strikes, including questions involving the legality of
3. inter-union conflicts (representation strikes and lockouts
issue/cancellation of registration) - BLR 6. all other claims arising from employer-employee
4. intra-union conflicts (election of officers/ compliance relationship involving an amount exceeding P5000
with CBL) – Regional Director; appeal with BLR regardless of whether accompanied by a claim for
 reinstatement except ECC, SSS, Medicare, & maternity option of the employer, but which choice must be
benefits communicated to the employee by the employer)
• posting of a bond shall not stay the execution of
NLRC - EXCLUSIVE appellate jurisdiction over all cases reinstatement
decided by Labor Arbiters
FILING OF MEMORANDUM OF:
OCULAR INSPECTION by Labor Arbiter & NLRC at any a. APPEAL
time during working hours furnish other party within 10 caldays  answer,
then within 20 caldays  decision by NLRC, then
APPEAL within 10 caldays  finality
• WHEN: within 10 calendar days from receipt of decision b. ENFORCEMENT:
of LA -any law enforcement agency may be deputized
• GROUNDS: by the Secretary of DOLE of the NLRC
a. prima facie evidence of abuse of discretion on -issuance of writ of execution on a judgment
the part of LA within 5 years from date it becomes final and
b. the decision, order or award was secured executory motu proprio or in motion of any
through fraud or coercion including graft and corruption interested party
c. pure questions of law
d. raised serious errors in the findings of facts E. REGIONAL DIRECTORS
which could cause grave or irreparable damage or
injury to the appellant 1. Secretary of DOLE  enforcement power
e. additional Requirement: in case of judgment involving a (inspection)
monetary award-employer (appellant) may perfect the • no limit to claims
appeal only upon the posting of a cash or surety bond
issued by a reputable bonding company duly 2. adjudicatory power  maximum of P5000 total
accredited by the NLRC in the amount equivalent to claim/employee
the monetary award in the judgment appealed from • summary appeal to NLRC within 5 calendar days
3. violation of the CBL and right and conditions of
ORDER OF REINSTATEMENT OF LABOR ARBITER membership
• self-executing with no need for a writ of execution
• immediately executory even pending appeal PRESCRIPTIVE PERIODS
• either admitted back to work under the same terms ULP 1 year
and conditions prevailing prior to his dismissal or MONEY CLAIMS 3 years
separation or merely reinstated in the payroll ( at the OFFENSES UNDER LC 3 years
ILLEGAL DISMISSAL 4 years
PROCEDURE
• the rules of evidence prevailing in courts of law or equity
shall not be controlling
• it is the spirit and intention of this Code which shall be used
as reasonable means to ascertain the facts in each case
• without regard to technicalities of law and procedure all in
the interest of due process
• parties may be represented by legal counsel but it shall be
the duty of the Chairman, any presiding Commissioner or
any labor arbiter to exercise compete control of the
proceedings at all stages
APPEARANCES AND FEES
A. When non-lawyers appear before the NLRC/LA
1. if they represent themselves
2. if they represent their organizations or
members thereof
B. Attorney's Fees, negotiations fees or similar charges of any
kind arising from any collective bargaining negotiations or
conclusion of the collective agreement shall be imposed on
any individual member of the contracting union
- Proceeding for recovery of wages may be assessed
against monetary benefits awarded (10%)
- CBA negotiations charged against union funds in an
amount to be agreed upon by parties attorney's fees may
be charged against union funds in an amount to be agreed
upon by the parties
- contract, agreement to the contrary shall be VOID
RA 6971 -- Productivity Incentives Act of 1990
Labor-Management Committee
- both management and labor shall have equal voting
rights
- representations of labor
organized -- designated by the Collective bargaining
agents in the bargaining unit
unorganized -- elected by at least a majority of all rank and
file employees who have rendered at least 6 months of
continuous service
Productivity Incentives Program
- contains provisions for the manner of sharing and the
factors in determining productivity bonuses
- productivity granted ,1/2 (percentage increase in the
productivity of the business enterprise)
- granted salary bonuses = increases in current
productivity over the average for the preceding 3
consecutive years
- entitles employer to special deduction from gross
income equivalent of 50% of the total allowable ordinary
and necessary business deductions for said bonuses
under the NIRC
 VI. SALIENT FEATURES OF THE SSS LAW AND GSIS LAW

Social Security Act of 1997 (RA 8282) Government Service Insurance Act of 1997 (RA
8291)
EMPLOYER - Any person, natural or judicial, domestic or foreign
The national government, its political subdivisions,
who carries on in the Philippines any trade, branches, agencies or instrumentalities, including
business, industry undertaking or activity of anyGOCCs, and financial institutions with original
kind and uses the services of another person who charters, the constitutional commissions and the
is under his orders as regards employment 8 (c) judiciary
- Exempt employer: government and any of its
political subdivisions, branches and instrumentality,
including GOCCs
BENEFICIARIES a. Dependent Spouse until remarriage AND a. Legal, Dependent Spouse until remarriage
1. PRIMARY b. Dependent Legitimate or Legitimated or Legally AND
Adopted and Illegitimate Children b. Dependent Children

2. SECONDARY Dependent Parents

Dependent Parents; AND
*Absent primary and secondary beneficiaries, any Legitimate descendants subject to restrictions on
other person designated by member as secondary dependent children, legitimate descendants
beneficiary
3. OTHERS
As to DEATH BENEFITS, If no beneficiary qualifies
under the Act, benefits shall be paid to Legal Heirs in
accordance with Law of Succession
BENEFITS Monthly Pension 1. ALL MEMBERS
Dependents Pension a. Life Insurance
Retirement b. Retirement
Death c. Disability
Permanent Disability d. Survivorship
Funeral e. Separation
Sickness f. Unemployment
Maternity (ONLY 1ST FOUR DELIVERIES OR
MISCARRIAGES) 2. JUDICIARY
A. Life Insurance ONLY -ALL TAX EXEMPT
COVERAGE 2. All employees not over sixty (60) years of age and Compulsory for all employees receiving
1. COMPULSOR their employers; compulsory coverage of the compensation who have not reached compulsory
Y employer shall take effect on the first day of his retirement age, irrespective of employment status
operation and that of the employee on the day of
his employment
3. self-employed employees as may be determined
by the Commission under such rules and
regulations as it may prescribe, including, but
limited to: all self-employed professionals; partners
and single-proprietors of business; actors and
actresses, directors, scriptwriters and news
correspondents not employees; professional
athletes, coaches, trainers and jockeys, and
individual farmers and fishermen; upon their
registration with the SSS.
