.. .

.
•r
•
?20 17 LA BOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

PRAYER FOR THE BAR EXAMINATIONS

0 God, we come before You this day,

as we are preparing/studying for the bar examinations.

This is the most important event in our lives,

one full of consequences for our own future,
and for the hopes and expectations of many who rove us and
are concerned for us: our parents and relatives, our friends,
our professors who have worked hard to prepare us for it.

We ask for help.

Make our memories ready to recall allthe
knowledge we have stored in them by our study.
Help us to understand the full meaning of the questions and
to see the exact answers.
Give us the facility of expression to answer
clearly and accurately.
Give us peace of soul
that we may not get upset under the pressure of the task.

We do not ask this by our own merits.

We cannot point to our faithfulservice
in the past as deserving of this special help.
We have in fact been careless and disobedient.

We ask this from Your Fatherly mercy and compassion through

Your Son, our Lord Jesus Christ.
Listen to our prayers through the intercession of our Blessed Mother,
patroness of our University and of St. Thomas More,
patron of our Law School.•

Amen.
•

•
• •
. '

'2
U0
na1u7 LrA
tho izeB
dOusR
e aLnA
dWreprB
odLuUctE
ionTol t•s material is prohibited.

Anong mas gusto ng manggagawa?

a. LODI
b. PETMALU
c. HODSA
d. WERPA
GOOD LUCK! ©

'

Special thanks to Atty. Marlon Manuel, Atty. Dante Cadiz, Atty. Cesario Azucena, and
Atty . Ryan Quan.
 •
•
2017 LABOR LAW BLUE TIPS
Unauthorized tise and reproduction of this material is prohibited.

FUNDAMENT AL PRINCIPLES

01· How is A rtic le 1702 of the Civ il Code correlated with A rtic le 4 of the Labor Code?
A1 Both Article 1702 of the C1v1I Code (NCC) and Article 4 of the Labor Code (LC) speak
of the rule on interpretation and construction provisions of law and labor contracts .
Article 1700 (NCC) applies to doubts and ambigu1t1es 1n
a. Labor leg1slat1ons;
b. Labor contracts such as an employment contract or a CSA;
c. Evidence presented in labor cases.
Article 4 (LC) applies to doLJbts and amb1gu1ties:
d. In the Labor Code; and
e. In the Implementing Rules of the Labor Code.

Q2. Can an employer terminate its employees based on a violation of Its company
rules and regulations?
A 2. { BERSAMIN) Yes. An employer is given a wide latitude of discret ion in managing its
own affairs. The broad discret ion includes the implementation of company rules and
regulations and the imposition of disciplinary measures on its employees. BUT the
exercise of a management prerogative like this t s not limitless, but hemmed in by good
faith and a due cons1derat1on of the right s of the wor ker. In this light , the management
prerogative will be upheld f or as long as it is not wielded as an implement to circumvent
the laws and oppress labor. (Nathaniel Dongon vs. Rapid Movers and Forwarders Co.
Inc., 2013)

Q3. What is the princ iple of co-determination?

A3. The principle of co-determination refers to the right of workers to participate in the
policy and decision making processes directly affecting their rights and benefits.
without intruding into matters pertaining to management prerogative. (PAL v. NLRC,
1993).

Q4. Does the principle of co-determination contemplate co-management of business

or intrusion into management prerogatives?
A4 . No. This principle does not mean that workers should approve management policies or
decisions. It just means that for those which affect the rights of the employees,
management should properly inform employees of its decisions or modes action. ( PAL
v. NLRC, 1993) .
Q5. What are green jobs?
AS. Green jo bs refer t o employment that contributes to preserving or restoring the qualit y of
the environment. be 1t in the agriculture, industry or services sector. Specifically, but not
exclusively, this includes jobs that help to protect ecosystems and biodiversity, reduce
energy, materials and water consumption through high efficiency strategies,
decarbonize the economy, and minimize or altogether avoid generation of all forms of
waste and pollution. Green jobs are decent jobs that are productive. respect the rights
of workers. deliver a fair income, provide securit y in the workplace and social protection
for families, and promote socialdialogue. ( Philippine Green Jobs Act of 2016, Sec. 4(c)
R.A. 10771, April 29, 2016)

RECRUITMENT AND PLACEMENT

Q6. What are the elements of illegal recruitment in large scale?

A6. {BERSAMIN) Three elen1ents must concur: (LR3)
1. of f ender has no valid!icense or authority to engage in recruitment and placement
of workers
2. offender undertakes any of the "recruitment and placement" act ivities under
Article 13(b). LC, or any of the prohibited practices enumerated under Article 34
LC or Sec. 6 of R A. 8042, •
3. offender committed the san1e against 3 or more persons. individually or as a
group (People v. Cagal1ngan, Nov ember 23, 2016) .

-
 '

•
• . 2017 LABOR LAW BLUE TIPS
Unauthor iz ed use and repro(luction of this mater ia l is prohibited.

BUT NOTE. Illegal recru1t111ent can be committed by a licensed recruiter or holder of

6
authority 1f he undertakes any of tt1e prohibited act1v1ties under Art icle 34, LC or Sec.
of R.A . 8042 . (Sto. Ton1as vs. Salac, 2012) .

07. What are some important principles on the persons liable for illega l recruitment?
A7.
1. Employees of a licensed recruitment agency may be held liable for ill gal
recruitment as pr1nc1pal by direct partic1pat1on, together with his e.mployer , if it is
shown that he actively and consciously participated in illegal recruitment. (People
v. Sagayaga, 2004) .
2. Good f aith and merely following orders of superiors are not valid defenses of an
employee . (People v. Gutierrez, 2004) . .
3. In case of 1ur1d1cal persor1s, the officers having control , management or d rect1on
of their business shall be liable. Thus, a manager of a recruitment agency is not a
mere employee and can be held liable for large scale illegal recruitment . (People
v. Gasacao, 2005)

QB. Is the solidary liability of corporate officers with the recruitment agency
''automatic'' in c haracter?
AB. No. In order to hold the off icers of the agency solidarily liable, it is required that there
must be proof of their culpability therefor. Thus , while it 1s true that R.A . 8042 and the
Corporation Code provide f or solidary liability , this liability must be so stated in the
decision sought to be implemented. Absent this express statement , a corporate off icer
may not be impteaded and made to personally answer for the liability of the
corporation. (Gagui v. Dej ero, 2013)

NOTE: Upon the cancellation of a license by the POEA, the persons, officers and
directors of the concerned corporations are automatically prohibit ed from engaging in
recruiting and pl acement of land-based overseas Filipino workers. ( Republic v.
Human/ ink Manpower Consultar1ts, Inc., 2015)

9. When do foreign laws apply to OFW contracts?

A9 . As a general rule, Ph1l ipp1ne laws apply even to overseas employment contracts
consistent with the Constitution's full protection of labor. Even if the OFW has his
employment abroad, it does not strip him of his rights to security of tenure, humane
conditions of work and a living wage under our Constitution.

As an exception, the parties may agree that foreign law shall govern the employment
contract . To fall under this exception, all the ff . requisites must be met: (EPCP)
1. ,Expressly stipulated in the contract that a specific fore ign law shall govern;
2. The foreign law must be Qroven
3. The foreign law stipulated must not be £Ontrary to law , morals, good customs,
public order, or public policy of the Philippines; and
4 . That the overseas employment contract must be processed through the POEA .
( IPAMS v. De Vera, March 7, 2016) -

10. What are the rights of PWDs?

A 10. Under the law, PWDs.are entitled to equal opportunity for employment. Consequently ,
no PWD shall be denied access to opportun1t1es for suitable employment . A qua lif ied
employee with disability shall be subject to the same terms and conditions of
mploment and the same compensa tion, priv ileges, benef its, fringe benef its,
1ncent1ves or allowances as a qualified able-bodied person. (Sec. 5 (par 1) R A
7277) . , . .

Q11. What wage rates apply to PWDs?

A 11.
1. Qualified Individual with Disability - 100°/o of the applicable minimum wa (S
5, R.A. 7277) ge ec.
2. Qualified Individual with Disability hired as an apprentice or learner _
less t an 75o/o of the applicable m1n1mum wage (Sec. 5, R.A. 727 ) not
3. Handicapped Workers - not less than 75°/o of the applicable minimum wa (A
80, LC) ge rt.
 •
• • I 2017 LABOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

A Qualified Individual with a Disability is an individual with a disability who, w

;lh r
1
without reasonable accommodations, can perform the essential functions 0 e
employment position that such individual holds or desires. ( Sec. 4, R.A. 7277)

Handicapped workers are those whose earning capacity is impaired by age or

physical or mentaldeficiency or injury. (Art . 78, LC)

LABOR STANDARDS

Q12. What are the effects of power interruptions/brownouts?

