PART ONE: PRELIMINARY PROVISIONS

CONSTITUTIONAL PROVISIONS ON LABOR

Article II, Section 18
The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote
their welfare.
Article XIII, Section 3
The State shall afford full protection to labor. (par. 1)
It shall guarantee the rights of all workers to:
a. Self-organization
b. collectie bargaining and negotiations
c. peaceful concerted actiities including the right to strike in accordance with law
d. Security of tenure
e. humane conditions of work
f. liing wage
g. participate in policy and decision-making process affecting their rights and benefits as may be
proided by law. (par.2)
The State shall promote the principle of shared responsibility between workers and employers. (par. 3)
The State shall regulate the relations between workers and employers. (par. 4)
CONSTITUTIONAL PROVISIONS ON AGRARIAN REFORM
Article II, Section 21
The State shall promote comprehensie rural deelopment and agrarian reform.
Article XIII, Section 4
The State shall! by law! undertake an agrarian reform program founded on the right of farmers and regular
farmworkers! who are landless! to own directly or collectiely the lands they till or! in the case of other farmworkers! to
receie a "ust share of the fruits thereof.###
CONSTRUCTION IN FAVOR OF LABOR
In interpreting the $onstitution%s protection to labor and social "ustice proisions and the labor laws and rules
and regulations implementing the $onstitutional mandate! the S$ adopts the liberal approach which faors the e#ercise
of labor rights.(Meralco vs. !"#, $.".o. %8%&3. '(l.12, 1)8))
&hile the $onstitution is committed to the policy of social "ustice and the protection of the working class! it
should not be supposed that eery labor dispute shall be automatically resoled in faor of labor. It is mandated that
there be e'ual protection and respect not only the laborer%s side but also the management and(or employer%s side. The
law! in protecting the rights of the laborer! authorizes neither oppression nor self-destruction of the employer. (#olgate
*al+olive *,ilippines vs -ple, $.".o. %3&81. '(ne 3.,1)88)
RULE-MAKING POWER
It is true that police power is the domain of the legislature! but it does not mean that such an authority may
not be lawfully delegated. The )abor $ode itself ests the *epartment of )abor and +mployment with rule-making
powers in the enforcement whereof. (*AS/I vs 0rilon)
APPLICABILITY OF THE LABOR CODE
The )$ applies to all workers! whether agricultural or non-agricultural! including employees in a ,oernment
corporation incorporated under the $orporation $ode. ,oernment corporations created by special -original. charter are
sub"ect to the $iil Serice )aw! while those corporations under the general corporation law are not within the coerage
of the $iil Serice )aw! but are sub"ect to the proisions of )abor $ode.
PART II: LABOR STANDARDS
ILLEGAL RECRUITMENT
Illegal recruitment shall mean any act of canassing! enlisting! contracting! transporting! utilizing! hiring or
procuring workers and includes referring! contract serices! promising or adertising for employment abroad! whether for
profit or not! when undertaken by a non-license or non-holder of authority contemplated under /rticle 01-f. of
2residential *ecree 3o. 445! as amended! otherwise known as the )abor $ode of the 2hilippines: 2roided! that any such
non-licensee or non-holder who! in any manner! offers or promises for a fee employment abroad to two or more persons
shall be deemed so engaged. Illegal recruitment is deemed committed b1 a s1ndicate if carried out by a group of three
-1. or more persons conspiring or confederating with one another. It is deemed committed in large scale if committed
against three -1. or more persons indiidually or as a group. (*eople vs. 0o+inga #orrales 2ort(na)
ILLEGAL
RECRUITMENT
REGULAR ECONOMIC
SABOTAGE
2rescriptie
2eriod
6 years 57 years
1
Imprisonment 2rision
mayor
)ife
imprisonment
8ine 577T-677T 9ore than 677T-
09
9a#imum penalty shall be imposed if the person illegally recruited is less than 0: years of age or committed by a non-
licensee or non-holder of authority.
PREMATURE TERMINATION OF CONTRACT UNDER R.A. 8042
Illegally dismissed employees are entitled to full reimbursement of his placement fee with interest at 05; per
annum 2)<S salary for une#pired portion of his employment => for three -1. months for eery year of the une#pired term
3,ic,ever is less.
?oweer! S$ clarified in the case of Marsa+an Manning Agenc1 vs. !"# ($.".o. 12%1)4. A(g.24, 1)))) that /
plain reading of section 07 clearly reeals that the choice of which amount to award an illegally dismissed =$&! i.e.
whether his salaries for the une#pired portion of his employment contract or 1 months% salary for eery year of the
une#pired term whicheer is less! comes into play -!5 3,en t,e e+plo1+ent contract concerned ,as a ter+ of at
least 1 1ear or +ore. This is eident from the words for eery year of the une#pired term which follows the salaries #
# # for three months. -6/7 /ffectivit1 date is '(l1 14, 1))4.
SOLIDARY LIABILITY OF PRINCIPAL/EMPLOYER AND AGENCY
<nder Sec. 07 of the 9&/ of 0@@6! The liability of the principal(employer and the recruitment(placement
agency for any and all claims under this section shall be 8oint and several.
APPRENTICESHIP LEARNERSHIP HANDICAPPED WORKERS
Apprentices,ip means practical training on the "ob supplemented by related theoretical instruction.
!earners,ip refers to hiring of persons as trainees in semi-skilled and other industrial occupations which are non-
apprenticeable and which may be learned through practical training on the "ob in a relatiely short period of time which
shall not e#ceed 1 months. 9andicapped 3or:ers are those whose earning capacity is impaired by age or physical or
mental deficiency or in"ury! disease or illness.
/22>+3TI$+S?I2 )+/>3+>S?I2
DURATION
3ot less than 1 months practical training on
the "ob but not more than Amonths
2ractical training on the "ob not to e#ceed 1
months.
CONCEPT
2ractical training on the "ob supplemented by
related theoretical instruction
?iring of persons as trainees in semi-skilled and
other industrial occupations which are non-
apprenticeable and which may be learned through
practical training on the "ob in a relatiely short
period of time.
ER!" COMMITMENT TO HIRE
3o commitment to hire &ith commitment to employ the learner as
regular employee if he desires upon completion of
learnership
EFFECT OF PRETERMINATION
&orker is not considered an employee )earner is considered regular employee after 5
months of training and dismissal is without fault of
learner
FOCUS OF TRAINING
?ighly skilled or technical industries B in
industrial occupation
Semi-skilled(industrial occupation -non-
apprenticeable.
APPROVAL
>e'uires *=)+ approal for alidity 3ot re'uired
E#HAUSTION OF ADM. REMEDIES IN CASE OF BREACH OF CONTRACT
2recondition for filing action 3ot re'uired
2
HOLIDAYS
SINGLE HOLIDAY RULE
proided that the employee:
worked!
was on leae with pay! or
was on authorized absence on t,e da1 prior to t,e reg(lar ,olida1.
SUCCESSIVE HOLIDAY RULE
the employee must be present the day before the scheduled regular holiday to be entitled to compensation to
bothC otherwise! he must work on the first holiday to be entitled to holiday pay on the second regular holiday.
(Sec.10, Rule IV, Book III, Implementing Rules)
DOUBLE HOLIDAY RULE
If unworked:
577; of the basic wage.