3. Domestic helpers who are sixty years of age and
below with a monthly income of not less than
P1,000 on the date of their employment
4. individual farmers and fishermen under SS rules
and regulations
2. VOLUNTARY
1. Filipinos recruited by foreign-based employers for
employment abroad
2. Employee separated from employment
3. Self-employed – realizes no income
4. Spouse who devotes full time managing household
and family affairs unless specifically mandatorily
covered

*By Arrangement:
any foreign government, international organization or
wholly owned instrumentality employing workers in the
Philippines or employing Filipinos outside the
Philippines may enter agreement with Philippines for
inclusion of such employees in SSS EXCEPT those
 already covered by their respective civil service
retirement system.
EXCEPTIONS 1. employment purely casual and not for purpose 1. Members of the Armed Forces
(FROM occupation, or business employer 2. Members of the PNP
COVERAGE) 2. service performed on or in connection with alien
vessel, if employed when such vessel is outside of * members of judiciary and constitutional
Philippines commissions: life insurance only
3. employees of Philippine government or
instrumentality or agency thereof
4. service performed in the employee of a foreign
government, or international organizations, of
wholly owned instrumentality employing workers in
the Philippines or employing Filipinos outside of the
Philippines
5. services performed by temporary and other
employees excluded by SSS regulation;
employees of bona fide independent contractors
shall not be deemed employees of the employer
engaging the services of an independent contractor
BASIS OF CLAIM Non-work connected disability, sickness, maternity, Work-connected exempt from liability where
death and old age and other contingencies resulting in permanent disability due to his grave misconduct,
loss of income or financial burden (sec. 2) habitual intoxication, or willful intention to kill
himself or another (sec. 15-17)
A) AGRARIAN REFORM means the redistribution of lands,
VII. COMPREHENSIVE AGRARIAN REFORM LAW, regardless of crops or fruits produced, to farmers and regular
as amended farm workers who are landless, irrespective of tenurial
arrangement, to include the totality of factors and support
NOTE FOR ABBREVIATIONS services designed to lift the economic status of the
LBP - Land Bank of the Phil. beneficiaries and all other arrangements alternative to the
CARP - Comprehensive Agrarian Reform Program physical redistribution of lands, such as production or profit-
DA - Dept. of Agriculture sharing, labor administration, and the distribution of shares of
DAR - Department of Agrarian Reform stock which will allow beneficiaries to receive a just share of
PARC - Presidential Agrarian Reform Council the fruits of the lands they work.

DEFINITIONS:
(B) AGRICULTURE, AGRICULTURAL ENTERPRISE OR
AGRICULTURAL ACTIVITY means the cultivation of the soil,
planting of crops, growing of fruit trees, including the
harvesting of such farm products, and other farm activities and
practices performed by a farmer in conjunction with such
farming operations done by persons whether natural of
juridical. (As amended by R. A. 7881)
(C) AGRICULTURAL LAND refers to land devoted to
agricultural activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial land.
(D) AGRARIAN DISPUTE refers to any controversy relating to
tenurial arrangements, whether leasehold, tenancy,
stewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farm workers' associations or
representation of persons in negotiating, fixing, maintaining,
changing or seeking to arrange terms or conditions of such
tenurial arrangements.
It includes any controversy relating to compensation
of lands acquired under this Act and other terms and
conditions of transfer of ownership from landowners to farm
workers, tenants and other agrarian reform beneficiaries,
whether the disputants stand in the proximate relation of farm
operator and beneficiary, landowner and tenant, or lessor and
lessee.
(E) IDLE OR ABANDONED LAND refers to any agricultural
land not cultivated, tilled or developed to produce any crop nor
devoted to any specific economic purpose continuously for a
period of three (3) years immediately prior to the receipt of
notice of acquisition by the government as provided under this
Act, but does not include land that has become permanently or
regularly devoted to non-agricultural purposes. It does not
include land which has become unproductive by reason of
force majeure or any other fortuitous event: Provided, that
prior to such event, such land was previously used for
agricultural or other economic purposes.
(F) FARMER refers to a natural person whose primary
livelihood is cultivation of land or the production of agricultural
crops either by himself, or primarily with the assistance of his
immediate farm household, whether the land is owned by him,
or by another person under a leasehold or share tenancy
agreement or arrangement with the owner thereof.
(G) FARMWORKER is a natural person who renders service
for value as an employee or laborer in an agricultural
enterprise or farm regardless of whether his compensation is
paid on a daily, weekly, monthly or "pakyaw" basis. The term
includes an individual whose work has ceased as a
consequence of, or in connection with, a pending agrarian
dispute who has not obtained a substantially equivalent and
regular farm employment.
