Labor Laws PDF

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CHAPTERI. GENERALPROVISIONS ART. 1: NAME OF THE DECREE as laOor CoAe of the Philippines (PD 442' amended) Labcr 1 Exertion by human beings of physical or mental efforts, or both' towards the productionof goods and seMces that sec{or or group In a 2. -. Also means chiefly society,witich derives its livelihood. from rendition of worK or serylces .ln exchange for compensatio! - - .Ynd"r managerialdirection(Mendoza,2001)' ART. 2: DATE OF EFFECTIVITY The Labor Code took effect on November 1' 1974 (six months after its promulgation on M a y1 , 1 9 7 4 ) . Labor Legislation - consists of statutes' iegutationJ and jurisprudence governing the reiations between capital and labor, by oroviding for certain employment standards ind a legal framework for negotlailng' aOjustinganil' administeringthose standards other incidentsof employment' an-d Note: Labor standards laws and labor relations laws are NOT mutually exclusive; they comPlementeach other' the rightsand Labor Law - The law governing frst with employees, and Juties of employers 'the terms and conditions of respect to and second' with respect.lo the em-ptoyment, ' labbr disputes arising from collective bargaining respecting . such terms ancl conditions. Itsmaior divisiqts in(udQ,' , . 'r " ' 1. The Law on Labor Standards 2. The Law on Labor Relations
Note: Althoughthe distinctionbeWeen labor for J"naaros ant labor relations is useful For overlap' reality in they purposes, "t"O"ti" instance,ihe grievance machineryis a laDor of reiations matter Out very often the subject as sucn standards labor is the complaint action' overtimework or a disciplinary unpaiO 4' (Azucena,2007) with The Law on Labor Standards Deals of hours wages' to as standards the minimum of conditions dnd work and other terms their provide must employers that empioyment emPloYees. the The Law on Labor Relations Defines the as well as duties and slatus, rights gover! the iniiit,riionir mechanisms that and' collec-tiveinteractions between inOiviOuaf their and -' emPloYers, emPtoYees representatives. in scope Note: Social legislation is broader laws labor all because legisiation inan tauor 169islationsbut not all social "*ilr are labor laws' "i" legislbtions
EXECUTIVECOMMITIEE: DJoANtvlE JoMARE JUNASA DU chairperson for. academ'rcs' McxsES. vke' TUMACDER JosHUA VILLENAoverall chairperson, MINISTER EZEKIEL MAVERICK tutruretu MICAELAtrA ANA ;;.h;t;;"'fot,t',fgT: for edp' JASSEN chairpersonfor hotet operations,MARTE vice'chairperson fURZOt't lfeH bteHR t"I*"' chairpersonfor secretaria!JAcXti 1OU Ut tUC vice-cnairpersoiifor' logistics nnip-riGi "i.*"tt"irperson labor SUBJECTCOTUMITIEE edp, NEOVALERIO subject(hair' PINKYVELOSO assistant SALENDAB subjectchak, AYLAHERAZADE TALLEDO CHRISflAN HAROLD
lesbhtion social rnr*oi6oir?l.ui, ,.r"ii""', ooHnnrnmcrs YLADE tvrRRruesre* slndards,
Saidamen'Josl MEMBERS: Torres' RamaYana toleen Llmblno,. Karlgn Pambid' Jose carlos Gyi.li,-lle oroa, Kado Diatogo va"*: ii.;r-it'ii" ' l.' -'r : AngetoDaviti,FomilleDeannelagasca,Raynanlarosa
Th Slatr snd l ororole tne princrp,e ol sra.eo resoons bitir/ oeMepr workers ar emotoyers dnd lhe D,.ferenrial use ot .1 -odes votunlary sefl, ng dtrputFs, Incjud,ng Lonc,tido^ dno sna.t eTlo.ce rnetr rutL8' conprar ce Ilerewth to toster Inoustflat peace The State shall regutate the relarons DeMee. wo kers and e-p,oyets recognzr.g the rgnt o, tabor to its .u9 shafe in ihe fruits of production and the nght of enterprises to fea$nable returns or Inve$ments, and to expansion aro groMh Art. il, Sec. I The State sna t p,orote a jusl Jnd oynamtc social orde,thal Ml,ercure lne prospeittv ard ndeFnde-ce of tne .aton h" peoo,e ici povedv rhrough :lo ll:" pot ctes thai prov,oe adequale socral s.sve, ororde fLI enployren]. a risrng srandard ot ljvirg ard .nproveo qLalilv ol rrc tor atl 3. Art. il, Sec.18 The Stde d1-as tabor.s a pnmary sodal ecolom c to.ce t sfa,' oroted tne nqnrs or workers :nd promote therr welfare 4 Art ilt. Sec. I The.r.gnl oi tFe reopte, inc,udtng thcse e-mployed i lhe oublc ard privae iectore IO torf ultons assoctalions, o. societc5 ror purposes not corFary to taw shalt not oe abndgd 5. Art.|il, sec.18(2) No hvolunlary seryhLde In any form shd| ext$ excepl as : puntshmert for a crjnre wn-ereot.be pady shalt have been duty 6. Art. Xil, Sec. 12 2.
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undtr Lahr Standards (TReSH) '. K'gnr ro secuflty oflenure z Rtght to Egcerve a tiv ng wage J. <rg1 10 Share rl the Funs or proouc0on, and 4. Righr to work under tlumare @ndttons
Under Labor Rel.tions {OCEp) 1 Rtght to grganrze themset;es z. Rtght to gomucl co,lectve bargaintng ot negotidion with management: _ . r. Rtght to Engage il peacefut @Dcened ac[vtr6 including $rke, and _ 4. Rtght tO padjctpate In policy ard sec6ton,making ffocses
Constitutional Mahdates L At1.Xlil,Sec.3 The State shall efford tutl protedion ro law, tocal and oversees, organiz& and and pfomote fuil emdoyment :f9rSaDrtr oi enptoyment opponjn,Lies .tro-eqLat;ty It shatl guarantee il.e nghts of ail workeE ro.sdlorganizdion, colledtve bdrg;,nhg ano negotiations and peaceful co;eded aqtvttes, including the rrgnt to stike In aeoroance witn law They shail be emtitd to securiiy of tenuie, humane ol wd end a r.ving mqe. :?lotr'9n:. rney snajt al$ padicipate in F]tq a-nd oectston_mklng proce$ affed;ng thetr ngnF and benerits as may be provided by
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Rd# ' kws Ciil hde capnal Art. 1700. the rclation beMen a and labor are not merely @ntdual. with Public They are so imprFsd mus yield interEt that labor conhas to the common god. Therefole, such to the special contracts are ilbjed on labol unions, collective lare lockouts ddkes and hrgaining, wages, wolking cl6ed shop, conditions, hours of labor and similar subjeds. 1701. Neither capnal nor labor b M. againS the shall ad opprsively ot the inter6t oiher, o|mpak @nwnience of the public se of doubt, all labol c. Art. fi02:1^ legrsrailore a.d all labor @nirads in favor of the shall te con*rud safety and decent livng fot lhe lamrer. which d Art. 1703. No contad pradicallY amounts to involuntary guise any srvitude, under whatsoever, shall be valid2 RevisedPenalCode and Art.2N. Famation, naintenance prohibitiil of capital d of cmbinatiffi or threats. - fhe labor through idence penalty of areSo mayo. and a fine not exceeding.3oo pees shall be impo*d upon any pereon who, for the pulP6e oi orgarizing, maintarnrng or prevening coalitions of capital or labor, stiike d sha labotere or lock-out of empoye6, employ violence or threab in such a degree as to @mpd or for the labre6 or employers in the lree and legal exercise of thef indu*ry or wo*, ifthe ad shall not conditde a hore serious ofiense in acmrdance wih the prcMsions of this Code. 3 Specia/Laws a. SSS Law b. GSls Law ,1 e\ Ndflohal HeAlh'tNrandAct:F$' d. Pdehit Lve Ad e. Rdirement Pay Law . I Home Mutual Development Fund Lil g Anl-Sexual Harassmeil Acl Ad h. Anilchild hbr i.13'MonthPayLil j. Migrant Workers and Overeeas FillpinosAdol 1995 (R-A No. 8042) k. Comprehensive Agrarian Reform Lil lor Public Health L Magna Cada WorkeE 7699) m. Umfred Podability Lil{RA S@ial Just@ as the Aim: Social justice is nor nor d6porsm, nefrher communism, d domism nor anarchy, but the huhaniaiion of social and law and the equaliation judice rn economic forc6 by the State so that its ratonal and obiectively secular conceFlon Social justce mav d least be apploximatd WELFARE me;m the PROMOTION OF ilE of al, peope, tne adoptlon by the governmenl to ensure economK of feasures 'dlaled $abiltY ol all the comPoreil elements of lhe society through the malnlenance or prooer In hE economrc ano social eqJ'libnJr oI the the tembG of intetrelatons he thtough consttutionaly @mmunitv adoption of measures legally justifiable or through the exerclse of enr*onsfdionally, ol. a the existenc pwere undeiylng princlple d oovernmeils, on lh; tme-honord v le, lcatatang aalus papuli est suptffia 1940) Wlliams. No.47no, D@b*2' Police Power as the basis: n is the power or wthln law to enad the Governmeil @nditutional linits, to ptomde the order, _sfew. health, morals and general welfare of socleiy (People v Vqa, No 45748 AM| 5 1939) 'or lhe Provo6 Welfare Legislation minimum eco-nonic security of the worKer and his femilv in case of loss of earnings due to death, oad age, disability, dismissal injury or
It rs distnguisned from social legislaton ir upon are prdicated statdes that welhre employeGemployee relatiorehip; Mereas he
LABOR LA.W LABOR STANDARDS
ART.3: DECLARATION OF BAStc PoLIcY The State shall: (APERA) 1. Afford protection to labor, 2. Promotefull employment; 3. lnsure equal work opportunities regardless of sex, age or creed; 4. legulate the relations between workers and employers; and 5. Assure the right of workersto: (JSSC) a. iust and humaneconditions of woik: b. gelf-organization; c. gecurityof tenure;and . : d. gollectivebargaining. . lt is a shared responsibility aimed at a constitutional balance between protection to labor and prevent oppressionto capital The protection of the rights of workers cannot justify disregard of relevant facts in the constructionof the text and applicablerules in order to arrive at a disposition in favor an employee (Philippine Airlines, lnc. vs. NLRC. 201 SCRA687)
Extent of Protection to Labor: .,to an employee who is abused either by the employeror by the union leadership oi their respectiverepresentatives. ManagementRights r Under the, doctrine of management prerogative, every employer has the inherentright to regulate,accdtdingto his own discretionand judgment, all aspects of employment, including hiring, work assignments, working methods,the time, place and manner of work, work supervision, transfer of employees,lay_off of workers, and discipline,dismissal,and recall of employees (Rurat Bank of Cantilan v. Julve, GR No. 169750. February 27, 2N7). The employerhas the rightto: (CPSTR) 1. Cbnductbusiness; 2. lrescribe rules;. 3. geled and hireemployees; 4. fransfer or dischargeemployees;and 5. Seturn of investment and expansionof business., o Management prerogatives,however, are subject to limitationsprovided by (1) law, (2t contract or collective baigaining agreementsand (3) general principlesof fair play and justice (Mendoza v. Rural Bank of Lucban, GR No. l\g21, Juty 7, . 2004).
ART. 4: CONSTRUCTIONIN FAVOR oF LABOR r Construedin favor of labor tF THERE tS A DOUBT as to the meaningof tne legal and contractual provision. lf the provision is clear and unambiguous, it must be applied in accordance with its express i6rms (Meratco v. NLRC, GR No. T8T63,Juty 12,
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HOWEVER, not all labor disputes should be resolved in favor of labor. The law aGo , recognizes that management has rights -and which are also entifled to respect enforcementin the interestof faii plav (Sf. Luke's Medical Center Employee'i n3s'oc v. NLRC, GR No. t62OS3,March 7, 2007).
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ART.5: RULESAND REGULATIONS r The rules and regulations issued by the R
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Reasons for Affording Greater protection ro Empbyees 1. Thereis greatersupplythan demandfor labor; 2. In accordance withthe doctrine thatthose who havelessin lifeshould hive morein law and 3. The needfor employment by laborcomes rom vltal,andevendesperate necessity (Sanchez v. Harry Lyons Construction tnc.,GR No.L-2779, Oclober 18,19ffi).
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powers in the enforcementthereot (pASEl v. Drilon, GR No. 81958,June 30, 1988). However,a rule or regulationpromulgatedby an administrativebody in excess of its rule_ 'naking authority is void. An administrative nterpretation which takes awav benefits granted in the lary is uttra viies (CBTC Employees lJnion v. C/ave, GR No. L-495g2. January 7, 1986). ART.6: APPLICABIL|TY General Rule: The Code applies to all *orkers, whether agricultural or non_ agricultural, including employees in a 3overnment corporation incorporated under ::e corporation code (Seeu,d.S_-e_4$sio n under Att.244). Exceptions: (cC-FICL) .' '. Governmentemployees; 2 Employees of government Corpoiati6ns . createdby specialor originalchartdr(Juco v. NLRC, GR No. 98107, August 18, 1997); 3 Foreign. governments (JUSMAG_ Philippines v. NLRC, GR.A/o. 10eB1S. December15, 1994); 1 lnternational Agencies v. {Lasco UNRFNRE, GR Nos. 1OgOgU1Og17T. February 23, 1995). employees of rntergovernmental or international organizations(SEAFDEC-AeD y. NLRC. GR No. 867V3,February 14, 1992); : Qorporate officerc / Intra-coroorate disputes which fall under pD 902-4 and now fall under the jurisdiction of the Regular Courts pursuantto the Securities Regulation Code (Nacpil v. lBC, GR No. 144767,March 21, 2O02); and : Local water districts (Tanjay Water District v. Gabaton, GR Nos. 63742 and W3OO, 17 Aprit 1989) except where NLRC jurisdiction is invoked (Zamboanga City, Water Distict v. Buat, GR No. 1143gg, May 27, 1994). Agricultural or Farnr.w6rker3 onb employed - an agricuftural or farm entdrprise ind =slgned to perform tasks which are direcflv 'e ated to the agricultural activities of th6 :-Dloyer, such as cultivationand tillage of the r: d.airying, growing and harvesting of any 3;riculturaland horticultural commodities the -: sjng of poultry, or and a4y activity .livestock :edormed by a farmer as an incidentto or in :;:rjunctionwith such farmingoperations. -êre may be, in one employer, both 3,:ricultural as well as industrial workers, lrlole: The Labor Code applies with or without employment relationship between the disputants, depending on the kind of issue inyolved. The presence or absence of employer-employee relationship is itself a labor law question (Azucena, 2O07). CHAPTER 11. EMANCIPATIONOF TENANTS {P f, 27 As Amended By R.A. 6657, Cu'nprehensive Agrarian Reform Law A.K.A Grl.; 't"Ra 9700 Comprehensive Agrarian fufi;,i|?? Program Ertension with Reforms Some {Caq;er) Extended Carl*' - with An:*ndments 1 ,trrf ll, Sec.21 lf'e State shall promote comprehensive r:;'al development and agrarianreform. 2 F.,' Xlll, Sec.4 r:,e State shall, by law, undeitake an agrarian reform program founded on the right of farmers and regular farmworkers, who are landless, to own direc-tly or cotlectivelytne lands they till or, in the case of other farmworkers, to receive a j';st share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution lands, of all agricultural s,.ibjectto sLtch priorities and reasonable r::iention limits as the Congress may p.,: escribe, taking into account ecological, cevelopqrental, or equity considerations, r:rd subject to the paymgnt of just {:.r}mpensation. In determining retention limits, the State shall respect the rights of small landowners.The State shall further prcvide incentives for voluntary landsnaring. No.te: Share tenancy has been abolished bv R.A. 3844, as amended by R.A. 6389, f*," being contraryto public policy, placing in its stead a leasehold system. lt marked the movement towards the eventual
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UnderArt.
LABORLAW LABOR STANDARDS

P.O.27 v. CARL (R.A.665f) & CARPER
Land Bank
Private agricultural lands primarily devotedto rbe and corn under a s)tstem of sharecrop or lease-tenanry, whether classified as landed estate or not
Landowner may retain an area not more than 7 hectares if such landowner is cultivating such area or will now cultivateit.
'pUftGes''ttratt
not be subject to the five ' (5)hectare retention limit
private agricultural lands including other lands of the public domain suitable for agricufture (See discusslon under CARPER for exclusrbns). In no case shall the retention by the landowner exceed 5 hectares. 3 hectares may be awardedto eaci child of the landowner, if he is (1) at least 15 years of age;and (2) aclually tilling the land or directly managing the farm. Under CARPER, Provircial, city and municipal govemment units acquiring private agricultural lands by expropriation or othermodes of aiquisition to be'used for acfual, direct and exclusive pqblb.. ,.-.,
Equivalent to 2 1/2 times the average harvest of 3 normal crop years immediately preceding the promulgation ofP.D.27.
of the Philippines (LBP) shall compensate the landowner in srrch amount as may be agreed upon by the landowner and the DAR and l$P or as may be finally determinedby the court as just compensation for the land. Landsacqr,dred by benefrciaries under CARL may not be sold, transferred or conveyed for a period of 10 years excert through hereditary succession or when sold, transferred or conveyed to the Govemment, or to the LBP, or to. other qualified beneficiaies for a period of 10 years.
No tide to the land owned by tenant-farmers under P.D. 27 shall be actually issued to a tenantfarmer unless and until the tenant-farmer has becomea full-fledged member of a !ulv recognized farmefs cooperatMe. Titleto the land is not tansferable excert by hereditary succession or to the Govemmentin accordance with P.D.27.
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Elements of engaging in recruitment and placement activities: 1. The complainanthad a distinct impression that the accused had the power to send abroadfor work, and complainant 2. The complainant was convinced to part with his money in order to be so employed (People v. Goce, GR No.113161' August 29, 1995). Private Fee Charging Employment Agency - any person or entity..engaged_in the and placementof workersfor a fee recruitment which is charged, directly or indirectly,from or both. the workers or emploYers License - a document issued by the DOLE authorizing a person or entity to. operate a agency. privateemploYment Private Recruitment Entlty - any person or. association engaged in the recruitment and placement of workers, locally or overseas' without charging,directlyor indirectly,any fee from the worKersor emPloYers. Authority - document issued by DOLE to engage authorizinga person or association in recruitmentand placement activities as a privaterocruitment entitY. Seaman - any person employed in a vessel engagedin maritimenavigation. Overseas Employment - employment of a worker outside the Philippinescovered by a valid contract. (POEA Rules and Regulations 'Goveming the Recruitment and Employment of Land'Based Overseas Workers, Feb. 4 2002) Overseas Filipino Worker- refersto a person who is to be engaged,is engagedor has been engaged in a remunerated activity in a state.of on' board a *hich ne or she*iffiME&EMt
ART. 12: POLICY"OF THE STATE (ProaFaC-ReSl) 1. To Promote and maintain a state of full employmentthrough improved manpower training,allocation and utilization; 2. To &gtect every citizen by securing for him the best possibleterms and condition of employment; 3. To Facilitate a free choice of available employmentby persons seeking work in conformitywith the national interest; 4. To Facilitateand regulate the movement of workers in conformity With th'e'national interest; 5. To Regulate the employment of aliens, including the establishment of a registration and/orpermitsystem, 6. To Strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers, locally and overseas to serve national development objectives; and 7. To lnsure careful selection of Filipino workersfor overseasemploymentin order to protect the good name of the Philippines abroad. TITLEONE: RECRUITMENT AND PLACEMENT OF WORKERS CHAPTERI. GENERAL PROVISIONS A R T . 1 3 :D E F I N I T I O N S Worker - any member of the labor force, whether employedor unemployed. Recruitment and Plrcement - any act of (CETCHUP) canvassing, enli$ing, lransporting, gontracting, hiring, gtilizing or procuring workers, and includes (CRAP) gontract , services, gefeJrals,.gdvprtising . o.r promising for bmployment,locally'or abroad, whether for profit or not; Provided, that any person or entity which, in any nlanner, offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. Note: The numberof personsdealt with is not an essential ingredient of the act of recruitment and placement of workers. The proviso merely creates a presumgion (People v. Panis,GR No. L-5ffi74-77, July 11, 1986).
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an immigrant visa or residentperrnitor its equivalent in the country of destination. ART.14:EMPLOYMENT PROMOT|ON To pursue its responsibilityto promote employment opportunities, the DOLE carries out programs for local and overseas employment. Allocation of manpower resources is assignedto the: 1. Eureau of Local Employment (BLEFfor localemployment 2. Philippine Overseas and Employment Administration(pOEA) _for overseas employment)
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Note: RA tiT1g requires the establishment of Public Employment SeMce Office (pESO) in capital towns, cities anrt e{hspstrategic areas ART. 16: PRIVATERECRUITMENT
General Rule: No person or entitv shall engage i.n the recruitmentand placement of workers,locallyand overseas. lxcgptions: (p'-SpoC-MON) 1. lublic employmentoffices: 2. lrivate recruitmententities: agencies; 9 flrivate employnnent 4. Shipping or manning agents or representatives; 5. POEA; 6. Qonstruction contractors if authorized by the DOLE and the ConstructionIndustry Authority; 7. Members of the diplomatic corps (but ^ Il"S must atso go thiough POEA): 8. Qther persons or entities as may be authorized by the DOLE Secretary;anO ^ 9. lame hirees. ART.17: PoEA
1. Regulateprivatesector participation in the recruitment and overseas placement of workers through its licensing and registrationsystem; 2. lormulate and implement,in coordination with appropriate entities concerned, when necessary, a system for promoting and monitoringthe overseas employment of Filipino workers taking into consideration . their welfare and the domestic manpower requirements; 3. lnform migrant workers not only of their rightsas workersbut also of thbir rightsas human beings; 4. lnstruct and guide the workers how to assert their rights and provide the available mechanisrn to redress violation of their rights; 5. In the recruitment and placement of . workers to Service the requirementsfe:. trained and competent Filipino workers of governments foreign and their instrumentalities, and such other employers as public interest may require, deployonly to countries: (BOG) a. where the Philippineshas concluded pilateral labor agreements or arrangements; b. QbseMng and/or complying with the internationallaws and standards for migrantworkers; c. Guaranteeing to protect the rights of Filipinomigrantworkers. Adjudicatory Functions {AD) 1. Administrativecases involving violations of . licensing rules .and regulations and registration of recruitment and employment agenciesor entities;and 2. Disciplinaryaction cases and other special cases which are administrative in character,invirlvingemployers,principals, illpino migrant
Emptoymento'everopmeni eo;rd 9l:p::" (OEDB).and Nationatseamen'gdarO (NSBI.. , Prin-cipal Func{ions (FpD) 1. Eormulation, implementation, . and monitoringof overseas employmentof Filipino workers; 2. lrotection of their rights to fair and employment practices; and ^ equitable 3. Deployment of Filipinoworkersthrough government_toovemment hiring.
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The POEA has taken over the functionsof the
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.(Rqubtic Act No. l9g_gl.tow Functircns gr22) ThePOEA . : shalt: (RF|1S) 8
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San #ets ollegeof 1.!b 2011CENTRALIZED BAROPERATIONS

3. Gunrunning or pos.session of deadly 2. lf the date of employment termination weapons; occurredon or after July 15, 1995,the law 4. landalism or destroying company to apply is R. A. 8M2 Under Sec. 70, a property; overseas worker dismissed from 5. Violationof the laws and sacred practices employment without just, valid or of the host country and unjustifiedbreach authorized cause is entitled to full of employment contract; reimbursementof his placementfee Wth 6. Embezzlement of funds of the companyor interestal 12o/o Derannum. fellow worker entrusted for delivery to relatives in the philippines; Note: The clause "or for three months for 7. Creating trouble at the worksite or in the is everyyear of the unexpired term,whichever vessel, less" in the 5- oar. of Sec. 10 of RA No. 8042 8. Qambling; is declared unconstitutionaf' Oy tne SC for 9. lnitiating or joining a strike or work violating Sec. 1, Att. lll of the Constitution, stoppage where the laws of the host Sec. 18, Art. ll and Sec. 3, Art. Xlll, which countryprohibitstrikesor similaractions: accordall membersof the labor sector,without 'by 10. Commission of Eelony punishable as to place of deployment, full ,*- :. ',,.:"distinction Philippine Laws or by the host countr y; protection of their rights and welfare. (Serrano 11. Theftor robbery; . v. Gallant Maritime Services lnc. and Marlow 12. prunkenness; Navigation Co. lnc., GR No. 167614 , March 13. Drug f,ddiction or possession or trafficking 24,2009) of prohihrited drtgs; and 14. Qesertionor abandonment. However, RA 1@22 amendingRA 8O42which took effect on. May 9, 2O1O,re-enactedthe Jurisdiction Transferred to the Labor saftie provision which was declared Arbiters of the National Labor Relations unconstitutional by the Court in the Serano Commission (NLRC) (Sec.10, R.A. gO42) case. . Claims arising out of an employer_ employee relationshipor by virtue of any Due Process Required to Terminate law or contract involvi,ng Filipino workers Employmqpt for overseasdeployment including claims . Procqdural due p;ocess requires that a for. actual, moral, exemplary and other seaman must be given forms of damages. 1. Written notice of the charges against . Venue: Money claims or claims for him and damages .should be flled before the 2. Formal investigation where he can Regional Arbitrationbranch of the NLRC defend himself personallyor througha where the complainant resides or where representative before .he can be the principal office of the dismissed and disembarked from the respondenVemployer is situated, at the vessel. option of the complainant (2005 NLRC . The employer is bound to furnibh-him Rules of Procedure). two notices: 1. The written charge and Compromise Agreement case 2, The written notice of dismissal(in r Sec. 10, R.A. ffi42 allows resolution by compromise of casesfiled with the NLRC. . Any compromise/amicable setflement or voluntary aggeement on monev claims inclusive.,of damages flnderithis.rseaion shall be paid within thirty (30) days from approval of the setflement by the appropriateauthority. (Secfrbn'1A of RA 8042 as amended by RA 1m22) Rule on Premature Termination of Contract 1. lf terminatedon grounds other than those that are lawful and valid before the agreed termination date, the employerwill pai the workers their salaries conespondin! t6 tne unexpired portion of the emplovment contract (Vinta Maritime Co. v. ruinb. On No. 11 3911, January'23, 199e.
not a
9.
LABOR LAW LABOR STANDARDS

entifledto recoveris Invalid(MR yard CrewUnionv. pNR,GR No.t_iZAZ,,lity 26, 1976). 2. An agreement that diminishes the employ_ee's pay and benefits as containeO rn a pOEA_approved contract is voio, , unless such subsequent agreementis pOEA (Chaviz v. Bonto_ lpproved by 'Perez,GR No.lO7BOA, March1, rn*l: {]1imum _ Emptoyment Conditions of eas Emptoyment (c FFJW_RAF ?vef l ' for regutarworking F:IT"-"d ryages nours andovertime pay; 2 lransportation'trom point of hire to !1ee of employment andreturn; ^ lte r. tree emergencJ. rnedical and dental anO taiiiities; . treatment 4. ,lustcauses for termination of the services of theworkers; 5. Workmen's compensationbenefits and protection; ^ yar hazard 6. Repatriation of worker,s remains ': and in cree of death; _ properties 7. Assistance on remittance of workeis and allcnrances; and ^ salaries 8 and todging Frq:..and adequateOoarO facilities " or compensatory foodallowanfe Agencies Given the Duty to promote "'* welfareand rightsof migrantwbrf.i"- the r. uepaftment of Foreign Affairs (DFA); 2. DOLE: 3. POEA, 4. Overseas WorkersWelfareAdministration _ provides sociat and ;"tf;;; loYrunl services including insurance;;;;;;;regSt assistance, placement assistarice --F-iiip;;; and remittance services to overseasworkers; Under R.A. g74t. i shan providethe Fitipino ,i;;;j;;k"; his .famity issistanje i;'- iir; :!9 enrorcement of contractual obligations bv -, entities and/ortheirpn"ncipais: . l9e!!ies, .Center u. x+rt?ctTlr.ltand Monitoring (.npUl - devetops jro"gr"il';;l tiverinood the returning workersro reintegrate the : . J$urQlqg-njgrant w< tq'th.e,f;fiilippine .. i , .,oc1etfarid :.,. ?ftels 6. NSg - tasked with the setflement -'-'-"'1"' or adjudication "' of labordisputo.
Classification of OFWs 1. Sea-8ased or Seamen- those employed ' in a vessel engaged in m"riiim" navigation. 2. Land-Based- contractworkers other than a seaman including workers engaged in offshore activities whose oCcu:pation requires that majority of his working or gainfulhoursare spent on land. ART. 18: BAN ON DIRECTH|RING General Rule: Directhiring'ofFilipino workers for overseasemploymentis not filowed. Exceptions: Direct-hiring by: (DION) 1 Membersof the Diplomatic corps; 2. [nternational organizations; 3. Qiher employers as may be allowed by DOLE:and 4. lame hires - individualworkers who are able to secure contracts for overseas employment on their own efforts and representations without the assistance or participationof.any agency. Their hiring, nonethetess, shall pass through the pOEA for processingpurposes (paft ttt, Rule lil of PAEA Rules Goveming Oyerseas Employment as amended in 2O02\. Rationale of the prohibition 1. To assure ine Oest possible terms and conditionsof work to the employee;and 2. To assure the foreign employer that he hires only qualifiedFilipinoworkers. ART. 19: COMMTSSTONON FtLtptNO OVERSEAS The Commissionon FilipinosOverseas(CFO), attached to the Deparment of Foreign Affair6, replaced the Office of Emigrant Affairs. lt assists in the formulation of policies affecting Filipinos overseas and formulates ai
Ssn #ebs @ol[.ege of ?teb 2011CENTRALIZED BAROPERATIONS

entities(Sec. 7, Rule Vll, Book recruitment l, lmplementing Rulesof LC) Qualifications for Participation (CCD) (Att. 27, LC) requirement 1. Citizenship or citizens; a. Filipino b. Corporations,partnershipsor entities at least 75o/ool the authorized and voting capital stock of which is owned and controlledby Filipinocitizens. i (Art. 28,Lg Gapitalization
Exceptions to Mandatory Remittance (URU) servicemen workingin U.S. military 1. Filipino installations; 2. Where the worke/s lii-rmediate family r.riheneficiaries members,dependents, are Residing with him abroad,and 3. irnmigrantsahd Filipino professionals and employees worKing with United Nations agenciesor specialized bodies(Resolution No. 1-83, lnter-Agency Committee for lmplementationot E.O. 857). Effects of Failure to Remit '1. Workers who fail to comply with the mandatory remittance requirement shallbe suspended or excluded from the list of eligibleworkersfor overseasemployment. Subsequentviolationsshall warrant his repatriation. 2. Employers who fail to comply shall be excluded from the overseas employment program. Private employmentagenciesor entities shall face cancellation or revocationof their licenses or authorityto recruit,without prejudiceto other liabilities under existing lavrs and regulations(Sec. 9, E.O.857, December13, 1982\. CHAPTERII. REGUI.ATION OF RECRUITMENT AND PLACEMENT ACTIVITIES ART.25: PRIVATE SECTOR PARNCTPATION IN THE RECRUTTMENT" AND PLACEMENT OF WORKERS
Private employment agency for local employment proprietorship or single a. For partnership- minimum net worth of ri..::,,:i:.i.rrr.t two (2) hundredthousandpesos. - a minimumpaid up b. For corporations capital of five (5) hundred thousand pesos Privaterecruitment or manningagencyfor overseasemployment ' proprietorship or single a For - minimumcapitalization partnership of two (2) millionpesos. - a minimumpaid up ). For corporations capital of two (2) million pesos; Prqvided that those with existing licehses shal! within 4 years from effectivity hereof, increase their capitalization or paid-upcapital,as the case may be, to two (2) million pesos at the rate of two hundred fifty thousand pesos (P 250,000) every yeat. 3 fhose nof otherwisedisqualifiedby law or cther governmentregulations to engage in the recruitmentand placementof workers for overseasemployment.
P{
n
soc)
1. 2. 3. 4.
Private Sectors that can participaie (pp-
agencies; lrivate employment entities; lrivate recruitment Shipping or manning agencies; SuchQtherpersons as maybe authorized by the Secretary of Labor and Employment; and 5. Qonstructioncontractorswith a duly issued autfrority to operate private
or
11

4. Persons, partnerships or corporations which have derogatory records, subh as but not limitedto: (CPC-L) a. Those gertified to have derogatory record or informationby the National Bureau. of lnvestigation (NBl)or by the Anti-illegal Recruitment Branch of the POEA: b. Those against whom probable cause or prima facle findingof guilt for illegal recruitment or other related cases exists: c. Those gonvictedfor illegal recruitment or other related cases and/or crimes involving moralturpitude; and d. Those agencieswhose [icenses have been previouslycancelledor revoked by POEA for violation of R.A. 8042, P.D. 442 as alnckg,ed and their implementingrules and regulationsas well as the Labor Code's lmplementing Rulesand Regulations. 5. Qfficials or employees of the DOLE or other government agencies direcfly involvedin overseasemploymentprogram and their relativeswithin the 4' degree of coi-rsanguinity or affinity;and 6. Those whose license have been previously cancelled or revoked (Sec. Z Rule [, 20A2 R.ules and Regulations on the Recruitment and Employment of Land Eased Workers). ART. 29: NON-TRANSFERAB|LITy OF LICENSE OR AUTHORTTY (OPAP) 1. lt may be used only by the Qne in whose favor it was issued; hence, it cannot be assigned, conveyed or transferredto any other person or entity. 2. lt must be used only in the Place stated in the license. 3. The recruitment and placement activities must be undertaken at their [uthorized official addresses. 4. lrovincial recruitment and/or job fairs may be allowed only when authorizedby FOEA in writing. Note:.Change of ownershipor relationship of prirpiietorbtiibti'licensed to englge 1n singile= overseas employment shall cause the automatic revocation of the license. ART.31:BONDS All applicantsfor licenseor authorityshall post such cash and surety bonds as determinedbv the Secretary of Labor, induding escrow deposits. Purposes: 1. To guarantee compliancewith prescribed recruitment procedures, rules and regulations,and terms and conditions of employment; and 2. To ensure prompt and effective recourse againstsuch companies when held liable for applicants or worke/s claim (Finman General Assurancev. lnnocencio, GR No. 9027?75, November 15, 1989). Exemption from Garnishment . Cash bond filed by applicants for licenseor authorityis not subjectto garaishment by a judgmentcreditorof the agency. . Should the bond/deposit in escrow or any part thereofbe garnished, the same should be replenishedby the agency within 15 days from notice from the POEA. Failure to replenish the same within the said period shall cause the suspensionof the ficense (Sec. 22, Rule ll, Book ll, Rules and Regulations on the Recruitment and Empl oyment of Land-based Workers). Note: POEA has the power to enforce liability undercash or suretybonds. ART. 32: FEESTO BE PAID BY WORKERS r The applicant can be charged with fees only after he has obtained employmentor has actuall$commencedemployment. r Fees paid shall alwaysbe coveredwith the appropriate receipt clearly showing the amountpaid.
POEA has the power to: 1. Suspendor cancel license;and
2. Orderthe refundor reimbursement of such illegally collected fees (Easfern Assurance and SuretyCorp. y. Sec. of Labor, GR
uding
!t.
L2
Sen Eels Gotkgeotjfdo 2011CENTRALIZED BAR OPERATIONS

ART. 34 AND SECTION 6, RA 8(X2: pRoHTBTTED (tFFpt-HOFAT-W) PRACTICES It shall be unlawful for any indiMdual,entity, licensee,or holderof authority: 1. To charge greater amount than that specifiedin the scheduleof allowablefees (!llegalexaction), 2. To furnish any false informationin relation to recruitment or employment (False information); 3. To give any false notice,testimonyetc. or commit any act of misrepresentation to secure a license or authority (False statements); 4. To induceor attemptto induce a worker to quit his job in lieu of anotheroffer unless it is designed to liberate the wofker from oppressive terms of employment (Pirating); 5. To influence or attempt to influence any oerson or entity not to employ any worker who has not applied for employment through his agency (!nfluencing not to employ); 6. To engagein the recruitment or placement of jobs harmfulto public health,moralityor to the dignity of the Philippines(Harmful jobs); 7. To obstruct or attempt to obstruct inspection by the Labor Secretary or his authorized representatives (Qbstruct inspection), 8. To fail to file reports on the status of employment, placement etc. and such other matters as may be required by the Secretaryof Labor (failure to complywith rules and regulations); 9. To substitute or alter employment contracts without the approval of the Secretary of Labor (Alteration of contracts); 10. To become an officer or member of the Board of any corporationengaged in the managementof a travel agency (fravel agencyofficersrecruiting); and 11. To withhold travel documents from applicant workers before departure for monilqrY ;.'consideratlQns . i .unagthorized'., (Withholding trbvel documents). See RA10022in Social Legislation. ART. 35: SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY Non Licensee or Non-Holder of Authority any person, corporation or entity which has not been issued a valid license or authority to engage in recruitmentand placement by the Secretary of Labor, or whosg license o-r authority has been suspended, revoked, or cancelledby the POEA and the Secretary. Grounds for Revocation of License (IVEE) 1. lncurring an accumulatedthree counts of suspension by an agency based on final and executory orders within the validity periodof its license, 2. Violation/sof the conditionsof license; for 3. lngaging in acUs of misrepresentation the purpose of securing a license or renewalthereof;and 4. Engaging in the recruitlhentor placement of workers to jobs harmful to the public healtfi or morality or to the dignity of the Republic of the Philippines(Sec.3, Rule l, Regulations B-p-o!1,y-;-Vl,Rules and Gbveniing Overseas Empl oyment). Grounds for Suspension/ Cancellation of License (PC-DDP) 1. The acts grohibited under Ar1.34; 2. tharging a tee before the worker is employed-or in excess of the authorized * annount; 3. poing recruitment in places outside its authorizedarea; 4. Qeploying workers without processing throughthe POEA; and withoutthe 5. flublis[ing job announcements POEA'S pricr approval (Sec.4, Rule ll, Baok lV, POEA Ru/es). Jurisdiction The D9LE Secretary(4ft. 351and the POEA Administrator (Sec. 1, Rule ll. Book VI, New Ru/es on Overseas Employment) have to suspend or JURISDICTION CONCURRENT cancel a license (Irans Adion OverseasCorp. y. Sec. of Labor, GR No. 109ffi3, September
5 ,leen.
Liability of recruitmentagency
DARILY

of the New Civil Code (Catan v NIRC, GR No.77297,Aprit 15, 1988\. of .authorityor a licensee or holder of authority(Sec. 6, R.A. BO42l: 1. Those prohibited practices enumerated underArt. 34: 2. Failureto actuallydeploywithout valid reasonas determinedby DOLE; 3. Failure to reimburje expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take placewithoutthe workeis fault and 4. Recruitment and placementactivities of agents or representativesappointed by a licensee, whose appoiritments were not previously authorized by the POEA shall likewise constituteillegal recruitment. Elements of lltegal Recruitment 1. The offenderis a licensee/non_licensee or holder/non-holder of authority ung"g"d in the recruitment and placem.nt and "t-*J*"r"; 2. The offender undertakes either anv recruitment activities defined under Afticte 13 (b), or any prohibited practi"e" enumerated under Arf. 34 (peopte v. Sadbsa, GR No. 1070A, Uai tS,' teSB; Sec.10, R.A. Bo42). Qrialifying Circumstances that would make illegal recruitment as an offens" iluolvil; economic sabotage:
Exception to Liabitity of Recruitment Agency . Wheretheworkers themselves insisted for the recruitment agency to sendthembacx to their foreign employerdespiteiheir Knowtedge of its inability to pay their wages, the Court.absolvedthe agency fromliabitity (Fe1qte Construdion CZip.,r. Gayda,GR No. 82310, June 18,lgglf Contractby principal o Evenif it was the principal of the manning agency who entered into contract with the employee,the manning agent in tnu phitippines is joinfly ana soliOerUilffite wrrn_rheprincipal(pgaOutt MaritimeCorp. u .Balatonga4 Nos. aSOS+_5S -GR February 2A, 1989). Suabilityof ForeignCorporations unlicensed agents,recruits*ort ers in ii. 99y$ryrnaybe suedin andfoundtiabte by Phifippine courts (FaoTtie"u"nii"iurt Corp. v. De La osa GR No. L:iS;;;:s, March26, 1979\. CHAPTER IIt.MISCELLANEOUS PROVISIONS fRT. 38: TLLEGALRECRUTTMENT (AS ATUENDED BY R.A. so42). s;;;;_d;;;h dl:"y::lol of ilesat recruitment a"iirZldiv RA 10022underthe Sociat "i Legisiaiiiiii"; ItlegalRecruitment -
contraj seryices,geferrals,or gdvertisinS,' pr;;l;r.O for emptoyment abroad, wrretneiioioroi,i".ii not, when undertakenOy a non_iicd;;; ;; non-holder pr-oviOeO ol authority; ttratiny JuJ non-licensee or non_holder of authority il;j; any .manner,offers or .promises roi rempl'drnefi nbroad ,totwo.ormlre:p6ftofi]r ",ieu : or-der that pertainsto nonexistent woik, ;;;k -* different from the actual overs"a" *orf., wo{! with a different emptoyer ;h;ih;; registered or notwith the poEA f3*a.Jij' ii"i r-' c as amended by RA 10022) r lt shalllikewise include the commission of following prohibited d" ilil;; lhe committed by a non_ticen""" or.non_tJiJJi
id;p;;ils !?!Y-1"-"tns' . enlistins, gtitizins, oi procuririq 3l^11-rl-1t'ns:--Fid.ns, worKers and includes (CRAP)
3ny act of {CETCHUp)
1. Whenillegal recruitment is committed bv a SYNDICATE, r.e., if it is carriedo,rt'nV three (3) or more persons conspirino withoneanothei; or" ^ z. .1?9/or.:onfederating wnen ltegatrecruitment is committed in a LARGE SCALE,i.e., it it is committeJ against .three (3) or more persons
tnga{.ofreprocessing-ior-reis il;ililJi
shall be deemed so engaged. nl"o in"iuO""
Act
license.
induced
that they
fee,
Such act par.2 of the
4ft. 315,
74
Ssn Sets Gollrge of Asb 2011CENTRALIZED BAROPERATIONS

Hernandez, GR Nos. 141221-36, March 7. 2002t. Venue of Criminal Action Arising from lllegal Recruitment The complainantmay, at his option,file at the RTC of the provinceor city: 1. Where the offensewas committed: OR 2. Where the offended party resides at the time of the commission of the offense. Summary of Rules on Prescriptive period (Salazarv. Achacoso,GR No. deportation. 81510,March 14,1990). Note: The Secretary of Labor may order illegal recruitment of closure establishments because it is only and regulatoryin nature. administrative OF NON TITLETWO. EMPLOYMENT RESIDENT ALIENS ART. 40: EMPLOYMENTPERMIT OF NON2. RESIDENT ALIENS Alien Employment Permit (AEP) - is required for entry into the country for employment purposes and is ig;u,gJ-,.qfter determination of the non-availabitity of'' a person in the Philippines who is competent,aHe and willing at the time of application to perform the servicesfor which the alien is desired. Note: MAXIMUMPENALry shall be imposed f the Wrson illqally recruited ls less than 18 iears of age or committed by a non-licensee cr non-holder of authority. Absence of Receipts Evidencing payment, t'lot Fatal to Prosecution's Case for lllegal Recruitment a.slong as the witnessescan positivelyshow :hrough their reSpectivetestimoniesthat the accused is the one involved in prohibited 'ecruitment, she may be convicted of the offense despite the absence of receiots treople v. Sagaydo, GR tVos. 124671-70, September 29,20@). Liability of Employee of Company Engaged in lllegal Recruitment dr employee of a company or corporation engagedin illegal recruitmentmay be held as eRINCIPAL,togetherwith his employer,if it is 3lrown that he adively and consciously anticipated in illegal recruitment (peopte v. 3abais, GR No. 129070,March 16, 2O01). All foreign nationalswho intend to engage in gainful emplgyment in the Philippines shall applyforAEP. (Sec. 1, D.O.97-09) Employment Permit Required (FNAM) 1. All loreign nationalsseeking admissionto the Philippines for the purpose of employment; 2. All qdn-residentforeign nationalsalready working in the Philippines; 3. Non-resident foreign nationalsadmitted to th'e Philippineson non-workingvisas and who wish to seek employment; and 4. $issionari* or religious workers who intendto engage in gainfulemployment. Note: Employment permit should be secured regardless of the source of compensation and duration of the employment, whether the employment is part-time or temporary (Secs. 2 and 3, Reyl'sed Guidelines for lssuance of
turest
.
bsuance of Searc*r Waiiant,or Warrant of
Att.38 is UNCONSTITUTTONAL inasmuch as it gives the Secretary of Labor the powerto issur!searchor arrestwarrants (the Secretarynot being a judge, the authorities must go throughthe ludicial process). The EXCEPTION is in cases of deportationof illegal and undesirable aliens whom the president or the Commissioner of lmmigration may order anested, following a final order of
Note: DOLE
15
LABORLAW LABORSTANDARDS the issuanceof AEP and the empoyerhas now the option to implementtransfer of technology.
-Resident Requisite for Employment of Aliens: lmmigrants and resident aliens are not requiredto secure a working permit They are required to secure . their A/len Employment Registration Certificate (AERC) (Almodiel v. NLRC,GR No. 100641,June 14, 1993) Grounds for Suspension of Employment Permit (DS) 1. The continuedstay of the foreignnational may result in glamageto the interest of the industryor the country;and 2. The employmentof the foreign nationalis guspended by the employer or by the order of the Court (/bid. ).
Grounds for Revocation of Employment Permit (Non- MSM-DerT) 1. Non-compliance with any of the requirementsor conditionsfor which the Exemption from Permit employmentpermitwas issued; The following categoriesof aliens are exempt 2. $isrepresentation of facts in the from securing employmentpermit in order to (DIG-LATeR) application; work in the Philippines: Submission of falsified or tampered 1. All members of the diplomaticservice andlgr-'9.4ryrr3. documents: by accredited foreigngovernment officials
with the and with reciprocity arrangement government; Philippine 2. Otficers and staff of lnternational is a organizations of whichthe Philippines member, and their legitimatespouses desiring to workin the Philippines; of electedas members 3. Foreignnationals the Qoverning Boardwho do not occupy any other position,but have only voting rightsin the corporation; granted exemption by 4. All foreignnationals lavu of foreign 5. Owners and representatives nationals whosecompanies aregccredited by the POEAwho cometo the Philippines for a limited period and solely for the purpose Filipino applicants of intervisrving for employment abroad; 6. Foreign nationals who come to the Philippines to leach, present and/or conduct resqarchstudies in universities and colleges as visiting, exchangeor adjunct professors under formal agreementsbetween the universitiesor and foreign collegesin the Philippines universitiesor colleges;or betweenthe Philippine government and foreigjn provided , government; that the exemption basis;and is on a reciprocal 7.' Sesldenttfolel gn :nationdls i (Oepf ,"rord. er' No.7O06,May 31 2006). Groundsfor Denialof Application of AEP: 1. Mivepresentation ,of facts in the application 2. Submission of falsified documents; 3. The foreign national has a derogatory record;or 4. Availability of a Filipino who is competent, ableandwillingto lhe job intended for the foreign national
4. Meritorious objection, or information national of foreign the employment against Director; bythe Regional as determined record, has a derogatory 5. Foreign national and the employment has lerminated 6. Employer (/bid. national ofthe foreign ). Permit Validity of Employment . ONE (1) YEAR,unless the employment servicesor other contract,consultancy provides otherwise, modesof qngagement whichshalf, in no case exceed5 YEARS (rbid.). . FINEforworking orwithan expired without AEP: P 10,000every year or a fraction thereof {/Did) Business Ruleon Nationalized General Rule: Foreignersmay NOT be nationalized business. employed in certain Law prohibits Secfion2-A of the Anti-Dummy engaged the employment of aliensin entities
16
Sun Selu @ollege of Lan 2011 CENTRALIZED BAROPERATIONS

ART. 41: PROHIBITION, AGAINST TRANSFER OF EMPLOYMENT Aliens shatl not transferto another iob or changehis employerwithout prior approval of the Secretaryof Labor. 2 Non-resident alien shall not take up employmentin violation of the provisions of the Code. Note: Violationsof the abovementioned acts -nll subject the alien to the punishment crovided in Afts. 289 and 290 and to :eportationafterserviceof sentence. ' TITLETWO.TRAININGAND EMPLOYMENT OF SPECIAL WORKERS CHAPTER t. TYPES ,: WORKERS 1. Apprentice 2. Learner 3. Handicapped OF SPECIAL
ART. 57: STATEMENT OF OBJECTTVES F O R T H E T R A I N I N GA N D E M P L O Y M E N T OF SPECIAL WORKERS 1. To help meet the demanf,"ofthe economv for trainedmanpowe[ 2. To establish a national apprenticeship program;and 3. To establish apprenticesfiip.,,-standards for the protection of apprenticesA R T . 5 8 :D E F I N I T I O N OF TERMS Apprenticeship - practicaltraining on the job supplemented by related theoretical instruction,for .a highly skilled or technical occtpation'for a period of not less than three (3) monthsbut not more than six (6) months. Apprentice - a worker who is covered bv a written apprenticeship agreement with an indiMdual epployer or any of the entities recognized iunder this chapter, with an apprenticeship program duly approved by the DOLE. Apprenticeable Occupation - any trade, form of employment or occupationwhich required more than 3 monthsof prac{icaltrainingon the job supplemented by related theoretical instruction.
TITLE ONE: NATIONAL MANPOWER DEVELOPMENT PROGRAM CHAPTERI. NATIONALPOLICIESAND ADMINISTRATIVE MACHTNERY FOR TFIEIR IMPLEMENTATION ART. 43.56: TECHNICALEDUCATIONAND SKILLSDEVELOPMENT AUTHORITY -re National Manpowerand youth Council '.VYC) has been replaced by Technical =lucation and Skills Development Authoritv -SDA) createduRderR.A. No. 7796 or the -ESDA Act of 1994. StaHnent of Goals and Objectives " To attain internationalcompetitiveness: i To meet demands for quality middleJevel manpower; : To disseminate scientific and technical knowledge base; -1 To recognize and encourage ' the complementary roles of public and private institutions;and i To inculcate desirablevalues. r*riddle{evel Manpower refers to those: ' Who have ac-quired practical .skills: and knotledge through formal or non_formal education and training equivalent to at least a secondary educition br.rtpreferablv a post-secondary education with ; conesponding degreeor diploma;oi _ Skilled workers who have become hiohlv competent in their trade or craft as attejtei by industry.
Apprenticeship Agreement- an employment contract wherein the emprloyer bindshimself to trainthe apprentice and the apprentice in turn
by
L7

apprenticeshipprograms. (Sec 41, Rule Vl, Book ll, Rules lmplementing the Labor Code) ART. 71: DEDUCTIBILITY OF TRAINING CHAPTER II. LEARNERS ART.73: LEARNERS DEFINED Learners - personshired as traineesin semiskilled and other industrialoccupationswhich are non-apprenticeable and which mav be learnedthrough practicaltrainingon the jbb in a relatively short period of time which shall not exceed3 months. Learnership Agreement - enlployment and training contract entered into'between the employer and the learner. Note: On-the-job or practical training of a need not be supplemented by .].ffi4pt theoretical inetruction (Sec. 1[a], Rule Vil, Book Il, Rules lmplementing the Labor Code). ART.74: WHEN LEARNERSMAY BE HIRED 1. No experienced workers are available; 2 fq9 employment of learners being netessary to prevent curtailment of employment opportunities; and 3. The employmentwill neither create unfair competition in terms of labor costs nor impairworkingstandards. Employment 3f rinor" as learners "A minor below fifteen (15) years of age shall not be eligible for employment as a learner. Those below eighteen(18) years of age may only be employed in non-hazardoui occupations. (Sec 4 Rule Vll, Book ll, Rules lmplementing the Labor Code) ART. 75: LEARNERSHIP AGREEMENT It shall include:(NOWC) 1. The lames and addresses of
cosTs
An additional deduction from taxableinc-ome of 112of the valueof labortraining expenses incurredfor developing the productivity and efficiencyof apprentices are grantedto the person or enterprise organizing an apprenticeship program. Requisites: (DNP) 1. Apprenticeship program must be duly recognized bythe Departmpnt of Labor: 2. Deduction shall[ot exceed10olo of direct laborwage;and 3. Employermust lay his apprentices the minimum wage. ART.72: APPRENTICES WITHOUT COMPENSATION Apprentices may be hired without compensation whereon-the-job training is: (SGT. B} 1. Required bytheSchool; 2. Required by the lraining program Curriculum, 3. A requisite for eraduation, or 4. A requisite for poard examination. /Sec. 40, Rule Vt, BooR il, Ruleslmplementing the Labor Code) Ruleson WorkingScholar 1. There is Ne employer-employee relationshipbetween students on one hand,and schools, colleges or universities on the other hand, where there is 'agreement between them under whichthe former agree to Work for the latter in exchange for the privilege to studyfree of charge, providedthe studentsaie given real opportunities, including such facilities as may be reasonable and necessary to finish their chosen coursesunder such . (Se,c. agreement n-r'_4,,r,,Ru{e X, BooR ttt, mplementingRules). 2. Under this Article, the student is not con$idered an employee. But if he causes injury or damageto a third person,the school-may be heldliableunder Art. 21gO of the Civit Code. (Fitamer Christian lnstitute v. tAC, GR No. 7St1Z August 17, 1992).
thd
if he
period Rule Vll,
20
San Gebs@ollege of ![.ub 2011CENTRALIZED BAR OPERATIONS

ART.76: LEARNERS lN PIECEWORK jobs _?arnersin piecework or incentive-rate ;"e to be paid in full for the work done during *e trainingperiod.
Those whose eaming capacity is impaired by age or physical or mental deficiencyor injury.
-. r lessthan3 months on the :r+dkal training rc cut not"more than6
Practicaltraining on the job notto exceed3 months Hrnngor persons as . tainees in semlskilled
restriction or different disabilities, as a resuftof a mental, physbal or sensory impairment,to performan adivity in the manner or wihin the rangeconsidered normal
for a humanbei
:'dical training on te job supplemented :,. related theoretical instruction
andotherindustrial occupations whichare non-apprenticeable and which maybe leamed practical through training on thejob in a relatively shortperiodof time a commitment
Disability 1. A physical or mental impairment that substantially limits one or more psychological, physiological or*gpato rnical fundion of an individual or activitiei of such individual; 2. A recordof such an impairment; cr 3. Being regarded as having such (Sq 4, R-A.7277) impairment. ART. 79: WHEN EMPLOYABLE 1l Their employment is necessaryto prevent curtailment of employment opportunities; and 2. lt doe not create unfair competitionin labor cosls or impair or lower working standqrds. Handicapped Workers May become Regulaf Employees . Subject to the provisions of the Code, handicapped workers may be hired as regular workers, apprenticesor learners lF their handimp is not such as to effec{ively impede the performance of job operations in the particular occupationsfor which they were hired. (Sec. 5, Rule VllL Baok ll, Rules lmplementing the Labor Code) . The noble objectives of the Magna Carta for Disabled Persons ate not based merely
":
cornmihlent to hire
employ the leamer as regular employee if he desires upon completion
Workeris not corsidered an employee
Leamer is considered regular employee after 2 months of training and dismissal is without fauft ' of learner
Semi-skilled/industrial (nonoccupation apprenticeable) Requires DOLE aproval for validity
III. HANDICAPPED ]FTAPTER WORKERS , ': i '. I,:. ' : ART.78:DEFINITION ; '';': ' ":'
-lrndicapped Workers - those whose :r.RNlNG CAPACITYis impairedby age or ;r 'sical or mental deficiency or injury, disease :r ilness. rroG: There must be a link between the -ciency and the work.which entites the .:rcloyer to lessen the workeis fuage. lf the r=Lility of the person is not in any way .:ded to the work for which he was hired, he s-,r-rtd not be so consideredas a handicapped
oir(f.

or allorr/ances as a oualified able-bodibd person. Discrimination on Employment (Sec 32, R.A.7270 No entity, whether public or private, shall discriminate against a qualified disabled person by reason of disabilityin regardto job applicationprocedures,the hiring, promotion, or discharge of employees, employee compensation,job training, and other terms, conditions,and privilegesof employment. Sheftered Employment (Sec. 6, R.A.72n) The State shall provideshelteredemployment if suitableemploymentcannot be found. Duration of Employment No minimum, no maximum duration. Dependent on agreement but it is necessary that there is a specificduration. lncentives for Employment (Sec. 8, F*A. 7277) 1. Private entities that employ disabled persons who meet the required skills or qualificationseither as regular employee, apprentice or learner, shall be entiiled to an additional deduction from their gross income, equivalent lo 25o/oof the total amount paid as salaries and wages to disabled persons; Provided, that the followingare cornplibd with: a. Presentation of proof certified by DOLE that disabledpersonsare under their employ;and b. Disabled employee is accreditedwith DOLE and DOH as to his disability, skills and qualifications. 2. Private entities that improve or modify their physical facilities to provide reasonable accommodation for disabledpersonsshall also be entitledto an additionaldeduction from their taxable income, equivalent to ffia/o of the direc.t costs of the improvementsor modifications. This does not apply to improvementsrequired under Ig;i 344s,lr:,,., :,', B,Pa.Q .. +i*tl,l* * .\r.1'..; 6.'f; ri;, f ; riu. ; ),4 ART. 80: EMPLOYMENT AGREEMENT Gontents (NRTND) 1. The 4ames and addressesof the employer and the handicapped workefi 2. The gate-of pay of the handicappedworker which shall not be less than the legal minimumwage (Seq. S, Chap.i, of nil; il ot RA7277); ) 3. The gature of work to be performedby the handicapped worker;and 4. The Qurationof the employment.(Sec. 3, Rule Vlll, Book Il, Rules lmplementing the Labor Code) ART. 81: ELIGIBILITY FOR APPRENTICESHIP Handicapped workers are eligible for employmentas apprentices or learnersif their handicap is such that it does not impede the performanceof job operationsin the particular trade or occupation which is the subjectof the p or learnership pro{tam. apprenticeshi
Benefits Granted in Title One Book III 1. Rightto regularworkinghours 2. Rightto regularworkingdays 3. Rightto overtimework 4. Rightto regularmeal periods pay 5. Rightto night-shift differential 6. Rigfit to weekly re$ periods 7. Right to additional compensation on scheduled rest day, Sunday or special holiday work 8. Rightto compensation for holidaywork 9. Rightto seryiceincentiveleave 10. Right to a dhare in the collected service cnarges TITLE ONE: WORKING CONDITIONS AND RESTPERIODS CHAPTERI. HOURSOF WORK ART.82: COVERAGE Employer Any person, natural or juridical, domestic or
22
5ar EeIs @oltege ot {.eb 2011CENTRALIZED BAROPERATIONS

2. Paymentofwages; 3. Power of Dismissal;and 4. Pcwerto Control. (Paciflc Consultantslnternational Asia, lnc. v. Schonfetd,GR No. 166920,Feb. 19, 2007\ Two-tiered Approach 1. The putative employeis power to control employeewith respectto the means and methods by which the work is to be accomolished: and 2. The underlying economicrealitiesof the or relationship. activity Economic Dependence or Economic Reality Test Whether the worker is dependent on the alleged employer for his continued employmentin that line of business. Contol Test - refers to the employeis power to control or right to controlthe employee not only as to the result of the work to be done but also as to the rneans and methods by which the sdme is to be accomplished. . The control fesf is the most important test our courts apply in distinguishingan employeefrom an independent contractor. This test is based on the extent of control the hirer exercises over a worker. The greater the supervision and control the hirer exercise5, the more likely the worker is deemed an employee. The converse holds true as well - the less control the hirer exercises, the more likely the worker is considered an independentcontractor (Sonza v. ABS-CBN Broadcasting Corp., . GR No. 138051, June 10, 2@4). . The control test merely calls for the existenceof the rightto controlthe manner of doing the work, not the actual exercise of the right (Zanofte Shoes y. NLRC, GR No.100665,February 13, 1995). b. Rules that control or fix the methodologyand bind or restrict the party hired to the use of such means. These address both the result and the means used to achieveit and hence, Er-Ee relationship exists (lnsurance Life Assurance Co., Ltd. v. NIRC GR No. 84484, November 15, 1989).
Cases Employer-Employee Where Relationship Exists . Jeepney drivers . on _.boundary basis (Villamaria v. CA, GR'h/o. 165881, Apfl 19.2006\ r Drivers or helpers of salesmen are employees of the company (Alhambra lndustries v. ClR, GR No. L-15Qp!1;.:,,;; October 30, 1970) . Employees of unregistered association (Qrlando Farm Growers v. NLRC. GR No, 129076, No.yember 25, 1998]. o Street-hired kargador (Caurdaneraan Piece Wor4ers Union v. Laguesma, GR No- 113542,February24,1998) .* Workbrs in mcvie prqjects (Maraguinot v. NLRC, GR No. 120969,January 22, 199e) r Salaried insuranceagent as distinguished from registered agents on commission basis (Greaf Pacific Life Assurance Corp. v. Judico, GR No. 73887, December 21, ' /989) r Tailors, seamstresses, seryers, basters, plantsadoras paid on piece-rate basis (Makati Haberdashery v. NLRC, GR Nos. 83380-83, November 15, 1989) o In-house lawyer as distinguishedfrom an outside retainer (Hydro Resources Contractors Corp. v. Pagalilauan, GR No. L-62909, April 18, 1989) . University professors and instructors (FEU v. ClR, GR No. L-17620, August31,1962) . Taxi driver, barber (Citizens League of
Free
No.L-21212.
Note: The issuance by the principal of guidelines does not establish control by principal"(Crya Cola B_cf.tlers'Pfiil., lng,.v. Climaco, GR No. 146881,February 5, 200n r Not every form of control will have the effect of establishing the Er-Ee relationship.The line should be drawn between: a. Rules that merely serve as guidelines towards the achievementof mutually desired results without dictating the means or methodsto be employed in attaining it, These bim only to promote the result. In such a case, NO Er-Ee relationshipexists.
drinks
23