A12. The following are the effects of work interru1otion due to brownouts:
Brown-outs not Treated as compensable hours whether used
exceedin 20 minutes 1)roductivel\' b ·the em )I0 ·ees or not
1

Brown-outs more than 20 May NOT be treated as hours worked provided

minutes any of the following conditions are present:
• The employees can leave their workplace or
go elsewhere whether within or without the
work premises; or
• The employees can use the time effectively
for their own interest.
In each/ either case The employer may extend the working hours of
his employees outside the regular schedules to
compensate for the loss of productive man-hours
without beinct liable for overtime 1:>a '.
(Durabuilt Recapping Plant & Co. vs. NLRC, 1987)

Q13. What are the rest periods the Kasambahay is entitled to?
A13. Daily rest period - an aggregate daily rest period of 8 hours. (sec. 20, R.A. 10361)
Weekly rest period - at least 24 consecutive hours of rest in a week. The employer
and the Kasambahay shall agree in writing on the schedule of the weekly rest day but
the preference of the Kasambahay, when based on religious grounds, shall be
respected. (sec. 21, R.A. 10361)

Q14. What are the basic distinctions between wage and salary?
A14.
Waoe Salarv
Paid for skilled or unskilled manual Paid to white collar workers and
labor denote a higher grade of emolovment
Not subject to execution.garnishment Subject to execution, garnishment or
or attachment except for debts related attachment. (Gaa v. CA, 1985)
to food, clothing, shelter and
medicines Art . 1708, Civil Code

Q15. What are included/excluded in the te11n ''wage rate''?

A15. The term ''wage rate'' includes cost-of-living allowances as fixed by the RTWPB,
but excludes other wage-related benefits such as overtime pay. bonuses, night shift
differntiat pay. holiday pay, premium pay, 13th month pay. premium pay, leave
benefits, among others. (Sec. 2(g), D.O. 10-1998 Guidelines on the imposition of
Double Indemnity For Non-Compliance with the Prescribed Increases or Adjustments
In Wage Rates)
•

Q16. In addition to setting the n1inimum wage, can the Regional Tripartite Wages and
Productivity Board (RTWPB) provide additional exemptions?
A16. (ERSAMIN) Ys.. In crea ing the RTWPBs, Congress intended to rationalize wages.
firstly,.by establtsh1ng full time boards to police wages round-the clock, and secondI
by g1v1ng the boards enough powers to achieve this objective. y,

The RlWPBs are the thinking group of men and women guided by statutory sta d d
and ound by the rules nd gidelines prescribed by the NWPC. tn the nature f e:
functions, the RTWPBs 1nvest19ate and study all the pertinent facts to ascertain the
 •

• •
•
. 2017 LABOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

conditions in their respective regions. Hence. they are logically vested with the
ompetence to determine the applicable minimum wages to be imposed as well as the
industries and sectors to exempt from the coverage of their wage orders. ( NWPC
and R TWPB vs. APL and the TNMR, 2014)

Q17. When does Article 100 (Prohibition against Elimination or Diminution of Benefits)
of the Labor Code apply?
A17. Article 100 of the Labor Code is specifically concerned with benefits already enjoyed at
the time of the promulgation of the Labor Code. Article 100 does not. in other words,
purport to apply to situations arising after the promulgation date of the Labor Code.
(Apex Mining Company, Inc. vs. NLRC, 1992)

Q18. What is ''company practice'' that may come in the application of the Non-
diminution rule?
A18. Company practice is a custom or habit shown by an employer's repeated, habitual
customary or succession of acts of similar kind by reason of which, it gains the status of
a company policy that can no longer be disturbed or withdrawn.

The criteria that may be used to determine the existence of company practice are:
(CID)
1. The act of the employer has been done for a £Onsiderable period of time;
2. The act should be done consistently and ntentionally; and
3. The act should not be a product of erroneous interpretation or construction of a
goubtf ul or difficult question of law or provision in the CBA . ( Vergara, Jr. v. Coca-
Cola Philippines, Inc., C. R. No. 176985, April 1, 2013)

Q19. What are the methods of fixing the minimum wage rates?
A 19. There are two (2) methods, to wit :
''Floor-Wage'' method which involves the fixing of a determinate amount to be added
to the prevailing statutory minimum wage rates. This was applied in earlier wage
orders; and
''Salary..Cap ''or ''Salary-Ceiling'' method where the wage adjustment is to be applied
to employees receiving a certain denominated salary ceiling. In other words, workers
already being paid more than the existing minimum wage (up to a certain amount
stated in the Wage Order) are also to be given a wage increase.

The "Salary-Cap" or uSalary-Ceiling " method is the preferred mode. (Employers

Confederation of the Philippines v. National Wages and Productivity Commission, G.R.
No. 96169, September 24, 1991)

The distinction between the two (2) methods is best shown by way of an illustration.
Under the uFJoor Wage Method, ., it would be sufficient if the Wage Order simply set
P15.00 as the amount to be added to the prevailing statutory minimum wage rates;
while in the "Salary-Ceiling Method," it would be sufficient if the Wage Order states a
specific salary. such as P250.00, and only those earning below it shall be entitled to the
•
wage increase.

POST-EMPLOYMENT

Q20. Is an employee bound by a policy initiated after he was hired?

A20. Yes, the amended policy becomes an implied contract between the employer and the
employee if the latter continues to work while such amended policy is in effect. (Abbott
• Laboratories v. Alcaraz, 2013)

Q21. What are the requisites in order for fixed-term employment to be valid?
A21. (KFC-ED)
1. The fixed period of employment was nowingly and voluntarily agreed upon
by the parties, without any orce,duress or improper pressure being brought
to bear upon the employee and absent any other circumstances vitiating his
consent; or
2.
-It satisfactorily appears that the employer and employee dealt with each other on
more or less !!qual terms with no moral gominance whatever being

-
 '
• •
•

2017 LABOR LAW BLUE TIPS

Unauthorized use and reproduction·of this m aterial is prohibited.

xercised by the former on the latter . (Brent School vs. NLRC, 1989; reiterat ed
in AMA Computer - Paranaque vs. Austria, 2007)

022. What are the elements of LEGITIMATE job contracting?

A22. Based on law, sec. 4 of D.O. 18-Al and jurisprudence, the elements are:
!he contractor must be duly registered with the DOLE. lf not registered, the contractor
ts presumed a labor-only contractor.
1. The contractor carries a distinct and independent business and undertakes to
perform the job, work or service on its own responsibility, according to its own
manner and method, and free from control and direction of the principal in
all matters connected with the performance of the work except as to the
results thereof
2. The contractor has substantial capital and/or investment in the form of tools,
equipment, machineries, work premises, and other materials which are
necessary in the conduct of the business; and
3. The Service Agreement between principal and contractor should ensure
compliance with all the rights and benefits of workers under Labor Laws such
as labor and occupational safety and health standards, free exercise of the right
to self-organization, security of tenure, and socialand welfare benefits
•

NOTE: Important 4 terms to remember: CONTROL, MANNER & METHOD and

RESULT

Q23. What is the amount of ''substantial capital'' required under the new Rules?
A23. According to Sec.3(1) of D.0. 18-A,
1. In the case of corporations, partnerships or cooperatives - paid-up capital
stocks/shares of at least PJ Million; or
2. In the case of single proprietorship - a net worth of at least P3 Million.

NOTE: D.O. 174-17 increased the amounts to P5 Million.

Q24. What are the elements of LABOR-ONLY contracting?

A24. Based on law, 0.0. 18-A and jurisprudence, the following are the elements:
1. The contractor does not have substantial capital or investments in the form of
0

toots, equipment, machineries, work premises, among others, and the

employees recruited and placed are performing activities which are usually
necessary or desirable to the operation of the company, or directly related
to the main business of the principal within a definite or predetermined ,
period, regardless of whether such job, work or service is to be performed or
completed within or outside the premises of the principal; OR
2. The contractor does not exercise the right of control over the performance of the
work of the employee.

