Labor Law

Basic Principles and Policies

1. Constitutional principles on labor:

a. full protection to labor
b. promote full employment and equality of employment
c. guarantee rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities
d. security of tenure and humane conditions of work, and a living wage
e. participate in policy and decision-making processes affecting their rights and
benefits
f. principle of shared responsibility
g. preferential use of voluntary modes in settling disputes
2. Purpose of PD442 is to consolidate labor laws
3. Kinds of labor laws:
a. labor standards - minimum requirements prescribed by existing laws relating
to hours of work, cost of living allowance and other monetary and welfare
benefits
b. labor relations - governing relationship of employer and employee
c. social legislation - promote welfare of all sectors of the society
4. International Alliance v. Quisumbing:
a. equal pay for equal work
b. no substantial difference between Filipino and foreign teachers
5. only Ratified ILO conventions are bniding in the Philippines
6. State affirms labor as primary social economic force
a. not capital
7. "full employment" = being employed using one's skill and training and being paid
commensurate to such skill and training
8. "participation" (under the Cons) does not mean co-management, but means co-
determination/ participatory democracy
9. labor is not purely contractual, it is impressed with public interest.
a. dismissal of employment must be done with the supervision of the labor
agency
10. LC: signed into law: 5/1/1974; effective: 11/1/1974
11. Administrative orders/ rules and regulations by DOLE secretary becomes
effective 15d from announcement of adoption, not from publication
12. State to regulate alien employment
a. alien whose countries do not extend the same benefits to Filipinos are not
allowed to work in the Philippines

Pre-employment

13. Recruitment and placement - any act of canvassing, enlisting, contracting,

transporting, utilizing, hiring or procuring workers, and includes referrals,
contract services, promising or advertising for employment, whether for profit or
not
a. deemed engaged in recruitment and placement: offers/promises for a fee,
employment to 2/more persons
b. note: referral @ recruitment without license = illegal recruitment
14. Private (fee-charging) employment agency - charges fee
 a. needs a License from the DOLE to operate
15. private recruitment entity - no fee
a. needs Authority to operate
16. Qualifications of placement/ recruitment agency:
a. citizenship - at least 75% owned by Filipino
i. foreigner cannot manage
b. capitalization: P2M
c. licensing agency: DOLE Regional Director
17. travel agencies and sales agencies of airline companies prohibited to recruit, for
profit/not
a. extends to: officers/members of the board of any corporation engaged in the
business of travel agency, and
b. corporations, partnerships, when any of its officers/ board members/ partners
are also engaged in the business of travel agency
18. non-transferability of license or authority
a. @ transfer of office/ additional offices = prior approval of DOLE
19. Period of validity of License = 4 years from issuance
20. registration fees:
a. filing fee: P10k
b. license fee: P50k
c. escrow deposit: P1M
d. Bonds: P100k
21. Regulatory agency @ recruitment and placement/ overseas employment: POEA
(Philippine Overseas Employment Administration)
a. LA no jurisdiction to overseas employment cases, Except: money claims
b. functions of POEA:
i. formulation, implementation and monitoring of overseas employment of
Filipino workers
ii. protection of their rights
iii. deployment o Filipino workers
iv. regulatory functions: regulates private sector participation
v. adjudicatory functions: @ violations of recruitment rules and regulations
1. decisions appealable to DOLE Sec. within 15d
2. GR: execution of decision stayed on appeal
3. E: suspension of operations
vi. disciplinary powers:
1. revoke/ cancel license
a. Sec. of Labor may also cancel/ suspend license/ authority
2. close recruitment and manning agencies
3. blacklist erring agencies
c. Jurisdiction of POEA = administrative in nature.
i. money claims = must be with LA
ii. POEA has no jurisdiction to enforce foreign judgment
d. When POEA may discipline overseas workers:
i. using, providing or submitting false information or documents for
purposes of job application or employment
ii. unjustified refusal to depart for worksite after all documents have been
duly approved by the government
iii. felony punishable by Philippine laws or laws of host country
iv. unjustified breach of employment contract
v. embezzlement of company funds/ fellow worker
22. Money claims against employer:
a. filed with LA of NLRC
b. nature of liability of local recruitment agency and foreign principal = solidary
c. new rule: premature termination of employment contract/ illegal dismissal
i. employment below 1 year: pay for unexpired portion of his employment
contract
ii. contract is 1 year/more = pay 3 months pay for every year of unexpired
term
iii. +interest @ termination without just, valid or authorized cause
1. 12% interest @ OFW
2. 6% interest @ local employment
d. Claims for death and other benefits (must be work-related) = filed with LA
23. Minimum employment conditions of Overseas Employment:
a. guaranteed wages (+OT)
b. free transportation from point of hire to site and return
c. free emergency medical and dental treatment
d. just cause for termination
e. workmen's compensation benefits
f. repatriation of remains @ death
g. assistance on remittances
h. free adequate boarding and food allowance
24. R: Ban on direct hiring, except:
a. diplomatic corps
b. international organizations
c. others allowed by Secretary of Labor
d. *Name hire
i. OFW found for himself an employer
ii. job order brought to POEA
iii. POEA refer a reputable recruitment and placement agency to process the
documents
25. Mandatory remittance of foreign exchange earnings:
a. seamen and mariners - 80% of basic salary
b. construction companies/ workers - 70%
c. professional workers - 70%
d. professionals without free board and lodging - 50%
e. domestic and other service workers - 50%
f. all others - 50%
26. note: direct payment to beneficiaries not allowed. must open bank account and
give to POEA the account number.
27. consequences of non-remittance:
a. employer not issued accreditation
b. passports of OFW not renewed
c. renewal of employment contracts not approved
d. no license/authority be issued to the agency
28. Fees paid by workers: only after secured employment through the efforts of the
agency; or actually commenced employment
a. note: agencies prohibited from requiring bonds from workers
29. Visitorial powers of the Sec. of Labor:
a. may inspect premises, books of accounts and records at any time; and act on
the violation.
b. note: Sec. of Labor cannot issue warrant of arrest.
30. Principle of exterritoriality:
 a. summons need not be sent to the foreign principal to acquire jurisdiction
over foreign principal/employer
b. manning agents/ recruitment agencies = agents of the foreign principals
c. concept of imputed knowledge: knowledge of the agent = knowledge of the
principal
i. but: knowledge of the principal is not tantamount to knowledge of the
agent
31. *Illegal recruitment:
a. when one gives the impression of having the ability to send a worker aborad.
b. Elements:
i. no valid license/ authority
ii. undertakes any recruitment/ placement activities
c. venue: RTC where offense was committed/ offended party actually resides
i. instituted by Sec. of labor, POEA, aggrieved party
d. simple illegal recruitment - done by licensee
i. prescription: 5 years
e. economic sabotage = illegal recruitment in large scale or by syndicate
i. Large scale illegal recruitment - against 3/more persons
ii. by syndicate - done by 3/more
iii. prescription: 20years
f. Consequence of conviction:
i. automatic revocation of license/authority
ii. forfeiture of bonds
iii. estafa
g. Acts of illegal recruitment:
i. charge or accept any amount greater than the specified in the schedule
of allowable fees
1. max placement fee: 20% of annual salary of Ee.
ii. furnish/publish any false notice/information or give document in relation
to recruitment/employment
iii. give false notice, testimony, information or document or commit any act
of misrepresentation for the purpose of securing license/authority
iv. induce/ attempt to induce a worker already employed to quit his
employment in order to offer him another
1. unless: to liberate him from oppressive terms and conditions of
employment
v. influence or attempt to influence any person not to employ any worker
who has not applied for employment through his agency
vi. engage in the recruitment of placement of workers in jobs harmful to
public health or morality or to dignity of the RP
vii. obstruct or attempt to obstruct inspection by the DOLE Sec.
viii. fail to submit reports required by DOLE Sec.
ix. substitute/alter employment contracts to the prejudice of the worker,
without the approval of the DOLE
x. become an officer/member of the board of any corporation engaged in/
manage a travel agency
xi. withhold or deny travel documents from applicants before departure for
monetary/ financial considerations other than those authorized by the LC
xii. failure to actually deploy without valid reasons
 xiii. failure to reimburese expenses incurred by workers in connection with his
documents and processing for purposes of deployment
xiv. allow a non-Filipino citizen to head/manage a licensed recruitment/
manning agency
xv. note: first 11 applicable to local recruitment
h. Other prohibited activities:
i. grant loan to OFW with interest exceeding 8% p.a., which will be used for
payment of legal and allowable placement fees
ii. impose a compulsory loan and exclusive arrangement where OFW is
required to avail of a loan only from specifically designated
institutions/persons
iii. refuse to condone/ renegotiate loan incurred by OFW after his
employment contract has been prematurely terminated through no fault
of his/her own
iv. impose compulsory and exclusive arrangement where ofw is required to
undergo health examiniations only from specifically designated medical
clinics
1. E: if seafarer's medical examinator cost is shouldered by principal/
shipowner
v. impose compulsory and exclusive arrangement requiring OFW to
undergo training/ seminar only from designated institutions
1. E: mandated by principals/ shipowners + shoulder costs
vi. suspended recruitment/ manning agency to engage in any kind of
recruitment activity
1. concept of reprocessing - @ suspended agency + while suspended
still processing applications for placement aborad. considered as
illegal recruitment
vii. deduction of salary by foreign employer for payment of insurance
premium/charges
32. Actual participation of illegal recruitment activities not necessary to hold
corporate officers liable.
a. good faith not a defense
b. liability = solidary
33. Employment of non-resident aliens:
a. Note: immigrants and resident aliens are not required to secure a working
permit
i. required to secure Alien Certificate of Registration
b. duration: min. of 1 year
c. secure employment permit from DOLE
i. CV
ii. contract of employment
iii. designation by employer of at least 2 understudies
1. qualified filipino designated by local employer to be trained by
foreinger allowed to work in the country
d. requisites for issuance: non-availability of a person in the Philippines who is
competent, able and willing at the time of application to perform the services
for which the alien is desired
i. @ preferred areas of investments = upon recommendation of the
government agency
 e. Aliens exempted from securing work permit:
i. diplomatic services and foreign government officials accredited by PH
government
ii. officers and staff of international organizations (Ph cooperating member)
+ legitimate spouses desiring to work in the Philippines
iii. foreign nationals elected as members of the Governing Board + not
occupy other position, but only voting rights
iv. all foreign nationals granted exemption by special laws
v. owners and representatives of foreign principals, whose companies are
accreddited by POEA, for purposes of interviewing Filipino applicants for
employment abroad
vi. teach, present or conduct research studies in universities and colleges as
visiting, exchange or adjunct professors @ formal agreements, on
reciprocal basis
vii. resident foreign nationals
f. prohibition against transfer of employment @ issued working permit.
i. E: approval by Sec. of Labor
34. GR: @nationalized business = cannot employ foreigners, Except:
a. authorized by Sec. of Justice @ technical personnel employment
b. aliens who are members of the BoD @ participation in the capital of such
entities
c. technical, supervisory or advisory positions (limited period)
35. local recruitment: Bureau of Local employment regulates
a. decisions appealed to DOLE
b. Kasambahay law: domestic helper not charged placement fee
c. note: no placement fee for domestic workers.
36. Notes on Seafarers/ seamen:
a. (memorize) "seafarer" = any person employed/ engaged in any capacity
in a ship
i. E: government ship, engaged in military operations (not commercial
purpose)
b. contract commences from: actual departure + with POEA approved contract
c. when employment ceases: contract expired + signed off + arrive safely at
point of hire
d. Labor standards for seafarers:
i. 48hours of regular work/wk
ii. reasonable rest period
iii. OT pay (125% of regular pay computed on 208 regular work rate/mo)
iv. fixed rate of OT = not less than 30% of monthly salary @
sundays/holidays
v. OT not more than 105 hours/mo
vi. officers on board a vessel entitled to OT pay, based on fixed formula
vii. no 13th month pay
e. seafarers = contractual employees, and cannot attain regularity status
i. even if rendered more than 1 year of service
f. If overseas Filipino medically repatriated:
i. 3-day (from date of pretatriation) reportorial rule mandatory to claim
disability benefits
1. E: inability of the Ee. He must notify in writing the placement agency
of his illness/ incapacity
 ii. if repatriated not due to illness = 3d reportorial rule does not apply
g. Death benefits, heirs may claim:
i. death during contract period
ii. illness contracted within employment period
h. death after 1 year from repatriation = heirs cannot claim
i. E: increased risk theory: must present risk, and show that the risk caused
the death, and show that such risk was increased by work.
i. Disability @ seafarers:
i. more than 120d = permanent unfit to work
ii. 240d = permanent total inability
iii. non-compensable disabilities:
1. gall stone = not work related for seafarers
2. cancer, renal failure, HIV, AIDS
j. tortuous conduct @ Er-Ee relationship = LA no jurisdiction
k. Master's report = substantial evidence of seafarer's misconducts

