LABOR STANDARDS

COURSE OUTLINE

For Far Eastern University Institute of Law 1st Sem, AY 2013-2014

Atty. Ada D. Abad 0917-526-9732

Course description:
[Cases, recitations and lectures, 3 hours a week 3 units] Study of the General Principles, provisions and jurisprudence of the Labor Code Books I-IV, as well as other related Department Orders and administrative regulations, on the minimum terms and conditions of employment that an

employer must provide to its workers, and minimum economic security of all workers and their families in case of loss of earnings due to death, old age, disability, dismissal, injury or disease. Methodology: A combination of the Socratic method of recitation, case studies and a highly participatory and interactive approach to practical situations and problems confronting employees within the company. The study of law, while inherently a serious matter, can also be fun!
Course requirements: Recitation, quizzes, group activities and attendance: 40% Midterm examinations (30%) Final Examinations (30%)

A. INTRODUCTION
1. Constitutional and statutory basis 1.1 1.2 1.2 1.3 1.4 Consti., art. 2, secs. 9-14, 18 and 20. Consti., art. 3, secs. 10 and 18 Consti., art. 13, sec. 3 Labor Code, art. 112 Civil Code, Article 1700

1.5 Balancing of interests and paradigm shift towards mutual cooperation Toyota Motor Phils. Workers vs. NLRC, 537 SCRA 171 1.6 Concept of social justice: Conference of Maritime Manning Agencies vs. POEA, 243 SCRA 667 [1995] (citing the cases of Calalang vs. Williams and Eastern Shipping vs. POEA) Philippine Long Distance Telephone Company vs. NLRC and Abucay, G.R. No. 80609, 23 August 1988 (En Banc decision) 1.7 Employment not merely a contractual relationship: Gonzalez vs. NLRC, 313 SCRA 169 [26 August 1999] Capitol Medical Center vs. Meris, 470 SCRA 125 [2005] 1.8 Liberal interpretation of law in favor of workers Price vs. Innodata Phils., 567 SCRA 122 [2008] 1.9 But management rights likewise protected: National Federation of Labor Vs. NLRC, 327 SCRA 158 [2000] Ledesma Jr. vs. NLRC, 537 SCRA 358 [2007] Leyte IV Electric Cooperative vs. Leyeco IV Ees Union-ALU, 537 SCRA 154 [2007]

B. EMPLOYER-EMPLOYEE RELATIONSHIP
(Azucena Volume I, pp. 16-27; Fernandez, pp. 61-97) 1. Employer defined: Art. 212 (e), LC; DOLE Dept. Order 40 [2003], R1 S1 (s) 2. Employee defined: Art. 212 (f), LC DOLE Dept. Order 40 [2003], R1 S1 (r) 3. Employer relationship as matrix 3.1 Concept of employer-employee relationship 3.2 Tests to determine relationship the existence of employer-employee

(Memory aid: South West Disaster Control) a. Selection and hiring b. Payment of Wages c. Power of Dismissal d. Control test Cases: LVN vs. Phil. Musicians Guild, 1 SCRA 132 Rosario Bros. vs. Ople, 131 SCRA 72

Tongco vs. Manufacturers Life Insurance Co. Inc., G.R. No. 167622, 07 November 2008.

Baguio et. al., vs. NLRC, 202 SCRA 465 (1991) Manila Golf vs. NLRC, 237 SCRA 207 Cabalan vs. NLRC, 241 SCRA 643 [1995]
Dealco Farms vs. NLRC, G.R. No. 153192, 30 Jan. 2009 Charlie Jao vs. BCC Products Sales and Terrance Ty, G.R, 163700, 18 April 2012

4. WHEN EMPLOYER-EMPLOYEE RELATIONSHIP DOES NOT EXIST Re: VALID JOB CONTRACTING ARRANGEMENTS 4.1 Management prerogative to contract out of services Asian Alcohol Corp vs. NLRC, 305 SCRA 416 [1999] Meralco vs. Quisumbing, 22 February 2000 4.2 Independent contractor/ Job-contracting vs. Labor-only contracting; requirements and negative list under Dept. Order No. 18-02 (Art. 106, LC; Dept. Order No. 18-02 [21 February 2002]) Philippine Airlines vs. Ligan, 548 SCRA 181 (2008). Escanias vs. Shangri-Las Mactan, G.R. No. 178827, 04 Mar 2009
Coca-Cola Bottlers vs. Dela Cruz, GR 184977, 07 Dec 2009

4.3 Examples Manufacturing company vs. forwarding agent

Temic Automotive Phils. vs. Temic Automotive Phils. Employees Union FFW, G.R. No. 18695, 23 December 2009