-3D: to gie employee only 077; would reduce the number of holidays under *= 3o. 1..
If worked
177; of the basic wage.
PAYMENT OF WAGES THROUGH ATM MACHINES RE$UISITES:
The /T9 system of payment is with the 3ritten consent of the employees concerned.
The employees are gien reasonable ti+e to 3it,dra3 their wages from the bank facility which time! if done
during working hours! shall be considered compensable hours worked.
The system shall allow workers to receive t,eir 3ages 3it,in t,e period or fre;(enc1 and in t,e a+o(nt
prescribed b1 t,e !abor #ode.
There is a bank or /T9 facility within a radi(s of 1<:+ to the place of work.
<pon re'uest of the concerned employee(s! the employer shall issue a record of pa1+ent of 3ages! benefits and
deductions for particular period.
There shall be no additional e=penses and no di+in(tion of benefits and privileges as a result of the /T9 system
of payment.
The e+plo1er s,all ass(+e responsibilit1 in case the wage protection proisions of law and regulations are not
complied with under the arrangement.
HOURS WORKED WHAT IT INCLUDES
/ll time during which an employee is re'uired to be on duty or to be at a prescribed workplaceC
/ll time during which an employee is suffered or permitted to workC
>est periods of short duration during working hoursC
9eal period of less than twenty-57. minutes! since it becomes only a rest period and is thus considered as work time
The reasonable time to withdraw their wages from the bank facility if done during working hours! if payment of
wages is through banks! /T9 or by check.
FACILITIES VS. SUPPLEMENTS
FACILITIES SUPPLEMENTS
items of e#pense necessary for the laborer%s and
his family%s e#istence and subsistence
constitute e#tra remuneration or special priileges
or benefits gien to or receied by the laborers
oer and aboe their ordinary earnings wages
2art of the wage Independent of the wage
*eductible from the wage not wage deductible
LEGAL RE$UIREMENTS BEFORE FACILITIES CAN BE DEDUCTED FROM WAGES
2roof must be shown that such facilities are customarily furnished by the tradeC
The proision of deductible facilities must be oluntarily accepted in writing by the employeeC and
The facilities must be charged at fair and reasonable alue.
DIFFERENCES AMONG %&'AN ORDINARY EMPLOYER-EMPLOYEE RELATIONSHIP %2' INDEPENDENT (OB CONTRACTING/
SUBCONTRACTING %)' PRIVATE RECRUITMENT AND PLACEMENT AGENCY %4' LABOR-ONLY CONTRACTING
In an ordinar1 e+plo1er<e+plo1ee relations,ip! there are only two parties inoled - the employer and the
employee. This relationship is established through a four-fold test! under which the employer: -*' *irectly e#ercises
control and superision oer the employee not only as to the results of the work but also as to the means employed to
attain this resultC -+' ?as the power to select and hire the employeeC -,' ?as the obligation to pay the employees his or
her wages and other benefitsC and --' ?as the power to transfer and dismiss or discharge employees.
In 8ob contracting > s(bcontracting, there are three parties inoled: The principal who decides to farm out a
"ob or serice to a subcontractorC the "ob contractor or subcontractor which has the capacity to independently undertake
the performance of the "ob or sericeC and the employees engaged by the "ob contractor or subcontractor to accomplish
the "ob or serice.
In "ob contracting or subcontracting! the four-fold test of employer-employee relationship should be satisfied by
the contractor or subcontractor in relation to the employee it engages to accomplish the contracted or subcontracted "ob
or serice. If the four-fold test is satisfied not by the "ob contractor or subcontractor but by the principal! the principal
then becomes the employer of the employees engaged to accomplish the "ob or serice. &hat e#ists is not "ob
contracting or subcontracting but a direct employer-employee relationship between the principal and the employees and
3
the "ob contractor becomes merely the agent of the principal or the subcontractor! the agent of his contractor! as the
case may be.
$ontracting or subcontracting shall be legitimate if the following conditions concur: -*.The contractor or
subcontractor carries on a distinct and independent business and undertakes to perform the "ob! work or serice on its
own account and under its own responsibility! according to its own manner and method! and free from the control and
direction of the principal in all matters connected with the performance of the work e#cept as to the results thereofC
-+.The contractor or subcontractor has substantial capital or inestmentC and -,. The agreement between the principal
and the contractor or subcontractor assures the contractual employees entitlement to all occupational safety and health
standards! free e#ercise of the right to self organization! security of tenure! and social and welfare benefits.
&hile a "ob contractor or subcontractor directly undertakes a specific "ob or serice for a principal! and for this
purpose employs its own workers! a private recr(it+ent or place+ent agenc1 cannot be a subcontractor. It simply
recruits workers for the purpose of placing them with another employer so that the workers recruited will not become
the 2>2/Es employees. /nd while a "ob contractor or subcontractor does not need authority from the *=)+ to undertake a
subcontracted "ob or serice! a 2>2/ needs an authority or license from *=)+ to legally undertake recruitment and
placement actiities.
9eanwhile! there is labor<onl1 contracting where the contractor or subcontractor merely recruits! supplies or
places workers to perform a "ob! work or serice for a principal! and the following elements are present: -*' The
contractor or subcontractor does not hae substantial capital or inestment to actually perform the "ob! work or serice
under its own account and responsibilityC and -+' The employees recruited! supplied or placed by such contractor or
subcontractors are performing actiities directly related to the main business of the principal. )abor-only contracting is
different from "ob contracting since the former is illegal and prohibited while the latter is legal and allowed.
EFFECTS OF A LABOR-ONLY CONTRACTING ARRANGEMENT
*. The contractor or subcontractor will be treated as the agent of the principal. Since the act of an agent is the act
of the principal! representations made by the contractor or subcontractor to the employees will bind the principal.
+. The principal will become the employer as if it directly employed the workers engaged to undertake the
contracted or subcontracted "ob or serice. It will be responsible to them for all their entitlements and benefits under
the labor laws.
,. The principal and the contractor or subcontractor will be solidarily treated as the employer.
-. The employees will become employees of the principal! sub"ect to the classifications of employees under /rticle
5: of the )abor $ode.
If the labor-only contracting actiity is undertaken by a legitimate labor organization! a petition for cancellation
of union registration may be filed against it! pursuant to /rticle 51@ -e..
A FAIR DAY!S WAGE FOR A FAIR DAY!S LABOR
The age-old rule goerning the relation between labor and capital! or management and employee of a Ffair dayEs
wage for a fair dayEs laborF remains as the basic factor in determining employeesE wages. If there is no work performed by
the employee there can be no wage or pay unless! of course! the laborer was able! willing and ready to work but was
illegally locked out! suspended or dismissed! or otherwise illegally preented from working (#alte= "efiner1 /+plo1ees
Association ?#"/A@ vs. Arillantes, 2%) S#"A 218)
WAGE ORDER
/n order issued by the >egional Tripartite &ages B 2roductiity Doard wheneer the conditions in the region so
warrant after inestigating and studying all pertinent facts and based on the standards and criteria prescribed by the )$!
the >egional Doard proceeds to determine whether to issue the same or not. It shall take effect after 06 days from the
its complete publication in at least one newspaper of general circulation in the region.