Human Resource Development Program

37. Apprenticeship
a. practical on the job supplemented by related theoretical instruction
b. more than 3mo practical training
c. does not exceed 6 months
d. Qualifications:
i. at least 15y/o
ii. possess vocational aptitude and capacity for appropriate tests
iii. ability to comprehend and follow oral and written instructions
e. salary = at least 75% of minimum wage
i. E: required by school/ graudation/ board examination
f. programs approved by Sec. of Labor
g. highly technical industries = may only employ apprentices and only in
apprenticeable occupations approved by Sec. of Labor
h. venues:
i. inside employer's establishment
ii. training center
iii. training center of DOLE
iv. training centers of sponsoring entities
i. deductibility of (1/2 value of labor) training costs from taxable income:
i. recognized by DOLE
ii. not exceed 10% of current labor
iii. pay minimum wage
38. Learner
a. non-apprenticeable
b. does not exceed 3mo.
i. @completion of 3mo. = compelled to continue services as regular
employee
c. semi-skilled industrial occupations
d. approved by TESDA
e. wage: not lower than 75% of minimum wage
f. When may learners be hired:
i. no experienced workers
 ii. necessary to prevent curtailment of employment opportunities
iii. does not create unfair competition in terms of labor costs/ impair working
standards
39. Working scholars = no Er-Ee relationship
40. handicapped workers
a. earning capacity is impaired by age or physical or mental deficiency/injury
b. at least75% minimum wage
c. equal opportunity for employment
i. qualifiactions/standards = discrimination
ii. E: job-related criteria, consistent with business necessity

Labor Standards:

