COVERAGE

LABOR LAW AND SOCIAL LEGISLATION

2016 BAR EXAMINATIONS

I. Fundamental Principles and Policies

A. Constitutional provisions
1. Article II, Secs. 9, 10, 11, 13, 14, 18, 20.

SECTION 9. The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living, and an improved quality of life for all.

SECTION 10. The State shall promote social justice in all phases of national development.

SECTION 11. The State values the dignity of every human person and guarantees full respect for human
rights.

SECTION 13. The State recognizes the vital role of the youth in nation-building and shall promote and
protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the youth
patriotism and nationalism, and encourage their involvement in public and civic affairs.

SECTION 14. The State recognizes the role of women in nation-building, and shall ensure the fundamental
equality before the law of women
and men.

SECTION 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers
and promote their welfare.

SECTION 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to
needed investments.

2. Article III, Secs. 1, 4, 7, 8, 10, 16, 18(2).

SECTION 1. No person shall be deprived of life, liberty, or property without due process of law, nor shall any
person be denied the equal protection of the laws.

SECTION 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or the
right of the people peaceably to assemble and petition the government for redress of grievances.

SECTION 7. The right of the people to information on matters of public concern shall be recognized. Access
to official records, and to documents, and papers pertaining to official acts, transactions, or decisions, as well
as to government research data used as basis for policy development, shall be afforded the citizen, subject
to such limitations as may be provided by law.

SECTION 8. The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.

SECTION 10. No law impairing the obligation of contracts shall be passed.

SECTION 16. All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-
judicial, or administrative bodies.

SECTION 18. (1) No person shall be detained solely by reason of his political beliefs and aspirations.

(2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party
shall have been duly convicted

3. Article XIII, Secs. 1, 2, 3, 13, 14.

ARTICLE XIII
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Social Justice and Human Rights

SECTION 1. The Congress shall give highest priority to the enactment of measures that protect and enhance
the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove
cultural inequities by equitably diffusing wealth and political power for the common good.

To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its
increments.

SECTION 2. The promotion of social justice shall include the commitment to create economic opportunities
based on freedom of initiative and self-reliance.

Labor

SECTION 3. The State shall afford full protection to labor, local and overseas, organized and unorganized,
and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of
all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be entitled to security of tenure, humane
conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.

Health

SECTION 13. The State shall establish a special agency for disabled persons for rehabilitation, self-
development and self-reliance, and their integration into the mainstream of society.

Women

SECTION 14. The State shall protect working women by providing safe and healthful working conditions,
taking into account their maternal functions, and such facilities and opportunities that will enhance their
welfare and enable them to realize their full potential in the service of the nation.

B. Civil Code

1. Article 19, 20, 21

CHAPTER 2
HUMAN RELATIONS (n)

Art. 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice,
give everyone his due, and observe honesty and good faith.

Art. 20. Every person who, contrary to law, wilfully or negligently causes damage to another, shall indemnify
the latter for the same.

Art. 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to morals, good
customs or public policy shall compensate the latter for the damage.

2. Article 1700
3. Article 1702

SECTION 2. - Contract of Labor (n)

Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with
public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to
the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working
conditions, hours of labor and similar subjects.

Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest or
convenience of the public.

Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the
safety and decent living for the laborer.
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C. Labor Code
Books I, II, III, V, VI and VII

1. Article 3 (cf to Art 13 of 1987 Constitution)

Article 3. Declaration of basic policy. The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and humane conditions of work.

2. Article 13B (cf RA 8042 as amended RA 10022)

"Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not: Provided, That any person
or entity which, in any manner, offers or promises for a fee, employment to two or more persons
shall be deemed engaged in recruitment and placement.

3. Article 3 and 4 (cf Article 2 of 1987 Constitution)

Article 3. Declaration of basic policy. The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and humane conditions of work.

Article 4. Construction in favor of labor. All doubts in the implementation and interpretation of the
provisions of this Code, including its implementing rules and regulations, shall be resolved in favor
of labor.

4. Articles 18, 22, 26, 34-39

Article 18. Ban on direct-hiring. No employer may hire a Filipino worker for overseas employment
except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision.

