1. What are the kinds of employees recognized in the Philippines?

The kinds of employees recognized in the Philippines are:

a. Regular Employee, an employee engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer and is deemed regular when
engaged as such notwithstanding the provisions of written or verbal agreements to the
contrary;
b. Probationary Employee, an employee under a trial period during which the employer
determines his fitness to quality for regular employment, based on reasonable standards
made known to him at the time of engagement;
c. Casual Employee, an employee engaged to perform a job, work or service which is merely
incidental to the business of the employer, and such job, work or service is for a definite
period made known to the employee at the time of engagement;
d. Project Employee, whose employment has been fixed for a specific project or undertaking
the completion or termination of which has been determined at the time of the engagement
of the employee; and
e. Fixed-term Employee, an employee who has agreed with the employer to deal each other on
more or less equal terms with no moral dominance whatever being exercised by the
employer over the employee.

2. Exhaustively explain who are special kinds of employees?

The special kinds of employees or special workers are:

a. Apprentice, a worker who is covered by a written apprenticeship agreement with an

individual employer or any of the entities recognized under Chapter V. Apprentices can only
be employed in the highly technical industries and only in apprenticeable occupations
approved by the Secretary of Labor and Employment;
b. Learners, who are persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable and which may be learned through practical training on the job
in a relatively short period of time which shall not exceed three (3) months. Learners may
only be hired when no experienced workers are available, when their employment is
necessary to prevent curtailment of employment opportunities, and the employment does
not create unfair competition in terms of labor costs or impair or lower working standards.
c. Handicapped, those workers whose earning capacity is impaired by age or physical or mental
deficiency or injury;
d. Women, whose employment is covered by specific provisions of the law on nightwork, facility
provisions, safe employment and other provisions of the law intended to protect them from
employment discrimination.

3. Explain and provide the three categories of employees? What are the three types of Managerial
employees in labor relations?
 FIRST-LINE MANAGERS — The lowest level in an organization at which individuals are responsible for
the work of others is called first-line or first-level management. First-line managers direct operating
employees only; they do not supervise other managers. Examples of first-line managers are the
"foreman" or production supervisor in a manufacturing plant, the technical supervisor in a research
department, and the clerical supervisor in a large office. First-level managers are often called
supervisors.

MIDDLE MANAGERS — The term middle management can refer to more than one level in an
organization. Middle managers direct the activities of other managers and sometimes also those of
operating employees. Middle managers' principal responsibilities are to direct the activities that
implement their organizations' policies and to balance the demands of their superiors with the
capacities of their subordinates. A plant manager in an electronics firm is an example of a middle
manager.

TOP MANAGERS — Composed of a comparatively small group of executives, top management is

responsible for the overall management of the organization. It establishes operating policies and
guides the organization's interactions with its environment. Typical titles of top managers are "chief
executive officer," "president," and "senior vice-president." Actual titles vary from one organization to
another and are not always a reliable guide to membership in the highest management classification.
(United Pepsi Cola Supervisory Union v. Hon. Bienvenido E. Laguesma; G.R. No. 122226; 25 March
1998)

4. Explain the instances when an employee’s services or employment may be terminated lawfully by the
employer.

An employee may be lawfully terminated by an employer on the basis of any of the “Just Causes”
provided in Article 297 of the Labor Code, or any of the “Authorized Causes” under Articles 298 and 299
of the Labor Code. Provided that the employee is accorded due process in his termination, meaning the
employee is given notice and opportunity to be heard to defend himself.

Article 297 - Termination by employer. An employer may terminate an employment for any of the
following causes:

a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer
or representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;
d. Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his duly authorized representatives; and
e. Other causes analogous to the foregoing.
Article 298 - Closure of establishment and reduction of personnel. The employer may also terminate the
employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment
to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the
closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the
workers and the Ministry of Labor and Employment at least one (1) month before the intended date
thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker
affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at
least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent
losses and in cases of closures or cessation of operations of establishment or undertaking not due to
serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay
or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six
(6) months shall be considered one (1) whole year.

Article 299 - Disease as ground for termination. An employer may terminate the services of an employee
who has been found to be suffering from any disease and whose continued employment is prohibited by
law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid
separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year
of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole
year.