41. Not covered:

a. government employees
i. governed by CSC laws
ii. @GOCC = if with original charger = not covered
iii. if incorporated under the corporation code = covered by labor standards
b. managerial employees
i. vested with powers or prerogatives to lay down and execute
management policies and/or hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees; regularly and customarily
direct the work of 2/more employees
ii. note: supervisory employees = deemed managerial employees @ labor
standards
1. duties: recommend managerial actions if such authority is not merely
routinary/ clerical, but requires use of independent judgment
2. customarily and regularly exercise discretion and independent
judgment
3. ensures that policies are carried out by R&F employees
4. regularly and directly assist a proprietor or a managerial employee
whose primary duty consists of the management of the
establishment
iii. note: supervisors are not managerial staff, hence can exercise the right
to self-organization (labor relations)
c. *field personnel - non-agricultural employees who regularly perform their
duties away from the principal place of bsiness and whose actual hours of
work in the field cannot be determined with reasonable certainty
i. employee's performance is unsupervised by the employer
ii. not field personnels: fishermen, bus drivers and conductors
d. members of family of employer dependent for support
e. domestic helpers and person in personal service of another
i. helper, laundrymen, gardener, cook, yaya (maid)
ii. note: personal driver no longer a "domestic helper"
f. worker paid by result (ie. piece rate workers)
i. note: piece rate workers entitled to holiday pay
g. employees of retail and service establishments employing not more than 10
employees, not entitled to:
i. premium pay on rest days and holidays
 ii. holiday pay
iii. service incentive leave
iv. note: still entitled to OT pay.
h. @not employing more than 5:
i. not entitled to night differential pay
ii. but still entitled to OT pay
i. note: manner of creation test:
i. if office is created by law (ie. corp. code) = not covered by labor law.
42. Test in determining employer-employee relationship:
a. 4 fold test:
i. selection and engagement
ii. control test re. means and methods by which work is accomplished
iii. power to dismiss
iv. salary and wages
43. hours worked:
a. all time during which an employee is required to be on duty/ at a prescribed
workplace
b. all time during which an employee is suffered or permitted to work
c. notes:
i. CBA negotiations or grievance meeting = compensable hours
ii. attendance in hearings in cases filed by Ee not compensable
iii. participation in strikes not compensable
d. note: normal work hours = 8hrs a day
i. compressed work schedule = no OT pay
44. lectures, meetings, training programs not counted as working time if ALL
conditions are met:
a. attendance is outside employee's regular working hours
b. attendance is voluntary
c. employee does not perform any productive work during such attendance
45. power interruptions:
a. not exceeding 20min = compensable
b. more than 20min = not compensable if employees allowed to leave and use
time effectively for their own interest
46. meal periods:
a. generally: not less than 60min
i. non-compensable
b. Except: meal period not less than 20min @:
i. non-manual work + does not involve strenuous physical exertion
ii. regularly operates not less than 16hrs a day
iii. actual or impending emergencies/ urgent work to be performed on
machineries, equipment or installations to avoid serious loss
iv. work is necessary to prevent serious loss of perishable goods
c. rest periods/coffee breaks (5-20min) = compensable
d. conditions for shortened meal periods upon request of Ee:
i. in writing and waive OT pay
ii. no diminution of salary and other fringe benefits
iii. not physically strenuous + provide adequate coffee breaks
iv. value of benefits is equal to compensation due to the employees
v. OT due and demandable past 4:30pm
vi. arrangement is temporary
47. nightshift differential pay: +10% of regular wage
a. 10pm-6am
48. OT: +25%
a. OT pay not offset by undertime
49. scheduled rest day/ special holiday pay: +30%
a. @rest day + special holiday = +50%
50. regular holiday +100%
a. OT: +30% of hourly rate on said day
b. to be entitled to 2 succeeding holidays:
i. present on the day immediately preceding the first holiday
ii. on leave with pay
c. 2 regular holidays falling on the same day:
i. did not work = receive 200% of basic pay
ii. if work = receive 300% of basic pay
51. GR: no one can be compelled to render OT. Except:
a. war/national emergency
b. prevent loss of life/property/ imminent danger to pulic safety due to an actual
or impending emergency
c. urgent work to be performed on machines, installations, or equipment, in
order to avoid serious loss or damage to employer
d. work is necessary to prevent loss or damage to perishable goods
e. completion or continuation of work started before the 8th hour is necessary
to prevent serious obstruction or prejudice to the business/ operations of the
employer
52. Rest day: 24 consecutive hours after every 6 consecutive normal work days.
53. when employee may be required to work on a rest day:
a. actual/ impending emergencies/ imminent danger to public safety
b. urgent work to be performed on he machinery... to avoid serious loss
c. abnormal pressure of work due to special circumstances, where employer
cannot ordinarily be expected to resort to other measures
d. prevent loss/ damage to perishable goods
e. nature of work requires continuous operations and stoppage of work may
result in irreparable injury/loss to employer
f. analogous circumstances determined by Sec. of Labor
54. Regular holidays:
a. New Year's Day (Jan1)
b. Maudy Thursday (Movable Date)
c. Good Friday (MD)
d. Eidul fitr (MD)
e. Eidul adha (MD)
f. Araw ng Kagitingan (Bataan and Corregidor Day) (Mon. nearest Apr9)
g. Labor Day (Mon nearest May1)
h. Independence Day (Mon nearest Jun12)
i. National Heroes Day (Last mon of Aug)
j. Bonifacio day (Mon nearest Nov30)
k. Christmas day (Dec25)
l. Rizal Day (Mon nearest Dec30)
55. Special Holiday:
a. Ninoy Aquino Day (Mon nearest Aug21)
b. All Saints Day (Nov1)
c. last day of the year (Dec31)
56. Rules on holiday pay @ hourly paid private school teachers:
a. regular pay = no work no pay
b. special holiday/ called off during calamities = with pay
57. Service incentive leaves
a. condition: rendered at least 1 year of service, continuous/broken
b. entitled: 5d/yr leave with pay
i. if unused = paid cash equivalent at the end of the year
c. does not apply to:
i. given vacation leave
ii. establishment employing less than 10 Ee's
iii. exempted by Sec. of Labor
58. service charge/ pooled tips:
a. 85% employees, equally
b. 15% management
c. must be pooled, and distributed at least 2x/mo
d. note: 85/15 applies only to service charge or pooling of tips policy by the
establishments.
59. Wage - payments given workers performing manual or physical and work lower
positions including blue-collar jobs
a. may be given even if without Er-Ee relationship
b. Bonus given without condition = wage
c. bonus given but paid only upon attainment of condition = not form part of
wage
60. basic salary - includes remunerations or earnings paid by employer to employee
a. excludes: Cost-of-living allowances, profit-sharing payments, and all
allowances and monetary benefits not considered as part of basic salary
61. commissions - calculated as % of amount of transaction
62. Supplements and Facilities:
a. supplements - extra remuneration/ special privileges/ benefits
b. facilities - items of expenses necessary for the laborers and his family's
existence
i. forms part of wage and deductible from wages when furnished by
employer
ii. does not include tools of trade/ articles/ services primarily for the benefit
of the employer/ necessary to conduct employer's business
iii. requirements for deductibility:
1. proof that facilities are customarily furnished
2. voluntarily accepted by the employee in writing
3. fair and reasonable charge
63. Minimum wage
a. prescribed by Regional Tripartite Wages and Productivity Board (RTWPB)
b. wage order:
i. issued by Regional Wage Board (tripartite body)
ii. wage order not prevent workers from bargaining for higher wages
iii. takes effect 15d from publication
iv. aggrieved party may appeal within 10d from publication
1. non-conformity with prescribed guidelines/ procedure
2. questions of law
3. grave abuse of discretion
v. Commission to decide on the appeal within 60 calendar days from filing
of appeal
vi. 30d from conclusion of last hearing = Board to decide on the merits (of
the minimum wage)
c. Standards/ criteria for minimum wage fixing:
 i. demand for living wages
ii. consumer price index
iii. cost of living
iv. needs of workers and their families
v. need to induce industries to invest in the countryside
vi. improvements in standards of living
vii. prevailing wage levels
viii. fair return of the capital invested and capacity to pay of employers
ix. effect on employment generation ad family income
x. equitable distribution of income and wealth
d. wage distortion - a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among employee groups in
an establishment as to effectively obliterate the distinctions embodied in
such wage structure based on skills, length of service, or other logical bases
of differentiation
i. *elimination of distinctions in wage structure
ii. wage distortion is a non-strikeable issue
iii. no legal requirement to readjust wage rates of different classes @ wage
distortion
e. remedies for wage distortion:
i. grievance procedure under collective bargaining
1. @ unresolved: voluntary arbitration
ii. if no CBA = go to NCMB
1. appeal to NLRC
iii. note: pendency of dispuite does not delay applicability of increase in
wages
64. Payment of wages:
a. Forms: Legal tender only
i. E:
1. customary
2. necessary
3. CBA
ii. Payment by Check:
1. bank within 1km from workplace
2. Er does not receive pecuniary benefits
3. Ee given reasonable hours to withdraw wages (compensable)
4. written agreement (if not in CBA)
b. Time of payment:
i. 1x/2wks or 2x a month not exceeding 16d interval
ii. @force majeure - immediately after cease, not less than 1x/mo
c. place of payment:
i. GR: at the place/near place of undertaking
1. E:
a. payment cannot be effected due to deterioration of peace and
order/ emergency
b. Er provide free transportation
c. analogous circumstances
2. cannot pay in any bar, night or day club, drinking establishments,
massage clinic, dance hall.. similar places, games are played with
stakes of money
 a. E: works there
ii. payment thru bank (ATM):
1. written requirest by majority of workers
2. at least 25 Ee's
3. ATM within 1km
4. bank issue certificate of payment upon request of worker
d. Direct payment of wages, E:
i. force majeure
1. written authority given by worker
ii. Ee's death
1. paid to heirs without need for intestate proceedings
2. execute affidavit attesting to their relationship, and the fact that they
are his heirs, to the exclusion of all other persons
iii. family members authorized by employee in writing
iv. authorized by law (ie insurance premiums and union dues)
65. Prohibitions against wages:
a. non-interference in disposal of wages
b. no wage deduction, except:
i. insured by the employer with employees consent, payment for premium
ii. union dues
iii. authorized by law/ regulations
1. taxes, SSS, philhealth, pagibig, facilities, debts due, judgment
against debtor-worker, absences
c. no deposit for loss or damage to tools, materials, equipment supplied by Er
i. e: employer in such trade/business where practice of making deductions
is recognized
ii. requisites:
1. employee must be heard + damage clearly shown to be responsible
2. give reasonable opportunity to show cause why deduction should not
be made
3. amount is fair and reasonable and not exceed actual loss/damage
4. deduction not exceed 20% of employee's salary
66. Contractor or subcontractor
a. Labor-only contracting
i. when contractor does not have substantial capital (P3M paid-in)/
investment necessary for the work
ii. recruited workers placed under the control of the principal
iii. contractor is considered to be an agent of the principal
iv. workers are considered to be employees of the principal
v. principal liable to all lawful claims of the employees
b. job-only contracting
i. contractor carries an independent business and undertakes the contract
work on his own account and responsibility, according to his own manner
and method
ii. contractor has substantial capital/ investment necessary in the conduct
of his own business
iii. principal solidarily liable only to the payment of employee's unpaid
wages and violations of LC only
1. not liable to any other claims by the contractor's employes
2. employer-employee for a limited purpose
c. Independent contractor
 i. carries on a distinct and independent business and undertakes to
perform the job/ do a piece of work on its own account and under its own
responsibility, according to its own manner and means, except as to the
results
ii. economic reality test: considered as employee if economically dependent
upon the employer
iii. ie. newspaper columnist @ can write his/her own choice of column's
perspective
iv. @newspaper reporter controlled by the business to cover specified areas
= not independent contractor
v. @television host = independent contractor. special skills, expertise or
talents that enjoy freedom to offer their services; station does not dictate
upon them on what to say
vi. college professors not independent contractors. school prescribes the
courses and subjects to teach, when and where to teach
d. *Indirect employer = not employer + contracts independent contractor for
the performance of any work/project
e. Bond @ contracting/subcontracting = contractor to furnish bond equal to
cost of labor under the contract
67. Worker's preference in case of bankruptcy
a. ordinary preferred credit only
b. cannot have preference over mortgage credit
c. contingent upon filing of bankruptcy/ liquidation proceedings
68. attorney's fees
a. max: 10% of wages recovered @ unlawful withholding of wages
69. Administration and enforcement:
a. Visitorial powers of Sec. of Labor (and regional director):
i. access to the records and premises at any time of the day/night
whenever work is being undertaken therein
ii. right to copy from records
iii. right to question any employee and investigate any fact, condition or
matter which may be necessary to dtermine violations of LC
b. Enforcement powers of Sec. of Labor:
i. issu compliance orders
1. where Regional Director finds violation of Labor Standards, he issues
compliance orders to restitute workers within 10d and submit proof
of compliance
ii. issue writ of executions
1. Except: employer contests the findings of labor employment and
dnforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection
iii. issue stoppage of work @ imminent danger to health and safey
1. decide w/n to lift order within 24hrs
70. Complaints as to violations of labor standards:
a. With Er-Ee relationship
i. file complaint inspection, to be forwarded to the Regional Director
1. not limited to the specific violations indicated therein
ii. Regional director assigns it to Labor Standards and Welfare Officer
iii. LSWO issue inspection report
iv. restitution/ compromise agreement (compliance order)
 v. file MR within 7d; appeal within 10d (with bond)
vi. Finality of decision of Sec. of Labor
1. file certiorari with SC + TRO + Bond
b. @Er-Ee relationship no longer exists:
i. claims for payment of monetary benefits filed with LA
ii. appealable to NLRC
71. *Sexual Harassment:
a. requires any any sexual favors for:
i. condition for hiring, rehiring, continued employment
ii. favorable compensation, terms and conditions, promotions, privileges,
employment opportunities
iii. @education: for passing grade, granting honors, scholarships,
allowances, resulting in an intimidating or offensive environment
b. note: demand for sexual favors need not be articulated in a categorical oral
or written statement and instead may be sufficiently discerned from the
offender's acts.
i. ie. intimidating, hostile, or offensive environment for the employee
c. Committed by: employer, employee, manager, supervisor, agent of
employer, teacher, professor, instructor, coach, trainor, or any other person
who have authority, influence, moral ascendancy over another in a work,
training, education environment.
i. note: the fact that both of them are of the same gender is irrelevant as
the law does not distinguish what gender will be held liable for sexual
harassment
d. note: if the Employer or the teacheris the victim, do not use LC, use RPC
i. offender must have moral ascendance or authority over the victim
e. liability of employer, head of office, educational or training institution =
solidary liability as to damages arising from acts of secual harassments
f. sexual harassment is a grave misconduct, which carries with it the penalty of
dismissal
g. Classification:
i. Grave
1. touching of private parts
2. sexual assault
3. malicious touching
4. request for sexual favor ni exchange of.....
5. analogous cases
ii. less grave
1. unwanted touching or brushing against victim's body
2. pinching
3. derogatory/ degrading remarks directed toward the member of one
sex/ sexual orientation/ used to describe a person
4. verbal abuse with sexual overtones
5. analogous cases
iii. light offenses
1. surreptitiously looking/ staring of a person's private part/ wor
undergarments
2. telling sexist/ smutty jokes (including sms, email.. similar means)
after the offender has been advised that/ by nature they are
offensive/ embarrassing
 3. malicious leering/ ogling
4. display of sexually offensive pictures, materials or graffiti
5. unwelcome inquiries or coments about a person's sex life
6. unwelcome sexual flirtation, advances, propositions
7. maing offensive hand or body gestures
8. persistent unwanted attention with sexual overtones
9. unwelcome phone calls with sexual overtones
10. analogous cases
h. Committee on Decorum and Investigation (CDI) @ all agencies of the
government, state colleges and universities, GOCC with original charger
i. receive complaints for sexual harassment, investigate sexual harassment
complaints, submit reports of its findings with disciplining authority, lead
in discussions
ii. withdrawal of complaint does not preclude CDI from proceeding with the
investigation @ obvious truth/ merit
iii. preventive suspension @ probably guilty
iv. remedies from order of suspension: MR/ elevate to CSC
72. Maternity leave benefits: (SSS law)
a. female who has paid at least 3 monthly contributions in the 12-mo period
immediately preceeding the semester of her chidlbirth/ miscarriage
i. note: regardless of marital status = entitled
b. benefit: paid 100% of her average daily salary credit for 60d (normal) 78d
(caesarean) delivery
c. conditions:
i. notified employer of her pregnancy and probable date of childbirth,
transmitted to SSS
ii. full payment in advanced by employer within 30d from filing of
materninty benefits
iii. payment of daily maternity benefits bars sick leave recovery during
same period
iv. only for the first 4 deliveries or miscarriages
v. SSS to reimburse employer of amount advanced upon satisfactory proof
of such payment/legality thereof
vi. @Er failed to remit = pay SSS damages
73. Paternity leave
a. married male employee only
b. 7 days with full pay for the first 4 deliveries/miscarriage of legitimate spouse
with whom he is cohabiting
i. basic salary + mandatory allowances
ii. note: "first 4 deliveries of the legitimate spouse" refers to the wife
iii. despite the fact that the employee has already availed of the benefits 4
times before with his first legal wife who has died is immaterial, he may
still claim paternity benefits for the first 4 deliveries of his 2nd legitimate
wife.
c. not convertible to cash if not availed of
74. Special benefits for women
a. condition: rendered continuous aggregate employment service of at least
6mo for the last 12months
b. entitled: special leave benefit of 2 months with full pay based on her gross
monthly compensation following surgery caused by gynecological disorders
75. Stipulation against marriage
a. GR: unlawful
b. E: legitimate business concern in imposing the policy
i. mere fear that employee will be less efficient = not a valid justification
ii. prohibition against relationship with employee of a competitor company
is a valid exercise of management prerogatives (avoid conflict of
interests)
76. Anti-violence against women and their children
a. committed by any person against a woman/ her child who is:
i. wife/former wife
ii. had sexual or dating relationship
iii. has common child
b. violence:
i. physical, sexual, psychological, economic abuse, bettery, assault,
coercion, harassment, arbitrary deprivation of liberty, stalking
77. Employment of Minors:
a. minimum age: 15 y/o; except:
i. works directly under the sole responsibility of his parents/ legal guardian
+ provided with primary and/or secondary schooling, or
ii. public entertainment or information (cinema, theatre, radio..)
1. parents conclude employment contract
2. express agreement of the child
3. approval by DOLE
4. comply with conditions:
a. Er to ensure protection, health, safety, morals and normal
development of the child
b. measures to prevent child's exploitation or discrimination
c. employer to formulate and implement continuing program for
training and skills acquisition of the child
iii. hours of work: 4h/d, 20h/wk; cannot work from 8pm-6am
b. below 18 y/o = cannot undertake jobs that are hazardous or deleterious in
nature
i. @15-below 18 = 8hr/d, 40hr/wk; cannot work from 10pm-6am
c. income of minors: not more than 20% goes to family needs
d. prohibition against worst forms of child labor
i. slavery
ii. prostitution
iii. illegal activities
iv. by its nature, hazardous
e. prohibition on certain advertisements - alcoholic beverages, intoxicating
drinks, tobacco, ganbling, violence, pornography
78. Homeworkers (contractors)
a. one who performs in or about his home any processing of goods or materials,
in whole or in part which have been furnished directly or indirectly by an
employer and thereafter to be returned to the latter
b. prohibited homework:
i. explosives
ii. drugs and poison
iii. exposure to toxic substances
c. minors as homeworkers allowed
d. homeworkers have right to self-organization (registered)
 e. homeworker v. househelper:
i. househelper - works in Er's home, performing usually necessary or
desirable for maintenance and enjoyment and includes ministering to the
personal comfort and convenience of the members of the Er's household.
ii. homeworker - performs in/about his house any processing of goods or
materials furnished by Er, to be returned to him.
79. Night workers
a. work requires performance ofa substantial number of hours of night work
which exceeds a specified limit (not less than 7 consecutive hours)
b. if certified to be unfit for night work, due to health reasons = transferred,
whenever practicable, to a similar job for which they are fit to work.
i. granted same benefits during said period
ii. temporarily unfit for night work = protected against dismissal
c. additional compensation: in additional to the +10% of his regular wage under
nightshift differential pay.