Article 22. Mandatory remittance of foreign exchange earnings. It shall be mandatory for all
Filipino workers abroad to remit a portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries in the country in accordance with rules and regulations prescribed
by the Secretary of Labor.

Article 26. Travel agencies prohibited to recruit. Travel agencies and sales agencies of airline
companies are prohibited from engaging in the business of recruitment and placement of workers
for overseas employment whether for profit or not.

Article 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of
authority: To \ charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;

To furnish or publish any false notice or information or document in relation to recruitment or

employment;

To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.

To induce or attempt to induce a worker already employed to quit his employment in order to offer
him to another unless the transfer is designed to liberate the worker from oppressive terms and
conditions of employment;

To influence or to attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency;

To engage in the recruitment or placement of workers in jobs harmful to public health or morality or
to the dignity of the Republic of the Philippines;
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To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;

To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may
be required by the Secretary of Labor.

To substitute or alter employment contracts approved and verified by the Department of Labor from
the time of actual signing thereof by the parties up to and including the periods of expiration of the
same without the approval of the Secretary of Labor;

To become an officer or member of the Board of any corporation engaged in travel agency or to be
engaged directly or indirectly in the management of a travel agency; and

To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules and
regulations.

Article 35. Suspension and/or cancellation of license or authority. The Minister of Labor shall have
the power to suspend or cancel any license or authority to recruit employees for overseas
employment for violation of rules and regulations issued by the Ministry of Labor, the Overseas
Employment Development Board, or for violation of the provisions of this and other applicable laws,
General Orders and Letters of Instructions.

Chapter III
MISCELLANEOUS PROVISIONS

Article 36. Regulatory power. The Secretary of Labor shall have the power to restrict and regulate
the recruitment
and placement activities of all agencies within the coverage of this Title and is hereby authorized to
issue orders and promulgate rules and regulations to carry out the objectives and implement the
provisions of this Title.

Article 37. Visitorial Power. The Secretary of Labor or his duly authorized representatives may, at
any time, inspect the premises, books of accounts and records of any person or entity covered by
this Title, require it to submit reports regularly on prescribed forms, and act on violation of any
provisions of this Title.

Article 38. Illegal recruitment. Any recruitment activities, including the prohibited practices
enumerated under Article 34 of this Code, to be undertaken by non-licensees or non-holders of
authority, shall be deemed illegal and punishable under Article 39 of this Code. The Department of
Labor and Employment or any law enforcement officer may initiate complaints under this Article.

Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense
involving economic sabotage and shall be penalized in accordance with Article 39 hereof.

Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or
more persons conspiring and/or confederating with one another in carrying out any unlawful or
illegal transaction, enterprise or scheme defined under the first paragraph hereof. Illegal
recruitment is deemed committed in large scale if committed against three (3) or more persons
individually or as a group.

The Secretary of Labor and Employment or his duly authorized representatives shall have the power
to cause the arrest and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to national security and public
order or will lead to further exploitation of job-seekers.

The Secretary shall order the search of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal recruitment activities and the closure
of companies, establishments and entities found to be engaged in the recruitment of workers for
overseas employment, without having been licensed or authorized to do so.

Article 39. Penalties.

The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P1000,000.00) shall
be imposed if illegal recruitment constitutes economic sabotage as defined herein;

Any licensee or holder of authority found violating or causing another to violate any provision of this
Title or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty of
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imprisonment of not less than two years nor more than five years or a fine of not less than P10,000
nor more than P50,000, or both such imprisonment and fine, at the discretion of the court;

Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than four years nor more than eight years or a fine of not less
than P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the
court;

If the offender is a corporation, partnership, association or entity, the penalty shall be imposed upon
the officer or officers of the corporation, partnership, association or entity responsible for violation;
and if such officer is an alien,
he shall, in addition to the penalties herein prescribed, be deported without further proceedings;

In every case, conviction shall cause and carry the automatic revocation of the license or authority
and all the permits and privileges granted to such person or entity under this Title, and the
forfeiture of the cash and surety bonds in favor of the Overseas Employment Development Board or
the National Seamen Board, as the case may be, both of which are authorized to use the same
exclusively to promote their objectives.