37790, March 25, 1976) Note: A contract of perpetual emptoyment deprives .management ol its prerogative to decide whom to hire, fire and promiote,and renders inutile the basic precepts of labor relations. An absolute and unqualified employment for life in the mold of petitioneis concept of perpetual employmentis contrary to public policy and good custom", it unjustlyforbids the employerfrom terminating "s iii. They have the authorityto hire or fire other employees of lower rank or their suggestions and recommendations as to the hiring and firing and as to the promotion .,, or any other change of status of other employees are given particular weight. (Sec.2[b], nite t, Book lll, Rules tmplementing the Labor Code) b. Not coveredunder this Tifle becausethey are employed by reason of their specijt 'value training, experience,or knowledge; of their work cannotbe me,isuredin terms of hours.
.the services ot an 6miloyeeoespite inE existence of a just or validiause.lt'likewise

compels the employer to retainan employee despite the attainment of the statuiory retirement age, even if the employeenas asset" 6r, *or"", , F:gT" a'non-performing liability to the employer. (Sorreda vi. C R. N;. Qgybridge EtectronicsCorporatioln, 172927, February11,2O1Oj
GeneralRule: Tiile l, Book lll of the Labor u'Joeoeattng wlth hoursof wor( weeklyrest periods, holidays, service incentive leaves and sery!99charges, coversall employees in ALL establishments, whether tor proit or not. Exceptions: (GoMaFi FaDoR) 1 @vernment employees; 2.. M?nagerial empioyees including members of the managerial staff, !!eld perconnel; 4 of the.Family of the emptoyer Y-"Ib"q who aredependent on himfor support; 5. Domestic helpers or persons in the personal serviceof another: and 6. Workers paidby Result.
Government Employees a. Refer.only to employees of government agencies, instrumentalities, or political subdivisions and gou"rnrn"ni of corporations that are NOT incorporated under.the CorporationCode, ,.e., thos; wnlch have originalcharters. b. Not covered under this Tifle because, the terms and conditionsof their ;rt;6;;i are governed bv Civil and Tegrllatiors: ./ :
Used onty for purposes of Book lll (i.e. working conditions, rest periodi, entitle mentto benefr ts)
consi-stF the 9f management of the establishment in whbh they are employed or of a deparbnent br subdivision thereof and
Onelvhoseprimary duty One who is vested
and joining unioni, ceftification elections. colIectivebargaining)
Used only for purposes ol Book V (i.e. foming
to othermembers of the manaqerial staffi Supervisors are ileenred

members of the managerial staff (National Susar Refineries Corp. v. NLRC, Mudt 24, lggg\.
powers or prerogatives to lay doriynand execute management policies andlor to hire, tansfer, suspend, lay-off, recall, orscnarge, assign or disciplineemployees
upervisors are members of managerial stafi.
not the
Elements to be Considered a Member of the lvlanageriat Staff (PCREED/ 1. That his primary duty consists of the lerformance of work direcfly related to
management policies;
9:tiff,rFr*'#lo
Managerial Employees a. Alter-egos of their employers who meet the follorving c.onditions: i. Their primary duty consistsof the management of the establishment in which they are employedor of a oepartment or subdivision thereof: ii. They customarity and regutaity iireA the work of twc ) or more emPloYees therein; and
20o/o
r those I, Book
24
Ssn ffiebu@ollegr of I.sb 2011CENTRALIZED BAROPERATIONS

l,i,il:[E An employeewhose job is to supervise ',- =sorersin the construction projectfalls rl-E't under the category of "officers or -,* - rers of a managerial staff' and is r, :-:ted from payment of overtime pay, i,*- ,in pay for holidaysand rest days and *-, : incentiveleave pay. (Salazarv. NLRC, ',c 109210, April 17, 1996) ,: -eis.i Supervisory or Managerial of Stafus on whether a person possesses -*e-ds or clerical ;,"::,:ri/ that is not merelyroutinary ' -::Jre but one that requires USE OF , -,===NDENT JUDGMENT (ViIIuga v. , -:: GR No.75O38, August23, 1993). :'erd Personnel , : --agricultural employees: ; n+r^ro regutarly perform their duties away *cnr the principal place of business or AND :',anchofficeof the employer; : r|i,ose actual hours of work in the field :annot be determined with reasonable :ertainty. (Sec. 27, Rule ll, Baok lll, Rules -clementing the Labor Code) irote: The Eight-HourLabor Law has no :;olication to the outsideservice force or 'eC sales personneland they are'not :-:fied to overtime compensationsince -*e r employerhas no way of knowingthe --nber of hoursthe employee works per :a.,. (San Miguel Brewery v. Democratic -*or Union, GR No, L-18353, July 31, __rffJ :--,LE lN CASE OF FISHERMEN: In ttercidar Fishing Corp. v. NLRC, GR No. ":2574, October 8, 1998, fishermen are -:t field personnel,atthoughthey perform -,rn-agricultural work away from :6ffonefs business offices. the fact -e'nains that throughout the duration of :eir work they are under the effective and superuision of employer. :dltrol -3WEVER, under the Philippine Fishenes 1a& of 7998. fishermen are considered f ad perEo.llreli..: : aI;.,,...;.11,.-,,, .:,.:.r i 1:;1,:.,' . :,,.", ;-i-E IN CASE OF DRIVERS/ BUS :SNDUCTORS: lt is of judicial notice'that : cqg the routes that are plied, by bus :lrnpanies, there are inspectorsassigned - Sategic paces, mandatory once-a*rEk car barn or shop day, :'"uergconductors must be at specific ]ace at specifiedtime, as they generally :lserye prompt departure and arrival from :-elr point of origin to their point of :estination. They are, therefore, under :,srsfanf supervision while in the performance of this work and hence cannot be considered field personnel. (Autobus Transport Sysfemt lnc. v. Bautista,GR No. 156367,May 16, 2005). Members of the Family of the Employer Not coveredby this Title becausethe amounts given by the employer by way of support may far exceedthe benefitsto which the employee is entitledunderthe provisions of lanrv. Domestic Helpers/ Persons Rendering r( Personal Services a. Thosewho: i. Perform services in the employer's home which are usually necessary or and desirablefor the maintenance enjoymentthereof;or ii. Minister to the personal comfort, convgnience or safety of the employer, as well as the members of the employels household. (Sec. 2[d], Rule l, Book lll, Rules lmplementing the Labor Code.) b. -,Not covered by this Title because the terms and conditions of em$oyment are governed by the provisionsof Chapter lll, Title lll of the pr*ent BooK Workers Paid by Result Such as on'piece rates or task basis who are not covered under this Title because their compensation is based on the work completed and not on the time spent in working. lmportance of Determining Existence of Employer-Employee Relationship a. Generally,labor standards and conditions apply only if there is Er-Ee relationship. Bqt in some instances,even if there is no Er-Ee relationship,the Labor Code may still be invoked (e.9. indirxt employefs liability, illegal recruitment and rnisuse of POEA
1. To
2. To
di
25
LABORLAW LABORSTANDARDS
Part-Time Work The Eight-Hour Labor Law prescribes the maxlmum but not the minimum. Therefore, part-timework, or a day's work of less than g hours is not prohibited. Compressed Work Week (CWW) r C\AM is resorted to by the employer to prevent serious losses due to causes beyond his control,such as when there is substantialslump in demandfor his goods or services or when there is lack of raw materials.To be an exception to the .eighthour a daf requirement, the workersmust agree to the temporary change of work scheduleand they do not suffer any loss of overtime pay, fringe benefits or their weekly or monthly take-home pay (DOLE Explanatory Bulletin, July 23, 1985). r This scheme is an alternative arrangement whereby the normal worl<week is reduced to less than 6 days but the total number of normal hours per week remains at 4g hours.The normalworkday is increasedto more than I hours withont corresponding overtime premium.This applies as well to 40 or 44-hourworloveek firms. Conditions of a Vatid CWW Scheme(DOLE Advisory No.02, Series ot 20041 1, lt is expressly and voluntarilysupported by majorityof the.emfloyeesaffected. 2. lf work is hazardous, a certification is needed frorn an accredited safety . organization or the firm's safety committee that work beyond g hours is within the limits or levels of exposureset by DOLE's occupational safety and health standards. 3. The DOLE is duly notified. Note: REVERSION TO THE NORMAL EIGHT-HOUR WORKDAY SHALL NOT CONSTITUTE A DIMINUTION OF BENEFITS. The reversion shall be considered a legitimate exercise of management prerogative,provided that the employer.shallgive the employees prior notice of " sucfr: . reversion.rwithiil i a reasonable periodof time Flexible Work Arrangembnts As explained in Department Advisory No.2 9"r,.9: or 20O9 (January 29), adopiion of flexible work arrangements (fWnl is considered as a befter alternative than the outright termination of the services of employees of the dosure of the establishrnent. The effectivity' and imptementation ,of "FWA shall be temporary.In additionto compressed work'week,the FWAs include: a. Reduction of workdays where the normal workdays per week are reduced but shouldnot last for morethan six months. b. Rotation of Workers where the employees are rotated or alternativelyprovidedwork within the workweek. c. Forced Leaye where the employees are requiredto go on leave for severaldavs of weeks, utilizingtheir leave credits if there are any. d. Broken-time schedule where the work schedule is not continuous but the number of work hourswithin the daytr week is not reduced. e. Flexi-holiday schedule where the employees agree to avail themselves of the holidaysat some other d3ys,.,provided that there is no diminution of existing benefitsas a resultof such arrangement. Twelve-Hour Workshift W Overtime A 12-hour workshift is validated by consent and its four-hour overtime pay becomes a contractual commitment (lnterphil Lab. Emplolees Union et al v. lrterphil Lab, lnc. et al, GR No. 142824,December 19,2W1). Normal Hours of Work of Health Personnel o For health personnel in cities and municipalitips with a populationof at least 1 millionOR in hospitalsand clinicswith a bed capacityof at least 100: day for 5 days a week, or 40 hours a week, exclusiye of time for meals. for 6 days or for 48 hours, but they shall be entitled to an additional compensation of at least 30oloof their regular wage for work performed on the6'dav.
Wotk
the time an
from to work
26
of Aqto Sun Fels @ollege 2011CENTRALIZED BAROPERATIONS

ir: -":- Jous. lt may not coincidewith a calendar ::; :*ondar Day - 24-hour period commencing -;1n Tidnight and endingat 11:59 pm. lt is rr'*s:le for an employee to work for 2 :;ae.eat days (e.9. lf X's work schedule is -:- '0 p.m. of MondaY uP to 6 a.m. of -,rslal his work day covers 2 calendar
fifr:
Rules on Hours Worked A. Waiting Time Consideredas hoursworked lF waiting: 1. ls an integralpart of his work; 2. The employee is required or engaged by the employerto wait; or to remain 3. When employeeis required on call in the employer'spremises or so close thereto that he cannot use and gainfullyfor his the time effectively own purpose.
ruF- 84: HOURSWORKED *mu:s tllorked lnclude: ' r,il time during which an employee is -s:.iired to be on duty or to be at a : -:scribedworkplace; I r, time during which an employee is or permittedto work, -."-+ered I ::s[ periods of short duration during ,utnrtng hours which shall not be more :-ia1iwenty (20) minutes;and r \leai periods of less than twenty {20) - rrutes are only a rest period of short as hours l--ation and are thus considered
* l-<eO.
dle time is not working
a* ndples in Determining Hours Worked rs"e,c 1, Rule l, Book ll, lmplementing ;lues) ' r hours are hours worked which the :-ployee is required to give to his :*cloyer, regardless of whether or not labor or :,-':n hours are spent in productive -, olve physicalor mentalexertion. I r- employeeneed not leave the premise-s :' the workplace in order that his rest :e:od shall be counted, it being enough :ra he stops working,may rest completely :.c may leave his workplace, to go :se,,vhere whether within or outside the of his workplace. :'rernises = ::re work performedwas necessary, or it :e:.efited the employer, or the employee :,:uid not abandon his work at the end of - s normal working hours because he had -,: replacement,all timp spent for such rcrk shall be cqnsidered, as hours.worked - tlre work is with the knowledge of his supervisor. =-cloyer or immediate --e time during which an employee is ractive by reason of interruptionsin his *ork beyond his control shall be :r:insidered time worked either if the -rninence of the resumption of work -equiresthe employee's presence at the :r,aceof work or if the interval is too brief to :e utilized effectively and gainfully in the :-oloyee's own interest.
not is part of the job; the time; it time spent waiting is compensable compensable e.g. X works as a e.g. Y works as a bus driver. His task is to driver of Victory. His to route is from Manilato drive a truck at 6am leaving Santiago, Pampahga to load 'rs at 3pm. He gravel. While gravel and arriving being loaded, he is completely relieved played mahjong and from duV until 9pm, he againgoes on then slept. The time he when. spent playing and duty for the retumtrip to is Manila.His idle time is sleeping
compensablebecause he is engqged to wait for waitirig is an integral part of hb job. compensable not is he because specifically relieved from all duty. He is merely waiting to be engaged.
B. Working While On Call When employeeis requiredto remain on call in the employer's premises or so close thereto that he cannot use the time etfectively and gainfully for his own purpose. , . However, if he is not required to remain on the employer's premises but is merely requiredto leaveword at
Note: The
practiced
27

considered'waiting time" since'thev are not subject to the absolutecontrolof the company during this period, otherwise,their failure to report in the assemblytime would justify the company to impose disciplinary measures. (Arica v. NLRC, GR No. 7B2tO, February 28, 1989) D. Travel Time Power lnterruptions 1. First20 minutes is compensable. 2. Succeeding minutes not compensable. 3. lf despite the lapse of the 1"t 20 minutes,the employees are required to stay in their workplaces,such time is compensable. , Semestral break of Teachers Compensable hours worked apply to regularfull-timeteachersonly. lt is a form of intenuptionbeyondtheir 6bntrol.(Univ. of Pangasinan Faculty union v. lJniv. of Pangasinan, GR No. L-63122, Februarv 20, 19U\
Normal travel from home to spent by an work which is employee in not work time travel as part of his prircipal activity, like travel from jobsile to jobsite during the workday
Travel that keeps an employee away from homeovernight
Compensabte I 0onaid-er-ea-as and must be I work time counted as I wtren it cuts hoursworkeci I across an I employee,s I workday Exceptions; I because it 1. Where the substitutes for ] worker is I the hours that made to the employee , work on an I should have . emergency I been in the cal{ and I office travel is necessary in proceeding to the workplace; 2. Travel is donetfrough a conveyance provided by the employer; 3. Travel is done under the .. +rp,eryisiot'l r, 'and contsol . of the employer; and 4. Travel is .done under vexing and dangerous circumstance
senerafiy: nol compensable becauseit is a normal incident of employment
Lectures, Meetings, Trainings, Programs Not countedas workingtime if all the following conditions aremet 1. Attendance is outside of the ernployee's regular working hours; 2. -'Emplolee Attendance is in factvoluntafy, and 3. does not perform anv productive work during sucfi attendance. (Sec. 0 Rutel, Book ilt. Rules lmplementing the Labor Code)
H . Attendancq in Labor Relations Activities 1. CBA Negotiations- generally, not compensable, EXCEpT if: a. There is an agreement for compensability in the parties' GroundRules; b. There is an established practiceor policy allowing compensability; and c. When it is done during regular work hours.
entitled to
28
sf {.sb Ssn ffistu @ollege 2011CENTRALIZED BAROPERATIONS

e i g h tw o r k i n gh o u r sa :=,:nd the regular ::, but whether they actuallyrendered i:-. ce in excessof said numberof hours. '"a: crial Shipyards and Sfeei Corporation . lR 3SCRA890[1961]) : , ; - 8 5 : M E A LP E R I O D S ; - ' " s o n M e a lP e r i o d s : - : - d not be lessthan sixty(60) minutes. " s non-compensable except: Where : - " ^ 3 the so-called meal period, the :: l'eTS are required to standbY for :-:-gency work, or said meal hour is not .^. of complete rest, such period is overtime (hoursworked.) (Pait : : ^,s'Cered :*eqcan World Airways Sysfern v. Pan :-.4can Emp;lsysssAssociation, GR No. 24, 1961) --",275 February '?r ce less than siKy (60) minutes,but l'::, j not be less than twenty (20) - -ltes and the shortened mealtimemust :* ,'rith full pay, under the following
_{2 naFQ'
Requisites: bgree in writingand voluntarily 1. Employees waive the overtimepay; in the salaryand otherfringe 2. No diminution benefitsof the employeesalreadyexisting; and they strenuous 3. Work is not physically are providedwith adequate coffee breaks in the morningand afternoon; 4. Value of benefits is equal to the due them; compensation 5. Overtime pay will become due and demandableif ever they are permittedor madeto work beyond4130Pm;and duration. is of temporary 6. The arrangement Note: The eight-hour work period does not includethe meal break. Nowhere in the law may it be inferredthat employeesmust take their meals within the company.premises. froni going out are not prohibited Employees as long as they returnto their of the premises posts on time (Philippine Airtines, lnc. v NLRC. GRNo. 132805,February2, 1999)ART. 86: NIGHT SHIFT DIFFERENTIAL (NSD) Concept of NSD of not lessthan 10% compensation Additional regularwage for every hour of an employee's of work d6ne between 10:00 PM and 6:@ AM, whether or not such period'is part of the workels regular shift. Note: In additionto the exceptionsprovidedin Att. 82, NSD does not apply to employeesof retail and service establishments regularly employingnot more than 5 workers.(Sec. 1[bJ, Rule ll, Book lll, Rules lmplementing the Labor Code). lf work done between 10 PM and 6 AM is oveftime work, then the 1Oo/onight shift overtime ditferential
: :
work Where the work is non-manual .l nature or does not involve physical exeriion; strenuous ,Vhere the establishmentregularly '16 hours a cperates not less than
JAY,
'r cases of actual or impending or there is urgentwork ernergencies :c be performed on machineries, to avoid equipment or installations serious loss which the employer would' otherwisesuffer; Where the work is necessary to : crevent serious loss of perishable goods (Sec. 7, Rule l, Book lll ot the Rules lmplementingthe Labor Code). ' ess than twenty (20) minutes, it :,.:::'nes only a rest period and is thus as work time. :: .-<Cered
:{e Vleal periodsduring overtimework is r .- ,' to workers performingovertime for ,: '::slr"r that OT work is usuallyfor a short :*:rc rangingfrom one to three hours and to r,?:r-: 'rom the same one full hour as meal OT work to :,i - :': .ay reducethe employee's
' : - - 1 ;
.$.s.tt**:!]'t
:.criened Meal Break Upon Employees'

; g: ist
t>
i *:r tres may requestthat their meal period :,r i-r1fled so that they can leave work .i" :' than the previously established , " " : - e . S u c h s h o r t e n e dm e a l t i m ei s n o t
_E X9tC.
J(,/,
1982)
29
Sample lllustrations 1. Without Overtime wage per hour) x no. of hours I(0% , regular of work performedbetween10 pm-- aml 6:00pm-2:00am Sfep 7: Get hourlywage rate. Daily Wage divided by number of hours worked e.g. P800+8hrs=p100 Step 2'. Computewage between6:00 pm-2:00 am. e.9., 8hrsxP100=p800 Sfep 3: ComputeNSD. (1Oo/o oI regularwage per hour x no. of hours of work performed between 10 pm-- am) , P 100)x 4 hrs = P 40 e.g. (10o/o
xP100=
ht Shift Differential vs. Overtime Payment for workdone Payment for the excess during thenight ('10:00 of the regular8-hour pm--6:00am) worK
10% of basic wage 25o/o or 30% of basic wage, e the c6e may be
Note: The receipt of overtime pay wiil not precludepaymentof night shift differential pay (NARIC v. NARIC Workers tJnion, GR ruo. e4 I 12075, May 29, 1959). ART.87: OVERTIME WORK Overtime Pay - additional compensationfor work performedbeyond eight (8) hours within the ygorkeis 24:hour workday regardless whetherthe work covers2 calendardavs.
2.
With Overtime
of OT wage per hour) x no. of hoursof l(1Oo/o work performedbetween10 pm- aml 800 8:00arn-S:00pm 5:00pnr-12:00 mn
Rationale The employee is given OT pay becausehe is made to work longer than what is commensuratelwithhis agreed compensation for the statutoiily fixed or voluntariiy agreed hours of labor he is supposedto do (pNB v. PEMA, GR /Vo.L-30279, July 30, 1982\. Basis for Computation of Overtime pay . Regular Basic Wage: Includescash wage. only, without any deductionon account of facifitiesprovidedby the employer(Aft. 90.
LVt-
Sfep1:Gethourlywage rate. Daily Wage divided by number of hours worked e.g. P800*8hrs.=F100 Step 2: Compute wage betweeng:00 am_ 5:00pm xp100=p800 e.. g . 8 h r s . OT premiumpay between 9fgp S' Compute 5:00 pm-12:00 mn. hour)+ Wage,per;.hourl IQSy::_Yage,_per x no.of OT hoursl e.g.
Rafes
Sfep 4: ComputeNSD. of OT wage per hour) x no. of hours of [(10o/o work performedbetween10 pm amj e.g. (1O%x P 125)' 2 his =p24
30
ot ltstn Ssn @eis@olltge BAR OPERATIONS 2011CENTRALIZED

performed workwas actually i . : :',ertime .:;anpan v. NLRC,GR Nos. 85122-24, :':' 28, 1991). ?rld Legal Basis for Claim r:*r.,?r instruction from the r'a"a' Rule: An exDress lt is sufficient : : ,e- :s not required. that the ' . r .:3 s permitted or sufferedto work. written .::,: on: On restdaysand holidays, ' :. after office hours is required for - -:-: to compensatron. , :E - ,erbal instruction to renderovertime prohibiting : " : . a i l s o v e ra m e m o r a n d u m ' :-r (A.L. Ammen Transpoftation Co. v. q1 , 1 9 6 2 ) . t ' . : L - 1 7 7 5 0 , A u3 'q"- -e Pay Integrated in the Basic Salary i - : n' Overtime Pay) " -.:3.,:iaiion between employer and " : : ,:? that the latter's regular or basic pay is not the overtime i : -:ady includes or i; agal.This is also calledcomposite ' t : - = a yo r a l l - i n c l u s i v se alary. :=' ,vritten agreement knowingly and and := , :rtered intoby employee; ,'-:-atical result shows that agreed ,',,age rate and the overtime pay, :;. *:'-:ed separately,are equal to or :-:' :ilan the separateamountslegally
:-i
Quitclaim in Relation to Overtime Pay wherebylaborersagree to forego A quitclaim is NULL due from their employer their benefits since it runs counter AND VOID in its entirety with Arflcle 22 of the Civil Code which provides againstunjust enrichmentand is contraryto pubtic poticy. (PampangaSugar Devetopme^1t 'Co. lnc v. CtR, GR No. L-39387, June 29, 1982) Sample lllustrations A. Regular WorkdaYs fRegularbasic wage + 25q$ of regularbaslc wagel
8:00 am-5:00 Pm (inclusive of t hour meal break)
xp1ggl+P100
8am-5pm (8 hours)
xP125= Totalwaqe eamed
B. Legal or Regular HolidbYs + 30o/o of holiday [Holiday wage rate (20Oo/,) ratel
r , e' of Overtime Pay 'n:'?'2 Rule: Overtime pay cannot be , rir,1"E 3xpresslyor impliedly. Any contrary '. :' :- rs null and void, as it is intended to " .. i "' a:,o'ers and employees.
-:-ratq'
-:- i'le waiveris made in consideration ' :eêfits and privileges which may be * : - : : - a n w h a t w i l l a c c r u et o t h e m i n ' : - . - . p a y ;a n d -.:rc essedworkweek. :E =-:doyees whose positions aie li:! -3. from rank-and-flleto supervisory ..,i : '31.re pay and other benefits under ' : :.--95 Promotion produces the same j:aion , !B:-i. must be done in good faith. ' .t :e.sonnel movement should not be i.':": io circumventthe law to deprive - I : ,:es cf the benefitsthey used to receive :l .:-T,,1'/ lncentivesAd of 1990. R.A.
Sfep 5:00
31
LABORLAW LABORSTANDARDS Step1:Gethourly wagerate. DailyBasic Wagedivided by number of hours worked multiplied by restday & speciaf hoilOiy wagerate. e.g. (P800+8hrs. x) 1 5 Q o / o = p 1 S 0 ltgp Z: Computewage between8:00 am_ c:uupm using special holiday wagerate. e.g. 8hrsx . p150=p1.200 OT premiumpay between 99p S, Compute pm-10:00 5:00 pm per hour)+ ffWageper hourJ [(30%, HWage x no.of OThours
9 -f"jt Daysor SpeciatHotidays or special lF{st.day holiday wagerate(130olo) + 30olo of restdayor speciat h"tid;y;;d;;i;i
Sfep 7: Get hourly wagerate. Basic Wag6 oivr:deO by number of hours .Daily worked muttiptied Oy speiiat f,"fH"V *"gJ rate. e.g. (P 800+ 8 hrc.)x 130o/o= p 130 ,. wage berween 8:00 am_ |t:f pm Compute o.uu using special holiday wagerate. e.g. 8hrsx . p130=p1,b4O OT premiumpay between 9lef 3: Compute 5:00 pm-10:00pm. NWage'per hour)+ HWageper hourl It19* : OT x no.of hours e.g.
E. SbtreOutea Rest Day which is Also a Legal or Regular Holiday [Rest day & legal holidaywage rate + 30o/o oI rest day & legal holidaywage rate (2600/0ll
+ 3o%of rest day& speciaih"tfi;i;;s,";:i
D. Scheduled Rest Day whictr is also a Special Holidav {l"fl.d"y & speciaihotidaywage rate (150%)
d:uuam- 5:00pm (inclusive of t houi meal
32
U!
'ru
&arpeilaz//e4'ed4e 2OI1 CENTRALIZED BAROPERATTONS

(Asian Transmission benefits. Corp. v. Coutt of Appeals, 425 SCRA 47e [2004]). (Source: Suggesfed Answers to Bar Exam Questionsin Labor Law and Social Legislation,UP Law Center; 2Oa5 Bar) ART. 88: UNDERTIME NOT OFFSET BY OVERTIME . Offsetting of undertime work by overtime work whether on the same or any other day is prohibitedby law. r Permission givento the employee to go on learleon some other dayrbf the week shall not exemptthe employerfrom payingthe additional compensation. Rationale The undertime hours represent only the employee's hourly rate of pay while the overtime hours reflect both the employee's hourly rate of pay . and the 3ppropriate overtime premium such that, not being of equal value, offsetting the undertime hours against the overtime hours would result in undLedeprivationof the employee'sovertime premium (Nt4lSA v. NWSA Consolidated Unions, GR Nos. L-26894-96, February 28, 1969). The proper method should be to deduct the undertimefrom the accrued leave, if any, but pay the employee the overtime pay to which he is entitled. This method also obviates the irregular schedule that would result if the overtime should be set off against the undertimefor that would place the schedule for working hours dependenton the employee. (National Wateworks and SewerageAuthority v. NWSA Unions 11 SCRA 766 [1964n ART.89: EMERGENCY WORK OVERTIME General Rule: Employees cannot be compelled to render overtime work against -r,-a,rrl rg Kagitingan and Good Fridav are f,im,rrcthe 10 paid regular. holidaysinder 4{ }d of the Labor Code,.How much will. w' rCoyee receive when both hotidavs :ftr';r ir]e Sameday? xxx xxx xxx srm[ir;iee will receive200o/o of his regular ur,merrhen both regular holidaysfall on ,iffirrTe lay and he does not work. The law ss :ai he shall receivehis regular daily r:r eeoh regularholiday.The employee r{,ra' 10o016 for Araw ng Kagitinganand r: s.r3eC to 4O0% of his regular daily :fruuse, there will be dimunition of
; lr3rublel-loliday + 30o/o iil rr,e r,olrdaywage rate (400o/o\ of I ' "::': -a; dayWagefatel 800
April9 (Araw ng Kagitingan & at thesame timeGood Friday) ,- "' . pm- 10:00 5:00 pm' - 3=. nourlywage rat'e. 3r;s: Wage dividedby numberof hours r,: -;'iiplied by rest day & legal holiday
a:=
E 800 * 8 hrs ) x 400o/o = p 40O - i:npute wage between 8:00am: - .s, 19 speclalholidaywage rate. : ^ns ' P400 = P 3. 200 ,ll/ilr; - l:npute OT Premium pav between r :,r_1C 00 pm. lg,ll ',, , l-{/y'3ge-per hour) + DHWage per , - : c f O T h o u r se . g .
r:r tuod Friday. lf he workson thatday,
When
favorable
33

wnere performance or qualityof work is dependent thereon. tO,'Rute 1Sec. t,-Book //1 Ru/esImptementing tne UOoi CoaeiART.90: COMPUTATION oF ADDITIONAL COMPENSATION RegularWageshall includd cashwage only, without deductionon account of facilities providedby the employer, tor. purp*""'-ot computing oT and other iooitiln"r "remunerations in Chapter l. CHAPTER II. WEEKLY RESTPERIOD ART.91: RtcHTTO A WEEKLY RESTDAy Durationl"i,tbt tess than twenty four (24) .lot consecutive hours qfter consecutive normal "u"rv "i" .. workdays. ALL establishments and . enterprises !ote: may.operate or openfor businesi Sfi;;;" and notidays providedthJ iil;;;;d;;" "; grventhe weektyrest day ano tfie,ilieiits
tll, tRR of LC\
4. Where the Natureof the work requires continuous operations andthe stoppage of wort( mayresult in irreparable inlury oitoss to theemployer; 5. In the eventof Abnormal pressure of work due to specialcircumstances, wherethe employer cannot ordinarily be expecied to resort to othermeasures: and 6. UnderotherCircumstances analogous to - the foregoing as determined6V the Secretary of Labor.
under pfoylt"d thetaw(sec.2,R;;te ii'iix
Note: The failure to w6rk during an emptoyee's rest day does not justify the otsctpltnary sanction of outright dismissal from employmentas such is so severe a consequence,more so when justifiable groundsexist for the said failure.(Remerco Garments Manufaduring v. Minister if Gtii a Employment, GR. No. L-56176_77, feiriar4 27, 1985) . Whenan employee volunteers to work on his restday underothercircumstances, he may be allo\,ved to do so; providedhe xpresses suchdesirein writingand he is paid the additional compensation for workingon his restday. ART.93: COMPENSAT|ON FORRESTDAy. suNDAY, Oq HOLTDAYWORK
bargaining agreement; regulationsissued by the X:l-._3nd.. pecretary of Labor; and ^ r. Emptoyee's preference basedon religious grounds. z. suchpreference wiil prejudice the L:}.-yn"noperations D.usrness of the empllG;;il;; other remedial measr
and schedulesthe '" y"Tl,::l!"J_"-o subject to tnero[owinll I volecttve
Who Determines: The.employer deterinines
Premium Pay or Differentiat Compensation - additional compensation for work renOeieJ b.V tlg employee on days wnen normatty ne shouid not be working such as sp6ciJ holidays andweeklyrestdays. Note: This article does not prohibit a s{ipulation in the CBAfor higherOen'etits. Formulato Compute Wag-s on notruavs lMemorandum Circular No. 7, Senesof iOO+1 1. For REGULAR HOLIDAYS, tne toilowirlg rules
weekry 'J *;;;i'f" 3li"3lilF?i13"i thee.mptoyee's choice

for t;;;itr"'il;""; month (Sec. 4, Rute "t ii,-tni';;i;i" tn. aoox
DAY
$rttEN EtspLDyER )rAyREourRE $lT.g! WORKON REST

GeneralRule: The employer qlay.not,rgqujre theemployees to *ork on a restday. Exceptions: (UPANAC) 1. 11""::" of Urgentwork to be performed on the machinery, equipment, oi rnstallation: 2. To Prevent loss or.damage to perishable goods; 3. o"u. of Actual or impendino lLemergencies caused by force îlirri iZ prevent loss of life and propl,rtv,oi vr imminent dangerto prnrrc ""tjvl""'"' 34
as
Public , and
$sn &etrs@ollege of Lab 2011CENTRALIZED BAROPERATIONS

a. lf unworked- No pay, unlessthere is a favorablecompany policy, practiceor collectivebargaining (CBA) agreement grantingpaymentof wages on special days even if unworked b. lf worked i. 1st 8 hrs. - Plus 30% of the daity rate of 100% ii. Excess of 8 hrs. - plus 30% of hourlyrate on said day c. Falling on the employee's restday and if worked i. 1st 8 hrs. - Plus 50% of the daily rate of 100% ii. Excess of 8 hrs. - Plus 30% of hourlyrate on said day 3 For those declared as SPECIAL WORKING HOLIDAYS, the foilowingrutes shallapply: ' . For work performed,an employee is entitled only to his hssl6 rate. No premium pay is required since work performedon said days is considered work on ordinaryworkingdays. List of Special Days A. National 1. A/l Sarnf'sDay - November1 2. LastDay of the Year- December31 3. Ninoy Aguino Day - Monday nearest August 21 (R.A. 9492, Juty 25, 2007) 4. Other days declaredby law B. Local Those declared by law or ordinance(e.g. Makati Day for Makati City onty\ Note: In the event the holiday falls on a Wednesday,the holiday will be observed on the Mondayof the week lf the holidayfalls on a Sunday,the holidaywill be observedon the Mondaythat follows (R.A. 9492). Compensable even Rate of Additional Compensation for Work on a Rest Day, Sunday or
3006of regular wage
Work on a scfieduled rest day
workdays No regular rest and no specific days whenit Workon Sunday is his established rest oay
Work on specialholiday
wage 30olo of regular on for work performed Sundays andholidaYs

of regular wage 30016
30chof regularwage
wage Workon special holiday 50% of regular rest falling onscheduled day
Work on regularholiday rest fallingon schedulecl dav 260% of regularwage
SERVICE CHAPTERIII. HOLtDAYS, LEAVESAND SERVICE INCENTIVE CHARGES TO HOLIDAY PAY ART. 94:.RlGFlT Holiday Pay - a day's pay given by law to an employee even if he does not work on a regularholiday.lt is limitedto the twelve (12) regular, also called legal, holidays listed by should not have been law. The "employee absent without pay on the work,ng day preceding the regularholidaY. Note: ln additionto the exceptionsprovided in Aft. 82, Holiday PaY does not aPPIY to employees of retail and serviceestablishments regularlyemployingnot more than 10 workers (Sea 1, RulelV, Book lll, IRR of LCl. List of Regular Holidays (NMALINCRE'zB) as amended by RA 9492, JulY 25' 2007 F
enumerated by tte law or ordinancemay LaborCodeandspecial provide for otherspecial laws holidays
9. 10.
4a
35

Note: There must be no distinction between Muslims and non-Muslims with regard to payment of benefits for Muslim Holidavs: wages and other emoluments are laid down-Oy law and not based on faith or religion (San !t_oye! corp v. CA, GR No. 14677d,,taiuary 30,2002). Rylg. on Compensability: compensable . whetherworked or unworkedsubjectio certain conditions r Legal holidayfallingon a Sundaydoes not create an additionalworkday nor create a legal obligationfor the employer to pav extra, aside from the usuat notiOav pav to its monthlypaidpmployees. Double Holiday Pay (i.e. Araw ng Kagitingan and Good Friday falts on same day) 1. 200o/o of the basic wage a. Entitled even if said holiday is unworked b. To give employee only 100o/o would reducethe number of holidaysunder D . O .N o .3 2. 400% if he worked on 2 regular holidays falling on the sameday 3. 520o/o ot the basic wage if he worked on 2 regular holidaysfalling ofi the same day and at the same time, fallingon scheduled rest day(Asran TransmissionCorporation. V. CA, GR No. 144664,March 15, 2004.) Single HolidayRule Providedthat the employee: 1. Worked; 2. Was on leavewith pqy; or 3. Was'on authorizedabsence on the dav priorto the regularholiday. Sucesive Regular Holidays To be entitledto two (2) successiveholidays, the employeemust: 1. Be present on the day immediately preceding the first holiday;OR 2. Be on leavewith pay. o Otherwise, he must work on the first holidayto be entitledto holidaypay on the second regular holiday (5ec.10, Rule lV, Book lll, IRR of LC| '
Holiday Pay ot Monthly paid Employees The divisor assumes an important 'hofiJay role in determining whether or not p;t ;; alregdy inctuded in the monthlv' baiO empfoyee's salary. (producers Bank of the Hnnppnes v. NLRC, GR No. 10O701, March 28,2001) a. As,a general rule, for the company with a 'oiui"oi 6-day working schedute, tn" iiiq already means that the legal holidays are inctuded in the montht! pay ;f il; employee. The divisor is airiveO at Ov subtracting ail Sundays from tne iot_jt numberof calendarOay-s in a year. . b. As a generat rute for compin/ with a A " tne Oivisor day working schedule, mt means that the holiday pay is alreadv
employee
inctuded in the monthiy'"ir"rv ;i-i;;
personnel !uJ9 on Holidaypay of Teaching Paid Per Lectuie Hour memberspaid by the hour by virtueof Itylv rcaching rner antracts: 1. They are NOT entifledto payment of holiday paybecause theyare p.i'J onfutoi work actually done.Sinceregular n"fi6avs are known to both schooi and facuitv 'no ce11ainty lngmpeF.as classdays.';. fh6 latter do,'not exfect payment:'for'said unworked days,and this-wasclearlvin Inelr minds when they enteredinto the teaching contracts. 2. They are however entifled to their reqular rat" on days dectared;" !1y1tv noldaysor whenclasses "E;i;i are called off or shortened on account of typhoons, n*0". rallies,and the tike Oecduse tni tacufiv atthoughforced to tafe a resi 11IF! ooesnot earnwhathe should earnon thai day. (JoseRizatCoilege y NLRC GRN;. L-6Aa2 December t, 7sazl 36
of IetD Ssn Sebs@oltege 2011CENTRALIZED BAR OPERATIONS

Absent withpay w/out 9ay Absent Mout pay Regular Holiday
Regular Holiday
Regular Holiday
Regular Holiday Kegular Holiday No - Both
YES - But Only To The Holiday Pay On
Effects of Business Closure on Holiday Pay lf regularholidayoccursduring: 1. Temporary or periodic shutdown and temporary cessaf,bn of work of an establishment- the regularholidaysfalling within the periodshall be compensated. 2. Cessaflon of operation of an enterprise due to lrrsiness reyerses as authorized by the Secretary of Labor - thc regular holiday may not be paid by the employer (Sec. 7, Rule lV, Book lll, IRR of LC). ART. 95: RIGHT TO SERVICE INCENTIVE LEAVE(SrL) Concept of SIL Five (5) days leave with pay for every employeewho has rendered at least one (1) year of service. One {1} Year of Service - service within 12 months, whether continuous or broken, reckoned from the date the employee started working including authorized ahences and paid regular holidays unless the number of as a mafter workingdays in the establishment, of practice or policy or as provided in the contract,is less than 12 months. employment SIL Does NOT Apply to the following: (GoDMan-FV-Ben10) 1. Employeesof the pvernment; 2. Domestic helpers and persons in the personalseMce of another; 3. @agerial employeesas.defined in Book ': 'r':,!
3; ' i.'. . ,"' 'l ':'!il fi ::" r,' :'.' ' .':' .
Note: Employeesengaged on task or contrad basis or paid on purely commissionbasis are not automatically exempted from the grant of service incentiveleave unless they fall under the classification of field personnel. The phrase'other employeeswhose performance :s unsupervised by the employer', In Sec*lon t(D), Rule V, Baok lll o;t the lmplementing Rules and Regulations of the Labor Code, leryes as an amplificationof the definitionof field personnel under the Labor Qode. (Auto Bus Transport Systemg Iffc v. Bautista, GR t'lo. 1ffi367,May 16, 2005) lonversion to Monetary Equivalent ....$.t,L,is to cash i.e.. convertible COMMUTABLE. ' " not used or exhaustedat the end of the year. ihe cash equivalent is aimed primarily at :rncouraging and workersto work continuously with dedication to the company. Basis of conversionshall be the salary ;te at the date of commutation. The availment ,::d commutation of the service incentive ave benefit may be on a pro-rata basis (No. Vl [C], DOLE Handbook on Workers'statutory t.tonetary Benefit). r who is illegallydismissed,is An employee, entitledto seryice incentive leave benefits computed one year from the date she started working until the date of her actual reinstatement. (lmbuido v. NLRC, GR No.114734, March 31, 2AOA) .. Article 291 of the Labor Code is not a prescription of a period of time for the computation of , money claims but is a prescription of filing an action upon monetaryclaims from the time the cause of action accrued.'Theemployee may use his service incentive leave benefits as leave days or he may collect its monetary value. To limit the award to three years is 'jote:
tou
Field personnelwhose performance is or thosewho are paida fixed unsupervised amount for performing workirrespective of the time consumedin the performance thereof; Thosealready enjoying the said@efits; 6. Those already enjoyingyacation leave with payfor at least5 days;and Those emptoyed in establishments regularly employing less . than 10 employees;(Sec. 1, Rule V, Book lll, Rutes lmplementing the LaborCode)
outside whose
37

their work cannot be ascertainedwith reasonablecertaintyand thus are not under the direct supervision of the employerare not entifledto SIL (Labor Congressof the philippines.v. Llt-RC; Employees with Salaries above Minimum Wage The difference between the minimum wage and the actual salary received bv the employees cannot be deemed as their 13th month pay and service incentiveleave pay as such difference is not equivalentto or'oithe same importas the said benefitscontemplated by faw (JPL Marketing promotions v. Ciurt if Appeals,GR No. 151966, Juty,,8.^2005) Vacation and Sick Leave Not statutorily required; matter of MANAGEMENTDTSCRETTON or a procruct of collectivebargaining agreement. General Rule: Benefits are non_cumulative and non-commutative; must be enjoyed by the employeewithin 1 year, otherwise, tney are considered waived or forfeited. Exception: When the labor contract or the eslablishedpracticeof the employer prbvides otherwise. and conditionsof employmenton account of his/herstatus. . A change in the status or circumstance of the parentclaimingbenefitsunderthis Act. such that he/she is no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility for these benefits (Solo parent's Welfare Act of 2000). Note: Unutilized parentSl leave is not convertible to cash unless otherwise agreed. Non-compliance Wth the law mav make the employer liable for Oamagei (Azucena,2aO\. Battered Woman Leave (RA. No. 9262 _ Anti-Wolence Againsl Womq, and Their lh-lldrc.n Actof 2d)1, March A, 2(n1, A female employeewho is a victim of violence (physical,sexual or psychological) is entifled to a paid leave-of TEN DAYS in addition to othdi' paid ,leaves. The leave is extendible when the necessityarises. The employeehas to submit a certification from tie'punong barangay, kagawad, prosecutor or clerk olf court that an action under R.A. No. 9262 has been filed anfl is pending. Maternity and paternity Leave (See dlscussion under SSS, paternity Leave Act and Aft. 133). ART. 96: SERV|CE CHARGES Concept All service charges collected by hotels, . restaurantsand similar establishmentsshali be distributed as follows: 1. 85o/o for all covered employees to be - equallydistributedamongthem 2. 15o/o tor tto
Mandatorylegally required underAft. 95, LC Intended to alleviate the economic condition of the workersfor it acts as replacement for regular irrcome that wouldnot be earned during such instance
from:employer,s discretionary policyor fromCBA Intended to.afford a laborera charrce to get a muchneeded restto replenish hiswomout energies and acquire newvitality to enable him to effcienily perfonnhis dutiesand not merely to givehim additional sahry iE,opportrneti4e, othenarise. silenie wouldequateto waiver, samebeinga mere concession or act of
and
Cannot bewaived
':
Parental(Solo parent)Leave o Nol more than SEVEN (7) WORKTNG DAYS EVERYYEAR is Sirjnteo-io'anv solo.parentemployee whd has renaeiei servtce of at leastone(1) year. . N9 employer shalldiscriminate aoainst anv sotoparent employee withrespec-i toierml 38
of which
5an Sela 6otlegeofLsb BAROPERATIONS 2011CENTRALIZED

Distribution The shares referred to herein shall be distributed and paid to employees not less than once every 2 weeks or twice a month at intervalsnot exceeding 16 days. (Sec.4 Rule Vl, Book lll, IRR of LC ) Rule in case of Abolition r In case the service charge is abolished, the share of the covdred employeesshall in theirwages. be consideredintegrated . The basis of the amount to be integrated shall be the average share of each employee for the past 12 months immediately preceding the abolition or withdrawal of such charges. (Sec. 5 Ru/e Vl, Book lll, IRR of LC) Pooled Tips Where an establishment does not collect servicechargesbut has a practiceor policy of poolingtips given voluntarilyby its customers, the pooled tips should be monitored, accounted for and distributed in the same manner as . the service charges (DOLE Handbook on Workers' Statutory Monetary Benefits,2@6 Ed.). TITLE TWO: WAGES MATTERS CHAPTERI. PRELIMINARY A R T . 9 7 :D E F I N I T I O N S Agriculture - includes farming in all its branches,and, among other things, includes the cultivationand tillage of soil, dairying,the growingand harvesting production, cultivation, agricultural and ,. horticultural of any the raisingof livestock or poultry, commodities, and any practices performed by a farmer on a farm as an incident to or in conjunctionWth such farming operations,but does not include the manufaduring or processing of sugar, coconuts,abaca, tobacco, pineapplesor other farm proclucts.
.ir-':.
Fair and Reasonable Value - shall not include any profit to the employer or to any personaffiliated with the employer. Fair Day's Wage for a Fair Day's Labor ("No Work, No PaYPrinciPle") lf there is no work performedby the employee' there can be no wage or pay unless the laborer was able, willing, and ready to work but was illegally locked out, suspended or from or otherwiseillegallyprevented dismissed working (Aklan Electric Codp. v. NLRC, GR No. 129246,January 25, 20@) Equal Pay for Equal Work Employeesholdingthe same positionand rank 'to'be perfornring equal work. are presumed The rule equal pay for equal work applies whether the employee is hired locally or abroad (lnternational School Alliance of Educators v. Hon. Quisumbing, GR No. 128U5, June 1, 20O0).
skilled or unskilled workers and denote a grade of higher manuallabor employment is not exempt from Under Article 1 the Civil Code, it b not execution, garnishment subject to execution, or attachment (Gaa v. garnishment or CA, GR No. L-44169, attachment except for December 3, 1985). debts related to food, clothing, sheher and medicines.
Wage or Salary includes: 1. Commission 2. Facilities 3- Commodities/Supplements Commission - direct remunerationreceived by an agent, salesman, executor, broker, or
se$i. *Esefor but arti the the
or earnings,however Wage - the remuneration designated, capable of being expressed in terms of money,whether fixed or ascertained on a time, task, piece, or commissionbasis or the same, which is other methodof calculating payableby an employerto an employeeunder a written or unwritten contract of employment for work done or to be done or for services renderedor to be rendered'and includes the fair and reasonablevalue, as determined by the Secretary of Labor, of board, lodging, or other facilities customarily furnished by the employerto the employee.
39

3. The facilitiesmust be charged at fair and reasonable value (Mabeza v. NLRC. GR No. 118506, Aprit 18, 1997). Supplements - constituteextra remuneration or special privileges or benefits given to or receivedby the laborersover and above their ordinaryearningsor wages. 6. Workers of a Barangay Micro Business e n t e r p r i s e( R . A . 9 1 7 9 , N o v e m b e r 1 3 2002) Note: For a retail/service establishment to be exemptedfrom the coverage of the minimum wage taw, it must be shown that the establishment is regularlyemployingnot more tnan ten (10) workers and had applied for exemptions with and as determined by the appropriate Regional Board. (C. planas Commerciat v- NLRC, GR N;. 144619 November 11, 2@5) CHAPTERII. MINIMUM WAGE RATES ART.99: REGIONALMINIMUM WAGES Minimum Wage - lowestbasicwage rate fixed by law that an employer can pay his employees. e Foods or snacks or other convenience provided by the employer are deemed supplements if they are granted for the convenience of the employer. The criterion In making a distinction between a supplement and a facility does not lie in the kind but in its purpose.(Mayon Hotel& Restaurantv. Adana. GR N;. iSl\s+, Uay 16,2@5) Ability to Pay lmmaterial The-employer cannot exempt himself from liability to pay minimum wages because of poor financial condition of the company; the payment of minimumwages is not dependent gl t!" emptoyer'sabitityto pay (De Rachov. -Aio. (unicipality .of iligan, GR L_2354i, January 2, 196e) Estoppel Not Applicable The acceptanceby an employeeofthe wages paid him without objec{iondoes not give ris6 to estoppel precluding him from suing for the difference between the amount received ahd the amount he should have received pursuant to a valid minimum wage law where it does not appearthat the employerchangedhis position to his own prejudice. o The employer is under no obligation to imd across the board.
Items of expense necessary tor the laborer's and his family's existence and subsbtence
Part of the wage
Constihrte extra remuneration or special privileges or benefts given to or receivedbv the laborers over ani above thejr ordinary earnings andwagg-f ''
Gratuity - something given freely or without recornpense to reward employees who hive rendered satisfactory and efflcient service to the company. lt does not form part of the wage Allowances - amounts of money, which are not .9art.. of wages, but are' given i; consideration of certain expenies lik; transportationand representation. ART.98: APPLIGATIONoF TITLE General Rule: Tifle on Wages appties to all employees. Exceptions: tenancyor leasehold; 1 F.arm 2. Householdor domestichelpers; J .tlgqeworkers engaged in needte_work; 4. Workers employed in any establishment outy registeredwith the National Cottaoe Industry DevelopmentAuthority f.fnCf Oil t and 5. Workers in duly registered cooperatives when so recommended by the eureiu of Cooperative Development upon approval bythe Sec. ofLaboC
When The 1. The policy longperiod;
40
of Lelo Sun Sebe@ollege 2011CENTRALIZED BAROPERATIONS

2 The practiceis consistentand deliberate;
The oractice is not due to error in the or applicationof a doubtfulclr construction difficultquestionof law; and is done or discontinuance The diminution by the'employer. unilaterally General Rule: Nothing in the Labor Code shall be construedto eliminateor in any way diminish supplements,or other employee benefits being enjoyed at the time of promulgation of this Code. Benefits being given to employeescannot be taken back or reduced unilaterally by the employer because the benefit has become part of the employment contract, written or unwritten. Note: The SG, in Arco Metals v. SAMARMNAFLU, G.R. No. 17O7U, May 14, 2008, held that, it may be safely concluded that the proper legal bases for the invocation of the principlethat any benefit or supplementbeing enjoyed by employees cannot be reduced, or eliminatedby the employerare discontinued the following: i. Express terms of an employment agreement; 2. Company practice which refers to the implied terms of an emPloYment agreementwhich the employerhas freely, voluntarily and consistentlyexetendedto . its employees and thus cannot be withdrawn except by mutual consent of the contractingparties; 3. The Conslitution (Sec. f 8 Art ll and $ec. 3 Art. Xlll): and 4. Aft.4oftheLaborCode Exceptionsto the Non-DiminutionRule (CoNWaB- RcP) 1. @rrection of error 2. $egotiated benefits 3. Sge order compliance basis 4. peneflts on reimbursement 5. Beclassificationofposition :, j . -. bdnus 6. Contingentbenefttsof conditional 7. Productivityincentives Bonus - amount granted and paid to an employee for his industry and loyalty which contributedto the success of the employer's businessand made possiblethe realizationof profits. General Rule: Bonus is not demandableas a matter of right. lt is a management prerogative, given in addition to what is ordinarily received by or strictly due to the recipient (Producers Bank v. NLRC, GR No' 10A7U, March28,2001). Exceptions: l When it was promisedto be given without any conditionsimposed for its payment in which case it is deemed part of the wage; 2. When it has ripenedinto practice (Marcos v. NLRC, GR No. 111744, SePtember8, 7995). 13th Month Pay or lts Equivalent (See dlscussion under 1fn-Month Pay Law) Additionalincome based on wage requiredby to 1/12 of the P.D. 851 which is equivalent total 'basic salary' earned by an employee year withina calendar regularwage, receiving Note: For employees tfie term "basic salary" does not mean the amount actuallyreceivedby an employee,but 1112 of their standardmonthlywage multiplied by the length o-ftheir service within a given calendar ,year. The payments for sicK vacation, and maternity leaves, night differentials,holiday pay, and premiums for work done on rest days and special holidays are excluded from the computationof "basic salary". (Holda Pltils., lnc. v. Samahan ng Malayang Nlanggagawa sa Honda, GR No. 145561, June 15,2005) . Every employeereceivinga commissionin addition to a fixed or guaranteedwage or salary is entitledto a thirteenthmonth pay' which must E 1112of their total earnings during the calendar year. (Philippine Agricultural Commercial and lndustrial Workers lJnion v. NLRC, GR No. 107994, August14, 1995) than December24.
4t