Termination of Employment

80. security of tenure - right of every employee not to be dismissed from his work
without just or valid cause and in the absence of due process
a. probationary employees entitled to security of tenure only during the
probationary period; after their contract, cannot compel employer to renew
their employment contract
b. entitled to full backwages
i. without qualification and deduction
ii. rate @ time of dismissal, not affected by benefits received by co-
employees
c. @reinstatement is impossible: separation pay worth 1mo pay for every year
of service (From illegal dismissal up to finality of judgment)
i. old age
ii. position no longer exists
iii. establishment taken by another company
iv. insolvency of the employer
v. closure of business
vi. strained relations
d. separation pay not deductible from backwages.
81. Regular v. casual v. probational employment
a. regular - engaged to perform activities which are usually necessary/
desirable in the usual business/ trade of the employer
i. E: specific project/ seasonal
ii. those who hsa rendered 1 year of service, continuous or broken, shall be
considered as regular employee, with respect to the activity he is
employed
1. employment shall continue while such activity exists
2. note: 1 year service considered to be regular = only applicable to
casual employment
b. project employee - employment has been fixed for a specific project/
undertaking, the completion or termination of which has been determined at
 the time of the engagement of the employee; or if work/services to be
performed is seasonal in nature and employment is for the duration of the
season
i. note: even if project contract exceeded 1 year = still considered to be a
project employee
ii. when considered regular employees:
1. continuously/ repeated rehiring of project employee
2. tasks are vital, necessary and indispensable to the usual businesses/
trade of the employer
iii. note: @ termination brought by completion of a contract = must still give
a written notice to the employee
c. casual - not regular nor project employee; performing work incidental to the
business of the employer and his period of employment is made known to
him at the time of the engagement
i. if his services lasted for more than 1 year = becomes regular
d. probationary employment:
i. not exceed 6mo
1. E: apprenticeship agreement stating a longer period
2. management prerogative may extend probationary period
3. double probationary period is illegal
ii. termination:
1. with just cause
2. fails to qualify to the standard made known at time of engagement
iii. after the probationary period = deemed regular employee
1. E: extension of probationary period, which is an act of liberality on
the part of his employer affording him a 2nd chance to make good
after having initially failed to prove his worth as an employee.
iv. probationary period for private school teachers: not more than 6
consecutive regular semesters (9 if trimesters) @ tertiary level:
1. full-time teachers only
a. part-time employee does not attain permanent status (no matter
how long he has served the school)
b. @part-time: no twin notice rule required. but cannot be
terminated before the agreed period without just cause. just no
obligation to renew the contract
c. no security of tenure as to administrator position
2. rendered 3 consecutive years of service
3. service must be satisfactory
82. Termination by Employer:
a. With just cause = no separation pay
b. authorized causes = with separation pay
83. Just causes of termination:
a. serious misconduct or willful disobedience
i. serious misconduct - transgression of some established and definite rule
of action; dereliction of duty
1. misconduct/ improper behavior must be related to the performance
of the Ee's duties and must show that he has become unfit to
continue working for the Er.
2. must be willful in character/ wrongful character, and not mere error
of judgment
 ii. sexual harassment = serious misconduct
iii. teacher's extra marital affair = serious misconduct
iv. willful disobedience:
1. willful/intentional
2. order violated is reasonable, lawful, and made known to employees
and pertain to duties which has been engaged to discharge
b. gross and habitual neglect of duties
i. gross negligence - want/absence of even slight care/ diligence as to
amount to a reckless disregard of the safety of person/property
ii. gross neglect sufficient to terminate, need not be habitual
c. fraud/willful breach of trust
i. loss of confidence must be duly proved, sufficiently substantiated
ii. must be willful and done knowingly and purposely without justifiable
cause
iii. requisites for dismissal due to loss of trust and confidence:
1. not simulated
2. not used as subterfuge for causes which are illegal, improper/
unjustified
3. not arbitrarily asserted
4. genuine and not mere afterthought
5. employee involved holds a position of trust and confidence
d. commission of crime/offense against the person of his employer/ immediate
family member/ duly authorized representatives
i. relatives: spouse, ascendant, descendatns, legitimate, natural, adopted
bro/sis, relatives within 4th degree of consanguinity
ii. criminal conviction not required
e. analogous cases
i. ie. unsatisfactory rating/ poor performance (amounting to gross
negligence)
ii. abandonment of work:
1. failure to report for work without valid/justifiable reason
2. clear intent to sever Er-Ee relationship
84. Authorized causes (closure of establishment and reduction of personnel)
a. installation of labor-saving devices
i. sep. pay at least 1 mo or 1mo/yr of service, whichever is higher
ii. basis: management prerogative.
iii. so long as no bad faith = court will not interfere
b. redundancy
i. 1 mo. or 1 mo/yr of service
ii. services of Ee in excess of what is reasonably demanded by the actual
requirements of the enterprise
c. retrenchment to prevent losses; or cessation of business NOT due to
business losses/ financial reverses
i. 1mo. or 1/2 mo/yr of service
1. 1/2mo = 22.5 days
ii. requisites @ cessa:
1. substantial and not merely de minimis losses
2. reasonably imminent
3. reasonably and necessary and likely to effectively prevent the
expected losses
 4. losses and expected imminent losses proved by sufficient and
substantial evidence
d. cessation of business due to business losses or financial reverses
i. no separation pay
ii. must be complete cessation of business operations
iii. note: involuntary cessation of business (ie. government intervention) =
no separation pay, even if not due to business losses
e. Disease
i. 1 mo. or 1/2mo/yr of service
ii. continued employment prohibited by law or is prejudicial to his heal and
his co-employees' health
iii. if can be cured within 6mo = file leave
iv. if cannot be cured within 6mo = may terminate employment
v. medical certificate is indispensable
f. note: acceptance of Separation pay is not a bar to question the illegality of
the dismissal
85. procedure in dismissing an employee: (2-notice rule) - just causes
a. written notice, state ground for termination
b. hearing/conference, opportunity to respond/ rebutt evidence presented
against him
i. new rule: must not only comply with the 2-notice rule, but must also give
the employee 5 days to explain the charge against him
ii. GR: formal hearing not required. only opportunity to be heard
iii. E: hearing required only when Ee. denies charges against him
c. written notice of termination
i. upon due consideration of all the circumstances, grounds have been
established to justify termination
d. note: substantial compliance enough. ie. memoranda sent to Ee.
86. Notice requirement @ authorized causes/ failure to meet standards...
a. @ closure of business and reduction of personnel (authorized cause):
i. notice to the employee and the Regional Office of DOLE at least 30d
before effectivity of termination, specifying the grounds for termination
ii. notice must be served upon each and every employee individually
1. posting of notice in company bulletin boards not valid
b. @completion of contract/ failure to meet standard for probationary
employee:
i. writte notice of termination is sufficient
87. rules in dismissal:
a. just cause + due process = valid dismissal
b. just cause + no DP = dismissal + Er liable for damages
c. no just cause + DP = no dismissal
d. no just cause + no DP = no dismissal
88. Preventive suspension:
a. poses serious and imminent threat to life/property of the Er or co-workers
b. length: 30d max
i. beyond = reinstate or suspension with wages
ii. otherwise = constructive dismissal
89. Termination b the employee (resignation):
a. Termination without just cause: written notice at least 1 mo. in advance
i. no notice = liable for damages
b. When may terminate without just cause:
 i. serious insult upon the honor/person
ii. inhuman/ unbearable treatment
iii. criminal offense against Ee/ immediate family members
iv. analogous cases
c. Resignation must be voluntary
i. intent to relinquish must concur with overt act
d. Acceptance of resignation renders it operative
e. GR: no separation pay upon resignation
i. E: CBA/ Er's practice/policy
90. When employment not deemed terminated:
a. bona fide suspension, not more than 6mo; or military/ civic duty
b. indicates desire to resume work within 1mo from resumption of business/
relief from duty
c. note: order of reinstatement is self-executory (no need to file motion for
execution)
91. Retirement from the Service
a. Separation pay = 1/2mo per yera of service (22.5d)
i. includes all benefits
ii. excludes: COLA, profit sharing, not considered as part of salary
b. retirement age:
i. CBA/ agreement
1. may set retirement age lower than 60y/o
2. if not assented to lower retirement age = illegal dismissal
a. employee's assent must be explicit, voluntary, free and
uncompelled
ii. without CBA = 60-65y/o
1. 60y/o = optional retirement
2. 65 y/o = compulsory
iii. underground mining = 50-60
c. conditions: must have served at least 5 yrs in the establishment
d. Exemptions for paying:
i. establishments employing not more than 10 Ee's are exempted from
paying
ii. Government employees/ GOCC @ CSL
iii. domestic helpers/ persons in service of another
e. retirement benefit fund: contributions by Er and Ee
i. substitute retirement plan @ PAGIBIG fund