5. What remedies does an illegally dismissed employee have under Labor laws? Provide legal basis.

Under Article 294 of the Labor Code, an illegally dismissed employee is entitled to the following reliefs:

a. Reinstatement without loss of seniority rights and other priveleges;

b. Full backwages, inclusive of allowances; and
c. Other benefits or their monetary equivalent

The following are also reliefs that are awarded in illegal dismissal cases that are not found in Article 294:

a. Award of separation pay in lieu of reinstatement

b. Award of penalty in the form of nominal damages in case of termination due to just or authorized
cause but without observance of procedural due process
c. Reliefs to an illegally dismissed employee whose employment is for a fixed period. The proper
relief is only the payment of the employee’s salaries corresponding to the unexpired portion of
the employment contract.
d. Award of damages and Attorney’s Fees.
e. Award of financial assistance in cases where the employee’s dismissal is declared legal but
because of long years of service, and other considerations, financial assistance is awarded.
f. Imposition of legal interest on separation pay, backwages, and other monetary awards.
6. What is MANAGEMENT PREROGATIVE? Discuss the acts of the employer that falls within Management
Prerogative

Management prerogatives are granted to the employer to regulate every aspect of their business,
generally without restraint in accordance with their own discretion and judgement. This privilege is
inherent in the right of employers to control and manage their enterprise effectively. Such aspects of
employment include hiring, work assignments, working methods, time, place, manner of work, tools to be
used, processes to be followed, supervision of workers, working regulations, transfer of employees, lay-
off workers and the discipline, dismissal and recall of workers.

7. Distinguish Separation from Retirement Pay.

Separation pay is a statutory concept under Article 283 and 284 of the Labor Code of the Philippines
cases of legal termination or valid termination due to authorized causes namely: installation of labor –
saving devices or redundancy (separation pay is to at least one (1) month pay or to at least one (1) month
pay for every year of service, whichever is higher), retrenchment to prevent losses or the closing or
cessation of operation of the establishment or undertaking (separation pay is equivalent to one (1) month
pay or at least one-half (1/2) month pay for every year of service, whichever is higher) (Article 283) and if
an employee is suffering from any disease and whose continued employment is prohibited by law or is
prejudicial to his health as well as to the health of his co-employees (Art. 284) . These payments of
separation pay under the grounds mentioned are specified by the law itself. Please take note that in the
computation of the separation pay a fraction of at least six (6) months shall be considered as one (1)
whole year.

Aside from the grounds stated in Article 283 and 284 of the Labor Code, it is also settled in the
Philippine Jurisprudence that separation pay maybe awarded under the following instances:

a. As financial assistance as an act of social justice, even in cases of legal dismissal under Article 282,
where the employee is validly dismissed but for causes other than serious misconduct or those
involving moral turpitude;
b. If an employee is illegally dismissed and is ordered reinstated but reinstatement is not viable
because of the strained relationship of the employee and the employer.
c. When the payment of separation pay is part of the Company policy or a benefit granted under
the CBA of the employer and the employee.

In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have
earned under existing laws and any collective bargaining agreement and other agreements: Provided,
however, That an employee's retirement benefits under any collective bargaining and other agreements
shall not be less than those provided herein.

a. In the absence of a retirement plan or agreement providing for retirement benefits of employees
in the establishment, an employee upon reaching the age of sixty (60) years or more, but not
beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has
served at least five (5) years in the said establishment, may retire and shall be entitled to
 retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a
fraction of at least six (6) months being considered as one whole year.
b. Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall
mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of
not more than five (5) days of service incentive leaves.
c. Retail, service and agricultural establishments or operations employing not more than (10)
employees or workers are exempted from the coverage of this provision.

8. What is the term Humanitarian Assistance in Labor?

9. Can an Employee avail simultaneously separation pay and Retirement Pay?

Yes, an employee may avail simultaneously of separation pay and retirement pay. In Aquino vs. NLRC
promulgated on February 11, 1992, the Court ordered the payment to the retrenched employees of both
the separation pay for retrenchment embodied in the CBA as well as the retirement pay provided under a
separate Retirement Plan. The reason is that these two are not mutually exclusive. There is nothing in the
CBA nor in the Retirement Plan that states that an employee who had received separation pay would no
longer be entitled to retirement benefits or that collection of retirement benefits was prohibited if the
employee had already received separation pay.

10. When can an employee avail of retirement pay? When is the employee entitled to retirement by law?
When is an employee given the option to avail of retirement?

In the absence of retirement plan or applicable agreement, an employee may avail of the retirement pay
if (1) he has retired after serving at least 5 years in the company and, (2) at the time of his retirement, he
is at least 60 years of age.

Under the law, the employee may avail of optional retirement upon reaching the age of 60 years or be
compulsory retired upon reaching the age of 65. This comes into play only in the absence of a retirement
plan or agreement. The employers and employees are free to agree and stipulate on the retirement age,
either in a CBA or employment contract. It is only in the absence of such agreement that the retirement
age shall be fixed by law.

The employee is the one who exercises the choice of whether to retire or not, if his case falls under the
optional retirement scheme. In short, upon reaching the age of 60 years and rendering at least 5 years of
service to the Company, he may exercise his option whether to retire or not.

11. What comprises the retirement benefits of an employee?

Under Republic Act No. 7641, in case of retirement, the employee shall be entitled to receive such
retirement benefits as he may have earned under existing laws and any collective bargaining agreement
and other agreements: Provided, however, That an employee's retirement benefits under any collective
bargaining and other agreements shall not be less than those provided herein. In the absence of a
retirement plan or agreement providing for retirement benefits of employees in the establishment, an
employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is
hereby declared the compulsory retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2)
month salary for every year of service, a fraction of at least six (6) months being considered as one whole
year. Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean
fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than
five (5) days of service incentive leaves. "Retail, service and agricultural establishments or operations
employing not more than (10) employees or workers are exempted from the coverage of this provision.