[EXCLUDE: Book IV]

II. Recruitment and Placement

A. Recruitment of local and migrant workers

1. Illegal recruitment (Sec. 5, R.A. No. 10022)

a) License vs. authority

b) Essential elements of illegal recruitment
c) Simple illegal recruitment
d) Illegal recruitment in large scale
e) Illegal recruitment as economic sabotage
f) Illegal recruitment vs. estafa
g) Liabilities
(i) Local recruitment agency
(ii) Foreign employer
(a) Theory of imputed knowledge
(iii) Solidary liability
h) Pre-termination of contract of migrant worker
2. Direct hiring
B. Regulation and enforcement
1. Suspension or cancellation of license or authority (Art. 35, Labor Code)
2. Regulatory and visitorial powers of the DOLE secretary
3. Remittance of foreign exchange earnings
4. Prohibited activities

III. Labor Standards

A. Hours of work
1. Coverage/Exclusions (Art. 82, Labor Code)
2. Normal hours of work
a) Compressed work week
3. Meal break
4. Waiting time
5. Overtime work, overtime pay
6. Night work (R.A. No. 10151), Night shift differential
7. Part-time work
8. Contract for piece work (see Civil Code)
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B. Wages
1. Wage vs. salary
2. Minimum wage defined, Minimum wage setting
3. Minimum wage of workers paid by results
a) Workers paid by results
b) Apprentices
c) Learners
d) Persons with disability
4. Commissions
5. Deductions from wages
6. Non-diminution of benefits
7. Facilities vs. supplements
8. Wage Distortion/Rectification [NOTE: no computation; principle only]
9. Divisor to determine daily rate [NOTE: no computation; principle only]

C. Rest Periods
1. Weekly rest day
2. Emergency rest day work

D. Holiday pay/Premium pay

1. Coverage, exclusions
2. Teachers, piece workers, takay, seasonal workers, seafarers

E. Leaves
1. Service Incentive Leave
2. Maternity Leave
3. Paternity Leave
4. Parental Leave (R.A. No. 8972)
5. Leave for Victims of Violence against Women and Children (R.A. No. 9262)
6. Special leave benefit for women

F. Service Charge

G. Thirteenth Month Pay

H. Separation Pay

I. Retirement Pay
a. Eligibility
b. Amount
c. Retirement benefits of workers paid by results
d. Retirement benefits of part-time workers
e. Taxability

J. Women Workers
a. Provisions against discrimination
b. Stipulation against marriage
c. Prohibited acts
d. Anti-Sexual Harassment Act (R.A. No. 7877)

K. Employment of Minors (Labor Code and R.A. No. 7678, R.A. No. 9231)

L. Househelpers (Labor Code as amended by R.A. No. 7655, An Act Increasing the
Minimum Wage of Househelpers; see also – Household Service under the Civil Code)

M. Employment of Homeworkers
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N. Apprentices and Learners

O. Persons with disability (R.A. No. 7277, as amended by R.A. No. 9442)
a. Definition
b. Rights of persons with disability
c. Prohibition on discrimination against persons with disability
d. Incentives for employers

IV. Termination of Employment

A. Employer-employee relationship
1. Four-fold test
2. Kinds of employment
a. Probationary
b. Regular
c. Project employment
d. Seasonal
e. Casual
f. Fixed-term
3. Job contracting
a. Articles 106 to 109 of the Labor Code
b. Department Order No. 18-A
c. Department Circular No. 01-12
d. Effects of Labor-Only Contracting
e. Trilateral relationship in job contracting

B. Dismissal from employment

1. Just Causes
2. Authorized Causes
3. Due Process
a) Twin-notice requirement
b) Hearing; meaning of opportunity to be heard