Television Company vs. Talent

Jose Sonza vs. ABS-CBN, G.R. No. 138051, 10 June 2004 Compare with: ABS-CBN vs. Nazareno, GR 164156, 26 Sept 2006 and Farley Fulache et al vs. ABS-CBN, GR 183810, 21 Jan 2010

Insurance company vs. commission agents Insular Life vs. NLRC, 179 SCRA 459 Shoe store vs. shoe-shine boys Besa vs. Trajano, 146 SCRA 501 Softdrinks company vs. agents selling softdrinks Mafinco vs. Ople, 70 SCRA 139 Company vs. collecting agents Singer Sewing Machine Co. vs. Drilon, 193 SCRA 270

Industrial Partner vs. employee Sy vs. CA, 398 SCRA 301 [27 Feb. 2003] Medical residency vs. employee Felix vs. Buenaseda, 240 SCRA 139 [1995]
UERM Memorial Medical Center Resident Doctors Union vs. Laguesma, GR 125425-26, [24 Nov. 1993] NEW RULING - CONTRA ON MEDICAL RESIDENCY: Calamba Medical Center, Inc. vs. NLRC, G.R. No. 176484, 25 November 2008

4.4 Liability of principal for unpaid wages of the employees of job contractor Solidary liability as to wages Development Bank of the Phils. Vs. NLRC, 233 SCRA 250
United Special Watchman Agency vs. CA, 405 SCRAS 432 [08 July 2003]

New Golden Builders & Development Corp. vs. CA, 418 SCRA 411 [11 Dec. 2003] also for service incentive leave pay and 13 th mo. pay Compare with: Liability of principal to labor-only contracting employees solidary liability as to ALL claims PCI Automation vs. NLRC, 252 SCRA 493 [1996] William Tiu vs. NLRC, 254 SCRA 1 [1996]
San Miguel Corp. vs. MAERC Integrated Systems, 405 SCRA 579 [10 July 2003]

4.5 Effect of DOLE Certification as legitimate job contractor Ramy Gallego vs. Baery Phils. G.R. No. 179807, 31 July 2009 Compare with: Coca Cola Bottlers vs. Ricky dela Cruz, supra. and Coca Cola Bottlers vs. Agito G.R.No. 179546, 13 Feb 2009 5. Coverage of Labor Code, Art. 6: (Azucena Volume I, pp. 23-27; Fernandez, pp. 76-87) 5.1 Covered employment a. b. c. d. Industrial and agricultural employees Employees of labor organization Employees of independent contractor Employees of non-stock, non-profit organizations

5.2 Excluded employment a. Government employees

Republic vs. Court of Appeals, 180 SCRA 428

Manila Public School Teachers Assn. Vs. Laguio, 200 SCRA 323 Carino vs. Commission on Human Rights, 204 SCRA 283

Special circumstances: Government employees with CBA Abanilla vs. Comm on Audit, 468 SCRA 87 [2005] Compare with: Employees of GOCCs Lumanta vs. NLRC, 170 SCRA 79

b. Exempted employers c. Managerial employees, with respect to right to unionize d. Corporate Officers, SEC jurisdiction Prudential Bank vs. Clarita Reyes, 352 SCRA 316 [2001] Matling Industrial and Commercial Corporation vs. Coros G.R. No.. 157802, 13 October 2010
Arsenio Z. Locsin vs. Nissan Lease Phils. Inc. and Luis Banson, G.R. No. 185567, October 20, 2010. Renato Real vs. Sangu Philippines, Inc. G.R. No.168757, 19 January 2011

C. LABOR STANDARDS 1. WAGES

Art. 97, 98, 99, 101-119, LC; R7 and R8 B3 IRR LC 1.1 1.2 1.3 Exclusions from coverage Facilities vs. Supplements Wages vs. Salaries Gaa vs. CA. GR No. L-44169, 03 Dec 1985, 140 SCRA 304 Jose Songco vs. NLRC, GR No. L-50999, 23 Mar 1990, 182 SCRA 610 Payment of Wages (Art. 102-105, 110-11, LC; B3 R8 S1-8; Republic Act No. 6727, Sec. 7) LMG Chem vs. Secretary of Labor, GR 127422, 17 April 2001 North Davao Mining vs. NLRC, GR 112546, 13 March 1996 Aklan Electric vs. NLRC, 323 SCRA 258 Bonus, not part of basic salary/wage Protacio vs. Layang Mananghaya, GR 168654, 25 March 2009 Marcos vs. NLRC, GR 111744, 08 Sept 1995 Lepanto Ceramics vs. Lepanto Ceramics Employees Association, GR 180866, 02 March 2010 Non-diminution of benefits Manila Jockey Club Employees Union vs Manila Jockey Club, GR 16770, 07 March 2001 5

1.4

1.5

1.6