12.When can an employee avail of SEPARATION PAY and when is the employee entitled to SEPARATION
PAY? Provide illustrations.

Separation pay is a statutory concept under Article 283 and 284 of the Labor Code of the Philippines
cases of legal termination or valid termination due to authorized causes namely: installation of labor –
saving devices or redundancy (separation pay is to at least one (1) month pay or to at least one (1) month
pay for every year of service, whichever is higher), retrenchment to prevent losses or the closing or
cessation of operation of the establishment or undertaking (separation pay is equivalent to one (1) month
pay or at least one-half (1/2) month pay for every year of service, whichever is higher) (Article 283) and if
an employee is suffering from any disease and whose continued employment is prohibited by law or is
prejudicial to his health as well as to the health of his co-employees (Art. 284) . These payments of
separation pay under the grounds mentioned are specified by the law itself. Please take note that in the
computation of the separation pay a fraction of at least six (6) months shall be considered as one (1)
whole year. Aside from the grounds stated in Article 283 and 284 of the Labor Code, it is also settled in
the Philippine Jurisprudence that separation pay maybe awarded under the following instances: As
financial assistance as an act of social justice, even in cases of legal dismissal under Article 282, where the
employee is validly dismissed but for causes other than serious misconduct or those involving moral
turpitude; If an employee is illegally dismissed and is ordered reinstated but reinstatement is not viable
because of the strained relationship of the employee and the employer. When the payment of separation
pay is part of the Company policy or a benefit granted under the CBA of the employer and the employee.
Illustrations: When an employee has been forced to resign form a company such as when there are
retrenchment cases, he or she or given separation pay due to these circumstances. Voluntary resignation
does not come with this benefit, however. The only time this type of pay is given to employees that have
resigned voluntarily is when the company has been practicing these actions previously or if the contract
signed for work required this at the end. When separated from work for other reasons, usually the
employee is provided with this in writing at some point. The contract for employment, a handbook or
similar document generally specifies that separation pay is the end result..

13. When can an EMPLOYER refuse payment of RETIREMENT PAY, SEPARATION PAY, and HUMANITARIAN
ASSISTANCE?

Retirement Pay

Under Article 302 [287] of the Labor Code, as amended, the following employees are not entitled to
receive retirement pay:
 a. Employees of the national government and its political subdivisions. Including government-
owned and/or controlled corporations, if they are covered by the Civil Service Law and its
regulations; and
b. Employees of retail, service, and agricultural establishments or operations regularly not
employing more than ten (10) employees.

An employer may refuse payment of retirement pay with regard to the aforementioned persons.

Separation Pay

Under the Labor Code, an employer may terminate an employment for any of the following causes:

a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer
or representative in connection with his work;

b. Gross and habitual neglect by the employee of his duties;

c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;

d. Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his duly authorized representatives; and

e. Other causes analogous to the foregoing.

In the aforementioned instances, the employee shall be entitled to separation pay upon the
termination of his employement by the employer. Thus, it follows that an employee who voluntarily
resigns from his employment cannot be given or entitled to sepatation pay and the employer may
validly refuse payment of the same.

Humanitarian Assistance

As ruled by the Court in Dumduma vs. Civil Service Commission, Third, our labor laws and
established jurisprudence applicable to the private sector have recognized the grant of financial
assistance based on social justice as the guiding force. The Court, however, clearly recognized limitations
in invoking social justice when it held that the policy of social justice is not intended to countenance
wrongdoing simply because it is committed by the underprivileged. At best it may mitigate the penalty
but it certainly will not condone the offense. Compassion for the poor is an imperative of every humane
society but only when the recipient is not a rascal claiming an undeserved privilege. Social justice cannot
be permitted to be refuge of scoundrels any more than can equity be an impediment to the punishment
of the guilty. Those who invoke social justice may do so only if their hands are clean and their motives
blameless and not simply because they happen to be poor.

Thus, humanitarian assistance can only be paid by the employer on the basis of social justice.
14. What comprises the SEPARATION PAY of an employee?

Separation pay, as a substitute remedy, is only proper for reinstatement but not for backwages. Thus,
the following are the components of separation pay in lieu of reinstatement:

a. The amount equivalent to at least one (1) month salary or to one (1) month salary for every year
of service, whichever is higher, a fraction of six (6) months being considered as one (1) whole
year; and

b. Allowances that the employee has been receiving on a regular basis.

15. Would the availment of the SSS pension benefits by an employee NEGATE OR FREE the employer from
paying the employee retirement pay or separation pay?

16. Is the SSS retirement pay separate from retirement pay under the Labor code, explain exhaustively
with legal basis

17. Under R.A. No. 7742, can the PAG-IBIG FUND be considered as a SUBSTITUTIVE RETIREMENT PLAN by
the employer and employee, explain exhaustively with legal basis.