9:1ryln..for the ptight of the working masses. (PD 851) Pro-Rated 13thMonth pay An employee who has resigned or whose seryices were terminated at any time before the payment of the j3h month pay is entifled to this monetary benefit in proportionto the length of time he worked during the year reckoned from the time of his resignationor termination from service. Commissions in Relation to 13thMonth pay 1. The salesmen's commissions,comprising a pre-determinedpercent of the selling price of the goods sold by each salesmanl" were properly INCLUDED in the term "basic salary' for purposes of computinq their '13' month pay. (phiiippin-e Duplicators, tnc. v. NLRC. GR No. t tb:OOa, February 15, 1995) 2. The so-called commissions paid to or 1e9ei1ed by medical representative of Boie-Takeda Chemicalsor by the rank and file employees of philippine Fuji Xerox were excludedfrom the term "basicsalaM because these were paid "PRODUCT]VITY BoNUSEd'. "" Such bonuses closely resemble profit-snirlng payments and have no clear, directl necessary relationto the amount of work 3:ct!alUdone by each individualemployee. (Boie-Takeda Chemicals, lnc. v.'Oe ta Serna, GR Alo. 92174, December 1O, 19e3) Productivity Incentives 1. Kind of bonusthat comes from productivity gain; Z to flmg .instituteproductivityat company level and the sharing of productivity'gain betweenemployers and employe""; ^ 3. Nature of salary bonus is proportionate "riO to ' increases in current productivity '1ggT, (Productivity lncentives Act of R.i. 69711 2. Pakiaw or Takay - works awav from the employer,s work premises and are not direcfly supervised bV the employer. B. As to Rate of payment 1. Those paid piece rates as prescribed in PieceRateOrdersby the DOLE. 2. Those paid output rates which are prescribedby the employer and are not yet approvedby thqDOLf. Benefits Payable to piece_Rate Workers whose Work is Direcfly Supervised by the Employer Applicablestatutoryminimumdaily rate, ]. 2. Yearly service incentive leave of hve Oavs with pay; 3 Night shift differentiat pay; 4. Holidaypay 5. Meal and rest periods; 6. Overtime pay (conditional); 7. Premium pay (conditional); 8. 13s monthpay;anO 9. Other benefitsgranted by law, individual or collective bargaining agreements or companypolicyor practice. Note: The rulqs implementing the LaborCode on NSD and SIL DO NOT apptyto emptoyees yh9:e time and performanceis unsupervised by the employers, inctuding those who are engaged on task or contract basis, purelv commissionor those who are paid a'fix6d amount for performingwork irrespectiveof the time consumedin the performance thereof. CHAPTERItI. PAYMENT OF WAGES ART. 102: FORMSOF PAYMENT
WorkersPaidon piece-Rate Basis Thosewho are paid a standardamountfor every piece or unit of work produced that is more or less regularly replicated, without . to the time spent in producing the :S_3fd same. Categoriesof piece-Rate Workers A. As to Presence of Control 1. Piece rate worker _ works direcfly under the superuision of their employer 42
order 1.C
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of special because Necessary circumstances as determined by the Secretaryof Labor; in the CBA; or Stipulated Where the following conditions are met: (1PRc) a. There is a bank or other facility for encashment within a radius of f kilometer from the vrorkplace, b. The employer,or any of his agentsor does not receiveany representatives, pecuniary benefit directly or indirectly from the arrangement; c. The employees are given leasonable time during banking hoursto withdraw their wages from the bank which time shall be consideredas compensable hours worked if done during working hours:ancl d. The payment by check is with the written gonsent of the emploYees concerned if there is no CBA authorizingthe payment of wages by bpnk checks (National Federation of Labor v. CA, October 19, 2@4\. ART.103: TIME OF PAYMENT GeneralRule: ' At least once everytwo weeks, or 2 Twice a month at intervalsnot exceeding 16 days. Exceptions: ' ln case of force maieure or other circumstances beyond the employeis control, payment must be made immediately after such' occurrence has ceased. 2 lf engagedto performa task which cannot. be completed in 2 weeks and in the award: absenceof CBA or arbitration a. Payment shall be made at intervals not exceeding 16 days, in proportion to the amount of work completed; b. That final seftlement is made upon completibnof the work ART. .IO4:PLACE OF PAYMENT General Rule: At or near the place of -rdertaking. Exceptions: (DFA) ' When payment cannot be effected at or near the place ,of work bf reason of g[eterioration of peace and order conditions, or 'by reason of actual or impending emergencies caused by fire, flood or other calamity renderingpayment thereat imPossible; 2. When the employer provides for lree to the employeesback and transportation forth; and 3. Under any other 3nalogouscircumstancesProhibition: No employer shall pay his employees in any bar, night or day club, massageclinic, dance drinking establishment, hall, or other similar places or in placeswhere games are played with stakes of money or things representingmoney except in the case of persons employed in said places. (Sec- 4' Rule Vttt, Book lll, Rules lrfiplementing the Labor Code) Requisites for Payment thru Banks {WEO) 1. There must be written permissionof the concernedin an majorityof the employeeS establishment: 2. The establishmentmust have 25 or more gmployees;and 3. The establishmentmust be locatedwithin gne kilometer radius to the bank {Sec. Z Wage Rationalization Act). Note: Payment through an ATM is allowed, provided the followingconditionsare met: (WRAP-EDeR) 1. The ATM system of payment is with the 'gritten emPloYee . consent of the . Cbncerned: 2. The employee are given leasonable time to withdraw their wages from the bank facilitywhich, if done duringworking hours, shall be consideredas compensablehours worked: 3. The system shall allow the employee to receive their wage within the period and in the amount prescribed under the Labor Code; 4. There is a bank or ATM facility within a radiusof 1 km. from the workplace; 5. Upon the request of the concerned emptoyee, the employer shall issue a
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ART. 105; DIRECTPAYMENTOF WAGES GeneralRule: Wagesshall be paid direcfly to the workersto whom thev are due. Exceptions: 1. Payment through another person a. In case of force majeure rendering such paymentimpossible providedsaid person is under written authoritygiven by the workerfor the purpose; b. When authorized under existing law. including payments for insurance premiumsof the employeeand union dues where the right to check-off has been recognized by the employer in accordancewith a CBA or authorized in writing by the individualemployees concerned. 2. Payment through the Heirs of the Worker In case the worker has died, employermay pay wages of the deceased worker to the heirs of the latter without the necessityof intestateproceedings. Procedure: a. Claimants shall execute an affidavit attesting their relationship to the deceased and the fact that thev are his heirs,to the exclusionof all others (Atfidavit af Next of Kin\: b. In case of a minor heir, affidavitshall b executed on his behalf by his naturalguardianor next of kin; c. Affidavit shall be presented to the employer who shall make payment through the Secretaryof Labor or his representative, d. The representative shall ac.tas referee in dividing the amountpaid amongthe heirs;and e. Payment of wages under this Article ' shall absolve the emploler of any further liability with respect to th6 amount paid. (Sec. 6, Rule Vllt, Book . lll, Rules lmptementing . the , Labor : Code) 3. Payment through a family member of the worker's famity Where the employer is authorized in writing by the employeeto pay his wages to a memberof his family.(Sec. 5[b]) Summary of Lqgal prohibitions on Wages 1. Paymentof wages in non-cashform: 2. layment of wages in night and day clubs, bars and other similarplaces; 3. Non-diminution of wages;, and 4. Non-interference by the employers in the employees'dispositionof their wages. of Rules on P promissoynotes, Proh ibited-. vouchers, coupons,tokens,tickets,chits, or any otherobjectotherthanlegaltender.
9nce every tlvo weeks or twice a month at intervals not exceeding 16
ART. 106: CONTRACTOR SUBCONTRACTOR
oR
Types of Contrac6rs under the Law 1. Job Contracting or Subontracting - an arrangement whereby a principalagreesto put out or farm out with a contractor.or subcontrac{or the performance or ctlmpletion of a specific job, work or seryice within a definite or predetermined period, regardless of whether such job, work, or service is to .be performed or completedwithin or outside the premises of the prilcipal. Existence of Trilateral Relationship Under this legitimate contracting, the followingCONTRACTSexist: a. Contract for specific ,;ob, work or service betweenthe principaland the contractorlsubcontractor; and b. Contraot of employment petween the contractor/subcontractor and its workers. Hence,the PARTIESinvolvedare. i. Principal;
on his to its free

of
44
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ill
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and machineries, work premises and other materials necessary in the conduct of hisbusiness; c. The egreement between the principal and contractor or subcontractor assures the contractual employees entitlement to all labor and occupational safetyand healthstandards, free exercise of the right to selforganization, security of tenure and social and welfare benefits (D.O. No. 10 of 1997;Baguiov. NLRC, GR Nos. 79004-08, October 4, 1991); and d. Must be properlyregisteredas 'such in accordance with D.O.No. 1&02.
splits a bargainingunit, if such contracting out is not done in good faith and not justifiedby businessexigencies; 3. Contracting with a Cabo- person/sor labor group which, in the guise of a labor organization, supplies workers to an employer,with or without any monetaryor other consideration whetherin the capacity of an ageht of the employer or as an ostensi contractor; ble independent 4. Contracting with ln-houseagency; R Contractingbecauseof #'$trike or lockout; and Contracting that constitutes lLP under Art. 248.
, '
Note:The absence of a registration onlygives rise to the presumption that the contractor is engaged in labor-only contracting, a presumption that can be refuted (Aklan, et al v. San Miguel Corp., BMA Philasia,lnc., et al, GRNo. 168537, Deember 11,2008). 2. Labor Only Contracting an arrangement where the contractor or subcontractor merelyrecruits, supplies or placesworkers to perform a job, work or servicefor a principal, and ANY of the following ELEMENTS is present: a. The contractor or subcontractor does not have substantial capital OR investment which relatesto the job, work or serviceto be performed, and the employees recruited, supplied or placed by such contractor or subcontractor are performing activities whichare directly related to the mainbusiness of the principal; or b. The contractor does not exercise the right to controlover the performance of the work of the contractual employee. Substantial Gapital -, gqpital ..stgcks,,end subscribed capitalization In the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontrac'tor in the 'performance or completionof the job, work or service contradedout. Summaryof Prohibited LaborContracting (LT-CrSU) 1. labor-onlycontracting; 2. Contracting that ferminates the .or employmentof regular employees, reducestheir work 'hours,or.reducesor
The employer/principal The employer/principal is merely an indirect is treated as direct the employer,by operation employer of contractor's employees of law, of his in all instances contracto/s employees (contractor is deemed (ftl AutonationCenter, agent of the employel lnc. v. NLRC, January (Manila WaterCompny 29, 1996). v. Pefia,July 8, 2004). Ee relationshipfor a limitedpurpose,Le. to ensure that the employees are paid their wages (SMC v. MAERC lntqrated Serwbes,Inc., July 10,
The principal becomes solidarily liable with the
The statute creates an Er-Ee relationship for a comprehensive purpose, /.e. to prevent a circumvention of labor laws (SMC v. MAERC lntegrded Serwces, lnc.,July 10,2003).
contrastorin the event the latterfaitsto pay the employees'wages and for violation of labor standard laws. The liability,however, does not extend to the
The principalbecomes solidarilyliablewith the contractornot only for unpaidwages but also claims for all the rigtrfful under of the employees
abor Code and
ll$ LA\c'
Note liable incl
ILY any
prevent. rei /VTRC, GR
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. The principal shall be deemed the employer of the contrac,tual employee in any of the folloring cases as declared bv competentauthority: 1. Labor-only contracting; and 2. Contractingarrangement falling within the prohibitions. employer. (Development Bank of the Philippinesv. Secretary of Labor, GR No. 79351,November28,1 989 Suspension of paymentsorder by the SEC mandates the holding in abeyance the filing or the proceedings on labor cases against an employer who is under rehabilitation to give the employer the chanceto concentrate on how to revivehis businessand not be distractedin trying to defend itself in labor cases filed against it (Rubbervvortd, tnc. v. NL?C, GR No. 126773,April 14, 1999).
ART. 108: POSTTNG OF BOND An employeror indirect employermay require the contractor or subcontractorto furnish a bond equal to the cost of labor under contract, on conditionthat the bond will answer for the wages due the employees should the contractoror subcontractor, as the case mav be, fail to pay the same. Note: Where the employerfails to requirethe contractorto pos! a bond, the employermust answer for whatever liabilitiesthe contractor may have incurred to his employees.This is without prejudiceto its seekingreimbursement from the contractorfor whateveramount it will have to pay the said employees (Baguio v. NLRC, GR Nos. 79004-08,October 4. 19911. A R T . 1 1 0 : W O R K E R P R E F E R E N C EI N CASE OF BANKRUPTCY Workers shall enjoy first preference as regards their unpaid wages and other monetary claims, any provision of la,rr to the contrarynotwithstanding. r Establishesa preferenceof credit and not a lien; (Development Bank of the Philippines v. Secretary of Labor, GR No. 79351, November 28,1989) r Covers not only unpaidwages but also all other monetaryclaims; . Applicable only to ordinary, preferred credit, hence, must yield to special preferred credits (e.9. secured creditors); o This Article did not sweep away the overridingpreferenceaccorded under the scheme of the Civil Code.totax claims of the government. . ' Conditions i. : ,r. .). 1. Formal declaration of insolvency or bankruptcy; 2. Generaljudicial liquidationproceedingsof the employeis busihess;and 3. Filing of claimsby workers.. Note: The worker preferenceis not applicable in case the employer-corporation is under rehabilitation.
ART. 111: AfiORNEY,S FEES Rules: 1. In casesof unlavfulwithholding of wages, the culpable party may be assessed attorney'sfees equivalentto 10% of the amountof wages recovered. 2. lt shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the rcovery of the wages, attorney's fees which exceed10o/o ol the amountof wages recovered. (See drscussions in Aft. 222.) Concepts of Attorney's Fees a. Ordinary,; reasonablecompensationpaid to a lawyer by his client for the legal serviceshe has rendered. b. Extraordinary - indemnity for damages ordered by the court to be paid by the losing party in a litigation,and is not to be paid to the lawyer but to the client, unless they have agreed that the award shall pertain to the lawyer as an additional compensation or as a part thereof (Traders Royal Bank Employees tJnionlndependent v. NLRC,March 14, 1997). "Union Service Fee"
-.
10
r
ply.Oe.jnvgfed onty during bankruptcy or judicial liquidation proceedings against-the

46
The prefererrtial . right accorded to employeesand workers under Articte 110
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wages (Att. 112, Non-lnterferenoe in Dlsposa/ of Wages); 2. No employershall force, compel,or oblige employees to purchase merchandise, commodities or other property from the employer or from any other person, or otherwise make use of any store or services of such employer or any other person (Nt. 112, NonJnterference in Disposa/ of Wages); No employershall make any g[eductions from the employee's wages except when authorized to do so (Arf. 113, Wage Deduction); No employer shall gequire the worker to make depositsfrgm which deductionsshall be made fors'reimbursementof loss of or damage to tools, materials,or equipment supplied by the employerexcept when the employer is engaged in such business requiring such deposits as determined by the Secretary of Labor (4ft. 114, Deposifs for Loss or Damage); No employer shall make any deduction from the employee'sdepositsfor the actual amount of the loss or damage unless the employee has been heard thereon and his has been clearly shown (Arf. responsibility 115, Limitations); No .employer shall githhotd any amount from the wages unless authorizedto do so (Nt. 116, Wthholding of Wages and Ki ckbacks Prohi bited); No employershall lnduce the employeeto give up any part of his wages by force, threat or dismissal or stealth, intimidation, by any other means without his (worker) consent (Att. 116, Wthholding of Wages and Kd<backs Prohibited); No employer shall make deductions as considerationof a promiseof employment or retention of employment (Art. 117, Deducti on to Ensure Employm ent); 9. No employershall refuse to pay or reduce the wages and benefits or otherwise dischargethe employeewho has filed any complaint un{eg this"T$g,.o[.haq teslified . or is about to testify in such proceedings (4ft . 118, Retaliatory Measures.);and 10.1{o employer shall make any gtatemeni, report or record knowing such statement, report or recordto'be false in any material respect (Att. 119, False Repofting). 112: NON-INTERFERENCE ART. OISPOSALOF WAGES IN Att. 1706.Withholdingof the wages,exceptfor a debt due, shall not be made bY the emPloYer. Art. 1707. The laborer'swages shall be a lien or the on the goods manufactured work done. Att.17O8 The laborer's wages shall not be subject to executionor attachment except for debts incurredfor food, shelter, clothing, and medical attendance. seize nor Att. 1709.The employershallaheither retain anY tool or other articles belongingto the laborer. A R T .1 1 3 :W A G E D E D U C T I O N S General Rule: Wage deduction is strictly prohibited. Exceptions: A. With Employee's Consent in Writing 1. SSS payments Q.. PHILHEALTHPayments to PAG-IB|GFund 3. Contributions 4. Value of meals and otherfacilities 5. Payments to third Persons with employee'sconsent . 6. Deductlonof'absences B. Without EmploYee'sGonsent 1. Worker's insurance acquired by the employer 2. Uniondues, where the rightto checkoff has been recognized bY the employer 3.' Cases where the emPloYer is authorized bY law or regulations issued by the Secretary of Labor 4. Debts of the emPloYee to the employerthat have become due and demandable C. When
Related Civil Code Provisions Att. 1705.The labore/s wages shall be paid in legal gurrgrlcy:
47

considersthe practiceof makingdeductionsor requiringdepositsnecessary or desira[le. Requisites of Deduction for Loss or Damage(SOFE) 1. The employee is clearly ghown to be responslble for the loss or damage; 2. The eniployeeis given ample opportunity to show cause why deductionshould not be made; 3. The amount of the deductionis fair and reasonable and shall not exceled the actual loss or damage;and 4. The deduction from the employee'swage does nof gxceed 2oo/o of the employee,s wages in a week (Sec. 11, Rule Vill, Book lll, Rules tmptementing the Labor Code) Note: Arf. f14 provides for the rule on depositsfor loss or damage to tools, materials or equipment supplied by the employer. The same does not apply to or pefiit debosits to defray any deficiency, which the taxi driver may incur in the remittanceof his ,,boundarv'. flr, ! Taxiv. NLRC,GR No. 111474, Augist 22, 1994) CHAPTER V. WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION Composition of Natinnal Wages and Productiviti Commission {NWPC) 1. Secretaryof Labor, 2. Director-Generalol NEDA; 3. 2 members frorh the employeis sector: 4. 2 members from the workeis sector; and 5. Secretariat (Executive Director and two(2) DeputyDirectors). ART. 122: CREATION oF THE REGIONAL TRIPARTITEWAGES AND PRODUCTIVIW BOARD Who May Set the Minimum Wage 1. Regional Tripartite Wgges anO prsductivitv Bbard (RTWPB), subjectto the guidelinei prescribed by the NWpC; and 2. Congress. Composition of RTWPB 1. RegionalDirectorof DOLE. 2. RegionalDirectorof NEDA: 3. RegionalDirectorof DTI: 4. 2 members from the employe/s sector; 5. 2 members from the workeis sec.tor:and 6. Secretariat. ART. 123:WAGE ORDER Wage Order - an order issued by the Regional Board whenever the conditions in the region so warrant after investigating and studyingall pertinentfacts and based on the standards and criteria prescribed by the LC. The Regional Board proceeds to determine whetherto issue,thesame or not. r A wage order establishes_.the minimum wage ratesto be paid by effiployersin the region, which shall in no case be lower than the applicable statutory minimum wage rate,s(NWPC Rules of Procedure on Minimum Wage Fixing). ;;1 ,;1.i
Effectivity It shall take effect after 15 DAYS from its compiete publicatiori in at least one newspaperof general circulationin the region (NWPC Guidelines No. OO1-95). Note:* Public hearings and publication are MANDATORY. Wage order issued by the Regional Wage Board without the required public hearing or consultation, and without publication in newspapers of general circulation shall be struck down for violationof Att. 123 of the Civil Code {Cagaym Sugar Milling Co. y. Sec. ol Labor, GR No_ 129399. January 15, 1998). Frequency A wage order issued by the Board may NOT be disturbed for a period of 12 months from its effectlvity and no. petition for wage increase shall be entertained during said period, Exceptions: 1. When Congress itself issues a increasing wages.
law,
AS
of
rces. #rXhi #H#A
ccLLs{F* sri tarv
It
the the or file with
a surety
to the
|itl
employees corresponding
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Ssn $eU! 6ollege of Lffi 2011CENTRALIZED BAROPERATIONS

increase. in the event such order is affirmed (Sec. 5 Rule V, Sec. 7, Rules lmplementing
R.A.672n.
words,workersalreadybeingpaid more thanthe existing wage (up to a minimum certain amount statedin the WageOrder) arealsogivena wageincrease. Wage Distortion - a situationwhere an wage rates resultsin increase in prescribed the eliminationor severe. contractionof quantitative differences in wage or intentional salaryrates betweenand among employee groupsin an establishment as to effectively enlbodied in such obliterate the distinctions wage structurebased on skills, length of of differentiation. service or otherlogical bases Elements of WageDistortion(HSED) with 1. An existingflierarchy of positions rates; corresponding salary in the changeor increase 2. A Significant salaryrate of a lower pay classwithotjta in the salaryrate corresponding increase of a higher one; between 3. Thelliminationof the distinction and the two groupsor classes; of 4. TheDistortion existsin the sameregion the country (Alliance Trade Unions v. NLRC, GR No. 14A689,February 17, 2004). to CorrectWage Employer Ligally Obtiged Distortion to shallnegotiate Theemployer andthe union the lf thereis no union, correct the distortions. to employer and the workersshall endeavor correct suchdistortions. Correctionof WageDistortion A. Organized Establishment (Establishment with union) to shallnegotiate 1. Employer and union correct the distortion. should 2. Any disputearisingtherefrom be resolved through grievance
Grounds for Appeal on Wage Order 1. Non-conformitywith prescribedguidelines and/or procedure; 2. Questionsof law; and 3. Grave abuse of discretion (Rule V, Reyised Rules of Procedure on Min. Waoe Fixing). Doctrine of Double Indemnity Double Indemnity - the payment to a concerned employee of the prescribed increase or adjustrircnfs'in the wage rate which was not paid by an employer in an amount equivalentto twice the unpaidbenefits owingto such employee. Unpaid Benefits - the prescribedwage rates which the employer failed to pay upon the effectivity of a wage order, exclusive of other wage-relatedbeneflts. Note: Unpaid benefits serve as the principal basis for computingthe double indemnity(Sec. ? Dept. Order No. 10). ART. 124: STANDARDS/ CRITERIA FOR MINIMUM W A G EF I X I N G Factors for Determining Regional Minimum Wage Rates (DeW-CNN-I P-FE') 1. Emand for livingwages; 2. \age adjustment vis-i-vis the consumer price index; 3. Cost of living and changes or increases therein: 4. Need6 of workersand their families; 5. $eed to induce industriesto invest in the countryside; 6. [mprovementsin standardsof living; 7. lrevailing wage levels; 8. Eair return of the capital invested and tg.ppJ of employers; i, : ! ,.._. ; . ,c?ppg'Jy 9. fffectb on employment generation and familyincome;and 10.fquitable distribution of incomeand wealth along the imperatives of economic and social development. Two methods of minimum wage fixing 1. Floor-lrVagemethod- involves the fixing of a determinateamount to be added to the prevailing statutory minimum wage rates. 2. Salary-cai: or Salary Ceiling- mbtnod where the wage adjustment is to be applied to employees receiving a certain denominated salary ceiling. In " other
sffips
-."
49

Formula for Resotving Wage Distortion (Metropolitan Bank and Trust Co. Employees Union ALU-TUCP v. NLRC, GR No. 102636. Sept. 10, 1993 and Wage Order No. tV-02 lssued on 21 May 1991) Existing Min.
=
Purpose: in order for the Board/Commission to perform its powers and functions speedily Wthout regard to unnecessary interventions that may tremendouslyaffect the wage-fixing functions (Poquiz,2OO5) CHAPTER VI. ADMINISTRATION AND ENFORCEMENT ART. 128: VISITORIAL ENFORCEMENT POWER 5. AND
o/oxprescribed wage Increase
-D.istortion Adjustment
Sample lllustration Existingminimumwage is P 300 per day Employee's dailywage is p 350 Mandatddwage increaseis P 25 per day
Note: Before the DOLE may exercise its powers under Afticle 128, two important questionsmust be resolved: 1. Does the emplcyer-employeerelationship exist? 2. Are there violations of the Labor Code or of any labor law? DOLE'sprerogative to determinethe existence of Er-Ee relationshipis not coextensivewith power. Such the visitorialand -'enforcement deterffiination is merely preliminary, incidental and collateralto the DOLE's primary function of enforcinglabor standards provisions.The determinationof the existence of employeremptoyeerelationshipis still primarilylodged with the NLRC. This is the meaning of the clause "in cases where the relationship of employer-employee still exists' in Aft. 128(b). The existence of an employer-employee relationship is a statutoryprerequisite to and a limitation on the power of the Secretary of Labor, one which the legislative branch is entitled to impose. (People's Broadcasting v. Secretaryof the DOLE, G.R. No. 179652,May 8,2009) The DOLE has QuasiJudicial Power. lt bears emphasisthat the DOLE, under Article 106 of the LaborCode, as amended,exercisesquasi-
Note: Wage distortion is non-strikeable. Staginga strike for this reason is a Molationof the mandate of R_A. 6727 providing for voluntary negotiatioirs and arbitration in solving wage distortion problems. (ilaw at Buklod ng Manggagawa v. NLRC GR No. 91980,June 27, 1991) Previous Pay Gaps Need NOT be Restored While that is the aim, it need not necessarilv be restored to the last peso. An appreciabte differentidl, a substantial or significant pay gap should suffice as correction of the distortioh (National Federation of Labor v. .NLRC, OA No. 1d3586,Juty 21, 1994). ART. 125: FREEDOMTO BARGATN The question of minimum wage is beyord the sphere of bargainingof the parties. lt is not negotiable. In view of R.A. 6727 now incorporated into Arf. 125, what the law prohibits is bargaining for wages below the floor set by law or wage order. The worker is thereforefree to bargainfor higherwages. ART. 126: PROHIBITION AGAINST INJUNCTION Proceedings of the Commission or the Regional Boards are beyond the reach of the inju.nction powers of judicial or quasi_judicial bodies.
theiefrom.to
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whichmaybe or matter anyfact, condition or which violations to determine necessary of the Code may aid in the enforcement and ofbny laborlaw,wageorder,or rules andregulations. Enforcement Power (as amendedby R.A. ngq - power of the Secretaryof Labor to compel employer to comply with labor standards upon finding of violations of the of the exercise in the course discovered power. visitorial o Only claims where employer-employee stillexistcan'becovered relations o Includes the power"tof"' 1. lssue ComplianceOrders based on and of laboremployment the findings enforcement officers or industrial madein the course safetyengineers and must observe7 of inspection, of due process cardinalrequirements in administrative Proceeding; 2. /ssue Writs of Execution for the of ordersexceptin cases enforcement where the employer contests the and of the saidjabor officers findings raises issues suPPorted bY proofswhich were not documentary in the course of inspection: considered of 3. Order Work Sfoppage/Suspension ' Operations with when non-compliance rules and the law or implementing poses grave & imminent regulations and safetyof the danger to the health and in theworkplace; workers 4. Conductheaings within 24 tours to ' whether: determine ?. An order for stoppage of worldsuspensionof operations shallbe liftedor not and shallpaythe employees B. Employer their salariesin case concerned to his is attributable the violation fault.
1"\ '';:!;l' x:t, ;-';. 1'' .' 11"i. i..-' , : .r , ::
Procedute: Complaintor RoutineInsPection
ActualInsPection in his (lnspector liststhe violation checklist)
of Finding lnspector's Violation

Order lssuanceof ComPliance
lssuanceof In case of non-compliance: Writ of Non-Comoliance
In caseparty withRD's disagrees findings
(&10 daysw/ Sec.of Labor) the CA (certiorariwith 60 da within
51

ART. 129: RECOVERYOF WAGES,StMpLE MONEYCLAIMS AND OTHERBENEFITS (APER) 1. The ggregate money claim of each employeeor househelper does not exceed P 5,000; 2. The claim is presented by an employeeor person employedin domesticor household service or househelper, 3. The claim arises from employer_employee relations;and 4. The claimantdoes nof seek geinstatement. Note.' In the absence of any of the requisites, it is the Labor Arbiterwho shall have exclusive jurisdictionover claims arisingfrorn employer_ employee relations, except claims for employees' compensation,SSS, philhealth and maternitybenefits,pursuantto Article 217 of the Labor Code. proceedings before the Regional If_" Office shall be summary and non_liti-gious in nature. Adjudicatory Power The Regional Director or any of his duly authorized hearing officer is umpowerud through summary proceeding and after due notice, to hear and decide cases involvino recovery of wages and other monetarv claiml and benefits,includinglegal interests.
of Labor or his duly althorized representative who may or may not be a Regional
of Labor, within within 5 calendar 10 calendar days days; Decision maY be elevated to the Court of Appeals (CA) through certiorari
Note: Arfs. 12&129 apply only in the context of employmeni relationship.A regular court, not DOLE or NLRC, has jurisdictionover the claim of an independentcontractorto adjust the contractofslee (Urbanes,Feb. 19,2@3). TITLE THREE: WORKTNG COi{DtTtONs FOR SPECIAL GROUPSOF EMPLOYEES CHAPTERI. EMPLOYMENT OF WOMEN Constitutional Women Provisions protecting
/t
Art. ll, Sec. 14",TheState recognizes the role of women in nation-building, and shall ensure the fundamental equality before the lay of womenand men. Art. Xlll, Sec. 3, 1"tpar. The State shall afford full protection to labor, local and overseas. organizedand unorganized,and promote full employment and equality of employment opportunities for all. Att. Xlll, Sec. 14. The State shall protect the
Director or any duly authorized hearing offcer of DOTE
Vrsitorial and enforcement maters involving powerexercised recovery ofwage through routine inspections of
r\eYqil 9>
existenceof Er- relationship not Ee relationship necessarysince it should not include a claim for reinstatement
.'ri,
52
$en Sela @ol[ege of Ltb 2011CENTRALIZED BAROPERATIONS

Coverage whether operatingfor It coversALL employers, profitor not, includingcharitable,religiousand (Sec. 1, RuleXll, Book instituti6ns educational III, IRR of LC). Exclusions 1 Government-owned and controlled and corporations; 2. Employers of househelpersand those in their personalservice only insofar as said workers are concerned. (Sec. 1, Rule Xll, Book lll, Rules lmplementing the Labor Code A R T .1 3 1 :P R O H I B I T I O N S , . ' , : , ,, company physician shall certify to their fitness for night work, specifying the pregnancy period when they can safely work. (Azuena,2010) FOR WOMEN ART. ,t32:FACILITIES The Secretaryof Labor may requireemployers to:(STAN) 1. Provide $eats proper for women and permit them to use'the geats when they are free from work or dfring office hours providedthe qualityof the work will not be compromised; 2. Establish separate Toilet rooms and lavatories for men and women and provide at least a dressingroom for women; 3. Determine appropriateminimum f,ge and other standards for retirement or such as terminationin special occupations and the like; and those of flightattendants 4. Establisha lursery in the establishment. . -if the'women are able to obtain better terms and conditionsthrough negotiations or voluntarygrant than what are provided therein, the same are not prohibited(Sec. 12, RuleXll, Book lll, IRR of LC).
Prohibitions under Art 130 shall NOT Apply(EU-PMS-Fo) 1 ln cases of actual or impending lmergenciescausedby seriousaccident, eadhquake, epidemic, flre,flood,typhoon, or calamity, to prevent or otherdisasters or in caseso'fforce lossof life or property, majeure or imminentdanger to public safety; 2 In casesof Urgentwork to be performed on the machineries,equipment or to avoidserious losswhichthe installation, wouldotherwise suffer; employer to lrevent 3 Where the work is necessary goods; lossof ierishable serious I Where the woman employeeholds a responsibleposition of flanagerial or technical nature, or where the woman has been engaged to provide employee andwelfare service: health the 5 Wherethe natureof the work requires manual $kill and dexterity of .women workers and the same cannot be peformedwith equal efficiency by male workers: i Where the women employees are immediate members of the lamily establishment or operating the and undertaking; -. U{eq. Ettpr,.analogons,oases exempted of Labor in appropriate by the Secretary regulations. Exemptionof a Call Center -ne Secretary of Labor and Employment has 13l to exemptcall centers .;r :lized'Article from of Arficle 13O Subjectto the ::e prohibitions that :onditions a Safe and healthfulwork conditionsand adequatefacilitiesas sleepingor rest quarters shallbe provided, : Pregnantwomen and nursing mothers to workat nighttjrneonly maybe allowed if a competentphysiciah,other than the
LEAVE BENEFITS ART. 133: MATERNITY Maternity Leave UnOer the SSS Law (See dlscussion under SSS Law) o A femalemember, who neednot be legally married,who has paid for at leastthree (3) monthly contributions in the 12-month peiod immediately Preceding the semester of her childbirth or miscarriage shall be paid a daily matemity benefit equivalentto 100% of her average daily salary credit for 60 days for normal delivery or 78 days, in case of caesarian delivery;
53

Paternity Leave (R.A. 8187,July 5, 1996) (See dlscussionunder paternity Leave Aci.) Purpose: To enable the husband to lend support to his wife during the period of recovery and/or in the nursing of the newly bornchild. Conditions for Enti0ement (E-cAB-F) 1. He is an Employee at the time of the detiveryof his child; 2. He is Cohabitingwith his spouse at the time she gives birth or suffers a miscarriage; 3. He has Applied for paternityleavewith his emptoyer;and 4. His wife has given pirth or suffered a miscarriage. 5. Covers only the first Four deliveries or miscarriages. Nbte: The term "wife" refers to the lavvful wife, which means the woman who is legahy maried to the male employeeconcerned. ??ttgred Woma4 Leave / BWL (tJnder RA 9262, Anti Violencc Against U)or.n their Chitdren Act of 2004 or AVAWC lawf "ia r Allows the victim of violencewhcih mav be physical,sexual or psychological, to apply -for the issuanceof a',,protecti-on orderJ r lf the victim is an employee,she is entiileo to a paid teave of up to TEN (t0) DnyS in addition to other paid leaves under the , Labor Code, other laws, and other companypolicies. o The employeehas to submit a certification from the punong Barangayor rcagawaO or prosecutor Two Month's Leave under the Magna Carta of Women (Special Leave or Sugical Leave) See dr'scusslon of Magna Carta of Women RA paft 971O)under SociatLegislation ART. 134: FAMILYPI-ANNING SERVICES Employerswho habituallyemploy more than two hundred (200) workers in any locality shall provide free family-planning services to their employee$ and their spouses ;yrhich shall include, but not limited to, the alplication or use'of contraceptivepills and intra_uterine devices. (Sec. 11, Rule XIl, Book \il, Rutes lmplementing the Labor Code) pRoHIBITED ART. 135: DISCR|M|NAT|ON It shall be unlaMul for any employer to diw-riminate against any woman employee with respest to terms and conditions of employment solelyon accountof her sex. Reasoni Aft. llt, Sec. I of the Constitution mandatesan equal protection of the laws. Arf. Xlll, Sec. 3 assures Filipinoworkers of equat work opporrunity. Acts of Discrimination (PEHD) 1. Discimination in pay - payment of lesser compensationto a female employee as againsta male emplovee: 2. Discimination in Emsiloyment oppoftunity favoring a male employee over'a femile emptoyee with respect to promotion, assignment, transfer, training oplcortunities, study and scholarship granti solelyon accountoftheirsexes: 3. Discimination in fljing - favoring a male applicantwith respectto hiring where the particular job can equally be handled by a
. .
o r.
andpending. Usage of the 104ay leaveis at the option of the womanemployee. lt shallcov"? in" ctayor days when she will haveto attend to medical andlegalconcerns. ;,i.Leaves ncrtawiled of are,ndmcumulative. anonotconvertible to cash who deniesthe application ln employer for BWL or who prejudices assislingthe woman"ri'Grso; employee ri"V-0" held liablefor discrimination and violation of RA 9262or its implementing rutes-anJ regulations Enforcement of the entiflement to the BWL fails within the jurisdiction of tne bOf_E Regfonal Diredor under Atticte12gof the LaborCode.
or the Cler[6r couri tnai an action under M No.9262 hasbeen filed
#ir
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of Leb 5en Dels @ollage 2011CENTRALIZED BAROPERATIONS

No-Spouse Employment Policy L Policybanningonly spousesfrom working in the same company. 2. May not facially violate Article 136 of the but Code it creates a Labor effect and the only way it disproportionate could pass judicial scrutiny is a showing that it is reasonable despite the discriminatory albeit disproportionate effect. Exception: Bona Fide Occupational Qualification Rule - if the employercan provethat the reasonable demands of the businessrequire a distinction based on marital status and there is no better available or acceptable policy whichr.would better accomplishthe businesspurpose (Star Paper Corp. v. Simbol, GR No. 164774, Apil 12,2006). ACTS ART. 137: PROHIBITED (PPFF): t shallbe unlaMulfor an employer: 1. To discharge any woman employed by him for the purposeof preventingsuch woman from enjoyingthe maternityleave,facilities and other benefits provided under the Code; Z To discharge a woman employee on account of . her pregnancy, or while on leave or in confinement due to her pregnancy; -t. .To dischargeor refuse the admissionof a woman upon returningto her work for fear that she may be pregnant;and 4 To discharge any woman or child or any other employee for having liled a complaintor havingtestifiedor being about to testify underthe Code. \ote: The employee's failure to formally .form her employer of her pregnancycannot - considered as grave misconduct directly rnnected to her work as to constitute jusl =use of her separation. (Lakpue Drug, lnc. v. Note: Guest Relations Officers under the of the employer effectivecontrolor supervision for purposesof may form labor organizations collective bargaining. There is an Er-Ee relationship between the nightclub and the guest relationsofflcers. . ANTI-SEXUAL HARASSMENT ACT OF 1995 (See discusslon under Anti-sexual Harassment Lawl
MINORS CHAPTERII. EMPLOYMENIEOF (See discussion under Anti-Child Labor Act, R.4.9231) AGE' ART. 139: MINIMUMEMPLOYABLE General Rule: No child below 15 shall be employed. Conditions of the Employment of a Ghild Below 15 1. When the clild works directly under the -sole responsibility of his/her parents or legal guardian who employs members of hiVher family only under the following conditions: a. Employment does not endanger the child's life,safety,healthand morals; b. Employment does not impair the and child'snormaldeveloPment; guardianprovides the c. The parent/legal child with the Primary and/or secondary education Prescribed bY Dept. of Educ. 2. Where the child's employment .or participation in public entertainment or through cinema,theater,radio, information or televisionis essential,providedthat: not involve a. Employment does .advertisements or commercials promoting beverages, alcoholic
ART. 138: CLASSIFICATION OF CERTAIN $IOMEN WORKERS -ti'rywoman who is permitted to work or zuffered to work, with or without lrnpensation, in any night club, cocktail Eidnge, massage clinic, bar or similar under the effectivecontrol or sstablishment, e.pervisionof the emflo;|erfor a substantial by the Secretary :eriod of time as determined as an"employee I Labor,shallbe.considered .purposes of labor :r such establishment'for andsociallegislation. , , i

Non-H:;rardous Work or Undertaking - One where the employeeis not exposeO to inv rlst< which constitutesan imminent Oangerto nis safety and health. Hazardous Workplaces (ECE_Hp) 1. Nature of the work exposesthe workersto dangerous environmental elements. contaminants or work conditions: 2. Workersare engagedin construction work, logging, fire-fighting, mining, quarrying, blasting,stevedoring, Ooct< woik, Ou"p_s"l fishing, and mechanized farming; _ 3. Workers are engaged in the riinufacture or handling of gxplosives and other pyrotechnic products; 'Workers . 4. use or are exposed to heaw or power-driven machinery or e{tipment; and 5. Workers use or are exposed to power_ driventools. Hours of a Working Child 1. A child beloryv 15 years of age may be allowedto work for not morethan 20 hours a week. The work shall not be more than 4 hoursany givenday. 2. A child 15 yearsof age but below1g vears shall not be allowedfor more than g hours a day, and in no case beyond40 hdurs a week. No child below 15 years of age shail be allonared to work betweenl:O0 in the eveningand 6:00 in the morningof the folloving day and no child 15 years of age but below 1g shall be allowed to work between 10:00 in the eveningand 6:00 in the morningof the foftowingday (Sec. 3 R.A. g23i). CHAPTER I1I. HOUSEHELPERS EMPLOYMENT OF . Cost of which shall be oart of househelpeds compensation, UNLESS there is a stipulationto the contrary
5. Contract for household seMce shall not exceed2 years; . Renewable, however, from year to year. Just and humanetrebtment; Right not to be requiredto fiork for more than 10 hoursa day; a. lf the househelper agrees to work overtime, and there is additional compensation, the same is permissible. b. Householder cannot refuse overtimeif nature of work requires overtime (compulsory overtime). Right to four days vacation each month with pay . '1f the'helper does not ask for the vacation,the number of vacation days cannot be accumulated,he is entifled only to its monetaryequivalent. Funeral expenses must be paid by the employer if the househelper hai no relativeswith sufficientmeans in the place where the head of the familylives, 10. Termination only for a just cause; 11. Indemnityfor unjustterminationof service: and 12. Right to demand from the employer an employmentcertification as to natwe and duration of service and efficiency and conduct of the househelper upon extinguishrnent of the servicerelation.
ART. 144-152: RTGHTS OF HOUSEHELPERS
worK loryassignqent to non-household 2. Keasonabte compensatioh (minimum cash wage) 3. Lodging, food,andmedical attendance: a. The right of househelpers to medical attendance, exclusive' of hospjtalization, is deemedsubjectto 'rule the of necessity,, which means thatit depends uponthe circumstances surrounding each case. (Cuajao v. Lo Tan, GR No.' tJazla, thu? September 29, 196?)
a -liil
4 l-
otd, an opportunity for 111!dT 18 V.ears etementary education:

56
ollcgeotLetD $an EeUe 2Ot 1 CENTRALIZED BAROPERATIONS

ART. 149: INDEMNITY FOR OF SERVICE TERMINAT]ON UNJUST employer's duty to pay and remit SSS, and ECC Premiums. Philhealth Where Gomplaints should be f iled 1. Money claims of homeworkers not exceeding P 5,000 Per homeworker RegionalDirector. P 5,000- NLRC. 2. Beyond Prohibition Against Homework (DETox) '1. fxplosives, fireworksand similararticles; 2. Drugsand Poisons;'and S. Otner articles, the prdcessing of which requires exposure to EXic substances (Sec. 13,RuteXlV,Booklll,lRRof LC). NF H O M E W O R K A R T . 1 5 5 :D I S T R I B U T I OO Employer of Homeworkers Any naiuralor artificialpersonwho, for his own accountor benefit,or on behalf of any person residing outside the Philippines' directly or indirectly,or through any employee' agent' contractor. sub-contracto[ or any other pErson: 1. Delivers or causes to be delivered any goods or articles to be processed,in .or about a home, and thereafter to be returnedor to be disposedof or distributed with his direction;or in accordance 2. Sells any goods or articlesfor the purpose of having such goods or articles processed,in or about a home, and then repurchases them himself or through anotherafter such Processing. Distinction between Househelper and
Summary of Rules '1. lf the periodfor householdservice is fixed, neitherthe employernor the househelper may terminate the contract before the expiration of the term, except for a just cause. is unjustlydismissed,he 2. lf the househelper or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity. leaveswithoutjustifiable 3. lf the househelper reason, he or she shall forfeit any unpaid him or her not exceeding salary due flfteen(15)days. ...,,. : IV. CHAPTER HOMEWORKERS EMPLOYMENT OF
ART. 153: REGULATIONOF INDUSTRIAL HOMEWORKERS lndustrial Homework A system of productionunder whicft work for an employer or contractor is carried by a homeworkerat his home. Materialsmay or may not be furnished by .the employer or contractor. It differs form regular factory production principally in that'it is a decentralized lorm of productionwhere there is ordinarilyvery little srpervisionor regulationof methods or work (Azucena2O10) l"lome Any room, house,apartmentor other premises regularly,in whole or in part, as dwelling r.rsed dace, except those situated within the pemises or compound of an employer, contradqr, suLcontractor, and the work oerformed therein is under the active of personalsupeMsion by or for the latter. (DO No. 5 in Book lll, lmplementing Rules of the Labor Code)
.
a.q.
who Rule shall applyto any homeworker performs,in or about his home, any processing in whole of goodsor materials, or in part, which have been furnished, by an employer and directly or indirectly, be returned to the latter. thereafterto
:.: ri .. .,1
.,
. , .)
. ,:
., ..
entQrderNo. 5, replacing Rule Note: Departm XIV of the RuleslmplementingBook lll of the labor Code, authorizesthe formation and of labor organization of industrial registration ftomeworkers.lt also makes expliclt the
2 3 TITLEONE: MEDICALDENTALAND OCCUPATIONAL SAFETY CHAPTERI. MEDICAL AND DENTAL SERVlCES ART, 156 FIRST-AID TREATMENT First Aid Treatment Adequate, immediateand necessarvmedical and dental attention or remedy given in case 9f injury or illnesssuffered by a worker during employment, irrespectiveof whether ot. noi such injuryor illnessis work-connected, before a more eltensive medical and/or dental treatmentcan be secured. First-Aider Any person trained and duly certified as qualified to administer first-aid bv the Philippine National Red Crossor by any other organization accredited by the former. ART. ,i57 EMERGENCY MEDICAL AND DENTALSERVICES A. 51-200 Emptoyees 1. Hazardous workplace - full time registered nurse. 2. Non hazardous workplace Graduatefirst-aider. B. 201300 Emptoyees 1. Full-timeregistered nurse; 2. Parttime physician; 3. Part-timedentist;and 4. Emergency clinic C. 301 and above 1. Full-time physician; 2. Full-time dentist: 3. Full-timeregistered nurse: " : !. Dentaldinic;and :, . 5. Infirmary or emergency hospital with one bed capacity for every 100 employees. ART. 158 WHEN EMERGENCYHOSPITAL OR DENTALCLINICNOT REQUTRED Requisites 1. There is a hospital or dental clinic within 25 kilometers from the workplace or is accessible within25_minute travel: The employer makes for the reservation therein of the necessarybeds and dental faciltles for the use of his employees; and The employer must provide the transport emergency cases (Rule l, Book lV,. lmplementing Rules).
CHAPTER II. OCCUPATIONAL HEALTH AND SAFEW The employer is required to observe safety standardsand providesafety devices. On the part of the employee, proper tse of these safeguards and devices is requlred (Sec.O Rule ll, Book lV, lmplementing Rules) TlTl-ETWO: EMPLOYEES COMPENSATION AND STATEINSURANCE FUND CHAPTER I. POLICYAND DEFINITIONS Workmen's Compensation A generaland comprehensive term appliedto those laws providingfor compensation for lass resultinE from.the injury,disablementor death of a workman through industrial accident, casualtyor disease. Compensation Money relief offered according to the scale established under the statute as differentiated from compensatorydamages recoverable in an bctionat law for breachof contractortort.
Thereis presumption of compensability Proofof causation is needed if the disease is
58
of il^tu Ssn frebs @ollegc 2011CENTRALIZED BAROPERATIONS

lnsurance Fund. The Employer's Obligation is merely to payhis counter contribution to theSSS. GomPensabilitY of for Conditions Occupational Disease and Resul$ng Disability or Death 1. Emplbyee's work must involve the risk describedtherein; 2. The disease was contracted as a result of the employee'sexposureto the described risks, 3. The disease was contracted within the periodof exposureand under such factors to contractit; and necessary 4. There was no notoriousnegligenceon the partof the emPoYee. e Note: Under Sec 1(b) Rule tll implementing PD 626, as amended, for the death to be compensable,claimants must prove that (a) his sicknesswas the result of an occupational disease listed under Annex A of the Rules of EmployeesCompensation,or (b) the risk of coniractingthe disease was increagedby his working , conditions (Banios v. Enploy??': CompdnsationCommission' GR No. 148089' March 24, 2006)"lncreased RisK'Jobs johsi 1. Peace-keePing 2. Job of guardingProPertY; 3. Job involving carrying of money and valuables, 4. Job eiposing employee to direct contract with lawless elements; i'e. bartender,bus or taxi driver, conductor (Batangas Transportation Co. v. Vda De Rivera, L' 7658, MaY 8, 1956); 5. Job exposingthe employeeto illness;and 6. Job involving prolonged sitting down ano (8 arios v. Employee's putting off urination'Compensation Commission, GR No' 148089.March 24, 2OO6) Test of ComPensabilitY For increased risk theorY to apply in
Note: The governinglaw is determinedby the date on which the claimant contracted his illness. Where an ailment supervenedbefore the new Labor Code took effect,the governing Act, lI law is the old Worhmen's Cornpensation it occurs after Jan. 1, 1975, the new lav/ on Employee'sCompensationapplies (Azucena, 2010). OF TERMS ART. 167 DEFINITION Injury Any narmful change in the human organism from any accident arising out of and in the courseof employment. Conditions for Compensability of lnjuries 1 The employee must have been injured at the place where the work requires him to oe: 2. the employeemust have been peiforming his officialfunctions; 3. lf the injury is sustained elsewhere, the employee must have been executing an order for the employer (Sec 1[a], Rule lll, on Rules Employees Amended Cornpensafion);and 4. The injury was not due to the employee's willful intention to injure or kill intoxication, negligence or himselfor another,notorious as otherwise provided under this Title (4ft.172, Labor Code). Note: Injuries incurred by a health worker while doing overtimework shall be presumed work-connbcted (Magna Cafta for Public Health Workers). Note: Under the .twenty{our-hour fluty ' doctrine,'menihits,of thdtnati6na!policemby '.' the nature of their functionsare technicallyon dtfty 24 hours a day except when they are on lacation leave. Death arising from police service, althorigh nqt in official line of dnty is e (Azucena, 2010). compensabf Sickness Any illness accgpted as an occupational disease listed by the Commission or any caused.byerlployment subjectto proof illne'ss that the risk: of cohtrading the same is increased by working conditions.
int must
and r that I claim not Garut
LABORLAW
LAEOR STANDARDS
be9omesapplicable(panotesv ECC, GR No. L-64802, Sepfember25, lgBS| Death Loss of life resulting from injuryor sickness Disability Loss or impairmentof a physicalor mental functionresulting from injuryor sickness. Direct Premises Rule General Rule: The accident should have occurred at the place of work to be compensable. Exceptions: 1-...lng ress-Egress/proximity Rule *ne..n the injuy is sustained when the emptoyeeis proceeding to or from his work in the premises of the employer, the inlury'is compensable. 2. Going to or Corning from Work When the injury is sustatined when the employee is proceeding to or from his work in the premises of the employer, the injury is compensable; a. The act of the employee of going to, or coming from, the.workplace, muit have oeen a continuingact, that is he had not been diverted therefrom by any other activity; and he had departed fiom his usual route to, or from, his workplace; , b. An employee on a special errand that must have been official and in connection with his work: Extra Premises Rule (The Shuttte Bus Rule) The company which provides tne means-"lf transportationin going to or coming from the ptace of work is liable to the injury sustained by the employeeswhile on boaid iaid means of transportation. Special Errand Rule Injury sustained outside the companv premises is compensableif his Oeinq oix-_ ii coveredby an officeorder or q {ocator"slip ;r; ' pass for officiAlbusiness. _ ".: ,Dual Purpose Doctrine Allcws.the compensation where a special trio woutd have to be made for the employee had not combined the'se;ti; "rpl6y"rliin!;o; ''' the emptoyerwithhis going or *ri"giiip; Special Engagiment Rule -lovgrs field trips, outings, intramurals and pcntcs when initiatedand sanctionedby the employer, Positional and Local Risks Doctrine lf an employee by reason of his duties is exposedto a special or peculiardanger from the elements,that is, one greater tnan tnat to which other persons in the community are exposedand an unexpectedinjury occurs,the in1ury is compensable. CHAPTER II. COVERAGE & LIABILIry ART. 168 COMPULSORY COVERAGE Emptoyees'Compensation Ldiv (ECL) applies to all employers,public or private, and to all emptoyees, public or private induding casual, emergency, temporary, or substitute employees. An _employee who is not over 60 years of age and paying contributionsto qualify for tf,e retirement or life insurance benefit administered by the system shall be subjectto compulsory coverage. ARL 170 COVERAGE EFFECTIVITY DATE OF
The employeris coveredcompulsorily from the first day of operation and the employee from the first day ol employment. ART.172LIMITATIONS OF LIABILITY No Compensation if the Injury, Death or Disability is the Result of the Employee,s
(rwNo)
another: Notoriousnegligence; or 4. Qtherwiseprovidedby the LaborCode.
1. lntoxication; 2. Wilfulintention to injureor kill himselfor
work-
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$sn ffeba @ollege ot Lsb 2011CENTRALIZED BAR OPERATIONS

lnjury or Death in the Course ot Assault Rules 1. When the injured was the unlawful aggressor, NOT compensable (Mabuhay Shipping Seruices, lnc. et al GR. No. 94167,January21, 1991);and 2. When the injured was the victim of the assault and it occurred in the course of performance of official functions, compensable(Lentejas v. ECC, GR No. 89168,May 14, 1991). Notorious Negligence Deliberateact of the employeeto disregardhis own personal safety ART. 173 EXTENTOF LtABtLlrY 1 ;,. ,: Excessive RecoverY Where the system(GS|Sor SSS, as the case may be) recovers from such third party damages in excess of those paid or allowed underthe law, such excess shall be delivered to the disabled employee or other persons entitled thereto, after deducting the cost of proceedings and expensesofthe System. Double Recovery The injuredemployeecannot claim payment 'twice for the same injury from both the third party and the GSIS or SSS,aasthe case may be (Alba v. Bulaong, GR Nos, L-10308and L' 10385, April8& 30, 1957). .:HAPTER V. MEDICALBENEFITS '-.C. Benefits Summarized l. Services a. Medical Services, appliances and suPPlies(Nt 155 and Rule Vlll, ECC Rules) b. RehabilitationseMces (Art. 190 and * RutetX, Ecc Rules) a. Temporary total disability (Ad. 191 and RuleX, ECC Rules) b. Permanent total disability (Art. 192 and RuleXl, ECC Rules) c. Permanent partial disabiltty(Art. 193 and RuleXll, ECC Rules) d. Death (Art. 194 and Rule Xlll, ECC Ru/es) FunerafBenefit (Att. 194[d]and RuleXlV, ECC Rules) ( I-IAPTER VI. DISABILITYBENEFITS i isability Categories ; 1. Temporary Total lf the result of the injury or sickness, the
Rules on Simultaneous Recovery 1. Simultaneousrecor/eryunder the Labor Code and the Civil Code cannot be made. The action is selective and the employee may chooseto file the claim under either. But once the election is made, the claimantcannotopt for other remedy. 2. Simultaneous recovery under the Labor Code and the SSS can be made (DOJ Opinion No. I, Jan.12, 1990) since PD 1921 has lifted the ban i.rrrsimultaneous recovery. State lnsurance Fund All coveredemplolees are requiredto remit to a common fund a monthly contribution equivalent to 1% of tlre monthly salary credit of every covered emplpyee. The employee pays no contribution to the fund. Any to the contraryis prohibited. agreement ART. 174 LIABILITYOF THIRDPARTIES Third Party One upon whom no liabilitycould entail under the law; One who is not an employer of the injured employee or a stranger to the and who may be held employmentrelationship iable at commonlaw for his negligencewhich
req$ts,i!-eqi$!ry.,to.tne e$pJoyeq, , ,";,"; r,,.:,.,

l-egal Subrogation When the disabilityor death is caused by the qrcumstancescreating a legal liabilityagainst a third party, the disabled employee or the ,dependents in case of his death shall be paid by the System (GSIS or'SSS, as the case may be). In case the benefit is paid, the System drall be subrogated to the rights of the employeeof the depenCents, ddsabled in case C his death, in accordancewith the general aw.
61
Period of Entiflement The income benefit shall be paid beginning on the first day of such disability. lf caused by an injury or sickness, it shall not be paid longer than 120 consecutivedays except where such injury or sickness still requires medical attendance beyond 120 days but not to exceed 240 days from the onset of disability, in which case, benefit for temporary total disability shall be paid. However, the System may declare the total and permanent status at any time after 12O days of continuoustemporary total disability(Azucena, 2010). Relapse After.,anemployee has tully recoveredas duly certified, the period covered by any relapse, which results in disabilityand is determined to be coi-rrpensable, shall be considered separate from the perioo covered by the original disability (/CC ResolutionNo. 1029,Aug. 10, 1978) 2. Permanent Total lf as a result of the injury or sickness,the employeeis unableto performany gainful occupation . for a continuous period exceeding 120 days. The following disabilities shall be consideredoermanent total: a. Temporary total disability for more than 120 days, except as may otherwise be provided; b. Complete loss of sight of both eyes; c. Loss of two limbs at or above the ankle or wrist; d. Permanent complete paralysisof two limbs; e. Brain injury resulting in incurable imbecilityor insanity;and f. Cases determined by GSIS or SSS, as the case may be, and approved by the Commission. . ' Period of Entitlement ,: r. The full monthly income benefit shall be paid for all compensable months of disability. Suspension of lncome Benefits Monthlyincome benefitcan be suspended underANY of the followingconditions: a. Failure of the employee to present himselffor examination at least once a year upon flotice by the System; b. Failure to submit a quarterly medical report certified by the attending physician; and shall c. Complete of full recovery from his permanentrecovery;or d. Upon being gainfully employed (Sec. 2, Rule Xl Amended Rules on Employees'Compensation)., 3. Permanent Partial lf as a result of the injury or sickness,the employeesuffers a permanentpartialloss of the use of any part of his body (Abaya v. ECC, GR No. 64255,August 1989). Effect of Gainful EmploYmPnt For the purpose of entitlementto income benefitsfor permanentpartial disability,a covered employee shall continue to receive the benefits provided thereunder even if he is gainfully employed and receiving his wages or salary (Sec. 1[b], Rule Xll, Amended Rules on Employees' Compensation). Note: Benefitsdue to an employeedue to work-related sickness shall be provided until he becomes gainfully employed, or until his recovery, or death (Manioso v. GS/S, GR No. 148323,April29, 20O5). Disting uished f rom Permanent Total The test of whether an employee suffers 'rermanent total diability" is a from showingof the capacityof the employeeto work his performing continue the disability he incurred notwithstanding (Vicente v. ECC,6R No. 8ffi24' January
'
2s,1e91).
Earning Gapacity May Still Be "lmpaired" Even if Earning is HIGHERAfter the Injury Employee who receives higher wages after injurythan what he earned before may still have suffered an impairment of earning
*eM s##A
for the plaintiff

looked up the decedent in of
part, as a means
62
of LetD Sm SeBa@ottege 2011CENTRALIZED BAROPERATIONS

of supporting and maintaining herself in accordancewith her station in life. A person may be dependent althoughable to maintain herself without any assistance from the decedent (Castillo v. Cadwallader GR No. 41261, September26, 1934). Dependents 1. Legitimate, legitimated, and legally adopted or acknowledged natural child employed not gainfully who is unmarried, and not over 21 years of age or over 21 years of age providedthat he is incapable due to a physicalor mental of self-support defect whichis congenital or acquired during minority; -spous living with tle 2. Legitimate employee;and 3. Parents of said employee wholly dependentupon him for regularsupport. Benefits 1. For life to the primary beneficiaries, guaranteedfor five (5) years; 2. For not more than 60 months to the in case there are secondary beneficiaries and no primarybeneficiaries; 3. ln no case shall the total benefit be less. than P15, 000. Beneficiaries Beneficiariesshall be determinedat the time of the employee's death (Sec. 1[a], Rule XV, o!-, Employees' Amended Riles Compensation). 1. PrimaryBeneficiaries a. Dependent spouse until he or she remarries: and (legitimate, b. Dependent children , legitimated, natural born or legally adopted). 2. SecondaryBeneficiaries a. lllegitimate children and legitimate descendants;and r grandparents b. Parents, and grandchildren. . (Sec. 2, Rule XV, Amended Rules on Employees'ComPensation). Persons Entitled to Funeral Benefits spouse; 1. Surviving 2. Legitimate child who spent for funeral services,or 3. Any other Person who can show proof of having borne the incontrovertible funeral expenses (Rule Xl, Amended Compensation). Ruleson Employees' COMMON TO CHAPTERVIII. PROVISIONS BENEFITS INCOME PERIOD ART. 201 PRESCRIPTIVE period Despite the three-year prescriptive, a Att. 201' expressly provided in beyond-this flled be may claim compensation 'before the lapse of the tenth year from but accrual of the cause of action, applying Aft.1144 of the Civil Code (Manila Railroad Co. v. Perez, GR No. L-21071, June 29, 1s:5). The three years have to be countedfrom the time the employee lgst his earning capacity, not from the timethe illness was discovered (ECC v. Sanico GR No. 134A8, December 17,1999) " CHAPTER IX. RECORDS, REPORTS AND PENALPROVISIONS ART. 206 NOTICE OF SICKNESS' INJURY OR DEATH General Rule: Notice of sickness, injury or death shall be given to the employer by the employeeor by his dependentsor anybodyon his behalfwithin 5 days from the occurrenceof the contingency. red if: '
benefi Ciaries'stiilt havd piiority'itaim Primary oversecondary beneficiaries. to deathbenefits beneficiaries, no Whenever thereare primary death benefit shall b paid to secondary beneficiaries. beneflciaries If thereareno primary at thetime the deathbenefit shallbe paidto his of death, beneficiaries. secondary employee hasno beneficiaries lf the deceased the deathbeneftt shall at thetime of hisdeath, Compensation Fund to the Employees' acciue
i:.-.
t.
.,
.--\'..
,'.
.63
LABOR LAW LABOR RELATIONS
TITLEONE: POLICYAND DEFINITIONS Labor Relations - the interactionsbetween the employer and employees and their representatives and the mechanismbv which the standardsand other terms and cohditions of employmentare negotiated,adjusted and enforced. (The Labor Code with Comments and Cases20O7,Azucena, ,tol.tt, p.10) Labor Relations Laws - define the status. rights, and duties and the institutional mechanisms that govern the individual and collective interactions of employers, employees or their representatives. (Everyone's Labor Code,Azucena,2ffi7, p.4\ Note: Absent an employer-employee relation, there is no labor relationto speak of. lf there is no Er-Ee relationship between the parties, there is no basisfor organizing for purposesof collectivebargaining. "Labar Relations" rnay be distinguished from "labor standards" in that the latter is that part of labor law which prescribesthe minimum terms and conditionsof employment which the employeris requiredto grant to its employees. (The Labor Code of the philippines Annotated 2005, Chan, Vol. lll CHAPTERI. GENERALPROVISIONS ART.211: DECLARATION oF PoLIcY Collective bargaining process is possible only when there is a labor organization, i.e. 1. Labor union; or 2. Employee assocjafion.
ri',,,
b. Collective bargaining and negotiations; c. Peaceful and concerted activities including the right to strike in accordance with law; and d. Participate in policy and decisionmakingprocessesaffeSingtheir rights and benetits as may be provided by law. Parties to Labor Relations Cases 1. Employee'sorganization; 2. Management; 3. The public - always to be considered in dispute between labor and capital, and it has been held that the rights of the generalpublicare paramount; and 4. The Stde. Note: Employer and employees are ACTIVE parties while the public and the state ,are PASSIVEparties.(Poquiz,2006,p.3) Principle of Non-Oppression - mandates capital and labor not to ac't oppressively againsteach other or impair the interest and convenienceof the public. The protectionto laborblausein the Constitution is not designed
third
Labor relations policy under the Labor Code is embodied in Secffon 3, Articte Xilt of the 1987 Constitutionwhich guarantees to all workerstheir right,amongothers,to: a. Self-organization;
the dispute
disputants to
EIGCUTIVECO}I*IITTEE: FTEKIEL JoSHUA VILLENAovenll chairperson,MINISTER .mbtses ou chairpersonfor academks, DJoANlvlE IoMARE JUNASA chakpersonfor hotel operations,MARIEMICAELA stA, ANA vice-chairperson for operationr MIKHAILMAVER|cK TUMACDER vkechairperrcnfor secretariatJACKIE Lou LAIVIUG vke-chairperson for finance,DIANAJEANTUAzoil vke.chairperson for edp, JASSEN MLPH LEE vice.chairperson for logistks 5UBJECT COMMITTEE HARoLD clnlsrAN TALLEDO subiectchak,AYLAHERAZADE sALENDAB assistant subjectchair,plNKyvELoso edp, NEoVALERIo labor standards, MARK LESTER TAMoNDoNG yLADE raborrelations, DoNNA FRANCES sochi regishiion IIEMBERS: l.ht"l KarloDialogo,Vanessa Guinto,KayeColeenLambino,KarlonPambid,JoseCarlos Tones,Ramayana Saidamen, Jose T*.". tlba, AngeloDavid,lGmille Deanne Lagasca, Raynan Larosa
Ssn #eDaollegeof Astn 2011CENTRALIZED BAROPERATIONS