/ wage =rder issued by the Doard may not be disturbed for a period of 05 months from its effectiity and no
petition for wage increase shall be entertained during said period. /X#/*6I-: &hen $ongress itself issues a law
increasing wages.
WAGE DISTORTION
The $ourt summarizes the principles relating to wage distortion! namely:
-a. The concept of wage distortion assumes an e#isting grouping or classification of employees which
establishes distinctions among such employees on some releant or legitimate basis. This classification is reflected in a
differing wage rate for each of the e#isting classes of employees.
-b. &age distortions hae often been the result of goernment-decreed increases in minimum wages. There are!
howeer! other causes of wage distortions! like the merger of two companies -with differing classifications of employees
and different wage rates. where the suriing company absorbs all the employees of the dissoled corporation.
-c. Should a wage distortion e#ist! there is no legal re'uirement that! in the rectification of that distortion by
read"ustment of the wage rates of the differing classes of employees! the gap which had preiously or historically e#isted
be restored in precisely the same amount. In other words! correction of a wage distortion may be done by reestablishing
a substantial or significant gap -as distinguished from the historical gap. between the wage rates of the differing classes
of employees.
The reestablishment of a significant difference in wage rates may be the result of resort to grieance procedures or
collectie negotiations (ational 2ederation of !abor vs. !"#).
ENFORCEMENT POWER OF THE SECRETARY OF LABOR
2ower of the Sec. of )abor to compel employer to comply with labor standards upon finding of iolations
discoered in the course of the e#ercise of the isitorial power. /mong the powers are the power to: Issue $ompliance
=rders! issue &rits of +#ecution for the enforcement of orders! order &ork Stoppage(Suspension of =perations! and
conduct hearings within 54 hours.
4
STIPULATION AGAINST MARRIAGE %ART. &).'
It shall be unlawful for an employer:
to re'uire as a condition for employment or continuation of employment that a woman employee shall not get
married!
to stipulate e#pressly or tacitly that upon getting married a woman employee shall be deemed resigned or
separated!
to actually dismiss! discharge! discriminate or otherwise pre"udice a woman employee merely by reason of her
marriage.
/rticle 01A is not intended to apply only to women employed in ordinary occupations! or it should hae
categorically e#pressed so. The sweeping intendment of the law! be it on special or ordinary occupations! is reflected in
the whole te#t and supported by /rticle 016 that speaks of nondiscrimination on the employment of women. (#la(dine
de #astro Bialcita, et al. vs. *A!).
CLASSIFICATION OF CERTAIN WOMEN WORKERS
<nder /rt. 01:! /ny woman who is permitted or suffered to work! with or without compensation in any
nightclub! cocktail lounge! massage clinic! bar or other similar establishment! under the effectie control and superision
of the employer for a substantial period of time as determined by the Secretary of )abor shall be considered as an
e+plo1ee of s(c, establis,+ent for p(rposes of labor and social legislation.
CBA INCREASE VIS-/-VIS WAGE ORDER-MANDATED INCREASE
?aing entered into an agreement with its employees! an employer may not be allowed to renege on its
obligation under a collectie bargaining agreement should! at the same time! the law grant the employees the same or
better terms and conditions of employment. +mployee benefits deried from law are e#clusie of benefits arried at
through negotiation and agreement unless otherwise proided by the agreement itself or by law. (Me1ca(a1an #ollege
vs. 0rilon, $.". o. 81144, Ma1 %, 1)).).
&)
01
MONTH PAY
/dditional income based on wage re'uired by 2.*. :60 which is e'uialent to 0(05 of the total basic salary
earned by an employee within a calendar year.
9ay be gien anytime but not later than *ec. 54.
$oerage: /ll rank-and-file employees regardless of their designation or employment status and irrespectie of
the method by which their wages are paid! are entitled to this benefit! provided, that they hae 3or:ed for at
least one (1) +ont, d(ring t,e calendar 1ear.
It must always be in the form of legal tender. 8ree rice! electricity cash and stock diidends! $=)/ are 3=T
proper substitutes for the 01
th
month pay.
*ifference of opinion on how to compute the 01
th
month pay does not "ustify a strike.
3ote: 13
t,
Mont, *a1 is ta= e=e+pt.
PROPORTIONATE &)
01
MONTH PAY
/n employee who has resigned or whose serices were terminated at anytime before the time of payment of the
01
th
month pay is entitled to 01
th
month pay in proportion to the length of time he worked during the year! reckoned from
the time he started working during the calendar year up to the time of his resignation or termination from the serice.
(International Sc,ool of Speec, vs. !"# and M# Ma+(1ac)
PART III: LABOR RELATIONS
(URISDICTION
LABOR ARBITERS
-riginal and e=cl(sive 8(risdiction to hear and decide! within 17 calendar days:
0. ULP casesC
5. TERMINATION disputesC
1. If accompanied WITH A CLAIM FOR REINSTATEMENT those cases that workers may file inoling wages!
rates of pay! hours of work and other terms and conditions of employmentC
4. $laims for actual! moral! e#emplary and other forms of DAMAGES arising from employer-employee
relationsC
6. CASES ARISING FROM ANY VIOLATION OF ART 2.4 of this $ode! including 'uestions inoling the legality of
strikes and lockoutsC
A. +#cept claims for +mployees $ompensation! Social Security! 9edicare and maternity benefits! ALL OTHER
CLAIMS ARISING FROM EMPLOYER-EMPLOYEE RELATIONS! including those of persons in domestic or
household serice! inoling an amount e#ceeding 26! 777.77 regardless of whether accompanies with a
claim for reinstatementC and
G. MONETARY CLAIMS OF OVERSEAS CONTRACT WORKERS under the 9igrant &orkers /ct of 0@@6.
:. $laims of employees against GOCC!S WITHOUT ORIGINAL CHARTER and has been incorporated under the
$orporation $ode.
-NOTE: /lthough the proision speaks of +H$)<SII+ /3* =>I,I3/) J<>IS*I$TI=3 =8 labor arbiters! the cases
enumerated +a1 instead be s(b+itted to a vol(ntar1 arbitrator b1 agree+ent of t,e parties (nder Art. 2&2.
The law prefers oluntary oer compulsory arbitration..
5
NLRC DIVISION
-riginal and e=cl(sive7
0. $ases certified to it for compulsory arbitration by the Secretary of )abor under /rt. 5A1 K CERTIFIED $/S+SC
5. IN(UNCTION $/S+S under /rt. 50: and 5A4C /3*
1. CONTEMPT $/S+S
/=cl(sive appellate7
$ases DECIDED BY LABOR ARBITERS under /rt 50Gb of the )abor $ode and Sec 07 >/ :705-9igrant &orkers /ct.C
and
$ases DECIDED BY THE REGIONAL OFFICES OF DOLE IN THE E#ERCISE OF ITS AD(UDICATORY FUNCTION under
/rt 05@ of the )abor $ode oer monetary claims of workers amounting to not more that 26!777.77
BUREAU OF LABOR RELATIONS
-riginal and e=cl(sive
INTRA- union conflicts
INTER- union conflicts
all DISPUTES GRIEVANCES OR PROBLEMS ARISING FROM OR AFFECTING LABOR MANAGEMENT RELATIONS IN
ALL WORKPLACES WHETHER AGRICULTURAL OR NON-AGRICULTURAL.