(H) REGULAR FARMWORKER is a natural person who is
employed on a permanent basis by an agricultural enterprise
or farm.
(I) SEASONAL FARMWORKER is a natural person who is
employed on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a
non-permanent laborer, such as "dumaan", "sacada", and the
like.
(J) OTHER FARMWORKER is a farmworker who does not fall
under paragraphs (g), (h) and (i).
(K) COOPERATIVES shall refer to organizations composed
primarily of small agricultural producers, farmers, farm
workers, or other agrarian reform beneficiaries who voluntarily
organize themselves for the purpose of pooling land, human,
technological, financial or other economic resources, and
operated on the principle of one member, one vote. A juridical
person may be a member of a cooperative, with the same
rights and duties as a natural person.
SCOPE
The following lands are covered:
a) All alienable and disposable lands of the public domain
devoted to or suitable for agriculture. No reclassification of
forest or mineral lands to agricultural lands shall be
undertaken after the approval of this Act until Congress, taking
into account ecological, developmental and equity
considerations, shall have determined by law, the specific
limits of the public domain;
b) All lands of the public domain in excess to the specific limits
as determined by Congress in the preceding paragraph;
c) All other lands owned by the Government devoted to or
suitable for agriculture;
d) All private lands devoted to or suitable for agriculture
regardless of the agricultural products raised or that can be
raised thereon.
EXEMPTION AND EXCLUSIONS:
(a) Lands actually, directly and exclusively used for parks,
wildlife, forest reserves, reforestation, fish sanctuaries and
breeding grounds, watersheds and mangroves shall be
exempt from the coverage of this Act.
(b) Private lands actually, directly and exclusively used for
prawn farms and fishponds shall be exempt from the coverage
of this Act: Provided, That said prawn farms and fishponds
have not been distributed and Certificate of Land Ownership
Award (CLOA) issued under the Agrarian Reform Program.
In cases where the fishponds or prawn farms have been
subjected to the Comprehensive Agrarian Reform Law, by
voluntary offer to sell, or commercial farms deferment or
notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must consent
to the exemption within one (1) year from the effectivity of this
Act. When the workers or tenants do not agree to this
exemption, the fishponds or prawn farms shall be distributed
collectively to the worker-beneficiaries or tenants who shall
form cooperative or association to manage the same.
In cases where the fishponds or prawn farms have not been
subjected to the Comprehensive Agrarian Reform Law, the
consent of the farmworkers shall no longer be necessary.
(c) Lands actually, directly and exclusively used and found to
be necessary for national defense, school sites and
campuses, including experimental farm stations operated by
public or private schools for educational purposes, seeds and
seedlings research and pilot production center, church sites
and convents appurtenant thereto, mosque sites and Islamic
centers appurtenant thereto, communal burial grounds and
cemeteries, penal colonies and penal farms actually worked by
the inmates, government and private research and quarantine
centers and all lands with eighteen percent (18%) slope and
over, except those already developed, shall be exempt from
the coverage of this Act.(As amended by R. A. 7881)
IMPROVEMENT OF TENURIAL AND LABOR RELATIONS
In order to protect and improve the tenurial and economic
status of the farmers in tenanted lands under the retention limit
and lands not yet acquired under this Act, the DAR is
mandated to determine and fix immediately the lease rentals
thereof. Provided, That the DAR shall immediately and
periodically review and adjust the rental structure for different
crops, including rice and corn, of different regions in order to
improve progressively the conditions of the farmer, tenant or
lessee. Moreover, In order to safeguard the right of the
regular fishpond or prawn farm workers under the incentives
plan, the book of the fishpond or prawn farm owners shall be
subject to periodic audit or inspection by certified public
accountants chosen by the workers. The foregoing provision
shall not apply to agricultural lands subsequently converted to
fishponds or prawn farms provided the size of the land
converted does not exceed the retention limit of the
landowner. (As added by R. A. 7881)
PROCEDURE FOR ACQUISITION OF PRIVATE LANDS
a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land
to the owners thereof, by personal delivery or registered mail,
and post the same in a conspicuous place in the municipal
building and barangay hall of the place where the property is
located. Said notice shall contain the offer of the DAR to pay a
corresponding value in accordance with the valuation set forth
in Sections 17, 18, and other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written
notice by personal delivery or registered mail, the landowner,
his administrator or representative shall inform the DAR of his
acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the LBP
shall pay the landowner the purchase price of the land within
thirty (30) days after he executes and delivers a deed of
transfer in favor of the Government and surrenders the
Certificate of Title and other muniments of title.
(d) In case of rejection or failure to reply, the DAR shall
conduct summary administrative proceedings to determine the
compensation of the land by requiring the landowner, the LBP
and other interested parties to summit evidence as to the just
compensation for the land, within fifteen (15) days from the
receipt of the notice. After the expiration of the above period,
the matter is deemed submitted for decision. The DAR shall
decide the case within thirty (30) days after it is submitted for
decision.
(e) Upon receipt by the landowner of the corresponding
payment or in case of rejection or no response from the
landowner, upon the deposit with an accessible bank
designated by the DAR of the compensation in cash or LBP
bonds in accordance with this Act, the DAR shall take
immediate possession of the land and shall request the proper
Register of Deeds to issue a Transfer Certificate of Title (TCT)
in the name of the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of the land to the
qualified beneficiaries.
(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination
of just compensation.