Arbitration- the submission to an of a dispute person impartial for determination on the basis of evidence and arguments of the parties. The arbiteisdecision or awardis enforceable upon the disputants.This maybe voluntary or compulsory. For 4ft. 211 (9.), see Ad. 255 for more discussions. CHAPTER II. DEFINITIONS OEFINITIONS ART.212: Employer 1. One who employs of others; the services one for whom employees work and who pays their wages or salaries (Feati Universityv. Bautista,GR No, L-21278
+*r-i,.December 27, 1966\ 2. Any person acting in the interest of an employer, direetly or indirectly.The term does not include a labor organizationor any of its officers and agents, EXCEPT when acting as an employer. The mere fact that respondentis a labor union does not mean it cannot be considered an employer for persons who work for it. Much less should it be exemoted from labor laws. (Eautista v. Inciong, GR No. L52824, March 16, 1988)
DOLE: the term includes a local/chapter directlycharteredby a legitimatefederationor nationalunionwhich has been duly reportedto the Departmentin accordancewith Section2, Rule Vt, Book V, IRR of LC (See notes under Atts. 234 and 242, LC). Company Union - any labor organization whose formation, function or administration has been assisted by any act defined as ULP underthe Labor Code. Bargaining Representatiye - means a legitimate labor organizationwhether or not employedby the emploYer. Labor Dispute - includes any controversyor matterconcerning: OR 1. Terms or conditionsof employment; 2. Association or representationof persons in negotiating,fixing, maintaining,changing or arranging the terms and conditiortsoi . employment. REGARDLESS of whether the disputants stand in the proximate relation of employer and employee. Test: Depends on whether it involves or concernsterms, conditionsof employment,or representation (SMC Employees Union' PTGWA v. Bersamira, GR /Vo. 87700' June 13, 1990). (Er. Even the question of employer-employee Ee) relationshipcan be considered a "labor dispute". Types of Labor DisPutes 1. Labor StandardsDisputes(ComBeWo)
(CED) Emptoyee- includes: 1. Any person in the employof an employer, 2. Any individual whose work has geased as a result of or in connection with any current labor dispute or because of any unfair labor prdcticeif he has not obtained any other substantially equivalent and regularemployment' 3. One who has been g[ismissed from work but the legality of the dismissal is being contested in a forum of appropriate jurisdic{ion Q.A. No. 4A03, March 15, 2@3). The term shall not be limited to the employeesof a particularemployerunless the code explicitly states.
' ) 1 : - '
Types of Employees under the Latnr Code 1. Managerial 2. Supervisory 3. Rank-and-file Labor Organization - any union or ssociation of employees which exists in whole or in part for the purpose of collective oargainingwith employers concerningterms of'employment. and c-onditions Legitimate Labor Organization - any labor organization which is duly registered with
of the agent of
65
LABORLAW LABORRELATIONS
bargaining unit which is the majority union); c. Bargaining disputes (e.9. refusal to bargain (ULP); bargainingdeadlock; economicstrikeor lockout); d. gontract administrationor personnel policy disputes (e.9. noncompliance with CBA provisions (ULp if gross non-compliance with economic provisions); disregard of grievance machinery; violation of no strike/no lockoutagreement); and e. Employment tenure disputes (e.g. non-regularization of employees; illegal termination; non-issuance of employmentcontract). Parties toaPispute 1. PrimaryParties a. Employer b. Employees c. Union 2. SecondaryParties a. Voluntary arbitrator b. Agenciesof DOLE (BLR, VAC) c. NLRC d. SecretaryofLabor e. Office of the President Managerial Employee - one who is vested with powers or prerogatives to lay down and execute managementpolicies and/or to hire, transfer, suspend,.lay off, recall, discharge, assignor disciplineemployees. Supervisory Employees - those who, in the interest of the employer, effec.tively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires judgment. independent All employees not falling within any of the above definitions are RANK-AND.FILE EMPLOYEES Voluntary Arbitrator (ANCA) 1. Any peqg! Accredited. by the Board as i such; o; ": 2. Any person Named or designated in the CBA by the parties, to act as their Voluntary Arbitrato[ or 3. One QhosenWth or withoutthe assistance of the NationalConciliation and Mediation Board pursuant to a selection procedure agreed upon in the CBA; or 4. fnV ofRciatthat may be Authorized by the lecretary of Labor to act as Voluntary Arbitrator upon the wriften request and agreement of the 'parties to a labor disoute. TITLE TWO. NATIONAL LABOR RELATIONS COMMISSION CHAPTER I. COMPOSITION CREATION AND
ART. 213: NATIONAL LABOR RELATIONS COMMfSSION (as Arnendd by R.A. 9347, July 27,2006) NLRC - an administrativebody with quasijudicialfunctionsand the principalgovernment agency that hears and odecides labormanagementdisputds;attached to the DOLE for programand policycoordination only. Composition c 1 Chairman;and . 23 Members. EIGHT(8) memberseach, shall be chosen ONLY from among the nominees of the workers and employers organizations, respectively. The Chairman and the SEVEN (7) remaining members shall -,cofir from the public sector, with the latter to be chosen PREFERABLYfrom among the INCUMBENT LABORARBITERS. Upon assumptioninto office,the members nominatedby the workers and employers organization shall divest themselves of any affiliation with, or interest in the federation or association to which they belong.
'
Note: The compositioh of the NLRC is trisectoral. Tipartism is representation of the public or govemment, three sectors employers and'the workers - in policy-makingbodies of the government. Tripartism is observed in numerous government agencies
or instrumentalities
2.F basis, to
66
5sn $e!a @ottega dLsb 2011CENTRALIZED BAROPERATIONS

other divisionwhose docketallowsthe additional workload and suchtransfer will nol .expase litigants to unnecessary additional expense. Division (Eight Divisions Each W,th g Members) 1. Adjudicatory; 2. All otherpowers, functions andduties: and 3. Exclusive jurisdiction appellate overcases within their respective territorial jurisdiction. Adjudication of Cases(TripleC) 1. TheNLRCadjudicates cases bydivision. A goncurrence ol 2 votesis needed for a judgment. valid (Whenever the required membership in a division is not complete and the concurrenceof the commissioners to arriveat a judgment or resolution cannot be obtained, the Chairman shalldesignate such number of additional commissioners from the other divisions as mav be necessary. ) 2. lt shall be mandatory for the divisionto meetfor purposes of gonsultation. The conclusion of a division on any case submittedto It for decisionsnoutOOe reached in consultation before the caseis assigned to a member forthewriting of the opinion. 3. A Qertification to thisetfect signed bythe presidingcommissioner of the division shall be issued (copy aftachedto the recordof the case and serveduponthe parties). Qualificationsof the Chairman and the Gommissionerc (Art. 21e 1. Mustbe a member of thephilippine Bar, 2. Musthavebeenengaged in the practi-e of for at leas!'15years; ^; l.3-_w.,Ijng.ifhitip.pines 3. Must':hiiVeeiperience or exposurein handling labor management reiations for at least5 years; and 4. Preferably a resident of the region where he is to holdoffice. Qualifications of Executive . Labor Arbiters/LaborArbiters (Art. 21q 1. Mustbe members of the phitipfine Ba6 2. Musthavebeenengaged in ti"ri practice of law. in the Philippines for at leasi10 years; and
3. Must have experience or exposure in handling labor managementrelations for at least 5 years. Term of Office of the Chairman. Commissioners, and Labor Arbiters
(Art.21q
They shall hold officeduringgood behavior until they reach the AGE OF 65 unless removed for causesas providedby law or become incapacitated to discharge the function of hisoffice. A. PROVIDED HOWEVER, thatthe President of the Republic of the Philippines mayextend the services of the commissioners and labor arbiters up to the maximum age of 70 years the recommendation of the commission ";;l,1lpofr en banc. Jurisdiction Exclusiveand Original 1. Certifledcases - cases certifledto it for compulsory by the Secretary arbitration of *Labor, under Arf. 263 or the President underArt.264: 2. lnjunction casesunder Afts.218 and 264; ano 3. Contempt cases ExclusiveAppellate 1. Casesdecidedby Labor Arbitersunder Att. 217[b]of the LaborCodeand Sec. 1O R.A. 8042(MigrantWorkers Act);and 2. Casesdecided by the Regional OfficeS of DOLE in the exercise of its adjudicatory function under Ad. 129of the LaborCode over monetary claims of workers amounting to not more thanP 5,000.
Judicial Review Findings of facts "q[ accordedthe
Ahl $Rs*}$a
Barangay
Labor cases
Barangay
67
are merely suppletory in character vis-a-vis governedby labor disputeswhich are primarily labor laws (Montoya v. Escayo, GR Nos. 82211,March 21, 1989). ART. 214: HEADQUARTERS, BRANCHES AND PROVINCIAL EXTENSION UNITS The Commissionand its first, second, third, fourth, fifth and sixth divisionsshall have their main offices in METROPOLITAN MANILA, and the seventhand eighth divisionsin the cities of CEBU and CAGAYAN DE ORO, respectively. ART. 216: SALARIES, BENEFITS AND OTHEREMOLUMENTS .. The Chairman and members of the Commission'shalf..:have the same rank receive an annual salary equivalent to, and be entitledto the same allowances, retirement anci benefits as, those of the Presiding Justice and Associate Justices of the Courtof Appeals,respectively. o Labor Arbitersshall have the same rank, receivean annualsalary equivalent to and be entitled to the same allowances, retirement and other benefits and privileges as those of the judges of the regionaltrial courts. CHAPTERII. POWERS AND DUTIES ART.217: JURISDICTION OF LABOR ARBITERSAND THE COMMISSION Exclusive and Original Jurisdiction of L-aborArbiters EXCEPT as otherwise provided under this Code, the Labor Arbiters shall have original and exclusivejurisdictionto hear and decide, WITHIN 30 CALENDAR DAYS after the submission of the case by the parties for decision without extension, even in the absence of stenographicnotes, the following cases involving all workers, whether agri cultural or non-ag icultural: (UTR-DV-EeO-
{ lvr t+tntk !i vihtr-no'l Fvfl,'t, hr,l^ iYl ril,tl,(A( d$rffl .o
and maternity benefits, all other claims arising from ft@ relations, including those of personsin domesticor household service, involving an amount exceeding of whether P5,000 regardless accompanied with a claim for reinstatement:
7. Monetaryclaims of gverseas contract under arising fromEr-Eerelations workers MigrantWorkersActot 1995; 8. Wage glistortion disputesin unorganized settledby establishments not.voluntarily pursuant to RA 6727; the parties agreements of gompromise 9. Enforcement by any of when there is non-compliance to Art. 227 of the the partiespursuant and as amended; LaborCode, by law. as maybe provided 10.Qthercases Note: Although the provision speaks of JURISDICTION ANDORIGINAL EXCLUSIVE may the casesenumerated of LaborArbiters, arbitrator to a voluntary instead be submitted of the partiesunderArt.262. by agreement The law prefersvoluntaryover compulsory arbitration. Ihe cases that a LaborArbitercan hear and related.Where no Erdecideare employment and the parties existsbetween Ee relationdhip by whichmaybe resolved no issueis involved to the Labor Code, other labor reference statutes, or any collective bargaining Trial Courtthat it is the Regional agreement, Agicultural Dev't. has jurisdiction(Lapanday January31, Corp. v. CA, GR No. 112139, .2000\. The Labor Arbiter has jurisdiction over controversies involving employers and is a "reasonable employees only if. claim causal (EVt A\&i
cDo)
1. ULPcases; ' 2 fgrmiqtigndisputes;.. 'a 3. lf''' abibmpanied with ctaim ior Reinstatement, those that workers file involvingwages, rates of pay, hours of work and otherterms and conditions of employment, 4. Claimsfor actual,moral,exemplary and otherformsof Qamages arising'from Erl Ee relations, 5. Casesarisingfrom any Violationof Art 24, including questions involving the legality of strikes andlockouts; 6. Except claims for Employment philhealth Compensation, SocialSecurity,
CA,X
.|, -l
The q [:abor, claims statutr Jose
1eeg).
Cases mach The foll disposed the same to volunta.ry arbitr
be
referring
and
68
dAetr Ssn 0e!s @ollege 2011CENTRALIZED BAR OPERATIONS

1. Disputes on the interpretation or implementation of CBA;and 2. Disputes on the interpretation or enforcement of company personnel policies. No Jurisdiction over the Following: governments" (JUSMAG1. Foreign Philippines v. NLRC, GR No. 108813, December 15, 1994)',except when the function of the foreign entity partakes of the nature of a proprietary activity, it impliedly divested itself of its sovereign immunityfrom suits. v. 2. International agencies (Lasco UNRFNRE GR No. 109095-109107, February 23, 1995); 3. Intra-corporatedisputes which fall under P.D. 902-A and now fall under the jurisdictionof the regular courts pursuant to the new Securities Regulation Code (Nacpil v. lBC, GR 144767, March 21, 2AOAi 4. Executing money claims againsl government (DAR v. NIRC, GR No. 104269,November 11, 1993\; 5. Cases involving GOCCs with original charters which are governed by civil (Att- lX-4, service laru,rules-orregulations Sec. 2, No. 1, 1987 Consf.), 6. Local water district (Tanjay Wabr Astid v. Gabaton, GR Nos. 63742 and U300, April 17, 1989) except where NLRC jurisdiction is invoked (Zamboanga City Water District v. Buat, GR No. 104389, May 27, 1994); 7. The aggregate money claim does not exceed 5,000 pesos and without claim for reinstatement {Rajah Humabon Hotel, lnc. v. Trajano, GR No. 100455 September17, and Design lnc. vs CA, 260 SCRA 673,
[1ee6]). of 12.Termination
in membershiP
organizedunder RA No. 6938 Cooperative otherwise known as the CooperativeCode of the PhiliPpines.
2OOS NLRC Rules of Procdure on Venue of Filing Cases 1. All cases which Labor Arbiters have authority to decide may be filed in the Regional ArbitrationBranch (RAB) having jurisdiction over the fVorkplace of the oner. nVPetiti complaina Note: WORKPLACE is understoodto be is wherethe employee the placeor locality .''';regularly assigned when the cause of action arose. lt shall include the place where the employeeis supposedto report back after a temporarydetail' assignment, or travel. ln case qf field employees, as well as *' ambulant or itinerant workers, their workplaceis: a. Where they are regularlyassigned; to regularly b. Where they are supposed receivetheir salariesand wages; c. Where theY receive their work from, and instructions d. Report the resultsof their assignment to their emPloyers. 2. Where 2 or more RABs have jurisdiction over the workplace, the first to acquire jurisdictionshall excludeothers. 3. lmproper venue when not objected to before filing of position papers shall be deemedwaived. 4. Venue may be changed by written when the agreement.of
1ee3);
for cash prize under 8. Claim of employee the lnnovation Program of the company, although arisingfrom employer-employee relationship, is one requiring application of general civil law on contracts which is withinthejurisdic'tion of the regular courts (San $iguel Corp..v-1 NLRC,,pR Ng. L80774, May31,1988); 9. Cause of actionis based on quasi-delict or tort which has no reasonable connection with in Art '217any of the claims'enumerated ot the Code(Ocheda v. CA, GR No. 85517, October16, 1992\, 10. Complaintarising from violationof a (Singapoie trainingagreement Nrlinesv. Pano,GR No.L47739,June22, 1983); 11. Whenthe LaborArbiter is an inconvenient Forumunderthe Doctineof ForumNon Conveniens (Communication Materials
Miter
so
the different 124193, Service of ln the valid waiver
69
judgment renderedby the laborarbiterare null and void. Compulsory Arbitration The processof settlementof labordisputesby a governmentagencywhich has the authority to investigateand make award binding'on all the parties. Labor arbiter has the authorityto conductcompulsory (PAL v. NLRC, arbitration GR No. 55159, December 22, 1989\. Note: The NLRC may conduct compulsory arbitration ONLY in national interest cases referredto it by the DOLE Secretary. ART. 218: POWERSOF THE COMMISSION Powers of the NLRC (RiE6l) 1. lule-making pover (promulgation of rules and regulations:a. governing disposition of cases before any of its divisions/regional offices; b. pertainingto its internal functions; c. as may be necessaryto carry out the purposes of this Code ) 2. Power to issue Compulsory processes (administeroaths, summon parties, issue subpoenas); 3. Power to lnvestigate matters and hear disputeswithin its ju risdiction (adjudicatory power original and appellate jurisdiction); 4. Contemptpower; ' 5. Qcular inspection (Art. 219);and 6. Power to issuelnjunctionsand restraining orders. Injunction or TRO Orders which may require,forbid, or stop thq doing of an act. The power of the NLRC to enjoin or restrainthe commission of any or all prohibited or unlawful acts under Aftide 218 of the Labor Code can only be exercised in a labordispute. Note: A restraining order is not an injunction at all but a writ to compel partiesto maintainthe mattersin controversy_instatus quo until the question'of whether or not a tempoiary or preliminaryinjunctionought to be issued may be determined. (BF Homes v. Reyes, March 1 6 ,1 9 7 1 \ Who May lssue 1. President (Art. 263[9]); 2 Secretary of Labor (Aft. 263[9]);and 3. NLRC (Art.218); Note: There is no law which empowersLabor Arbitersto issue a TRO or Injunc.tion. Hence, tvrf^g [nlr,rnoh']m F ih^4rd rX ,tmLft as trnil ar 0f { hth'u r ruauYrQ) it tuvryld.. . 70 Labor Arbiters cannot issue a TRO or an Injunction. Procedure for the lssuance of Restraining Order/ | njunction: (DVH-RFB) 1. There must first be a laborglispute. 2. Filingof a yerified petition. 3. Hearingafter due and personalnotice has been served, in such manner as the Commission shall direct,to: a. All known persons against whom the reliefis sought;and. b. Also to the chief exeditive or other public officials of the province or city within which the unlawful acts have committed been threatened or charged with the duty to proted the complainantsproperty. 4. leception at the hearing of . the testimoniesof witnesses with opportunity for cross-examination, in support of the allegationsof the complaint made under oath as well as testimony in opposition thereto. 5. Finding of !ac{ of the Commissionto the effect that : a. Prohibitedor unlaMul acts have been threatened and will be committed, or have been committed and will be continued unless restrained, but no injunction or temporary restraining order shall be issued.on account of any threat, prohibitedor unlaurfulact, persons, the except against makingthe association or organization threat or committingthe prohibitedor unlavvfulact or actually authorizing or ratifying the same after actual knowledgethereof; b. Substantiat and ineparable injury to the complainantspropertywill follow;
that the
of lteto Ssu Fele @ollege OPERATIONS BAR 2011CENTRALIZED

matter in controversy.and which is particular the appropriate to circumstances of the case. lf the providedby law, remedyis specifically it is presumedto be adequate(PAL v. NLRC. GR No. 120567, March 20, 1998r, e. that public officers charged with the property duty to protectcomplainant's are unable or unwilling to furnish adequateprotection. 6. Postingof a !ond. Injunction from NLRC is NOT the Proper Remedy against Employee Dismissal The power of the NLRC to issue an injunctive writ originates from "any labor dispufe" upon application by a party thereof, which applicationif not granted may cause grave or irreparable damage to any party or render any decisionin favor of such party. ineffectual that there must It is an essentialrequirement flrst be a labor dispute betweenthe contending parties beforethe labor arbiter.In the present case, there is no labor dispute between the as there has petitionerand privaterespondent yet been no complaintfor illegaldismissalfiled with the labor arbiter. (PAL vs. NLRC, G.R. No. 120567,March 20, 1998). Requisites Before TRO May Be lssued Ex Parte (STU) shall allegethat, unlessa 1. The complainant TRO is issuedwithoutnotice,a substantial and irreparable injury to complainants properg will be unavoidable; 2: There is lestimony underoath, sufficient,if sustained, to justify the Commission in issuing a temporary injunction upon of Merit);and hearingafter notice(Affidavit 3. The complainant shall first file an gndertaking with adequate security/bond in an amount to be fixed by the Commission sufficient to recompense those enjoined for any loss, expenses or d3nage by .tne improy"idpnt or _'enor{eotr:s'issuance' ' "V9ed bf such' brdei' or injunction,includingall reasonablecosts, together with a reasonable attorney's fee, and expense of defense against the granting of any injunctiverelief sought in the same proceeding and subsequently denied by the Commission. Note: The TRO shall be effective for NO LONGER THAN 20 DAYS ripon the posting of a bond, and shall become void. after the expiration of the 20 day period. It may be lifted or it may be upgraded to a permanent injunction. The TRO takes effect upon its issuance, if a bond is posted and not upon receipt of th-e parties. (A.M. No. RTJ-9&1405' Apil 12' 2000\ and sub$antial requirements The procedural must be strictly complied with of Art. 218[e] -injunction may issue in a labor before an dispute. *. ART. 219: OCULARINSPECTION The Chairman, any Commissioner,Labor Arbiteror their duly authorizedrepresentatives may, at anytimeduringworking hours: 1. ".'eorrduct an ocular inspection on any establishment,building, ship, place or premises, including any work, material, implement, nrachinery' appliance or any objecttherein;and 2. Ask any employee,laborer,or any person as the case may be for any informationor * date ,conierning any matter or question to the objectof the investigation' relative ART. ?21: TECHNICAL RULES NOT. BINDING AND PRIOR RESORT TO SETTLEMENT AMTCABLE TechnicalRules NOT Binding Administrativeand quasi-judicialbodies like ihe NLRC are not bound by technical rules of procedure in the adjudicationof cases (Ford 'Phits. Sataried Emsoyees Assoc' v' NLRC' GR No. 75347, December 11, 1987)' Rules of evidence are not strictly observed in the proceedings before the NLRC (Bant9li79, et it. v. Coca-bola Bottlers Phils-,lnc', GR No'
June1O, 153660.
the
parti
explq
(Uua
RES quasi
NLRC 1. Motion the
subject judicata,
on overthe venue. res

and shopping;
7t

2. Motionfor Bill of Particulars: 3. Motionfor New Trial; 4. Petition for Relief from Judgment when filed with the labor arbiter; 5. Petition for Certiorari, Prohibition and Mandamus; 6. Motion to declare respondentin default; and 7. Motion for reconsideration or appeal from any interlocutory order of the laborarbiter. Amicable Settlement The Labor Arbiter shall exert all efforts to arrive at an amicable settlement of a labor dispute within its jurisdictionon or before its first hearing or during the mandatory conferences set for the purpose (The rules for Mandatory Conciliation/Mediati on Conference are 'provided for under Rule ,V,.of the 2005 NLRC Rules). Approval of a Compromise Agreement by a Labor Arbiter The c'ompromise agreementshall be approved by the Labor Arbiter, if: 1. After explaining to the parties,particularly to the complainants, the terms and conditionsand consequences thereof; 2. He is satisfied that they understandthe agreement; 3. That the same was enteredinto freely and voluntarilyby them; 4. And that it is not contraryto lanv,morals, and public policy (lbid). ART.222:APPEARANCES AND FEES Appearance of Non{awyers Commission before the
Attorney's Fees Claim) 1. Art.111(Simple Monetary to be givena a. The maximum amount lawyer for his legal assistance is 10%of the totalmonetary rendered award adjudged the emPloYees excludingthe award for moral and more To demand exemplary damages. thanthisis unlawful. b. The attomey's fees may be awarded of wages ONLYwhenthe withholding is declared unlaarful. feesis c. Thebasisof the 10%adorney's of thewagesrecovered. theamount d. Shouldthere be any other monetary the awardsgivenin the proceedings, same may not be assessed or fees. attorney's to the 10olo .subjected 2. Art.222 fees for CBA negotiations a. Attorney's shallbe in the amount and conclusion to be taken agreed uponby the parties from the, union funds and not from individual unionmembers. of the payment b. This Articleprohibits feesonlywherethe sameis attorney's effectedthroughforced contributions fromtheirownfunds fromthe workers funds. fromunion as distinguished c. Neith'er the lavyer nor the unionitself to workers the individual may require assume the obligationto PaY the fees fromtheirown pockets. attorney's shallbe to the contrary Anyagreement nullandvoid. Articfe111vs. Article222
Prohibitsthe award of attorney's fees which
exceeds 10o/o
General Rule: ONLY lawyers can appear beforethe NLRC or a LaborArbiter. Exceptions: Non-Lawyers can appear ONLY in the follolving instances: 1. He represents himself as party to the case: 2. He represents a legitimate labor org?nization which is q parfy to the case pi'wided that he shall be made to present a verified certification from said organizationthat he is properly authorized; 3. He represents a member or membersof a legitimate labor organization exi$ing in employeis establishment: 4. He is duly accreditedmember of any legal aid office duly recognizedby the DOJ or IBP; 5. He is the owner or president of a corporation or establishmentwhich is, a party to the,case. (Sec. 8, 20OS NLRC RuJesJ
#ili*Ltr
72
5en Gebs@ollegtof ![.atn OPERATIONS BAR 2011CENTRALIZED

CHAPTERIII. APPEAL TO TI'IE NLRC ART.223: APPEAL Grounds for ApPeal (FLEP) 1. lf the decision, order or award was secured through fraud or coercion, 2. 3. 4 argumentspropoundedand reliefssoughl wiinin tne required period of appeal and with a statement of the date appellant received the appealed decision, order or resolution, In lhree legibly typewritten or printed copies; Proof of payment of the required appeal fee; In case of monetaryaward' an appeal by by the the employermay be perfected .only or surety (cash deposit posting of a bond bond) equivalent ire': amount to tne monetary award exclusive of damages fees; and attorneY's Proof of service upon the other parties; and shopping and Qertificdtei+'of non-forum verification.
graftandcorruPtion; including of Law; on questions 2. lf madepurely of factsare J. lf serious frrors in the findings raised which would cause grave or irreparabledamage or injury to the and appellant; of of abuse facieevidence lf thereis Prima Arbiter. onthe partof the Labor discretion
5 Periods within which to APPeal 1. Declsions of the RegionalDirector - within 5 calendar days from receipt of the order (Att.129, LC - RecoverYof wages and simple money claims of an amount not exceedingP 5,000) 2. Decisions of the Labor Arbiter - within 10 calendar days from the receipt of the decision. Note: Ifie Code stafes calendar, not working days. Hence, in counting the lGday period, Saturday, Sunday, and Legal Holidays are INCLUDED. (Vir-Jen Shipping and Marine Services v. NLRC GR L-58011-12, July 20, 19821. lf the 10s or 5h day, as the case may be, falls on a Saturday,Sundayor holiday,the last day to perfect the appeal shall be the first working day following such Saturday, Sunday or holiday. is availablein No Motion for Reconsideration questioningthe Labor Arbiteis decision{2@5 NLRC Ru/es). Period to Appeal NOi Extendible The perfection of an appeal within the slatutory/reglementaryperiod is not only and MANDATORYbut also JURISDICTIONAL the ,.questioned tailure; to, ;do. so render$.. dbcisiijn final and executory as to deprive the appellatecourt of jurisdictionto alter the final judgment of the RegipnalDirectorsand Labor Arbiters (ACDA v. NLRC, GR No. 51607; Volkschelv. NLRC, GR No. L-39686, June 28, 198O;Aboitiz ShippingEmployees Association v. Trqjano, GR No. 112955. September 1, 1e971. Requisites for the Perfec-tion of an Appeal to the NLRG (VTP-BPC) of appeal 1. Filing of a yerified memoranQum containing,the grounds, issues raised and 6
Nore: Where tiie employerfailed to post a the bsnd to perfect its appeal, the remedy <'ri ,iou"i'is a motion fo dismiss the appeal' "n. Nf: ,-? petitionfor mandamus' Ti, bond is sine qua non to the perfection of ap;:eal from the labor arbite/s monetary et al. v' NLRC' GR No' cieirsion (Catubay, 'April tz, 2000); property-bond 11:.)-8g, ac,,rptible (tJERM-Memorial Medical Center ', '-nC: GR No. 110419' March 3, 1997)' N.; ,notionto reduce bond shall be entertained e,o, pt on meritoriousgroundsand.only upon amount of a bond in a reasonable tlr: -rostinQ The award' monetary the to relation in .mere filin"r of a motion to reduce bond wilnoul ccr'-iplyingwith these requisites will not stop tn+ 'unning ofthe periodto appeal' Fai:,rre to give a apiellee within 10
insofar coircerned
73
LAW LABOR RELATIONS LABOR

There is no need for a motionfor the'issuance orcler of writ of executionon the reinstatement as it is self-executory (Pioneer Texturizing Corp. v. NLRC, GR no. 11651 ' Qctober 16, 1997). Reinstatement Pending Appeal under Art. 223 vs. Order of Reinstatement under Art 279. of I On the other order An of reinstatemert reinstatement by the 's I order 279 Art' Arbiter Labor I under award the immediately executory| Presupposes 's to a lt I thereof pursuant appeal. evenpending b similarto a return-to-I final and executory and not while work orderi.e.to restoreI judgment,
the status quo in the I the
Dev't. Bank v. Association of Lttzon DevT' Bank, GR No. 120319,October6, 1995)' to review NLRC decisions is by 1. The way 'ciit action of certiorai, prohibition special or mandamusunder Rule65 of the Rulesof Court. Notel A petition for certiorari shall NOT STAY (or suspend) the executiol 9f- 1h" assaileddecision of the NLRC UNLESS a 10, Rule TRO ls issued by CA or SC (Sec' &i' XI, NLRC Rutes,20O5)2. Jurisdictionbelongs to SC and CA, but in line with the dodrine on hierxchy of coutts' the petition should be initially presented to fhe CA (Sf. Martin's Funeral Hgme .u. wmc, oh wo. 130866, SePtember 16' 1988). 3. io iotion for reconsideration is allowed for any order, decision or award of a labor for Motion a However, arititur. Reconsideratioruof a Labor Arbitefs award or order which has all the decTSion, elements of an appOalmay be treated as appeal. of the 4. Only one Motion for Reconsideration commlsston the of order decision,award or in casesappealedbefore it is allowed' Procedure on Gases Originally Filed with the Labor Arbiter
workplace for meantime.
case'.u{.9r*1.,,ijtegal 's the I dismissal pendingon i appeal.
Options of the Employer in Complying with an Order of Reinstatement which is Im med iate and Selfxecutory 1. He can ADMIT the dismissedemployee back to work under the same terms and conditionsprevailingprior to his dismissal or separation or to a substantially equivalentpositionif the former positionis alreadyfilled uP;OR 2. He can REINSTATEthe employeemerely in the PAYROLL. with PaYment of the accruedsalaries. Note: The exercise of one of the foregoing options may be compelled under pain of contempt and the empoyer may be made to pay the salary of the employeeinstead. Payroll Reinstatement One where an employee is paid his monthly salary without making him perform actual work. lt applies in termination cases where the labor court declares the dismissalillegal and of the employee,but the orders reinstatement employer does not want to actually or physically reinstate him and instead, at the 'enptoyefs option, merely )reirstates the employeein the payrollpendingappeal. Judicial Review Rules No law allors an appealfrom a decisionof the Secretary of Labor, or the NLRC, or of a voluntary arbitrator. Note: Decisions of Voluntary Arbitrators are appeatabfeto the CA under RULE 43 OF THE RUTES OF COURT in relation to Sec. 9 of BP Blg. 129. Voluntary Arbitrators are to be ' considered as quasi-judicial agencies whose decisions are appealable to the CA (Luzon
Appealto the NLRC Division (lf'appeal denied,MR; aPPeal riom'Nnc to the sec. of Labor abolishedunderP-D. 1391)
Court of APPeals (Certiorari under Rule 65)
Gourt SuPreme Rule45) under for Review (Petition
74
of {.ltn Ssn Fets @oltege BAROPERATIONS 2011CENTRALIZED

5. MedArbiten and 6. Voluntary Arbitrator or Panel of Arbitrator. When Writ of Execution May Be lssued The foregoing persons or entities may, upon their own initiative or on motion of any interested party, issue a writ of execution on a judgment within 5 years from the date it becomes final and executory. Atter the lapse of the said flve year period,the judgment shall become dormantand may only be enforced by an independentactton within the next five (5) years. (Phil. Nationalrailways vs. NLRC, G.R. No. 81231, September 19, 1989) It is settled that once a decision or order becomes flnal and executory, it is remtved from the power or jurisdiction of the court which renderedit to further alter or amend it. (Scheing Employees Labor union vs NLRC, G-R. No. 118586,Sept 25,1998)except: 1. When there are clericalerrorsor mistakes. 2. When the amendment or conection is meant to harmonizeit with justice and the facts. 3. When the same becomes necessary to accomplish the aims of justice. 4. When there are supervening events justifying the amendment of correction. (Yuvs NIRC, G.R. Nos. 11181G11, June 16, 1e95) Manner of Execution May Be Appealed Finality of judgment becomesa fact upon the periodof appealand lapse of the reglementary if no appeal is perfected. ln such a situation, the prevailing party is entitled as a matter of right to a writ of execr.rtion. There is a big difference if, what is sought to be reviewed is not the decision itself but the manner of its execution.While it is true that the decision has become final and executory and so crnno longer be challenged,there is no question either that it must be enforced in The aqgrrdanceittdh jtsterms and conqitions. NLRC has ar,rthoritv'to look into the crrectnessof the execution of the decision and to consider superveningevents that may affect such execution (Abbot v. NLRC, GR No. L-65173, October 27, 19861. Remedies of a third party whose property hasbeen wrongfully levied to enforce a declsion {Gumulative) 1. Motion for Exclusion/ Release of the propefi ,wrongfullylevied on executionl 2. SeMce by the third party claimant on the officer making the levy and upon the judgment creditor of an affidavit of title is fSec. 16, Rule 39, Rules of Court)' This Terceria; as also known civil actionto recoverthe title 3. Independent and possessionof the propertywrongfully levied on execution (Sec. 76, Rule 39, Rules of Court) (See Yapangco Cotton Mills vs. CA, et.al., G R. No' 126322, JanuarY 16, 2002) RTC Injunction against NLRC Generally, not available, r; the generalrulethat no court has HOWEVER, the power to interfere by injunction Wth with court another judgments of coniunenvcoordinate jurisdiction applies ONLY when no third-party complaint is involved (/bid.). Therefore, if the property under levy does not belong to the judgment debtor in the NLRC case' it couid not be validly levied upon by the sheriff- lor..tfq satisfiction of the judgmenttherein.lf the third party claimant does not involve nor grows out bf*a tabor diSpute, a separate action for injundive relief against such levy may be miintained in court. (Co Tuan et. al. v. NLRC and CL|JP, GR No. 117232,Apfl 22, 1998)' TITLE THREE.BUREAUOF LABOR RELATIONS ART.226: BUREAUOF LABOR RELATIONS BY NCMB ABSORPTION Pursuantto E O. 126,the NationalConciliation and Mediation Board (NCMB) has absorbed the conciliation, mediation and voluntary arbitrationfunctions of the BLR. The BLR functions, as it now stancls, are
sucn
of
regular
To ac{ on its of either or both
75
2. INTER-union conflicts: and 3. OTHER RELATED Labor Disputes. Relations legitimate labor organizationsbased on any violationsof their rightsas labororganizations. Coverage of Inter/lntra-Union Disputes {Sec. 7, Rule Xl, D.O. 40431 1. Cancellation of registration of a labor organizationfiled by its members or by any other labor organization, 2. Conduct of electionof union and worker's icationof election associationofficers/nullif officers, of unionand workeis association 3. AudiUaccountsexam.inationof union or fundsf" workeis association of CB,\ 4. De-registration 5. Validityiinvalidityof union affiliation or disaffiliation; acceptance/non6. Validily/invalidity of ',,aoeptancefor union membership; impeachmenU 7. Validity/invalidity of union and worker's expulsion of associationofficers; 8. Validity/invalidity of voluntaryrecognition; 9. Opposition to applicationfor union and CBA registration; 10.ly'iolations of or disagreementsover any provision in a union or worker's associationconstitutionand by-laws;
Other Related Labor Relations Disputes (Sec. 2, RuleXl D.O. /n-Wl Shall include any conflict betweena labor organization and the employer or any individual,entity, or group that is NOT a labor organization or worker'sassociation. This includes. a. Cancellationof registrationof unions and workeis associations: and b. A petition for interpleader. Note: E O. 251 OF 1982 removed from the jurisdictionof the BLR 'all' labor-management disputes. The effect of E O. 251 is to transfer to the NCMB the mediation,conciliation, and arbitration functionsof the BLR. The parties may, by agreement, settle their differences by submitting their case to a voluntary arbitrator rather than taking the case to the BLR. E.O. 292 or the 1987 Administrative Code providesfor the cunent functionsand authority of the BLR: - The BLR Sec.16.Bureau of Labor Relations shall: 1. Set policies,standards, and procedures on the registration and supervision of legitimate labor union activities including denial, cancellation, and revocation of labor union permits, 2. Set policies, standards, and procedures relating to collective bargaining agreements, and the examination of financial recprds of accounts of labor organizations to determine compliance with relevant lals; 3. Provide proper orientationto workers on their schemes and projects for improvement of the standards of living of workers and theirfamilies.
11. Disagreements over chartering or and registration of labor organizations CBAs,

12. Violationsof the rights and conditions of membership; unionor workels association 13. Violationsof the rights of legitimatelabor organizationq except interpretation of CBAs; and 14. Such other disputes or conflicts involving the rlghts to self-organization, union bargaining membership, and collective a. Between and among lbgitimate labor and organizations; b. Between and among members of a union or worke/s association.
pf of
between andamong unionmembers, including grievances arisingfrom any violation of the rightsand conditions of membership, violation gf or disagreement over any provision of the union'sconstitution and by,larrs,or disputes arising from chartering or affiliation Inter-union Disputes - refer to any conflict between and amor\g legitimate fabor organizations involving representation questions for purposes of collective bargaining or to any other conflict or disputebetween
- r"trio ;6t;onnia
,tn
ln such
may file the
76
of L^do $eir #eDs@ollege 2011CENTRALIZED BAROPEMTIONS

be sought within the union itself, in with its constitution and byaccordance underany of the following laws EXCEPT circumstances: of intra-union remedies, 1. Futility procedure; expulsion 2. lmproper as to constitute 3. Undue delayin appeal substantial injustice; is for damages; 4. Theaction of the investigating 5. Lackof jurisdiclion \ body; agency is 6 . Actionof the administrative patently illegal, arbitrary, and oppresslve; of law; a question 7 . lssueis purely agencyhad 8 . Wherethe administrative prejudged the case; and already was agency 9 . Wherethe administrative practically giventhe opportunity to ac1 on the casebut it did not. Effects of Filing or Pendency of Inter / lntra-Union Dispqte and other Labor RefationsDisputes (Sec.3, Rule Xl, Do 4003) of relationships andobligations 1. The rights, the party-litigants against each otherand prior to the other parties-in-interest to institr.tion of the petition shall continue remain during the pendency of the petition and untilthe dateof finality of the decision rendered therein.Thereafter, the rights, relationships and obligations of the partylitigantsagainst each other and other partie+in-interest shallbe governed bythe so ordered. decision 2. The filing or pendency of any inter/intraquestion uniondisputes is nota prejudicial to any petition for certification election and . shallnotbe a ground for the dismissal of a petition for certification election or suspension of proceedings for certification election.
tJ.
4J
- if Bureauof LaborRelations from the the case originated Director Me&Arbiter/Regional Sec. Of Labor - if the case fom the Bureau originated Offrceor to the BLR' Regional originated wherethe comPlaint to the (recordsare transmitted bLR or Sec. within24 hours the receiPt of from of aPPeal) memorandum Flowchart of Appeal from Decisions of Med-Arbiters Med-Arbiter/Regional Director
Appealto BLRor to the Sec. from " of Lbborif originated the Bureau (Within 10 daYsfrom receiptof the decision)
of Labor Appealto the SecretarY
1. Underoath { Consist:oT, memorandum. of appeal 3. Based on either of the grounds; following a. Grave abuse of " discretion b. Gross violation of the rules 4. \ fitr supporting arguments andevidence \Mtthin 10 daysfrom receiptof decbion
#*tii
flff t*J\x&'
77

ART.227: COMPROM ISE AGREEMENTS
organization (LLO) meniOerls) thereof specially concemed 2. For gnounds under Sec. 2: any_party_in_ interest RegionalOffice that bsued its certncateJi registration or certificate of creation of chartered local- if it involves laboruniorswith independentregistration, charteredlocali. worke/s association, its officers or members. urrectlywith the Bureau_ if it involvesa Federatiory' National Unions;/ IndustryUnions, its officers, or members. Verified underoath Contains the following averments: a. Name, address and other persor-ral circumstanoes of the complain;nt(s)or petitioner(s); b. Name, address and other personal circumstances of the responOentls; or person(s) charged; Nature ofthe complaint or petition; : d. Factsand circumstances surrounding the complaint or petition; e. Causesof actionor specificviolations committed; f. A statement that the administrative remediesprovidedfor in the constitr.ition and by-larvshave been exhausted;or suchremedies are not readily availablito the _complainants or petitioners through no fault of hiJtheir own, or complian-e with such adminstativeremediesdoes or petitioners. ^ ,. lot applyto complainants xelrersprayed for; shopping; and !$ifbae of non-forum
1. Forgrounol unoEiG--i!
Compromise Agreement - contractwhereby the parties,by making reciprocalconcessions, avoid litigationor put an end to one already commenceo.
Substantial Requirements 1. Mustbe freely entered into; 2. Must not be contrary to law, rnorals or
publicpolicy; Must be reasonable: and 4. Must be approved by the 4,rthority before whom the case is pending(see discussion on Article 221 - approval of Labor Arbiter of an amicable sdtlement in a case before him\
FormalRequirements 1. Inwriting; and 2. Signed in the presence of the regional director or his duly authorized (Sec. 8, Rule ll of the representative. Ruleson Disposition of Labor Etandards Csases rn,fhe Regional Offices) When May Compromise AgreementsBe Effected It may be effected at any stage of the proceedings andevenwhenthereis already a judgment final executorf (Att.2040,N CC). It cannot be entered into when the final judgment is already in the process of execution (Jesalva,et al. v. Bautista, GR No. L-l192&*L-19330, March24, 1959). CompromiseAgreementsWith v, Without Assistanceof DOLE
Administrative Functionsof the BLR 1. Regulationof registration of the labor untons; of a registry of laborunions; ? r. |:gqinS Matntenance of a file of CBAs; and 4. Maintenance of a file of all setflements or . . , final,gecisions @urt,court ' or appeals, of the supreme NLRCand otheragencies on labordisputes. CasesWherethe BLR Has No Jurisdiction Those .arsrng from tne imptemiiatiii"or nterpretation of Collective Baroainino Agreementswhich shal be J;j;; ; g1je.y"lg" procedure and/or utiunt"rv arbitration.
78
d Lst! $un Geld @ollege BAROPERATIONS 2011 CENTRALIZED

Options When Compromise Agreement ls Violated 1. Enforce compromiseby writ of execution, or 2. Regard it as rescinded and insist upon original demand. Requirements of a Valid Quitctaim (VAC) 1. The quitclaim must be yoluntarilyarrived at by the parties; 2. lt must be with the essistance of the Bureau of Labor Standards, Bureau of of Labor Relations or any representative the DOLE: and 3. The gonsideration must be reasonable (required only when entered without the assistanceof DOLE). Note: Dire necessity is not an acceptable groundfor annullingthe releases, especiallyin the absence of proof that the employeeswere forced to execute them (Veloso v. DOLE, GR No. 87297, August 5, 1951). Waiver of Reinstatement Like waivers of money claims, a waiver of reinstatement must be regarded as a PERSONAL RIGHT which must be exercised personally by the workers themselves (Jag and Haggar Jeans and Spodswear Corp. v. NLRC, GR No. 105710,February23, 199q. AND F]LE OF UNIONS ART.231: REGIST.RY OF COLLECTIVEAGREEMENT The CBA is more than a contract,it is highly impressed with public interest for it is an essential instrument to promote industrial peace (fUP v. Laguesma, GR No. 9fi13, 21, 1994). September An Unregistered CBA does not bar certificationelection (Contract-BarRule will not apply in the absence of registration).(See notes under Arts. 253, 25?A and 256). Procedure for Registration 3. The regional office shall furnish the BLR with a copy of the CBA withinfive (5) days from its submission 4 The BLR or regional office shall assess the employerfor every CBA, a registration fee of not less than P1 ,000.00 or anY amount deemed aPProPriate bY the Secretary of Labor. of Registration' 5. lssuanceof Certificate Note: Registration of the CBA is not a for its validitY requisite &. of the CBA by the BLR is not The certification required to put a stamp of validity.to such contract. Once it is duly entered into and signed by the parties, a CBA b":ot."=", . ol+;rr'"t effective as between the parties [$?ICllss whether or not the same has been certifiedby the BLR (Libefty Ftour MiltsEmployeesv' LF^h! lnc". oi wos. 58768-70' Deember 29, r989). PROHIBITION 232t ART. ELECTION CERTIFICATION ON
Contract-Bar Rule - While a valid and registered CBA is subsisting for a FIXED PfRtOO OF 5 YEARS, the Bureau is not allowed to hold an elec-tioncontesting the majority status of the incumbent union EXbEPT during the sixty (60) day-period immediately prior to its expiration, which periodis cattedtfre FREEDOM PERIOD' Note: In the absence of such timely notice or filing of petition, the contract executed during the automatic renewal period is a bar to certification election. There shall be no amendment, alteration,or
of cooies of the CBA to,the bi,tn"'resioiiat aib'r Helatioid' offices of DOLE within 30 days from by the folloruing: accompanied execution, a. Verified proof of posting in two places in the place of conspicuous worK and b. Verffied proof of ratificationby the majorily of all the workers in the unit. bargaining for registration 2. Actionuponthe application within five (5) calendardays from receipt thereof
six{6)
have dulY
79
LABORLAW LABORRELATIONS 2. It was ratifiedby the unionmembership;

2
4. 5.
6. 7.
9. 9.
It is adequate for it contains substantial terms and conditions of employment; lt encompasses the employees in the appropriate bargai ning unit; lt was not prematurely extended, the CBA was not hastily entered into (doctrine of premature extension does not bar a certification election ): lt is for a definitepeiioO:' No schismor mass disaffiliation affectsthe contractingunion duringthe lifetimeof the agreement; The contracting unionis not defunct; The contracting union is not comoanv_ dominated (see discussionsin Arts.'256259 Petition for Certification Election).
As now amended by R.A. g4g1, Art. Zg4 makes specific referenceto the following organizations (not merely to ant organization) which may registeras labor organization, to wit: 1. Federation 2. National Union 3. Industry Union 4. TradeUnionCenter 5. Independent Union
ART. 233: PRTVILEGED COMMUNICATTON Privileged Communication _ any statement of such privacy that the law exempts the pe9on receivingthe information from the duty to disclose it. Not Availabte As Evidence lnformation and statements made at conciliation proceedingsshall be treated as pnvrtegedcommunication and shall not be used as evidencein the Commission. Conciliators and similarofficials may not testify court or body regarding ,"tt"ri l!, "nV raKen up at conciliation "ny proceedings conductedby them. TITLE FOUR. LABOR ORGANIZATIONS CHAPTERI. REGISTRATION AND CANCELLATION ART.234: REQUIREMENTS oF REGISTRATION Principle.of Agency Applied r. r.nnapal _ emplovees 2. Agent - tocayihabter 3. Agentof agenf-iederation Purpose-of Formation ot f-"Lr Unions: for securingfair and just wages and good workino conditions for the labbrers; jnO fo; ih; protectionof labor againstthe unjusi of capital. "*""tion" Any labor organEationin Se
private sector organized for collective bargaining and for
Modes of Acquirino - Legitimacy for Labor organizationsincl 1. legistration with the BLR (lndependent Union). 2. Ch.artering or issuance of a federation or national unionof a charter cerflficate.
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Sen Eebs@ollege dAetn 2011CENTRALIZED BAROPERATIONS

Classification of Labor Organizations 1. National Union/Federation - any labor organization with at least 10 locals/chapters each of which must be a * duly certified or recognized collective bargainingagent. 2. Industry Union - group of legitimatelabor organizations within an identifiedindustry, organized for collectivebargainingor for dealing Wth employersconcerningterms and conditions of employmentwithin an industry or for participating in the formulation of social and employment policies,standards,and programsin such industryregistered with DOLE. 3. Trade Union Center - group of registered national unjg1g.or federations organized for the mutual aid and protection of its members and for assistingsuch members in collectivebargainingor for participating in the formulation of social and employment policies, standards, and programs duly registered with the Department. 4. Alliance - aggregationof unions existing in one line of industry or in a conglomerate, a group of franchisees,a geographicalarea, or an industrialcenter. 5. Company union- - a labor organization which, in whole or in part, is employercontrolledor employer-dominated. Requirements foi the lssuance of the Certificate of Registration of a National Federation, National Union or lndustry or Trade Union. Center or .an lndependent Union (As Amended By RA. 9481, June 15, applicaHe only to registrationof independent union. rules do The Labor Code and its implementing not require that the number of members appearing on the documents in question shouldcompletelydovetail.For as long as the documents and signaturesare shown to be and genuineand regularand the constitution by-laws democraticallyratified, the union is deemed to have complied with registration requirements (The He.itage Hotel Manila vs. Pinag-isang galing and elakas ng mga manggagawa sa Heritage Manila (PiglasHeritage), G.R. No. 177024, October 30, 2009.) ART. 234-4: CHARTERINGAND CREATION OF A LOCAL CHAPTER (new Provision insertedby R.A.94811 A duly registeredfederationor nationalunion may directly create a local chapter BY ISSUING A -CHARTER CERTIFICATE indicating ,the establishment of the local chapter. The chapter shalt acquire legal personality ONLY for purposes of filing a petitionfor certification electionfrom the date it was issued a charter certificate. Note: The chaptershall be entitledto all other rights and privileges of a legitimate labor organization only upon fhe subrnrssionof the following documents in addition to its charter certificate: 1. Names of the ctraptels officers, their addresses, and the principal office of the chapter; 2. Chapteis constitutionand byJaws; 3. PROVIDED, that where the chapte/s constitution and by-laws are the same as
n0n
1. P 50 registration fee; 2. Names of its officers, their addresses, the principaladdressof the labor organization, the minutesof the organizational meetings and the list of the workers who participated in such meetings; 3. In case the applicant is an independent union, the names of all its members comprising at least 2Oo/o of all the qpi!,,yQ95_eit . employqqg-ip the QarBqigrpg seeks' to operate '(see Art. "255- for definition of bargaining unit); 4. lf the applicant union has been in existence for one or more years, copies of its annualfinancial ,reports; and 5. 4 copies of the constitution and byJaws of the applicantunion,minutesof its adoption or ratification, and the list of the members who participated in it Note: Creatign of a LOCAL CHAPTER does not need subscription of at least 2oo/oof the members. Minimum number of members
81
offices, but shall be processed bv the Bureau. Note: A labor organizationmay be organized under the Corooration Law as a non-stock corporation and issued a certificate of incorporation by the SEC. But such incorporation has only the effect of giving to it juridical personalitybefore regular courts of justice. Such incorporation does not grant the right and privileges of a legitimate labor organization. Ministerial Duty of the BLR Compellable by Mandamus To review the applicationfor registrationand not the issuance of a Certificate of Registration. After a labor organization had filed the necessary Fpers and documents for registration,it becomes mandatoryfor the BLR to check if the requirements under Nticle 234 have been seduiously complied wiffr. lf its application for registration is vitiated by falsification and serious irregularities, especiallythose appearingon the face of the applicationand the supportingdocuments, a labor organization-should be denied recognitionas a legitimatelabor organization (Progressive Development Corporation-pizza Hut v. Laguesma, et. al, GR No. 115077, Apit 18, 1997). Purpose of Registration Registration with the 8LR is the operative act that gives ights to a labor organization. 1. lt is the fact of being registered with the DOLE that makes a labor organization fegitimate in the sense that it is clothed with personality to legal claim repreentational and bargaining rights enumerated in Afticle 242 or to strike or picket under Article 263. 2. The requirement of regislration'is not a curtailment of the ight fo ass6aafion. lt is merely a condition sine qua non for the acquisition of legal persornlity:by labor organizations, associationsor unions and the possession of the rightsand privileges grantedby law to labor organizations. 3. lt is a yalrd exercise of policepower since the activities in which labor organizations, associations, or unions of workers are engaged affec.t public interest,. which should be protected (PAFLU y. Sec. of Labor, GR L-2228, February 27, 1969). Federation - any labor organization with at least 10 localJchafiers or affiliates each of which must be duly certifiedor recognizedas the sole and exclusive collective bargaining agentof the employerthey represent. Requirements Before a Federation Can Be lssued a Certificate of Reg,istration Aside from the application,which must be accompanied wilh the requirements for registration of a labor registration, the by the application shouldalso be accompanied following: of at least 10 localsor 1. PROOFof affiliation chapters, each of which must be a duly recognizedsole and exclfsive collective or bargaining agent in the establishment industry in which it operates,supporting the registration of such applicant federation or national union, ,.: . . ,2. RESOLUTION of affiliationof at least'ten (10) legitimatelabor organization, whether indeoendent unions or chartered locals each of which must be duly certifiedor a recognlzed bargaining agent in the establishment where it seeks to operate; and 3. flAMES, AND ADDRESSES of the companies where the affiliates operate and the list of all the members in each companyinvolved. Unions at Enterprise Level A labor union at enterprise level may be created either by: 1. lndependentregistration 2. Chartering
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ot:[.trtu Sen frebs@otlege BAR OPERATIONS 2011CENTRALIZED

Application for is registration filed with and will be acted upon by DOLE the Regional Office where the applicant's principal's office b located. Charter certifrcate issued by federation or national union is filed with the Regional Office or BLR within 30'days after the issuance of charter the certifcate.
immediatelypreceding the expiration of the CBA. BY MAJORIry' Exception: DISAFFILIATION Even before the onset of the freedom period, may still be carried out, but such disaffiliation disaffiliationmust be effected by a majority of unit' in the bargaining the unionmembers This happenswhen there is a substantialshift in allegianceon ihe part of the majorityof the members of the union. In such a case' however, the CBA continucs to bind the members of the new or disatfiliated and union up to the CBA's expiration independent date. A consent election to determine the the CBA maybe unionwhich shall administer conducted. Limitation should be in accordancewith the Disaffiliation procedures stated in the constitution rulesand and by-lawsof the federation. A sohibition to disaffrliatein the Federation's or by-laws is valid - intended for coinstitution protection. its own Chartered Local - created by a federation or nationalunionthrougfrissuanceof a charter' Revocation of Charter by the Federation notice,of a verified by servingthe local/chapter r&ocation, copy furnished the Bureau on the or such other groundsas groundof disloyalty or by-laws' constitution its in may be specified shall divestthe local chapterof The revocation
Affiliate 1. An independently registered union that entered into an agreement of affiliation with a federationor nationalunion. 2. Also refers to a chartered local which applied for and was granted an independent regigtr:ation but did not disaffiliate from its mother federation or union. national Affiliation of Local Union with a Federation The procedure of affiliationwould depend on registered whether the -unionis independently or not. Requirements of Affiliation (As Amended By D.O. /n43) 1. Report of affiliation of independently registeredlabor union; 2. Attachments: a. Resolutionof the labor union's board the affiliation; of directorsapproving b. Of the general membership meeting the affiliation; approving c. The total nurnber of members comprising the labor union and the names of memberswho approvedthe affitiation; d. The certificate of affiliationissued by the federation in favor of the independentlyregisteredlabor union; and e. Written notice to the employer concernedif the affiliatingunion is the ' incumbentbargainingagent. Note: Supervisor'sunion aqd the rank and file union operldlng within the same es{ablishment may join the same federation or national union. (Arf. 245 amended by R.A. 9481) Disaffiliation When affiliated,a local union may disatfiliate from the federation. When to DisaffiliaG General Rule: ,{ labor union may disaffiliate from the mother union to form an independent union only during the 60{ay freedom period
ln the I allowed
Art.235:AC The Bureau
rs for filing.
83
All requisite documents and papers shall be under oath by the secretaryorthe treasurerof the organization, as the case maybe, and : attested to by its president. Reas91 period: The thirty-day lol T<ry periodin Art 235 ensuresthat any actioniaken by the BLR is made in consonince with the mandateof the Labor Code, which specifically requiresthat the basis for the issuanceof a certificate of registration shouldbe compliance wrth the requirementsfor recognitionunder Art. 234. _ (progressive bevelopment Corporation-pizzaHut vs Laguesma,e.h. ruo. 115077, Apfl 15, 1997.)
,! , i.'
Registration of Independent Labor Union Filed With Bureauof Labor Relations or Regional Office (But processedby Bureau)
Secretary of Labor (lf BLRdirector denies)

ir:ltiiY
Reason for requiring certification under oath: To ensure that the labor organization with which an employer is dealing ii a bona_ rroeorganization. Mandamus, not Certiorari, is proper renledy. The proper remedy against refusafto register a labor organizationihich comolies wth all the requirements is mandamusand not certiorari.Certiorariis not the proper remedv since Ih" approval of appltation i* registration is not a judicialfunction. ART. 236: DENTAL OF REGTSTRATION Decision Decisionof the Regionalffice or the Bureau oenyrng tne application for registration shall DE: 1. In writing; 2. Stating in clear terms the reason for the decision;and 3. Applicant union must be furnisheda copy of said decision Appeal Decisions of the Regional Office shall be appeatabteto the BLR and CA. The BLR,s
Decisionof Secretary appealable to COURT of APPEALS Registration of Federation or National Union.Filed Wth Regionalofficewhere union operates (Processed by Labor RelationsDivision)
Bureauof Labor Relations (lf deniedby Regional
Decisionof BLR appealable to COURTof APPEALS
* ja:es appeatedtrom n"gion"i *_":i:1"_ urrectorare final and not appeatable io the Secretary of Labor.
s&N Fffi*A
*-1".\i*L#{"6#i3f: t-A!4r
Decisions of the BLRdenyingthe registration of labor organization (fedeiation .a union)is appealable "in-;fi-;;i to the Secretary ot f_aOoi thewithin10 calendar daysfromr.u"Lipi tn" decision, on grounds "f of: 1. Grave abuse of discretion: or 2. Gross incompetence. Decisionof Secretary of Laborappealable to Courtof Appeals.
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5an Sebsollegesf {.eio BAROPfrRATIONS 2011CENTRALIZED

of Rules
By signing a contract
of a charter fider;don for the issuance

certificate to be submitted to the Bureau accompaniedby the following: 1. Copies of its constitutionand by]aivs. 2. Statement of the set of offcers and books of acounts, all of which must the bY certified be Secretary/Treasurer and atested to by the President.In such case, the union becomes a lobalchapter of the Federation
of the union with the
not labor organizationand thereforeit woui; and tr to have legalpersonality continue of a possess all'the rightsand privileges ldbororganization legitimate : iatterc*e, the local or chapterwill not lose its legal personality until F9 of the CBA After the CBA , expiration it will lose its legal personality , expires -it . r-rniess registersas an independent
Jnron
continue to be
valid as the labor organization car the CBA continueadministering entlded to dues and not the federation from whbh bt labor organizationdisafiiliated.
sollected as there would no longdr be ; :ny labor union that b allowed to collect , such unionduesfromthe employees. I i : , Note: Follow the principle of agency betweenfederation and local. Principal- emPloYees Agent - locaUchaPter of aoent - federation
The to be wouldcontinue iocalchapterwill not lose its personality of the CBA After the untilthe expiration ')BA expiresthe local union loses 'rts it unless rbe dues may no
Modes of Appeal by: Denial or Cancellation 1. Transmit records within 24 hours from receipt of Memo of Appeal 2. BUREAU decides within 20 days from receipt of records 65 3. COUiTTOF,APPEALS.RUIC
'_ ;"ri,' . . : _ ! , , , ' r . , . .; :. : r\.,;.:1.,::., 1,, , t . : r i. ' i -
CANCELLATION 238. ART. REGISTRATION
OF
SPEC
Bureau 1. Transmitrecordswithin 24 hours from receipt of Memo of appeal within20 days 2. SEC. OF DOLE decides from receiptof records - Rule65 OF APPEALS 3. COURT Note: Appealby memo of appealwithin 10 of notice. daysfrom receipt
ART. CANC
2. ln ,ase
Grounds 1. Graveabuseof discretion of rulesas amended 2. Violation
sn?l
ju:r and Jpriate a;-rF.'
8s