NOTES:
- Even if the contractor has more than sufficient capital or investment in terms of tools,
equipment, machineries, work premises, still, it cannot be denied that workers
performing activities which were directly related to the principal business of the
employer. The possession of sufficient capital is only 1 element. Labor-only contracting
exists when any of the two elements is present. ( Quintanar v. Coca-Cola Bottlers, June
28, 2016)
- An unregistered contractor is presumed to be a labor-only contractor. Registration
should be made with the DOLE. (sec. 14, 0.0. 16-A)

Q25. What are the distinctions between legitimate job contracting and labor-only
contracting?
A25 . The important distinctions between legitimate job contracting, on the one hand, and
the rohibited labor-onl contrac tin , on the other. ma · be summed u as follows:
LEGITIMATE JOB CONTRACTING LABOR-ONLY CONTRACTING

1 This has been superseded by Department Order No. 174.Series of 2017 (issued on March 16, 2017) -
Rules Implementing Articles 106 to 109 of the Labor Code, as Amended.
 •
••
• . 2017 LA BOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.
,.... - ------
No employer-emplo_y_e_e relationship An employer-employee relationship ;s
exists between the contractual created by law between the principal
employees of the job contractor and and the employees supplied by the
the ::>ri nci oal.--- - - labor-onl·v
---1....:.=-: contractor.
_.::::..:.L..::.::.:
..::.:..:: :----:----::-::-
PrincipaI is considered only an Principal is considered the ''direct
''indir ect empl oy er''. employ er'' of the employees supplied
b the labor-onIv contractor
The solidary obligation of the The principal becomes solidarily liable
principal and the legitimate job with the labor-only contractor to the
contractor is only for a limited latter,s employees in the same manner
purpose, that is, to pay the wages of and extent that the principal is liable to
the contractor's employees supplied to employees directly hired by him/her
the principal.

Other than this obligation of paying the

wages , the principal is not responsible
for any claim made by the contractor 's
emolo 'ees .

Q26. Can positions be contracted out regardless if the activity is peripheral or core in
nature?
A26 . Yes, the Labor Code and its in1plementing rules allow contracting arrangements for the
performance of specific jobs, works or services. Indeed, it is management prerogative
to farm out any of its activities. regardfess of whether such activity is peripheral or core
in nature. However, in order for such outsourcing to be valid, it must be made to an
independent contractor because the current labor rules expressly prohibit labor-only
contracting. (Aliviado vs. P&G, 2010)

Q27. What are the distinctions between Voluntary Resignation and Involuntary
Resignation?
A27.
VOLUNTARY RESIGNATION INVOLUNTARY RESIGNATION
Art . 300, LC I
On service of written notice resianation letter
Requires written resignation letter at No such requirement.
least 30 days before its effectivity
date.
On the consequence of fai l ure to serve a written noti ce
.
It would make the resigning employee No adverse consequence since not
liable for damages . (Art. 297(b), LC, required.
Abandonment 1
On whether there is illeqalor constructive dismissal •
There can be no constructive Constructive discharge S
• •
I an
dismissal. since resignation IS involuntary resignation resorted to
•
voluntarily and freely tendered by the when continued employment IS
employee rendered impossible, unreasonable or
unlikely ( Consolidated Food
Corooration vs. NLRC, 1999

Q28. Is a transfer of assignment always tantamount to a constructive dismissal?

A28. No, as tong as the transfer is not unreasonable, inconvenient or prejudicial to the
employee, or involves a demotion in rank or diminution of salaries, benefits and other
privileges.

(BERSAMIN) By having voluntarily affixed their signatures on their respective letters of

appointment, X acceded to the terms and conditions of employment incorporated
therein. The right of the employee to security of tenure does not give her a vested right
to her position as to deprive management of its authority to transfer or reassign her
where she will be most useful, when such transfer was prompted by the shortage of
personnel at the Manila Office as a result of the resignation of the managers and
director. (Chateau Roya/e Spotts v. Balba, G.R. No. 197492, January 18, 2017)
 •

•
•
2017 LABOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

. .
029. Is cr al prosecution or con . t. n req . d b fore an employee may be
1m1n v1c 1o uire e
dismissed on the ground of loss of confidence? f" d nee an
1
A29. (BERSAMIN) No an employer may validly d1sm1ss f or loss of trust and con e
employee who c mmits an act of fraud prejudicial to the interest of the employer.
(Concepcion v. Minex Import Corporation, 2012)

The elements of a valid dismissal on the ground of Loss of Conf idence are: (AL T-SSG)
1. There must be an Ct, omission or .co ealment; . f he
2. The act. omission or concealment 1ust1f1es the!oss of trust and confidence o t
emp1oyer to the employee; . .
3. The employee concerned must be holding a position of rust and confidence.
4. The loss of trust and confidence should not be mulated; .
5. lt should not be used as a subterf uge for causes which are improper, illegal, or
unjustified; and
- . .
6. It must be genuine and not a mere afterthought to justify an earlier action taken in
bad faith. (Sec. 5.2(e), 0.0. No. 147-15)

Q30. What is required for willful disobedience to the lawfulorders of an employer to

be a ground to terminate an employee?
A30. (BERSAMIN) The elements are: (DIRKD)
1. There must be disobedience or insubordination;
2. The disobedience or insubordination must be willful or ntentional characterized
by a wrongful and perverse attitude
3. The order violated must be reasonable, lawful, and made nown to the
employee ; and
4. The order must pertain to the uties which he has been engaged to discharge.

Also, the conduct of the employee must constitute harmful behavior against the
business interest or person of his employer. (Oongon vs. Rapid Movers and
Forwarders Co. Inc.. 2013; Sec. 5.2(b) D.O. 147-15)

Q31. What are the elements of a valid dismissal on the ground of serious misconduct?
A31. The elements are: (M-GUD)
1. There must be misconduct;
2. Misconduct must be of such grave and aggravated character;
3. A showing that the employee becomes !!nfit to continue working for the employer
4. Misconduct relates to the performance of the employee's f!uties (sec. 5.2(a), 0.0.
No. 147-15)

(BERSAMIN) A fight between an employee and a customer may be misconduct or

improper behavior. The SC characterized fight as not just a merely verbal tussle but a
physicalcombat between two opposing parties. For misconduct or improper behavior to
be a just cause for termination of employment, it should be so serious that it entailed
the termination of her employment even if it was her first offense. (Northwest Airlines
Inc. vs. Del Rosario, 2014) .

Q32. What are the elements of valid dismissal based on a willful br each of trust?
A32. The elements are: (ABEC)
1. There must be an Cl, omission, or concealment;
2. The act, omission or concealment involves a 2reach of legal duty, trust, or
· confidence justly reposed;
3. It must be committed against the mployer or his/her representative· and
4. It must be in £Onnection with the employees' work . (0.0. No. 147- 1S)

Q33. What are the standards that an employer should meet to justify retrenchment?
A33. (BERSAMIN) The Court has laid down the following standards that an employer should
meet to justify retrenchment and to foilabuse, namely : (SINS)
1. The expecte losses should be Ubstantial and not merely de minimis in extent;
2. The substantial losses apprehended must be reasonably mminent;
3. The retrenchment must be reasonably necessary and likely to effectively prevent
the expected losses; and

-
 •

•
•
, 2017 LABOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

4. The alleged losses, if already incurred, and the expected i.mmin nt losses sought
to be forestalled must be proved by sufficient and conv1nc1ng evidence. .
Failure to present sufficient evidence is
crucial. If the. emloyer o Y !ai ms
employee's termination is due to its "present business/ftnanc1al cond1t1on, this
statement falls short of the norm to show a valid retrenchment ( Legend Hotel v.
Realuyo, 2012) .

Q34. Is a mere change in corporate name considered under the law a a c eat on of a
new corporation and cessation of the old corporation, warranting d1sm1ssal of
the latter's employees? . .
A34. (BERSAMIN) No. The mere change in the corporate name ts not cons1derd under he
law as the creation of a new corporation hence, the renamed corporation remains
liable for the illegal dismissal of its employee separated under that guise.

The situation is not similar to that of an enterprise buying the business of another
company where the purchasing company has no obligation to rehire terminated
employees of the latter. Being a mere continuation of the old corporation, it still has to
honor its obligations. Thus, the dismissal of an employee on the pretext that it is a
different corporation, is illegal and ineffectual. (Zue/lig Freight and Cargo Systems vs.
NLRC, 2013)

Q35. What is the effect if the dismissalof an employee is based on a valid cause but
without due process?
A35 . (BERSAMIN) Although an employer may legally dismiss an employee for a just cause,
the non-observance of the requirements of due process before effecting the dismissal
leaves the employer liable for nominal damages. ( Samar-Med v. NLRC, 2013) ·

• In Agabon v. NLRC (2004), the Court awarded nominal damages amounting to

P30K without distinguishing between just and authorized causes.
• In Jaka Food v. Pacot (2006), the Court distinguished between just and
authorized causes. It stated that if a just cause for dismissal exists, the nominal
damages for non-compliance with procedural due process requirements must be
tempered (since it is caused by the conduct of the employee) as compared to an
authorized cause.
• Industrial Timber v. Ababon (2006), further refined Jaka. For authorized causes,
if the dismissal was due to business losses, the damages to be awarded should
be less compared to a dismissal not due to business tosses.