Qualified workers shall be entitled to the retirement benefit under RA 7641 in the absence of any
individual or collective agreement, company policy or practice. In case there is such an agreement, policy
or practice providing retirement benefit which is equal or superior to that which is provided in the Act,
said agreement, policy or practice will prevail.

As provided in RA 7742, a private employer shall have the option to treat the coverage of the
PAG-IBIG Fund as a substitute retirement benefit for the employee concerned within the purview of the
Labor Code as amended; provided, such option does not in any way contravene an existing collective
bargaining agreement or other employment agreement. Thus, the PAG-IBIG Fund can be considered as a
substitute retirement plan of the company for its employees provided that such scheme offers benefits
which are more than or at least equal to the benefits under RA 7641. If said scheme provides less than
what the employee is entitled to under RA 7641, the employer is liable to pay the difference.

If both the employee and the employer contribute to a retirement plan, only the employer’s
contribution and its increments shall be considered for full or partial compliance with the benefit under
RA 7641. On the other hand, where the employee is the lone contributor to the PAG-IBIG Fund, the
employer being exempted from its coverage, the employer is under obligation to give his employee
retirement benefits under the Act.

18. Are there any instance when separation pay can be paid together with retirement plan? Provide legal
basis.

No, as provided by law, a separation pay is different from a retirement plan or pay. Separation
pay is a statutory concept under Article 283 and 284 of the Labor Code of the Philippines cases of legal
termination or valid termination due to authorized causes namely: installation of labor –saving devices
or redundancy (separation pay is to at least one (1) month pay or to at least one (1) month pay for every
year of service, whichever is higher), retrenchment to prevent losses or the closing or cessation of
operation of the establishment or undertaking (separation pay is equivalent to one (1) month pay or at
least one-half (1/2) month pay for every year of service, whichever is higher) (Article 283) and if an
employee is suffering from any disease and whose continued employment is prohibited by law or is
prejudicial to his health as well as to the health of his co-employees (Art. 284).

While a retirement plan means, Any employee may be retired upon reaching the retirement age
established in the collective bargaining agreement or other applicable employment contract. In case of
retirement, the employee shall be entitled to receive such retirement benefits as he may have earned
under existing laws and any collective bargaining agreement and other agreements: Provided, however,
That an employee’s retirement benefits under any collective bargaining and other agreements shall not
be less than those provided therein.

In the absence of a retirement plan or agreement providing for retirement benefits of employees in an
establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five
(65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years
in the establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half
(1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one
whole year.

Clearly, an employee affected by reorganization cannot be granted separation pay in addition

to retirement benefits. If an employee is entitled and has actually received either separation
pay or retirement benefits, the receipt of one necessarily bar entitlement to the other

19. State and explain the State Policies on Labor Relations

20. Explain and discuss all the QUASI-JUIDICIAL bodies which exercises jurisdiction over LABOR cases. Be
exhaustive and provide legal basis.

21. Explain and provide the Jurisdiction of labor Arbiters

The law vests upon the Labor Arbiter the original and exclusive jurisdiction to hear and decide the
following cases involving all workers, whether agricultural or non-agricultural: 1.Unfair labor practice
cases; 2.Termination disputes; 3. If accompanied with a claim for reinstatement, those cases that workers
may file involving wages, rates of pay, hours of work and other terms and conditions of employment;
4.Claims for actual, moral, exemplary and other forms of damages arising from employer-employee
relations; 5.Cases arising from any violation of Article 264 of the Labor Code, as amended, including
questions involving the legality of strikes and lockouts; 6.Except claims for employees compensation not
included in the next succeeding paragraph, social security, medicare, and maternity benefits, all other
claims arising from employer-employee relations, including those of persons in domestic or household
service, involving an amount exceeding Five Thousand Pesos (P5,000.00), whether or not accompanied
with a claim for reinstatement; 7.Wage distortion disputes in unorganized establishments not voluntarily
settled by the parties pursuant to Republic Act No. 6727; 8.Enforcement of compromise agreements
when there is non-compliance by any of the parties pursuant to Article 227 of the Labor Code, as
amended; 9.Money claims arising out of employer-employee relationship or by virtue of any law or
contract, involving Filipino workers for overseas deployment, including claims for actual, moral,
exemplary and other forms of damages as provided by Section 10, Republic Act No. 8042, as amended by
Republic Act No. 10022; and 10. Other cases as may be provided by law.

22. Explain the term LABOR RELATIONS

Labor relations refers to the relationship between the management of a company or organization and its
workforce. Hence, the labor relations laws defines the status, rights and duties, as well as the institutional
mechanisms that govern the individual and collective interactions between employers, employees, and
their representatives. Furthermore, labor relations laws enable workers to obtain from their employers
more than the minimum benefits set by the labor standards law.