Legitimate Regional individual labor Director who union has jurisdiction Ghartered local over the place association
Federations National or industry unions
Trade union centers
Any party-ininterest, if ground is: 1. Failureto where comply respondent with any of principally the operates (30 requireme days to nts under decide). Arts. 2U, 237 and 238,LC. 2. Violation of any provision under Arf. 239,LC. Bureau Only the Director (30 members of daysto decide) the labor
organization corcerned if grounds are actions involving violationsof 4tt.241, subject to the 30% rule.
ART.239:GROUNDS FORCANCELLATION OF UNION (asamended REGISTRATION by R.4.94811 Grounds: 1. Misrepresentation, false statement or fraud in connection with the adoption or ratification of theconstitr.rtion andby-lavrs 2. Or amendments thereto.the minutesof ratiflcation, and the list of members who tookpartin the ratification: 3. Misrepresentation, false $atements or fraud in connection with fre electionof officers. minutes of the election of officers, andthe listof voters: and 4. Voluntary dissolution bythe members. Note: Failure to submit reportorial requirementsis no longer a ground for cancelldion butshallsubject the erringofficers or members to suspension, expulsion from penalty. (Art. membership, or any appropriate 242-4,newprovision inserted by R.A.9481) ART239-A:VOiUTTNNV CANCELLATION (NewProvision OF REGISTRATION inserted by R.A.94811 The registration of a legitimate labor organization , may be cancelled by the organization itself PROVIDED: 1. At least 2/3 of its general membership vofes,in a meeting duly calledfor that purpose to dissolve the organization; 2. An applicdion to canel registration is submitted bythe board of the organization, attested to by the president thereof. Note: A pronouncement of as to the illegality of Art.239 the strikeis notWthin the meaning of the Code,which provides for thb grounds for cancellation of union registration.
Effectof Cancellatioh of Registration in the Courseof Proceedings Wherea laborunionis a partyin a proceeding and laterit losesits.registration permitin the courseor duringthe pendency of the case, such unionmay continue as a partywithout need of substitutionof parties, subject however to the understanding that whatever decisionmay be renderedtherein will be bindingonly upon thosemembersof the union whohavenot signified their desire to withdraw from the case beforeits trial and decisionon the merits lPriqginte .of Agencyapptied--theemployees are the principals,and the labor organization is merely an agAft of the farmer, consequentty, the cancellationof the union's registrati6n would not deprive the consenting memberemployeesd their ight to cdntinueffie 6ase as theyare considered as fhe pincipals).
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Ssn Sebe@otlege of Lsb 2011CENTRALIZED BAR OPERATIONS

b. The collective bargaining agreement, andlabor lavls. - the rightsof 3. Rights OvermoneyMatters the members: a. Against imposition of excessive fees, b. Rightagainstunauthorized collection of contributionsor unauthorized disbursements; c. To require adequate records of income andexpenses; d. To access financial records; e. To voteon officers' compensation; f. To voteon special assessment; a special assessment S. To be deducted only with the membefs written authorization. 4. lolitical right- the rightto vote and be votedfor, subject to lawfulprovisions on qualifications anddisqualifications. Note: Any violation of the aboverightsand conditions of membership shall be a ground for cancellationof union registrationor expulsion of an officer fromoffice, whichever is appropriate. At least30% of all the members of the union or any memberor members specifically. concerned may report such violation to theBureau. UnionMembership Any employee,whether employedfor a, definiteperiodor not, shall,beginning on his flrst day of service, be consideredan employee for purposes of unionmembership. (Att.277) Note: The relationship of the union and members is governed by their mutual agreement, the termsand conditions of which are set forth in the unionconstitution and by lawsand binding on the members as well as the organization itself.(Poquiz,2@Q quoting Ang Malayang Manggagawang Ang Tibay Enterprises, et al. v. Ang Tibay,et al., GR No. L-8259,December 23, 1957). Who Are Prohibited From Becoming Mqmbers/O.t.ficers of a f.abor Organization (Seehofes iinddr A,ft.243 on personswh6 are not grantedthe ight to self-organization) 1. Non-employees (Art.241[c]); 2. Subversives or those engaged in subversive (Art.241 activities ; and [e]) 3. Personswho have been convictedof a crimeinvolving moral turpitude shallnotbe eligible for elec-tion as unionofficeror for appointment to any position in the union (4tt.241[t]). a unionis free to selectits Note: In general, hasan absolute ownmembers, andno person in a union. right to membership Who areentitled to vote: of the unionhavethe eligibility Onlymembers of unionofficers. to take part in the election through to vote may be determined Eligibility period payroll andthe the useof the applicable duringthe applicable statusof the employees period.This pertainsto the payroll of the the labor dispute,in monthnext pr:eceding and the payroll case of regularemployeeS' in case period at or nearthe peakof operation, (Tancino industries. in seasonal of employees G.R. No. 78131,Jan. vs Pura Ferrer-Calleia, 24,1988). .".,...;.-. Limitations (See nofes on union security arrangementsunder Art. 248) cannot compel 1. The labor organization of their to becomemembers employees if they are already labor organization UNION. oJa RIVAL member 2" The.persons mentionedin Aft. 241[e] of the Labor Code are (SUBVERSIVES) of a a member prohibited from becoming labor organization. RELIGIOUS 3. The members of who5'ereligionforbids ORGANIZATION could in labor organization membbrship intounionmembership. notbe compelled Levy of SpecialAssessmentsor Fees(Art. 24tNI) Extraordinary (RAMM) Requirements: 1. Theremustbe a written lesoltttion; musthavebeen[pproved 2. The resolution and of allthe members; by a majority 3. The approval must be at a general meetingduly calledfor that &embership
be attb&chfi@ffi
87
amounts due to the union for fees. fines or assessments. Nature and Purpose of Gheck-Off Union dues are the lifebloodof the. union. All unions are authorized to collect reasonable membership fees, union dues, assessments and fines and other contributionsfor labor education and research, mutual death and hospitalizationbenefits, welfare fund, strike fund and credit and cooperativeundertakings (Art.277[a) RequiremenG With Regard to Check-Offs (4rt.241[o]) General Rule: NO special assessment, attorney'sfees, registrationfees or any other ,- ,.., extraordinary fees may be checked off from--' any amount due an employee without an individual witten authorization duly signed by the employee The authorization shouldspecifically statethe: 1. Amount;and 2. Purpose and the beneficiary of the deducdion. Exceptions: 1. For mandatory aotivities provided under the Code, and 2. When non-membersof the union avail of the benefits of the CBA: a. Said non-merirbersmay be assessed union dues equivalentto that paid by members; b. Only by a board resolution approved by majority of the members in a general meeting called for the purpo6e. Note: The individualwritten au(horization duly signed by the employee is an additional requirement(to RAM) in order that a special assessment may be validly checked-off. ln case of check-off another requisite is necessaryin additionto the requirementsfor special assessment,enumerated above and this is, indiWual written authorization for check-off duly signed by the employee concerned. (Eduardo J. Marifio, Jr. d al. vs. Gil Y. Gamilla, et al., G,R. No. 149763,July T, 2009.) Ju risdiction over Gheck-Off Disputes Being an intra-union conflic*, t'he Regional Director of DOLE has jurisdictionover check off disputes. (Union Dues) By obtaining the individual written author2ation duly signed by the employee which must specifi amount, purpose and beneficiary.
By written resolution approved by majority of all the members at a meeting duty called for that purpose
Not necessary: 1. for mandatory activities provided under the Code; and when 2. nonmembersof the union avail of the benefrts of CBA No exception; the Said nonwritten memoers resolution is may be rmandaior at assessed all instances. agencyfees equivalent to that paid by members only by a Board Resolution approved by of a majority the membersin a general meeting
DuesSd$it#ffifrFffily
and !
tn dues, 'ho or Req

4
2. He is
J.
He
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sf j[sb Ss$ Gebs@ollege OPERATIONS 2O1ICENTRALIZED BAR

is not written authorization Note: Individual fees. of agency for the collection necessary ART.242-A:REPORTORIAL (NewProvision in*rted REMENTS REQUf by R.A.94811 by to be submitted requirements Reportorial the legitimate labororganization: or amendments and byJaws, 1. C6nstitution andthe list of ratification, thereto, minutes took who Part in the of members and by-laws of the constitution ratification ratiflcation or adoption 30 daysfrom within by{aws or of the constitutionand q thereto; amendments of of the election minqtes 2. List of officers, and list of voterswithin30 days officers, fromelection; 30 daysafter within report financial 3. Annual and the closeof everyfiscalYear; at leastonc a year or 4. List of members bYthe Bureau' required whenever Note: Failure to comply with the aboveshallnot be a ground requirements mentioned but shall of union registraticn for cancelldion su6jectthe erring officersor membersto or from membership' expulsion sus-pension, by Sec' (As inserfed penalty. any appropriate 7, R.A.9481) COVERAGE TITLEFIV.E. AND EMPLOYEES' ART. 243: COVERAGE TOSELF-ORGANIZATION RIGHT Eitent ot the Right to Self'Organization 1. To form, join and assist labor of collective for the purpose organizations of their representatives through baigaining and ownchoosing; for activities in laMulconcerted 2. To engage or for their mutualaid the samepurpose (Art' 246) and protec'tion.
of a unionfor Members the payment of union dues
from be deducted May not be deductedlMay

from the salaries of the lthe salary of employees
union memberswithoutlwithout their written the written consent oflconsent
Note: Agency fee cannot be imposedon already in the service and are employees of anotherunion.lf a closedshop members to them,neither agreement cannotbe applied form of union fee, as a lesser mayan agency security,be imposedto them. Paymentby of agency fbes does not members non-union basically amount to an unjust enrichment of suchduesis to avoid because the purpose union and non-union betweerf discrimination (NABAILU v. San MiguelBrewery members August 31, 1963). GR No.18170, Inc., of another Union NOT Employee-Members FreeRiders Gonsidered When the union bids to be the bargaining assumes the responsibility agent,it voluntarily of representing all employees in the bargaining unit. appropriate CHAPTER iIT. RIGHTS OF LEGITIMATE I.ABORORGANIZATIONS LABOR OF LEGITIMATE ART.242 RIGHTS ORGANIZATIONS Rights of A LegitimateLabor Organization (USERFOE) -' il,;,:Unaertir<e.l'activities for. benefit' of members; 2. $ue and be sued; 3. fxclusiverepresentative of all employees; (fn c6fl-) 4. lepresentunionmembers; 5. fumished by employers of addited statements; financial and 6, $rn properties; fromtaxes. 7. Exempted
89
Persons/Employees Eligibte to Join a Labor Organization for Purposes of Coilective Bargaining 1. All persons employed in gommercial, ggricultural (ClA) and lndustrial enterprises, including employees of Government-owned or controlled corporation without original charters established under the CorporationCode ancl 2. In leligious, gharitable, medical or gducational (RCME) institr.rtions whether operatingfor profitor not. Persons/Employees eligible to join a labor organization for mutual aid and protection: (AlRStW) 1. Ambulant; (Walking or Mobile Workers) 2. lntermittent (lrregular workers) 3. Sural; 4. gelf-employedpeople 5. ltinerant workers ( Workingfor a shorttime in vaious flaces); and 6. Workerswithout any definiteernployers. Persons/Employeeswho are NOTgranted the i ght to self-organizafion; (HEMACENGA) 1. High-level or managerial government employees(Sec. 3; E.a. 150\; 2. Employees of internationalorganizations 'with immunities(/CMC v. Calteja,GR No. 85750, September2A, 1990\, 3. [anagerial employees a. Whose functions are normallv considered as policy+naking or managerial; b. Whose duties are of a highly confldential or highly technical in nature (Aft.212, LC\; 4. Members of the grmed Forces of the Philippines, including police officers, policemen, firemenandjail guards(Sec. 4, E.O. 180); 5. Gonfidential employees (Metrolab /ndusfnes lnc. .v. Confesor. GR No. 108855,February 28, 1996); 6. lmployees of cooperativeswho are at the - ,-., !?tn lrme,its;,membe6 {genguet Etec. Coop. v. Ferrer-Calleja, GR No. 79025. December 29, 1989\; However, they may form a workeds association WEEC1 Employees' Assoc- v. NLRC, GR No. 116066, J anuary 24,'2000). 7. Non-Employees (Rosario Bros. v. Ople, - GR No. L-53590,Juty31,1984) 8. Qovernment Employees, including Government-owned and controlled cqrporations with original charter (Arizala v. cA, 189 SCRA5W) 9. f,liens without valid working permits; or Aliens with valid working pelniits but are nationalsof a countrywhich do not grant Filipinos to exercise the right of selforganization and to join or assist labor organizations. (Article 269, Labor Code; Deparlment Order Na. I [1997], Rule ll, Sec.2.l Eligibility of Foreigners to Form Labor Organization Aliensworkingin the countrywith valid permits issued by DOLE, may exercise the right to self-organization and join or^,assist labor *choosing organizationsof their own for purposes of collective bargaining; provided, that said aliens are nationals of a country .which grants the same or similar rights to Filipinoworkers. (Att. 269) This embodies.the PRINCIPLE OF RECIPROCIry. Religious Objectors The righis of the members of the lglesia ni Knsfo sect not to join a labor union fcr being contraryto their religiousbellefs does not bar membersof that sect from forming their own unionl The recognitionof the tenets of that sect should not infringe on the basic right to grantedby the Constitution to self organization workers regardless of religious affiliation. (Kapatiran v. Calleja, GR No. 82914, June 20, 1988) . In fact, they can vote for "No-Union" in a certificationelection in the exercise of their right to self-organization. (Reyes v. Trajano, GR No. A$3, June 2, 1992) ART. 244: RIGHTS OF EMPLOYEESlN THE PUBLICSERVICE
governed Code can with the
lHn '
90
d!["elr 5un EeM @ollege OPERATIONS BAR 2011CENTRALIZED

they
terms and the can of (through collective conditions Thus,they agreements employment. negotiation unlimited or MOA) with the have rights. govemmenton those bargaining of terms and conditions which are employment not fixed by law. Thus, they have limited only form, join or Canform,join,or labor labor organizationfor assist ofCBA,etc. for purposes organization purposes not cor,trary to law
authority(Sec 6, E'O of government 1ffi\. Terms and Conditions of Employmentin Services Government of GeneralRule: The terms and conditions in governmenl or improvements employment may be the subjectof negotiations services between duly recognized emplcyees and appropriategovernment organizations (Sec. 13,E.O.1ffi). authorities of Exception: Those terms agd conditions thatarefixedby law(/bid')' employment Negotiable Terms and Conditions of Em-ploymentin GOCCS with Otiginal Charter andotherleaves; of vacation 1. Schedule women' of pregnant 2. Workassignment growth anddevelopment; 3. Personnel system - lateral and 4. Communication vertical: andsafety; for protection 5. Provision for handicapped facilities *Frovision for 6. personnel; for services medical for first-aid 7. itrovision women; married and examination; medicaUphysical 8. Annual cultural and athletic social, Recreational, 9. facilities (Rules activities and 180\ E.O. lmplementing The Following are considered NOT Negotiable of 1. Those which require appropriation as: such funds. and .. emoluments in salary a. Increa6e not Presently Other allowance provided for bYlaw; outlays; ringcapital requi b. Facilities Car plan;
d. e.
Forming,Joining, or Assisting Employee's Organization ,. ,, ri."., employees General Rule: ALL government can form, join or assist emPloyees: for the of their own choosing organizations and protectionof their interests. turtherbnce They can also form labor-management and otherformsof work councils committees, participation the to achieve schemes workers' (Sec.1, E.O.180). sameobjectives Exceptions: are whosefunctions employees 1. High-level or as policy-making considered normally areof a highly or whoseduties managerial (Sec. and 3, E.O.180); confidential nature 2. Membersof the Armed Forces of the Philippines, including police officers, (Sec.4, policemen, andjail guards firemen E.O.180) corporations of government Nob: Employees Code and underthe Corporation incorporated registeredwith SEC are governed,by the Codenot by E O. 180.Theyare alloled Labor for: to organize 1. They are not involvedin publicservice; and are notfixedby law. 2. Termsof employment of the Rightto Organize Protection 1. Governmentemplovees shall not be , 'discrimfin*d iagiini by reason''oftheir organizations in employees' membership in the normalactivitiesof or participation (Sec.5, E.O. 1ffi). their organization to shall not be subject Z Their employment that they shall not join or the condition in the their membership shall relinquish (/bid). organizdions employees' authorities shall not interfere 3. Government in the establishnrent,functioning or employees' of government administration through acts designed to organizations the control under placesuchorganizations
Extemal
91
To sum up, government employees covered by EO. No. 180 may organize, even unionize, and negotiateemployment conditions not fixed by faw but they cannot strike. (Azucena,2007) Registration of Employees' Organization Wrcre fo Rqgrsfer Government employees' organizationsshall registerwith the Civil ServiceCommission and DOLE. The applicationshall be filed with the Bureau of Labor Relations(BLR), which shall process the same in accordance wtth the provisions of LC.
!,.::t:-1i..':r.,5itX
Jurisdiction Any dispute which remains unresolvedafter exhausting all available remedies uncler existing laws and proceduresmay be jointly referred by the parties to the Public Sector Labor-ManagementGouncil for appropriate action. Likewise,the PSLMC has jurisdictionto hear charges of ULP filed bY government employees against their employer. lt ig composedof the following: "q. 1. Chairman- Civil SeMce Commissioner; 2. Vice-Chairman- Secretary of Labor;and 3. Members'. a. Secretaryof Finance b. Secretary of Justice . c. Secretary of Budget (Sec. 15, E.O. 1W). OF MANAGERIAL ART. 245: INtsLIGIBILITY EMPLOYEES TO JOIN ANY I.ABOR ORGANIZATION:RIGHT OF SUPERVISORY EMPLOYEES 1. Managerial Employees - those who are vested with powers or prerogativesto lay down and execute managementpolicies and/or to hire, transfer, suspend, lay-ofi recall, discharge, assign or discipline employees.
Applications may also be filed with the Regional Offices of DOLE, which shall immediately transmit the said applications to the Bureau of LaborRelations withinthree(3) daysfromreceipt (Sec.Z E.O.1ffi). thereof lssulmce oi Rqi stration Certifiate Uponapproval of the application, a registration certificate shall be issued to the.organization recognizingit as a legitimateemployees' organization with the right to represent its membersand undertake activities to further and defendits interest. The certificates of registration shall be joinfly approved by the Chairman of the CivilService Commission and Secretary of Labor(Sec. 8, E.O.18O). VoluntaryRecognition A duly registered employees'organization shallbe accorded voluntary recognition: 1. upona shovingthat no otheremployees' organization is registered or is seeking registration,. based on records of the Bureau of Labor Relations; and 2. the said organizationhas the majority supportof the rank-and-file' employees in the organizational unit(Sec.11,E.O.1B0). 'j*: certlficadoii-Etii:uon "tl Wherethere are two or moreduly registered employees' organizations in the appropriate organizational unit,'the BLR, upon petition, shall: 1. Order the conduct of a certification election; and 2. Certify the winner as the exclusive representative of the rank-and-file employees in said organization unit (Sec. 12,E.O.1W).
92
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to act as to be on the sideof the employer andto see to it that its its representatives, The employer interests are well protected. if these is not assured of such protection members. employees areunion union might the labor In thesamemanner, to the union of theirloyalty not be assured conflictof interest. in view of the evident The union can also becomecompanydominated with the presence of union managerial employees in (BulletinPublishingCo. lrrc. membership GR No. 74425,October v. Hon. Sanchez, 7, 1986). Note: Art. 245 does not absolutely employeesifi${inlr': disqualify rirahagerial What of association. exercising their right is merely the rightto join labor it prohibits organizations. - thosewho, in 2. SupervisoryEmployees effectively the interestof the employer, if the actions suchmanagerial recommend exerciseof such authorityis not merely routinary or clericatin nature but requires judgment. the useof independent Supervisory Employees May Form, Assist,Join A LaborOrganization On their own and NOTwith the rank-and(R.A.6715as amended by file employees R.4. e481)) lf their responsibilities do not inherently require the exerciseof discretionand independent judgment, (or merely thenthey may routinary/clerical in nature) join the unioncomposed of the rank-andfile employees. Note: lt is the natureof the employee's or title functions and notthe nomenclature givento hisjob whichdetermines whether. he hasa rankandfileor managerial status (EngineeringEquipme.nt, lnc.- v. NLRC, The rank and file union and the supervisors' uniorl operating. within the same establishment may jcin the same federationor nationalunion (As Amended by R.A.9481).
IS
same company cannot affiliate with the same federationif the followingconcur: a. The rank-and-file employees are directlY under the authoritY of and emPloYees; supervisorY b. The national federation is ac{ively involved in union activities in the company. 3. Confidential Employees - A confidential employeeis one entrustedwith confidence on deiicate matters, or with the custody, handling, or care and protection of the employer'sProPertY. By the very nature of their functions,they confidential til assist and act in a capacity, (2) to persons who formulate, deiermine,' ind effec'tuate management policiesin the field of labor relations' ThE TWO CRITERIAARE CUMULATIVE' and both must be met if an employeeis to a confidentialemployee be considered -confidential relationship must * e.9., ,the eii"i between the emPloYee and his SUPERVISOR, and the supervisor must handle the prescribed responsibilities relating to labor relations. As such, the rationa-le behind the ineligibility of managerial employeesto form, assist or to them' join a labor union equallyapplt-es '(PtDt v. NLRC, GR No. 88957, June 25' 1992) Under the doctrine of necessary imptication, confidential employees are similarfy disqualified' (NATU-Republic Planters Bank v' Torres, GR No' 93468' December 29, 1994). 'lN THE FIELD OF Note: The Phrase LABOR RELATIONS' is imPortant' lt
of i.e. confidentiality labornexus, stresses to labor the' oosition-isrMn&Jhked relati
Separationof Unions Doctrine However,in the caseof Aflas Lithographic Seryices lnc. vs. Laguesma,(G.R. No. 96566,January 6, 1992) a supervisor's union in the union and a rank-and-file
not r having of the
not every
managerial,
93
he may be a supervisoryor eve.n a rank-and-file employee. ART. 245-A: EFFECT OF INCLUSIONAS MEMBERSOF EMPLOYEES OUTSIDETHE BARGAININGUNIT (new provision inserted by R.A.9481) The inclusionas union membersof employees outside the bargainingunit shall NOT be a ground for the cancellationof the registration of the union.Said employeee are automatically deemed removedfrom the list of membership of said union. Reason: After a certiflcate of registration is issuedto a union, its legal personality cannot be subject to a collateral attack lt may be questionedonly via a petitionfor cancellation, providedfor irrArt. 239. underthe grounds, ART. 246: NON-ABRIDGEMENT OF THE RIGHTTO SELF-ORGANIZATION It Shall Be Unlawful For Any Person to: 2. Qoerce; 3. Qiscriminate against; or 4. Unduly lnterfere with employees and workers in their exercise of the right to self-organization. Note: Any act intended to weaken or defeat the right.is regardedby law as an offense, which is technically called "UNFAIRLABORPRACTICE'. TITLESIX. UNFAIRLABOR PRACTICES CHAPTERI. CONCEPT ART.247: UNFAIRLABOR PRACTICES Unfair Labor Practice 1. Any unfair labor practice as expressly definedby the Code. 2- Any act intendedor directedto weaken or defeatthe worker'srightto self-organize or to engage in lawful concerted activities ', 'otherwise deal with each other in an atmosohere of freedom and mutual respect; 5. Disruptindustial peace, and 6. Hinderthe promotionof healthyand stable relations and mutual labor-management respect (unstable labor-managernent relations). Elementsof Unfair Labor Practice relationship between 1. Employer-employee the offenderand the offended;and 2. Act done is expresslydefined in the code as an act of unfairlabor Practice. related to the Note: Prohibited acts "r" "ff right and the workers' self-organizational observance of a CBA, except Att. 248[t], dismissing or prejudicing an ernployee for givingtestimony underthe Code. '1"t element of ULP does not apply to . yellowdog condition . meaning. ULP has a technical r lt is a practiceunfair to labor, althoughthe offender may either be an employer or a labororganization. o Jt refer$ to dcts opposed to workers' right to organize (Anti-unionism acfs). Withottt this, the act, no matter how unfair, is not ULP. e lt commonlyconnotesanti-unionism. r lt also refers to gross violation of CBA provisions. Gross means the act is and flagrant. malicious e ULP cases are not, in view of the public interest involved^subject to compromise. (See CLLC E.G. Gochuangco Worker's tJnion vs. NLRC, G.R. No. 67158, 30 May 1980: AFP Mutual Benefit Association,lnc. vs. AFP-MBAI-EU, 97 SCRA 715, 732 o
(RcDr) 1. fiestrain;
t1e80l)
However.in the case of ReformistUnion
'''
.(Azuieha,,20o7).
,'
Natureof UnfairLaborPractices: 1. Ciminal offenses against the State; 2. Violations of civil rightsof both labor and management; 3. Violatethe constitutional right of workers ' andemployees to self-organization; 4. Are inimical to the legitimafelnferesfs of both labor and management, induding their right to bargain collectively and
-ry
94
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Aspects of Unfair Labor Practice ' 1. Oficersandagenbof 1. Agents and ofhcers employer; or who pafticipated 2. Labor organization, authoized or rdified ofiicersand agents. the act and 2. Agents, representatives, members of the govemment board, including ordinary. (Att. 289 & members. Att.249) CHAPTER II. UNFAIR LABOR PMCTICES OF EMPLOYERS ART.2: ULP THAT MAY BE COMMITTED BY AN EMPLOYER 1. lnterference To interfere with, restrain or coerce employeesin the exerciseof their right to self-organization.
substantial evidence
Test: whether the employerhas engaged which, it niey reasonably be in c-onduct said, tends to interfere with the free exercise of the employees' right and it is not necessary that there be direct evidence that any employee was in fact MTC/RTC, as the i:"':::\ 'r' intimidatedor coerced by the statements case may be (Art. of threats or the employer if there is a 288) that the anti-union reasonableinterference conduct of the employer does have an adverse effect of self-organlzation and beyond reasonable collective bargaining. (The lnsular Life doubt (subject to Assurance-NATtJ v. The lnsular Life prosecution and Co., Lld., No. L-25291 , January Assu.rancb * punishment) 30, 1971) Totality of Gonduct Doctrine of employe/sremarksis to The culpability be evaluatednot only on the basis-oftheir but againstthe baclground of implications, and in conjunction with collateral (Ibid.\ circumstances. Examples: intimidation a. Outrightand unconcealed b. In order that interrogationwould not be deemed coercive: i. The emPloYer must communicate the PurPose of to the emPloYee. questioning ii. Assure him that no reprisalwould iii.
one year from the . one year from the accrual of the ULP act accrual ofthe ULPact (Att. 290\ (Art 290), however, it will be suspended once the administrative case has been filed and would only continue running once the adminbtrative case has attained finality. . Finaljudgmentin the administrative proceeding finding that ULP has been committed is a prerequisite in filing a criminal casefor ULP. Note: Finaljudgmentin the administative proceedings shall not be biFqlnsin,the.criminal itiri*.!:;j+j)ril+ c6e hor 'shall - be considered as an evidence of guilt but merely as a proof of compliance of the prescribed requirements by the Code.
95
LAW LABOR RELATIONS LABOR

interests of the company reasonably demand it. Unlessthere are circumstances by the which directly rcint to interference companywith the employees'rightto selfthe transfer of an employee organization, should be consideredas within the bounds allowed by law (e.9. despite transferto a lower position,his originalrank and salary remained undiminished) (Rubberworld Phits., v. NLRC, GR No. 75704, JulY 19, 1989). 2. Yellow Dog Condition To require as a conditionfor empoyment that a person or an employeeshall not join or shallwithdrawfrom a labor organization one to which he belongs. Yeltow Dog Contract - a promise exacted from workers as a condition of employment that they are not to belongto, or attempts to foster, a union during their period of employment.lt is null and void because: a. lt is contra4y to public policy tor it is servitude. to involuntary tantamount b. lt is entered into without consideration for employeesin waiving their right to self- organization. c. Employees are coerced to sign contracts disadvantageous to their family. Note: One of the cases of ULP that may be committed in the absence of an Er-Ee relationship. 3. Gontracting Out To contract out services or functions being - performed by union members when such will interfere with, restrain or coerce employeesin the exerciseof their right to self-organZation. Does M. 248[c] mean that an employer cannot contract out work? NO. Contracting out services is not ULP UlrP ,only, wQen the.foilowing s9r [t i-s, ' "..pet '"cbnditiori5'exist 1. The service contractedout are being pefiormed by union members; and 2. Such oontracting out intefferes with, resfrains, or coerce employees in the exercise of their ight to sefforganization. HOWEVER, when the contracting out is being done for businessreasonssuch as decline in business, inadequacy of equipment'or to reduce cost, then it is a valid exercise of management prerogative. leges under
RunawaY ShoP - an industrialPlant to from one location movedby its owners or regulations labor escape to another state laws or to discriminateagainst at the old plant becauseof employees activities. theirunion of Union 4. CompanY-Domination assistor otherwse dominate, To initiate, interfere with the formation or of any labor organization, administration or other of financial the'giving including officers' to it or its organizerg.'or support Unionism Unionism/Gaptive Gompany the officers as a ULPbecause ConsiOered andthey employers the to will be beholden of whomthey will not lookafterthe interest represent. Forms.' of the coinpanyunion idea a. . Initiation by: or by employer formation i. Outright his rePtesentatives; ii. Ehployee formation on outright bY employer; or influence demand and motivatedformation iii. Managerially bYemPloyeesto the unionby: support b. Financial expenses' union defrays i. Employer ii. PaYs attorneY'sfees to l!''" attorneY who drafted the Constitutionor bY lavs of the union; c. EmPloYer encouragement and - lmmediately grantingof assistance as bargaining exclusiverecognition the whether determining agentwithout giority of the
i
95
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directedto encourageor discourageunion membershio. Three Components of Discrimination: a. lt prohibitsdiscrimination in terms and conditionsof employmentin order to encourageor discouragemembership in the union; b. lt gives validity to union security agreements; and c. lt allolllsan agencyshop arrangement whereby agency fees may be collected from non-unionmembers. Discrimination Distinguished from Classification While discriminationis considered an unfair labor practice,classification is not because it merely differentiates the employees in accordance with their respective jobs and accordsthem the appropriatelevels of pay or benefitsdue them by reasonthereof. 6. Discrimination because of Testimony To dismiss, discharge or otherwise prejudice or discriminate against an employeefor having given or being about to give testimony under this Code (Ihe only ULP ad which is not anti-unionism\. Subject Matter of Testimony: can be anythinguncjer the Code. What is ULP is the employer'sretaliatory act regardless of the subjectof employee's complaint or testimony. In effect, if a retaliatoryact is done under Arf. 1'l8, the consequence is ULP under Art. 248[fl (Mabeza v. NLRC,'GR No. 118ffi6, April Delaying negotiations by discussing matters; unrelated to bargain; to accept requests d. Refusal e. Rejectinga union's offer to prove its claim; majority and to avoid bargaining; f. Shutdown in surfacebargaining. S. Engaging c. Surface Bargaining- going through without any the motionsof negotiating legal intent to reach an agreement.lt the questionof whether or not involves the employeis cQnductdemonstrates to bargain in good an unwillingness faith or is merelY hard bargaining (Standard Chartered Bank v. Hon. Confesor,GR No. 114974' June 16, ..-.'":i:. 2004 June 2AA4). .i:', 8. Paid Negotiation fees to the or attorney's To pay negotiation union or its officersor agentsas part of the settlement of any issue in collective or anYother disPutes. bargaining t Vi6tation of cBA The violation must be gloss; flagrant and/or maliciousrefusalto complywith the of the CBA (Art' 261)' economicprovision 'GROSSLYVIOLATE" phraseis an Note: amendment bY R.A. 6715. Nence, if the violation is not gross, it is not ULP but a grievanceunderthe CBA '1-9) acts (Nos, Note: All the aforementioned must have a relation to the employees Antiexerclseof their rightto self-organization union or anti-organizationmotive must be proved because it is a definitionalelement of ULP. '
18,199n.
7. Violationof Dutyto Bargain To violatethe dutyto bargain collectively as prescribed by this Code. The fottowingacts are held to constitute refusalto bargain: a. Alesingthatthe-union is irresponsible; , opi:ration'i ;' jI b');i'Tibnsferring to 'elude the (Run- Awayshop); union; Run-Away Shop - is an unfairlabor practice of.management whichusually takesplaceby effecting the transferof ownership, the plant itself, or its equipment, or by temporarily closing its business purposelyto bust the union or. to evade the paymentof legitimate obligations.
Theburden
shouldersof
as a S&b*t#effiSd
of
union on where exercising
employer
97
LABORLAW LABORRELATTONS
discharge,and the employeequits as a result of the prohibition. Security Arrangements - stipulationsin the CBA requiringmembershipin the contracting union as a condition for employment or retentionof employment in the company. Principles of Union Security Clauses/Arrangements 1. Protection - to shield union members from whimsical and abusive exercise of prerogatives. management 2. Benefits - an additionalmembershipwill insure additionalsource of income to the union in the form of union dues and specialassessment. .,it:.strengthens the 3. Self-preserv3tioft-.:r,unionthroughselectiveacceptance of new memberson the basis of commitmentand loyalty. Different Kinds of Unircn Security Arrangements (Exceptions to ULP on lnterference on the Employees' Right to SelfOrganization) (CUMM-PA-BE) 1. Closed-ShopAgreement . The employer undertakes not to employ any individualwho is not a member of the contractingunion and the said individual once employed must, for the duration of the agreement,remain a member of the union in good standing as a condition for continued employment. r Does not have any retroactivity. r Appliesonly to nsv hires Exceptions: a. Employeesbelongingto any religious sect whicfr prohibit affiliationof their members with any labor organization are not covered by such agreement. The free exerciseof religiousbelief is superior to contract rights (Vidoriano v. Hizalde Rope Workers, No. L1 9741. 1... ; 25246,.Septemberf2, b.'::'Membeisof the rival tlnion are not coveredby such arrangement. c. Confidentialemployees excluded from rank and file bargaining unit d. Employeesexcludedby express term ' of the agreement Semi-Closed Shop Agreement - the prospective employee must be a member of the union as a conditionof emfloyment and has no requirementfor the employee to remain as member of the contracting union in good standing as a conditionfor employment. continued 2. Union Shop Agreement Stipulationwhereby any person can be employed by the employer but once employed such employee must, within a specific period, become a member of the contracting union and remainas such in good standing for continued employment for the durationof the CBA. (Take note of the exceptionsin the preceding number.l 3. Maintenance of Mef,iOersnip Shop Agreement The agreementDOES NOT require nonunion BUT membersto join the contracling provides that those who are members thereof at the time of the executionof the CBA and those who maY thereafter, on their own volition,become members must fo;'the durationof the agreementmaintain their membershipin good standing as a conditionfor continuedemploymentin the < companyfor the durationof the CBA. 4. lreferential Shop Agreement An agreernent whereby the employer merely agrees to give preferenceto the unionin hiring, of the bargaining members promotionor filingvacanciesand retention in case of lay-off. The employer has the right to hire from the open market if union membersare not available. 5. f,gencyShopAgreement An agreement whereby employees must eitherjoin the union or pay to the union as . exclusivebargainingagent a sum equal to that paid by the members. Note: This is directed against "FREE fromunion RIDER"
'
tr the join
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6olleged![.s16 Ser SeDe BAROPERATIONS 2OII CENTRALIZED

7. fxclusive Bargaining Shop The union is recognizedas the exclusive bargaining agent for all employees in the bargaining unit, whether union members or not. 8. Eargainingfor MembersOnly The union is recognized as the bargaining agent only for its own members. Requirements for a Valid Termination'by the Employer of the Services Closed-Shop Agreement 1. The agreement must be expressed in a CLEAR AND UNEOUIVOCALway so as not to leave room for interpretation becauseit is a limitation to the exerciseof the rightto self-organization. 2. Any doubt must be resolved against the existence of a closed-shopagreement. 3. The agreement can only have PROSPECTIVE APPLICATION and cannot be applied retroactively. 4. lt can only be exercised by giving the employeehis rightto DUE PROCESS. a. The employer has the right to satisfy himselfthat there are sufficientbases for the requestof the union. b. The terminationof the services of the employee is not automatic upon the requestof the union. 5. lt CANNOT BE APPLIED to employees who are already MEMBERS OF THE RIVAL UNIONor to the employees based on their RELIGIOUS BELIEFS. . CHAPTERIII. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS ART. 249: UNFAIR LABOR PRACTICESOF I-ABOR ORGANIZATIONS 1. To restrain or coerce ernployees in the exercise of their right to self-organization. However, a labor organizationshall have the right to prescribe its own rules with respect to the acquisition or retention of and conditions under which membership or continuation of membership is made to othermembers; availaUe Note: A union member may not be expelledfrom the union,and consequently from his job, for personal or impetuous reasons or for causes foreign to the cfosed-shop agreement. (Manila Mandarin Employees lJnion v- NLRC, No' L-76989' September 29, 1987) 3. To violate the duty orgpfuse to bargain coltedively with the employer provided that it is the representative of the employees; 4. To cause or attemptto cause an employer ' to payrir:deliveror agree to pay or deliver any money or other things of value, in the nature of an EXACTION, for services which are not Performed or not to be performed,includingthe demand for a fee for union negotiations. Featherbddding (make-work activities) refers to the practice of the union or its agents in causing or attemptingto cause an employerto pay or deliver or agree to pay or deliver money or other things -of vaiue, in the nature of exaction, for serylceswhich are not performedor not to be performed,as when a union demands thai the employer maintain personnel in excess of the latte/s requirements' Note: lt is not featherbeddingif the work is performed no matter how unne@ssaryor uselessit may be. 5. To ask for or accept negotiation or attorney's fees from employers as part of the settlement of any issue in collective
sar* mm.me
INTERFERENCEby tabor Notq organization is not ULP as long as the interference does not amountto restraint or coercion. 2. To causeor attemg to causean employer to disciminate againg an employee, including discrimination against an employee with respect to whom membershipin such organization has beendeniedor to terminate an employee otherthanthe usualterms on any ground
dispute. Resulting
contrac{' -
substantially
99
t3
LABORLAW UIBOR RELATIONS
and whose benefits are far below those that are providedby law. Blue-Sky Bargaining - is defined as making exaggerated or unreasonable proposals. Whether or not the union is engagedin bluesky bargainingis determinedby the evidence presented by the union as to its economic demands. Thus, if the union requires exaggerated or unreasonable economic demands, it is guilty of ULP (Standard Chartered Bank v. Hon. Confesor. GR No. 114974,June 16 2004). T]TLE SEVEN. COLLECTIVEBARGAINING AND ADMINISTRATION OF AGREEMENTS ART. 250: PROCEDURE IN COLLECTIVE BARGAINING Collective Bargaining - obligationto meet and convene promptly and expeditiouslyin good faith for the purpose of negotiating an agreement Wth respect to wages, hours of work arid all other terms and conditions of employmentincludingproposalsfor adjusting any grievances or questions arising under such agreement and executing a ntract incorporating such agreementsif requested by either party but such duty does not compel any party to agree to a proposal or to make any concession.(Art- 252) General Rule: Ng court or administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work .or other terms and conditions of employment except as otherwise provided under the Labor Code. Purpose to encourage a truly democratic method of regulatingthe relations between the employers and employees by means of agreements freely entered into through collec'tive bargai ning. Exceptions.' productivity 1. National Wages and Commission and Regional Tripartite Wage6and Productivity-Boardas to wage fixing (Arfs. 99 and 122) 2. National Conciliation and MediationBoard and the National Labor Relations Commission- as to wage distortions (Art 124) 3. Secretary of -Labor and Employment an<j President of the Philipprines- as to certification and assumption powers over labor disputes (Art. 263[9]) Ju risdictional Preconditions {D-PPE) 1. !mployer-employeerelationship 2. lossession of the status of majority the representation by employees' representative in accordancewith any of the means of selection or designation providedfor by the LaborCode; 3. Proof of majority representation (Certification of the BLR that the representativeof the employees is the sole and exclusive bargaining agent havingwon in a certification election); and 4. pemand to bargain under Afticle 250[a]ot the LaborCode (Klok Logv. NLRC,No. L54334, January 22, 1986): Note: Where a majorityrepresentative has been designated, it is an ULP for the employer, as a refusal of collective bargaining, to deal and negotiatewith the minority representativeto the exclusion of the majority representative. Collective Bargaining Agreement (CBA) - a contract executed upon request of either the employer or - the exclusive bargaining incorporating of the employees, representative with the agreement,reachedafter negotiations respectto: 1. Wages; 2. Hoursof work; and 3. All other terms and conditions of unit,including in a bargaining employment proposalsfor adjusting any grievance or question under such agreement. (Davao lntegrated Port Stevedonng Serubes v. Abarquez, GR no. 102132, March 19, 1993) (i.e. mandatory provisions for grievances machineries) and arbitration in a CBA CBA Zipper Clause - a stipulation in have been been indicating that issues that could have
in the CBA
may
be of lf
encour
100
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5. lf not resolved, the parties may go to where they want and lesort to any other lavvfulmeans (either to settle the dispute or submit it to a voluntaryarbitrator). proceedingin Note: Duringthe conciliation the Board,the partiesare prohibitedfrom doing any act which may disruptor impede the early settlementof the disputes (Art. 250[d] LC). Kinds of Bargaining 1. Single Enterprise Bargaining - involves negotiation between one certified labor unionand one employer. 2. Multi-employer bargaining involves negotiation between and among several labor unionsand employers. Stages in the Negotiation for a Collective Bargaining Agreement (PreNEP-RRAI) 1. Preliminary Process - written notice for negotiation which must be clear and unequivocal. 2. NegotiationProcess. 3. lxecution Process - signing of the agreement. 4. Publication for at least 5 days before ratification. 5. $atification by the majority of all the workers in the bargainingunit represented in the negotiation(not necessaryin case of arbitral award) 6. EegistrationProcess. a. requisites for registration: provisions; b. mandatory c. paymentofP 1,000; d. 5 copiesof CBA; and e. proof of ratification. 7. {dministration Process- the CBA shall be jointly administeredby the management and the bargaining agent for a period of 5 years. 8. lnterpretation and Application Process. Mandabry Provisions of the CBA 1. Wages, 2. Hours of work: 4. 5. 6. 7. Voluntaryarbitration; Familyplanning; Rates of pay; and Mutual observanceclause. which longer Collective 261, Labor to other matters,he is free to bargainor not to bargain. ART. 252: MEANING OF BARGAINCOLLECTIVELY DUTY TO
Where NO CBA Exists of a mutualobligation:' The performance and 1. To MEET AND CONVENEPromPtlY in good faith for the purpose expeditiously of negotiatingan agreementwith respect to wages, hours of work and all other terms and conditiqrs of employment including proposals for adjusting any grievances or questions arising uncler and such agreement; CONTRACT A EXECUTE 2. TO agreements if incorpolating . such bY either PartY. requested Limitations 1. The duty to bargain collectivelydoes not to: compel anYPartY a. ,\gree to a ProPosal; or b. Make a concession; c.' Make room for "take it or leave it" Posture. 2. The parties cannot stipulate terms ancl which are below conditionsof employment the minimum requirementsprescribedby law, Where CBA Exists (See lVofes under Art. 253) Note: Collectivebargainingdoes not end with the execution of the agreement. lt is .a continuous process. The duty to bargain imposeson the partiesduringthe term of their agreementthe mutual obligationto meet and and in good confer promptlyand expeditiously faith for the purpose of adjusting any grievances or question arising under s_uctl v. ClR, agreement
, 5s*.'bii6ia6ce:m"bnineh
ln addition,the Bureau requiresthat the CBA should include a clear statement of the terms of the CBA. Note: Employer'sduty to bargain is limited to MANDATORY BARGAININGSUBJECTS: as
101
Economic Exigencies Do NOT Justify Refusal to Bargain An employer has been held not guilty of refusal to bargain by adamantlyrejectingthe union's economic demands where he is OPERATINGat a loss, on a low profit margin, or in a depressed industry, as /ong as he mntinues to negotiate.But financial hardship constitutesno excuse for refusingto bargain colleclively. Ac{s NOT Deemed Refusal to Bargain 1. Adoption of an adamant bargaining positionin good faith; 2. Refusal to bargain over demands for commission of ULP; 3. Refusalto bargain during period of illegal mandatorysubject, Party B may complain that Party A's postureis just an excuse to avoid bargaining on the mandatory, essential subjects of bargaining; thus, Party B can charge that Party A is bargainingin bad faith or is evading bargaining on terms and conditions of employment - in short, Party A is committing ULP. Note: What the rule forbids is the posture of making settlementof a non-mandatory subjecta pre-condition tB the discussionor subject. settlementof a mandatory Deadlock - synonymouswith impasse or a reasonableeffort standstill which presupposes at good faith bargaining but despite noble intentionsdoes not conclude an agreement betweenthe parties. /n case of a deadlock in the renegotiation 6 the CBA, the pafties rnay exercise the foltowing '1* Call upon the National Conciliation and MediationBoard (NCMB) to intervenefor the purpose of conducting conciliation preventive mediation; or 2. Referthe matterfor voluntaryarbitration compulsory arbitration; 3. Declare a strike or lockout uPon This of the legal requirements. compliance is the remedyof last resort. ART.253:DUTY TO BARGAIN WHEN THEREEXISTSA COLLECTIVELY COLLECTIVEBARGAININGAGREEMENT General Rule: When there is an existingCBA' shall also mean the duty to bargaincollectively that neither pafi shall TERMINATE nor MODIFYsuch agreementduring its lifetime.lt is the duty of
strike;
4. There is no requestfor bargaining; 5. Union seeks recognition for an inappropriately large unit; 6. Union seeks to represent some persons who are excludedfrom the Code; 7. The rank-and-file unit includes supervisors; 8. The demand for recognition and bargaining is made within the year following a certificationelection in which the clearchoicewas "no union"and no ad interimsignificantchange has taken place in the unit; and 9. The union makes unlaMul bargaining demands' Bargaining b the Point of Deadlock or lmpasse 1. Over a MANDATORYSUBJECT - party may insist on bargainingand will not be construed as bargainingin bad faith. Reason: Duty to bargainrequiresmeeting and convening on the terms and conditions of employment but does not require assent to the other part/s proposals. 2. OveT a NON-MANDATORYSUBJECT party qay not insist on bargainingto the : polnt of inipasse, othendse;'he will be construed as bargaining in bad faith. Example: The employels insistencethat the union shouJd change its negotiator before bargaining can proceed to the employees' wage and benefits is an instance of bad faith bargainingbecause the composition of the negotiatingpanel is not a mandatory subjectof bargaining.
or the
expl Hence, if Party A insists on first setfling a non-mandatorysubject.before taclding a
partiesas
L02
ot T.do 5sn ffiebs@ollege BAR OPERATIONS 2011CENTRALIZED

What may be done during the 60day freedom period FROM 1. A tabor union MAY DISAFFILIATE THE MOTHER UNION to form a local or independentunion only during the 60-day freedom period immediatelyprecedingthe expiration of the CBA (Take note of the limitation - see dlscussions on registration of labor unions.) 2. Either party can serye a written notice to TERMINATE OR MODIFY THE AGREEMENT at least 60 days prior to its expiration period. (on re-negotiable/nonrepresentational as-ped of the CBA see drscussionon Art. 253.1 3. A PETITION FOR CERTIFICATION ELECTIONmay be filed. Absorption doctrine- Otherwise known as Accretion Doctrine', applies when there is absorptionand integrationby one entity of one or more establishments havingthe same kind and line of business having their respective colIec'tivebargaining agreementswith different labor unions existingtherein.Exampleis when one companyis sold to another;in which case, the duty to bargain which originallydevolves upon the selling pady is transJerredto the buyingentity. Successor.lnlnterest Doctrine - When an employerwith an existing CBA is succeeded by another employer,the successor-in-interest who is a buyer in good faith has no liabilig to the employees in continuingemploymentand the colledive bargaining agreement because these contracts are in personam. Except: 1. When the successor-in-interest expressly assumesthe obligation; 2. The sale is a device to circumvent the obligation;or 3. The sale or transferis made in bad faith. Consolidated, lnc. v, Employees' and Workers' lJnion-PAFLtJ,No. L-24711, Apfl 30, 1968)' Limitation as to its APPlication It cannot be invokedto supportthe contention that a newly certified collective bargaining agent automaticallyassumes all the personal of the former agent - like the "no undertakings strike clause" in the CBA executed by the latter (lbid). CBA Proposed by Union may be imposed LOCK, STOCK AND BARREL on emPloYer who refused to negotiatea CBA: Under this situation,the employerwhich violatesthe duty loses its statutoryright to bargaincollectively, to negotiate or renegotiate the terms and conditions of the draft GBA: proposed by the union. Hence,the proposalsof the union may be adopted as the CBA and, consequently' imposed on the employer, lock, stock and barrel. ART. 253.A: TERMS OF A COLLECTIVE BARGAINING- AGREEMENT (CONTRACT BAR RULE} Duration of the CBA . With respectto the representation,aspect, the same lastsfor 5 YEARS. (economic . With respectto other provisions the same may last for and non-economic), a maximum Period of 3 YEARS after the executionof the CBA. Note: While the parties may agree to extend the CBA's original five-year term despite.an agreement for a CBA with a life of more than five years, the bargaining.union's -exclusive oargiining status is effective only for five years and can be challengedwithin sixty (60) daVs
of the CAng !r-qt-Lvê priorto the expiration
Substitutionary Doctrine - where there occurs a shift in the employees' union

employeescap ehange their agent (the labor union) but the collective bargaining contract which is.still subsisting continuesto bind the employees up to its expiration date. They may, however, bargain for the shortening of said expiration date. The employees cannot revoke the validly executed collective bargaining contract with their epployer :by the simple expedient of changing their bargaining agent. The new agent must respect,the contract (Benguet
sA** sffi$e
1. 2.
?
4. 5.
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LABORLAW RELATIONS LABOR

Effectivity and Retroactivity of other Economic Provisions of the CBA 1. lf CBA is the VERY FIRST for the bargainingunit, the partieshave to decide the CBAs effectivitYdate.
z.
particularly the non-representation holding certiftcation aspect election (ECONOMIC maY PROVISIONS not be renegotiated later than three
Those made within 6 monthsafter the date of expiry of the CBA are subied to the day retroaction to automatic such date of exptry. follorving immediately Example: CBA expired on December31. New CBA concluded on March 31. The effectivity date is January 1. Those NOT MADE WITHIN 6 MONTHS, the parties may agree. on the date of retroaction. This rule applies ONLY if there is an existing agreement. lf there is no existing agreement, there is no retroactive effect because the date agreed up6n shall be the start of the period of agreement. Note: Ar.tlcle 259A on retroac{ion does not apply if the provisionswere imposed by the Secretary of Labor by virtue of arbitration. lt appliesonly if the agreement vubsvoluntarily made by the pafties.
The notice intention of to
RULE No INJUNCT|ON ART.234: or petmanent GeneralRule: NO temporary order in, any case or restraining injunction shall out of labord/Sputes iivoNing or growing entity' other or court any by be issued provided Execption: As otherwise .lll1ti"/:t and CommissionAllRC) the of -.+21.&..iPowers = Code' of this (FrohiOited Adivitles) 264 Rationde: lnjundion contradicts the pr"ferencefor voluntarymodes constitudonal settlement. of disPute The following are authorized to issue or restraining ordersinjunctFons (Art' 218) or any division' 1.' NLRC ln case of labor dispute in 2. President. to industrieswhich are indispensible (Art-263) interest. national 3. Secretary.ln case of labor dispute ln to industriei which are indispensible may Secretary the national interest, over the disputeor assumejurisdiction for certify th-esame to the Commission assumption Such arbitration' compulsory or certificition shall have the effect of or enjoiningthe intended. automatically taken already lf one'has strikeimpending out employees place,allkriking or locked returnto work and the shall immediately employer shall immediately re-admit oPerations' and resume emPloYees
apec{
of the
terminate, amend CBA shall be the for a tenn of or alter piovbions of the toe (5). A for CBA shall be filed petition within the 60-dry certification period,immediately eledion may be prior to the entertained and epiration of the a cqrtification election may be CBA. The economic condrrcted provbions, within the 60period however, may be day renegotiated not immediately later than tkee (3) prior' to the of :Ye.gfF-,,.ii....Ihq:9 erpiratbn tffilii{ij"'i :;,,."': $. CBA, provbions entered within 6 months from the expiry of their term as fixed in the CBA shall retoact to the dqy immedately follolringsrch date, if beyond6 months the etrectidrty b by agreemefr of the
Note:
parties
third securea
*;
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Sun Sebs@ollege d Stetr 2011CENTRALIZED BAR OPERATIONS

(Seenofesunder Afts. 26j August 17, 1967). and 264\. ART. 255: EXCLUSIVE BARGATNTNG REPRESENTATIONAND WORKER'S PARTICIPATION IN POLICY AND DECISION-MAKING Extent of the Workers' Right to Participate In Policyand Decision-Making Processes Such right refers ONLY to participation in grievance procedures and voluntary modesof settlingdisputes and NOT to formulation of programs corporate andpolicies. Note: An employermay solicit questions, suggestions and complaints from employees eventhoughthe employees are represented provided: by a union, 1. The collective bargaining representative executes an agreement waiving the right to be presenton any occasionwhen grievances employee are beingadjusted by the employefi and 2. Employer acts $rictlywithinthe terms of thiswaiveragreement. One-Union, One-CompanyPolicy - the proliferation of unionsin an employer unit is discouraged as a matterof policyunlessthere are compelling reasons which woulddeny a certainclass of .employees the right to selforganization for purposes of collective bargaining. Exceptions: 1. Supervisory employees'who are allowed to form their own unions.apart from the . rank-and-file employees; and 2. The policy should yield to the right of employees to formunions for purposes not c-ontrary to law, self-organization and to enter into collec.tive bargaining negotiations. a. Two companies cannotbe treatedinto a singlebargaining unit even if their businesses are rqlated. '-'6. "Su6idiaries or' ibrporations formed out of formerdivisions of a mothei companyfollowinga reorganization may constitute a separate bargaining unit. Labor Management Councll- dealswith the employer on mattersaffecting the employee's rights,benefits andwelfare.' Purposes are to: 1., Promote gainful employment; 2. lmprove workingconditigns; and
3. Achieve increased productivity (R.4. 6971). PETITION ARTS. 256-259r CERTIFICATION ELECTION FOR
Bargaining Unit - a group of employeesof a given employer,comprisedof all or less than all the entire body of the employees,which, consistent with equityto the employer,indicate. to be best suited to serve the reciprocal rights and duties of the parties under the collective provision bargaining of the pw. BargainingUnit v. Union
Thevotersarethe CBU, whether. or non-union union (Arfs. members 255and 256).
Thevotersarethe CBU,notjustthe members union (Aft.231\. Certification Year - refers to the period wherein collective bargaining should begin, which is within 12 months following the determinationand certificationof employees representative. exclusivebargaining Determining the in Four Factors Appropriate Bargaining Unit (G-CHE) (Sfa,
bffiil&s$s {}F L'Av{
, *irr ooaffis${r,s&ffi&"
105
. . beasonat;ano Probationaryemployee. 3. Petition was filed within 1 Year entry of voluntary recognition or 'a valid certification,consent, or run-off electionand no appeal on the results thereofis pending. A duly certifiedunion has commenced and sustained negotiationswith the employeror there exists a bargaining deadlockwhich had been submittedto conciliation or arbitration or had becomethe subjectof a valid notice of strike or lockout to which an incumbent or certi[fed bargaining agent is a party In case of an organizedestablishment, failure to submit the 25% suqqort requiremeit lor the filing of the petition election. for certification
El
Things to Gonsider ln Determining the Gommunity of Interest Doctrine 1. Similarityin the scale and manner of determining earnings; 2. Similarityin employment benefits,hours of work and other terms and conditions of employment; Similarity in the kindsof work performed; 4. Similarity in the qualifications, skills and trainingof the employees; 5. Frequency of contract or interchange amongthe employees; 6. Commonsuoervision and determination of policy; labor-relations 7. Historyof previous collective bargaining; 8. Desires of the affec'ted employees; and o Extentof union organization. Methods to Determine Bargaining Unit A. Certification Election - the process of determiningby secret ballot the sole and exclusive bargaining agent of the employees in an appropriate bargaining unit, for purposesof collectivebargaining (employeesin the 3 payrollperiod priorto the certification electionmay vote). Certification Election Not Necessary when: 1. Employer voluntarily recognizes the said union;and 2. Employeesdesignatethe union as the bargai ning representative. Nature A certification election is NOT A LITIGATION but merelyan investigation of a non-adversarialfact-finding character in which the Bureauof Labor Relationsplays the part of a disinterested investigator seeking merely to ascertain the desires of the employees as to the matter of their representation.(Airline P/ofs Assn. of fhe Philippinesv. ClR, 76 SCRA 274)
Consent Election - voluntarily agreed upon by the parties with or without the of DOLE inter,'ention Note: Cedifcation election and consent glectio4 are separate and distinct from each other.
Certification v. Consent Election

To determine.the sole and exclusive bargaining the of all agent an in employees appropriate bargaining unit for the purpose of collectivebargaining.
the issueof To determine of representation majority all the workers in the appropriate collective for unitmainlY bargaining purpose of the the determining of the CBA adminbtrator when the contracting union suffered massive dbaffiliationbut not for purpose of the the determining bargaining agent for
of collective
":' aAiliialTor Dismissalor ihe pefition for Certifr cationElection (D.O.40-03) 1. Petitioner is not tisted in the
. depaftment's registry of legitimate labor unions. or that its legal personality has been revoked or cancelledwith fi nality. 2. Petition was liled before or after the freedom period of a duly registered CBA; provided that the 60-day period . based on the original CBA shall NOT be affected by any amendment, extension,or renewal of the CBA.
by the
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@ollege of i[.eb 5sx DeUs BAROPERATIONS 2011CENTRALIZED

Summary of the Procedure in Voluntary Recognition(D.O.4U03) 1. When and Where to file: 30 days from andunion shall suchrecognition, employer recognition submit'a notice of voluntary the with the Regional Officewhichissued recognizedlabor union's certificateof registration or certificateof creationof a chartered local. 2. Requirements: Originaland 2 duplicate copies of: a. Joint statement under oath of voluntary recognition; of posting of joint statement b. Certificate days in at least2 for 15 consecutive the conspicuous places in uni{. of the bargaining " establishment in c. Approximate numberof employees unit and the namesof the bargaining the recognition; thosewho supported and d. Statement that the laborunionis the only legitimate labor organization unit. within operating the bargaining of the notice All accompanying documents recognition shall be certified for voluntary representative underoathby the employer labor and presidentof the recognized 'union. 3. Action on the notice by the Regional Office, through the Labor Relations withirr 10 daysfrom recei$of the Division, lf thereis noticeof voluntary recognition. it must be insufficiency of requirements, complied with within10 daysfrom notice, otherwise,it shall be disrnissed without prejudice to its re-submission. 4. Effect bars the filing of a petitionfor certification election by any labor organization for a period of 1 year from dateof entryof voluntary recognition. Effect oJ Voluntary Recognition by the Employer Through voluntary recognition by the employer, the labororganization is recognized by the employer as the exclusive bargaining
L07
LABORLAW LABORRELATIONS Distinctions

Purposeis to determine the sole and Requires a petition for certification exclusivebargainingagent of all the election filedby a unionor employer. A employees in an appropriate bargaining grantsthe petitionand an Med-Arbiter unit for the purpose of collectiveelection officer is designatedby the bargaining Regional Director to wpervbe the election Note: Me&Arbiter may determine if thereis employer-employee relationship andif thevoters areeligible. Purposeis to determine the issue of Heldby agreement of theunions withor majority represertation of all the without the participation of the Medworkep in the appropriatecollectiveArbiter bargaining unit mainlyfor the purpose of deterqining the adminbtrator of CBA when the contracting union sufferedmassive disaffiliation and NOT for the purpose of determiningthe bargaining agent for purposes of collective bargaining
Takes place between the unions who received the two highest number of votes h a certification electiorr with three (3) or more choices, where not one of the unions obtained the majority of the valid votes ca$, providedthat the total union votes is at least 50% of the votes c6t
Takesplacein two instances: if one choicereceives a plurality of vote and the remaining choices resuhs in a tie:or if all choicesreceived the samenumber of votes. In both instances, the NO UNION is alsoa cfioice.
nbor organization includinga nationaluiion or federationwhich hc atreaOyissued a certi-ficate to ils local chaptei participaing "f,"rt", in-he certifrcation electionor a iocal cfraptbrrFi"t n"" begn egged a charter cefiificate 6v ne national : union or feder?fori, que$io'ning:tre inajoritystatus oTne Incumbent bargaining agent within the 6G ory reedom period before the expiration of a CBA. r The petl$on must be supported by the wrifien oonsentof at least25olo of all the employees in the appropriate bargainin! unit. r The employer cannotfile a petitionfor certification onty a tesitimatb hbor organ-aiion, :lil!o",; national union or federdion which hal already bsugd a charter,certifpateto lts tocai participating in the certifrcation electionol."t"ot", i ii""f ghapter rvhichhas beenissueda chartercertiticate by .the nationalunionor federation can file such applicable in this
. yponttetitinffi
when resto bya ed to ; and
108
Fsn Getre@ollrgeot I& BAROPERATIONS 2011CENTRALIZED

iffi=u6Fart;wever to the
2. withinthe 60 election for certification ftle a petition RUIE) period(CONIRIACT-BAR dayfreedom \Nhen therd ls no CBA, then the labor can file a petitiontor -cef{9{taon organization eljction at any time, subjectto the DEADLOCK shatt not be considereda party thereto.with-a tor concomitant right to oppose a peutton on eledi on. certificati The employer's participdtion in such shall be limitedto: proceedings i. e"i"g"n"tified or informed of petitions of such nature;and during.the the list of employees 2. Submitting ore-electionconferenceshould the MeoArbiter ac{ favorably on the petition' Rules Which Prevent the Holding of a Certification E lec'tion' Contract - BarRule vlid and registered CBA of a fixed. wnifu " Ort"tion is subsisting,the BLR is not allowed to hold an election contesting the majority ot the incumbentunion during the ftve "i"tu. yearterm of the CBA exceptduringthe 9041Y. period immediatelyprior to the expiration of the CBA. Requirements in order to invoke ContractBar Rule: 1. Agreement is in witing and signed by all contractingParties; the terms and conditions ol 2. lt musl co-ntain
Requisites before a LSor Union can be Declared a Winner @ouble Majority RuleJ 1. Majority of the eligible voters cast their votes: AND 2. Majorityof the valid votes cast is for such union. How to Detefmine the Double Majority Rule the eligiblevotes cast (Firsf 1. In determining Majortty), include spoiled ballots. 2. In determining valid votes (Second Majority), eliminate spoiled ballots but includechallengedvotes. Run-Off Election A run-off election is proper if the following conditionsexist, namely: 1. Valid Election took place because majority of the CollectiveBargainingUnit members voted fFlrst Maiortty]; 2. The said election presentedat least fhree choices (e.9., Union One, Union Two, and No Union); Note: "No Union' shall not be a choice in the run-offeledion 3. Not one of the choices obtained the majority (50%+1-sectnd majority)'of the valid votes cast; 4. The tofal votes for the unions is af /east SP/o ol the votes cast, 5. There is no unresolved challenged votes or election protest which if sustained can materiallyalterthe results;and 6. The two choices which garnered the highest vates will be voted and the one which garnersthe highestnumberof votes will be declared the winn.erprovidedthey 'get the;iirejodty voteslof ,the ,total votes cast. Who Participates in the Run-Off Election: the highest and second The unions receivinghighest number of votes cas{. ART.258.A: EMPLOYER AS BYSTANDER (New,Provisioh inserted by R.A. 94811 In all cases, whether the petition for certification eledion is filed by an employer or a legitimate labor organization,the employer BqKotldw ryrlt.+ 6;1i.a. W iqa'rrwrn k^k,
employment; CovereOemployees in an appropriate unit; bargaining perid or duratlon; 4. It is for a reasonable ratified', be 5. lt must and o - It must
LL#{}S
1...41tu S$.$
election in
109