-N203: The parties may howeer! by agreement! settle their differences by submitting their case to a oluntary
arbitrator rather than taking the case to the D)>..
NATIONAL CONCILIATION AND MEDIATION BOARD
(!sor!ed t"e concili#tion, medi#tion #nd volunt#r$ #r!itr#tion functions of t"e B%R.)
2(nctions7
8ormulate policies! etc. pertaining to effectie mediation and conciliation of labor disputes.
2erform preentie mediation and conciliation functions
$oordinate and maintain linkages with other sectors or institutions concerned with matters relatie to the
preention and settlement of labor disputes.
8ormulate policies! etc! pertaining to the promotion of cooperatie and non-adersarial schemes! grieance
handling! oluntary arbitration and other oluntary modes of dispute settlement.
/dminister oluntary arbitration program
2roide counseling and preentie mediation assistance
monitor and e#ercise technical superision oer Doard programs implemented in the regional offices.
2erform such other functions as may be proided by law or assigned by the Secretary of )abor.
GRIEVANCE MACHINERY
0. Interpretation and implementation of $D/
5. Interpretation and enforcement of company personnel policies
VOLUNTARY ARBITRATOR
0. <nresoled grieances from the ,rieance machinery:
a. Interpretation and implementation of $D/
b. Interpretation and enforcement of company personnel policies
5. &age distortion issues arising from the application of any wage orders in organized establishments
1. <nresoled grieances arising from the interpretation and implementation of productiity incentie
programs.
4. =ther labor disputes by agreement of the parties
MED-ARBITER
0. ?ear! conciliate! and decide representation cases
5. /ssist in the disposition of intra or inter-union disputes.
VOLUNTARY ARBITRATORS APPEAL OF DECISION
/ppeals from decisions of oluntary arbitrators may be filed with the $ourt of /ppeals! under >ule 41 of the
>eised >ules of $ourt.
PROHIBITIONS ON CERTIFICATION ELECTIONS
0. 0eadloc: bar r(le. / petition for certification election cannot be entertained if! before the filing of the petition for
certification election! a bargaining deadlock to which an incumbent or certified bargaining agent is a party! had been
submitted to conciliation or arbitration or had become the sub"ect of a alid notice of strike or lockout.
5. -ne<1ear bar r(le (#ertification 1ear bar). 3o petition for certification election may be filed within one year from
the date of a alid certification! consent! or run-off election or from the date of oluntary recognition
1. #ontract bar r(le. &hile a alid and registered $D/ of a fi#ed duration is subsisting! the D)> is not allowed to hold an
election contesting the ma"ority status of the incumbent union during the fie year term of the $D/ e#cept during the
si#ty day period immediately prior to the e#piration of the $D/.
4. egotiation bar r(le. / petition for certification election cannot be entertained if! before the filing of the petition
for certification election! the duly recognized or certified union has commenced negotiations with the employer in
accordance with /rt. 567 of the )abor $ode.
INSTANCES WHEN CERTIFICATION ELECTIONS ARE NOT SUSPENDED
6
1. despite the petition for the cancellation of union registration (Association of #o(rt of Appeals /+plo1ees v
2errer<#alle8a 2.3 S#"A 4)&)
2. when the employer filed the unfair labor charge against the union or its members (Aarrera v #I" 1.% S#"A 4)&)
3. when the complaining union is willing to undergo the risk of employer interference in a certification despite its
charge that the other participating labor unions are being aided or controlled by the company (6,e Standard
#igarette Cor:ersD Enion ?*!EM@ v #I" 1.1 *,il 12&)
4. when the certification election sought to be stopped by the union is fait accompli since the employees hae
articulated their choice as to who shall be their collectie bargaining agent (6E*AS<C26E v !ag(es+a 233
S#"A 4&4)
E#TENT OF THE RIGHT TO SELF-ORGANI4ATION
1. To form! "oin and assist labor organizations for the purpose of collectie bargaining through representaties of
their own choosing and
5. To engage in lawful concerted actiities for the same purpose- for their mutual aid and protection.
RIGHTS OF UNION MEMBERS
*olitical rig,t - the right to ote and be oted for! sub"ect to lawful proisions on 'ualifications and dis'ualifications.
0eliberative and 0ecision<Ma:ing "ig,t - the right to participate in deliberations on ma"or policy 'uestions and decide
them by secret ballot.
"ig,ts -ver Mone1 Matters - the right of the members:
a. against imposition of e#cessie feesC
b. right against unauthorized collection of contributions or unauthorized disbursementsC
c. to re'uire ade'uate records of income and e#pensesC
d. to access financial recordsC
e. to ote on officers compensationC
f. to ote on special assessmentC
g. to be deducted a special assessment only with the member%s written authorization.
"ig,t to Infor+ation - the right to be informed about:
the organization%s constitution and by-laws!
the collectie bargaining agreement! and labor laws.
MODES OF AC$UIRING LEGITIMACY FOR LABOR ORGANI4ATIONS
>egistration with the D)> -Independent <nion.
/ffiliation with a legitimate labor federation
REGISTRATION RE$UIREMENTS FOR LABOR ORGANI4ATIONS %*" *536-3- +7 DO 40-0)'8
0. /pplication for registration
5. /ttachments
name of the applicant labor union! its principal addressC
the name of its officers and their respectie addressesC
appro#imate number of employees in the bargaining unit where it seeks to operate! with a statement that it
is not reported as a chartered local of any federation or national unionC
the minutes of the organizational meeting-s. and the list of employees who participated in the said
meeting-s.C
the name of all its members comprising at least 57; of the employees in the bargaining unitC
the annual financial reports if the applicant has been in e#istence for one or more years! unless it has not
collected any amount from the members! in which case a statement to this effect shall be included in
the applicationC
the applicant%s constitution and by-laws! minutes of its adoption or ratification! and the list of the members
who participated in it. The list of ratifying members shall be dispensed with where the constitution
and by-laws was ratified or adopted during the organizational meeting. In such a case! the factual
circumstances of the ratification shall be recorded in the minutes of the organizational meeting-s..
(&"ese #re c#lled reportori#l re'uirements)
The application for registration of labor unions ###! shall be certified under oath by its Secretary or Treasurer! as
the case may be! and attested by its president.
The attachments must now be in one-0. original copy and two -5. duplicate copies which shall accompany the
application or notice! and submitted to the >egional =ffice or the Dureau.
/ prescribed registration fee must be paid before the issuance of the certificate of registration
RE$UIREMENTS BEFORE A FEDERATION CAN BE ISSUED A CERTIFICATE OF REGISTRATION
/side from the *99:;,*0;26! which must be accompanied with the re'uirements for registration of a labor registration!
the application should also be accompanied by the following:
0. 2roof of *<<;:;*0;26 2< *0 :3*"0 &0 :2,*:" or chapters! each of which must be a duly recognized sole and e#clusie
collectie bargaining agent in the establishment or industry in which it operates! supporting the registration of such
applicant federation or national unionC
5. The 6*53" *6- *--=3""3" 2< 013 ,259*6;3" >13=3 013 :2,*:" 2= ,1*903=" 293=*03 and the list of all the members
in each company inoled.