23. Enunciate on the Right to Self Organization with respect to Labor Relation.

It is the right of workers and employees to form, join or assist unions, organizations or associations for
purposes of collective bargaining and negotiation and for mutual aid and protection. It also refers to the
right to engage in peaceful concerted activities or to participate in policy and decision-making processes
affecting their rights and benefits.

24. Who may exercise the Right to Self Organization? Is this an absolute rule? Any exception.

The following may join a labor organization:

 a) all employees employed in commercial, industrial and agricultural enterprises and in religious,
charitable, medical or educational institutions whether operating for profit or not;
 b) government employees in the civil service;
 c) supervisory personnel;
 d) security personnel; and,
  e) aliens with valid working permit provided there are nationals of a country which grants the
same or similar rights to Filipino workers as certified by the Department of Foreign Affairs (DFA).

25. Are employees in the public service entitled to exercise their Right to Self-Organization? Explain with
legal basis.

YES, but subject to limitations as set forth in Section 1 Rule II of E.O. no. 180, which states that Employees
of all branches, subdivisions, instrumentalities and agencies of the government, including government-
owned or controlled corporations with original charters, except members of the Armed Forces of the
Philippines, Police Officers, Policemen, firemen, and jail guards, may form, join or assist organizations,
associations and/or federations of exclusively government employees of their own choosing for the
furtherance, and protection of their interests. They may also form, in conjuction with appropriate
government authorities, labor-management committees, work councils and other forms of workers’
participation schemes to achieve the same objectives. Subject to the limitation as setforth by section 2 of
the same rule that membership in employee’s organization shall be open to all rank and file employees.
High level employees are not eligible for membership in rank and file employee’s organization for
purposes of negotiation under these rules.

26. Discuss the “CONFIDENTIAL EMPLOYEE” doctrine.

Under the CONFIDENTIAL EMPLOYEE DOCTRINE, A rank and file employee or a supervisory employee, is
elevated to the position of a managerial employee. Hence, he is treated as if he is a managerial employee
because of his access to the confidential information related to labor relations.

27. Provide and explain the kinds and purposes of Labor Organization.

The labor organizations in Philippines are classified as an employees’ organization if it is in the

government sector and a labor organization in the private sector. When the employees’ organization is
registered with the Civil Service Commission (CSC) and the Bureau of Labor Relations (BLR) of the
Department of Labor and Employment (DOLE), it shall be called a registered employees’ organization.
When the labor organization from the private sector is also registered with the CSC and the BLR, it shall
be called a legitimate labor organization.

The kinds of Labor Organizations are:

a) Industry Union – it operates within a specific industry established for collective
bargaining concerning terms and conditions of employment within an industry;
b) Independent Labor Union – it operates at the enterprise level whose legal personality is
derived through an independent action for registration;
c) Federations and National Unions – it is any labor organization with at least ten (10) local.
Chapters or affiliates who are certified collective bargaining representatives in their
respective industries;
 d) Chartered Local/Chapter – it operates at the enterprise level whose legal personality is
derived through the issuance of a charter certificate by a duly registered federation or
national union;
e) Trade Union Center – it is a group of registered national union or federations organized
for mutual aid and protection of its members, for assisting members in the collective
bargaining or for participating in the formulation of social and employment policies,
standards and programs;
f) Company Union – it is organized by the management of a certain industry for its own
interest and posturing as union of employees; and
g) Worker’s Association – it is organized for the mutual aid and protection of its members or
for any legitimate purpose other than collective bargaining.

28.Discuss the necessary rectitudes and attachments in establishing a legitimate labor organization.

According to Article 240 of the Labor Code, for a federation, national union or industry or trade
union to acquire legal personality and shall be entitled to the rights and privileges granted by law to
legitimate labor organizations upon issuance of the certificate of registration based on the requirements:
a) Fifty pesos (P50.00) registration fee;
b) The names of its officers, their addresses, the principal address of the labor organization, the
minutes of the organizational meetings and the list of the workers who participated in such
meetings;
c) In case the applicant is an independent union, the names of all its members comprising at
least twenty percent (20%) of all the members in the bargaining units where it seeks to
operate;
d) If the applicant union has been in existence for one or more years, copies of its annual
financial reports;
e) A request for Sole and Exclusive Bargaining Agent; and
f) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or
ratification and the list of the members who participated.

The application for registration shall be filed with the Regional Office where the applicant
principally operates and it shall be processed by the Labor Relations Divison at the Regional Office.

29. What is a sole and exclusive bargaining unit?

A sole and exclusive bargaining unit is a legitimate labor union duly recognized or certified to
represent all the employees in a bargaining unit.

30. Exhaustively explain and provide all the different instances a Bargaining Unit is determined. Provide an
illustration for each instance.
 (1) Community or mutuality of interest doctrine – under this doctrine, the employees sought to
be represented by collective bargaining agent must have community or mutuality of interest in terms of
employment and working conditions as evinced by the type of work they perform. An example is the case
of St. James School of Quezon City v. Samahang Manggagawa sa St. James School of Q.C. GR No. 151326,
Nov. 23, 2005., where the Supreme Court considered the Samahang Manggagawa sa St. James School of
Q.C. as the bargaining unit as there were 149 qualified voters at the time of the certificate election who
were motor pool construction and transportation employees of the Tandang Sora campus constituting
the said union.