1 . The CBA is unregistered, l.e. not certified
by the BLR or not registered by the RegionalOffice. The CBA is inadequdeor incomplete, l.e., it does not contain all the substantial demands on terms and conditions and leaves out matters which should have been stipulated, where the stipulation becomes a sweetheartcontract. DOCTRINE OF PREMATURE EXTENSION - the CBA was hastily entered into, i.e., the renewalor extension of the agreement was premature, frustratingthe right of the employeesto petition for a certificationelection at the propertime. 4. Withdrawal of affiliation from the contractingunion broughtabout by schism or mass disaffiliation. Contract where the identity of the representativeis in doubt (ALU v. FerrerCallela, GR No. 8fi85. November 6, 198e) CBA entered into. between the employer and the union during the pendency for certification election (Vassar lndusties Employees Union v. E*rella, GR No. 46562,March 31, 1978\ CBA concludedbetweenthe employerand the union (incumbent bargaining agent)is not a bar to a certification electionfiled by another union and said CBA can be renegotiated at the option of the new bargainingagent (AfU v. Hon. Noriel,No. L- 48367, January 16, 1979\. A CBA registered with falsifiedsupporting documents (Sec. {bJ, Rute XVt, Book V, Rules lmplementing the Labor Code\. CBA was concluded in violation of an order enjoining the parties from entering into a CBA untilthe issueof representation is resolved:and Indications of a Genuine Deadlock to a third 1. The submission of the deadlock partyconciliator or arbitrato[ and 2. The deadlock is the subject of a valid noticeof strikeor lockout. Negotiation Bar Rule election cannot be A oetitionfor certification entertainedif, before the filing of the petition or election, the duly recognized for certification certified union has commenced negotiations with Art. 250 with the employerin accordance of the Labor Code. &i Certification Year Rule No petition for certificationelection may be filed within one year from the date of a valid certirrcation, con$entibi run-off election or from the date of voluntaryrecognition. Examples of Bad Faith Bargaining 1. Surface Bargaining - occurs when employerconstantlychanges its positions overthe agreement. 2. Boulwarism - bccurs: a. When the employer directly bargains with the employee disregarding the union. b. The aim was to deal with the union through the employees, rather than throughthe union. with the employees c. Employer submits its proposals and adopts a 'take it or leave it" stand. This is not negotiation because the take it or leave tf" stand implies threat. TITLE SEVEN.A.GRIEVANCEMACHINERY AND VOLUNTARYARBITRATION(As fncorporated by R.A. 671q ART. 260: GRIEVANCE MACHINERY AND
10. Petition is filedduring the 60day freedom period. Deadlock Bar Rule A petition for certification election cannotbe entertained if,.before,the.filing of the petition for certification election, a bargdining deadlock to whichan incum6ent or certified bargaining agent is a party, had.been submitted to conciliation or arbitration or had become the subjectof a validnoticeof strikeor lockout. Deadlock-,arises whenthereis an impasse, which presupposes reasonable effort ai gooO faith bargaining which, despite noble .didnot conclude intentions, in an agreement between the parties.
Nature of
and no collective
110
of Asb $en &ele @ollege BAR OPERATIONS 2011CENTRALIZED

in the absenceof agreementcan be registered such procedure. It is a part of the continuous process of collective bargaining intended to promote a friendly dialogue between labor and management as a means of maintaining industrialpeace. Note: Waiver of grievance machinery procedure does a not amount to relinquishment of employee'sright to avail of voluntaryarbitration(Apalisokv. RPN, May 29, 2003).
where binding on the larger corporation, of operations relevantsimilaity and continuity is evidenced acrossfhe changein ownership by the wholesale transfer of smaller corporation's employees to the larger 'corporation's Plant. OF VOLUNTARY ART.261:JURISDICTION OF PANEL ARBITRATORS OR VOLUNTARY ARBITRATORS ArbitrableDisputes - disputes as disgutes 1. Contract-negotiation to termsof CBA. - disputes disputes 2. Contract-interpretation arisingunder an existingCBA' involving and such matters as the interpretation of the contract,or alleged application of its Provisions. violation of VoluntaryArbitrators Jurisdiction ExclusiveOriginal Jurisdiction Conferred by Law
Voluntary Arbitration contractual proceedings whereparties to a dispute Select a judge of their own choiceand by consent submit their controversv to him for determination. Note: All grievances not settled within7 days from the date of its submission to the grievancemachineryshall automatically be prescribed referred to voluntary arbitration in theCBA. 'partiesto a Although the provision mentions collective bargaining agreement," it does not meanthat a grievance machinery cannotbe set up in a CBA-less enterprise. In any work placewheregrievance can arise,a grievance machinery(regaldlessof name) can be established. ln a unionized company,Att. 255 allowsan employee whetherunion memberor not, to raisea grievance directly to the employer. Arbitration may be initiated by: ! where 1. Submission Agreement the parties define the disputes to be resolved, or 2. Demandor Notice invoking a collective agreerlentarbitration clause. Distinguished From Mediation A mediatoris a disinterested 3'o party who helps.. settle disputes involvingterms and -iBessigned paid conditions and of.a OBA;lHe bythe Stateand is not selected by the parties. He renders no final and binding decision, but merely suggests solutions. Effect of Mergerand Gonsolidation: WileyDoctrine It statesthat, a duty to arbitrate arisingfrom a agreement collectivebargaining_ survivesthe employeis ceasing to do business as a separate entity Bfter its merger with a so as to be sub$antiallylarge corporation,
the grievances arising from 1. * All interpretation or implementation of the
CBA: or 2. Those arisingfrom the interpretation enforcement of company Personnel policies; issues 3. Hear and decidewage distortion of any wage arisingfrom the application and establishments; in organized orders grievances arisingfrom the 4. Unresolved of the and irndementation interpretation programs underR.A. productivity incentive 6071. Note: lt is the Labor Arbiter and not the which has jurisdiction grievance machinery to the unionsecurity overdismissals oursuant c|ause.
111
LABORLAW LABORRELATIONS Arbitrator, amonga Voluntary Distinctions

Mediator. and a Court of Law person A disinterested courb. A Regular accredited by party, usuallya the Board as government such or a employee who person named helpsin settling or designated,in disputesthe CBA by the involving terms partiesto act as and conditions their Voluntaryof a CBA and is Arbitrator or one NOT selected ciosen with or by the parties, without the but is usually assistarice of assigned and the NCMB, paid by the pursuant to a State. selection procedure agreedupon in the CBA,or any official authorized by the Sec. of Labor to acl c Voluntary Arbkator upon written request and agreement of parties to a labordispute. lnformal proceedings; Arbitrator determines what b admissible evidence. A mediatorFormal rendercno final proceedings, and bindingRules of Cciurt decision and and the Rules merely on Evidence suggests apply. solutions. He usually suggests that parties submil the issue to an arbikator. Judges are to required observe s{are decr'sis. of the law; and interpretation 4. Erroneous justice. 5. Denialof substantial ,
Certiorari Applicable A voluntary arbitrator is a "quasi-judicial' (Sec. 9, B.P. 129, as amended instrumentality by R.A. 7902). lts decisions are therefore to CA under Rule 43 of the Rules appealable of Coutt. Hence, a petitionfor certiorariunder Rule 65 of the Rules of Court will lie ONLY where a grave abuse of discretionor an act without or in excess of jurisdiction of the may be voluntary arbitrator is shown, which q filedwith the Court of Appeals. TITLE EIGHT. STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENTIN TRADE UNIONACTIVITIES,.,. CHAPTERI. STRIKESAND LOCKOUTS STRIKES, PICKETING AM ART.'263: LOCKOUTS Concerted Activi{ - one undertaken by two or moft employeesor by one on behalf of the others. Strike - any temporary stoppage of work by the concerted action of employees as a resu/f of an industrial or labor disPute. kbor dispute - includesany controversyor matter concerning terms or conditions of association or the employment or representation of persons in negotiations, flxing, maintaining,changing or arrangingthe terms and conditions of employment, regardless of whether or not the disptrtants $and in the proximate relation of empoyers and employees (Gold City lntqrated Port Service, lnc. v. NLRC,245 SCRA 627).
Arbitrators are not obliged to follow precedents set by other arbkations in similar cases.
appdiit6'trtffi
CA under Rule 43 of the Rules of Court.
Appeal is to a higher. court underthe Rules of Court and B.P.129.
JudicialReview Grounds: (JADES) '1. Lackof iurisdidion; 2. Graveabuseof discretion; 3. Violation oJdue process;
t72
5ff EeUs @ollegeof :[.sb BAROPERATIONS 2011 CENTRALIZED Law may prohibitstrike but not the right to self-organization. A law may be passed prohibiting selected sectors of labor from to strikes.However, resorting a law cannotbe passedprohibiting selectedsectorsof labor fromorganizing unions. refusal of an Lockout - means the temporary employer to furnishwork as a result of an industrial or labor dispute. Note: Strike and lockoutare similar in the stoppage sensethat they connote temporary of work.Thedifference is that stnkers doneby employeesor labor union whilelockoutis done by the employer. Boycott - an attempt,by arousinga fear of loss, to coerceothers,againsttheir will to "unfriendly withhold from one denominated to labor" theirbeneficia! business intercourse. Slowdown - a method by which one's employees,without seeking a complete stoppage of wor( retard production and distribution in an effortto compelcompliance bythe employer withthe labor demands made uponhim. - vl4drw olfioo rrporwr-rro-$41lftiad Picketing - act of marching to and fro the .usually premises, employer's accompanied by the display of placards andother signsmaking knownthe facts involved in a labor disoute. 'one's This is an exercise of freedom of speech. . Article2M(e) ot the LaborCode prohibits any person engaged in picketing from obstructing the free ingress to and egress from the employer'spremises (Jackbilt lndustries,lnc. Vs. Jackbilt Employees Workers Union-Naflu-KMU, G.R. No. . 17161&19, March 13,2@9.)
Moreover,the right to peaceful picketing should be exercise{ by the workers with due respectfor the rightsof others.Hence, commissionby any picketingemployeeof any act of violence, coercion or intimidation is prohibited. Similarly' picketand the use of means like stationary placingof objectsto constitutepermanent btocka?e or to effectively close points of entry or exit in company premises are likewisenot allowedbY law Strike-Breaker - any pefson who obstrucis, impedes or interfered 6y force, violence, coercion. threats or intimidation with any peaceful picketing by employees during any labor controversy affecting wages, hour or conditionsof work or in the exercise of the right to self-organization or collective bargaining. warehouse, Strike Area - the establishment, depots, plantsor offices,includingthe sites or premises used as runaway shops of the as the *employer $ruck against, as well lmmeOiate vicinity actually used by picketing strikersin movingto and fro beforeall pointsof lt entranceto and exit from said establishment. the before immediately area also includesthe points of entrance and exit of establishment struck against. However, the ingress to and egress from the establishmentstruck against aie not part of the strike are, and may not be blockednor picketed. Types of Strikes 1. Economic strikes - used to secure the economicdemandssuch as higherwages and better working conditions for the I rnruya*,t workers. t futlandrntfu kaltsrt funcUo-ul. 2. ULP strike - protest against ULP of management. ms of
Note: The picketing of a privatehomein a residential district is generally held improper,even when the picketersare domestic servants. Thisis on the qrounds ' 1,:." datfa,'honleiis nlt'an iriaustri-al,or a business enterprise, that it is not acquired gain or profit, or maintained for pecuniary but rather, that it is an institution usedand maintained as a placeof abode,and that an enterprise not conducted as meansof livqlihood,or for profit, does not come withinthe ordinary meaning of suchterms 'trade', (Stafe as lbusiness or'industry'. v. , Cooper,205 Mlnn. 333, 285 N.W. 903, 122 A.LR.77)
that I noiru not l . '
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V(. flr,,{ill,a.ri?rd thrl > wf o.r,l,tl,rrr
l&t"fr s,&lrtn
113

lllegal: Fails to comply with certain requirements of the law, to wit noticeof strike, vote,andreport on strike vote. 3. Sympathetic Strikes- workstoppages ot workers of onecompany to makecomrnon cause with other strikers of other companies, without demands or grievancesof their c ^/n against the employer. lllega!:Because thereis no labor dispute between the workers who are joiningthe strikers andthe latte/semployei. 4. Primary Strike - refers to a strike conducted by the workersagainsttheir employers involving a labor dispute direcfly affecting them. Legal: Because there is a labordisoute involved. 5. SecondaryStrikes - are work stoppages of workers of one company to eiert pressureon their employer so that the latterwill in turn bringpressure uponthe employer of another company with whom another union hasa labor disoute. lllegal: because thereis no labordispute involved. A strike can validlytafe jtace onlyin the presence of and in relation to a ' labor dispute between employer and employee. 6. Cause Oriented Strikes - to make a standon certain national issues.ir,o;cieJ 61p6g; lilegat:A,,Wetga ng .1:lg:.ng..t"yan" b3lan" is iilegatbecause it is a pJtitical strike and thereforethere is n"itn"ibarg.aining deadlock " nor any ULp. lt is a political rally. 7. QuickieStrikes- briefand unannounced temporary workstoppage.
, a.lr.a. ti4ht'!in4,t$kg ':,1', , . . 3i 4qryt,dJrrdiiinaf!.. ;.: .1 -il O otwnn ol c'te -c'arru,f .
Economic v. Political Strike
A voluntary strike An involuntaryslrike; the because the employee labor organization is will declare a strike to forced to go on strike compet management to because of the ULP grant its demands. commited against them by the employer. lt is an act of self-defense since the einployees are being pushed to the wall and theirnonly remedy is to stage a stike.
The colleciive g Either: bargainin agent of the appropriag, l- Collectivebargaining bargaining unit can agent;or declare an economic 2. The legitimatelabor stike. organization in behatf of its members.
30 days ftomthe filingof 15 days fromthe filingof thf notice of strike the notice of strike beforethe intended date subject to the 7-day of actualstrikesubject to strike ban. the 7-daystrikeban.
No exception period may Cooling-off mandatory. be dispensedwith, and the union may take immediate actionin case of dismissal from employment of their officers duly elected in accordance with the union's constiMion and byJars, whlch may constltute unlon busting where the
ng or is
person/s
Er-Ee and the

strike is called;
714
Ssn Sele @olle[e of {.sb 2011CENTRALIZED OPERAfIOT.TS BAR

2. The exlsfence of a disptle between the parties and the utilizationby labor of the weapon of concertedrefusalto work as a means of persuading or coercing compliance with the working men's demands: 3. The contention advaneed by the workers that afthbugh the work ceaseq the employment relation ls deemed to continue albeit in a state of belligerent suspension; 4. There is work stoppage, which stoppageis temporary; 5. The work stoppage is done through the concerted action of the empoyees, and 6- fhe striKng group is a legitimate labor organization, and in case of bargaining '.'.:.i!:deadlock, is the employees' sole bargaining representative. Non -Stri keable lssues (NlLAW) (Article 263 1b); Dept. Order no. 9, Rule 12, Sec.2) 1. Violationsof CBA which are aot gross in character shall be resolved via the GrievanceMachinery; 2. lnter-unionor lntra-uniondisputes; 3. Labor standards cases such as wage orders (Guidelines governing Labor Relations [19 Oct. 1987] issued by Sec. Drilon;see also Article261, LC); 4. Those issues which had already been brought to . voluntary or compulsory 3rloitration. 5. lssuesinvolvinggage distortioncausedby legislated wage orders. Procedural Requisites (GF-SARC-7) 1. lt must be based on vatid and factual ground; a strike or lockout must be based on either a. Collective Bargaining Deadlock (economic) b. Unfair Labor Practice(political)
- Yuytin0 l, iyrttrr&t r,tnirn
Purposes: {a) to inform the NCMB of the intent of the union to conducta strike vote; (b) give the NCMB ampletime to decideon whether or not there is a need to supervise the conductof the strike vote to preventany acts of violence or irregularitiesattendant thereto; and (c) should the NCMB decide, motu proprio or upon the request of any interested party including the employer, to supervise the strike vote, to give it ample time to prepare for the deploymentof the ng peace officers includi requisitepersonnel, 4. A strike vote must # t"r"n where a majorityvote of the membersof the union must Spproveit, obtained'bysecret ballot in a meetingduly calledfor the purpose;or a lockout vote must be taken where a majority vote of the members of the Board or association of Diredors of a corporation must approve .or partnersin a partnership, it, obtained by secret ballot in a meeting duly calledfor the PurPose; 5. A strike or lockout vote leport should be - submittecf to the NCM-DOLE at least seven davs before the intended date of strike or lockout * du. trrwl+pralrsvr dakot -'rh M/ird i/ninor Purpose: The evident intentionof the law the strike or lockoutvote report in requiring requirements is to mandatory as reasonablyregulate the right to strike or lockout, which is essential to the attainment of legitimate policy objectives embodiedin the law.
6. Except in cases of union busting' the gooling off period prescribedby law should be fully observed 7. The !4ay waiting period or strike ban i ttYll lvtit after submissionof strike or lockout vote to I f. the NCMB-DOLEshould be fully observed in ALL
2. A noticeof strike or lockor.rt mustbe filed with NCMB-DOLE; trrgicyrflJ rcMs) Inr,nlrVt At Jq,st 3Q daysrfrom tlle intended '?. 'date'thereof, rrh ndtf if the ;issues involved arose from a collectivebargaining rrk t{.i'}.1,
I
rdrnlr.rn
deadlock.
b. At least 15 days from the intended ,g.nq uWrr date, if the..issues raised are in the I nature of unfair labor practices.
oi{l F
, rh(r{, 3. A notice must be gerved to the NCMB;i'rrdl DOLE at least 24 hours prior to the taking of stfike or lockout vote by secret balloting, informing said office of the decision to conduct a strike or lockout vote, and the , date, place and timethereof; b l,{ -w*r fkr[-tt [TnC6tlrl,,f
L vrrqt-w1*lcr'mcgn{ ttu'r ma-kratu vtuLr,
strikeis a
[,ttrBtV
115
Labor Code - the constitutionalprecepts of due process mandate that the other party be notified of the adverse action of the opposinS party (Filipino Pipe and Foundry Corporationv. NLRC, 3tB SCRA 6q. b. Coolingoff Period before the intendeddate of actualstrikesubject to the 7{ay strike ban. a. Bargaining deadlock- 30 days b. ULP - 15 days c. Union Busting - cooling-off period NEED NOT BE OBSERVED and the union may take action immediately after the strike vote is conducted and results submitted to regionalbranch It is that period of time given the NCMB to mediate and conciliatethe parties. lt is that span of time allotted by law for the parties to setfle their disputesin a peacefulmanner,before staging a strike or lockout. lt is reckoned from the time when the notice of strike or lockotrtis filed Wth the NCMB, a copy of said notice having been served on the other party concemed. Otherwise, the mere filing of the noticewith the NCMB without a proof of vatid service thereof to the other party concernedwill not trigger the runningof the cooling-off period. c. Strike Vote - a requirementwherein the decision to declare a strike must be: i. Approved by a MAJORTTY of the TOTAL UNION MEMBERSHTP in the bargainingunit concerned(not of the whole bargaining unit);and ii. Obtainedby SECRET BALLOT in MEETINGS OR REFERENDA calledfor the purpose. Purpgse: to ensure-thatthe intended strike 16a majority debsion. d. 7-Day Strike Ban - the 74ay waiting period before the date of the purported strike (withinwhich the unionintending to conduct a strike must at least submit a report to the Department as to the result of the strike votei intended to give the Departmentan opportunityTO VERTFYwhether the projected strike really carries the imprimaturof the majorityof the union membersin additionto the cooling-off l periodbeforeactualstrike. Should the strike vote be taken within or outside the coolingoff period? The law does not specify but NCME's Primer on Stike, Picketingand Lockout states that if the strike vote is filed Wthin the cooling-offperiod,the 7-day requirement "SHALL BE COUNTED FROM THE DAY FOLLOWINGTHE EXPTRATTON OF THE!.COOLING-OFF PERIOD." In effect, the 7 daYs are addedto the 15 or 30 days. Note: The 7-daywaiting periodor strike includingunion ban appliesinH:cilses, busting. What the law comPletelY disregards in cases involving union period. bustingis only the cooling-off 3. Means Employed Test - a strike ma'y be legal at its 'inception but eventually be itlegal if the strike is leclared accompanied by violence which is widespread, pervasive and adopted as a matter of policy and not merely violence which is sporadicwhich normallyoccur in a strike area. (See prohibited activities under Art. 264.\ Note: The 3 tests must concur. Noncompliance with any of the aforementioned requisitesrendersthe strike illegal. Good Faith Strike Doctrine - a strike may be consideredlegalwhere the union believedthat the company committed ULP and the circumstances warranted such belief in good faith, although subsequentlysuch allegations of ULP are found out as not true (Bacus v. Ople, GR N.9
116
Fan Fele 6otlegeof I^010 2011CENTRALIZED BAROPERATIONS

5. Declared in violation of an existing injundion; As a general rule, injunctioncannot be issued against the conduct of picketing except: a. Where picketingis carriedout through illegalmeans, b. Where picketing involves the use of violenceand other illegalacts c. Where injunctionbecomes necessary to protect the rights of third parties. Likewiseinjunctioncannotbe issued Note: Strikes or lockouts cannot be enjoined except when illegal acts are committed or if the strike or lockout appearsto be illegalin nature.
:-:r-rii!r'::ir'
When can the Secretary of Labor Assume Jurisdiction over a Strike ( Rj$rvl0iiru Vn4n() When there exists a labor dispute causing or likelyto causea strike or lockoutin an industry indisoensableto the national interest. The power of assumption of jurisdiction or certification by the Secretaryof Labor is in the natureof a policepower measure. The secretary of Labor may either: / [l'6';* jurisdiction and decideit, or 1. Assume 2. Certify the same to the NLRC for compulsory arbitration. * Note: A labor disputemay be assumedby the Secretaryor certifiedto the NLRC even before the actualstagingof a strike or a lockoutsince Article 263 of the Labor Code does not require the existenceof the strike but only of a labor disputeinvolving nationalinterest. Note: What constitutes "INDISPENSABLE INDUSTRY' is based upon the discretion of the Secretary of Labor. However, the Prgsident of the Philippines shall not be precluded'fromdetermi wh ich in ning i ndustries to the national his opinion are indispensable interest. Effects of the Assumption of Jurisdiction of the Secretary ENJOINSthc iNtCNdCd f 1. AUTOMATICALLY or impendingstrike or lockoutas specified orber; or certification in the assumlption 2. lf one has alreadytaken place at the time all strikingor or certification, of assumption shall employees locked-out RETURNTO WORK; ANd IMMEDIATELY 3.. The employer shall immediately resume ALL RE-ADMIT operations and WORKERS under the same terms and conditions prevailing before the strike or
t)
Strike in" violation of assumptionor certification order. Gontrary to an existing agreement, such as a no strike clause or conclusive arbitration clause. Note: The rightto strikeis not absolute. lt has heretofore beenheldthat a no-strike, provision no-lockout in the CBA is a valid stipulation atthough the clause may be invoked by an employer only when the strikeis economic in natureor one which is conductedto force wage or other concessions from the employer that are not mandated.to be grantedby the law itself(butnotULPcases).
a I !
8. Strike staged bya minority union. o Strike staged by a union which is not
legitimate 10. PrematureStrike-A strike is illegal if staged without giving the employer reasonable timeto consider andact on the demands madeby the union(Almedavs. ctR,96 Phit306) l ConversionDoctrine- Involves conversion of strikefrom economic to ULP,and vice versa. A strikeor lockout may startas an economic strikeor lockoutbut later on, because of the adtuation,:of\he'parties, the sameimay bi converted to an unfair labor practice(ULp) strike or lockout,or vice versa. Under this situation, the conversion doctrine shallapplyin whichcasethe requirements for the convertd strikellockout (to economic from ULp, or vice versa,as the casemaybe) shallbe observed. (See Conso/idatedl-abor Associa&bnof the Phils. Vs. Marsmanand Co., 11 SCRA 589, 5e3)
I I r
tr+uon {F-Kffi#qSF
Lt7

3. Secretary of Labormaysubsume pending labor casesbeforeLaborArbiters which are involvedin the disputeand decide even issuesfalling underthe exclusive jurisdiction and original of LaborArbiters such as the declaration of legality or illegalityof strike(lnt't pharmaceuticals v. Sec. of Labor,GR No. 92981-8, 3January 9, 19921. 4. Powerof Secretary of Labor is plenary and discretionary (Sf.Luke'sMedicalCenterv. Torres, GR No. 99395, June 29, 1993\. pay Entitlement to StrikeDuration GeneralRule:Strikers are notentifled to their wagesduringthe period of a strike,EVENlF THESTRIKE IS LEGAL. Reason:No wor( no pay,or a fairday'swage for a fairday'slabor Remedy: A worker who absents himself from work as a result of a strike, must seek reimbursement of his wages from his union whichdeclared the strike, OR he mighthave his absencefrom work chargedagainsthis unused vacation leaves Exceptions: 1. In caseof a ULPSTRIKE, in thediscretion of the authority deciding the case (See table for more distinction between Economic and ULp sfnke.) 2. Where the strikersVOLUNTARTLY AND UNCONDITIONALLY OFFERED TO RETURNTO WORK, but the emptoyer refusedto acceptthe offer (e.g "we witt return tonono$' and NAT "witting to returnprovided\. Note Theyare entifled to baclorrraged from the datethe offerwas made. 3. Where there is RETURN-TO-WORK ORDER and the employees are disciminatedagainst. Fff""t They are entifled to backwages fronithe datdof discrimination. 4. Where the employees did notparticipate in the strike but were practically loc(ed_out bythe employer. 5. Whenreinstatement is no longer possible. Rule on Reinstatement of Striking Workers emptoyeeslre entifled 9*fl"t Rule: Striking to reinstatement, regardless of whetheror not the strike was the consequericeof the employe/s ULP.
Third impede Reason: Because while out on strike. the strikersare not considered to have abandoned their employment, but ratherhave only ceased fromtheir labor. The declarationcrfa strike is nof a renuncidion of employmentrelation. Exceptions.' The folloving strikers are NOT entitled to reinstatement: 1. Union officers who knowinglyparticipate in an illegalstrike;and 2.' Any siriker/unionmembef who knowingly participatesin the commission of illegal acts duringthe strike. Note: Those union members pgg*[.qiped an illegalstrikebut have not committddaii! ittegal act shall be reinstated but without any backwages. Rules in Strikes in Hospitals 1. lt shall be the duty of strikingemployees or locking-out- employer to provide and Araintain an effective SKELETAL WORKFORCEof medicaland other health personnelfor the duration of the strike or lockout. 2. Secretary of Labor may immediately assurne jurisdidion within 24 hours lrom knowledge ofthe occurrenceof such strike or lock-outor certify it to the Commission for compulsory arbitration. ART.264: PROHIBITED ACTIVITIES Labor Organizations NO labor organization or employer shall declarea $rike or lockout 1. Without first having bargainedmllectively in accordancewith Tifle Vll of this Book
nrst *s$d#
or interfere
L18
5uu ffiels 6ol[egeof Lstn BAROPERATIONS 2011CENTRALIZED

1. Any peaceful picketingby employees during any labor controversy or in the or exercise of the rightof self-organization collective bargaining, or or 2. Shall aid or abet such obstruction interference. Employers NO employershall use or employ any nor shall any personbe / STRIKE-BREAKER as a strikebreaker. ( employed
\-r c.lr.or' FIN(
n Ur
rj rJ
PublicOfficialor Employee NO public official or employee,including officersand personnelof the New Armed Forces of the Philippines or the Integrated National Police, or armedpersons: 1. Shall diiiff',ff4jintroduce or escort in any manner,(a scab or) any,individual who seeks to replaceslrikersin enteringor leavingthe prernises of a strikearea,or workin placeof the strikers, Scab - is an employee who refuses to join a strike or a union memberwho refuseto strike or who returnsto work before a.strike is ended or settled. 2. The police force shall keep out of the picketlinesunless actual violence or other criminal actsoccur therein: .thatnothing PROVIDED, herein shill be interpretedto preventany public officers fromtakinganymeasure necessary to: peace a. Maintain andorder; b. Protectlife and property; andlor c. Enforce the law andlegalorder. Persons Engagedin Picketing NO person engaged in picketing shall: 1. Commitany act of violence,'coercion' or intimidation; or 2. Obstruct the free ingress to or egressfrom the employeis premises for laMul purposes; or' 3. Obstrudpublic thoroughfares. . . ; ; 'oifian#l 'or Rirlri ?on o}-Asiumpt'rbn CertificationOrder or Return-to-Work Order pursuant thereto issued by the DOLE Secretaryor'the NLRG Generat Rule: Non-compliance with the assumption or certification order of the Secretary of Labor and Employment, or a return-to-wprk order issued pursuantthereto by the Secretaryof Labor or by NLRC, to whicha labordisputeis certified, [s considered an illegalact committed in the courseof the slrikeor lockout.
of strikers, Effect In case of non-compliance disciplinary immediate to they may be subject action, including dismissal or loss of employment status and even to criminal prosecution. (San Juan De Dios Education Foundation Employees union-AFW vs. San Juan De Dios Foundation lnc, G.R. NO' 143341,Ma 28, 2004). Moreover,the strike becomes illegal because of the disregard of the return-to-work order issued by the Secretary (Jnion of Filipro Employees us Nesf/e Pirlls., G.R. A/O. 88710, Dec 19, 1990) *( Rule on Hiring of RePlacements The hiring of replacementsfor the stnkers during a strike is NOT an unfair labor practice act of the employer.Such hiring may even be done on a permanent basis in case of an economic strike. An employer is entitled to carry out his business.But in an unfair labor may noi be practicestrike, such replacements permanentlyemployed.In case of defianceof a return-to-work order, or a certificatlon or assumptionorder, a hearingis not requiredfor to validly hire replacementfor tne employerworkerswho committedthe defiance. Liability of Persons Committing Prohibited Acts under Art. 264:Any personviolatingany of the provisionsof AtL264 shall be punished by a fine of not less than Pl,000.00 nor more for not than P10.000.00and/or imprisonment less than 3 months nor more than 3 years or both at the discretionof the court. lf the person so convicted is a foreigner' he shall be subjectedto immediate summary deportation and will be permanently barred from reentering the country without the special permissionof the Presidentof the Philippines. lf the act at the same tirne is a violation of the Revised Penal Code, a prosecutionunder the
same act und versa,
union offer, retum
Reduced
conductedby
referendum of the purpose
t19
LABORLAW LABORRELATIONS determining whether or not the reduced offer of the union is acceptable to the board of directors, trustees or partners. Whenat leasta majority of the boardof directors or trustees or the partners holding the controlling interest in the partnership, vote to acceptthe reduced offer,the workers shallimmediately returnto worf the employer shall thereupon .gnd readmit themuponsigning oftheagreement.
TITLE ONE. TERMINATION OF EMPLOYMENT ART.279: SECURITY OF TENURE Securityof Tenure- the constitutional right granted the employee, thatthe employer shall not terminate the servicesof an employee exceptfor just causeor when authorized by law.lt extends to regular (pergranent) as well as non-regular (temporary) employment (Kiamcov. NLRC,GR No. 129449, June 29. 1ege) Note: Security of tenureclauseiqno.$ggnfined to casesof termination of employef:employee relationship alone.lt is alsointended,to shield workersfrom unwarranted and unconsented DEMOTION andTRANSFER. ReliefsAvailableto an lllegallyDismissed Employee 1. Reinstatement; ancl/or 2. Payment of baclarrlages. - restoration Reinstatement of the employee to the state from which he has beenunjusily removed or separated withoutlossof seniority rightsandotherprivileges. Formsof Reinstatement 1. Actual or PhysicalReinstatement - the employee shallbe admitted backto work. - the employee 2. PayrollReinstatement is merely reinstated in the payroll. What ls the Effect of the Reversatof Labor Arbitels Decision to the Reinstated
Employee? lf the
1. To determine1. To determinewhether whether or not the or not the lmproved improved ofGr of the d tfie UNION is EMPLOYER is acceptable to board, acceptable to the union trustees and parhers. members. 2. To ascertain the real 2. To ascertain the real sentimentof the silent sentimentof the silent majonty of the union m4onty of the union members on sffike. members on stike.
On or before the 30b On or before the 30n dav day of the strike. of the lockout
ART.266:ARREST ANDDETENTTON GeneralRule:A police officer cannot arrest or oetarna union memberfor union activities Wthout previous consultationswith the Secretary of Labor. Except on grounds of: 1. National securitv: 2. Public peace, and 3. Commission of a crime. An arrest can be laMully made in the following cases: a. Any person who obstructs the free and lawful ingress and egress from ine employeispremises or who ohstructs . pubticthoroughfares. b. Any person who shall have in his possession deadly weapons in . - viotatiol.ol B:p. Bt9.:g ancj Rrearms and.explosives(Guideiines for the condud of pNp/AFp personnel in Labor Disputes)
ha$S*l 8S&g
is later that the then
actual refund 33,
the the is for need of 142732-
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BAR9PE!AT|eNS 2011 CENTRALIZED

of,,a Mav A Court Order fhe Reinstatement of the
to the employers 2. That it would be inimical

J.
#iltJE; "C;;i;t
YES. So long the court illegallvdismissed' ;;i";;'iva"s employee an of oio"t the reinstatement a prayer include not does ""ti iomptaint ;;;"j;ih"
tf thePrayer Even ptoy"'" ef? ch Reti s u de u ct I n it rt Jii' N as tnere is a findingthat the
( 6 7
interest; befeasibte; mayno.tonoer Reinstatement or the interest besi the *rve ii;ll';;i parties involved; the will be Preiudiced bY iil;;;;
tl? unless' ioi"rein=tatembnt, 9f. rrg''tnls"o1lll:
- :: emptoyee has waived .*ho -': i"i'i"tj'tlt"nt. By law, an employee to reinstatement' is entitled Oi"rnisseb u-niu"tfv that the
and PurPose; -^ fl}ilXT,Tl)L" Pruoent relations strained resultant il"irh;;;;" a
lawsand jurisprudence' Note: Underpresent in fourwaYs: viewed be pay may ^^, ."-*irtion rssar ract i i n mere rhe ment llegaldism ;iffi; ;idt. "il ii;; li'reinslate i: ' will ordered is *n"'" the emPlofed is nor ilripi"ini-oio not prayfor reinstatemerrt ;;; reinstatement but ,b--"""1"-: iii'" pt"iuoi." the' employee' iJtti"t"o i"lnnii"iiti"" of law and procedut"-:t: feasible; (Phe1c.n'e11 i'i:3-: proceedings oblisation in labor stalutory upon
iio*n"J GRNo' 1161158' vr4tdaez' );;;ib;'rl 9, 2O05) MaY if there is an ordgr-oj happens What 'iiiittii"tr{irt is no tonger btttthe position
available? The employee should be S-'v^91. ^-"
-r"s"r 2. '' n.'liliiov"r"
due to' authorlzeo termination 284: and 283 Art' "i - -:^, Iru"-u1-rno"t an act3f:?::l as assistance' 3. ;ilffiil of legaldismtssat
andevenln case iustice under4rf.2SZ or Deneflt Slfll* in CBA 4. As employment (Poqulz'2006) PolicY "o*-P*V
PostTloN' EouIvALENT suisrnrtrTu(LLY p-"-='1:",1,-'t

equivalent ;- NO' suOstantiatty . not be ordereo should reinstatement available,
tf-':f eJkwages ;il1,1;f: . 1 *slt":*?ra: tor,tosr him. to compensate
ffift;
io do the imPossible ;;;t;' " ll -1Y.:n, shouldmerelyDe the employee sitJati6n, i'i"*' srpnpnrror'r PAYconsistilq -of,:.|"
31, 1989)
in erfect wouro inai"?Iq:J^'thu
orservice-(t1)' Y""iiinZiii'r* 'iiriiii"i-trti ""ry vear No 83523' on tnc"v''tu' 'August

Doctrineof StrainedRelations can no longertrust the fr]l*t-in" employer or there were vice-versa' and !tpi"vt" each other' to itti"t-r:ti"." of bad faith serve.asa effedively not t"ii"i"t""'"nt could to only posrtions applies T# doctrine il;y. 'iiiin'rrq,i'" confid'ence' aid trust -(GIobe 'iiiii"iJ.
i["o"' illega presupposes lt l-1î'i^t^"Î"" of his dismrssal' oeriod termination' of the illegalty to bact<wages Note:Entitlement law from rlows ive:{'1e employee dismissed
il"iJ;;k
it, it t"v begivenior. ll" r,?'l^:"
toclaimbaclovages.n'[riu"o'pt"intforil|ega l?ry" S::h is a mer"'piocedural dismissal
;";;;i- dereat ?",nilln,3ii"'i,0,*;i!o? law'

substantive
i;ffi;*
1s 4' 2001) io' rtbiao'December
3' March t'tnc. GR No' 82511'
1e92). the Under the circumstances where so has relationship. .become,' Jmpfoyt"nt workin$
sA?i |3##e
{arqnoniorlg f,iln iO. rto*'pr"d,r5e..'" lltt ' nbpes at -"ni=-1i"i'relationship, it reinstatement'
are nil after reconciliation accord the would be more beneficial to pay' andseparation backwages "tpfoy"" SeparationPay In Lieu of Reinstatement trom an ittegaldismissalwierein Proceeds' cannotbe carried ieiniiatementis ordered'but cases: as in the following ;rt 'H.init"t"tn"nt clnnot be effected!n view ;. of of the long p"""'g" oJtime or because situation; the of the rbalities
LZ].
2. Vacation or service incentive leave and sick leave;and 3. 13* month pay. Note: Facilities such as uniforms, shoes, helmetsand ponchosshould NOT be included in the computation of backwages. Reason: said items are given free, to be used only during officialtour of duty not for private or personaluse. Note: The award of backwages is computed on the basis.of a 30-day month (JAM Trans Co. v. Flores, GR No. L-68555, March 19,
1egs).
Restores the employee Allows the same whg was unjustlyemployee to recover from dismissed to the positionthe employer that which from which he was he had lost by way oi removed i.e. to hb statuswages as a resuft of his quoantedismbsal. dbmissal. The awardof reinstatement is not inconsbtent with the awardof bac-kwages.
in Conflids Arising WhichTakesPrecedence ployer'sMan agementPrerogative BetweenEm and the Employees'Right to Secuity of tenure? right to security of tenure. The employee's prerogative management Thus,an employer's the seMcesof the rightto terminate includes the employee but this management prerogative by the LaborCodewhich is limited provides an can terminate that the employer employee ONLY FOR A JUST CAUSEOR BY LAW.Thislimitation WHENAUTHORIZED is becauseno less than the Constitution rightto emplofee's recognizes andguarantees securityof tenure(Aft. 279, Labor Code;Aft. Xlll, Sec.3, Constitution)
---- --ri:li:** REGULAR AND CASUAL,.. ART. 280: EM'LO'MENT under Aft. 280 Four Kindsof Employees 1. Regular employment employment 2. Casual employment 3. Project employment 4. Seasonal Otherforms of employmentunder BooRVI Employment 5. Fixed-Period 6. Probationary Employment 1. Regular Employmentarrangementwhere the employee: a. Has been engaged to Perform which are usuallynecessary activities or in the usualbusiness or desirable or tradeof the emPloYer; at leastone (1) yearof b. Has rendered service, whether such service is or broken,with respectto continuous in whichhe is employed. theactivity
Separation pay b paid Backwages b paid for reinstatement b no the compensation which possible. otherwisethe
should have earned had he not .been illegally dismissed.
employee'slength
Computed tromthe time of illegaldismissal up to 'reinstatement.or reinstatementb no longerpossble,untilthe

of the decision.
Paid as a wherewithal Paid for the loss assistance during the eamings during the period between illegal that an employee
dismissal reinstatement. and
oetwe6SAdtiffiffi*ftivity
b not inconsistent pay. separation
Monetary awards to illegally dismissed OFWs. OFWsare not entitled to reliefsunderArt 27g of the LaborCode.This is so because OFWs are contractual employees whose rights and obligations are governed primarity by the Rulesand Regulations of the pOEA.
at the to the
the
L22
of aab 5sn Bebo@otlege BAROPERATIONS 2011CEI.ITRALIZED

b. Period of Serv'ce Iest-Whether or not the employee has rendered at least one year of service. An employee, who is allowedto work for at least one year, whether the same is continuous or broken,shall be consideredregular employee. c. Probationary Employme;nt lesfWhether or not he employee is allowed to work after the lapse of the probationary period.An employee who is allowed to work after the lapse of .the probationary period shall be considereda regularemployee. tjasual Employment Employment ,arrangement where an employee is effga(ied to perform activities which are not necessaryor desirable in the usual trade or business of the employer. a. The status of regular empoy4ent attachesto the casual employeewho year of ' has rendered at least one (1) service, whether such service is continuousor broken,with respect to the activi$ in which he is employed and his employmentshall continue while such activityexists. b. A casual employee is only casual for one year, and it is the passageof time that gives him a regular status (KASAMMA-CCO v. CA, GR No. 159828,April 19,2006\ Purpose: to give meaning to the constitutional guarantees of security of tenure and right to self-organization (Mercado v. NLRC, GR No. 79869, September 5, 1991). Project Employment Employment has been flxed for a specific project or undertaking,the completion or terminationof which has been determined at the time of engagement of the employee.
\ WhEie '- the'-;mploytit:ht ' bf i piojec't employeesis extendedlong after the suppced projecthas been finished, the employees are removed fromthe scopeof project employees and considered regular \ employees. ^t.., -
2. The tasks performed by the alleged project employeeare vital, necessary and indisPensable to the usual or tradeof the emPloYer. business r PROJECT has reference to a job or undertaking that may particular or may not be within the regular or usual businessof employer.In either case, the Project must be distinct, separate and identifiable from the main businessof the employerand its dufation must ber determined or determinable. Note: Members of a work Pool from which a constructioncompany draws its project employees, if considered emPloYees of the construction company while in the work Pool' are non-projectemployees ci employees for an indefinite period. lf they are employed in a particular project, the completionof the projector any phase thereof will not mean severanceof EE relationship. UNLESS,the workersin the work Pool are free to leave anY time and offer their servicesto other employers'(L' L Datu & Co., Inc. v. NLRC, GR No' 113162,February9, 1996r' Note: Project emPloYees are . not regular emPloYees, their serylces being needed onlY when there are projectsto be undertaken. Requirements: (Policy lnstrudion No' 20 and D.O. No. f 9. Seriesof 1997) a. Specific project phase thereof stated
As
ale
When may a project employeebecome a regularemployee? 1. Thereis continuous rehiring of project evenafterthe cessation employees of a projecd for the sametasksor nature oftasks:and
or
whichare
specified
for that engaged
123
LABORLAW LABORRELATIONS Entitlement to Separation Pay General Rule: Projectemployees are NOT entitled to separation pay if they are terminated as a resultof the completion of the projector any phasethereofin which they havebeenemployed. Exception:if the projects theyareworking on have not yet been completed when their servicesare terminated; projectemployees alsoenjoysecurity of tenure during the limited time of their employment. (De Ocampov. NLRC, GRNo.81077, June6, 1990) 4. Seasonal Employment Employment arrangementwhere an employeeis engaged to work during a particular seasonon an activitythat is usually necessary or desirable in the usua. business or tradeof theemployer. During off-season, the relationship of employer and employee is not severed; the seasonal employee is merely considercdon leave of absence without pay. When are seasonal employees considered as regularemployees? 1. Whenthereis reasonable connection between the particular activity performed by the employee in relation to the usualtradeor business of the employer; and 2. Seasonal workers who are repeatedly engagedto performthe same tasks for more than one season. (See Hacienda Fatima ys. Nationat Federation of Sugarcane WorkersFood and General Trade G.R. NO. 14944, 28 Jan 2003) Note: One-year durationon the job is pertinentin decidingwhethera casual employee hasbecome regular or not,but it is NOT pertinentto a seasonalor projectemployee. Passage of time does not make a seasonal workerregularor ' I , :Perffianent i(Mercadon pq6,.:cR l/o. 79869,September 5, 1991). Whenthe business establishment is sold which effectively. terminates the employment of the seasonal employees, t the latterwouldbe entifled to separation pay5. Temporary or Fixed-Period Employment Employment arrangementwhere an employee is engaged to workon a specific projector undertaking which is psually necessaryor desirable in the usuAl business the or trade of the employer, completion of whichhas beendetermined of the at the time of the engagement employee. doesnot become A flxed-period employee a regular employee because his witha specific employment is co-terminus period of time. Reason for validity of fixed-period employment Freedoin of parties to thereof contract so longas the stipulations are not contraryto law, morals, good public policy order andpublic customs, .,. ,, followthat Note: lt does not necessarily consist wherethe dutiesof the employee or desirable of activities necessary usually the of the employer, in the usualbusiness 'parties on a from agreeing are forbidden period of such of timefor the performance activities. There is nothingcontradictory bEtween"a definiteperiodof employment duties. and the natureof the employee's (See Pangilinan vs. General Milling Corporation, G.R. No. 149329, 12 July 2W4). cases,workers in the following However, wereconsidered employed for a fixed-term as regular employees: to work were allowed a. The employees without the beyondthe fixed-term benefitof a new contract(Viemesvs. APr 2049;' G.R. No.108405,4 NLRC, were allowedto work b. The employees for morethanone Yearandthereis a betweenthe connection reasonable particularactivity performed by the the usual
F#lldszza, 1
ol
isa the the usual

lnc.
7, 14
The
knowingly
124
d{.tr Ssn ffebs @ottege BAROPERATIONS 2011CENTRALIZED

the partieswithoutany force,duress,or pressure beingbrought to bear improper and absent any other uponthe employee or vitiating circumstances hisconsent; appears that the employer 2. lt satisfactorily andthe employee dealtwitheachotheron more or less equaltermswith no moral by the formeror the exercised dominance GR No. Llatler (BrentSchoo/v.'Zamora, 5, 1990). 4U94, February is Employment General Rule: Fixed-Period valid so long as the criteriaabovementioned with. arecomplied Exception: While the SupremeCourt has employment, of flxed-term upheldthe legality it is apparent wherefrom the circumstances that the periods have been imposed to preclude of tenureby of security acquisition they shouldbe struckdownor the empioyee, (See to publicpolicy. as contrary disregarded Manila Water Co. lnc. vs. Pena. G.R. No. 158255,8 July 2004; Magsalinvs. National Arganization of Working Men, G.R. No. 14U92, 9 May 2003) SpecialGroupsof Employees 1. OFWs and Seafarers cannot be Their as regularemployees. considered by the contracts is governed employment and tireysign everytime they are rehired when the is terminated their employrnent is contract expires. Their ernployment period of time. fixedfor a cerlain z- For a privateschoolteacherto acquire permanentstatus in employment, the must concur:(1) the followingrequisites teacher is a full:timeteacher;(2) the teacher must have rendered three yearsof service; and (3) such consecutive service must have been satisfactory. (Spouses Alwyn Ong Lim and Evelyn Lukang'Um Vs, LegazpiHope Christian March31, Schoo/, et al., G.R. No. 172818, 2009.) is the The employmentof househelpers onlv kind in the LaborCde wherea fixed tein i|t;gpnEssly\PRo vtDED; FoR. Under Ad. 142 of the LaborCode,the shall contrac-t for domestic service original renewable for not last morethan 2 years, as .maybe agreedupon by such periods the partiesand subjectto reviewevery3 years the withthe endin viewof improving thereof. termsandconditions Piece-rateworkersmay attainregulaity of by the pieceis just Payment employment. and does not a methodof compensation For of compensation. definethe essence (1) piece rate workersto be regularized:
their work must be necessaryor desirat[e in the usual businessof the employer,(2) they worked for lhe employerthroughout the year, their employment not being dependenton a specific projector season, and (3) they worked for more than one year. EMPLOYMENT ART. 281: PROBATIONARY Probationary EmPloYment Exists where the emPloYee, upon nls engagementis made to und;:rgoa trial period during which the employer determinesnls based fitnesl to qualifyfor regularemployment standards made known to him on reasonable at the time of his engagement. Note: ln all cases piobationaryemployment, the employer shall make kncurn to the the standardsunde:'which he will employee quatityas a regularemployeeat the time of his engagement.Where no standards are maoe fn6w-nto the employeeat that time, he should as a regularemployee' be*regarded Characteristics of ProbationarY Employrnent 'lt for a trial period; is an employment 1. 2. lt is a temporary employmentstatus prlor emPloYment; to regular 3. lt aiises through a contract with the followingelements: a. ThJemployee must learn and work at of work; a ParticulartYPe b. Such work calls for a certain qualificationsi is fixed c. The Probation d. The employer reserves the power to terminateduring or at the end of the trial Period;and
by
t25
LABORLAW LABOR RELATIONS

period set for Example: The probationary professors, instructors and teachersis three (3) consecutiveyears of satisfactoryseNice pursuant to DOLE Manual for of Regulations Private Schools. Extension of Probation The employer and employee may extendby agreement the probationary period of employment beyond six (6) months. Note: By voluntarilyagreeingto such an extension, the employee waivedany benefit attaching to the completion of the period if he stillfailedto makethe gradeduring the period of extension(MariwasaMfg., lnc. v. Hon. Leogardo, GRNo. 74246, January26, 1989). Double or Successive Probation NOT Allowed The evil sought to be preventedis to discourage schemingemployers from using probation the systemof doubleor successiye to circumvent the mandateof the law on regularization and makeit easierfor themto dismiss their employees (Holiday tnn Manilav. NIRC, GRNo. 109114, 14,1993). September Termination of Probationary Employment Probationary employees are protected by the SECURITY OF TENUREorovision of the ConstitrJtion. ' HOWEVER, a probationary employee maybe terminated at anytime before the expiration of periodon fwo (2)grounds: the probationary 1. Justcause; and 2. Failure to meet the standards for qualifications for a regular employment. Note:Theprobationary employee is entiiled to PROCEDURAL DUE PROCESS orior to dismissal fromthe service. The power of the employer to terminate probationary employeesis suhject to the following limitations: First,this powermustbe exeros-gdin . accordanaewithr..the, specific requirementsof the contrad.'Seccind, the dissatisfaction on the part of the employer mustbe realand in goodfaith,notfeigned so as to circumvent the contract or the larrrr. Third, theremusltE no unlaMul discrimination in the dismissal.(Davao ContradorsDevelopment Cooperative (DACODECO) ys. Marityn A. Pasawa, G.R.No. 172174, Juty9, 2009) Llmitationsto Terminationof Probation 1. The employels power to terminatea probationary employment contract mustbe
exercisedin accordancewith the specific requirementsof the contract; 2. lf a particular time is prescribed, the termination must be within such time and if formal notice is required,then that form must be used; 3. The employer's dissafisfactionmust be real and in good faith, not feigned so as to the contractor the law and circumvent 4. There must be no unlavtful discimination in the dismissal. Regular Status after ProbaticinargPeriod lf the probationary employee is allowed to work beyond the period of 6 months or the agreed probationary period, said employee becomesa regular employee by operation of law BY EMPLOYER ART.282: TERMINATION Gurdelines to Determine the Validity of Termination: 1. Gravity of the offense; by the employee, 2. Position occ-upied 3. Degreeof damageto the emPloYer' 4. Previous infractionsof the same offense; and 5. Lengthof service. Totality of Infractions Doctrine It is the totality, not the compartmentalization that the employeehad of companyinfractions consistently committed, wttich justifies the penaltyof dismissal(e.9. number of violations committedduring the period of employment). (Manita Eledic Company v. NLRC, GR No. 114129,October24, 1996) Just Causes 1. Serious Misconduct MISCONDUCThas been defined as the transgression of some established and
"i;l''4r'i#
[,"tffis# #ffr l-J\w
126
d Aeto Sun Gebc@otlegt BAR 2O1ICENTRALIZED OPERATIONS

Examples: harassment a. Sexual premises Wthincompany b. Fighting c. Uttering obscene, insulting or a superior wordsagainst offe.nsive oftimerecords d. Falsification immorality e. Gross or Insubordination Willful Disobedience Requisites has conduct assailed a. The employee's been wilfful or intentional, the by a being characterized willfulness "wrongfuland perverse attitude";and been: musthave violated b. Theorder andlawful, i. Reasonable ii. Madeknownto the employee;
iii. and ln connection to the duties which he had been engagedto discharge (Acesite CorPoration, et. al v. NLRC, GR No. 152308, January 26, 2005). No. GR NLRC, 14' 1995) SePtember 110388'
Note: The filing of the complaint for illegal dismissal (with a prayer .for with the reinSatement)is inconsistent charge of abandonment(Kams lnt'l' lnc. v. NLRC. GR No' 128U6' Se1tember28, 1999)' HOWEVER, the rule has no application where the complainant dobs not PraY tor ginstatement and asks for separationpay instead' (Jo' et. al v. NLRC, GR No' 121605' February2,2000).
4. Fraud or Willful Breach of Trust Fraud or dolo - consistsin the conscious and intentional propositionto evade the normal fulfillment of an obiigation Commission of fraud bY an emPtoYee result againstthe employerwill necessarily confidencein and trust of lost irithe.latter's * the former. Requisites for Fraud: a. Fraud must be committed AGAINST the employer or his representative; and with the employee's b. lN CONNECTION work (DePartment of Labor Manual' Sec. 4s53.01[3]). ExamPles 1. falsificationof time cards 2. theft of comPanyProperty 3. unauthorizeduse of vehicltil Willful Breach of Trust - Breach of trust or confidencemust be willful' A breach is
Note: There is no law that comPels an employee to accept a promotion for the reasonthat a promotionis in the nature of a gift or reward,which a person has the right to refuse.Hence, the exerciseby the employee of the right to refuse a promotioncannot be consideredin law as or willful disobedienceof insubordination, a laMul order of the emPloYet (PT&T Corp. v. CA, September 29, 2a0Q. Gross and Habitual Neglectof Duties In order to constitutea just cause for the duties employee'sdismissil, the neglec{,of MUST NOT ONLY BE GROSSBUT ALSO HAB1TUAL. o Gross nqlect means an absence of that diligence that an ordinarilY prudent man would use in his own atfairs (Depaftment of Labor Manual, Sec. 4343.01[27]). o Habitual .nqlect implies repeated failure to perform.one'sduties over'a
#gh$rbttSFHHtPloYer
{*il -:i$ir [-&1*V
7, March GRNo.10939, lnc.v. NLRC, 1ee6).
(ependingupon the ' (JGB and'AsSodiateq
Formsof Nqled of Duty a. Habitual tardiness andabsenteeism; b. Abandonment i. Failure to report for work or absence without validor justifiable reason; ii. Clear intentionts sever Er-Ee by being manifested relationship some overt acts. (Laboret., al. v.
L27
LABORLAW RELATIONS LABOR

d. Must be genuine, not a mere afterthought to justify earlier action taken in bad faith:and e. The emPloYee involved holds a Positionoftrust and confidence. Note: Generally, employersare allowed wider latitude of discretionin terminating the employmentof managerialpersonnel or those who, while not of similar ranK, perform functions which by their nature iequire the employer's full trust ?nd confidence. (Coca-Cola Bottlersv. NLRC' GR No. 825W, APril25, 1989) 5. Commission of a Crime or Offense Refers to an offense by the employee ' r.:i"'altainst the prson of his employeror any immediatememberof his familyor his duly authorized representative and thus, the conviction of a crime invoiving moral turpitude is not analogousthereto as the element of relationto his work or to his employeris lacking. Note: The CONVICTIONof an employee in a criminal case is NOT necessaryto warrant his dismissalby his employer. 6. Analogous Causes Must be due to the voluntary and/or wiltful act or omission of the employee (Nadura v. Benguet Consolidated, GR No. L17780, August 24, 1962). Examples a. Violation of company rules and regulations b. Drunkenness c. Gross inefficiency d. lllegallydivertingemployeis products Other Just Causes Recognized under Other provisions of the Labor Code in participate 1. Union officerswho knowingly an illegalstrike. 2. Any employee, union officer or mere ' in the ;. ffiembet,yvhgkncningly parti.cipates commi#ibn of illegal ads during' a strike. 3. Strikers who violate orders, prohibitions and/or injunctions as are issued by the or the Secretaryof Laborand Employment NLRC. 4. Molation of union s'ecurity clause stipulated in the CBA pursuant to Art 24.8[eJ. . Doctrine of Incompatitritity Where the employeehas done somethingthat is contrary or incompatible with the faithful performanceof his duties, his employerhas a
hls 9mpl.oy.T9nt just cause for terminating '(Manila Motor v. Bachrach Chauffels League 40 o.G. 159lr. Co., Due Process to be observed bY the-, employer shall of due process in" foifo*ng standards observedfor terminationof Oe substantially onjustcauses: based employment 1. Notice(TwinNoticeRule)-the employer who is to furnishan employ-ee is requiied to be dismissedwith two P) written suchtermination: before notices a. Pre'Notice- a written notice served on the emPloYee sPecifYing the and for termination, ground or grounds reasonable emPloYee liUng to laid his withinwhichto explain 6pportunity side; b. Posf-Nofice - a written notice of terminaiionseryed on tfre employee that upondue considcration indicating grounds nave of allthe circumstances, juSifY to established heen -li" (whichcomesonly after terminaiion. is given reasonable the emPloYee period fromreceiptof the first notice.to 2 see requirement the charge, answer v. NLRC'GR No' below)(PePsi-Cola 10' 1992) 909A, February - a hearingor 2. Hearingor Gonference which during held be should confere-nce ' the emPloYee concemed, with the so of counsel,if the employee assistance to desires, is given the oppot'tunity resPond to the charge, Present .fti: presented or rebutthe evidence evidence against him (Lavador v. "J"'Marketing and Soyao' GR No' 157757' Clorparation June 28, 2005).
728
ofAeb Ssn SeDs@ollege BAROPERATIONS 2011CENIRALIZED

tnc. v. NLRC, GR No. 89876, November 13,
1se2).
Note: In Agabon v. NLRC, GR No. 158693, Nov. 17, 20M, when dismissal is for just or authorized cause but due process was not observed, the dismissal should be upheld. However, the employershould be held liable for non-compliance with the procedural of due process(t.e.damages). requirements The above rulingwas modifiedby JAKA Food Processing v. Pacot, GR No. 151378, March 28,2005: 1. lf based on a just cause (Art. 282) but the employerfailed to comply with the notice requirement,the sanction to be imposed upon him shouldbe temperedbecausethe dismissal processwas, in effect, initiated by an act imputaHeto the employee;and 2. lf based on an authorizedcause (Art. 283) but the employerfailed to complywith the the sanctionshould be notice requirement, sfiffer because the dismissal process was initiatedby the employer'sexercise of his managementprerogative. The ruling in the JAM case was also modified in lndustrial Timber Corp., et. al. vs. Ababan, et. al., GR No. 164518,March 30,2O06. This case subdividedthe dismissal for authorized causes into 1) due to lossesand 2) not due to cause that terminates losses. lf the authorized employmentarisdsfrom losses,the penaltyto the employer who disregarded due process cause has may be lighterthan if the ai:thorized no relationto losses. The Court also mentioned other fad,ors to ansider tn assessing the penalty to the employer such as: 1. The authorized cause invoked, whether retrenchment or cessation of operati.on due to serious business losses;
1. However,when there is a companypolicyor a CBA provisionmandatingpaymentof wages during said 3O-days preventive such paymentshall be F.d?, sus.-pension, should not last for suspension 2. Preventive more than thirty (30) days' The employee should be mad'eto resume his work after 30 daYs. 3. However, the same can be extended orovided the emPloYer PaYS the suspendedemployeehis wages and other benefits. 8: Note: Afterthe lapse of the 3Gday period'the employer is required to reinstate the lf the employer decides to extend "t'pfoy"". the' period of preventive suspensions for iustiniOtereasons,he is obligatddto pay the and other benefits due to the "r"g"" worker. suspended Offers to reinstate the worker made after the could nfingof a complaintfor illegal dism.issal "va issal' ism d a rbitrary otherwise an not tiOate for Termination : Requirements 'substantive Due Process-The employer 1. shall not terminate the services of an employeeexceptfor a just calse (Art 282) or when authorizedby law (Arts' 283 and 284). When there is no showingof a clear' valid and legal causefor the terminationof the law considersthe case a employment, matter of illegaldismissal' 2. ProceduralDue Process a. For terminationbased on just causes under Art. 282' Procedural due with the Process means comPliance following: i. A written notice (first notice) emPloYee the on served ground for specifYing the
to be awarded; of employees 2. The number ofthe employer, capacity 3. Thefinancial grantof othertermination 4. The employer's and benefits; 5. Wtrethefthele w3s a{ona fide attemSto as compli'wlth' the' notice requirement to givingno noticeat all. opposed Suspension Prevqntive underpreventlve maybe placed An employee suspension,if his continued employment posesa seriousand imminent threatto life or lt or his Co-workers. propertyof the employer period of 30 dqys, shall be for a ma><imum during which period the employeeplaced is not entitledto suspension underpreventive anywages.
of so ,to his
the due the have
justrfy his
t29
LAW LABOR LABOR RELATIONS

b. For termination based on authorized cause under Arfs 283 and 284, compliance with procedural due process which means service of a written notice to the employee AND the appropriateRegionalOffice of the DOLE at least 30 days before the effectivity of the termination, specifyingthe ground or grounds for termination. c. For termination based on completion of contract or phase thereof- No prior noticeis required d. For termination of probationary employmentbased on failure to meet . the standards of employment-written '- notice must be served to the employee concrned within a reasonable time from the effective date of the termination. Instances when hearing is not required: a. Admissionof guift by employee b. Termination due to authorized causes
d.
A
(Belated Due Process Rule or the Wenphil Doctrine). (See Nofe under Degree of Proof) 5. Termination for non-existent cause lllegal. The employeewho was dismissed based on a non-existent cause should be reinstatedto his former position,or if not possible, to a substantially equivalent position. Termination without a cdllse-lt is the intention of the employer to dismiss his employee for a cause whatsoever, only that there was really no cause, hence,the dismissalis illegal. Termination for a non-exisfenf cause-The employer does not intend to dismiss the employee brft the dismissal was effected nonethelessfor a specific cause which turns out to be non-existent. 6 C5ses when there is no evidence of dismissal (e.9. when employer did not dismiss his employees,and the latter did not abandon their employment).Remedy is reinstatementbut without backwages (See Asia Fancy Plywood Corp. vs. NLRC, G.R. No. 113099,20Jan 1999)
f.
Y.
h.
i J.
K.
t_
m. n.
under Art 283 Termination dueto disease underfut.2A4 Resignation bythe employee Termination after 6 monthsof bona-fide suspension of operation Termination due to expiration of flxedperiod employment. Termination of casual employment Termination dueto completion of prqectin projecternployment. Termination due to lapse of season in caseof seasonal employment. Termination due to expiration of period of probationary employment Termination due to expiration of tenure macle coterminous withlease Termination due to expiration of contractual employment. Termination dueabandonment Termination dueto closure or stoppage of work by government authorities.
Suspension of Effects of Termination The Secretary of Labor may suspend the effectsof the terminailonpendingresolutionof the case in the event ol a prima faae finding by the appropriate official of the Departmentof Labor and Employment before whom the disputeis pendingthat 1. The terminationmay cluse a seriouslabor dispute. 2. The terminationis in implementation of a
Six Situationsin Termination Disputes jugt.cqus; hedismissa! underArt. J.-,,., is,for.? 'fortan 282, authorized cause under Art 283 or for health reasonunder Art 2g4. - Legat. was observed - 3ld due process 2. The dismissalis without just or auth6rized cause but due processwas observed_ lllegat. 3. The dismissal just or authorized is without cause and there was no due process_ lllegal. 4. The dismissalis for a just or authorized causebut due process was not observed 7 legal but emptoyer is tiabte to pay indemnity in theform of nomind aamages
fFffi""':W
t.
of of
iS
2.
saung
a costby
'130
San Felu @otleged {^ffi BAR OPERATIONS 2011 CENTRALIZED

precluded from adopting a new policy conducive to a more economical and effective management,and the law does not require that the employer should be suffering financial losses before he can terminatethe services of the employeeon redundancY (Dole the ground of lnc., et. alv. NLRC,et. al). Philippines, 3. Retrenchment(Downsizing) a. reductionof personnelusually due to poor financial returns so as to cut down on costs of operationsin terms of salaries and. wages to Prevent bankruptcyof the comPanY; b. linked with losses, it is a cost-cutting necessary measuremade immediately by business reductionor reverses.. +:.,:;..i...*: Note: The phrase "TO PREVENT LOSSES' means that retrenchment or termination from the service of sorne employeesis authorizedto be undertaken by the employer sometime before the losses anticipated are actually sustained or realized. Evidently,actual losses need (Caiucom not set in prior to retrenchment Vllv. TPI PhilippinesCement Corporation, et. al, GR No. 149@0, February 11. 2005). an(' There is NO need for investigation hearing before an employee may be dismissed due to retrenchment or redundancy.The employee can however .controvert the grounds for termination before'the DOLE. General Standards of Retrenchment real, or if onlY expected' . ar: reasonablY imminent as Percelveo objectivelyand in good faith by the employer; Th; emPloYer served WRITTEN and to NOTICEboth to the emPloYees the DOLE at Ieast one (1) month prior the intendeddate of retrenchment; The employer pays the retrenched emPloYees SEPARATION PAY equivalent to one month PaY or at least one-half month PaY for every year of service; + its emPloYer exercises ine prerogativeto retrench employeeslNof booD FAITH for the advancement or defeat to not and interest its circumvent the employees' right to of tenure; and securitY 'AND The emPloYer used FAIR in CRITERIA REASONABLE ascertainingwho would be dismissed and who would be retainedamorg the employees, such as status, efflciency, seniofiiY, PhYsical fitness, age and financial hardship for certain workers (Asian Ncohol CorP-v. NLRC, GR No' March25, 1999), 1311O8
2.
3.
4.
5.
Note: The employer bears the burden to prove such ground with clear and satisfactory evidence, failing which.-.the dismissal on such ground is unjustified' (Bio Quest Marketing lnc and/or Jose L' Co tzs. Edmund ReY, G.R' No' 181503' SePtembei 18, 2009-) "Last ln, First Out" Rule (LIFO) It appliesto terminationof employmentin the in the same line of work. What is contemplated
(srNS)
are substantial 1. The lossesexpected in extent; de minimis and not merelY lossare substantial 2. The apprehended reasonablY lmminent, can be perceived and in goodfaith objectively bythe emPloYer; must be reasonably 3. Retrenchment pfvent the expected .lleggFsary. to . ;ir.,",,tos3eCfbnO
4. Expected or actual losses must be prbved by'gufficient and convincing evidence (Central Azucarrera dela Carlota v. NLRC, GR No. 10@92, December 29, 1995).
Requirements for Valid Retrenchment REASONABLY 1. Retrenchment is NECESSARY and likely to Prevent business losses, which, if already incurred, are not merelv ce minimis, . but substantial, serious, ..:tual and
131
Hobson's Choice - Meansno choiceat all; a choice between acceptingwhat is offered or having nothing at all. For example,in Asufrin, Jr. vs. San Miguel Corporation, (G.R. No. 156658, 10 March 2004), the employeeswere given the choice either to voluntarily retire,be retrenched with benefits or be dismissed without receiving any benefitat all. Retrenchment vs. Redund
\Nhen for purposes of economy a company decides to reorganize its deparhrenE by imposing on employees of one department the duties , ::rilrjj,ir, performed by the Employer reducds'the employees of the other numberof its personnel thus in order to prevent deparfnent, further losses in his rendering unnecessary the job of the latter, the business operations. services of the employees whose functions are now being performed by the former, may be validly terminated on the ground of REDUNDANCY.
c. Where closure was due to an act of the government,the workers are not entitled to separation pay (National Federation of Labor v. NLRC, GR No. 127718, March2,200O). Note: Article 283 includes both the complete cessation of all business operation of an establishment and the cessation of only part of a company's business (Cheniver Deco Pint Technics Corp. v. NLRC, GR No. 122876, February 17,2000). &r
Does not require proof of actual or irnminent loss
Does not require proof of acfual or imminent loss
Requires proof of actual or imminent loss
Does not reqlire proof of actual or imminent loss
5. Bisease Requisites: a. The employee is suffering from a orsease b. His continued employment is either prohibited by law, prejudicial to his to the healthof his healthor prejudicial co-employees. by a competent There is a certification public health authoritythat the disease is of such natureor at such stagethat it cannot be cured within a period of six months even with proper medisal treatment. Notice of termination based on this ground should be served to the the employee concerned and
4. Glosure or Cessation of Operation of the Establishment or Undertaking Regufsrfes a. The decision to close or cease operationsshould bg made in good faith. b. The purpose should not be to circumvent the provision of Title I Book Six of the Labor Code (Rules on Termination of Employment c. There is no other option availableto the employerexceptto close or cease operations. d. The notice requirement under Art. 283 should be compliedwith.
Separation pay underthe law (when notdue.toserious business losses) or companypolicy orrCBA or similar contract, when appropriate must'be paidto the affected employees. Rules; a. Where closure is due to serious business losses, pay is no separation required;(North Davao Mining Corp. v. NLRC,GR No. 112546, March 13, 1996) b. Whereclosure is NOTdue to serious business losses.workersare entifled to separation pay;
refers
must be
L32
@oltege of Leb Ssn BeDe OPERATIONS BAR 2011CENTRALIZED