JUST COMPENSTATION
In determining just compensation, the cost of acquisition of the
land, the current value of like properties, its nature, actual use
and income, the sworn valuation by the owner, the tax
declarations, and the assessment made by government
assessors, shall be considered. The social and economic
benefits contributed by the farmers and the farmworkers and
by government to the property as well as the non-payment of
taxes or loans secured from any government financing
institution on the said land shall be considered as additional
factors to determine its valuation. The LBP shall compensate
the landowner in such amount as may be agreed upon by the
landowner and the DAR and LBP or as may be finally
determined by the court as just compensation for the land.
LAND REDISTRIBUTION
The lands covered by the CARP shall be distributed as much
as possible to landless residents of the same barangay, or in
the absence thereof, landless residents of the same
municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farm workers;
(c) seasonal farm workers;
(d) other farm workers;
(e) actual tillers or occupants of public lands;
(f) collective or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
A basic qualification of a beneficiary shall be his willingness,
aptitude and ability to cultivate and make land as productive as
possible. The DAR shall adopt a system of monitoring the
record or performance of each beneficiary, so that any
beneficiary guilty of negligence or misuse of the land or any
support extended to him shall forfeit his right to continue as
such beneficiary. The DAR shall submit periodic reports on the
performance of the beneficiaries to the PARC.
If, due to landowner's retention rights or to the number of
tenants, lessees, or workers on the land, there is not enough
land to accommodate any or some of them, they may be
granted ownership of other lands available for distribution
under this Act, at the option of the beneficiaries.
Farmers already in place and those not accommodated in the
distribution of privately-owned lands will be given preferential
rights in the distribution of lands from the public domain.
However, lands acquired by beneficiaries under this Act may
not be sold, transferred or conveyed except through hereditary
succession, or to the government, or to the LBP, or to other
qualified beneficiaries for a period of ten (10) years
QUASI-JUDICIAL POWERS OF DAR
The DAR is hereby vested with primary jurisdiction to
determine and adjudicate agrarian reform matters and shall
have exclusive original jurisdiction over all matters involving
the implementation of agrarian reform, except those falling
under the exclusive jurisdiction of the Department of
Agricultural (DA) and the Department of Environment and
Natural Resources (DENR).
It shall not be bound by technical rules of procedure and
evidence but shall proceed to hear and decide all cases,
disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of every
case in accordance with equity and the merits of the case.
Toward this end, it shall adopt a uniform rule of procedure to
achieve a just, expeditious and inexpensive determination of
every action or proceeding before it.
It shall have the power to summon witnesses, administer
oaths, take testimony, require submission of reports, compel
the production of books and documents and answers to
interrogatories and issue subpoena, and subpoena duces
tecum and to enforce its writs through sheriffs or other duly
deputized officers. It shall likewise have the power to punish
direct and indirect contempt in the same manner and subject
to the same penalties as provided in the Rules of Court.
Representatives of farmer leaders shall be allowed to
represent themselves, their fellow farmers or their
organizations in any proceedings before the DAR: Provided,
however, that when there are two or more representatives for
any individual or group, the representatives should choose
only one among themselves to represent such party or group
before any DAR proceedings.
Notwithstanding an appeal to the Court of Appeals, the
decision of the DAR shall be immediately executory.
Any case or controversy before it shall be decided within thirty
(30) days after it is submitted for resolution. Only one (1)
motion for consideration shall be allowed. Any order, ruling or
decision shall be final after the lapse of fifteen (15) days from
receipt of a copy thereof. To discourage frivolous or dilatory
appeals from the decisions or orders on the local or provincial
levels, the DAR may impose reasonable penalties, including
but not limited to, fines or censures upon erring parties. Any
decision, order, award or ruling of the DAR on any agrarian
dispute or on any matter pertaining to the application,
implementation, enforcement, or interpretation of this Act and
other pertinent laws on agrarian reform may be brought to the
Court of Appeals by certiorari except as otherwise provided in
this Act within fifteen (15) days from receipt of a copy thereof.
The findings of fact of the DAR shall be final and conclusive if
based on substantial evidence.
No court in the Philippines shall have jurisdiction to issue any
restraining order or writ of preliminary injunction against PARC
or any of its duly authorized or designated agencies in any
case, dispute or controversy arising from, necessary to, or in
connection with the application, implementation, enforcement,
or interpretation of this Act and other pertinent laws on
agrarian reform.
SPECIAL AGRARIAN COURTS
The Supreme Court shall designate at least one (1) branch of
the Regional Trial Court (RTC) within each province to act as a
Special Agrarian Court.
The Supreme Court may designate more branches to
constitution such additional Special Agrarian Courts as may be
necessary to cope with the number of agrarian cases in each
province. In the designation, the Supreme Court shall give
preference to the Regional Trial Courts which have been
assigned to handle agrarian cases or whose presiding judges
were former judges of the defunct Court of Agrarian Relations.
The Regional Trial Court (RTC) judges assigned to said courts
shall exercise said special jurisdiction in addition to the regular
jurisdiction of their respective courts.
The Special Agrarian Courts shall have the power and
prerogatives inherent in or belonging to the Regional Trial
Courts.
The Special Agrarian Courts shall have original and exclusive
jurisdiction over all petitions for the determination of just
compensation to landowners, and the prosecution of all
criminal offenses under this Act. The Rules of Court shall
apply to all proceedings before the Special Agrarian Courts
unless modified by this Act.
The Special Agrarian Courts shall decide all appropriate cases
under their special jurisdiction within thirty (30) days from
submission of the case for decision.