Social Legislations:

92. 13th month pay

a. @paid by results = computed using total earnings during the calendar year
b. @with multiple employers = entitled from all private employers
c. @private school teachers = entitled regardless of the number of months they
teach/ paid within a year @ rendered at least 1mo within a year.
93. Social Security Act (SSS)
a. compulsory coverage: employees from private sector + not over 60 y/o
i. temporary, provisional, permanent
ii. now: includes household helpers
 iii. Filipino Seafarers covered upon signing of standard contract of
employment between the seafarer and the manning agency
b. self-employed who are covered: income of at least P1k + not over 60 y/o
i. self-employed professionals
ii. business partners, single proprietors, board directors,actresses, directors,
scripwriters, newsreporters
iii. professional athletes, coaches, trainers
iv. farmers and fisherfolks
v. workers in informal sector
c. voluntary basis:
i. no longer emloyed
ii. OFW
iii. legally married to a covered + devote full time in management of
household
1. provided with approval of working spouse
d. benefits:
i. sickness:
1. cannot work for at least 4days
2. paid 3 monthly contributions within the 12-mo period immediately
before the semester of sickness
3. used up all currentl company sick leaves with pay
4. notified employer or SSS
ii. disability
1. permanent/ partial
2. requirement: at least 1 contribution prior to the semester of
contingency
3. total/permanent disability:
a. loss of both eyes/ sights
b. loss of 2 limbs or above the ankle/wrists
c. permanent complete paralysis of 2 limbs
d. brain injury causing insanity
e. other cases determined by SSS
iii. maternity (see #70)
iv. retirement (monthly/lumpsum pension)
1. 60 y/o
a. unemployed
b. paid at least 120 monthly contributions prior to the semester of
retirement
2. 65 y/o
a. whether employed/not
b. paid 120 monthly cnotributions prior the semester of retirement
v. death benefits
1. cash paid to beneficiaries of a deceased member
2. beneficiaries:
a. spouse - until remarries
b. legitimate, legitimated, legally adopted, illegitimate dependent
children
c. secondary beneficiaries: parents of the member
d. in the absence of the above: person designated by the member
3. requirements: paid 36 monthly contributions before semester of
death
 94. Philhealth
a. coverage: private only
b. health insurance program
c. for members and their dependents
95. Employees' compensation program
a. @work-connected sickness or injury resulting in death or disability
b. enjoyed simultaneously with SSS
96. GSIS (government service insurance system)
a. coverage: all government workers irrespective of their employment status
b. excluded from coverage: have separate retirement schemes under special
laws:
i. judiciary and constitutional commissions
ii. contractual employees who have no Er-Ee relationship with their
agencies
iii. AFP and PNP, BJMP and Bureau of Fire Protection
1. ie police killed while performing his function = not GSIS claims, cliam
under Integrated National Plice Personnel Professionalization Law
c. effect of separation from service: continue to be a member, and shall be
entitled to whatever benefits he has qualified to in the event of any
contingency compensable under the GSIS laws
d. contributions: 3% of monthly compensation as personal share
e. benefits: compulsory and optional life insurance, retirement, separation and
employee's compensation benefits
i. retirement benefits, conditions for entitlement:
1. 15yrs of serivce
2. at least 60y/o at time of retirement
3. not received a monthly pension benefit from permenent total
disability
97. Portability Law
a. workers who transfers employment from one sector to another (public to
private, vice versa) or is employed in both sectors shall have his credible
services or contributions in both Systems (GSIS and SSS) credited to his
service or contribution record in each of the Systems and shall be totalized
for purposes of old-age, disability, survivorship and other benefits.
b. overlapping periods credited only once for purposes of totalization
c. if worker has satisfied the required years of service under GSIS retirement
option, he is not allowed to incorporate his contributions to the SSS anymore
for availment of additional benefits
d. in case of death...., periods of creditable services or contributions to the SSS
and GSIS shall be summed up to entitle the worker to receive the benefits
under either law.
e. only benefits common to both systems shall be paid
i. ie. cash payment not included in the benefits provided by the SSS

Jurisdiction and prescription of actions

98. Jurisdiction:
a. Secretary of Labor (and representatives such as Regional Director of
DOLE)
i. recovery of wages, simple money claims and other benefits by
claimant no longer employed
1. provided:no reinstatement and amount not exceeding P5k
2. note: if still employed, or claiming reinstatement, or exceeds 5k = LA
ii. if exceeds P5k, RD may still exercise visitorial and enforcement powers
1. NEW RULE: In the exercise of visitorial and enforcement powers, RD
may hear and decide matters involving wages and monetary claims
arising out of Er-Ee relationship, even if exceeding P5k
2. When Regional director divested of jurisdiction (must refer to NLRC
arbitration branch)
a. employer contests findings of labor regulations officer and raises
issues
b. in order to resolve issues, there is a need to examine evidentiary
matters
c. matters are not verifiable in the normal course of inspection
iii. Decisions appealed to NLRC within 30 calendar days
b. Labor Arbiter
i. All claims out of Er-Ee relationship (ULP, termination disputes,
damages, strikes and lockouts) exceeding P5k, including OFW
claims
ii. Except:
1. compensation claims
2. SSS
3. Medicare
4. maternity benefits and other claims
iii. Via LA grievance machinery/ voluntary arbitration: interpretation or
implementation of CBA, and company personnel policies
iv. note: GR: filing of appeal with NLRC stays the execution of LA
1. E: reinstatement pending appeal
2. remedy: secure injunction from court where case is pending (ie CA or
SC)
c. NLRC:

i. exclusive appellate jurisdiction over all cases decided by the LA

1. appeal LA decision within 10 calendar days from receipt of decision,
awards or orders
2. grounds:
a. abuse of discretion on the part of LA
b. award was secured through fraud or coercion, including graft and
corruption
c. purely question of law
d. serious errors + would cause grave or irreparable damage or
injury
3. notes:
a. posting of bond by Er shall not stay the execution for
reinstatement ordered by LA
b. decisions, awards, or orders of LA are final and executory unless
any or both parties appeal to NLRC
 c. in case the decision of LA or RD involves monetary award,
appeal by employer may be perfected only upon posting of a
bond
d. frivolous/ dilatory appeals = contempt
e. barangay conciliation not applicable to labor disputes
f. must file MR with NLRC before filing R65 with CA
ii. appellate jurisdiction over orders and resolutions of the Regional Director
of DOLE
1. appeal within 5 calendar days from receipt
iii. When NLRC may issue injunctions and TRO
1. grave and irreparable damage; or will render the decision in favor of
the party ineffectual
2. PI effective only upon posting of cash bond
3. TRO immediately executory, maximum of 20d validity
iv. Powers of NLRC:
1. promulgate rules and regulations governing hearing and disposition
of cases
2. administer oath, summon parties to a controversy, issue subpoenas
requiring the attendance and testimony of witnesses, production of
books
3. conduct investigation for the determination of a question, matter or
controversy within its jurisdiction
4. contempt powers
5. enjoin/restrain any actual or threatened commission of any
prohibited/ unlawful act/ require performance of an act
a. note: injunctions and prohibitions not blanket power over NLRC,
only ancillary powers (those pending before it)
v. Composition of NLRC (1 Chair + 23members) 8 from workers
nomination, 8 from Employers, Chair and 7 members from public sector
1. No need for COA confirmation
d. Rehabilitation receiver @ receivership / liquidator @ liquidation
i. All proceedings in judicial and quasi-judicial bodies suspended, including
money claims from labor dispute
ii. Enforce via receiver/ liquidator
e. BLR (Bureau of Labor Relations)
i. jurisdiction over: intra, inter-union conflicts; and disputes over labor-
management relation
1. not implementation and interpretation of CBA
ii. Administrative functions of BLR:
1. registration of labor unions
2. keeping of registry of labor unions
3. maintenance and custody of CBAs
a. CBA must be submitted directly to BLR or Regional Offices of
DOLE for registration within 30d from execution
4. keeping of records of settlement of labor disputes and orders and
decisions of voluntary arbitrators
f. Med-Arbiter (hearing officer)
i. conducts preliminary conference and hearing and decides certification
election or representation cases, inter/intra-union and other related labor
relations disputes
ii. amicable settlement and hearing of cases intra/inter-union and labor-
management relation disputes.
 iii. decision appealed to Bureau Director (BLR)
iv. appealed to Sec. of Labor
g. NCMB (National Conciilation and Mediation Board)
i. conciliation, mediation, and voluntary arbitration functions of BLR
ii. functions:
1. where notices of strike or lockouts are filed
2. perform preventive mediation and conciliation functions
iii. compromise agreements = final and binding upon the parties, except:
1. non-compliance
2. obtained through fraud
3. Note: may be rescinded @ unaware of existence of final judgment
4. Note: compromise in labor disputes must be reduced into writing and
signed in the presence of RD or his duly authorized representative
iv. waivers and quitclaims
1. GR: quitclaims where the workers voluntarily accept a reasonable
amount or consideration as settlement, are deemed valid and cannot
be set aside because the parties have subsequently changed their
minds
2. invalid quitclaims:
a. wangled from unsuspecing or gullible person
b. terms of settlement are unconscionable on their faces
h. NCMB
i. jurisdiction over conciliation, mediation and volutary arbitration cases
ii. performs preventive mediation and conciliatoin functions
iii. no injunction power
i. Regular courts
i. actions between ER and EE where the Er-Ee relationship is merely
incidental and the cause of action precedes from a different source of
obligation
ii. when the principal relief sought is to be resolved not by reference to the
LC or other labor relations statute or CBA, but by general civil law =
jurisdiction belongs to the regular courts
99. Execution of decisions and awards
a. Sec. of Labor, RD, NLRC, LA, Arbiter may motu propio or on motion issue writ
of execution
b. Within 5yrs from final and executory of judgment
c. Execution of money judgment:
i. Immediate payment on demand of sheriff
ii. Failure/refusal = go after cash deposit/ surety bond
iii. If insufficient = levy property
d. Execution of reinstatement order pending appeal
i. Er must reinstate physically or on payroll
ii. If Er refuses = issue writ of execution pending appeal
e. Reimbursement of income received during pendency for illegal dismissal
f. @payroll reinstatement + SC reversed order of reinstatement:
i. no need to reimburse employer for income received
ii. jurisprudence: no case has ordered the employee to reimburse to the
employer any income received
100. Injunctions in strikes and lockouts
a. Who may issue:
i. President
ii. Sec. of Labor
 iii. LA (incidental powers over cases pending before them)
iv. NLRC
v. DOLE Regional Directors
101. When non-lawyers may appear before LA/ NLRC:
a. Represent self
b. Represent legitimate labor organization
c. Represents a member of legitimate labor organization
d. Duly-accredited member of legal aid
e. Owner/ president of the establishment
102. Attorneys fees:
a. No attorneys fees, negotiation fees or similar charges of any kind arising
from any CBA shall be imposed on any individual member of the contracting
union
b. Attorneys fees may be charged against union funds in an amount to be
agreed upon by the parties.
103. Prescription:
a. all money claims = prescribes in 3 years from cause of action accrued.
i. arising from Er-Ee relationships
b. illegal dismissal = 4years from dismissal (NCC)
c. sexual harassment = 3 years from incident took place
d. ULP = 1 year from accrual of such ULP

Labor Relations

104. Labor organization any union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of dealing with employers
concerning terms and conditions of employment
105. Legitimate Labor Organization any labor organization duly registered with the
DOLE
106. Bargaining representative legitimate labor organization whether or not e,ployed
by the employer
107. classifications:
a. industry union - within a specific industry
b. independent labor union - personality derived from independent action for
registration
c. federations and national unions - with at least 10 locals, chapters or affiliates
certified for collective bargaining
i. must have proof of filiation of at least 10 locals or chapters, each must
be a duly recognized collective bargaining agent in the
industry/establishment in which it operates
d. chartered local/ chapter/ local - operating at enterprise level; legal
personality derived through issuance of charter certificate by federation/
national union
e. trade union center - group of national union/ federation for mutual aid and
protection of its members
f. company union - organized by management; ULP
g. worker's association - workers organized for mutual aid and protection, other
than for collective bargaining purpose
108. Registration of Labor organization:
 a. must have at least 20% of all the employees in the bargaining unit where it
seeks to operate as members
b. must have been in existece for 1/more years
c. note: to be considered as legitimate labor organization: SEC articles of
incorporation + permit to operate
d. registered in BLR
e. note: legal personality of labor unions (upon registration) may only be
questioned through an independent petition for cancellation of union
registration
109. Rights of Legitimate labor organization:
a. act as representative of its members for collective bargaining
b. certified as exclusive representative of all employees for collective
bargaining
c. be furnished by the employer with annual audited financial statements
d. to own property, real or personal, for the use and benefit of the labor
organization and its members
e. sue and be sued in its registered name
f. undertake all other activities and projects not contrary to law
110. Chartering and Creation of Local Chapter
a. a duly registered federation or national union may directly create a local
chapter by issuing a charter certificate indicating the establishment of the
local chapter
b. acquires legal personality only for the purposes of filing a petition for
certification election
c. acquires legal personality only upon submitting constitution and by-laws +
other documents with BLR
d. Disaffiliation of chartered local: local charter may disaffiliate/ separate from
mother federation
i. as separate and voluntary associations, local unions do not owe their
creation and existence to the national federation to which they are
affiliated, but instead, to the will of their members.
111. Cancellation of Registration of labor organizations:
a. by BLR, after due hearing
b. filed with Regional director
i. appeal with BLR
ii. BLR decision appealed to Sec. of Labor
iii. R65 with CA
c. filed by any party-in-interest
d. grounds for cancellation:
i. misrepresentation, false statement or fraud in connection with the
adoption or ratification of the constitution and by-laws
ii. misrepresentation, false statement or fraud in connection with the
election of officers
iii. voluntary dissolution by the members (2/3 of general member submits
application)
112. Qualifications of Union Officers:
a. employee of the company
b. member of the union in good standing
c. not convicted of a crime involving moral turpitude
i. E: absolute pardon
 d. note: submission of employees' names with the BLR not a condition to enable
said members to vote in the election of union's officers

113. Check-Off
a. a method of deducting from employee's pay at prescribed period, the
amounts due to the union for fees, fines or assessments for the purpose of
raising fudns for the union
b. GR: requires written authorization from each employee to deduct wages
c. E: resolution approved and adopted by a majority to the union members at a
general meeting
d. Rule: If Er fails to deduct check-off = ULP, but not make Er liable to the union
e. When special assessment for unions incidental expense be checked-off:
i. authorization by a written resolution of the majority of all the members
at the general membership meeting
ii. secretary's record of the minutes
iii. individual written authorization for check off duly signed by the
employees concerned
114. Agency Fees
a. amounts deducted from the salary of a non-union member of the collective
bargaining unit.
b. may be deducted even without consent of the concerned employee @
employee accepts benefits under the CBA
115. Right to self organization:
a. Supervisory employees not eligible for membership in a labor union of rank-
and-file employees
i. form their own
b. alien employees with valid working permits may join or assist labor unions @
nationals of country which grants the same/similar rights to Filipino workers
i. certified by DFA
c. All employees in the civil service shall have the right to form associations for
purposes not contrary to law
i. but cannot strike
d. Who many not enjoy the right to self-organization:
i. high-ranking government employees
1. policy-making or managerial
2. highly confidential
ii. employees of international organizations enjoying immunity from suits
iii. managerial employee
1. note: supervisory employees may join organizatio, but not with R&F
union
iv. AFP
v. PNP
1. security guards may join union
vi. firemen
vii. jailguards
viii. confidential employees
ix. employees of cooperatives who are members of that same cooperative
e. effect of inclusion as members of employees outside the bargaining unit:
i. not ground for cancellation of registration of unions
 ii. such members are automatically deemed removed from the list of
membership of said union
116. Unfair Labor Practices:
a. def: any unfair labor practice as expressly defined by the LC
i. refers to acts that violate the workers' right to organize
b. consequence:
i. Administrative aspect = filed with LA
ii. criminal aspect = filed with MTC/ RTC
c. ULP of employers:
i. interfere with the right to self-organize
1. run-away shop - one wherein the employer moves its business to
another location or temporarily closes its business for anti-union
purposes
a. industrial plant moved by its owners from one location to
another to escape union labor regulations or state laws
b. plant removed to a new location in order to discriminate against
employees at the old plant because of their union activities
ii. require as condition for employment that a person shall not join/
withdraw from labor organization
1. known as Yellow dog contract
iii. contract out services to restrain or coerce the right to self-organize
1. note: ULP only if it was done so to coerce/restrain exercise the right
to self-organization
iv. interfere with the formation/ administration of labor organization
1. known as company unionism
v. discriminate to encourage/ discourage membership
vi. prejudice or discriminate against employee for having given or about to
give testimony under LC
vii. violate duty to bargain collectively
1. blue-sky bargaining - act of making exaggerated or unreasonable
proposals
2. surface bargaining - unwillingness to bargain; or to go thru
bargaining without intent to reach an agreement
3. boulwareism - "take it or leave it" offer; offer that is not meant to be
negotiated; ULP
viii. pay negotiation/ attorney's fees to the union/ officers/ agents as part of
the settlement of any issue in collective bargaining/ other dispute
1. paid negotiation
ix. violate CBA
d. ULP of Labor organizations:
i. coerce/ restrain employees in their exercise to their right to self-
organization
ii. cause Er to discriminate
iii. violate/ refuse to collectively bargain
iv. exaction
1. featherbedding - cause/attempt to cause an employer to pay/
deliver/ agree to pay or deliver any money or other things of value
for services not performed
v. ask for or accept negotiation or attorney's fee from employers as part of
the settlement of any issue in collective bargaining
 1. sweetheart''s contract - union to accept fees from Er as part of
settlement @ CBA dispute
a. ask money and in return agree not to improve employees' wages
and benefits
vi. violate CBA
e. notes: Union security clause is not a ULP
i. employer undertakes to recognize the right of the union who negotiated
the CBA to maintain and protect its membership by imposing certain
terms and conditions in hiring employees and retention of employment
ii. Kinds:
1. Closed shop agreement - hire only members of union + main tain
membership
2. union shop agreement - hire anyone + must become a member after
a specified period
3. maintenance of membership clause - does not require non-members
to join union, but those who join must maintain their membership
4. agency shop - requires employees, as a condition to employment to
pay agency fee to union for benefits from CBA
a. E: bona fide religious objections
b. also known as anti-free rider or hitchhiker
5. preferrential shop agreement - recognizes the right of the employer
to select his employees but requires him to give preference to
members of the contracting union who are qualified
iii. Valid termination of employment pursuant to union security clause;
requirements:
1. agreement is expressed in a clear and unequivocal way
2. prospective application only
3. due process strictly observed
4. cannot be applied to employees who are already members of rival
union; religious beliefs