The requirementfor a medical ceftificate underarticle2A of the laborcode cannot it would wifh; otherwise, be dispensed sanction the unilateral and arbitrary by the employerof the determination illness gravity or extentof the employee's and thus defeatthe publicpolicyin the protection of labor (Sy, et. al v. CA, GR 27,2003). February No.142293, in anyformfrompreNote: Discrimination including to post-employment, employment based on promotion or assignment, hiring, HIV or suspected the actual,perceived status of an individual is prohibited. fromworkon the solebasisof Termination HIV status or suspected actual,perceived (Sec.35, R.A. 8504, is deemedunlavvful LAW. H|V/AIDS Causes: OtherAuthorized 1. Total and permanent disability of employee; clause; security of union 2. Validapplication 3. Expiration of period in term of employment; 4. Completion of project in project employment; in probation; 5. Failure place; to a distant of business 6. Relocation order; of return-to-work 7. Defiance actsin a strike; of illegal 8. Commission and commitment; of oontractual 9. Violation 10. Retirement Totality of InfractionsDoctrine has beenfoundto have Wherethe employee or incurredseveral suspensions repeatedly of company warningson accountof violations their the law warrants rules and regulations, delinquency' as it is akinto "habitual dismissal (Villeno 494). v. NLRC,251 SCRA ProceduralSteps Required 1. Written noticeto DOLE 30 days prior to the intended dateof termination; . the Purpose: to enable it to ascertain '-' i ' ,'terdiotthbCatrse,OflerminatiOrf,+*r1',,r; concerned 30 to employee 2. Writtennotice days prior to the' intended date of termination; is Note: Whentermination of employment 'broughtby the failure of an employee to meet the standardsof the employerin employmen!, it shall case of probationary that a writtennoticeis served be suffioient within a reasonable time the employee dateof termination. fromthe effective aboutby the is brought Whentermination or Phas contract the of completion is required. no priornotice thereof, of seParation 3. Payment PaY. Ruleson
tof
Equivalentto at least one month PaY or at least one month pay for every Year of is higher'a whichevbr service, ftaction of six (6) months is as one (1) whole considered yeal to one month PaY Equivalent monthPaY or at leastone-half for every Year of seryice, a frrtion is higher, whichever is considered of six (6) months as one(1)whole Year to one month PaY Equivalent monthPaY or at leastone-half for every Year of service, is higher,a fraction whichever is considered of six (6) months as one(1)whole Year.. lf due to severe buslness losses or financial reverses' no separation PaYdue (North Dava Mining & DeveloPment Coeoration v. NLRC, 254
scw721).
Equivalentto at least onem6nth salary or to 7z month salary for every Yea( of sewice,whichevbris greater' a fractionof at least 6 months one (1) shall be considefed year rvhole
*e$ sffi#e {}$Lt-#$s {}*i LAw
133
LABORLAW LABORRELATIONS Dismissalfor Just Cause vs. Termination for Authorized Cause Theemployee mustservea writtennoticeon the employer at least one (1) month in
advance.
The employee is dismissed for causes which are attributable to his fault or culpability. The employee is dismissed' for causes independentof his fauft or culpability.
Once accepted,cannot be withdrawnwithout the consent of the employer (tnteftrod Maritime,'lnc.v.,VLRC, GR No. 810gT.June 1e,1991). An employee who voluntaily resigns is not entitled to separationpay unless stipulated in an emptoyment contractor CBA or sanctioned by established employer pffictice or policy (tbid.). Note: lf resignation is not voluntary,the same can be deemedto be a constructive dismissal. Voluntaryresignationand illegal dismissatare adversely opposed modes of terminating employmentrelations,in that the presenceof one precfudesthat of the other (Alfaro v. CA, ibid). lntention to Resign An employee may be deemed to have resigned from his position, and such 'resignation" may be accepted and made effective by the management, although thre employee did not mention the word .resign,' and/ or 'resignation".This happened to the chlef investigativereporter of the philippine Star. He sent a "Memorandum for File'to the Chairman{EO expressing his frustrations and disappointments in the office. (philippines Today lnc., et al v. NLRC, G.R. No. 112965, January 30, 1997) Constructive Dismissal Defined as quitting because continued employment is rendered impossible,
terminated A s a r u l e , a d i s m i s s eAn d employee cause is employeeis not entifledfor authorized entitled to separation to separation pay. pay. Before an employeeis Employermust give the to be dismissed forjust cause.employee he mustbe givenample terminated a written opportunity to be heard notice at least 1 month day andto defend himself;-: beforethe intendeC of termination.
ART.28$: TERMINATION BY EMPLOYEE 1. Without Just Cause - Oy serving a WRITTEN NOTTCE on the'emptoyei at leastonemonth in advance. ne lmftoyer upon whom no such notiie was servec may hold the employee liable for damages. 2. With Just Cause- An employee mayput an enct to his employment WITHbUT SERVTNG ANy NOTiCE on the emptover i9l .ny of the foilowing;ust cJusli: (sucA) a. geriousInsirltby the employer or his representative on the honor and person of the employee; b. Inhumanand unbearable Treatment accorded the employee by the ' employer or hisrepresentative; c. Qommission of a CrimeOr Offense bv the emplciyeror his representativ6 against the person of the employee or any of the immediate members of his family; and d. Othercauses gnalogous to any of the foregoing. - Termination Dismissal of employment by ' the,9mPoyer.,,, ..:.. ,:\ - Termination Resignation of employment by the employee. VoluntaryResignation ueflnedas the act of an employee, who firids himself in a situation in whicA fri Uefi"ves inai personal reasons cannotbe sacrificed iniavoi of the exigency of the service; thus,he frasno olner choicebut to disassociate himself from hieemployment (Atfaro v. CA, GR tto. iioieii, Augusl 28,Z0O1).
if
,or iso
it
to
Taxi June
to his beyond
Lg4
of {.rtu 5en Feba @ollege BAROPERATIONS 2O1ICENTRALIZED

lnc. v. Catinoy, GR No. 143204, June 26, 2001.) Temporary Lay-Off There is no specific provision of law which treats of a telnporary retrenchment or lay-off' and providesfor the requisitesin effectingit or a period of duration therefore. These employees cannot however be forever "temporarily" laid-off. To remedy this situation,Article 286 may be applied but only by analogy to set a specific periodthat employeesmay remaintemporarilv laid-off or in a floating status (while businesr' operationsare suspended)for only a periodoi six months. ART. 286: WHEN EMPLOYMENT NOT DEEMEDTERMINATED When Employment NOT Terminated: 1. Bona fide suspensionof the operationof a busines or undertakingfor a period noi exceeding six (6) months;or 2. Fulfillmentby the employeeof a militaryor civic duty. Floating Status The "floating status" of an employee should periodof time. last only for a legallyprescribed When the floatingstatus of an employee/asfs for more than , six months, he may be considered to have been constructivdy dismlssed from service. Thus, he is entitled to the corresponding benefits for separation (Agro Commercial Secuity Services Agency, lnc. v. NLRC, GR Nos. 8282924, July 31 1989). Notice Required Serious business losses do not excuse the - employer from complying with the clearance or report required under Arfible 283 of the Labor Code and its . imptementing rules before terminatingthe employmentof its workers:'In the absence of justifying circumstances, the failure of the employer to observe the TITLE TWO. RETIREMENT FROM THE SERVICE ART.287: RETIREMENT Concept of Retirement It is the result of a bilateralact of the parties,a voluntary agreement between the employer and the employees whereby the latter, after reaching a certain age, agrees and/or consenti to sever his employment with the former (Brion v. SPUM of the Seventh Day May 19, AdventistChurch, GR No.o,135136,
leee). ol Art.287 Goverage sector' in the private to all employees Applies status of their positiondesignation regiardtess their which by method the of an? irrespective wages are paid, except those specifically exempted. Att.287 doesnot aPPlYto: HOWEVER. of the NationalGovernment, 1. Employees including political subdivisions, its anit by Civil covered are they if GOCC's ServiceLaws; andagricultural service of retail, 2. Employees or operationsregularly esiabiishments than10 employees' notmore employtng Schemes: Kindsof Retirement in nature;., andcontributory 1. compulsory betweenthe 2.' one set up by agreement in CBA.or employees the and employer -agreements between them (other other contract); emPtoYment applicable given by the voluntarily is that 3: ohe as in an 9nl9.unc* expressly employer, as in failure-to policy or impliedly company contest the emPloYee's claim for
, GR NO,
ASelF$'#ffirs
pocedural-i-eqqlrgrnents'set r:'Mide rund6 ;out. 284.taints theiractuations withbhdfaith.lf the lay-off was temporary but then serious businesslosses prevented the reinstatement of respondents, the employershould have complied with the' requirementsof written notice.
135
LABORLAW LABORRELATTONS nave at leastservedfor a periodof 5 - years '(Art.287as amended by n.i ASS}. Compulsory Retirement Age Below 60 Allowed Art.287 permits employer andemployee to fix the applicable retirement age at below 60 years.The sameis legaland enforceable so long agreeto be governeJ oy 1_!he parties Exprjss i. N[ac, lu:l.cB4 fpantrancoNorth GRNo. 95940, Juty24, 1996). Extensionof Serviceof Retiree Upon the computsoryretirement of an employee or officialin the publicor private service, his employment is OJemeo terminated. The matter of extension of servi"u of such employee or official*is-aJoru""J to rne sound discretion of the emdoyer/USf Facufty tJnion v. NLRC, on lvrl-aiiis, August 6, 199q. . Benefits A retiree is entifled to a retirement pay _ equivafent to af /easf% month year..of service,a fradion "ai,v iJ'"["ry iii"'""t-"x iof months beingconsidered as"i onewnoleVear] the parties_provide ynlT for broader rnctusions, the term.orueHnfr n,tcjiliH tr-Bl SALARY'shall mean: . 15 days plus 1t12ot the 13hmonthpay and . t1.," cash equivalent of NOTmorethan 5 days of serviceincentive fu"u"i.'fzi.s -' i--' days pgryearof service) Difference between Voluntary Invol untaryRetirement
Voluntaryretirementcuts employmentties leavingno residualemployerilaOitity. lnvoluntary retirement amounts to a discharge, rendering the employer liable for termination without cauie. The employee's intent is the focal point of analysis. In determining such intent,the fairnessof the process governing the retirement decision, the payment of stipulated benefits, and the absencq of badges of intimidation or boercion*are re-levant parameters (Arsenio F. euevedo, et.a! vs. Benguet Electic Cooperative lncorporated, et.al, G.R. No. 169927. September 11. 2009).
TITLE ONE. PENAL PROVISIONS AND LIABILITIES. ART.288: PENALTIES Violations of the Labor Code that are declared to be unlawful or penal in nature shall be punishedaccordingly: 1. ArticleL A fine of not less than p 1,000 nor morethanp 10,000 2. Article ll lmprisonment of not less than 3 monthsnor more than 3 years;or 3. Article lll. Both such fine and imprisonment at the discretionof the court. In .addition to such penalty, any alien found gurrty thereof shall be summarily deported ' upon completion of service of sentence. Criminal
cARrAFddi;uijlic 9gyf "" theMAGNA SCHOOL TEACHERS, p"ori" t"""""n!r" having fulfilled the age ""no"i and service requirements oftheappticabu r"tirurn"nil"i= shalt.be oNEnnruCE siven snrnn7'R'di! 'ti! upoN REIREMENT, wnicnlnJri'd" basis of thecomputaubn oiin"lri,p !i_'ir the retiremenr
thereafter. pay and the ,ontnii ;;;";t
Under Sec0bn 26, R.A. No. 4610, otherwise
ths1pavment .,[iffi;i"fff;11",f{?3,',,r'o' .or

1. Retail, service and agriculturat estabtishments or business employingNOT more than "ii"i"ii"i,. ien (1ol \ '-l employees or workers; ^ Government employees; and ? r. uomestic helpers and those in the personal service of another. SeeRA 7641(Retirement pay Law).
136
of Affi 5sn Sels @ollege BAROPERATIONS 2011 CENTRALIZED

OF TITLE TWO. PRESCRIPTION AND CLAIMS OFFENSES CLAIMS A R T . 2 9 1 :M O N E Y Periods of PrescriPtion 3 years from the accrualof the causesof action of the Dearfrom the accrual
4 years from the accrual of the cause of rction
Note: The period of prescriptionmentioned under Article 292 of the Labor Code refers to C L A I M Sa , llother TO MONEY andis LIMITED cases of injury to rights of a working man being governed by the Civil Code. Hence, prescribes in 4 years. REINSTATEMENT Venue: The Regional Arbitration Branch where the workplace is located (NLRC Rules of Procedure).
s&f* ffiH#t\
*{}t;**f {sg {}tr l*,,'l"lsd
137

Tablesof Jurisdiction
Termination disitirtes; lf accompaniediwith a claimfor reinstatement, those that workersfile involving wages, of employment; !4es of pay,hoiirsof workandothertermsandconditions claims for acftjbl,moral,exemplary and other forms of damiges arisingfrom Er-Ee relations; 5. Casesarising fom anyviolation ot M.264, including questions involving the legality of 'strikes and lockouts: 6. Exceptclaimsfd EC, SocialSeo"rrity, Philhealth and matemity benefits, all otherclaims arising from Er-Eerelations, including thoseof persons in domestic or household service. involving an ambunt exceeding P 5,000regardless of whether accompanied witha claim for reinstatement: 7. lilonetaryclaims'ofoversea contract workers arising from Er-Eerelations underMigrant Wbrkers Act of,1995; 8. Wage distortion disputesin unorganized establishments not voluntarily settled by tre parties pursuant,to RA6727; 9. Enforcement of compromise agreements when there is non-compliance by any of the partiespursuant to Micle 227 ol the Labor Code,as amended; and 10. Other cases asmaybe provided by lar. : ConcurrentWith NLRC t 1. Contemptcasesi Note:Although the:provision speaks of Exclusive and Original Jurisdiction of Labor Arbiters, the cces enumerated mayinstead be submitted to a Voluntary Arbitrator by agreement of the underArt. 2s2,Thelawprefers voluntary overcompulsorv arbitration. Casescertified to the NLRCfor compulsory arbitration by the Sec. of LaborunderArt. 263; zoJ; t, Injunction casesunderArts.128and264;and Contempt cases, i.-i".*'i"OOed by LaborArbiters underArt. 217(b') al the LC and Sec. 10 of Migrant I Workers Act: and I 2. Casesdecided by the Regional Officesof'theDOLEin the exercises of theiradjudicatory functions underi[rt. 129overmonetary claimsof workers notexceeding P5,000.
2. 3 4.
abuseof disoetion; Arbitersare appealable to lf the decision,order or the NLRC within 10 awardwas secured through calendar daysfromreceipt fraud or coercion, including of the decision. graftandconuption; lf madepurely on questions of lav; and Reconsideration is
allowed,but'if the MR has
lf serious errors in the all the requisites of an findingsof facts are raised appeal,the same shall be wouldcausegraveor treated as an appeal. which irrepargble damage or injury to theappellant.
:f..i r{ ti\L l' i.l{3i.i.^t:':.iia
days from the order, decision on palpable or
APPEAL of the NLRC Decisions

may be elevated tor REVIEW to the Court of Appealsby a Petitionfor CertiorariunderRule 65 of the 1997 Rules of Court 60 daysfrom notice within of judgment, order or sought to be resolution (Asamended) assailed
and of CBAprovisions; andimplementation 1. Inttirpretation policies. personnel of company andenforcement 2. lnterpretation grievances UnresoMed of settlement. to for purposes is resorted machinery Note: Giievance Arbitrator. Voluntary the arebrough!to
of the CBA; or implementatidh erpretation personnel policies; of company or enforcement from the interpretation 2. Thosearising 3. v'ft and.. ULP and bargaining 4. Err including othorlabordisputes of the parties, s. upon agreement the deadlocks.
5. De
tffi
hdo
jurisd;tS&it [*tr; f discretisa;- "
ffi
-?\"d
e-b&ffi:'
ffitril
provided that disputes, termination underArt. 262 nay include f otherdisputes" nfoteil:nf to that they conform language statesin unequivocal the parties between the acireement This is so disputesand ULP to voluntaryarbitration. of termination the Sirbmission jurisdiction of and original withinthe-exclusive are generally disputes termination because v. CA, 344 SCRA268' 2000)' provision of law(Vlvero by express Labor$rbiters
w ffi
ffi{ffi ffi:ffi ffi::ffi

t.
wray be VIEW to f Appeals ofthe 1997 f within 15 tice of the rent, final ution or of the motion or fial
1. Inter-uniondispttre; disptute; and 2. Intra-union disputes. 3. Otherrelated laborrelations of the BLR "all" laborNOTE:E.O. 251 OF 1987 removedfrom the jurisdiction the NCMB the mediation, of E.O.251 is to transfer.to Theeffect managementdbputes. functions of the BLR. conciliation. andarbitration settletheir differences by submitting the partiesmay by agreement, NOTE:However, of takingthe caseto the BLR. Arbilrator instead theircaseto a Voluntary Officeor may be filed with the Regional of unionregistration for c{lrcellation Petitions withthe BLR, directly
for ln oetitions union cancellation of registration, if filed with the Regional Office, the appeal b with the BLR Director whose decision and final shall be execlrtory. lf the oetition for filed cancellation is directly with the BLR, the the with b appeal Secretary of Labor whose decisionshall be final and executor Pima : facie evidence of abuseof discretion: lf the decision, order or
awarowas or and legal including claimsand benefits, of wagesand othermonetary recovery Casesinvolving in domestic or personemployed by an employee provided tfiat the claimb presented interest does relations, the'claimant theclaimarises fiom Er-Ee or househelper, service, or household or househelper moneyclaim of each employee and the aggregate not seek reinstaterqent P,5,000. doesnotexceed ! -NOTE:The jurisdictional and enforcement imposed by Art. 129 on the visitorial limitation by R. A. No. underArt. 128[b]of the LC has beenrepealed powersof the Reglonal Director of power the P 5,000limitin Art. 129doesnot applyto the exercise 7730.In otherwords, 16' 1998)' of Labor,GR No. 131750,November underArt. 128[b](6uico v. Sec.
to Directorare appealable the Secretary of Labor 5 days from receipl
%
tlrbtsti'iiA*iihel
premises issue and recordb, Powerto inspecqemployer's
lf there existsa la6or disputecausingor likelyto causea strike or lockoutin to thq ptional interest indispensable '.',. 7 LABoR MAY: THE SECRETARYiOF jur:isdiction:dnd it; or decide assume arbitration. for compulsory certifythe sameto the NLRC
:i
rruarnru ti,OnrC EXCLUSTVE
APELLATE : unionby the BLR; of federation or National of regislration Cancellation unionby the BLR; or national registration of federation Denialof applicatio-n-of and Union of BLRin Inter/lntra dispute; Dec'rsion election. for Certification in Petition Decision of Me&Arbiter
SOCIAL LEGISLATION
DECLARATION OF POLICY To establish, develop, promote and perfect a sound and viabletax-exempt socialsecurity servicesuitable to the needsof the people throughout the Philippines whichshallpromote social justice and provide meaningful protection to members and their benefiiiaries againstthe hazardsof disability, sickness, maternity, old age, death, and other contingencies resulting in loss of incomeor financial burden. Towards this end.the State shall endeavorto extend social security protection to workers andtheirbeneficiaries. DEFINITION OFTERMS Employer- Any person,naturalor juridical, domesticor foreign,who carrieson in the Philippines, any trade, business,industry, undertaking or activity of any kind and uses the services of anotherperson who is under his orders as regards the employment except the Government and any of its political subdiMsions, branchesor instrumentalities. including corporatiois ownedor controlled bv the Government Employee - Any person who performs seryicesfor an employer in which eitheror bothmental and phlsicalefforts are usedand who receives compensation for suchservices. where there is an employer-employee relationship: Provided,That a self-employed person shallbe bothemployee and employer at the sametime. Selfmployed - Any personwhose income is not derived from employment; shall be the employer andemployee at the sametime.
ij. .,'. .. r-': '\.
(SCP) Dependents 1. The legal Spouse entitled by law to receive support fromthe member; 2. The legitimate,legitimatedor legally adopted and illegitimate Child who is gainfully unmarried,'not employed andhas not reached 21 years.of age or il 21 years of age,he is congenitally4ncapacitated or whilestill a minorhas been permanently incapacitated and incapable of selfphysically support, andmentally; and 3 The larent who is receiving regular '' support fromthe member. - All actualremuneration Compensation for employment, includingthe mandated cost-oflivingallowance, as well as the cashvalle of paid in any mediumother any remuneration thancashexcept that partof the remuneration in *cess of the maximum salarycredit as orovided under Sec.78. - Any serviceperformed Employment by an employee for his employer, exceptÊxcluded Employment underSec.8 (J);(CAG'T) . Employment Purelygasual and notfor the purpose of the of occupation or business employer, . Services connection with an Philippir$dlfi Skitljt
EXEUNVE COMMIITEE: FTFKIEL JOSHUAVTLLENA overall chairperson,M|NISTIR MotSES DU chairpersonfor academks, DJoANVTEJoMARE JUNASA chakperson for hoter operations, MARIEMTCAELA sIA ANA vice.chairperson for operations, MTKHATL TUMACDER MAVERICK vke. <ftairperrcnfor secretatia!JACKIE Lou LAMUGvke-chairperson for finince, otRnn jrnru ruAZoN ror eap, tRsseN RALPH LEE vice<hairpenonfor logistks "t*J"i*"* SUB'ECTCOIIIIITTEE !l'ARotDcFRlSItANTALLEDO ptNKyvEloso edp, NEoV/rLERto subjectchair,AYLA'HERAZADE 5ALENDAB assistanrsubjectchair, tabor standard'MARKLE5TERTAMoNDoNG|aborre|ations.DoNNAFRANCE5YtADEsociili|egishtion MEMBERS: KarloDalogo, Vanessa Guinto, KayeCohen Lamhrino, KarlonPambid, Saidamen, Jose JoseCarlosTones,Ramayana lnonl {artn flUa, AngeloDavH,KamilleDeanneLagasca, RaynanLarosa
Sen 0eXo6otlegeof Lnt! BAROPERATIONS 2011CENTRALIZED

Beneficiaries (SC+D) - The dependent $pouse until he or she remarries, the dependent legitimate, legitimated or legally adopted and illegitimatethildren who shall be the PRIMARY benefrciaies of the member: o Provided that the dependent illegitimate children shall be entitled to 50% of the share of the legifimate, legitimated or legallyadoptedcfrildren; c Providd, furtts, in the absence of the dependent legitimate,legitimatedchildren of the member, his/her dePendenl illegitimate children shall be entitled to 100% of the benefits; t In their absenc*, the dependent parents who shall be the secondary benefrciaries, and t ln the absence of all of the foregoing, any other person Pesignated bY the as secondary employee covered beneficiary. The retirement, death, Contingency disability, injury or sictness and maternity of the member. COVERAGE A. Compulsory (Sec. 9) (ADS) 1. All employees not over 60 Yeas of and age and their employers, 2. pomestic helperswith monthlyincome of not less than P1,000a month., 3. Coverage in the SSS shall also be compulsory upon such $elf-employed persons as may be determined by the Commission,includingbut no! ltlnited to the following:(Sec. 9-A): (P'ffF) a. All self-emPoyed flrofessionals; b. lartners and single proprietors; c. {ctors and ac{resses, directors, news scriptwriters and correspondents who do not fall within the definition of the term employee in Secfion 8[dl of this . Act; d. Professional Athletes, coaches, trainers,and jockeys;and and fishermen. e. lndividuatFarmers .-i
..T1,
shall pay to the SSS only the contribution required of him and he shall continue his contributionto such private plan less his contribution to the SSS so that the to his benefit employeis total contribution olan and to the SQS shall be the same as his csntributionto his privatebenefit plan coverage' befordthe compulsory Any ghanges, adjustments,modifications' eliminations or improvements in the benefitsof the remainingprivateplan after the integration shall be subject to agreements betweenlhe employers and and concernbd; the emPloYees The privite benefit dan which the employershall continuefor his employees shall remain under the gmPloYer's managementand control unlesg there is an existingagreementto the contrary' Nothingin tnis nA shall be construedas a limitation on the right of employers and employeebto agree on and adopt benefits whicn are gver and above those provided underthis Act. B . Vofuntary (SASS) 1. Spoubes who devote full time to ilanaging the household and famitY atfairs (Sec. 9(b)); 2. Filipinos employed f,broad recruited by foreign-based emPloYers (Sec' 9 (c)); 3. FJrsons leparated from employment to maintain his right to full benefits (Sec. 11);arrd 4. $elf-emPloYed, who realizes no income for a certain month (Sec' 11A). By Agreement (Sec. I fi] t4il Ahy loreign government, international organization, or their wholly-ovned
instrumentalitY
Ph
workers in the
, " , . , a o : . . . i { , J r i t i . t 4 : { . r i , ' tT : l} * , . r : . :
(EECEO) Limitations: 1. Any benefit garned by the employees under privatebenefit$ans existingat the time of the approvat of the Act shall not be discontinued, reduced or othenrise impaired; 2. Private plans which are gxisting and in cbverage force at the time of compulsory with the plan of the shall'be integrated SSS in sucha way wherethe employer's to his private plan is more contribution of him in this Act, he than that required
Effects
(sec.11)
143
LABORLAW SOCIAL LEGISLATION

ceases at the end of the monthof separation, ? But said shall be'creditedWtn ,employee alt contributions paid on his OefrafianJ entitled to benefits according to the provisions of this Act. 4. howevei, continueto pay the total llê_1aV,. contributions to maintain nis'rijnt to-ilri benefit Effects of tnterruption of Business or Professional IncDme of Self_Employed Individual 1. He shail nol b: required to rpay for ., that month^ contributions 2. HOWEVER, he may be allowed to continue paying contiibutions uno"i tnu rutes applicabte to :1" coveredemployeemember. " "upir"t"O ^ J. rr,to retroactive payment of contributions
2. Em,ployee's obligationto contribute
ne ttves,providedthat. a. He has reached the age of 60 years and is already separated from employmentor nas ceased to be self--employed; or b. He has reached the age of 65 years. Note: Member has the option to receivehis 1n 1g monthtypensions ii lump sum at a. preferential rate of Inrerestas determined,bythe SSS. A covered member who is sixty (60) years old but was not abje' to
seme$er of retirement shall be pension as tong as 3!ti!"0 to monthty
shal be arowed oinertnan under Sec.22_A ""-#Jrii"o
at teast 120 montniy ,.3n]r!Pulg ,"eontribution priorto the semester of

his retirement shallstillbe entifled to; lump. sum benefitequal to the total pT1gulo1ts paid by him and on his PROV|DED, he is separat; ,Tl"'t rroT. .employment and is not continul4g payment of contributions to theSSSon hisown.
BENEFITS pension (Sr-. A. i2) fr-tonthty
or the follo,rring: 1. p plus 20%o of average monthty .300 salary credit ptus zzo o-i ;;;;" monthlysalarycredit for each ;;;;;; year of servi ce In excess of 10 years; . OR Z. _40% of monthlysalarycredit;OR
3. p1,ooo,proiiaea thattG'inlnir,r" pension shallin no caseo" p",oiol"n aggregate amount of less.than 60
pension shail bettl HrcHESr .yo1t!JV
service, the minimum pension sfraff Oe-pf ,Zdi; and b. For members with at least - 20 years credited service-pZ,aOOl tie minimum pension snaff Oe A-1. Dependent's pensio n (Sec. 12_Al 1. Equivatent to 1o"/";i ;;n-ryl6n"ion p is higheri ^ 9r 250,whichever 2. payable on account"'oi death. permanent,total \is"o,1titv""1? retirement ano 3. payable to each dependent child conceived on or before in" o"t" oiihJ .';; contingency but. not be..ginning "*;;;i"g with the yorng""i'""n; .. without substitution; witn plr"fur"nc! on legitimate children B-1. RetirementBenefits(Sex-. 12_B) -rJast 1. A member wno. nai-Jaiaa]t rzo monthty contributions ;ril-i;' fi; L44
a. ro,' ,"*uH"tl,i* ., reast 1o years credited
Upon Death of Retired Member (Sec. 12-B[Dil 1. as of the fig nlmaV beneficiaries date of his retirement shaltbe entitieJ -the monthly pension; ^ to receive anJ 2. lf he hasno primary beneficiaiies;nd hedies60 months fiom the startof nii monthlY pension, secondarv oenettciaries shall be entifledto a tump sum benefitequivalent to 1ne total monthlypensions correspondino '$_yea; ro the balance of the qy3l"nl""d. period, exctuding'the qependents' pension.
is less
6otlegeofllb .5sn SeUe BAROPERATIONS 2011 CENTRALIZED

2. Confinedfor more than three days in a hosPitat or elsewhere with the ofthe SSS; and aPProval leavesof absencewith full pay 3. Att'sict< to the credit of the employeememDer shall have been exhausted' Note: Sick leaves of absence must be 3 daYsor more. Conditions: 1. ln no case shall the daily sickness benefit be paid lo4ger than 120 days in 1 calendarYear; 2. Nor shall any unused portion of the 120 daYs of sickness benefit be carried lbnrarO and added to the total comPensable daYs':=r' number of Year; allowablein the subsequent 3. The daily sicknessbenefitshall not be daYs or'' Paid for more than 240 and accountof the same confinement; notify.his shall member 4. The employee employeror tfre SSS if unemployedor of the fac-t of his .seti"emptoyea,. sicknesi 6r injury within 5 calendar days after the start of his confinement' the Note: The following are exceptions to on: cati requirementof notifl is in the hospital;and . Confinement r Becamesick or was injuredwhile working or withinthe premisesof the emptoyer' E. MaGrnity Leave Benefits {as amehded bY R.A.73221 CLvereO female member is entitled to--a 00o/o J"iiV m"t"rn,ty benefit equivalent,to1 of her average daily salary credtt tor.ou daYs or 78 daYs in case of c?esarlan delivery.
equal to the monthlYPension times the number of monthly paid to SSS or '12 confribrltbns times the monthlY Pension,
Death or of PermanentTotal Disability Pensioner shall be entitled r His primary beneficiaries pension; or to the monthty and he . lf he has no primary beneficiaries fromthe startof his Cieswithin60 months monthly pension, his secondarY to a lump shall be entitled beneficiaries to the totalmonthly equivalent sum benefit of to the balance pensions corresponding period excluding the S-year guaranteed the dependents' Pension. The Following are Deemed Permanent Total Disabilities:(ELPIS) lossof sightof bothgyes; 1. Complete 2. Lossof two limbs at or abovethe ankleor wrists; 3. Permanent complete paralysis of two limbs; imbecility to incurable resulting 4. Braininjury and or [nsanity; and approved 5. Such casesas determined bythe $SS. C. FunerafBenetits(Sec.1!B) to P 12,000 A funeral grant equivalent shall b6 paid in cash or in .kindto help itil''defray'the-cod gf fuheril expenses. D. Sickness Benefits(Sec. 14) to 90o/o benefitequivalent A dailysickness of his averagedaitysalarycredit shall be paid by his employer or by the SSS, if or self-emploYed. unemployed Requlrements: musthave Paidat least3 1. A member monthly contributionsin the 12' preceding month periodimrnediately or injury of sici-;nesa the semester
Requirements:
maternitY reclvery L45
LABORLAW SOCIALLEGISLATION,
of sickness benefits for the same compensable periodof 60 days for the same childbirth, abortion, or miscarriage,or 78 days in case of caesarian delivery; 4. That the maternity benefits provided under this Section shall be paid only for the first 4 deliveries or miscarriages. 5. That the SSS shall immediately reimburse the employer of 100o/o of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof;and 6. lf an employee should give birth or suffer abortion or miscarriagewithout the requiredcontributions having been remited for her by her employerto the SSS, or withoutthe latter having been previonsly notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits, which said employeewould otherwise have been entitled to, and the SSS shall in turn pay such amountto the emptoyee concerned. Non-Transferability of Benefits (Sec. i5) General Rule: The SSS shall prompfly pay the benefits provided to persons Entifled thereto in accordancewith this Act. 'Restrictions: o The SSS shall pay the retirement benefitson the day of contingency to qualifiedmembers who have submitted the necessary Documentsat least 6 months before. r The beneficiary who is a national of a Foreign Country which does not extend benefrtsto a Filipino beneficiaryresiding in the Philippines,or which is not recognized by the Philippines,shatt not be entifled to receiveany benefitunderthis Act. o Where the Eesf lnterest of the SSS will be , . served, -the Commission mav direct paymentS withoui regard- to nati6nalty or countryof residence. . lf the recipient is a Minor or incapable of administering his own affairs, the Commissionshall appoint a representative. Such appointmentshall not be necessary in case the recipient is undei the custody of or living Wth the parents or spouse of the member in which case the beneflts shall be paid to such parents or spouse, as representativepayee of the recipient. o Such benefits are Nof Transferable and no power of 'aftorney or other document L46 executedby those entitled thereto in favor of any agent, attorneyor any other person for the collection thereof on their behalfshall be recognized, exceptwhen they are physically unableto collectpersonally such benefits: o In case of death benefits,if no beneficiary qualifies under this Act, said benefits shall be paid to the legal Helrs in accordancewith the laryof succession. Exemptions from Tax, Legal Frocess and Lien 1. The SSS and all its asselpand properties, collected-and all accruals all contributions earnings theretoand incomeor investment therefrom as well as all supplieq equipment,papers or documentsshall be exempt ,frsmi,:any tax, assessment, fee, charge,or customsor importdut[ and 2. All benefit payments made, by the SSS shall likeryisebe exemot from all kinds of taxes, fees or charges, and shall not be liable to attachments,garnishments,levy or seizure by or under any legal or *equitable "process whatsoever, either before or after receipt by the person or personsentitledthereto,exceptto pay any debt of the memberto the SSS. Remittance of Contributions imposedunder this Act shall The contributions be remittedto the SSS within the first ten (10) days of each calendar month following the month for which they are applicableor within may prescribe. such time as the Commission Self-employed members shall remit their quarterlyon such dates monthly contributions and schedules as the Commission may orescribe.
#ff {}*a L&\ftf
dI.elo 5sn frelg @ofuge BAROPERATIONS 2011CENTRALIZED

Duties of the EmPloYer 1. To pay employer's contribution in accordancewith the schedule providedin this Act; 2. To deduct and to remit employees' contributions; the ssS the 3. To immediately 'ages, report to civil status, occupations, names, salaries and dePendents of all his employeeswho are su$ect to compusory coverage; 4. To keep true and accurate work recorcls for such period and containing such information as the Commission may prescribe; 5. To require,m a conditionto employment, the presentationof a'registration number ,'',,:';'secured employeefrom by the prospective the SSS in accordance with such procedureas the SSS may adopt; 6. To notify the SSS oi the confinementwithin 5 calendardays after receiptof the notificationfrom the employee member; and 7. To advance in two equal monthlY installmentsthe maternity leave benefits within 30 days from the filing of the maternityleave a PPlication. Liabilities of thg EmPloYer: 1. The emploYer shall PaY to the SSS damages equivalentto the benefits,which said employee member would otherwise have been entitled to, for his failure to remitthe requiredcontributions'
Note: The right of the emPloYee ..to institutethe netessaryactionagainstthe to remlt ' emplover or neglects who refuses within commenced be Ioriiti6rtion" may ts delinquency the time the from years 20 the by made is knownor the assessment ?ccrues' SSS,or fromthe timethe benefit as the case may be' The prescripttve when the oeriod does not commence accrues to pay the premiums obligation (Lo v. cA [1e9e]). Settlementof DisPutes(Sec'5) Commlsston' Security ; Social Jurisdiction Cases Coverd: Any disputearisingunder to: (CBCPA) this Actwith resPect 1. Qoverage; 2. Qenefits; 3. 9ontributions; And 4. Penalty; thereto' relafed 5. AnYmatters Procedure 'ano settlement ,i F;l;;. determination . of ru]:: tle governed be shall oi=bii"" .bY by,tne anO regulationspromulgated commission; bY: heard 2. Shallbe a. Thecommission; or b. AnYof its members; bythe dulyauthorized ;. Helringofficers commission; withintwenty(20).days decided 3. Snatt-Oe ano of evidence; afterthe submission if no.appeal 4. sn"if-0" nna and executory within fifteen {15) days from nottce or judgment.
a penalty the contribution, To pay,besides fromthe datethe of 3% permonth thereon falls due until paid, for his contribution and remitcontributions; to deduct failure to equivalent To payto the SSSdamages member whichsaidemployee the benefits, to had his name wouldhavebeenentitled to on time by the employer been reported the SSS, for his failure to report matters uponhim;and required to equivalent To payto the SSS damages the differencebetweenthe amount of member I 'rbe[gfits;.towhich,theemployee" : or hiJo6nLfiCiiry woitd havebeeii entitled "f to had the proper contributionsbeen remittedto the SSS, and the amount payable on the basis of contributions for his misrepresentation actuallyremitted; of the true date of employmentof the ,emptoyee to the or for remittance member lessthanthoserequired SSScontributions in this Act or for failure to remit any ' contributionsdue prior to the date of contingencY.
Noe
Nol
7.
stay the
t47
LABOR LAW SOCIAL LEGISLATION

rnstrumentalitiesincluding GOCCs and financialinstitutions with originalcharters,thd Constitutional Commissions and the Judiciary. COVERAGE Membershipin the GSIS shall be compulsory for all employeesreceivingcompensation who have not reached the compulsoryretirement age irrespective of employment status. Excegtions to the Compulsory Coverage (APC') o Members of the Armed Forces of the Phillppines (AFp), subjectto the condition that they must setfle first their financial obligation with the GStS. r Membersof the philippine poiice National (PNP), subject to the conditionthat thev must setfle flrst their financial obligation with the GStS. o Gontractuals who have no employer and . employee relationshipwith the agencies they serve;and . PurelyCasual employees. Note: All membersof the GSIS shall have life insurance, retirement, and all other social security protections such as disability, surviv.orship, separation, and unemploymeni benefits. Exception: Members of the Judiciary and Constitutional Cornmissions shall have life insuranceonly. Computation of Service Computed from the date of original appointmenUelection,including periodj of service at different times undei one or more employers,those performed overseas under th,authority of the Republicof the philippines, and those that may be prescribeOby tne GSIS. All service credited for retirement,resignation or separationfor which corresponding benefits have been awarded shall be'excluO-eJ in ine comp"utation 'reinstatement oJ servicq in case of in'the servici of an employer and subsequent retirement or separation . which is.compensable underthis Act. *Effect of Separation from Service (Sec_l) The membershall continue to be and entitled to whatever benefits "'ru*06r, he has qualified to in the event of any contingency compensableunder this Act. DEFINITION OF TERMS Employer - The national government, its political subdivisions,branchds, agencies or 748 mentionedin Employee/ Member - Any person receiving compensation while in the service of an employer,whether by elecdion or appointment, irrespective of the status of appointment, includingbarangayand Sanggunian officials. Dependents (SCP) 1. The legitimate Spouse dependent for supportupon the membq;or pensioner, 2. The legitimate, legitimated, legally adopted Child, including the illegitimate child who is: a. Unmarried,not gainfullyemployed,not overthe age,of:majority; OR b. ls over the age of majority but incapacitated and incapable of selfsupport due to a mental or physical defect acquired prior to age of majority; 3. Parents dependent upon the member for * suppo.rt. Primary Beneficiary - The legal dependent Spouse untll he/she remarries and the dependent Children. Secondary Beneficiary - The dependent Parentsand, subject to the restrictions on the dependent children, the legitimate Descendants, Compensation - The basio pay or salary received by an employee, pursuant to his election/appointment,excluding per diems, bonuses,overtimepay, honoraria,alloruances and any other emoluments receivedin addition to the basic pay which are not integratedinto
Sen Fela olteged1e BAROPERATIONS 2011CENTRALIZED

Temporary Total Disabililt - Accrues or physical and/ormental ariseswhen impaired restored ancUor facultiescan be rehabilitated to theirnormal fundiors Permanent Partial Dis$ility - Accrues or lcs or impairment arisesuponthe irrewcable faculties, of certainportiorVs of the physical a whichthe member is ableto pursue despite gainful occupation. BENEFITS of the GSISshall GeneralRule:All members and all other have life insurance, retirement, such as disability, socialsecurityprotecdions separation, and unemployment survivorship, 'benetits. and the of the Judiciary Exception:Members shall be entitled Constitutional Commissions onlyto life insurance benefrts. A. Monthly Pensions(Sec.9) 1. 37.5o/oof the re-valued average plus compensation; monthly . 2, 2.5o/oof said re-valued average for each year monthly compensation of service in 'excess of 15 Years that the basic monthlY PROVIDED pension shall not exceed90% of the compensation. average monthly 3. The basic monthlypensionmaY be of uponthe recommendation adjusted of Manager andGeneral the President the GSIS and approved bY the President of the PhiliPPinesin accordance with the rules and prescribed bythe GSIS; regulations PROVIDED: a. The basic monthlypensionshall and notbe lessthanP1,300.00 b. The basic monthlYPensionfor at least thosewho have rendered 20 years of service after the : of this Act shall not be effectivity at leasl three (3) c. Has rendered Yearsbut less than fifteen (15) OR of service. Years to eighteen equivalent 2. Cashpayment pension (18)timeshis basicmonthly at the time of resignation or plus an ol6-age penslon separation, benefitequal to the basic monthlY pension. Conditions: uPon reaching montlf,Y a. PaYable (60)Years; the ageof sixtY b. He has resignedor separatecl and fromservice; at leastfifteen(15) c. Has rendered of service. Years from the seParated Note: A member to be a member, shallcontinue service and shall be entitled to whatever benefitshe has qualifiedto in the contingency any of event thisAct under comPensable lnvoluntarY C. UnemPloYment or SeparationBenefits(Sec' 12) to of equivalent Monthlycash payments the average monthlY 50% of comPensation. Conditions: from -service is separated 1. Employee of his office or due to the abolition position usuallY resulting from and reorganization; 2. He has been PaYing integrated for at least1 yearpriorto contributions seParation. . Benefits(Sec.13) D. Retirement
'
' ;'tu)i:i,., 3ryonthr' -ffi$l,i?4,{180-99

Benefits(Sec.11) B. Separation to 100%of 1. Cashpayment equivalent . the average for monthly compensation each year of service he Paid mntributions, but not less than Pl2,000;
Conditions:' a, "Payaple upon reachingthe age of sixty (60) years; b. He has resighed or separated from'service; and
LABORLAW SOCIALLEGISLATION
Note: Retirement is compulsory upon reaching65 years of age with at least 15 years of service.BUT if he has rendered less than 15 years of service,he may be allowedto complete the said period. E. Permanent Total Disability Benefits (Secs. 1*16) General Conditions: Employeesuffersdisabilitynot due to his: (MisNlK) a. Gravemisconduct, b. Notoriousgegligence; c. Habitual and lntoxication; d. Willful intention to kill himself or another. 1. Monthlyincomebenefitfor life eoual to the basic monthlypension. Specific Gonditions: a. Effective from the date of disabitity; b. He is in service at the time of disabitity; c. lf he is separated from service, he has paid at least 36 monthlv contributions within the S-vear period immediately preceding disability, or has paid a total of at Ieast 180 monthly contrlbutions priorto the disability; lf he is in service and has paid a total of at least 180 monthly contributions, he shall receive an additional cash payment of 1g times his basic monthly pension; and e. Member cairnot enjoy monthly Income benefit and the old-age retirement simultaneouslv. 2. Cash payment equivalentto 100% of his avera(;emonthlycompensation for 'each year of service but not lesSthan P12,000. .-:".,,,, ,, . Spg-cific Conditions\ . , , a..Member does not satisfv the conditions under the preceding number;and b. Has rendered at least 3 years of seMce at the time of Cisanitity. Suspension of Disability Benefits 1. He is re-employed; 2. He recovers from disability; or 3. He failed to present himself for medical examination when required by the GSIS. F. Temporary Total Disability Benefits (sec.18J 75o/o of the currentdaily compensation for each day or fractionthereof of temporary disability. d( Conditions: 1. Such benefit shall not exceed 120 days in one calendaryear. 2. Employeehas exhaustedall his sick leave cre,jits and cq{eeJiye,Qargaining agreementsick leave benefits; 3. He is in service at the time of his disability; or 4. lf separateC, he has ;enderedat least 3 years'of service and paid at least 6 monthlycontributions in the 12-month period immediately preceding the disdbility; 5. Member cannot enjoy temporarytotal disability benefit and sick leave pay simultaneously; 6. lf the disability requires more extensivetreatment that lasts beyond 120 days, the payment of the temporarytotal disability benefit may be extended by the GSIS but not to exceeda total of 240 days; and 7. Such benefit shall not be less than P70 a day. G. Survivorship Benefits (Sec.20) When a member or pensioner dies, the beneficiaries shall be entifled to suwivorshipbenefits:
is
trdRffidts
he
years of
of his death contributions 150
of Agto Sun Febs Gotlege BAROPERATIONS 2O1I CENTRALIZED

period within tte $year immediatdy preceding his death; ot: c. lf separated from service, he has Paida total of at least 180 monthlY contribx.rtions orior to his death. OR 2. Survivorship Pension plus cash payment equinalent to 100% of his average monthly compensation for every year of service. Conditions: a. Employee was in service at the time of death: and b. Has rendered at least three years , 'i:--:: of serviceOR 3. Cash p-yment equivalentto 100% of for his averagemonthlycompensation each year of seMce he paid contributions, hJt not less than P12,000. Conditions:. a. Employeehas renderedat least 3 years of service prior to his death; but b. He failed to qualify under items 1 and 2 mentionedabove. Note: The survivorshippensionshall be paid as follows: o When the dependent spouse is the only survivor. he/she shall receive the basic pensionfor life or until he/she survivorship remarries; . When only dependent children are the survivors, they shall be entitted to the pensionas long as they basicsurvivorship are qualified, plus the dependent children's pension equivalent to 10% of the basic monthly pension for every dependentchild not exceeding5, counted youngest and from the without substitution, r . When the survivors are the dependent not less than P12,000PROVIDEDthat the member was in service at the time of his death and has renderedat least 3 years of service;and ln the absenceof secondarybeneficiaries, such benefits shall be paid to his legal heirs. benefits' For purposesof the survivorship legitimatecltildren shall include legally children. adoptedand legitimated
H. Funeral Benefits (Sec.23) In an amount flxed by the GSIS rules and regulationsbut should not be less than P12,000, to be increased to at least 18,000 after 5 Years, PaYableuPon the death ot 1. An activemember;or 2. A member who has been seParated from the service, but who may be entitledto futurebenefit;or or 3. A pensioner; 4. A retiree who at the time of his age' retirementwasof pensionable tl lite insurance Benefits lsec- 24) Compulsory upon all employees except membersof the AFP and the PNP. GSIS funds maYbe invested: 1. In direct housing loans to members and group housing projects securecl by first mortgage,giving priorityto the low incomegrouPs;and 2. ln short and medium-term loans to members such as salary, PolicY, stock emergency educational, purchaseplan and other similarloans'
J. LoanGrant is*. so)
Adjudication of Claims and Disputes
Ju
GSIS
i' :' - ..,,jspougd'iiiio'tne'cede'naent ctrltitien,''the 'dependent shall receive the basic spouse pension survivorship for lifeor untilhe/she remarries,and the dependentchildren shall receive the dependentchildren s pension mentionedin the. immediately preceding paragraph 2 hereof.
JURI
lf there are no primary beneficiaries, beneficiaries are'entitled to: secondary r Cash payment equivalent to 100%of his average monthlycompensation for each year of sbMce he paid contributions, bnt
1997 the APPeal
151

.
imprisonment or death or reclusion perpetua is imposed;

Appeal shall not stay the executionof the order or award unless ordered by the Board, by the Court of Appeals,or.5y tn" SupremeCourt;ano Appeal shall be without prejudiceto the special civil action of certiorari when proper.
Execution (Sec.32) . Any decisionor award shall be executed in the samemanneras in the RTC, o The Board has the power to issue to the city 9r provincialsheriff or its appoinieO sheriff writs of execution ior the enforcement of such decisionor award. . Any personwho fails or refusesto comolv after being required to do so sn"ri-u6i appticationby the GS|S, Oe punisneJ-toi contempt. Exemption from Tax, Legal process and Lien GS.IS,its assets, revenues and benefits ]h9, paid shall be exempt from i"*"", assessments,fees, charges or "ff duties of atl kinds.
*{}i;.Ltr {S'ff1*$ i"-;AW

*'ii. . ^ i
\.
752
of i[nlo Sen SeM GoUege OPERATIONS BAR 2011CENTRALIZED

SERVICEINSURANCESYSTEMACT SOCIAL SECURITYACT ANd GOVERNMENT 1. Employer- Any person,who carneson In 1. the Philippinesany trade, business, industry, undertaking, and uses servicesof anotherPersonwho b THEGS UNDER THOSE EXCEPT . Employee - AnY Person who services for an emPloyerwho
for such servlces, compensation 'E employer an there relationship. - considered as both Self4.mlpoyed entitled for suppo( Legal spouse 'whether. legitimate, legitimated, Cnid, legalty adopted oi ineditimate;and Paents deoendent for suPPort Unmanied; Not gainfultYemPloYed; his orders as regard the
fts government' Employer' Ndional potiiicai subdivbiors, branches, instrumentalities, Loencies or or influding government-owned with original corporations controlled charters. EmploYee- AnY Personrecevlng whilein the serv'pe.ol compensation
an emploYer as defined herein' whether by election or apPointment' including barallgaY and officials.
3. 1. 2. 3. 1. 2.
'1. Hasnotreached 21
age;or Yearsof
or 1. Notoverageof majoriV;
hirneelf of supporting Incapable 1. priorto 2'l yearsof or mentally .physically age,asthe casemaYbe. or majority purelycasualand not for 1. Employment purposeof occupation or businessof employer;
Cbmpulsory compensation receiving All employees

the comPulsory *ht d"i not reacfred retirement age, inesPective of of AFPandPNP; Members
Contr*tual emPloYees, who have
t
2.
relatiot no emploYer-employee serve;and theY withthe agencY 2. Services performed on or in connection Judiciary ancl . Members. of with an alien vessel by an employee if he who Commission, Constitutional employed when such vesselis outside shall be covered onlY bY life Philippines; coverage. insurance 3. Service performedin the employ of casualemPloYees. Philippinegovemment,instrumentality . PurelY agency thereof;
. Service performed in the employ of
governmem, foreign organization, or lheir and instrumentality; 5. Services performed bY

employees, which may be excluded of the Commission. regulat'rion
All acfrral .remuneration for mandated including the

as well. 6 the cash value
ationpaidtin any.medtum iash excefr that part of the salarycredit excesscrf the maximum 1. Employer'scontributionon his ceases: to contribute . Employee'sobligation -of the mon ceases at the end separation;and 3. Employee' shalf be credited with contibutions paid on his behatf entitled to beneftts according to prwisions of this Act. Note: He may continueto pay the contbutions to maintain his rigttt to ' bbneft 153