WHERE TO FILE APPLICATION FOR REGISTRATION
7
0. 8or registration of independent labor unions! chartered locals! worker%s associations shall be filed with the >egional
office where the applicant principally operates. It shall be processed by the )abor >elations *iision at the >egional
office.
5. /pplications for registration of federations! national unions or workers% associations operating in more than one
region shall be filed with the bureau or the regional offices! but shall be processed by the bureau.

ULP
TEST OF INTERFERENCE OR COERCION
&hether the employer has engaged in conduct which it may reasonably be said tends to interfere with the free
e#ercise of the employeesE right and it is not necessary that there be direct eidence that any employee was in fact
intimidated or coerced by the statements of threats or the employer if there is a reasonable interference that the anti-
union conduct of the employer does hae an aderse effect of self-organization and collectie bargaining.
SURFACE BARGAINING
It is defined as going through the motions of negotiating without any legal intent to reach an agreement. (St#nd#rd
("#rtered !#nk )mplo$ees *nion vs. (onfesor, +une 1,, -00.)
BOULWARISM
It occurs when:
a. the employer directly bargains with the employee disregarding the union.
b. +mployer submits its proposals and adopts a take it or leae it stand. This is not negotiation because the take it or
leae it stand implies threat.
TOTALITY OF CONDUCT DOCTRINE
The letter! e#hibits / and D! should not be considered by themseles alone! but should be read in the light of the
preceding and subse'uent circumstances surrounding. The letter should be interpreted according to the totality of
conduct doctrine! whereby the culpability of an employer%s remarks were to be ealuated not only on the basis of their
implicit implications! but were to be appraised against the background of and in con"unction with collateral
circumstances (6,e Ins(lar !ife Ass(rance #o., !td., /+plo1ees Association<A6E, et al. vs. 6,e Ins(lar !ife
Ass(rance #o., !td.).
DIFFERENT KINDS OF UNION SECURITY ARRANGEMENTS
(/X#/*6I-S 6- E!* - I6/"2/"/#/ - 69/ /M*!-5//SD /X/"#IS/ -2 69/I" "I$96 6- S/!2<-"$AIBA6I-)
#!-S/0<S9-* A$"//M/6 - the employer undertakes not to employ any indiidual who is not a member of the
contracting union and the said indiidual once employed must! for the duration of the agreement! remain a member of
the union in good standing as a condition for continued employment.
does not hae any retroactiity
apply only to new hires
)/()0&I12S:
a. employees belonging to any religious sect which prohibit affiliation of their members with any labor organization
are not coered by such agreementLThe free e#ercise of religious belief is superior to contract rights
(Fictoriano vs. /liGalde "ope Cor:ers).
b. members of the rial union are not coered by such arrangement.
S/MI<#!-S/0 S9-* A$"//M/6- has no re'uirement for the employee to remain as member of the contracting union in
good standing as a condition for continued employment.
EI- S9-* A$"//M/6 -stipulation whereby 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 remain as such in good standing
for continued employment for the duration of the $D/ Mtake note of the e#ceptions in the preceding number.N
MAI6/A#/ -2 M/MA/"S9I* #!AES/ - the agreement *=+S 3=T re'uire non-members to "oin the contracting union
D<T proides that those who are members thereof at the time of the e#ecution of the $D/ and those who may thereafter
on their own olition become members must for the duration of the agreement maintain their membership in good
standing as a condition for continued employment in the company for the duration of the $D/.
*"/2/"/6IA! S9-* A$"//M/6 ? an agreement whereby the employer merely agrees to gie preference to the
members of the bargaining union in hiring! promotion or filing acancies and retention in case of lay-off. The employer
has the right to hire from the open market if union members are not aailable.
A$/#5 S9-* A$"//M/6 - an agreement whereby employees must either "oin the union or pay to the union as
e#clusie bargaining agent a sum e'ual to that paid by the members.
This is -;=3,03- *@*;6"0 AFREE RIDERB 359:2733" who benefit from union actiities without contributing support to
the union! to preent a situation of non-union members enriching themseles at the e#pense of union members.
+mployee members of another(rial union are not considered free riders since when the union MagentN bids
to be the bargaining agent! it oluntarily assumed the responsibility of representing all the employees in the
appropriate bargaining unit.
8
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING AGREEMENT %CBA'
/ negotiated contract between a legitimate labor organization and the employer concerning:
a. wages!
b. hours of work! and
c. all other terms and conditions of employment in a bargaining unit! including mandatory proisions for
grieances and arbitration machineries.
(URISDICTIONAL PRECONDITIONS
1. *-SS/SSI- -2 69/ S6A6ES -2 MA'-"I65 representation by the employees% representatie in accordance
with any of the means of selection or designation proided for by the )abor $odeC
2. proof of MA'-"I65 "/*"/S/6A6I- -$ertification of the D)> that the representatie of the employees in the
sole and e#clusie bargaining agent haing won in a certification election.C and
3. a 0/MA0 6- AA"$AI under /rticle 567 -a. of the )abor $ode. (Hio: !o1 vs. !"#)
DURATION OF THE CBA:
&ith respect to the =39=3"360*0;26 *"93,0! the same lasts for 6 years
&ith respect to 2013= 9=2C;";26" Meconomic proisionsN! the same may last for a ma#imum period of 1 years after
the e#ecution of the $D/
RETROACTIVITY OF CBA BENEFITS
)abor laws are silent as to when an arbitral award in a labor dispute where the Secretary had assumed
"urisdiction by irtue of /rticle 5A1 -g. of the )abor $ode shall retroact. In general! a $D/ negotiated within si# months
after the e#piration of the e#isting $D/ retroacts to the day immediately following such date and if agreed thereafter!
the effectiity depends on the agreement of the parties. =n the other hand! the law is silent as to the retroactiity of a
$D/ arbitral award or that granted not by irtue of the mutual agreement of the parties but by interention of the
goernment. *espite the silence of the law! the $ourt rules herein that $D/ arbitral awards granted after si# months from
the e#piration of the last $D/ shall retroact to such time agreed upon by both employer and the employees or their
union. /bsent such an agreement as to retroactiity! the award shall retroact to the first day after the si#-month period
following the e#piration of the last day of the $D/ should there be one. In the absence of a $D/! the SecretaryEs
determination of the date of retroactiity as part of his discretionary powers oer arbitral awards shall control
-M/"A!#- v. I(is(+bing, $.". o. 12%4)8, 2ebr(ar1 22, 2...).
CERTIFICATION ELECTIONS
FOUR FACTORS IN DETERMINING THE APPROPRIATE BARGAINING UNIT:
the +H2>+SS &I)) => *+SI>+ of the employees -,lobe *octrine.C
the desires of all the employees are releant to the determination of the appropriate bargaining unit. The releance
of the wishes of the employees concerning their inclusion or e#clusion from a proposed bargaining unit is
inherent in the basic right to self organization
the S<DST/3TI/) /3* 9<T</)ITO I3T+>+ST factorC
prior collectie bargaining ?IST=>OC and
+92)=O9+3T ST/T<S! such as
a. temporary
b. seasonal! and
c. probationary employee
CERTIFICATION ELECTION
The process of determining by secret ballot the sole and e#clusie bargaining agent of the employees in an
appropriate bargaining unit! for purposes of collectie bargaining
CERTIFICATION C". CONSENT ELECTION
CERTIFICATION ELECTION CONSENT ELECTION
/. NATURE
- separate and distinct from a consent
election
- a separate and distinct process and has nothing to do
with the import and effect of a certification election
D. PURPOSE
- to determine the sole and e#clusie
bargaining agent of all the employees
in an appropriate bargaining unit for
the purpose of collectie bargainingC
- to determine the issue of ma"ority representation of
all the workers in the appropriate collectie bargaining
unit mainly for the purpose of determining the
administrator of the $D/ when the contracting union
suffered massie disaffiliation but not for the purpose of
determining the bargaining agent for purposes of
collectie bargaining.