117. Collective Bargaining and Administration of Agreements:

a. CBA - a contract executed upon request of either the Er or the exclusive
bargaining representative incorporating the agreements reached with
respect to wage, hours of work and other terms and conditions of
employment
b. duty to bargain does not include the obligation to reach an agreement
i. "duty to bargain collectively" - obligation to meet and convene promptly
and expeditiously in good faith for the purpose of negotiating an
agreement with respect to wages, hours and all other terms and
conditions of employment
c. good faith bargaining
i. no per se test of good faith in bargaining
ii. inference to be drawn from the facts
iii. refusal to make counter-proposal = nidicative of bad faith
d. jurisdictional preconditions in collective bargaining:
i. possession of the status of majority representation
ii. proof of majority representation
iii. demand to bargain
e. Procedure: (mandatory)
 i. any party serve written notice + statement of proposal
ii. reply within 10d from receipt
iii. @difference = conference
iv. if not settled in the conference = NCMB conciliation
v. during conciliation proceedings in the NCMB, parties are prohibited from
doing any act which may disrupt or impede the early settlement of the
disputes
f. Duty to bargain:
i. without CBA: duty of employer and representatives of the employees to
bargain collectively in accordance with LC
ii. with CBA: neither party shall terminate nor modify such agreement
during its lifetime.
1. may modify the agreement by serving written notice to
terminate/modify the CBA 60d prior to its expiration date
2. during the 60d period = status quo
118. Contract bar rule:
a. when there is an existing CBA, neither employer nor union may terminate nor
modify the CBA during its lifetime.
119. Freedom period:
a. refers to the 60d span prior to the expiration of the CBA.
b. it is the time when parties may terminate or modify the terms and conditions
of the CBA.
i. when agreement is prematurely signed by the union and company during
the freedom period, it does not affect the petition for certification
election filed by another union
c. time when a petition for certification election to challenge the majority status
of the contracting union
d. labor union may disaffiliate from the mother union to form a local or
independent union only during the 60d freedom period immediately
preceding the expiration of the CBA
i. E: shift of allegiance of the majority of the members of the union
120. Automatic Renewal clause
a. CBA shall remain effective and enforceable even after the expiration of the
period fixed by the parties as long as no new agreement is reached by them
and no petition for certification election is filed.
i. note:2 grounds to render automatic renewal clause nugatory: new CBA
and petition for certification election filed
b. no petition for certification election for any representation issue may be filed
after the lapse of the 60d freedom period.
c. old CBA is extended until new one is signed; contract bar rule applies
121. Terms of CBA:
a. representation issue: 5years
i. no petition questioning the majority status of the incumbent bargaining
agent shall be entertained and no certification election shall be
conducted by the DOLE outside the 60d period
b. economic provisions: 3 years
i. all provisions of the CBA renogiated into within 6mo from date of expiry
of the term = retroact from date immediately following such date.
 ii. @agreement entered into beyod 6mo = parties agree on the duration of
retroactive effect
iii. @CBA is a result of an arbitral award = date of effectivity based on
arbitral award
c. note: parties may suspend the right to CBA/ extend term of the CBA
i. ie. CBA effective for 10years, without renegotiation = valid agreement
ii. nothing in the law prohibits the parties from waiving or suspending the
mandatory timetables and agreeing on the remedies to enforce the same
122. Substitutionary doctrine
a. employees cannot revoke the validly executed collective bargaining contract
with their employer by simple expedient of changing their bargaining agent
b. even during the effectivity of a CBA, the employees can change the agent
but the contract continues to bind them up to its expiration date.
c. employees may bargain, but, for the shortening of said expiration date.
123. CBA deadlock
a. situation between the labor and the management of the company where
there is failure in the collective bargaining negotiations resulting in a
stalemate
b. remedies: strike/ lockout
c. E: no strike/ lockout shall be declared after assumption of jurisdiction of the
dispute by the President/ Sec. of Labor or after submission of dispute to
voluntary arbitration
d. no injunction/ TRO, except: grave irreparable injury; render ineffective any
decision
124. Exclusive bargaining representation:
a. labor organization designated or selected by the majority of the employees in
an appropriate collective bargaining unit shall be the exclusive
representative of the employees in such nit for the purpose of collective
bargaining unit.
b. however, individual employee/ group of employees shall have the right at
any time to present grievances to their employer
125. Bargaining unit
a. a group of employees sharing mutual interests within a given employer unit,
comprised of all or less than all of the entire body of employees in the
employer unit or any specific occupational or geographical grouping within
such employer unit
126. Collective bargaining unit
a. all of the employees of a single employer unless the employees ofa particular
department or division have voted otherwise
127. appropriate bargaining unit
a. a unit to be appropriate must effect a grouping of employees who have
substantial, mutual interests in wages, hours, working conditions and other
subjects of collective bargaining.
b. test s:
i. globe doctrine (will of employees)
1. the express will or desire of the employees shall be considered, they
should be allowed to determine for themselves what union to join or
form
2. the best way to determine their preference is through a referendum
 ii. community of interest rule
1. community of affinity of employees' interest, such as substantial
similarity of work and duties, or similarity of compensation and
working conditions in a unit is the determining factor whether or not
these employees belong to one bargaining unit
2. the fact that the plants are located in different places is immaterial,
communal or mutual interests of the employees are not sacrificed
iii. prior collective bargaining history
iv. employment status (temporary, seasonal and probationary)
128. One company, one union policy
a. Exceptions:
i. Er unit has to give way to the other units like the craft unit, plant unit, or
a subdivision thereof
ii. right of the employees to form unions or associations for purposes not
contrary to law, which the Constitution guarantees
129. Methods to determine the exclusive bargaining representative:
a. certification election
i. process of determining through secret ballot the sole and exclusive
representative of the employees in an appropriate bargaining unit for
purposes of collective bargaining or negotiation
ii. ordered by the DOLE
b. consent election
i. voluntarily agreed upon by the parties, with or without the intervention
of the DOLE
c. run-off election
i. refers to an election between the labor unions receiving the 2 highest
number of votes in a certification or consent election with 3/more choices
ii. provided: total number of votes for all contending unions is at least 50%
of the number of votes cast
d. voluntary recognition
i. process by which a legitimate labor union is recognized by the employer
as the exclusive bargaining representative/agent in a bargaining unit,
reported with the Regional Office
ii. Conditions:
1. there must be no other employees' organization registered/ seeking
to register, based on the records of the BLR
2. said organization must have the majority support of the rank-and-file
employees in the organizational unit
iii. filed within 30d from such recognition
iv. Er and union to submit notice of voluntary recognition with the Regional
Office, a recognized labor union's certificate of registration
1. sufficient in form and substance = recorded
2. not sufficient = ask to comply iwthin 30d
130. Certification election:
a. who may file: any legitimate labor organization
i. employer may file, when requested to bargain collectively
b. where to file: Regional office
i. petition heard solely by Med-Arbiter
c. When to file: anytime, except:
 i. one year bar rule/ election year bar - a certification election cannot
be held within 1 year from the date of issuance of declaration of a final
certification election result.
1. there must be an actual election
2. applies to consent election, run-off election and voluntary
recognition
3. note: if with existing and recorded CBA = 5years
ii. Negotiation bar rule
1. once the negotiation for a new CBA has been commenced, a petition
for certification election may no longer be validly entertained by the
DOLE
iii. Deadlock bar rule:
1. a petition for certification election can only be entertained if there is
no pending bargaining deadlock submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or
lockout
iv. Appeal bar rule
1. filing of the memorandum of appeal from the order or decision of the
Med-Arbiter stays the holding of any certification election
v. @ with existing CBA = only within freedom period
1. take note: contract bar rule
d. who can vote:
i. members of religious groups who do not want to join unions may vote in
a certification election
ii. dismissed employees + contested such dismissal
1. @F&E = cannot vote
iii. probationary employees may vote
iv. all R&F employees may vote
v. supervisory employees ccannot vote
e. posting of notices mandatory, and cannot be waived by either the Er or the
unions.
f. Challenging votes:
i. no employer-employee relationship between the voter and the company
ii. not a member of the appropriate bargaining unit which petitioner seeks
to represent
g. Election officer rule on any question relating to and raised during the conduct
of election
i. E: challenged votes
h. Process:
i. what to file: verified petition questioning the majority status of the
incumbent bargaining agent filed by any legitimate labor organization
with the DOLE
ii. Med-Arbiter automatically order election by secret ballot, when verified
petition is supported by written consent of at least 25% of all employees
in the bargaining unit.
iii. Requirement as to valid election: (double majority rule)
1. majority of all eligible voters in the unit must have cast their votes
2. union receiving the majority of the valid votes cast shall be certified
as the exclusive bargaining agent of all the workers in the unit
iv. Run-off election:
 1. when 3 or more choices results in no choice receiving a majority of
the valid votes cast
2. run-off election conducted between the labor unions receiving the 2
highest number of votes
3. provided: total number of votes for all contending unions is at least
50% of the number of votes cast
i. "no union" may win the certification election.
j. Appeal from certification election orders:
i. appeal Med-Arbiter's decisions directly to Sec. of Labor
ii. within 15 calendar days
iii. grounds: rules and regulations regarding conduct of election violated
131. Consent Election
a. rules:
i. in case the contending unions agree to a consent election, the Med-
Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement in the
minutes of the hearing
ii. pre-election conference shall be held, to agree on the conduct of the
consent election
iii. Med-arbiter to hold as many hearings and pleadings until agreement to a
consent election
1. not to exceed 15d from date of scheduled preliminary conference
b. effect of consent election: 1 year bar to the holding of certificate election
from the holding of such consent election
i. @appeal from results of consent election, running of 1-year period
suspended until the decision on appeal has beome final and executory
132. Run-off election
a. When occur:
i. election between 2 labor unions receiving the 2 highest number of votes
in a certification or consent election with 3/more choices, where such a
certification or consent election results in none of the 3 or more choices
receiving the majority of the valid votes cast; provided that the total
number of votes for all contending unions is at least 50% of the number
of votes cast.
b. ie.
i. Union A - 30, B -20, C - 10, no union - 40 = run-off between A and B
ii. A -10, B- 10, C - 20, no union -60 = no union wins
iii. A -51, B 9, C -10, no union- 30 - A wins
133. Petitions in unorganized establishments:
a. certification election shall automaticall be conducted by Med-arbiter upon the
filing of a petition by any legitimate labor organization
i. new rule: no need for the labor union to prove that at least 20% of Ee
supported the petition @ unorganized establishments
134. By-stander rule:
a. in all cases, whether the petition for certification election is filed by the
employer or a legitimate labor organization, the employer shall not be
considered a party thereto with a concomitant right to oppose a petition for
certification election.
 i. employers are strangers to these proceedings. They are forbidden from
influencing or hampering the employees' rights under the law. They
should not in any way affect, much less stay, the holding of a
certification election by the mere convenience of filing an appeal with
the labor secretary.
b. employer's participation limited to:
i. be notified/ informed of the petitions
ii. submitting the list of employees during the pre-election conference
should the Med-Arbiter act favorably on the petition
c. R: certification election is the sole concern of the workers.
d. E: Er. filed the petition for certification election, pursuant to LC259, where the
employer was requested to bargain collectively.