(2) Globe Doctrine – This principle is based on the will of the employees. It is called Globe
doctrine because this principle was first enunciated in the United States case of Globe Machine and
Stamping Co. 3 NLRB 294 (1937), where it was ruled, in defining the appropriate bargaining unit, that in a
case where the company’s production workers can be considered either as a single bargaining unit
appropriate for purposes of collective bargaining or as three separate and distinct bargaining units, the
determining factor is the desire of the workers themselves. Consequently, a certification election should
be held separately to choose which representative union will be chosen by the workers. An example is
the case of International School Alliance of Educators vs. Quisimbing GR No. 128845, June 1, 2000,
wherein the Supreme Court ruled here that foreign-hired teachers do not belong to the bargaining unit of
the local-hires because the former have not indicated their intention to be grouped with the latter for
purposes of collective bargaining. Moreover, the collective bargaining history of the school also shows
that these groups were always treated separately.

(1) Collective Bargaining History Doctrine – This principle puts premium to the prior collective
bargaining history and affinity of the employees in determining the appropriate bargaining unit.
However, the existence of a prior collective bargaining history has been held as neither decisive
nor conclusive in the determination of what constitutes an appropriate bargaining unit. An
example is the case of National Association of Free Trade Unions v. Mainit Lumber Development
Co. Workers, wherein it was ruled here that there is mutuality of interest among the workers in
the sawmill division and logging division as to justify their formation of a single bargaining unit.
This holds true despite the history of said two divisions being treated as separate units and
notwithstanding their geographical distance from each other.

(2) Employment Status Doctrine – The determination of the appropriate bargaining unit based on
the employment status of the employees is considered an acceptable mode. For instance, casual
employees and those employed on a day-to-day basis, according to the Supreme Court in
Philippine Land Air Sea Labor Union vs. CIR, do not have the mutuality or community of interest
with regular and permanent employees. Hence, this inclusion in the bargaining unit composed of
the latter is not justified.
31. What is meant by a Certification Election? Who is entitled to file a petition for certification election?

Certification Election refers to the process of determining through secret ballot the certified
exclusive bargaining agent of the employees in an appropriate collective bargaining unit for
purposes of collective bargaining or negotiations.

In organized establishments, a petition for certification election may be filed by any legitimate
labor organization who is supported by the written consent of at leas 25% of all the employees in
the bargaining unit. In unorganized establishments, on the other hand, any legitimate labor
organization may file a petition for certification election.

32. State and explain the rational of conducting a CERTIFICATION ELECTION.

Certification election is conducted to determine the choice of the employees of their bargaining
representative. It is the democratic method of determining such representative. It is held to
ensure that the employees are properly represented in the exercise of their right to collective
bargaining with their employer.

33. State all the instances when no certification election may be held

34. How and when should a cert of election be undertaken in an organized establishment? How about in an
un-organized establishment?

- In both organized or un-organized establishment, the following statements must first be executed:

* A statement indicating any of the following:

 That the bargaining unit is unorganized or that there is no registered CBA covering the
employees in the bargaining unit;
 If there exists a duly registered CBA, that the petition is filed within the sixty-day freedom
period of such agreement;
 If another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-year
 period from entry of voluntary recognition or conduct of certification or run-off election
and no appeal is pending thereon.

- In an ORGANIZED ESTABLISHMENT, the following are the additional requirements:

o the signature of at least twenty-five (25%) percent of all employees in the appropriate
bargaining unit shall be attached to the petition at the time of its filing
o a petition questioning the majority status of the incumbent bargaining agent is filed
before the DOLE within the 60-day freedom period;
o such petition is verified; and
o the petition is supported by the written consent of at least twenty-five percent (25%) of
all employees in the bargaining unit.

- In an UNORGANIZED ESTABLISHMENT, the following are the additional requirements:

o Certification election in unorganized establishments shall “automatically” be conducted

upon the filing of a petition for certification election by an independent union or a
federation in behalf of the chartered local or the local/chapter itself.

35. Explain the Cardinal Rights of an employee in relation to Labor Law. What rights have direct significance
to Labor Relations?

The following are the Cardinal Rights of an employee which shall be granted by the employer to its
employee:

1. Security of tenure;
2. Just and humane conditions of work;
3. Living wage;
4. Self-organization;
5. Collective bargaining and negotiations;
6. Peaceful concerted activities, including the right to strike; and
7. Participate in policy and decision-making processes.
The three rights pertinent to Labor Relations are the right to Self-organization, Collective bargaining and
negotiations, and Peaceful concerted activities, including the right to strike.