The Special Agrarian Courts, upon their own initiative or at the
instance of any of the parties, may appoint one or more
commissioners to examine, investigate and ascertain facts
relevant to the dispute, including the valuation of properties,
and to file a written report thereof with the court. No order of
the Special Agrarian Courts on any issue, question, matter or
incident raised before them shall be elevated to the appellate
courts until the hearing shall have been terminated and the
case decided on the merits. An appeal may be taken from the
decision of the Special Agrarian Courts by filing a petition for
review with the Court of Appeals fifteen (15) days from receipt
of notice of the decision; otherwise, the decision shall become
final.
PROHIBITED ACTS OR OMISSIONS
(a) The ownership or possession, for the purpose of
circumventing the provisions of this Act, of agricultural lands in
excess of the total retention limits or award ceilings by any
person, natural or juridical, except those under collective
ownership by farmer-beneficiaries.
(d) The willful prevention or obstruction by any person,
association or entity of the implementation of the CARP;
(e) The sale, transfer, conveyance or change of the nature of
lands outside of urban centers and city limits either in whole or
in part after the effectivity of this Act. The date of the
registration of the deed of conveyance in the Register of
Deeds with respect to titled lands and the date of the issuance
of the tax declaration to the transferee of the property with
respect to unregistered lands, as the case may be, shall be
conclusive for the purpose of this Act; (NOTE: the sale and/or
transfer of agricultural land in cases where such sale, transfer
or conveyance is made necessary as a result of a bank's
foreclosure of the mortgaged land is hereby permitted. (As
added by R. A. 7881)
(f) The sale, transfer or conveyance by a beneficiary of the
right to use or any other usufructuary right over the land he
acquired by virtue of being a beneficiary, in order to
circumvent the provisions of this Act.

(b) The forcible entry or illegal detainer by persons who are not
qualified beneficiaries under this Act to avail themselves of the
rights and benefits of the Agrarian Reform Program;

(c) The conversion by any landowner of his agricultural land

into non-agricultural use with intent to avoid the application of
this Act to his landholdings and to dispossess his tenant
farmers or the land tilled by them;
 VIII. OTHER CASE DOCTRINES
Employer-employee; Payment by result
*TAN vs. LAGRAMA, G.R. No. 151228
• Of the four elements of the employer-employee
relationship, the “control test” is the most important.
Compared to an employee, an independent contractor
is one who carries on a distinct and independent
business and undertakes to perform the job, work, or
service on its own account and under its own
responsibility according to its own manner and method,
free from the control and direction of the principal in all
matters connected with the performance of the work
except as to the results thereof. Hence, while an
independent contractor enjoys independence and
freedom from the control and supervision of his
principal, an employee is subject to the employer’s
power to control the means and methods by which the
employee’s work is to be performed and accomplished.
• By stating that he had the right to fire the alleged
worker, petitioner in effect acknowledged the worker to
be his employee. For the right to hire and fire is
another important element of the employer-employee
relationship. Indeed, the fact that, as petitioner himself
said, he waited for the employee to report for work but
the latter simply stopped reporting for work reinforces
the conviction that the worker was indeed an employee
of petitioner. For only an employee can nurture such
an expectancy, the frustration of which, unless
satisfactorily explained, can bring about some
disciplinary action on the part of the employer.
• Payment by result is a method of compensation and
does not define the essence of the relation. It is a
method of computing compensation, not a basis for
determining the existence or absence of employer-
employee relationship. One may be paid on the basis
of results or time expended on the work, and may or
may not acquire an employment status, depending on
whether the elements of an employer-employee
relationship are present or not.
LLO – Validity; Registration
*TOYOTA MOTORS PHILIPPINES CORPORATION LABOR
UNION, v TOYOTA MOTOR PHILIPPINES CORPORATION
EMPLOYEES AND WORKERS UNION et. al., G.R. No.
135806. August 8, 2002
• As the court emphasized in Progressive Development
Corp. - Pizza Hut v. Laguesma, if a labor
organization’s application for registration is vitiated by
falsification and serious irregularities, a labor
organization should be denied recognition as a
legitimate labor organization. And if a certificate of
registration has been issued, the propriety of its
registration could be assailed directly through
cancellation of registration proceedings in accordance
with Arts. 238 and 239 of the Labor Code, or indirectly,
by challenging its petition for the issuance of an order
for certification election.
LLO – Validity not subject to collateral attack
*TAGAYTAY HIGHLANDS INTERNATIONAL GOLF CLUB
INCORPORATED, v TAGAYTAY HIGHLANDS EMPLOYEES
UNION-PGTWO, G.R. No. 142000. January 22, 2003
• While Article 245 expressly prohibits supervisory
employees from joining a rank-and-file union, it does
not provide what would be the effect if a rank-and-file
union counts supervisory employees among its
members, or vice-versa. After a certificate of
registration is issued to a union, its legal personality
cannot be subject to collateral attack.
 • The inclusion in a union of disqualified employees is
not among the grounds for cancellation, unless such
inclusion is due to misrepresentation, false statement
or fraud under the circumstances enumerated in
Sections (a) and (c) of Article 239 of the Labor Code.
The union having been validly issued a certificate of
registration, should be considered to have already
acquired juridical personality which may not be
assailed collaterally.
Issue of disaffiliation is within the jurisdiction of BLR, not
LA; A local which affiliates with a national federation
maintains its separate personality
*PHIL. SKYLANDERS v NLRC, G.R. No. 127374, January
31, 2002
• At the outset, let it be noted that the issue of
disaffiliation is an inter-union conflict the jurisdiction of
which properly lies with the Bureau of Labor Relations
(BLR) and not with the Labor Arbiter.