C. Reliefs for Illegal Dismissal

1. Reinstatement
a. Pending appeal (Art. 223, Labor Code)
b. Separation pay in lieu of reinstatement

2. Backwages
a. Computation
b. Limited backwages

D. Preventive Suspension

E. Constructive Dismissal

V. Management Prerogative

A. Discipline

B. Transfer of employees

C. Productivity standard

D. Grant of bonus
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E. Change of working hours

F. Rules on Marriage between employees of competitor-employers

G. Post-employment ban; non-compete and confidentiality clauses

VI. Social Welfare Legislation (P.D. 626)

A. SSS Law (R.A. No. 8282)

1. Coverage
2. Exclusions from coverage
3. Benefits
4. Beneficiaries

B. GSIS Law (R.A. No. 8291)

1. Coverage
2. Exclusions from coverage
3. Benefits
4. Beneficiaries

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

D. Employee’s compensation – coverage and when compensable

VII. Labor Relations Law

A. Right to self-organization

1. Who may unionize for purposes of collective bargaining

a) Who cannot form, join or assist labor organizations

2. Bargaining unit
a) Test to determine the constituency of an appropriate bargaining unit
b) Voluntary recognition
(i) Requirements
c) Certification election
(i) In an unorganized establishment
(ii) In an organized establishment
d) Run-off election
(i) Requirements
e) Re-run election
f) Consent election
g) Affiliation and disaffiliation of the local union from the mother union
(i) Substitutionary doctrine
h) Union dues and special assessments
(i) Requirements for validity
i) Agency fees
(i) Requisites for assessment

B. Right to collective bargaining

1. Duty to bargain collectively
a) When there is absence of a CBA
b) When there is a CBA

2. Collective Bargaining Agreement (CBA)

a) Mandatory provisions of CBA
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(i) Grievance procedure

(ii) Voluntary arbitration
(iii) No strike-no lockout clause
(iv) Labor management council
b) Duration
(i) For economic provisions
(ii) For non-economic provisions
(iii) Freedom period

3. Union Security
a) Union security clauses; closed shop, union shop, maintenance of
membership shop, etc.
b) Check-off; union dues, agency fees

4. Unfair Labor Practice in collective bargaining

a) Bargaining in bad faith
b) Refusal to bargain
c) Individual bargaining
d) Blue sky bargaining
e) Surface bargaining

5. Unfair Labor Practice (ULP)

a) Nature of ULP
b) ULP of employers
c) ULP of labor organizations

C. Right to peaceful concerted activities

1. Forms of concerted activities
2. Who may declare a strike or lockout?
3. Requisites for a valid strike
4. Requisites for a valid lockout
5. Requisites for lawful picketing
6. Assumption of jurisdiction by the DOLE Secretary or Certification of the labor
dispute to the NLRC for compulsory arbitration
7. Nature of assumption order or certification order
8. Effect of defiance of assumption or certification orders
9. Illegal strike
a) Liability of union officers
b) Liability of ordinary workers
c) Liability of employer
d) Waiver of illegality of strike
10. Injunctions
a) Requisites for labor injunctions
b) “Innocent bystander rule”

VIII. Procedure and Jurisdiction

A. Labor Arbiter
1. Jurisdiction
a) versus Regional Director
2. Reinstatement pending appeal
3. Requirements to perfect appeal to NLRC

B. National Labor Relations Commission (NLRC)

1. Jurisdiction
2. Effect of NLRC reversal of Labor Arbiter’s order of reinstatement
3. Remedies
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0

4. Certified cases

C. Bureau of Labor Relations – Med-Arbiters

1. Jurisdiction (original and appellate)

D. National Conciliation and Mediation Board

1. Nature of proceedings
2. Conciliation vs. Mediation
3. Preventive mediation

E. DOLE Regional Directors

1. Jurisdiction

F. DOLE Secretary
1. Visitorial and enforcement powers
2. Power to suspend/effects of termination
3. Assumption of jurisdiction
4. Appellate jurisdiction
5. Voluntary arbitration powers

G. Grievance Machinery and Voluntary Arbitration

1. Subject matter of grievance
2. Voluntary Arbitrator
a) Jurisdiction
b) Procedure
c) Remedies

H. Court of Appeals
1. Rule 65, Rules of Court

I. Supreme Court
1. Rule 45, Rules of Court

J. Prescription of actions

IMPORTANT NOTES:

1. This listing of covered topics is not intended and should not be used by the law schools as a
course outline. This was drawn up for the limited purpose of ensuring that Bar candidates are
guided on the coverage of the 2016 Bar Examinations.

2. All Supreme Court decisions - pertinent to a given Bar subject and its listed topics, and
promulgated up to May 31, 2015 - are examinable materials within the coverage of the 2016
Bar Examinations.