36. Explain exhaustively the concept of Unfair Labor Practice in Philippine Labor Law.

Unfair Labor Practice is the violation of the constitutional rights of workers and employees to self-
organization, which are inimical to the legitimate interests of both labor and management, including their
right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual
respect, disrupt industrial peace and hinder the promotion of healthy and stable labor-management
relations.

For employers, It shall be unlawful to commit any of the following unfair labor practice:

(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(b) To require as a condition of employment that a person or an employee shall not join a labor
organization or shall with-draw from one to which he belongs;

(c) To contract out services or functions being performed by union members when such will interfere
with, restrain or coerce employees in the exercise of their rights to self-organization;

(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it or its organizers or supporters;

(e) To discriminate in regard to wages, hours of work and other terms and conditions of employment in
order to encourage or discourage membership in any labor organization. Nothing in this Code or in any
other law shall stop the parties from requiring membership in a recognized collective bargaining agent as
a condition for employment, except those employees who are already members of another union at the
time of the signing of the collective bargaining agreement. Employees of an appropriate bargaining unit
who are not members of the recognized collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if
such non-union members accept the benefits under the collective bargaining agreement: Provided, that
the individual authorization required under Article 242, paragraph (o) of this Code shall not apply to the
non-members of the recognized collective bargaining agent;

(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or
being about to give testimony under this Code;

(g) To violate the duty to bargain collectively as prescribed by this Code;

(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of
any issue in collective bargaining or any other dispute; or

(i) To violate a collective bargaining agreement.

The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations,
associations or partnerships who have actually participated in, authorized or ratified unfair labor practices
shall be held criminally liable. (As amended by Batas Pambansa Bilang 130, August 21, 1981).

On the other hand, it shall be unfair labor practice for a labor organization, its officers, agents or
representatives:

(a) To restrain or coerce employees in the exercise of their right to self-organization. However, a labor
organization shall have the right to prescribe its own rules with respect to the acquisition or retention of
membership;

(b) To cause or attempt to cause an employer to discriminate against an employee, including

discrimination against an employee with respect to whom membership in such organization has been
denied or to terminate an employee on any ground other than the usual terms and conditions under
which membership or continuation of membership is made available to other members;

(c) To violate the duty, or refuse to bargain collectively with the employer, provided it is the
representative of the employees;
(d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or
other things of value, in the nature of an exaction, for services which are not performed or not to be
performed, including the demand for fee for union negotiations;

(e) To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any
issue in collective bargaining or any other dispute; or

(f) To violate a collective bargaining agreement.

37.

38. Explain all the types of union security clauses. What are the legal principles pertinent to union
security arrangements?

39.What is the extent of the management prerogative to reorganize?

The exercise of the prerogative to transfer or assign employees from one office or area of
operation to another is valid provided there is no demotion in rank or diminution of salary,
benefits and other privileges and the action is not motivated by discrimination, bad faith, or
effected as a form of punishment or demotion without sufficient cause.

40.Provide extensive instances how management prerogative can be exercised.

A. Right to hire
Hiring of workers is within the employer’s inherent freedom to regulate its business and is a
valid exercise of its management prerogative subject only to special laws and agreements on
the matter and the fair standards of justice.

B. Discipline
The Er has the prerogative to instill discipline in his Ees and to impose reasonable penalties,
including dismissal, on erring Ees pursuant to company rules and regulations. However, such
management prerogative must be exercised in good faith for the advancement of the Er’s
interest and not for the purpose of defeating or circumventing the rights of the Ees under
special laws and valid agreements.

C. Transfer of employees
In the pursuit of its legitimate business interests, especially during adverse business
conditions, management has the prerogative to transfer or assign Ees from one office or area
 of operation to another provided there is no demotion in rank or diminution of salary,
benefits and other privileges and the action is not motivated by discrimination, bad faith, or
effected as a form of punishment or demotion without sufficient cause.

D. Productivity standard
An Er is entitled to impose productivity standards for its workers. In fact, non-compliance may
be visited with a penalty even more severe than demotion. The practice of a company in
laying off workers because they failed to make the work quota has been recognized in this
jurisdiction. Failure to meet the sales quota assigned to each of them constitute a just cause
of their dismissal, regardless of the permanent or probationary status of their employment.
Likewise, failure to observe prescribed standards of work, or to fulfil reasonable work
assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is
understood to mean failure to attain work goals or work quotas, either by failing to complete
the same within the allotted reasonable period, or by producing unsatisfactory results. This
management prerogative of requiring standards may be availed of so long as they are
exercised in good faith for the advancement of the Er’s interest.

E. Grant of bonus
The granting of a bonus is a management prerogative, something given in addition to what is
ordinarily received by or strictly due the recipient. An Er cannot be forced to distribute
bonuses when it can no longer afford to pay. To hold otherwise would be to penalize the Er
for his past generosity

F. Change of working hours

The working hours may be changed, at the discretion of the company, should such change be
necessary for its operations, and that employees shall observe such rules as have been laid
down by the company.