• The sole essence of affiliation is to increase, by
collective action, the common bargaining power of
local unions for the effective enhancement and
protection of their interests. Yet the local unions
remain the basic units of association, free to serve
their own interests subject to the restraints imposed by
the constitution and by-laws of the national federation,
and free also to renounce the affiliation upon the terms
laid down in the agreement which brought such
affiliation into existence.
• Policy considerations dictate that in weighing the
claims of a local union as against those of a national
federation, those of the former must be preferred.
Parenthetically though, the desires of the mother
federation to protect its locals are not altogether to be
shunned. It will however be to err greatly against the
Constitution if the desires of the federation would be
favored over those of its members. That, at any rate,
is the policy of the law. For if it were otherwise,
instead of protection, there would be disregard and
neglect of the lowly workingmen.
Piercing the corporate veil to enforce labor claims
*DE LEON, et al v. NLRC, G.R. No. 112661, May 30, 2001
• The purported sale of the shares of the former
stockholders to a new set of stockholders who
changed the name of the corporation to Magnum
Integrated Services, Inc. appears to be part of a
scheme to terminate the services of FISI's security
guards posted at the premises of FTC and bust their
newly-organized union which was then beginning to
become active in demanding the company's
compliance with Labor Standards laws. Under these
circumstances, the Court cannot allow FTC to use its
separate corporate personality to shield itself from
liability for illegal acts committed against its
employees. s
Backwages, what and how computed
*CEFERINO P. BUHAIN v CA and SWIFT FOOD, INC., G.R.
No. 143709, July 2, 2002
• Backwages is a form of relief that restores the income
that was lost by reason of unlawful dismissal. The
rationale for the relief is that an employee whose
dismissal is found to be illegal is considered not having
left his office so that he is entitled to all the rights and
privileges that accrue to him by virtue of the office that
he held.
• The clear mandate of Art. 279 is that the determination
of backwages plus other benefits should be computed
 from the time his compensation was withheld from him
up to the time of his actual reinstatement.
No ULP if in accord with the agreement of the parties
*PHILIPPINE AIRLINES, INC., v AIRLINE PILOTS
ASSOCIATION OF THE PHILIPPINES, G.R. No.
143686, January 15, 2002
• The fact that there are some supervisory employees
who have not yet been retired after 25 years with the
company or have reached the age of sixty merely
confirms that it is the singular prerogative of
management, at its option, to retire supervisors or
rank-and-file members when it deems fit.
• There should be no unfair labor practice committed by
management if the retirement of private respondents
were made in accord with the agreed option. Surely,
the requirement to consult the pilots prior to their
retirement defeats the exercise by management of its
option to retire the said employees. It gives the pilot
concerned an undue prerogative to assail the decision
of management.
• Due process only requires that notice be given to the
pilot of petitioner’s decision to retire him. Hence, the
Secretary of Labor overstepped the boundaries of
reason and fairness when he imposed on petitioner the
additional requirement of consulting each pilot prior to
retiring him.
No separation pay in resignation; Exceptions; Waivers
and quitclaims, when valid
*CANDIDO ALFARO v. CA, ET AL., G.R. No. 140812
August 28, 2001
• Generally, separation pay need not be paid to
an employee who voluntarily resigns. However, an
employer who agrees to expend such benefit as an
incident of the resignation should not be allowed to
renege in the performance of such commitment.
• Not all waivers and quitclaims are invalid as against
public policy. If the agreement was voluntarily entered
into and represented a reasonable settlement, it is
binding on the parties and may not later be disowned,
simply because of a change of mind.
Special holidays apply to all covered employees within
the area
*SAN MIGUEL CORPORATION v CA, et. al., G.R. No.
146775, January 30, 2002
• There should be no distinction between Muslims and
non-Muslims as regards payment of benefits for
Muslim holidays. Considering that all private
corporations, offices, agencies, and entities or
establishments operating within the designated Muslim
provinces and cities are required to observe Muslim
holidays, both Muslim and Christians working within
the Muslim areas may not report for work on the days
designated by law as Muslim holidays.
Bonus, an act of gratuity, not demandable
*PRODUCERS BANK OF THE PHILIPPINES v NLRC and
PRODUCERS BANK EMPLOYEES ASSOCIATION, G.R.
No. 100701, March 28, 2001
• A bonus is an amount granted and paid to an
employee for his industry and loyalty which contributed
to the success of the employer's business and made
possible the realization of profits. It is an act of
generosity granted by an enlightened employer to spur
the employee to greater efforts for the success of the
business and realization of bigger profits. The granting
of a bonus is a management prerogative, something
given in addition to what is ordinarily received by or
 strictly due the recipient. Thus, a bonus is not a
demandable and enforceable obligation except when it
is made part of the wage, salary or compensation of
the employee However, an employer cannot be forced
to distribute bonuses which it can no longer afford to
pay. To hold otherwise would be to penalize the
employer for his past generosity.
• To impose upon an employer already giving his
employees the equivalent of a 13th month pay would
be to penalize him for his liberality and in all
probability, the employer would react by withdrawing
the bonuses or resist further voluntary grants for fear
that if and when a law is passed giving the same
benefits, his prior concessions might not be given due
credit.
Voluntary Arbitrator’s jurisdiction
*UNION OF NESTLE WORKERS CAGAYAN DE ORO
FACTORY et. al., v NESTLE PHILPPINES, INC., G.R. No.