DIRECT CERTIFICATION
9
The process whereby the 9ed-/rbiter directly certifies a labor organization of an appropriate bargaining unit of
a company after a showing that such petition is supported by at least a ma"ority of the employees in the bargaining unit.
IT IS NO LONGER ALLOWED. %EO &&&'
VOLUNTARY RECOGNITION
The process whereby the employer recognizes a labor organization as the e#clusie bargaining representatie of
the employees in the appropriate bargaining unit after a showing that the labor organization is supported by at least a
ma"ority of the employees in the bargaining unit.
RE-RUN VS. RUN-OFF ELECTIONS
RE ? RUN ELECTION RUN ? OFF ELECTION
?eld in two instances:
if one choice receies a plurality of ote
and the remaining choices results in a
tieC
if all choices receied the same number of
otesC
In both instances! the 3= <3I=3 is
also a choice
$onducted when none of the choices! including the
choice of 3o <nion! receies a ma"ority of the alid
ote cast. This presupposes no less than three
competing choices. In this situation! an election is
conducted between the union choices receiing the
largest and the second largest number of the alid
otes cast.
A ASSUMPTION ORDER.B OF THE SECRETARY ITS LEGAL IMPLICATIONS
<nder /rt. 5A1-g. of the )abor $ode! such assumption shall hae the effect of automatically en8oining the
intended or impending strike or lockout as specified in the assumption order. If one had already taken place at the time
of assumption! all striking or lockout employees shall i++ediatel1 ret(rn to 3or: and the employer shall immediately
resume operations and re<ad+it all workers under the same terms and conditions preailing before the strike or lockout.
The Secretary of )abor and +mployment may seek the assistance of law enforcement agencies to ensure compliance with
this proision as well as he may issue to enforce the same. The mere issuance of an assumption order by the Secretary of
)abor automatically carries with it a return to work order! een if the directie to return to work is not e#pressly stated
in the assumption order. Those who iolate the foregoing shall be sub"ect to disciplinary action or een criminal
prosecution.
<nder /rt. 5A4 of the )abor $ode! no strike or lockout shall be declared after the assumption of "urisdiction by
the Secretary.
2ower of Sec. of )abor is plenary and discretionary. (St. !(:eDs Medical #enter vs. 6orres, 2) '(ne 1))3
TESTS IN DETERMINING THE LEGALITY OF A STRIKE
0. *(rpose 6est -bargaining deadlock and(or unfair labor practice.
#o+pliance 3it, *roced(ral and s(bstantive re;(ire+ents of la3
notice of strike
17(06-day cooling-off period
strike ote
G K day strike ban
1. Means e+plo1ed test - / strike may be legal at its inception but eentually be declared illegal if the strike is
accompanied by iolence which iolence is widespread! perasie and adopted as a matter of policy and not merely
iolence which is sporadic which normally occur in a strike area.
The three tests must concur. 3on-compliance with any of the aforementioned re'uisites renders the strike
illegal.
STRIKERS WHO ARE NOT ENTITLED TO REINSTATEMENT
U6;26 2<<;,3=" who knowingl$ p#rticip#te in #n illeg#l strikeC and
any "0=;D3=/E6;26 535+3= who knowingly p#rticip#tes in t"e commission of illeg#l #cts during t"e strike.
Those union members who "oined an illegal strike but hae not committed any illegal act shall be reinstated but
without any backwages.
DEFIANCE OF RETURN TO WORK ORDER IN A STRIKE CASE WHICH IS UNDER ASSUMPTION OF (URISDICTION ITS
IMPLICATIONS
In the case of 6elef(n:en Se+icond(ctors /+plo1ees Enion 22C v. #A, $.". o. 143.13<14, 0ece+ber 18,
2..., the Supreme $ourt held that the strike of the <nion cannot be iewed as anything but illegal for haing been
staged in open and knowing defiance of the assumption and return-to-work orders. The necessary conse'uence thereof
are also detailed by the Supreme $ourt in its arious rulings. In Marcopper Mining #orp. v. Arillantes (244 S#"A 4)4),
the ?igh Tribunal stated in no uncertain terms that -
by staging a strike after the assumption of "urisdiction or certification for arbitration! workers forfeited
their right toC be readmitted to work! haing abandoned their employment! and so could be alidly replaced.
CONFIDENTIAL EMPLOYEES
10
$onfidential employees who are /)S= rank and file employees cannot form! "oin! or assist unions if they assist in
a confidential capacity or hae access to the confidential matters of persons who e#ercise managerial functions in the
field of labor relations. Dy the ery nature of their functions! they assist and act in a confidential capacity to! or hae
access to confidential matters of! persons who e#ercise managerial functions in the field of labor relations. /s such! the
rationale for the ineligibility of managerial employees to form! assist or "oin a labor union e'ually applies to them.
In A(lletin *(blis,ing #o., Inc. vs. 9on. A(g(sta Sanc,eG,144 S#"A &28 ?1)8&@ the $ourt elaborated on the
rationale for such inhibition in that! if the managerial employees would belong to! or be affiliated with a <nion! the
latter might not be assured of their loyalty to the <nion in iew of eident conflict of interests. The <nion can also
become company-dominated with the presence of managerial employees in <nion membership.F
This also holds true for confidential employees such as accounting personnel! radio and telegraph operators!
who haing access to confidential information! may become the source of undue adantage. Said employee-s. may act as
a spy -ies. of either party to a collectie bargaining agreement. This is especially true in the present case where the
petitioning <nion is already the bargaining agent of the rank-and-file employees in the establishment. To allow
confidential employees to "oin the e#isting <nion of the rank-and file would be in iolation of the terms of the $ollectie
Dargaining /greement wherein this kind of employees by the nature of their functions(positions are e#pressly e#cluded.
(*,ilips vs. !"#, $.". o. 88)4%, '(ne 24, 1))2).
GROUNDS FOR THE DECLARATION OF STRIKE
deadlock in collectie bargaining -ECONOMIC.C and(or
5. unfair labor practices -POLITICAL.
ILLEGAL STRIKES
A. SI6<0-C S6"IH/ - is characterized by a temporary work stoppage of workers who thereupon seize or occupy
property of the employer or refuse to acate the premises of the employer. I!!/$A!< amounts to a criminal act because
the employees trespass on the premises of the employer.
B. CI!0#A6 S6"IH/- is a work stoppage that iolates the labor contract and is not authorized by the union. I!!/$A!< It
is not alid because it fails to comply with certain re'uirements of the law! to wit: notice of strike! ote! and report on
strike ote.