135. Grievance machinery and voluntary arbitration

a. grievance machinery - remedy for breach in mutual observance of CBA
provisions
i. if there is no provision of grievance machinery under the CBA =
grievance committee created within 10d from signing of CBA
b. voluntary arbitration - all grievence machinery not resolved within 7d =
automatically referred to voluntary arbitration
i. mode of settling labor-management disputes by which the parties select
a competent, trained and impartieal 3P who shall decide on the merits of
the case and whose decision is final and executory
ii. voluntary arbitrator - any person accredited by the NCMB or named or
designated in the CBA
136. Grievance
a. a complaint filed by an employee or his union representative regarding
working conditions and for resolution of which there is procedural machinery
provided in a union contract.
b. any question by either the employer or the union regarding the interpretation
or implementation of any provision of the CBA or interpretation or
enforcement of company personnel policies.
i. note: both employer and the bargaining representative may file for
grievance complaint
c. Rule: violation of CBA = not treated as ULP, except if gross violations
i. must go through grievance machinery
ii. "gross" = malicious refusal to comply with the economic provisions of the
CBA
iii. @ULP = LA and NLRC jurisdiction
137. Jurisdiction of Voluntary Arbitrator:
a. implementation or interpretation of CBA, and those arising from the
interpretation or enforcement of company personnel policies which remain
unresolved after exhaustion of the grievance procedure
b. hear and decide wage distortion issues; interpretation and implementation of
productivity incentive programs
c. upon agreement of the parties, ULP and bargaining deadlocks
d. note: parties may agree to submit any and all forms of labor disputes to the
voluntary arbitrator or panel of voluntary arbitrators for resolution
 i. E: special area of interest governed by a special provision of law (LA
jurisdiction)
e. VA may issue writ of execution
f. decisions of VA appealable to the CA
g. SC may review both questions of fact and law with regard the findings of the
VA
h. cost of arbitration = equally shared by the parties
i. E: agreement

138. Strikes and Lockouts

a. no strikes and lockouts on grounds involving inter-union and intra-union
disputes.
b. strikes and lockouts @ bargaining deadlock.
i. notice of filed with Sec. of Labor 30d before date of strike/ lockout
(cooling off period)
ii. ULP = 15d,
iii. except: (no cooling off period)
1. union busting
2. existence of union threatened
c. during the cooling off period, duty of Secretary to exert all efforts at
mediation and conciliation to effect a voluntary settlement
d. failure to settle dispute = may strike/lockout
i. majority of total union membership in the bargaining unit @ strike
ii. majority of BoD/ partner @ lockout
iii. how: by secret ballot + furnish Secretary of labor the result of vote 7d
before strike/ lockout
e. If in his opinion, the labor dispute @ industry indispensable to
national interest = Secretary of Labor or the President may assume
jurisdiction
i. may decide it or certify it to the NLRC for compulsory arbitration
f. Effect: all striking or locked out employees shall immediately return-
to-work and the employer shall immediately resume operations and
readmit all workers under the same terms and conditions prevailing
before the strike or lockout.
i. mere issuance of assumption order = have such effects
g. @hospital, clinics, medical institution = duty of striking union/ lockout
employer to provide and maitain an effective skeletal workforce
i. Sec. of DOLE may assume jurisdiction within 24hrs/ compulsory
arbitration
139. Labor dispute - any controversy concerning terms and conditions of employment,
association, representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relation of employer and
employee.
140. Concerted activity
a. any activity by individual employees who are united in pursuit of a common
goal
b. right of the workers to act together to protect their rights and improve their
living conditions
141. strike
a. any temporary stoppage of work by conerted action of employees as a result
of an industrial or labor dispute
b. Forms:
i. economic strike - demand economic benefits the law does not require to
grant
ii. ULP strike - protest against ULP committed by the employer
iii. Legal strike - for valid purpose and conducted through means allowed by
law
iv. illegal strike - purpose not recognized by law, or not conducted properly
v. slow down strike - does not stop work, merely slacking or reducing
normal work output
1. inherently illegal activity, essentiall illegal even in the absence of a
no-strike clause
vi. quickie strike - brief and unannounced
1. illegal strike
vii. wildcat strike - declared and staged without the approval of the majority
of members
1. union may discipline its members for participating in a wildcat strike
and impose fines
viii. sit down strike - stop working without leaving place of work
ix. sympathy strike - staged by workers of 1 company to make common
cause with strikes of other companies without demands/ grievances in
their own against their employer
1. illegal strike, because no labor dispute
c. requisites of a valid strike: (mandatory)
i. grounds: bargaining deadlocks or ULP
ii. proper procedure:
1. notice of strike 30d/15d filed with DOLE
a. E: union busting (no cooling-off period)
2. strike vote approved by majority of total union membership
a. must give NCMB notice of the conduct of strike vote at least
24hrs before the meeting for the said purpose
b. strike vote = secret ballot, results reported to NCMB 7d before
date of intended strike (strike vote balloting)
c. 7 day period = strike ban or waiting period
d. strike cannot be held within7d from the time the strike
vote result is reported to the NCMB. Failure to observe
the strike ban makes the strike illegal
3. notice given to DOLE of te results of voting at least 7d before
intended strike
142. Lockout
a. any temporary refusal of an employer to furnish work as a result of an
industrial or labor dispute
b. notice of lockout: to NCMB (cooling-off period)
i. labor dispute = 30d before intended date thereof
ii. @ULP = 15d
c. lockout vote
i. notice of meeting given to NCMB 24hrs before meeting
 ii. result of lockout vote given to NCMB 7d before intended date thereof
(waiting period)
143. Prohibited activities (Strikes/Lockouts)
a. must bargain first before declaring strike/lockout
b. must file notice first (follow cooling off period/ waiting period)
c. @grievance = must first be submitted to grievance committee as stipulated
in CBA
d. AFP/ PNP cannot escort any individual who seeks to replace strikers in
entering or leaving the premises of a strike area
i. strike-breaker - any person who obstructs, impedes or interferes with by
force, violence, coercion, threats, or intimidation any peaceful picketing
affecting wages, hours or conditions of work or in the exercise of the
right to self-organization or collective bargaining.
e. police force shall keep out of the picket lines
i. Unless: actual violence other criminal acts occur therein
f. no person engaged in picketing shall commit any act of violence, coercion or
intimidation or obstruct the free ingress to or egress from the employer's
premises for lawful purposes, or obstruct public thoroughfares
g. @assumption of Secretary of Labor = RTW, whether or not a corresponding
order has been issued
i. good faith not a defense in violation of assumption order
h. strike in violation of agreements providing for arbitration = illegal
i. picketing in front of SC is illegal
i. note: Right to picket may be regulated at the instance of 3P
j. other prohibited activities: shouted slanderous words, unnecessary and
obscene language to prevent other laborers to go to work, abusive and
threatening language towards the patrons of a place of business or against
co-employees, threatened non-striking employees with bodily harm
144. Effects of illegal strike/lockout
a. worker whose employment has been terminated as a consequence of any
unlawful lockout shall be entitled to reinstatement with full backwages
b. @ participate in illegal strike/ commission of illegal acts during a strike:
i. union officer = deemed lost employment
ii. ordinary worker = not terminate services unless proved that he
participated in illegal acts during the strike
1. employment of ordinary worker cannot be terminated for mere
participation in an illegal strike
2. must prove that he committed illegal acts
c. no separation pay for dismissed strikers @ illegal acts during strikes
d. note: must still observe due process in dismissing the strikers
145. Hiring of replacements:
a. GR: Er may continue business even if there is strike. No ULP in hiring
replacement workers
i. ER not obliged to terminate employment of replacement workers even
after striking workers decide to return to work
b. E: in ULP strikes, replacements must be dismissed once the striking workers
are reinstated to their former positions
146. Improved/reduced offer balloting
a. on or before the end of the 30th day of the strike, Er may offer imrpoved
offer. If accepted = immediately return to work
 b. @lockout = reduced offer before the end of the 30th day of lckout
147. When may arrest and detain:
a. GR: no union member/ organizer may be arrested without previous
consultation of the Secretary of labor
b. Except:
i. national security
ii. public peace
iii. commission of crime
1. obstructs the free and lawful ingress and egress of the employer's
premises
2. possession of deadly weapons
c. arrests and searches in strike/lockout areas = only on the basis of a valid SW/
WA