Q36. What if the payment of nominal damages becomes impossible, unjust, or too
burdensome?
A36. ln instances where the payment of nominal damages becomes impossible, unjust, or
too burdensome, modification becomes necessary in order to harmonize the
disposition with the prevailing circumstances.

In the determination of the amount of nominal damages, several factors are taken into
account: (ANC-TB)
1. the Uthorized cause invoked (whether it was a retrenchment or a closure or
cessation of operation of the establishment due to serious business losses or
financial reverses or otherwise)
2. the number of employees to be awarded;
3. the £apacity of the employers to satisfy the awards, taken into account their
prevailing financial status as borne by the records;
4. the employer's grant of othe.r!ermination benefits in favor of the employees;
5. whether ther as a !!on fide attempt to compty with the notice requirements as
oposed to g1v g no not1c.e at.all. (Sangwoo Phil. v. Sangwoo Phils. Employees
Union, 2013 (c1t1ng Industrial Timber Corporation v. Ababon, 2006))

Q37. During the uration of the 30-day notice under Ar t. 298 (Closure of Establishment
and Reduction of Personnel), can an employer choose to not require em I
to report for work? P oyees
A37. Ye, an employer m y opt not to require the dismissed employees to report for w k
during the 30-day notice period. It is within the employer's prerogative and discretion°
0
------ . ·- ---------
•
·
•
;::· .t" .,_t 2017 LABOR LAW BLUE TIPS
·1,. ... ; Unauthorized uae and reproduction of this materialIs prohibited.
' t· ue paying their sala1 :,s
retain the services of its employees for 1 month and to con in k
0
t b done
and benefits corresponding to that period even when there is no more wor e ·
(PNCC Skyway Corp. v. Secretary, April 19, 2016)

Q38. An assistant outreach director was hired by a CATHOLIC School.Two years later
she became pregnant and conceived a child out of wedlock.She was eventually
dismissed for disgracefulorimmoralconduct Is the termi ation va.ld?
A38. No. The determination of whether a conduct is disgraceful or immoral involves a two-
-step process: . .
1. a consideration of the totality of the circumstances surrounding the . onduct,
2. an assessment of the said circumstances vis-a--vis the prevailing norms of •
conduct i.e., what the society generally considers moral and respectable.
•

Premarital sexualrelations between two consenting adults who have no impediment to

marry each other, and consequently, conceiving a child out of wedlock, gauge from a
purely public and secular view of morality, does not amount to a disgracefulor immoral
conduct.Public and secular morality should determine the prevailing norms of conduct,
not religious morality. (Leus v. SSC Westgrove, 2015 as cited Capin-Cadiz v. Brent,
February 24, 2016 and Inocente v. · St. Vincent, June 22, 2016)

Q39. Can an unjustified reduction of working days constitute illegaldismissal?

A39. Yes, when an employer committed illegal reduction of work hours, the employer may
be held liable for constructive dismissal. An employers unilateral and arbitrary
reduction of the work day scheme significantly reduces employees' salaries thereby
rendering it liable for constructive dismissal. (lntec Cebu v. CA, June 22, 2016)

Q40. What are the other reliefs that are not provided in the Labor Code but are granted
inillegaldismissalcases?
A40. The following reliefs that are awarded in illegal dismissal cases, other than those
granted under Article 279:
1. Award of separation pay in lieu of reinstatement. (Starlight Plastic Industrial
Corporation v. NLRC,G.R. No.78491, 1989)
2. ward of penlty in the form of nominal damages in case of termination due to
Just or authorized cause but without observance of procedural due process.
(Agabon, 2004)
3. Award of damages and attorney's fees.(Suaro v. BPI, G.R.No.50459, 1989)
4. Award of financial assistance in cases where the employee's dismissal is
declar d leg.al but ecause of tong years of service, and other considerations,
financ Iassistance .'s awarded. (PLOT v. NLRC, G.R. No. L-80609, 1988)
5. fmpostt1on of legal interest on separation pay, backwages and other moneta
awards. (Chan, 2017) ry

Q41. Whoa orders of reinstatement are executory even pending appeal?

A41. he reinstatement ord rs of the Labor Arbiter as well as the Voluntary Arbiter's Th
reon to treat t ay less than the reinstatement that is ordered by th La
r 1 er. o1untary arb1trat1on really takes precedence over th d'
device . The reinstatement order by the Voluntary Arbitrato sr l sute se httlement
authority, force and effect as that of the reinstatemen ou ave t e same
nly to encourage parties to settle their dis utes throu t orer by the Labor Arbiter not
importantly,to enforce the constitutionalm ndate to p!ht' ode, but a.lso, and more
tenure, and to enhance socialjustice. (Baronda v. CA, Ocie14 21 provide security of

There is no way the. employer can disre ard th .

does not stay the execution of immediat relnst ::::te
(ret n2t2o9rder . Posting of a bond
· · ,par. 3, LC)
Q42. How Is a reinstatement orde b th L
NLRC? r y e abor Arbiter different from that of by the
A42. The reinstatement order by the Labor Arb't . .
(Composite Enterprises v. Caparoso G e · 1ately executory pending appeal
No. 207983, 2014) '. · · · , 2007; Wenphil v. Abing, G.R
•
 ..
-.
..- .... ...
•
•• . " 1 2017 LABOR LAW BLUE TIPS
..:.. _ :'· Unauthorized use and reproduction of this material Is prohibited.

lf ordered by the NLRC, on appeal, or the Court of Appeals, under a Rule 65 certiorari
petition, or even by the Supreme Court, reinstatement is not immediately execut?ry.
This means that the employee reinstated should still file a motion for issuance of writ of
exe.cution to enforce the reinstatement. (Panuncillo v. CAP, 2007)

Q43. Are there instances where writ of execution of Labor Arbiter's reinstatement
order is stil required?
A43. Yes, under the following two (2) instances,viz.:
1. When the employer disobeys the Rules-prescribed directive to submit a report of
compliance within ten (10) calendar days from receipt of the decision; or
2. When the employer refuses to reinstate the dismissed employee.

NOTES:
- The Labor Arbiter shall motu proprio issue a corresponding writ to satisfy the
reinstatement wages as they accrue until actual reinstatement or reversal of the
order of reinstatement.
- The employee need not file a motion for the issuance of the writ of execution since .
the Labor Arbiter shall thereafter motu proprio issue the writ. Employer may be
cited for contempt for his refusalto comply with the order of reinstatement.
- Employer is liable to pay the salaries for the period that the employee was ordered
reinstated pending appeal even if his dismissal is later finally found to be legal on
appeal. (Section 12, Rule XI, 2011 NLRC Rules of Procedure)

Q44. What are the requisites for a valid quitclaim executed by a local employee and a
migrant worker?
A44.
LocalWorkers Miarant Workers
(L-FEN) (FB-TESS)
Lack of fraud or deceit Fixed amount as full and final
Entered into Freely and voluntarily compensation
Trade-off is Equ;table and credible The Benefits of the OFW and
Not contrary to law, public order, corresponding monetary amounts
public policy, morals, good customs. which he is giving up for the
nor prejudicial to a third person with acompromised amount
right recognized by law. A statement that the quitclaim and its
( Goodrich Manufacturing Corp. ·v. nature and consequences have been
Ativo, 2010) Explained to him in a language or
dialect he understands
A statement that the quitclaim has
been signed knowingly and voluntarily
and consent was without Threat or
other undue influence
Signed by two (2) witnesses who can
attest to the execution
Subscribed and sworn to.
(EDl-Staffbui/ders International.. Inc.
vs. National Labor Relations
Commission. 2007

Q45. What Is the rule on Early Retirement Plans?

A45. A retirement plan giving the employer the option to retire its employees below the ages
provided by law must be assented to and accepted by the latter, otherwise, its
adhesive imposition willamount to a deprivation of property without due process of law.
(Cercado v. Uniprom, G.R. 188154, 2010)
'

Q46. WhatIs the Statutory Compulsory and Optlonal Retirement Age?

A46.

Optional Retirement Age Compulsory Retirement

Age
•
•
J. •'I ·, 2017 LABOR LAW BLUE TIPS
I .
• • '

-- Unauthorized use and reproduction of this materialIs prohibited.

General Rule (Art . 60· years of age 65 years of age

302 LC)

Underground and 50 years of age 60 years of age

Surface Mining
Employees
(Labo
r
Code as amended
by R.A. 7641 and
10757) 55 years of age

Duly Licensed NIA

Professional
Racehorse Jockeys
(Art. 302- A LC as
amended by R.A.
10789)

Q47. Is an employee who was terminated for authorized causes (redundancy), also
entitled to avail of early retirement benefits? Otherwise stated, may an employee
be paid both retirement and separation pay benefits?
A47 . Yes. as a general rule.