C. S5M*A69/6I# S6"IH/S- are work stoppages of workers of one company to make common cause with other strikers of
other companies! without demands or grieances of their own against the employer. I!!/$A! < because there is no labor
dispute between the workers who are "oining the strikers and the latter%s employer.
D. S/#-0A"5 S6"IH/S- are work stoppages of workers of one company to e#ert pressure on their employer so that the
latter will in turn bring pressure upon the employer of another company with whom another union has a labor dispute.
I!!/$A!< because there is no labor dispute inoled.
E. JC/!$A $ AA5AK I!!/$A! because it is a political strike and therefore there is neither a bargaining deadlock nor
any <)2. It is a political rally.
SECURITY OF TENURE
The constitutional right granted the employee! that the employer shall not terminate the serices of an
employee e#cept for "ust cause or when authorized by law.
COMPUTATION OF BACKWAGES
Dackwages shall coer the period from the date of dismissal of the employee up to the date of actual
reinstatement.
The base figure to be used in the computation of backwages due to the employee should include not "ust the
basic salary! but also the regular allowances that he had been receiing such as the emergency liing allowances and the
01
th
- month pay mandated by the law (0#r#mount Vin$l 0roduct (orpor#tion vs. 2%R()! transportation allowances!
acation! serice incentie leae and sick leae.
8acilities should not be included in the computation of backwages for the reason that such are gien free! to be
used only for official tour of duty and not for personal use.
STRAINED RELATIONS PRINCIPLE
The rule is that strained relations may be inoked only against employees whose positions demand trust and
confidence! or whose differences with their employer are of such nature or degree as to preclude =3;6"0*035360
(Marana3 9otels vs. #A).
REINSTATEMENT
>estoration of the employee to the state from which he has been un"ustly remoed or separated without loss of
seniority rights and other priileges.
0. ACTUAL OR PHYSICAL REINSTATEMENT- the employee shall be admitted back to work
5. PAYROLL REINSTATEMENT- the employee is merely reinstated in the payroll.
KINDS OF EMPLOYMENT
1. "/$E!A" /M*!-5M/6 - one wherein an employee is engaged to perform actiities which are usually necessary or
desirable in the usual business or trade of the employer.
11
2. #ASEA! /M*!-5M/6 K one wherein an employee is engaged to perform actiities which are not necessary or
desirable in the usual trade or business of the employer.
3. *"-'/#6 /M*!-5M/6< employment is fi#ed for a specific pro"ect or undertaking the completion of which has been
determined at the time of the engagement of the employee.
4. 6/M*-"A"5 /M*!-5M/6 -" /M*!-5M/6 2-" A 2IX/0 S*/#I2I# */"I-0 - one wherein an employee is engaged
to work on a specific pro"ect or undertaking which is usually necessary or desirable in the usual business or trade of the
employer! the completion of which has been determined at the time of the engagement of the employee.
4. S/AS-A! /M*!-5M/6 - one wherein an employee is engaged to work during a particular season on an actiity that
is usually necessary or desirable in the usual business or trade of
&. *"-AA6I-A"5 /M*!-5M/6 K Shall not e#ceed A months unless coered by an apprenticeship agreement stipulating
a longer period. Such period is needed to determine the fitness for the "ob, i .e., the time needed to learn the "ob. It is
the period during which the employer may determine if the employee is 'ualified for possible inclusion in the regular
force.
FI#ED PERIOD EMPLOYMENT LEGALITY
+mployment that will last only for a definite period! as agreed by the parties! is not illegal per se or against
public policy een if this kind of employment is not mentioned in /rt. 5:7 of the )abor $ode. Such may be "ustified
under the $iil $ode. It can refer to fi#ed-term employment contracts or those to which the parties by free choice hae
assigned a specific date for termination. It should be shown that the period was oluntarily agreed upon by the parties.
This is the substance of the ruling in Arent Sc,ool Inc vs. Ba+ora, $.". o. 484)4)
EFFECT IF PROBATIONARY EMPLOYEE IS ALLOWED TO WORK BEYOND . MONTHS
If the probationary employee is allowed to work beyond the period of A months or the agreed probationary period!
said employee becomes a regular employee by operation of law. <nder the )abor $ode! an employee who is allowed to
work after a probationary period shall be considered a regular employee. -/rt. 5:0..
(UST CAUSES FOR DISMISSAL
0. Serious MISCONDUCT OR WILLFUL DISOBEDIENCE by the employee of the lawful orders of his employer or
representatie in connection with his workC
3isconduct4 transgression of some established and definite rule of action! a forbidden act! a dereliction of
duty! willful in character! and implies wrongful intent and not mere error in "udgment. -*ept. of )abor
9anual! Sec. 4161.70.
5. ,ross and habitual NEGLECT by the employee of his dutiesC
1. FRAUD OR WILLFUL BREACH by the employee of the trust reposed in him by his employer or duly organized
representatie
8raud must be committed against the employer or his representatie and in connection with the employee%s
work. -*ept. of )abor 9anual! Sec. 4161.70 M1N.
4. $ommission of a CRIME OR OFFENSE BY THE EMPLOYEE AGAINST THE PERSON OF HIS EMPLOYER or any immediate
member of his family or his duly authorized representatieC and
(onviction or prosecution is not re'uired.
6. =ther causes ANALOGOUS to the foregoing.
/ cause must be due to the oluntary or willful act or omission of the employee. (2#dur# v. Benguet
(onsolid#ted, 5.R. 2o. %416670)
AUTHORI4ED CAUSES OF TERMINATION BY THE EMPLOYER
&. installation of labor-saing deices %AUTOMATION'
2. REDUNDANCY -superfluity in the performance of a particular work.
redundancy! for purposes of the )abor $ode! e#ists where the serices of an employee are in e#cess of what is
reasonably demanded by the actual re'uirements of the enterprise. (8is"ire 9ile (o. Inc. vs. 2%R()
). RETRENCHMENT to preent losses -there is e#cess of employees and employer wants to preent financial losses..
>e'uirements:
-a. substantial losses which are not merely de minimis in e#tentC
-b. imminence of such substantial lossesC
-c. retrenchment would effectiely preent the e#pected and additional lossesC
-d. the alleged losses and e#pected losses must be proen by sufficient and conincing eidence.
4. closing or CESSATION OF OPERATION of the establishment or undertaking <3)+SS the closing is for the purpose of
circumenting the proisions of the )abor $ode.
F. DISEASE
a. the disease is incur#!le wit"in , mont"s and the continued employment of the employee is pro"i!ited !$
l#w or pre:udici#l to "is "e#lt" #s well #s to t"e "e#lt" of "is co4emplo$ees
b. with a certific#tion from public heath officer that the disease is incurable within A months despite due
medication and treatment.
TERMINATION BY EMPLOYEE
CI69-E6 'ES6 #AES/- by sering a WRITTEN NOTICE on the employer at least one month in adance. The employer
upon whom no such notice was sered may hold the employee liable for damages.
CI69 'ES6 #AES/ - /n employee may put an end to establish WITHOUT SERVING ANY NOTICE on the employer for any
of the following "ust causes:
12
0. SERIOUS INSULT by the employer or his representatie on the hour and person of the employeeC
5. Inhuman and UNBEARABLE TREATMENT accorded the employee by the employer or his representatieC
1. $ommission of a CRIME OR OFFENSE by the employer or his representatie against the person of the employee
or any of the immediate members of his familyC and
4. =ther causes ANALOGOUS to any of the foregoing.