148303, October 17, 2002
• The fact that the complaint was denominated as one
for injunction does not necessarily mean that the RTC
has jurisdiction. Well-settled is the rule that jurisdiction
is determined by the allegations in the complaint.
• Considering that the Drug Abuse Policy is a company
personnel policy, it is the Voluntary Arbitrators or Panel
of Voluntary Arbitrators, not the RTC, which exercises
jurisdiction over this case. Article 261 of the Labor
Code, as amended,
Company policies, as a general rule, binding
*SANTIAGO ALCANTARA, JR. v THE COURT OF
APPEALS and THE PENINSULA MANILA, INC., G.R. No.
143397, August 6, 2002
• Company policies and regulations are, unless shown
to be grossly oppressive or contrary to law, generally
binding and valid on the parties and must be complied
with until finally revised or amended unilaterally or
preferably through negotiation or by competent
authority.
SOLE has exclusive authority to hear and decide all
issues incidental in a labor case; RTC’s jurisdiction to
issue TRO in labor cases
*GORGONIO S. NOVA v JUDGE SANCHO DAMES II, et. al.,
A.M. No. RTJ-00-1574, March 28, 2001
• Regular courts have no jurisdiction to hear and decide
questions which arise and are incidental to the
enforcement of decisions, orders or awards rendered
in labor cases by appropriate officers and tribunals of
the Department of Labor and Employment. Corollarily,
any controversy in the execution of the judgment shall
be referred to the tribunal which issued the writ of
execution since it has the inherent power to control its
own processes in order to enforce its judgments and
orders.
• True, an action for damages lies within the jurisdiction
of a regional trial court. However, the regional trial
court has no jurisdiction to issue a temporary
restraining order in labor cases.
An action for recovery does not interfere with NLRC’s
jurisdiction
*YUPANGCO COTTON MILLS, INC. v COURT OF
APPEALS, et. al., G.R. No. 126322, January 16, 2002
• A separate civil action for recovery of ownership of the
property would not constitute interference with the
powers or processes of the Arbiter and the NLRC
which rendered the judgment to enforce and execute
 upon the levied properties. The property levied upon
being that of a stranger is not subject to levy. Thus, a
separate action for recovery, upon a claim and prima-
facie showing of ownership by the petitioner, cannot be
considered as interference.
Posting of a cash or surety bond jurisdictional.
*CORDOVA et.al. v. KEYSA’S BOUTIQUE, G.R. No.
156379. September 16, 2005.
• Art. 223 of the Labor Code provides that in case of a
judgment involving a monetary award, an appeal by
the employer may be perfected only upon the posting
of a cash or surety bond issued by a reputable bonding
company duly accredited by the Commission in the
amount equivalent to the monetary award. The posting
of a cash or surety bond for the perfection of an appeal
is jurisdictional, without which the NLRC does not have
the authority to review and revise the judgment of the
labor arbiter. Therefore, the decision of the Labor
Arbiter has already become final and executory absent
such posting of a bond as provided in the Labor Code.
Test to determine regular employment
*UNIVERSAL ROBINA CORPORATION v. CATAPANG,
G.R. No. 164736. October 14, 2005.
• The primary standard of determining regular
employment is the reasonable connection between the
particular activity performed by the employee to the
usual trade or business of the employer. The test is
whether the former is usually necessary or desirable in
the usual business or trade of the employer.
• Also, the performance of a job for at least a year is
sufficient evidence of the job’s necessity if not
indispensability to the business. This is the rule even if
its performance is not continuous and merely
intermittent. The employment is considered regular,
but only with respect to such activity and while such
activity exists.
• The practice of entering into employment contracts
which would prevent the workers from becoming
regular should be struck down as contrary to public
policy and morals.
Validity of a Redundancy Program
*DAP v. CA, G.R. No. 165811. December 14, 2005.
• The employer must comply with the following
requisites to ensure the validity of the redundancy
program:
1) a written notice served on both the employees and
the Department of Labor and Employment (DOLE)
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;
4) fair and reasonable criteria in ascertaining what
positions are to be declared redundant and
accordingly abolished.
• If the dismissal is based on a just cause under Article
282 but the employer failed to comply with the notice
requirement, the sanction to be imposed upon him
should be tempered because the dismissal process
was, in effect, initiated by an act imputable to the
employee.
• If the dismissal is based on an authorized cause under
Article 283 but the employer failed to comply with the
notice requirement, the sanction should be stiffer
 because the dismissal process was initiated by the
employer’s exercise of his management prerogative
Constructive Dismissal
*VETERANS SECURITY AGENCY v. VARGAS, G.R. No.
159293. December 16, 2005.
• 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.
• Abandonment, as a just and valid cause for
termination, requires a deliberate and unjustified
refusal of an employee to resume his work, coupled
with a clear absence of any intention of returning to his
or her work.
• Abandonment is incompatible with constructive
dismissal.
• Article 286 applies only when there is a bona fide
suspension of the employer’s operation of a business
or undertaking for a period not exceeding 6 months.
• In security agency parlance, being placed “off detail” or
on “floating” status means “waiting to be posted.”
• It is the inherent prerogative of an employer to transfer
and reassign its employees to meet the requirements
of its business. Be that as it may, the prerogative of the
management to transfer its employees must be
exercised without grave abuse of discretion. The
exercise of the prerogative should not defeat an
employee's right to security of tenure. The employer’s
privilege to transfer its employees to different
workstations cannot be used as a subterfuge to rid
itself of an undesirable worker.