Exception:When there is an explicit provision in the company rules prohibiting the

availment of both.

Employees are legally entitled to recover both separation pay and retirement benefits
in the absence of a specific prohibition in the Retirement Plan or CBA. In such an
instance where both the company rules or CBA and the retirement plan are silent, an
employee is not barred from claiming his early retirement benefits, even if he/she had
already received his retrenchment pay, and has executed a Quitclaim to that effect.
This must be so because he is legally entitled thereto as a general rule. (Goodyear vs.
Marina Angus, G.R. No. 185499, 2014)

MANAGEMENT PREROGATIVE

Q48. Is the granting of a bonus a demandable and enforceable obl gation?

A48 . (BERSAMIN) Generally, the grant of a bonus or special incentive, being a
management prerogative, is not a demandable and enforceable obligation, EXCEPT •
when the bonus or special incentive is made part of the wage, salary or compensation
of the employee, or is promised by the employer and expressly agreed upon by the
parties. By its very definition, bonus is a gratuity or act of liberality of the giver, and
cannot be considered part of an employee's wages if it is paid only when profits are
realized or a certain amount of productivity is achieved. If the desired goal of
production or actual work is not accomplished, the bonus does not accrue. ( Mega
Magazine Inc. Jerry Tiu and Sarita Yap vs.Margaret Defensor, G.R. No. 162021, June
16, 2014)

SOCIAL WELFARE LEGISLATION

Q49. What are the requisites for compensabllity of injury or Ilness of seafarers?

A49.
1. It should be work-related and
2. The injury or illness existed during the term of the seafarer's employment
contract. ( INC Shipmanagement, Inc. Captain Sigfredo E. Monterroyo and/or
lnterorient Navigation Limited v. Alexander L. Moradas, G.R. No.• January 15,
2014)

QSO. In the availment of funeral and bereavement aid under the CBA, may the
Company interpret ''legal dependent•• In accordance with the SSS definition of
 ·
---
.

•· 1 ·.. 2017 LABOR LAW BLUE TIPS

• • • •

• . '

t
\
Unauthorized use and reproduction of this material ls prohibited.
1
'beneftciary•• and hence, refuse payment of the benefit when such dependent
does not fit such definition?
ASO. (BERSAMIN) No. The coverage of the term legaldependent as used in a stipulation in
a collective bargaining agreement (CBA) granting funeral or bereavement bene:it .to a
regular employee for the death of a legal dependent, if the CBA is silent about it, ts to
be construed as similar to the meaning that contemporaneous sociallegislations ave
set. This is because the terms of such sociallegislations are deemed incorporated in or
adopted by the CBA.. .

Accordingly, the concurrence of a legitimate spouse does not disqualify a child or a

parent of the employee from. being a legaldependent, provided substantial evidence is
adduced to prove the actual dependency of the child or parent on the support of the
employee. (Philippine Journalists Inc. vs. Journal Employees Union, G.R. No. 192601,
June 3. 2013)

LABOR RELATIONS

051. Ara ambulant,inte1111ittent and Itinerant workers the only workers who may for an
and join a workers• association?
A51. No. The last sentence of Art. 253 broadens the coverage of workers who can form or
join a workers• association and is not exclusive to ambulant, intermittent and itinerant
workers. The right to self-organization is not limited to unionism. Workers may also
form or join an association for mutual aid and protection and for other legitimate
purposes.

Right to self-organization includes right to form a union.workers• association and labor

management councils. While every labor union is a labor organization, not every labor
organization is a labor union. Collective bargaining is not the end-goal of employee
•
representation, but employee participation. (Samahan ng mga Manggagawa sa Hanjin,
G.R. 211145, Oct. 14, 2015). .

Q52. Is commingling or mixed membership of supervisors and rank-and-file

employees in the SAME BARGAINING UNIT allowed?
A52. No. It is not allowed. However, it bears noting that in case there is commingling or
mixed membership of supervisors and rank-and-file employees in SAME
BARGAINING UNIT .the new rule enunciated in Article 256 [245-A] of the Labor Code.
unlike in the old law.is that it cannot be invoked as a ground for the cancellation of the
registration of the union. The employees so improperly included are automatically
deemed removed from the list of members of said union. In other words, their removal
from the said list is by operation of law. (Holy Child Catholic School vs. Sto. Tomas.
G.R. 119146, 2013)

NOTE:The prohibition used to be the comminglingin ONE UNION.The amendment by

R.A.9481 now clarifies that the prohibition pertains to the commingling of employees of
different bargaining units.

Q53. What Is the nature of the rel.atlonship between the union andIts members,and
between thelabor union and federation?
A53. It is in the nature of a principal-agent relationship.the members b·eing the principaland
the union, the agent; and the labor union being the principal and the federation, the
agent. (Insular Hotel Employees Union-NFL vs. Waterfront Insular Hotel Davao, G.R
No. 174040-41, September 22, 2010)

Q54. Should the pendency of a petition for the cancellation of registration bar the
conduct of the certification election? ·
A54. (BERSAMIN) No, the pendency of the cancellation of union registration brought
against the labor organization applying for the certification election should not prevent
the conduct of the certification election. Only a final order for the cancellation of the
registration would have prevented the petitioner union from continuing to enjoy alt the
rights conferred on it as a legitimate labor union, including the right to the petition for
the certification election. (Heritage Hotel v. Secretary, July 23, 2014)
• ------ -----
• •
•
"l
.••. ·.
=·
••
. 2017 LABOR LAW BLUE TIPS
• Unauthorized use and reproduction of this material is prohibited.

ass. Is a registered union required to submit financial statements and/or keep

membership representing 20°/o of the appropriate bargaining unit throughout its
lifetime, or risk cancellation of its registration?
A55 . No. The constitutionally guaranteed freedom of association and right of workers to self-
organization outweighs respondent's noncompliance with the statutory requirements to
maintain its status as a legitimate labor organization.

The amendment to Art. 247(239) of the Labor Code introduced by RA 9481 sought to
strengthen the workers' right to self-organization and limited the grounds for the
cancellation of union registration. The failure to submit periodic financial statements is
no longer a ground for cancellation. ( The Heritage Hotel Manila v. NUWHRAIN-
HHMSC, 2011)

Q56. Is the employer a proper party to assail proceedings of a certification election?

A56 . (BERSAMIN) No. Basic in the realm of labor union rights is that the certification
election is the sole concern of the workers, and the employer is deemed an intruder as
far as the certification election is concerned.

Thus, the petitioner lacked the legal personality to assail the proceedings for the
certification election, and should stand aside as a mere bystander who could not
I
oppose the petition, or even appeal the Med-Arbiter's orders relative to the conduct of
the certification election: The petitioner's meddling in the conduct of the certification
election among its employees unduly gave rise to the suspicion that it intended to
establish a company union. For that reason, the challenges it posed against the
certification election proceedings were rightly denied. (Heritage Hotel Manila vs.
Secretary of Labor and Employment, G.R. No. 172132, July 23, 2014)

Q57. What are the requisites for valid check-off of special assessment?
A57. The law strictly prohibits the check-off from any amount due an employee who is a
member of the union, of any union dues, special assessment, attorney's fees,
negotiation fees or any other extraordinary fees other than for mandatory activities
under the Labor Code (Art . 250 (n)). UNLESS the following are present:
1. an authorization by a written resolution of the majority of all the union
members at the general membership meeting duly called for the purpose;
2. secretary's record of the minutes of the meeting; and
3. individual written authorization for check-off duly signed by the employee
concerned. ( Eduardo J. Marino, Jr. et al. vs. Gil Y. Gamilla, et al.. G.R. No.
149763, July 7, 2009)

Q58. Can a member of a union, other than the bargaining agent, be made to pay
agency fees in addition to their respective union dues?
A58 . Yes. The bargaining agent which successfully negotiated the CBA with the employer is
given the right to collect a reasonable fee. called ''agency fee'' from its non-members -
who are employees covered by the bargaining unit being represented by the bargaining
agent - in case they accept the benefits under the CBA. It is called "agency fees"
because by availing of the benefits of the CBA. they. in effect, recognize and accept
the bargaining union as their "agent• as well. (Arl. 259(248] , par. (4), Labor Code)

Q59. Are reinstated employees who participated in an Illegal strike entitled to full
backwages?
A59. (BERSAMIN) No, the principle of a "fair day's wage for a fair day's labor" remains as
the basic factor in determining the award thereof. If there is no work performed by the
employee there can be no wage or pay unless, of course, the laborer was able, willing
and ready to work but was illegally locked out, suspended or dismissed or otherwise
illegally prevented from working. (Escario v. NLRC, G.R. No. 160302, September 27,
2010)

Q60. What are the procedural requirements for valid strike?