DISMISSAL PRESENCE OF (UST/AUTHORI4ED CAUSE AND DUE PROCESS
8our possible situations under Agabon vs. !"#, ove+ber 1%, 2..47
1. -0.If dismissal is for a "ust(authorized cause and due process was obsered- dismissal is alid and employer will
not suffer any liability.
2. -5.If dismissal is without "ust(authorized cause but due process was obsered K dismissal is illegal! apply /rt 5G@
regarding reinstatement and backwages.
3. -1.If dismissal is without "ust(authorized cause and without due process- dismissal is illegal! apply /rt. 5G@
regarding reinstatement and backwages.
4. -4. *ismissal is for "ust(authorized cause but due process was not obsered K *ismissal is alid. ?oweer!
Sanctions must be imposed on the employer. Such sanctions! must be stiffer than that imposed in Cenp,il.
<nder the C/*9I! 0-#6"I/! if the serices of the employee was terminated due to a "ust or authorized cause
but the affected employee%s right to due process has been iolated! the dismissal is legal but the employee is entitled to
da+ages b1 3a1 of inde+nification for the iolation of the right.
S/""A- vs. IS/6A 30. *:. abandoned the &enphil doctrine and ruled that if the employee is dismissed under
"ust or authorized cause but the affected employee%s right to due process has been iolated! his dismissal becomes
;63<<3,0E*:. Therefore! the employee is entitled to backwages from the time he was dismissed until the determination of
the "ustness of the cause of the dismissal.
The most recent case of A$AA- vs. !"# abandoned the Serrano doctrine and REINSTATED THE WENPHIL
DOCTRINE. The sanctions! howeer must be stiffer than that imposed in &enphil.
REPUBLIC ACT NO. G.4& APPLICATION TO EMPLOYEES COVERED WITH A VALID RETIREMENT PLAN RETROACTIVE
EFFECT
The said law intends to gie the minimum retirement benefits to employees not entitled thereto under
collectie bargaining and other agreements. Its coerage applies to establishments with e#isting collectie bargaining! or
other agreements or oluntary retirement plans whose benefits are less than those prescribed under the proiso in
'uestion.
The said law is a curatie social legislation! which! by their nature! may be gien retroactie effect! unless it
will impair ested rights. It has a retroactie effect to include in its coerage the employees% serices to an employer
rendered prior to its effectiity. It applies to employees in the employee of employers at the time the law took effect
and who are eligible to benefits under that statute (M!IE vs. !"#, $.". o. 141&%3, -ctober 1%, 2..1).
PART FOUR: SPECIAL LAWS
SSS COVERAGE:
#o+p(lsor17
0. $ompulsory upon all employees not oer A7 years of age and their employers
5. In case of domestic helpers! their monthly income should not be less than one thousand pesos
1. $ompulsory upon such self- employed persons as may be determined by the $ommission including but not
limited to the following -Sec @-/.: /ll self employed professionals
a. 2artners and single proprietors
b. /ctors and actresses directors! scriptwriters and news correspondents who do not fall within the definition
of the term employee in Section : -d. of this /ct
c. 2rofessional athletes! coaches! trainers! and "ockeys
d. Indiidual farmers and fishermen
e.
Fol(ntar17
0. Spouses who deote full time to managing the household and family affairs! unless they are also engaged in
other ocation or employment which is sub"ect to mandatory coerage! may be coered by the SSS on a
oluntary basis.
5. 8ilipinos recruited by foreign based employers for employment abroad may be coered by the SSS on a oluntary
basis
1. +mployees separated from employment may continue to pay contributions to maintain his right to full benefits
-Sec. 00.
4. Self-employed with no income -00-/.
A1 Agree+ent7
/ny foreign goernment! international organization! or their wholly-owned instrumentality employing workers in the
2hilippines! may enter into an agreement with the 2hilippine goernment for the inclusion of such employees in the SSS
e#cept those already coered by their respectie ciil serice retirement systems -Sec.: -" -4.! >/ :5:5..
EFFECTIVE DATE OF COVERAGE UNDER THE SSS
0. E59:273=: It shall take effect on the first day of his operation
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5. E59:2733: =n the day of his employment
1. S3:<-359:273-: It shall take effect upon his registration with SSS
GSIS COMPULSORY MEMBERSHIP
$ompulsory for all employees -as defined in Section 5 -d. of ,SIS )aw. receiing compensation who hae not
reached the compulsory retirement age! irrespectie of employment status! +H$+2T 9+9D+>S =8 T?+ />9+* 8=>$+S /3*
T?+ 232! sub"ect to the condition that they must settle first their financial obligations with the ,SIS and contractuals
who hae no employer and employee relationship with the agencies they sere.
+H$+2T 8=> T?+ 9+9D+>S =8 T?+ J<*I$I/>O /3* $=3STIT<TI=3/) $=99ISSI=3S &?= S?/)) ?/I+ )I8+
I3S<>/3$+ =3)O! all members of the ,SIS shall hae life insurance! retirement and all other social security protection
such as disability! suriorship! separation and unemployment benefits -Sec. 1! >/ :5@0.
CARL COVERAGE:
>egardless of tenurial agreement and commodity produced! all public and priate agricultural lands as proided
in 2roc. 3o. 010 and += 55@! including other lands of the public domain suitable for agriculture.
Specifically:
0. /ll alienable and disposable lands of the public domain deoted to or suitable for agricultureC
5. /ll lands of the public domain in e#cess to the specified limits as determined by $ongressC
1. /ll lands owned by the ,oernment deoted to or suitable for agricultureC
4. /ll priate lands deoted to or suitable for agriculture regardless of agricultural products raised or that can be
raised theron. -Sec. 4! $/>).
DISTINCTIONS BETWEEN SHARE TENANCY AND LEASEHOLD TENANCY.
In share tenancy! the tenant has physical possession of another%s land for the purpose of cultiating it! giing the
owner the share of the property! while in leasehold tenancy! the lessee pays the landowner a fi#ed rent for the use and
cultiation of the land.
In share tenancy! the tenant has the option to shoulder any other items of production such as farm implements!
while in leasehold tenancy! the lessee always shoulders all items of production e#cept the land.
In share tenancy! the tenant and landholder are co-managers of the farm holding! while in leasehold tenancy!
the lessee is the sole manager.
In share tenancy! the tenant and the landholder diide the harest in proportion to their contributions. In
leasehold tenancy! the lessee gets the whole harestC he only has the mere obligation to pay the rental.
CHILD LABOR
$hild laborers are persons aged !elow 1;! or from 1; to !elow 17 $e#rs! performing work or serice that is
hazardous or deleterious in nature! or e#ploitatie! or unsuperised by the child%s parent or guardian! or that interferes
with normal deelopment! or depries that child%s right to health and education.
?oweer! not all children who work are engaged in child labor. &ork performed by any person below 06 years of
age is not considered child labor if it falls under allowable situations under "ep(blic Act o. %&48. )ight work that is
occasional! legal and respects the child%s right to health and education is not child labor.
S93,;*: T1*6D" 02:
A007. (. O">*:- B. L2=36H2
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