Employer Report immediatelyto SSS the
informationon all his covered employees: 1. Names:
to GSIS the following all his covered employees:
3. Civilstatus; 4. Occupations; 5. Salaries: and Self{mployed Reportto SSS withinthirty (30) daysftom first dayof his operation the following: 1. Name: 2. Age; 3. Civilstatus; . Occupation; , Average monthly net income; and Employer's contributions; and Employee's/Member's contributions . . Rertirement benefits: Permanent disability benefrts;
Salaries; and 5. Such other matter determined by the GSIS
1. Sickness benefrts: 2. Maternity leavebenefits; and 3. Dependents' pension.
1. Temporary disability benefrts; 2. Separation benefits; 3. UnemploymenUinvoluntary separation benefits; 4. Survivorship benefits; and 5. Lifeinsurance benefrts.
', assets,and revenue of the GSIS and SSS are all exemptfrom taxes,and all paid by SSS or GSIS shall likewise be exemptfrom taxes,assessments, fees,
and duties of all kind.
1. Coverage; 2. Benefits: 3. Contibutiors: 5. Any matersrelated thereto. SocialSeorrityCommission Mandatory-period of twenty (20) submbs'ron df evidence
- Que$ions of law and facts (Rule
DisputeArising From: disputearising under this Act and

laws administeredby the GSIS.
**Lffi{S.tr $S"|*AW
- Questions of lawonly(Rule45) 10 YEARS from the time the right of
5sn FeUaollegeof ifstn OPERATIONS BAR 2011CENTRALIZED

employersto both systems (SSS and GSIS) of benefits in the processing shall be considered which he can claimfrom eitheror both systems'
An Act institutingLtmrted Portability Scheme in the Social Seanrity lnsr.tnnce Systerns by TOTALIZING THE WI3.RKERS' CREDITABLE IN EACH OF SERY/CES OR COA/TRIEUIIOA/S IHE SYSTEMS. Policy of the StaE: (PtT) 1. lromotion of workers' welfare by realizing their efforts in productiveendeavors; 2, lmprovement of workers' conditions by providing beneftts for their long years of contribution to nationaleconomy;ancl of social security and portatrility 3. Totalization benefits with the vierryof establishingwithin, perioda unitarysocial security a reasoneble system. Note: lt includes contributions paid by the employee or worker on account of the worker's membership to the system, either the GovernmentSeMce InsuranceSystem (GSIS) or the SocialSecuritySystem(SSS). r Totalization - refers to the process of adding up the periods of . creditable services or contributionsunder each of the systems, for purposes of eligibility and corhputation of benefits. Portability - refers to the transfer of funds for the account and beneflt of a worker who transfers from one system to the other. Who are the covered workers? (TE) '1.Those who fransfer employmentfrom public to private sector or vice-versa;or 2. f,mployed in both private or prublicsectors The creditable services or contributions in both systems shall be: record 1. Creditedtotheir serviceor contribution in each of the systems; and be 2. Totdized for purposes of old-age, disability, $urvivorship and other benefits in case the covergd membe.r does,not qualify for SSS or GSIS'benefits'ineither or both systemswithout totalization. Note: In case of overlapping periods of it shall be creditedonly ONCE for membership, purposes of totalization ProportionalitY of Benefits : Benefits to be paid by the system shall be in proportion . to the number of contributions ACTUALLY REMITTED to that sYstem. Note: Atl cohtributions paid by such member personally, and those that were paid by his
Policy of the State: Promotion of a tax-exempt employees' programwhereby employeesand compensation their dependents, in the event of workconnecled disability or Qpath, may promptly secure adequate incomel medical or related benefits. Primary purPose: for disabilityor death +o proviOecompensation injuriesor diseases' resultingfrom occupational injuryto, or death of, employees'lt or accidiental is for the Oenetitof injured employeesand not for the injuredemPloYers. ComPensation Workmen's lnsurance Fund (SlF) and State
Workmen's Compensation - genbral term applied to those laws providing for compensationfrom loss resulting from injury' disahement, or death of workmen through industrial accident, casualty or disease' The compensation is generally amount of determined in accordance with a definite schedule,based upon the LOSS OF EARNING POWER. Two classes of source of compensation: 1. Direct Payment Statr.rtes - payment of compensationby the employer directly to the emPloYee 2. lnsurance-Statutes (SlF) - require the
emploverto take out insurancebureau operated by the state or with private company
orfr&rffi#ffir$ation
type. toa
equi
credit pay
State
1. Built
based
2.C 'by
the
oyees. bompensation not required. 155

Opposition by the employers is likewise discarded. in favor of lresumption of compensability the workmen is abolished.EXCEPT in the case of policemen and members of the AFP, the presumption arises from the nature of their work provided that evidentiary details of injury or death are (Quebecv. GS/S) cfearlyestablished. Rule on gggravation of illnessis removed. Employers'gluty is only to pay the regular monthlypremiums to the scheme. Emplclyees' Compensation Commission (ECC) settles the claim from fund to whether or not compensation may be paid under its exclusivecontrol.
' living withthe employee, spouse 2. Legitimate

and 3. Parentsof said employeewholly dependent upon him for regularsupport. Qualified Beneficiaries 1. Primary until he a. Dependent spouse and remarries; children b. Dependent c. Dependent acknowledged natural child onlv when there are no other deoendeni childfen who are qualified for monthly and eligible income benefit. 2. Secondary a. Dependentparents; b. lllegitimate childrenand subject to the c. Legitimate descendants restrictions imposed on dependent children Liability of Third Parties When the disability or death is caused by circmri'stanceS creatinga legal liabilityagainsta third party, the disabled employee or the dependents in case of his death shall be paid. to the rights of The system shall be subrogated the disabled employee or the dependents in case of his death as againstthird pady. Note: Where the system recovers from such third party damagesin excess of those paid or alloned under this Title, such excess shall be delivered to the disabled employee or other personsentitledhereto,after deductingthe cost and expensesof the system. of proceedings Coverage of Compensability: (ISDD) 3. Qisability 4. Death
3.
4. 5. 6.
EMPLOYEES'COMPENSATION COMMISSION A. Structure: 1. Chairman(DOLE Secretary) 2. Ex-Officio Members (SSS Adminislrator, GSIS President, ECC Executive Director, Medicare Chairman) B. Thrust of ECC Program: 1. PreventiveThrust.- to minimizeand control hazardsin the workingenvironment. 2. Compensative Thrust - ECC through SSS and GSIS pays benefitsto the workerswho sufferwork-conqected conti ngencies. 3. Curative Thrust - treats the sickness or injurythat a worker may suffer. Compulsory Coverage upon: 1. Allemployers; 2. Their employeesnot over60 years old; or 3. Employees over 60 years old and paying contributions: and 4. Filipino employees employed abroad subjectto prescribed ECC regulations Covered Employees: 1. Persons compulsorilycovered by GSIS or SSSi 2. Those employed as casual\ emergency\ r' : I ;' tempofiry;:r,,,', ubgtitute)* or . .,,qontrac{ual employees;and 3. fiiembers oiine A-FF. Qualified Dependents.: 1. Legitimate,legitimated,legally adopted or acknowledgednatural chib who is a. Unmanied, b. Not gainfullyemployed;and c. Not over21 yearsold or d. Qver 21 years old provided that he is incapacitated and incapable of self' s{rpport due to a physical or mental defed which is congenitalor acquired during minority; 1s5
1. lnjury 2. $ickness
5ffi SeDs @ollegeof {.eto BAR OPERATIONS 2011 CENTRALIZED

Injury - any harmful change in the human organismfrom any accident 1. Arisingout of, and 2. In the courseof emSoyment. "Arising out of refers to the origin or cause of 'ln the @ursr- of Employment" the accident. refers to injury that takes place within the period of employment, at the place where the employee reasonably may be, and while is fulfllling his dr.rties or is engaged in doing something incidentalthereto. (llcilo Dock and ' Engineering Co. v. WCC, et al. GR no L-26341 November27, 1968) Note: Employmentindudes not only the actual doing of the worl( btrt also a reasonablemargin of time and space necessary to be used in passing to and from the place where the work is to be done, where the latter is expressly, or impliedlyincludedin the terms of employment. RELEVANT DOCTRTNES 1. Proximate Cause Doctrine Proximatelegal cause is one actingfirst and producingthe injury either immediatelyor by setting others in motion.They constitute a natural and continuous chain of events, each having a close casual connectlonwith its immediate Predecessor. Where Primary injury is shown to have arisen in the course of employment,every natural consequencethat flows from the injurylikewisearises out of the employment' unless it is the reSult of an independent' interveningcause attributableto claimant's own negligence or misconduct. (Belarmino v. Employees'' Compensation Qommission, GR no. 90104, MaY 11, 1994) General Rule: Proximatecause resultingto injury is an injury arising out of the emPloYment. Exception: When independentintervening cause ensues attributable to claimant's ' , . l 'f , ? . u t ! , r . . . . . , . - . . , , \ ; ; : i . . i r 1 r . . , : . s i.i . . ;; 1 2. 24.Hours DutY Doctrine General Rule: Soldiers, policemen and firemen by the nature of their work may be, c.onsidered on duty round-the-clock. lt relaxes the workplace tador but still requires work-connectian. (Hinoguin v. ECC, GR no. il40, APril17, 1989) where the injury is Exception: Moonligfrting not work-connected. Notq The Z4-hour dufy doctrine should not be sweepingly applied {o all . acts and
the deathof a police causing circumstances not officer but onlyto thosewhich,although on officialline of duty, are nonetheless (GS/S policeservicein character' basically 20, 1999) April GR no. 128524, v. Atlegre, Doctrine 3. DirectPremises General Rule: Accident should have occurred at the Place of work to be compensable. ExcePtions: evenwhen is COMPESSABLE Wnenlnjury it did NOT occur at the Place ol worK (Going to, Coming from / lngress' Egress Rule) (PPENSS) ^, f*t't" - Premises Rule where the to or from his ='='ernployetis proceeding of hisernploye6 on the premises woit< . employeels where Rule b. froximity of to enteror leavethe premises l-Oout or exclusive the of way by his employer customary means of ingress and & Engineein?co^Y egress;litoiloOocX tricc; aR no' L-26341'November27' lrrand [ule. ..c. Speiiat work-related while is charged where the employee ot his from or Place to waY on his or at his home or during emPloYment with some duty .or his' emPloYment ' special eirand connectedwith ^his uiiPfoYt"nt (Enaov' ECC' 135 SCRA
loaeY
t57

e. Shuttle Bus Doctrine - where the emptoyer, as incident to employment providesthe means of transportation to and from place of employment. f. Special Engagement Rule - where employee is injured while at recreation during a temporary cessation of work, atso clvers fleld trips, intramurals, outingswhen initiatedor sponsoredby emptoyer. Test Whether the recreationwas for the employee's exctusive benefit or whether the employer had some interestin the activity. Note: In the absence of special circumstancesenumerated_ above, an employee injuredin, goingto,'orcoming from, his place of work is NOT COMPENSABLE. 4. Incidents of Employment Doctrine Acts which are reasonablyincidentalto the employmentare deemed arisingout of such emptoyment, thus COMPENSABLE. (MCBEG) a. Acts of personalMinistration; b. Slight deviation from work from Curiosity; 9 Acts for the Benefit of the employer; d. Acts in fmergencies, e. Acts done to.further the Goodwillof the business; Acts of Ministration (M) Injuriesduring an intermissionor break for rest or refreshment arises in the course of the employment. are compensable. a. S/eeping c. Union Meeting Injury received at union meeting is NOT compensable,not an injury arising out of and in the courseof employment. Acts for the Benefit of Employer (B) Injury arising out of and in the course of his employment is compensable because employee's act enhances the prestige of the employerand results in increasedpatronageof the service of his employer. (Versoza v. Vda. Dela Cruz, GR no. L-7305, December 1953) 'rt Doing Work at Home Compensable when injury is sustained from work at home done pursuantto the terms of the contract,expressor implied,or pursuantto the direction or request of the emptoyer,EXCEPT when work at home is done voluntarilyby the employeefor his own convenience. Acts during Emergency (E) Injury sustainedwhile doing an act outsidethe scope of his usual duties where such act was reasonably necessary or incidental to his regular wor( particularly if an emergency existed, and although no emergency or reasonable necessity existed calling for {he performanceof such act, workman is alloryed compensationif it was done in the furtherance of the employer'sbusinessor pursuantto habit or custom. 5. Dual Purpose and Mingling of Purposes Doctrine Compensable when injury is sustained while on a trip undertaken for the benefit of the employereven in the coursethereofthe employeepursuesalso a personalpurpose. Test lf the work of the employeetends to create necessity for travel, employee is deemed in the course of employment, albeit time some
unintentionally Ilr.e fagt that an employee falls asleep while he is resting at a proper time andplace doesnotnecessarily depiive toi an llim of the right to compensation injuryreceived whileso sleeping, EXCEPT when his duties are of such nature as to require himto remain awake, as in the ' .case ' o f a w a t c - h m a.n , .:,,\._:,,, : O.tuncn Compensable when injuryorcunedduring lunchperiod wherethe eatingof the lunci on employeis premiseswas with the employeis knowldge and consent. express or implied, EXCEPT when it result an independent act of the employee frory hayngno conneclion withhisworkoi meal, or if the employee at thetimewas in a place wherehe hadno rightto oe.
Maj$ffi{ ffiffi*e
em
of injured.
Rlsks of his be at and one there of his
arising out rs so
158
@ollege of i[.sb $en @ebs BAR OPERATIONS 2011CENTRALIZED

7. Assault Compensableif assault against employee arising out of the employment, although act of the slayer, resultingfrom a deliberate is considered an accident or unforeseen injury and act of which the injured party is not legallyresponsible. 8. Violation of the Rule General Rule: Ads within the sphere of employment but carried out in violation of where: (CSl) the rules are compensable a. Violation of the rule itself did nof bring about the gause of the accident; b. There is serious doubt that prohibition was known to the emPloYeeiniured; and c. Violationwas not lntentionaland due to negligenceor carelessness. when injury !s Exception: Not compensable caused by: (WlN-Law) to injure or kill himself a. Willfulintention or another; b. lntoxicationby emPloYee; c. lotoriousnegligence; d. Otherwise excluded from coverage of Law. SICKNESS B. DISEASE AND OCCUPATIONAL Amount of Benefits: lncome benefit equivalent to 90% of hjs average daily salary credit subject to following: a. genefit shall not be less than P 10 or more than P 2OO,nor Paid lower than 120 daYs UNLESS injury or sickness requires more extensivetreatmentthat lasis beyond 120 days not exceeding oI onset 240 daYsfrom the shall in which case he disabiliiY, be Paidbenefitfor temPorary totll period' (Pl9 disabilityduring ex'tbnded days) 120 maximum P200P6r daY, b. Benefit shall be suspendedif emfloyee failed to submit monthly medical repart certifiedbY attending PhYsioan' Note: Relapse after recovery from illness shall be considered independentol ?M separate from the period covere{ OV.tfe original disability.Such period shall not be adled to the original disahility period' Where -after period of temporary total disability had ceased, he is found to .be sufferinil from a permanent partlal disability,he shall be entitledto an a\Marc based upon permanentpartialdisability' 2. Permanent Total DisabilitY As a result of the injury or sickness.the emptoyee is unable to perform any gainful o"Jup"tion for a continuous period EXCEEDING 12O DAYS' excePt as otherwise provided by commission;or any of the folloring: a. Complete loss of sight of both eyes; . , b. Loss of two limbs at or abovethe anKle or wrist: c. Permanent complete paralysis of two
d.
Sickness - any illnessdefinitelyacceptedas: DISEASE listed by the 1. OCCUPATIONAL or Commission, 2. CAUSED BY EMPLOYMENT, subject to proof that the risk of contracting the same is increased by wqrking conditions. Theory of Increased Risks - if the ailment is diseases, not includedin the list of occupational the claimant has the burden of provingthat the nature of the work increased the risk of contracting the disease. The degree of proof required is merely substantial evidence.
limbs; Brain injury resulting in incurable or i imbecilitY

Such the
:';'r,i'' :1t'.11ri";1t;,' .C: qtSABtUTtf ' ;.: \::"-' l f i''',''' 11'.,.'r' There is disability when there is a loss or diminutionof earning power because of actual absence from work due to the injury or illness arising out of anb in the course of business. Basis is the REDUCTION OF EARNING POWER. Categories of Disability: 1. Temporary Total DisabilitY As a result of injury or sickness; the employee is unable to perform any gainful occupation for a continuous period NOT EXCEEDING120 DAYS.
1s9

2. Permanent TotalDisability 3. Permanentpartial Disabiitv 4. Death C. FuneralBeneflts EXCLUSION FROM COMPENSATTON: EMPLOYEES,
Loss of work or inabilitv Loss of the use of anv particular anatomical to perform usual work Pgrt of his body
Loss of use.of part of the body @artia0
This act does not cover disability or death occasionedby the employee,s: (WN_Law) 1. [illful intentionto injure or kil himsetf or another Suicide, provoked death or attributableto one's own aggressionis not compensable. Suicide is compensable only when it results .,._.,, , frofi insanity resulting from compensable work injury; or occurs during delirium resultingfrom compensable disease. 2. lntoxication
inability to perform work (totat)
D. DEATH Death- lossof liferesulting frominjury or sickness.
DeathBenefits There is impairment of judgment, acts, Paidin the formof cashmonthly words and conduct; or one is not entirely pension: 1. For life to the primary' Oenenciaries, himself. for 5 years; ^ guaranteed 2. For not morethan60 months to secondary 3. lotorious negligence It signifiesa deliberateact of the employee beneficiaries: 3. Totalbeneflts to disregard his own personal safety. p15.000. shalioe at teast Beneficiaries: 1. Primary Beneficiaries: Dependent spouse untilremarries; 3 b. Dependent children (legitimate, tegitimated, natural borri,- Ieg;it adopted) 2. SecondaryBeneficianes; 3 iltegitimatechitdren; b. Legitimate descendants: c. Parents, grandparents/children
Disobedienceto rules or prohibitiondoes not in itself constitutenotoriousnegligence if no intention can be attributedto tfre injured to end his life. (paez v. CWW GR No. L-l8438, March 30, 1963)
4, Otherwiseprovidedby Law. Note: Liabitityof the ECC through SSSiGS|S shall be exclusive,and in place of all other liabilitiesof the employerto the employee,his oependents or anyone otherwise entifled to receive damages on behalf of the employeeor his dependents.
. ; . , . . . , : l j r " .. r .
\;-,.
coru'perusArroN BENEF|TS êylt-qte_rs; SUMMARIZED:

A. SeMces 1. Medical se;vices 2. Rehabilitationseryices a. physicat rehabilitation (e.g.physical . therapy) b. Vocational assessment (e.o vocational education) c. Vocational placem6nt (e.g. job placement) B. CashIncome genefits of pension dueto: 1. Temporary TotalDisabitity 160
has for his the
Ssn Febs Gollegeof Aarn 2011 CENTRALIZED BAROPERATIONS

3. Only for the first four (4) deliveries of legitimate spo{rse wrth whom he is cohabiting;and 4. Notify his employerof the pregnancyof his legitimatespouse and tne expecteddate of such delivery. Note: "Delivery' shall inor.rdechildbirthor any miscarriage.PatemrtyLeave Benefits shall not be convertible to cash in case it is not availed of. one-twelfth(1t12) of the 13* month pay and the cash equivalentof not more than five (5) days of service lncentive leaves, or a total of 2.5 days for everyyear of service. 3 the age of 65. (Compulsory Upon reaching Retirement)
RETIREMENT PLAN VIS-A-VISRETIREMENT PAY LAW A retirementplan in a companypartakesof the nature of a contract,with the employerand the employeeas the contractilg parties.R.A. No. where: 7641only appliesin a situation
COVERAGE 1. All employees in the private sector; ?. Part-time empoyees; 3. Employeesof seMce and other job contractors; ard 5. Domestic helpers or persons in the personal service of another. Note:Thelawdoesnotcover employees of: 1. Retail, seMce and agricultural es'tablishments or operations employing not more thanten(10)employees; and 2. Government and its politicalsuMivisions, including GOCC's,if they are coveredby the CivilService Lawandits regulations. WHEN TO RETIRE 1. Upon reaghing the retirement age establishedin the CBA or anv other Employment Contract. RetirementBenefits - as he may have earnedunderexistinglaws and any CBA andotheragreements, provided thal. a. lt shall not be less than those prescribed by the Retirement Pay Law; and b. lf such benefits are less,the employer shall pay the difference betweenthe amountdue the underthe Retirement Pay Law and that provided underthe plan. CBAor retirement
t:
There is no CBA or other aPPlicable employment contract providing for or for an employee; retirement benefits 2. There is a CBA or other aPPlicable employment contract providing for butit is far an employee, benefits retirement set for by law. belowthe requii-ements
A t.
does not include13' Evenif the company leaveas monthpay and serviceincentive partbf the salarybase,R.A No. 7641does a receives not applywherethe employee lump sum of 1% month'spay per year of grantsto its already The company service. morethan what the law retiringemployee gives which is % monthsalaryfor every year of service. (Oxales v. United lnc., G.R. No. 152991,July Laboratories, 21,2008)
DECLARATIONOF POLICY The State shall: (D2H2) 1. Value the Dignityof every individual: 2. Enhance the development of its fluman
2,:il0 :$e'b6ence. : of rbtiremerf ; plan';or.:CBA regarding retirement, employee upon reaching the age of 60 yearsor moreand has servedat least 5 years in the said establishment. (Optional Retirementi Retirement Benefits- equivalent to at least 1n month salary for everyyearof service; a fraction of at least 6 months being considered as onewholeyear.
woRK,
1. Note: Unless parties provide for broadei inclusions, the term "1/2 MONTH SALARY" shall mean 15 days + 2.5 days representing 151
4. fmployer 5. Employee, 6. leacher; 7. lnstructor; 8. lrofessor, 9. Coach; 10. Trainor; and 11. Any other person who, having guthority, influence or gqoralascendancy(AlM) over another. 12. Any personwho glirectsor inducesanother to commit any act of sexual harassmentas herein defined, or who cooperates in the comrhission thereof by another, without which it would not have been committed. shallalso be heldliableunderthis Act. WHEN Sexual Harassment .(wET) 1. flork-related; 2. lducation-related; and 3. fraining-relateo. punishable: B. ln an education or training environm6nt, sexual harassment is committed: (CEC-
rHo)
1. Against one who is under the Gare, custodyor supervision of the offender; 2. Against one whqse lducation, training, apprenticeship or tutorshipis entrusted to the offender; 3. When the sexual favor is made a Condition to the giving of a passing grade, or the granting of honors and scholarships,or the payment of a stipend, allowancd or*other benefits, privileges or consideratidns; and 4. When the sexual advancesresult in an or Qffensive lntimidating, lostile enMronmentfor the result, trainee or (lHO). apprentice Duty of the Employer or Head of Office in a Work-Related, Education. or Training Environment (Pre-Pro2 Com-Ois) It is the duty of the employeror head of office in a work-related,educationor training envirqlnment: 1. To prevdnt or deter the commissionof acts of sexualharassment; 2. To gide the procedures for the resolution, settlementor prosecution of acts of sexualharassment: 3. Promulgate appropriate rules and regulationsin consultationwith and jointly approvedby the employeesor students or trainee, through their duly designated representatives, prescribing the procedure for the investigationof sexual harassment cases and the administrative sanctions therefon 4 . Create a ggmittee on decorum and
WHERE Committed: In a work or trainingor educationenvironment. HOW Committed: General Rule: Demands,requestsor otherwise requires any sexual favor from the other regardlessof whether the demand, request or requirementfor submissionis accepted by the object of said ac.t. Specifically: A. In a work-related or emolovment environment, sexual harassmeni is committedwhen: (GRIJHO) 1. The sexual favor 6 made as a gondition: ?. tn thd hiringor in the employment; b. Re-employment or continued employment of said individual; or c. In grantingsaid individualfavorable compensation, terms, conditions, promotionsor privileges. _ 2. The gefusal to grant thl sexual favor
investigation of cases on sexual harassment to-increase understanding and prevent incidents of sexualharassment; and or tl post allq
The employeror head of office,educational e or
of
results in limiting, segregating or . the empJoyee which in anv .crassttytng i : deprive ;i iray would disbrimliiat'e; diminishemployment opportuhities or otherwise adversely affect said employee; 2 The above acts would lmpair the employee's rightsand privileges under exlsting laborlaws;and 4. The above acts would result in an lntimidating, flostile or effensive envlronment for the employee (lHO).
Slt*'t ##$&
Sha
or
head of
IS
partyand
152
of Leb 5er $e!e Goll.ege OPERATIONS BAR CENTRALIZED 2011

Independent Action for Darnages Nothing in this Act shall precludethe victim of work, education or training-+elated sexual harassment from inditutrg a separate and independent action for damages and other affirmative relief. Penalties Any person who violates the provisionsof this Act shall, upon corviction, be penalized by imprisonment of not less than 1 month nor more than 6 months, or a fine of not less than P10,000 nor more than P20,000, or both such fine and imprisonmentat the discretion of the coun. Prescription Any action arising from the violation of the provisions of this Act shall prescribe in 3 YEARS. a. Who is engagedin a work where he/she is directly under the responsibilityof his/her parents or legal guardian and where onlY members of the child's or familYare emPloYed; Public b. Whose ParticiPation in information is entertainment or essential. Collective Needs of the FamilY Such basic needs as food, shelter' light and medical, education, clothing, water, transportation and cither4.expenditureitems necessaryfor the survival bf the family of the child. Work Permit The permit secured by the employer,parent or' guardianfrom the DOLE for any child belory15 years of age in any work alloryed under R'A' 9231 Alternative Learning SYstem A parallel and comparable learning system rarhich provides a viable altemative to the existingformal educationsystem. Forced Labor and SlaverY The extraction of work or seryices from any person by means of enticement, violence, intimidationor threat, use of force or coerclon, including deprivation of freedom, abuse of debt bondageor authorityor moral ascendancy, deceotion. Normal DeveloPment of the Child The physical, emotional, mental, and spiritual growtfr of a child withih a safe and nurturing environmentwhere he/she is given adequate nourishment, care and protection and the at each to performtasks appropriate opportunity stage of developmentWhen State
I
(PSR) POLTCY It is hereby declared to be the policy of the state to: 1. Provide special lrotection to children from all forms of abuse, neglect, cruelty, exploitation and discrimination and other conditionsprejudicialto their development includingchild labor and its worst forms; 2. Provideganc-tions for their commission and carry out a programfor preventionand deterrence of and crisis intervention in situations of child abuse, exploitation and discrimination: and 3. Protect and Rehabilitate children gravely threatened or endangered by circumstances which affect or will affect their suMval and normal developmentand over which they have no control. DEFINIT|ON (D.O.6&U) OF TERI,/IS Child - Any personunder 18 years of age. Child Labor - Any wo-rk or economic activity '-
of the
performed uy a cfiitotlat'subjd&shirh/iier t6 anyfdrmof exploitation or is harmful to his/her

health and safety or physical, mental or psychosocial development. Working Child Aworking child is: 1. A child who is below eighteen(18) years of age, and is engaged in a work or economic activity that does not constitute child labor as defined in the immediately preceding sub-paragraph, and 2. A child belowfifteen (15) years of age:
General of age
Exceptions: 1. \Men a responsibilitY
the sole or legal 153
guardian and where only members of his/ her familyare employed. Conditions: a. That his/ her employment neither endangers his life, safety, health and morals, nor impairs his normal development, and b. That the parent or legal guardianshall provide the said minor child with the prescribed primary and/or secondary education. 2. Wherb the child's employment or participation in public entertainment or informationthrough cinema, theater, radio, television or other forms of media is essential. Conditions: a. That the employment contract is concludedby the child'sparentsor legal guardianwith the expressagreementof the child concerned,if possible,and the approl/alofthe DOLE. b. That the following requirement in all instancesare stricflycompliedwith: i. The employer shall ensure the protection, health, safety, morals and normal development of the chitd; ii. The employer shall institute measures to prevent the child's exploitationor discrimination taking into accountthe system and level of remunerationand the duration and ... anangementof workingtime; and iii. The employer shall formulate and implement,subject to the approval supervision of -competent "nq authorities, a continuingprogramfor training and skills acqriisitioir ot the chitd. iv. The child is provided with at least the mandatory elementary or secondary education. Note: In the above+xceRttonal cases. the emptoyer shall.rfirst, secure,\efcire' -engaging such child, A WORK pERMtT FROM 5O"fi, which shall ensure observance of the above requirements. For..purposes of this Article, the te;m ,,CH|LD,, shall apply to all persons under eighteen 11S; years of age. Hours of Work of a Working Child 1. A child below fifteen (15j years of ase mav b_e allowed to work toi n6t more tnan"twenl'v A child fifteenwho is (15) years of age and below eighteen(18) shall not be allo,vedto work for more than eight (8) hours a day, and in no case beyond forty (40) hours a week;and No child below fifteen (15) years of age shall be allowed to work between eight o'clockin the eveningand six o'clockin the morningof the followingday and no child fifteen(15) years of age and below eighteen (18) years of age shall be jllowed to work betweenten o'clock in the evening and six o'clockin the morningof the followingday. Hours of Work of a Worki
Not more than 8 hours Ownership, Usage and Administration of the Working Ghild's lncome 1. The wages, salaries, earnings and other income of the working child shall belong to him/herin ownership and shall be set aside primarily for his/her support, education or skills acquisition and secondarily to the collec{ive needsof the family. Condition: that not more than 20Yoot the child's income may be used for the collective needsof the family. 2. The income of the working child and/or the property acquired through the work of the child shall be administered by both parents. In the absence or incapacity of either
upa THE and

to
(20)hours a weekandmore tha; fd;iii hours at any given day.
for the control
ll have full
164
Ss't Gels @oltege of 1[ab 2OI1CENTRALIZED BAROPERATIONS

Prohibition against Worst Forms of Child Labor "Worstforms of dtild labof shall refer to anv of the following:(Sec 3) 1. All forms of slavery, as defined under the "Anti-Traffrckingof persons Act of 2003,'or practicessimilarto slaverysuch as sale and trafficking of chibren, debt bondage and serfdom and forced or compulsory labor, includingrecruitment of childrenfor use in armed conflid; or 2. The use, procuring,offeringor exposingof a.child for prostitution, for the production of pornography or pornographic for performances; or 3. The use, procuring,offeringor exposing ot a childfor illegalor illiot activrties, including the pi6ductionand traffickingof dangerous drugs and voldile substances pronibiteO underexistinglaurs,or 4. Work which, by its nature or the circumstancs in which it is carried out. is hazardous or likely to be harmful to the health, safety or morals of children. such that it: a. Debases, degrades or demeans the intrinsic worth and dignityof a child as a humanbeing,or b. Exposesthe child to physical,emotional or sexual abuse,or is found to be highly stressful psychologically or ."V prejudicemorals:or c. ls performedunderground, underwater, or at dangerousheights;or ' d. lnvolves the use of dangerous machinery,equipmentand tools such as power{riven or explosive power_ actuated tools: or e. Exposes the child to physical danger such as but not limitedto the dangerous feats of balancing, physicat strerigtn oi contortion, or which requiresthe manual transportof heavyloads;or f. ls performed in an unhealthv 't6 environment exposing the child hazardous working conditions, elements, substances, co-agents or , _ processes involvirlg ionizing, radiation, fire,' ' flammable sDbstan'ces. hoxious componentsand the like, or to extreme . temperatures, noise levels, or vibrations: or g. ls performed.underparticularlydifficult conditions; or h. Exposes the child to biologicalagents such as bacteria, fungi, viruses, protozoans, nematodes and other parasites;or i i. InVolves the manufactureor handling,of . explosives and other pyrotechnic products. Access to Education and Training for Working Children No child shall be deprived of FORMAL OR NON-FORMAL EDUCATION.In all cases of employment allowed in this Act, the EMPLOYERshall providea workingchildwith accessto at leastPRIMARYand SECONDARY EDUCATION. Prohibition on the Employment of Children in Certain Advertisements No child shall be employed,psa model in any advertisement,directly or iiiUirectly,promoting a lcoholicbeverages, intoxicati ng drinks, tobacco and its by-products, gambling or any form of violence or pornography. TRUSTFUND FROMFINESAND PENALTIES The fine imposed by the court shall be treated as a Trust Fund, administeredby DOLE and disbursed exclusively for the needs, induding the cost of rehabilitation and reintegrationinto the mainstream of society of the working childrenwho are victims of violationsof this Act. ant for the programs and projects that will preventacts of child labor. WHO MAY FILE A COMPLAINT ON CASES OF UNLAWFUL ACTS COMMITTED AGAINST CHILDREN (Sec. 8) 1. Offendedparty; 2. Parents or guardians; 3. Ascendantsor collateralrelativeswithin the third (3'd)degree of consanguinity; 4. Officer,social worker or representative of a Iicensedchild-+aringinstitution; Officer or social worker of DSWD: o - .Barangay chairman of the place where the violation occurred, where the child is residingor employed;or At least three (3) concerned, responsible citizenswhere the violationoccurred.
date of
165

Trial Terminatedby the court not later than 90 days from the date of filing of information.Decision on said case shall be renderedwithin a oeriod of 15 days from the date of submissionof the case. Exemptionfrom Filing Fees When the victim of child labor institutes a separate civil action for the recovery of civil damages,he/sheshall be exemptfrom payment of filingfees. Access to lmmediate Legal, Medical and PsychoSocial Services The working child shall have the right to free legal, medicaland psycho-social servicesto be provided by the State. computing the 13h month pay (Phitippine Duplicators,lnc. V. NLRC, 1t9951). However. COMMISSIONS OF MEDICAL 'basic do not form part of REPRESENTATIVES salary" and are not includedin the computation of the 13' month pay. Medical representatives are not salesmen because they do not effed any sale of article at all; additionalpayments received partookof the nature of proflt-sharing bonuses (Boie-Takeda Chemicals, lnc. V. Dela ' Serna,'[1993]). o COVERAGE A. Employers(Sec.3) General Rule; All ernployers are covered by this Act. 1r,..,.,: :.-.i;Exception: (DG-E-HP) such as: 1. Pistressedemployers a. Those which are currentlyincurring losses;or substantial b. In the case of non-profitinstitutions and organizations, where their declinedby income has consistently of more than fortY Percent (4oo/o) their normal income for the last two years. 2. The Qovernmentand any of its political subdivisions,including GOCCs except operatingessentially those corporations private subsidiarie of the as Government; 3. Employers already paying their employees 13'month pay or more in a calendar year or its lquivalent at the time of this issuance. 4. Employers of Household helpers and persons in the 'personal service of to such workers,and anotherin relation 5. Employersof thosewho are laid on: basis, a. Purelycommission b. Boundarybasis;
DEFINITION OF TERMS 13ft Month Pay - NOT less than one twelfth (1112)of the basic salary of an employeewithin year. a calendar Basic Salary All remunerations or earnings paid by an employerto an employeefor servicesrendered but may not include: 1. Cost*of-livingallowances; 2. Profit-sharingpayments; 3. All allovances and rnonetary benefits which are not considered or integrated as part of the regular or basic salary of the employeeat the time of the promulgation of the Decree on December 16, 1975 (San Miguel Corporationv. lnciong, [1981]). 4. Commissions, if it is not an integralpart of the basic salary (Philippine Duplicators, tnc v. NLRC,[1995]). Note: Overtime earnings.andthose not part of the basic salary are not included in computing thirteenthmonth pay. (SupplementalRules and Regulations lmpementing Pq851) However, these salary-related benetits (1.e. Cash equivalent ot unused vacation and sick feave credt'ts, overtime, premium, night differentialand holiday pay) should be included in the computationof the 13' month pay if by individudl or collective agreement,. company practice or policy, the same are treded as part of the basic salaryof the employees. SALESMEN'S COMMtSStON, comprising a pre{etermined percent of the,selling price of the goods by each salesmen, are inc,luded in the term "basic salary" for purposes of 166
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paid a standard amornt for every piece or unit of work prodrced that is more or less regularly reflicated without regard to the time spent in producingthe same. Piece-rde wskers are dassified into'. i. Piece<ate $orkers working inside the work prenises of the employer and are under the direct supervision of the employer,thus entitled to 13tn month pay and ii. Piece-+ate workers who work ' outside the work premises of the emfloyer \Yhce hours spent in the perfonnanceof ttpir work cannot be reasonable ascertained v/ith cerpl'*y and are not under the direct superyisionof the employer, thus NOT entitled to 13fr month pay (Labor Congress of the Philippines Y. NL"C). b. Employees General Rule: All RANK-ANHILE employees regardless of the amount of basic salary that they reeive in a month, if their employers are not otherwiseexempted from paying the .13h month pay. Such employees are entitled to the 13'' month pay regardless of their designation or employmentstatus, and irrespectiveof the method by. which their wages are paid, PROVIDED that they have worked for at least (1) one monthduringa calendaryear (Revised.Guidelineson the lmplementation of the 1f-Month Pay Law). Exceptions: (H-CR) 1. Household helpers 2. Employeespaid purely on Qommission basis 3. Employees already Receiving 13th month pay 4. $overnmentemployees Note: Part-Umeemployees are entitled to 13t month pay. ';'
r".1:r-1. ,.,,y.:,-i1r . 1.. ,\i' ;" ,i'.
Nonlnclusion in Regular Wage The benefits granted under this issuance shall not be credited as part of the regular wage of the employees for purposes of determining overtime and premium pay, fringe benefits, as well as oremium contributions to the State lnsurance Fund, social security, Medicare and privatewelfareand retirementplans. Rules on Certain Types of Employees 1 . Employees Paid bY Rpults Employeespaid on piece work basis are by law entitledto the 13th month.pay. Employeespaid a fixed or guaranteedwage olus commission are also entitled to the mandated 13th month pay, based on their total earningsduring the calendaryear, i-e.' on both their fixed or guaranteedwage and commission.
2. Those with MultiPle EmPloYers
Governmentemployees working part time in a p'rivate enterprise, including private educational institutions, as well as employeesworking in two or more private firms, whether on full or part time basis,are entitledto the required13th month pay from all their prtvate employers regardless of their total earnings from each oi' all their employers. Private School Teachers Private school teachers, induding faculty members of universitiesand colleges, are entitled to the required 13th month pay' regardless of the number of months they teich or are paid within a year; if they have renderedseryice for at least one (1) month within a year.
4. Resigned or lf resigned
before
:'!; '. ''ri1 :r.-.r..r
Manageribl employees may receive 13n month pay if such payment has been a companypractice. ' Time of Payment Shall be paid not later than December 24 of each year. An employer, however, may give to his employeesone half (112) of the required13' month pay before the opening of the regular school year and the other half on or before December.24of every year. The frequency of payment may be subject to agreement between employerand the collectivebargainingagent of the employees.
General only in
work;
service
the worker [2005]).

L67
LABOR tAW SOCIAL LEGISLATION who are paid a the country of destination of the misrant !39nt1ory Emptoyees guaranteed minimum wage or commissions workers, NO permit for deployment shaii be earnd are entiiledto 13h month pay OasLO-cn ' 'esiiittriu,r ,.":u9d. by the philippineOverseasEmployment earninss- (phitippine -Union Administration PilL (pOEA). vommercial
and lndustrial Workers NLRC,247 SCRA 256,t1sssl) v. Adjudication of Glaims , Non-paymentof 13frmonth pay shall be treated as money c/ams cases. of opinion,onhow to compute ll:te;jiff_eTnce 'i pay is non_strikeable and a :1,y, .monrn srflKe netd on that qround is illegal (tsalama Machine Works Corplv. NLRC, ngiin 14thMonth pay The granting of 14dn month pay is a The members of the pOEA governing board wno actuallyvoted in favor of an order ittowing the.deployment of migrantworkers without any of the aforementioned guarantees shall suffer the penalties of removal or dismissal from service with disqualiflcation to hold anv appointive publicofficefor5 years.
and is noi legatry llT:g:i9.t lt ,prerosative oemanctable. is basicallya bonus i, gratuitous in nature(Kanayapoini- uiiit "ni ,. NLRC,
[1989]
The State shall also allow thddeployment of overseas Filipino workers to: 1. Vessels navigatingthe foreign seas or to lnstallationslocated offshore or on high seas whose ownervemployers are compliant with international laws and standardsthat protect the rights of migrant workers. 2. Companies and contractors with international operations: provide4, That they , are compliant with standards conditionsand requirements,as embodieJ irrthe ernploymentcontractsprescribedbv the POEA and in accordance with internationall y-accepted standards. Termination or Ban on Deployment In pursuit of the NATIONAL INTEREST or when PUBLIC WELFARE so requires, the pOEA Governing Board, after consultaiion witn ine Oepartment of ForeignAffairs,may, at any time, terminate or imposea ban on the depoymentoi migiantworkers. lllegal.Recruitment (See Arf. 3AJ (CEC_TUH_ PRP-A)
DEFINITION OF TERMS Overseas Filipino Worker Herson who is to be engaged, is engaged or in a remunerated ac'tivilvlna 1T-b"9n 9?SaSed state of which he or she is not a citiz;;';;'"n vesseI navigating t ne roreig;'s;;; ;;"r. ::1r1 rnan a 1 governmentship used for mlilt"ry ot.non_ purposes or on an instatration ::Ilgr"i9l. pg1!g offshore or on the high seis; i" O" r""o INTERCHANGEABLY witn Ulenarrrr WORKER. Deployment of Migrant Workers I he State shall deploy overseas Filipino workers only in countries where the rignil :ot Filipino migrant workers are protected. The
as a gr;a;;t";;" 11t:-.lg are recognizeo il" th ng countryroitne prot"Jion or ' !.1I _ol "_l:ceivi gvelnas Fitipino workersir-C$ttilt ,.,- , . 1. -" .! lt"q. existing taoor and sociat Laws of migrantwork"rs ., pd1llg the rights z. tr ts. a stgnatory to multilateral gonveniions declarations or resolution.r"f"ting-iolh-; protection of migrant workers; ^ r. rr has concluded a. bilateral {greementor arrangement with the -government the rights of oversjas iiripino l:oL"^"lnS worKers; and 4. lt is taking positive,concrete -- to -![easures protect the rightsof migrant wofters. absence of clear showing !_oh,.'.Tthe_ that .a any of the aforementioned guarantees existsin ) 169
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or'to make a worker pay or acknowledge any amount greater than that actuaily receivedby him as a loan or advance; 2. To furnish or publish any false notice or information or document in relation to recruitment or employment; 3. To give any false notice, testimony, informationor documentor commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documentinghired wokers with the POEA, . which include the act of reprocessing workersthrough a job order that pertainsto nonexistentwork, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA 4. To induce or attem$ to induce a worker alreadyemployedto quit his employmentin order to offer him another unless the 's transfer designed to liberate a worker from oppessive terms and conditions oi employment; 5. To influence or attempt to influence any person or entity not to employ any worke: who has not applied for employmeni through his agency or who has forme.; joined or supported,or has contactedcr supported by any union or workers organization, 6. To engage in the recruitmentor placemi''-' of workeri in jobs harmful to publichea:rr, or moralityor to the dignity of the Repi:l,r of the Philippines; 7. To fail to submit reports on the status ct placement employment, vacancir.s remittance of foreign exchange earningr separationfrom jobs, departuresand siirt-i other matters or information as ffi?) l;i: required by tlie Secretary of Labor a:rc Employment; 8. To substitute or alter to the prejudice ;:' the worker, employmentcontracts appro!'e,:, . and verified by the Department of Labor and Employment from the time of actua signing thereof by the parties up to an': .including the_perio{ of lhe expirafion of th* same withont the approval of thr Department of Laborand Employment; 9. For an officer or agent of a recruitmento' placement agency to become an officer or member of the Board of any corporatior. engagedin travel agencyor.to be engagec directly or indirectlyin the managementi>i travel agency; ,, 10. To withhold or deny travel documents from applicant workers before departure f*r monetaryor financial considerations, or for any other reasons, other than thosr authorized under the Labor Code and it$ . implementing rules and regulations; 11. Failure to actually deploy a contracted worker Wthout valid reason as determined by the DePartment of Labor and Employment; 12. Failure to reimburse expenses incurred by the worker in connection with his for purposes and processing documentation of deployment, in cases where the deploymentdoes not actually take place withoutthe worker'sfault. lllegalrecruitment when committed by a syndicateor in large scale shall bs. considered an offense and involvingeconomicsafbotage; 13. To allow a non-Filipino citizen to head or manage a licensed recruitmenVmannirg agency. (See Sec. 6 of RA 8042) ln aCdition to the acts enumerated above' it shall atso be unlaMul fot any person or entity to commit the follouving prohibibd acts: 1. Grant a loan to an overseas Filipiro worker with interest EXCEEDING eight percent (8%) pgr annum, which will be used for placement baymeni of legal and allowable ie& and make the migrant worker issue, either personallyor through a guarantor or accommodation party, postdated checks in relationto the said loan; 2. lmpose a .compulsory and exclusive arrangementwhereby an overseas Filipino worker is required to avail of a loan only from specificalty designated institutions' entities or Persons; 3. Refuse to condone or renegotiate a toan incurred by an overseas Filipino worker after the latter's employment contract has been prematurely terminated through no fault of his or her orvn: 4. lmpose a -compulsory and exclusive arrangementwhereby an overseas Flllplno workJr is required to undergo health speciflcailY from examinations designated
es or
princi
o.
For agency activity workers' 7. For a. foreign Princi
9ra pass on the

!69
LAW LABOR SOCIAL LEGISLATION

overseasFilipinoworker or deduct from his or her salary the payment of the cost of insurancefees, premium or otherinsurance related charges, as provided under the compulsory worker's insurance coverage. (See Sec. 5of RA 10022) Note: The personscriminally liablefor the above offenses are the principals, accomplices and accessories.ln case of juridical persons, the officershaving ownership,control, management or direction of their business who are responsiblefor the commission of the offense and the responsibleemployees,/agents thereof shallbe liable. In the filing of casesfor illegalrecruitment or any of the prohibited acts under this section, the Secretaryof Labor and Employment,the pOEA Administrator or their duly authorized representatives, or any aggrieved person may initide the corresponding criminalactionwith the appropriate office. For this purpose, the affidavits and testimonies of ooeratives or personnel from the Department of Labor and Employment,POEA and other law enforcement agencies who witnessed the acts constituting the offense shall be sufficient to orosecute the accused. In the prosecution of offensespunishableunder this section, the public prosecutors of the DepartmentoJ Justice shall collaborate with the anti-illegal recruitmentbranch of the pOEA and, in certaincases,allow the POEA lavyers to take the lead in the prosecution. Penalties 1. Guilty of lllegal recruitment (12) years to (20) years imprisonment;1M to 2M pesos Fine 2. Guilty of lllegal recruitment constituting economicsabotage:Life imprisonmentand 2M to 5M pesosfine. PROVIDED, however, that the maximum penalty shall be imposed lf the person illegally ' years recruited is /ess.{hgn Bighleen (18) of age or committed-bib non-licensee or non-holder of authority. 3. Guilty of an! of the prohibitedacts: (6) years to (12) years imprisonment.and S00Kto 1M pesosfine. lf the offenderis an alien, he or she shall. in addition to the penalties h.ergin prescribed, be deported Wthout further proceedings. Note: In every case, convididn shall cause and carry the automatic revocation of the ,license or registration of the recruitmenU 170 filed by manning agency, lending institutions, training schoolor medical clinic. lllegal Recruitment Constitutes economic sabotage when: carriedout by a group of three (3) OR MORE persons conspiring or confederating with one another (Syndicated lllegal Recruitment) 2. Committed against three (3) OR MORE personsindividually or as a group. (LargeSca/e lllegal Recruitment) dd Prescription periodof illegal Under RA 8042, the prescriptive recruitment cases is five (5) years excepf illegal recruitment involvi ng economicsabotagewhich prescribes in twenty (20) years. Country-Team Approach and personnel All officers,representatives of the Philippine government posted abroad regardlessof their mother agenciesshall, on a per country basis, act as one country-team with a mission .unddr the leadership of the ambassador. The ambassadormay recommend to the Sec of DFA the recall of officers, representatives and personnelof the Philippine governmentposted abroad for acts inimicalto the nationalinterestsuch as, but not limitedto, failure to provide the necessary services to protectthe rightsof overseasFilipinos. Jurisdiction 1. LaborArbiter (NLRG)(S*. fi) AND EXCLUSIVE ORIGINAL JURISDICTION over money claims arising relationship or out of an employer-employee by virtue of any law or contracf involving Filipino workers for overseas deployment including claims for actual, moral, exemplaryand otherforms of damages. 90 calendar
,as for all
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officers,directors,or partnersshall.bejointly and SOLIDARILY liable with the agency. 2. POEA Retains ORIcINAL and EXCLUSIVE jurisdiction to hearand decide: a. All cases which are administrativein character, involving or arising out of violations of rules and regulations relatingto licensingand registrationof recruitment and employmentagencies or entities;and b. Disciplinay action cases and other special cases,which are administrative in character, involving employers, principals, contracting partners and Filipino migrant workers. Venue: POEA Adjudication Office of DOLE or POEA RegionalOfficeof the placewhere the complainant appliecl or \ /as recruiteC, at the OPTIONOF THE COMPLAINANT. 3. RTC Criminal action arising from illegal recruitmentshall be filed with the RTC of the provinceor city where the offensewas committed or where the offended party actually resides at the time of the commission of the offense.The court where the criminal actionis first filed shall acouire jurisdiction to the exclusion of othercourts. from participatingin the Philippine Overseas Employment Program and from recruitingand hiring Filipinoworkers until and unless it fully satisfiesthe judgmentaward. Repatriation General Rule: (Sec. 15) Repatriationof the worker and the transport of his personal belongings shall be the primary responsibility of the agency, which recruitedor deployedthe worker overseas The repatnation of remains and transoort of the personal belongingsof a decease?worker and all costs attendantthereto shall be borne by the pnnctpa and/orthe local agency. Exceptions: 1. lf the terminationof emdoyment ts due sole to the fault of the worker. the principaU or agencyshall nd in any manner employer be responsible for the repotriation of the and former and/pr his belongings; 2. In cases of war, epridemiq disaster or calamities,natural or man-made,and other .or sirnilar events, and where the principal the agencycannot be identified, recruitment Overseas Workers Welfare Administration (OWWA), in coordinationwith appropriate shall take chargeof agencies, international the repatriation. Mandatory Repatriation of Underage Migrant Workers (Sec.16) Upon discovery or being informed of the presence of migrant workers whose ages fall below the minimum age requirement for officersin the responsible overseasdeployment, the foreign seryice shall WITHOUT DELAY REPATRIATE said workers and advise the Department of Foreign Affairs through the fastest means of communicationavailaHe of such discoveryand other relevantinformation.
Effects of Termination of Overseas , Employment WTHOUT Just, Valid or Authorized Cause The worker shall be entitled to the full reimbursementof his placement fee and the deductions made with interest at 12o/o pl annum, plus his salaries for the unexpired portion of his employmentcontract or for three months for every year of the unexpiredterm, whicheveris less.(Sec. 10 ot RA 8042) Note: The phrase, "plus his salaries for the unexpiredportionof his employmentcontractor for three monthsfor everyyear of the unexpired rbeen term,',whichever'.is'fess' ias already. declared UNCONSTITT|ONAL in Serrano ys. Gallant Maritime Serylces, lnc. (C.R. No. 167614, March 24, 20O9), for being violative of the equal protection clauseand the due process clause of the Constitution. This means that an OFW who is illegally dismissed from work is now entitledto monetary benefits equal to his basic salary multiplied by the entire unexpired portion of his employmentcontract. IN CaSe of a FINAL AND EXECUTORY JUDGMENT against a foreign employer/principal,'it shall be AUTOMATICALL DISQUALIFIED, without'further proceedings,
lq 500,
the by
the mandatory repatriationas provided for in this Act. National Reintegration Center for Overseas Filipino Workers A National ReintegrationCenter for Overseas Filipinoworkers (NRCO) is hereby created in the Departmentof Labor and Employmentfor returning Filipino migrant workers which shall providea mechanismfor their reintegration into the Philippine society, serve as a promotion house for their localemployment, and tap their skillsand potentials for natonaldevelopment. 3. When a measure or practice of general appfication fails to provide for mechanismsto orTset or address sex or gender-based disadvantages or limitations of women, or women, more than men, are shown to have suffered the greater adverse effects of those measuresor oractices. 4. Discrimination lntersecting with or compounded by other grounds, status, or condition, such as ethnicity, age, poverty, or religion. Marginalization- a conditiondVhere a whole categoryof people is excludedfrom useful and meaningfulparticipation in political, economig socialand cultural life. Marginalized - refers to the disadvantaged or vulnerablepersons or groups, who are mostly living in povertyand have little or no access to land and other resources, basic social and economicservis. These include,but are not limitedto, women in the t6itowing[ sectors and groups: (SFU-WWM-
Policy of the State (PEDEAA) 1. Affirm the role of women in nation building; 2. Ensure the substantiveequality of women and men; 3. Eromote empowerment of women and pursueequal opportunities for women; 4. lnsure equal access to resources and to development resultsand outcome: 5. {bolish the unequal structures ano practicesthat perpetuate discrimination and inequalities; 6. Qevelop plans,' policies, programs, measures, and mechanisms to address discrimination and inequality in the economic, political,social, and cultural life of womenand men
rMc-sDs)
(ut1
Principles of Human and Rights of Women
Humanrightsare: 1. Universal and inalienable; 2. lndivisible; 3. lnherent to the dignity of every human being; 4. lnterdependent and interrelated. DEFINITION OF TERMS Women Empowerment - provisions of the law making opportunities, services and observance of human rights available and accessible to women.jThese enable womtn'to'participate to the political, economic, social and bultural development of the nation. Discrimination Against Women - (GAFI) 1 Any Gender-basd distindion, exclusibn, or restriction which impairs the exerclses bv women of human rights and fundamentjl freedoms; . 2..Aly.Ad or ornlssron, includingby law; policy, administrativemeasure, or pradice, that directiy or indirectfyexcludesor re,stids women in the recognitionand promotion of their rights and their access to and enjoyment of opportunities, benefits, or privileges. L72
1. $mall Farmers and RuralWorkers 2. fisherfolk 3. lrban Poor 4. Workersin the Formal Economy 5. Workersin the InformalEconomy 6. MigrantWorkers 7. lndigenous Peoples 8. Soro L Qhildren 10. Senior Citizens person 11. Disabled 12. Solo Parents Substantive Equality - full and equal enjoyment of rights and freedoms. lt encompassesde jure and de facfo equality and also equalityin outcomes.
Gender
for making
Ssx EeDs@ollege of Asb 2OI1 CENTRALIZED BAR OPERATIONS

women and men benefitequallyand inequality is not perpetuated. Temporary Special Measures - measures aimed at accelerating the de facto equality of women and men. /Vofe; lt is temporaryonly. The measures shall be abolishedonce equalityis achieved. Violence Against Women - any act of genderbased violence that results in, or is likely to result in, physical, sexual,or psychological harm or sufferingto women, includingthreats of such acts, coercion,or arbitrarydeprivationof liberty. whether occuning in public or in private life. lt includes pphysical,sexual, psychotogical, and economicviolenceoccuningin the family within the general community, perpetrated or condonedby the Sfafe,wherever it occurs: ano RA 9208 and 9262. Women in the Military - women in the military whether performingcombat ancl/ornoncombat functions. Social Protection- policies and programs reducing poverty and vulnerability aimed at enhancing the social status and rights of all women. HUMANRIGHTS OF WOMEN All rights in' the Constitution and under international instruments duly signed and ratifiedby the Philippines. Riglts of Every Woman to: (VEEDDS-HSMD) 1. Protection from all forms of Violence. including those committedby the State; 2. lqual treatment before the law, including the State's review and when necessary amendmentor repeal of existing laws thjt are discriminatory to women 3. Equal access and elimination of discrimination againstwomen in fducation, scholarships and training. 4. Protectionand securityin times of Disaster, calamities and otheF-qrisis si{uatiors; . 5. Participation and equitablerepresentation of women in the Qecision-making and policymaking processes, 6. Participationof women and girl-childrenin competitive and noncompetitivegports 7. Comprehensive, culture-sensitive, and gender-responsive Health services and programs covering all stages of a woman,s life cycle and which addresses the major causesof women'smortalityand morbidity 8. Women in the gilitary, police, and other similar seryices shall be provided with the same right to employmentas men on equal conditions nonderogatory 9. Nondiscriminatory and portrayalof women in $edia and film '10. Equal rights in all matters relating to $arriage and family relations RIGHTSOF WOMENIN THE MARGINALIZED SECTORS(FHEW-CRISP-WeGs) To guarantee al! civil, potitical, social, and economic ights recognized, promoted, and proteded under existing laws. 1. food security and resources for food production,inclu{ing-. equal rights in the titling of the lan# and issuance of stewardship contractsand patents; and 2. Localized, accessible, secure affordableHousing; 3. lducation, livelihood, credit, capital and ' technology; 4. Decent[ork, skills,training,scholarships; 5. Recoghition and preservation of Qultural identity and integrity not discrirninatoryto women; 6. Representationand participationin policybodies; makingor decision-making 1. Access to lnformationregardingpolicieson women, including programs, projects and fundingoutlaysthat atfectthem; 8. $ocial protection; 9. leace and development; 10. Services and interventionsfor women in or WEDC; especialty difficultcircumstances 11. Protectionof Girl-childrenagainst all forms of discriminationin education, health and ' nutrition, and and skills development; 12. Protection of women $enior citizens. Women in Especially Difficttlt Circumstances - (WEDC) victims and survivors of sexual and physical abuse, illegal recruitment,prostitution, trafficking,armed conflict,women in detention, victims and survivors of rape and incest. National Commission Women ( of Filipino
last12
Benefit: her
surgery
Note: Fili predude t remedies any of the those recently and children
women Women in Acf (Republic L73

Act No. 7192), the Speaa/ protedion of Children Against Child Abuse, Exploitation and DisciminationAcf (RepubticAct No. 7610). the Anti-SexualHarassment Act of 1995 (Republic Act No. 7877), the Anti-Rape Law of 1997 (Republic Act No. 8353), the Rape Victim Assisfance and Protection Act of 1998(Republic Act No. 8505), the Anti-Traff,cking in persons Act of 2@3 (Republic Act No. 9208) and the Anti- Violence Again$. Women atnd Their ChildrenAct of 2004 (RepubticAct No. 9262). lf violence has been proven to be perpetratedby agents of the State including,but not limited to, extrajudicialkillings, enforced disappearances, torture, and internal displacements, such shall be considered aggravating offenses with corresponding penalties depending on the severityof the offenses. 2. Special discounts in special programs on purchase of basic commoditiessubject to DTI and DA guidelines; 3. lducational assistance, as well as vocational or technicaleducation, in public and private schools through scholarships, grants, financial aids and other incentives, including support for books, learning materialand uniformallot/ance: 4. Qontinuanceof the SSS, GSIS and PAGlBlG beneflts; and 5. Provisionof fxpress lanes in all commercial and governmentestablishrnents; in absence thereof,priorityshall be givento them. Non-Entitlementof Privileges: The privileges may not be claimed if the personswith dlsabilityclaims a higher discount as may be granted by the commercial establishment and/or under other existing laws or in combination with other discountprogram. B. lndividual Persons Caring for and Living with Persons with Disability. Persens with disability shall be treated as dependents under Sec 35(A) of the National lnternatRevenue Code, and as such, individual taxpayerscaringfor them shall be accordedthe privileges grantedby the code insofar as having dependents under the same section are concemeo. C. Individuals or Nongovernmental lnstitutions establishing Hornes, Residential Comrnunities or Retirement Villages solely to suit the needs of Persons with Disability: {HR) 1. Realty tax Holiday for the first 5 years of operation;and 2. Priority in building and/or maintenance of provincial or municipal Roads leading to said homes.
APPLICABILITY: Personswith disability who are Filipinocitizens Persons with Disability Those suffering from restriction or different disabilities, as a result of a mental, physical or sensoryimpairment, to performan activitvin the manner or withinthe range considered normal for a humanbeing Proof for entiflement to privileges: 1. ldentificationCard issued Oy tne mayor or barangay captain where the diiabled personresides; 2. Passport; or 3. Transportation discount fare lD issued bv NationalCouncilfor the Welfare of Disabled Persons(NCWDp). PRIVILEGES AND INCENTIVES A. Of Persons with Disability: (20-SEGE) 1. At least20% discountfor the exclusiveuse or.qnjoymentof personswith disability from:
(Ha!!ejQ)
a.' lotel and' similar )oOging services, restaurantsand recreation centers: b. {dmission fees from theater, cinema, concerthalls and other place of culture, leisureand amusement; Prrchase of Medicinesin all drugstores; d . Medical and dental seMces in all governm"ent facilities, and private hospitals and , medical facilities (including professional fees of doctors) subject to DOH and pHtLHEALTt-i guidelines; e. Qomestic air and sea travel,..public railways,skyways and bgs fares
writing
174
5an frebs @olbqeof ilalr 2OT 1 CENTRALIZED BAROPERATIONS

2, Delitrerance from Vilification No indMdual, group or community shall executeany of these acts of ridiculeagainst personswith disabilityin any time and place which could intimidateor result in loss of self-esteemof the latterVilification (1) any utterance of slanderous and abusive statements against a person with disability; or (2) adivity in public whictr incites hatred towards serious . contem$ for, or severe ridicule of persons with disabilig-
0i'
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,, . SAfi FES$I *:*Lt-S$ *tf {-'8{w

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I

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LABOR LA.W LABOR STANDARDS

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Private Sectors that can participaie (pp-

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POEA has the power to: 1. Suspendor cancel license;and

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3ny act of {CETCHUp)

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bsuance of Searc*r Waiiant,or Warrant of

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period Rule Vll,

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-. r lessthan3 months on the :r+dkal training rc cut not"more than6

:'dical training on te job supplemented :,. related theoretical instruction

employ the leamer as regular employee if he desires upon completion

Workeris not corsidered an employee

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LABORLAW LABOR STANDARDS

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LABOR LAW LABOR STANDARDS

.the services ot an 6miloyeeoespite inE existence of a just or validiause.lt'likewise

Onelvhoseprimary duty One who is vested

and joining unioni, ceftification elections. colIectivebargaining)

Used only for purposes ol Book V (i.e. foming

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of Aqto Sun Fels @ollege 2011CENTRALIZED BAROPERATIONS

dle time is not working

LABOR LAW LABOR STANDARDS

Travel that keeps an employee away from homeovernight

senerafiy: nol compensable becauseit is a normal incident of employment

sf {.sb Ssn ffistu @ollege 2011CENTRALIZED BAROPERATIONS

:.criened Meal Break Upon Employees'

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+ 3o%of rest day& speciaih"tfi;i;;s,";:i

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under pfoylt"d thetaw(sec.2,R;;te ii'iix

and schedulesthe '" y"Tl,::l!"J_"-o subject to tnero[owinll I volecttve

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