A60. (BERSAMIN) The procedural requirements for a valid strike are the following:
1. Notice of Strike or Lockout - filed with the DOLE at least 30 days before the
intended date thereof, or 15 days in case of ULP
2. Cooling Off Period
•

:. 1·.Unauthorized
2017 LABOR LAW BLUE TIPS
•
• •

\.
use and reproduction of this materialIs prohibited.
•

3. Notice of meeting for Strike or Lockout vote - at least 24 hours before the conduct
of said meeting
4. Conduct AND results of Strike or Lockout vote reported
5. 7-day strike ban observed

These requirements are mandatory, such that non-compliance therewith by the union.
will render the strike illegal. Open voting is strictly prohibited. (Hongkong & Shanghai
Banking Corporation, et a/ vs. NLRC, G.R. No. 156635, January 11, 2016)

Q61. Does the non-compliance with the procedural requirements. or coducting a

valid strike negate the claim of good faith on the part of the str1k1ng u1on?
A61. (BERSAMIN) Yes. The petitioners' disregard of the procedural requirements for
conducting a valid strike negated their claim of good faith. For their claim to be upheld,
it was not enough for them to believe that their employer was guilty of ULP, fr they
must also sufficiently show that the strike was undertaken with a modic m ?f obe1sa ce
to the restrictions on their exercise of the right to strike prior to and during its execution
as prescribed by the law. They did not establish their compliance with the requirements
specifically for the holding of the strike vote and the giving of the . strike notice.
(Hongkong & Shanghai Banking Corporation, et al vs. NLRC, G.R. No. 156635,
January 11, 2016)

Q62. In order to acquire jurisdiction under Art. 128 (Visitorial and Enforcement
Powers), does the Secretary of Labor and his duly authorized representatives
need to make a finding as to the existence of an employer-employee
relationship?
A62. Yes. under Art. 128 the jurisdiction of the Secretary of Labor is dependent on the
existence of an employer-employee relationship. A Regional Director's Order which
merely noted the violations of labor standards during the inspection, without making
any categorical determination on the existence of an employer-employee relationship,
and without making any reference to any concrete evidence to support a finding of an
employer-employee relationship, the DOLE does not have jurisdiction to direct
compliance with the alleged violations of labor standards. { South Cotabato v. Sto.
Tomas, June 15, 2016)

Q63. Which court has originaljurisdiction over illegaldismissal cases?

A63 . (BERSAMIN) Under Art. 217, it is clear that a LA has original and exclusive jurisdiction
over termination disputes. However, under Art. 261, a VA has original and exclusive
jurisdiction over grievances arising from the interpretation or enforcement of company
policies. As a general rule then, termination disputes should be brought before the LA,
except when the parties unmistakably express that they agree to submit the same to
voluntary arbitration. (Negros Metal Corporation v. Armelo Lamayo. GR No. 186557,
August 25, 2010)

Q64. Does the Labor Arbiter have jurisdiction over the alleged ilegal dismissal of a
corporate officer?
A64 . (BERSAMIN) No. Where the complaint for illegal dismissal concerns a corporate
officer.. t e controversy falls under the jurisdiction of the Securities and Exchange
Comm1ss1on (now RTC), because the controversy arises out of intra-corporate or
partnership relations between and among stockholders, members, or associates. or
between any or all of them and the corporation, partnership, or association of which
they are stockholders, members, or associates, respectively; and between such
corporation, an hip, or asociatio and the. State insofar as the controversy
concerns th1r 1nd1v1dual franchise or right to exist as such entity; or because the
controversy involves the lection or appointment of a director, trustee, officer, or
managr of such corp?rat1on. partnersip, or associ tion. Such controversy. among
others, ts n w s an intra-corporate dispute. Note: intra-corporate disputes are now
under te JUr1sd1ct1on of the RTC pursuant to the Securities Regulation Code. (Matlin
lndustnal v. Coros, G.R. No. 157802, October 13, 2010) g

Q65. How is an appeal to the Court of Appeals perfected?

1· 1 2017 LABOR LAW BLUE TIPS
.' . , Unauthorized use and reproduction of this materialla prohibited.

A65 . The only mode by which a labor case decided by any of the following labor
authorities/tribunals may reach the Court of Appeals is through a Rule 65 petition for
certiorari
1. the DOLE Secretary;
2. the Commission (NLRC) ( St. Martin Funeral Home v. National Labor Relations
Commission, 1998); and
3. the Director of the Bureau of Labor Relations (BLR) in cases decided by him in
his appellate jurisdiction (as distinguished from those he decides in his orlginaJ
jurjsdiction which are appealable to the DOLE Secretary). (Abbott Laboratories v.
Abbott Laboratories Employees; Union, 2000)

The remedy of ordinary appeal to the Court of Appeals is not available from their
decisions. orders or awards. The reason for this rule is that their decisions, orders or
awards are final and executory and therefore not appealable.
 •
•
•

•
••
..
(•
;, , j. ' 2017 LABOR LAW BLUE TIPS
Unauthorized use and reproduction of this material is prohibited.

-------------------------------------------
A NNEX I: SSS and GSIS Laws
---- - - -----,

- - ---·--
WHO ARE COVERED 1.
Employer - any person, natural or 1 Employer - the l
1ud1c1al, domestic or for eign who national governmen ·
carries on 1n the Ph1hpp1nes any trade, its political
business. industry undertak ing or subd1v1s1ons.
activity of any kind and uses the branches . agencies or
services of another person who 1s 1nstrumentaht1es.
under his orders as regards 1nclud1ng GOCCs . and
employment financial institutions
*EXEMPT EMPLOYER .government and any wit h or iginal charters .
of its political subdiv1s1ons. branches and the constitutional
1n:trumentality, including GOCCs, i.e.• those commissions and the
under GSIS JUd1c1ary
2. Employee - any person who 2. Employ ee - any
performs services for an employer person rece1v1ng
who receives compensation for such compensation while 1n
services. where there 1s an employer- service of an employer
employee relationship as defined herein.
3. Self-Employed- considered both whether by election or
em lo er and em lo ee a ointment
·1. Legal spouse ntitled for support; . ·, ·
DEPENDENTS . -..· •• •
2: Child:whether 1e'gitimate, legitimated, 'legally adopted or Illegitimate: ·
"
3. Parents de endent for su ort
CONDITIONS FOR 1 Unmarried;
CHILD TO BE 2 Not gar nful_ly emetoyed. __
CONSIDERED a---3_;_ Has not reached 21 years of age. OR _ Not over age of ma1onty . OR------------------i f
DEPENDENT 4 . Incapable of supporting himself either physically or mentally prior to 21 years
of a e or a e of ma orit . as the case ma be
BENEFICIARIES . . •
1.PRIMAR Y a. Dependent Spouse untilrefllarriage a. Legal, Dependent Spouse
•
AND • until remarriage AND
•
.' •
•
•• Dependent Legi mate or Legitimated ; .b. Dependent Children •
• •
b. ti
.
. .-
'

J
•
>
o Ij •
. • ••

• . or Leg.ally Adopted and Illegitimate

I
•
. , . .,
' I
...
• .., f
t ' lf
•• .Childr.en ....·. : -. .( "
• I , t • •'

• • .. . . ,
• I ,t
t ' I -.lo. • •

-• •
.
I

• • • •
•
"
•
••
•
. • • •
...
•
. .. ' . . •
. . I
, '• ..
,
. .
.. ,.