Separation Pay
*HA YUAN RESTAURANT v. NLRC (February 2006)
• Separation pay shall be allowed as a measure of
social justice only in those instances where the
employee is validly dismissed for causes other
than serious misconduct or those reflecting on
his moral character. Where the reason for the
valid dismissal is, for example, habitual intoxication
or an offense involving moral turpitude, like theft or
illicit sexual relations with a fellow worker, the
employer may not be required to give the
dismissed employee separation pay, or financial
assistance, or whatever other name it is called, on
the ground of social justice.
• Separation pay therefore, depends on the cause of
dismissal, and may be accordingly awarded
provided that the dismissal does not fall under
either of 2 circumstances: (1) there was serious
misconduct, or (2) the dismissal reflected on the
employee’s moral character
Preventive Suspension
*GATBONTON v. NLRC, G.R. NO. 146779. JANUARY 23,
2006.
• Preventive suspension is a disciplinary measure for
the protection of the company’s property pending
investigation of any alleged malfeasance or
misfeasance committed by the employee.
• The employer may place the worker concerned under
preventive suspension if his continued employment
poses a serious and imminent threat to the life or
property of the employer or of his co-workers. (Section
8, Rule XXIII, Book V of the Omnibus Rules
Implementing the Labor Code)
Reinstatement; payment of backwages
*TRIAD SECURITY & ALLIED SERVICES, INC, ET AL. v
ORTEGA, G.R. NO. 160871. February 6, 2006.
• An order of reinstatement by the labor arbiter is not the
same as actual reinstatement of a dismissed or
separated employee. Thus, until the employer
continuously fails to actually implement the
reinstatement aspect of the decision of the labor
arbiter, their obligation to the illegally dismissed
employee, insofar as accrued backwages and other
benefits are concerned, continues to accumulate. It is
only when the illegally dismissed employee receives
the separation pay (in case of strained relations) that it
could be claimed with certainty that the EER has
formally ceased thereby precluding the possibility of
reinstatement. In the meantime, the illegally dismissed
employee’s entitlement to backwages, 13th month pay,
and other benefits subsists. Until the payment of
separation pay is carried out, the employer should not
be allowed to remain unpunished for the delay, if not
outright refusal, to immediately execute the
reinstatement aspect of the labor arbiter’s decision.
• Further, the employer cannot refuse to reinstate the
illegally dismissed employee by claiming that the latter
had already found a job elsewhere. Minimum wage
earners are left with no choice after they are illegally
dismissed from their employment, but to seek new
employment in order to earn a decent living. Surely, we
could not fault them for their perseverance in looking
for and eventually securing new employment
opportunities instead of remaining idle and awaiting the
outcome of the case.
SSS Claims
*SSS v AGUAS, G.R. No. 165546. February 27, 2006
• For purposes of claiming death benefits from the SSS,
a wife who is already separated de facto from her
husband cannot be said to be "dependent for support"
upon the husband, absent any showing to the contrary.
Conversely, if it is proved that the husband and wife
were still living together at the time of his death, it
would be safe to presume that she was dependent on
the husband for support, unless it is shown that she is
capable of providing for herself.
Loss of confidence
*Perez v The Medical City General Hospital, G.R. No.
150198. March 6, 2006.
• The power to dismiss an employee is a recognized
prerogative that is inherent in the employer’s right to
freely manage and regulate his business. An employer
cannot be expected to retain an employee whose lack
of morals, respect and loyalty to his employer or regard
for his employer’s rules and appreciation of the dignity
and responsibility of his office has so plainly and
completely been bared. An employer may not be
compelled to continue to employ a person whose
continuance in service will patently be inimical to his
interest. The dismissal of an employee, in a way, is a
measure of self-protection. Nevertheless, whatever
acknowledged right the employer has to discipline his
employee, it is still subject to reasonable regulation by
the State in the exercise of its police power. Thus, it is
within the power of the Supreme Court not only to
scrutinize the basis for dismissal but also to determine
if the penalty is commensurate to the offense,
notwithstanding the company rules.
• In this case, the employees were dismissed for
pilfering hospital property. The SC found that the
 penalty of dismissal was not proportionate to the 5. It is mistakenly based on a crucial assumption
gravity of the offense considering the circumstances which concededly is a nonfact;
present in the case. One of the dismissed employees 6. It is unlawful, arbitrary or capricious; and
has been employed by the Hospital for 19 years. the 7. It is contrary to public policy.
other one lays claim to 7 years. During their long
tenure with the Hospital, it does not appear that they
have been the subject of disciplinary sanctions and
they have kept their records unblemished. Moreover,
the SC took into account the fact that they are not
managerial or confidential employees in whom greater
trust is placed by management and from whom greater
fidelity to duty is correspondingly expected.

Voluntary Arbitration
UNITED KIMBERLY-CLARK EMPLOYEES UNION, v
KIMBERLY – CLARK PHILIPPINES, INC., G.R. No. 162957.
March 6, 2006.
• As a general proposition, an arbitrator is confined to
the interpretation and application of the CBA. He does
not sit to dispense his own brand of industrial justice:
his award is legitimate only in so far as it draws its
essence from the CBA, i.e., when there is a rational
nexus between the award and the CBA under
consideration. An arbitral award does not draw its
essence from the CBA; hence, there is an
unauthorized amendment or alteration thereof, if:
1. It is so unfounded in reason and fact;
2. It is so unconnected with the working and purpose
of the agreement;
3. It is without factual support in view of its language,
its context, and any other indicia of the parties'
intention;
4. It ignores or abandons the plain language of the
contract;