. f ' ••
'. •

,..
'

.. # • '
. .. . .
" • ...,

. .1 .•
f

• - ., ••
•
2. SECONDARY.··i.t.
•
a. · Dependent •• • • •
Depen·dent Parents AND.
. .
• •
Pa'rents · : ti • •
..: · • ..
'
a.
I

. •
' .
• • Legitimate descendants
• ' 'I• • b. Absent primary and secondary .· _ · ·:. b.
•
beneficiaries, any other·pers<;>n · • subject to restrictions on
• . .. ,
. . •
designatd by mer:nber as secon ary •
•
• .. I '
•.
• "t
•
I

. - benefici ry . •. ·. . . • •
dependent children,
t •

' ".
• •
..
. . ..
. If. ,

.
.
•
,
legitimate descendants
•
3.-0THERS • • • - 'I
.
. .: •·, . . .: As to ·DEATH BENEF.IT if. no peneficiary · •
•

•
• :· · . ,.:. - ;qualifies ·under t. e Aqt, ·benfits shall be paid to lz •
· . " Legal Heirs in accord.ance with Law of • .,
•
· ' ". · ·Succession . : . ·· >.· ·:·• · ,
BENEFITS 1 Monthly Pension 1 A LL MEMBERS
2 Dependents Pension a. Life Insurance
3. Retirement b. Retirement
4 Death c D1sab11tty
5. Permanent Disabilit y d . Surv1vorsh1p
6 Funeral e. Separation
7 Sickness f. Unemployment
81
8 Maternity (ONLY 1 FOUR DELIVE RIES
OR MISCARR IAGES) 2 JUDICIAR Y
9 Loa11Grant a life Insurance ONLY -
AL L TAX EXE MPT
.. , ' I •
. • • a. IIemployee not over 60 years of age COMPULSORY for all
'
.. • f
.
' ·.. J . . !' .a n employees receiving
d their employers ; oompulsory ·.
COVERAGE' . :.... · : I overage shall tal<e ·effect·on the first day · compensatiqn who have not
• of his operation and that of the employee reached compulsory retirement
1. Compulsory · on the day of hi employment age, irrespective of employment
. b. Self-employed persons as may be status
• • ! •I • determined bylhe Commission under such
., ' • ••
: .:. . . . .·rul regulati
es ng,ndbut
inciudl onsto:·
limlted asallIt may prescribe,
self-emplpyed
 .. • • •
•
I
• • •

•
•
.. professionals; prtnersand single· ·.
• •
' •• proprietors of business; actors and
•
..
•
actresses , director$, scriptwriters and .. •

, _._ ;_new=s- corres::..c..o: ndents::.±:·::o: t em:..!.l:'..!l. o ees: ..l_ ...:._ - -'

 •

• 2017 LABOR LAW BLUE TIPS

Unauthorized use ar1d reproduction of this material is prohibited.
- --- = professional athletes, oaches, trainers
- r ==== ----1
•
•
t •• . II o
and jockeys, and lnd1v1dual farmers.and •
•
•
fishermen; upon their registration with.the
SSS
c. Domestic helpers 60 years of age and
• . below with a monthly Income of not
•
' . . · . less than P1,000 on the date of their ,
'
.' .' employmnt.. · , •. . · I ' •

d. Jndlvldual farmers and fls_hermen uder

•
.· .- ..'
' . . •
•
I •
• •
'

• •
••
. • " It • SSS rules and regl.!lations ·
I
' • 'f ' •
.• ..,
(
•
•
.' ..•
'• •
• •
• ' I I

.. '• ' I • ' . • . -

• '"I 1' ' •

•
I •
Filipinos rec'rulted by foreign·. · ". .' · : , .. ,. · .
a. • 0 •

4
•• • • • • : • 1 • •• • • • based employers for • • • • • ' • •• •
1
2. VO LUNTARV ·· . · · ·. e'mployment abroad . . ·,. · ·. . .: · , •
•
•
•

•
· ··. I·'• · : _ , ,., · ·. b.·· Employee separated from ·· ,, · . . ·. :· •

1
:' ' • ·. ·.· · · ·
employment to • maintain h.is right • ' ,: •; ' • • , :
. · to
•

.,
',

full benefits . , ' · • · ' ;i · . ·.· .. · ·· 1 ·

1
• •
. . ' . " . . :· . .c.. . Self -employed wno relizes no . . . . I. •· . ' '
. '
I

· · • · . . .· · . ..• Income for a crtalrimont · · : ... · l. •

• •
• : • : • 1• ! d. Spouses who deyote full time to . · .· . •

• ·· . .' ..' , · ....· ..' . . managing household and family . i· • :• •.

: ' ·. · . affairs unless specifi ally . .· · ·· · · · .
• .' ... . ; . . · . ,. mandatoly covered · .. · . . . :· . ·: ·· . ·. .. . · ·
,t '
• t

•
I

• I...
'

• • • (
lo \
.. •
I

I
, • ,
0
l '• t I

• •
•,•

I
00 •

l
't
t }

' I
•

• ' •
o
•

• ··, . . ·· ..• ·'

"BY ARRANGEMENT:.Any · oreign ·1 : .',.._. • • • .." •• ,\ • .. •• "..... • ; ;. • . .. .. , • :

_·:.. '. '.. , .:·..':" :: :-···governmen :i11terni:it1onal organtzatlor:' or'"·:. :- . · ::..: '.· :.' "i:'· , •• • , • 1
• - .•
'

. , ·;: . . " , 1. • • . ::. • ._ .' .. •1: .-.. I· , •• •.

1
. ' ,: , · · · ·'. ;'.·.·. ._ . · wholly o,wned lflatrumentallty:e_mplofg · , . . ..· ·-
. · '· " " · :·· · · workers in the F'hllipp,lnes ol' employ10g · · .,... . • ' ·' ·· .-·".· · · · 1 .' • ,; •
•
• •• • •
1
• ·
": ,:, • • • ·Filipinos .outside·the hillppln s may .enter . '_ , ··. ·, : 1 • • • :. , •• • • •
•
•
.·,. ·· · · ·. . · agreement·with Philippines for Inclusion of · . ., : ·.::· · · : .· •
· · . ··· . . ··.· such employees In SSS EXCEPT those ··· ·· ·
•
· · ;· - '· .: ' -. already covered by.their respective ci ilservice · · · " . •

--• t t

: retirement svst.em
I

!.!!:._ :_
t

·
__...· :..--- -+ --=--·:-.:·....-. :---;-:-;: -;:;---!
·
Ex ceptions from 1. Employment purely casual and not for 1. Members of the A FP •

covera ge the purpose of occupation, or business of 2. Members of the PNP

.t the employer 3. Contractual employees,
2 Service performed on or In connection who have no employer-
w1th alien vessel, 1f employed when such employee relationship with
vessel is outside of Philippines the agency
3 Employees of Philippine government or 4. Members of judiciary and
instrumentality or agency thereof constitutional
4 . Service performed in the employ of a commissions. covered by
foreign government, or International life insurance only
organiza tions, or wholly owned
instrumentality employing worker s in the
Philippines or employing F11ip1nos outside
of the Ph1lipp1nes
5 Services performed by temporary
employees and other employees
excluded by SSS regulation:
employees of bona fide independent
contractors shall not be deemed
employees of the employer engaging the
services of an indeoendent contractor
COMPENSATION All actual remuneration for.employn:tent, . .The basic pay or salary
' · .; . . ·including tt)e mandated cost-of-living . .. · . · reqeived by an employee,
•
.. . ....... . .. .allowance,the cash v'alue of any emuneration . ;·pursuant to his ,·, .
·"· · :. .: ·:.·.... .. ·,: ;. · paid in
any medium ther.tha'n·cash EXCEPT. . 'electlon/appoiritment.excluding
.. .. . . . .:.. . :• ', ·•. that part of ttie remuneratiort·in excess of t
pe'r di ms, bonuses, overtim .. e
· ' ·· ..· · : maximum salarj credit , ' '. ..-. ·- ·' \ · . . "; .; pay,·honoraria, allowances and
··· · · ·. · .,
·. .. ·,·· ' .·.· · · . any other emoluments receivedt I I I , .I •
1

. · · · / . · · "' · ·· · in addition to the basic oav . 1

BASIS OF CLAIM Non-work connected disability, sickness. Work-connected exempt from

maternity. death and old age and other ltabihty where permanent
cont1ngenc1es resulting 1n loss of income or d1sab1lily due to his grave
financial burden (sec 2) misconduct. habitual
1ntox1cat1on, or willful 1ntent1on
to kill himself or another (sec
-- ----------.!------- 15- 17)
EFFECTS OF 1. Employer's contribution on his A mem ..._b_e_r_sep
_a_r_ate_d_fro
--m t he
-
SEPARATION FROM account ceases seNice shall continLie to be a
EMPLOYMENT 2. Employee's obligation to contribute member , and shall be entitled to
also ceases at the end of the month of whatever benefits he has
senr.r;:ttion
3. Employee qo
un I' fiied t o i·n th e evenr o ( any
at1n
------- ----.
_
-1._
sttall be credited with all ._ gency compensable
=..:_ ....::::..::l:' : _ _ ;,..__ _.._J
•

·--
..
--'.-:":'.=--=-. : :-.-=---=--- -- -- --------
-------------------------
- - - Unauthorized use and reproduction
--------·- --·--contr;b utions pard of on
thishismaterial is prohibited.
behalf and under this Act
entitled to benefits
4. May cont inue to pay the total
contnbutrons to maintain his nght to
full benefits _ --------------------- 1
REPORTING •· · .·.. ' · · A Employer : :- ... . Employer : · ·'. · ,
REQUIREMENTS· . · · Rep9rt'imrr ediately to .SSS the names,ages·•. , · Report to GSIS the names, . : .
I ' civilstatus, occuptions , sal ries and
0 : •' t :, - employment statsl positions, 0

' , '
0
• t

' t •:i; • i. dependents of au his oovered employees-

' '. ' , '
0
: ,.::
0 0
salaries of the employee and ' I I .":,:, : •

• • : •
:
, I ·a.' • 'Self-e'mployed":" .· ::: ;· .
• ,.
· : · .• • SUGh other matter as . I • • • • . •I

· '. ' ·, • ·.··. :'· ··.·'. .·-:·. ·:·· • Report to SSS within ,30 d ys from the first day . .. determined by.the GSIS .
• • ·' .' ·., ·." :··'. :: · ·: of his" operat!6n,his nme, age · civil statu·.: ·,' . . .· . . " ·.
.· ·, . •. ·occupation, average monthly net income .and . · .. . · . ·. . ·
. ":
11
' ' • • his deoendenls · ·. ·,· · ·· · · · ., · · · · · ··
FUNDING 1. Employer's contributions
2 Emolovee's/member's contributions ------------------------------------------------------------------------------------------------------------ i
EXEMPTION FRO _ _ :. ,1· 11P'r0.pefty.- aset.s, tid. reven &s::o(SSS and· SIS are' ail 'exemt fro_m ta es, nd . .
TAX/'-EGAL ·· . .• all benefits paid by sss··ot GSIS"shall 'likewise be exempt from taxes·,· . · · ·
• ,,

PROCESS/LIEN, ..·'.'·· ;'":': :·assessmentst fees;"charges, a·I'} duties of all k!.n.d · . . ..· . ·. . · , · '·
• ' • I J • •' ' .
I 1 ti t • • • o •

DISPUTE Dispute arising from: Any dispute arising under this

SETTLEMENT 1. Coverage Act and other laws adm1nisr ered
2. Benefits by GSIS
3. Contr1but1ons
4. Penalties Jurisdiction· GSIS
5. Any matters related thereto
When decision made: 30 days
Jurisdiction· Social Security Commission from receipt of the hearing
officer's findings and
When decision made:Mandatory period of 20 recommendations or 30 days
days from submission of evidence after subm1ss1on for dec1s1on

Appeal: Appeal:
CA - questions of law and facts CA - Rule 43, Section 31
SC - questions of law only SC - Rule 45
--.- I--
;:;;;;;;;;; -:-:-:--:-t-, :-..-:-......,.--:--:7 :-- -:-:--:-- · . . ·· 4 years from_d
_a_t_
e _o_f-----.
-'
•. PRE S C R I P T VE · ·{. : .· 20 ·y e a r s f r o m the time of d e li n q
.
uency
• ,'.> : 'r•:_ ;· . ·''.-'.
1
PER I OD ·: · . : ,; :::.:... '.1 _ ·,: ; • ;·· ·/': . ·. ,
. • "·' " :.;. · ' ;'1 •
; ·.-," eontingency EXCf:PJ for life> · ' ·
·and retirem'ent.benefits ' '
1
• .. .
' •• '
·
• t ' (!
.. . .
•I •
t
• •
•·· . ,
•' • ' • •
'. ·: ••
t \ t
· . , .. • ·: -.. ..
•
• .·• · .: ·\ • •
•
. ··•
•
·

•
 .- '
•
." -: ,· ···- 2017 LABOR LAW BLUE TIPS
:.:_ ../ Unauthorized use and reproduction of this materlal is prohibited.

ANNEX II:Prescription of Actions

Money claims a. All money claims and benefits arising from employer-employee
relations
- 3 years from the time the cause of action accrued;
- Includes:
1. Money claims arising from the CBA.
2. Incremental proceeds from tuition increases.
3. Money claims of Overseas Filipino Workers (OFWs).(Art.
291, LC
b.If not claimed within the above period, they shall be forever barred.
(Art. 291, LC)

In the 2010 case of Southeastern Shipping v.Nava rra, Jr., the 1-year
prescriptive period in Section 28 of POEA-SEC was dee.tared nu ll
and void.The reason is that Article 291of the Labor Code 1s the law
governing the prescription of money claims of seafarers. a class of
overseas contract workers. This law orevails over said Section 28.
Illegal dismissal 4 years Article 1146, Civil Code
Unfair Labor 1 year (Article 290, LC).
Pra ctice
Offenses penalized a.Allcriminal offenses penalized under the Labor Code and the
by the Labor Code Rules to Implement the Labor Code
andIRR Issued -3 years from the time of commission thereof.
pursuant thereto b.Failure to initiate or flle the criminalaction or complaint within
(Art.290,LC) the prescriptive period
- forever barred
Illegal Recruitment a. Simple illegalrecruitment cases.
Cases -5 years. ·

b. Illegal recruitment cases Involving economic sabotage.

- 20 vears.
Actions involving A complaint or petition for audit or examination of funds and books
union funds of accounts
- 3 years, from:
a. date of submission of the annualfinancialreport to the
DOLE; or
b. date the same should have been submitted as required by
law, whichever comes earlier.
N1:'E:This provision on the prescriptive period applies only to a
legitimate labor organization which has submitted the financial report
required under the Labor Code.
Claims for SSS a. Ac tion against employer.
Benefits -20 years, from:
(SSS Law) a. from the time the delinquency is known; or
b. from the time the assessment is made by the SSS·or
c. from the time the benefit accrues, as the case ma be.
b. Action for disabilty claims.
-1O vears from the date of occurrence of disability.
Claims for GSIS Claims for benefits, except for ll{e and retirement,prescribe -4 years
Benefits from the date of contingency.
GSIS Law

'
 ) 2017 LABOR LAW BLUE TIPS
_,.,. Unauthorized use and reproduction of this mate rial is prohibited.
AN N EX Il l : Jurrsdr c t1on _ _

Court of Appeals

Office of the DOLE Secretary

Voluntary Arbitration
BLR
NLRC
Strike Subj ect to Disputes Submitted
cert1f 1ed Assumption of , 1 assumed , ,
to Voluntary
Jur1sd1ct1on
A rbitrator

Labor Arbiter Regional Director POEA Bureau of Labor

224) 128 / 129) Relations
CE Regional Office
Med-A rbiter
I Griev ance Machinery

2
1 ULP
Term1nat1on Cases
1. Labor Standards
Enforcement
1 Cancellation l
Suspension of License of
1 Federation I National
Union I Tr ade Union
1 Intra-union disputes for
violation of
I 1. Disputes concern1i19
interpreta tion I
3 Cases 1:ivolv1ng wage s. 2. Occupal1onal Safety and Authority to recruit of Center Registrat ion, a constitution and by- implementation of CSA
ra!es of pay. hours of Health Violations Recruitment Agenc ies revocation and laws 2. Disputes concerning of
work and other terms cf 3. Money Claims ansing (until phase out w1th1n cancellat1on cases b rights and conditions
j interpretation I
emp!oyment + from L3bor Standurds fi ·1e year s as provided in 2 A:I Inter-union ar.d intra- of membership u:ider 1mplementat1on of
l i4
5
Reinstatement
Damages arising from
V1olat1ons NOT
13xceed1ng PS.000 per 2
RA 8042)
Oisc1phnary A ction 3.
union cor.fl1cts
V1sitonal powers under !2
I 3.
241
Election of Officers
CSA Reg1strat1on
comi:any personnel
policies
frorn EE-ER 1nd1v1dual ANO 'wv/o against OFWs Art . 2 74 (inquire into 3 All others defined as
6 Cases ans1ng from Art claims for reinstatement union financial activ1t1es, 4. Independent
2 79 (inc legality of ·gnevance by CSA
no actual violation, similar Union/Chartered Local 4
stnkesllockouts) NOTE The PS.000 l1m1t is v Jage distortion cases
to visitonal povi1er) Registration Revocation
7 A ll other claims arising (where there is CSA)
applicable to the adjudicatory and cancellation cases I

from EE- ER [224] powers of the Regional 5. Visitorial powers ur:der

8 ViolatJon
A greementsof Comorom1se
[233]• Director under Art . 129 and Art. 274 (inquire into
not the visitorial and union financial activities}
9 Overseas Employment enforcement power under 6. Actions ans1ng from 241
Disputes. 1 e money 128. arising from
claims ar1s1ng f rom such administration and
f 124J accounting of union funds
10 9 Wage distortion cases
(where there 1s no CSA)
(124)