G. Rules on Marriage between employees of competitor-employers

The prohibition against personal or marital relationships with employees of competitor-
companies upon its employees is a valid exercise of management prerogative. What the
company merely seeks to avoid is a conflict of interest between the employee and the
company that may arise out of such relationships.

H. Post-employment ban
A post-retirement competitive employment restriction is designed to protect the Er against
competition by former Ee who may retire and obtain retirement or pension benefits and, at
the same time, engage in competitive employment.

41. Explain on the term “WILEY DOCTRINE”

The term Wiley Doctrine refers to that rule stating that “the surviving or consolidated corporation shall
have the duty to bargain, when there is relevant similarity and continuity of operations across the change
in ownership as evidenced by the wholesale transfer of the smaller corporation’s employees to the larger
corporation’s plant”.

Generally speaking, jurisprudence provide that a merger or consolidation shall not automatically transfer
employees of constituent corporations to the surviving corporation or consolidated corporation because
employees are not privy to such consolidation and is different from the employment contract entered
into by the employees with their employer. It necessitates a new contract of employment between the
employees and the surviving or consolidated corporation to validly obtain the former’s consent to such
employment, without which an automatic transfer of employment would amount to an involuntary
servitude.

Wiley Doctrine comes into play in questioning the enforceability of a Collective Bargaining Agreement
when the merger or consolidation was tainted with bad faith, or when the employer-party to the CBA has
a pre-existing obligation to their employees under the CBA. On such cases, Wiley Doctrine dictates that
the surviving corporation shall have the right, interest, and power to negotiate with the employees. It
operates as a novation of the CBA in which the party with which the employee agreed with now becomes
the surviving or consolidated corporation. In essence the surviving or consolidated corporation
subrogates into the rights and power of the employer-party limited to obligations the latter has with
respect to the CBA, not automatically comprising employment contracts.

42. Discuss and explain the procedure in Collective Bargaining

Collective Bargaining means dealing with the terms and conditions of employment between the
employees and their employer in a particular business establishment. It presupposes membership of
employees in a Legitimate Labor Organization or Legitimate Labor Union. Its purpose is to act as a
representative of employees to deal with the employer concerning the terms and conditions of
employment; hence, the term collective bargaining. Collective Bargaining also presupposes the
designation of a Legitimate Labor Organization or Legitimate Labor Union to be the appropriate and
exclusive collective bargaining unit representing the majority of the employees. On this note, we should
remember that the labor code only refers to “majority representation” – this means that any individual or
group of employees shall still have the right to press their grievances directly to their employer when they
chose to without regard to union membership, and even outside the grievance machinery so set-up by a
Collective Bargaining Agreement. On a side note, this is one of the distinguishing features of fixing
disputes regarding wage distortion from collective bargaining, i.e. wage fixing does not necessitate
employees’ membership into a labor union.

The parties to a collective bargaining are the exclusive collective bargaining unit and the employer.

The labor code provides for the following procedures to observe in collective bargaining:

1. The first step in a collective bargaining is to “put the parties in the table of negotiation”. This is done
when any of the party desires to negotiate an agreement. The initiating party must serve a written
notice upon the other party with a statement of its proposals. The recipient party must make a reply
thereto within 10 calendar days from receipt of such notice. Of course, if there is no indifference,
then there is nothing more to negotiate – tapos ang usapan; however, this is a rare scenario.
Supposing differences arose from the parties’ communications, then either of them may request for a
conference. It shall begin within 10 calendar days from the date the request has been communicated
to the other party. In any case ignorance by any of the party has been employed during this stage; the
other party may proceed to the next step: conciliation and mediation proceeding.
2. The second step is conciliation and mediation proceeding. This is done not only by filing a pro-forma
request for assistance (RFA) with the National Conciliation and Mediation Board (NCMB), but also by
the parties appointing their very own voluntary arbitrator which shall be deputized by the Secretary
of Labor and Employment conditioned upon a written request bilaterally agreed upon by the parties.
In some cases, usually when the interest of the public so requires, the NCMB may in its own initiative
call upon the parties to conciliation meetings. Well, to keep our head from bursting, let’s stick with
the usual NCMB path.
a. So again, upon filing of the RFA by any of the party, the NCMB shall schedule a
conciliation meeting and notify the other party thereof.
b. The NCMB shall designate a voluntary arbitrator who shall act not only as a mediator but
also a voluntary arbiter, as the name suggests. Why do I say this? It is because voluntary
arbitration has two parts: mediation, and arbitration.
c. During mediation, the parties can further negotiate; but if they fail to negotiate, the
matter shall be considered for arbitration since they submitted themselves to the
jurisdiction of the voluntary arbiter – he has the exclusive and original jurisdiction to take
cognizance of labor cases arising from collective bargaining disputes (the NLRC could not
even do anything about it but to dispose these kinds of cases and refer the same to the
NCMB for voluntary arbitration).
d. The arbitration part in voluntary arbitration (do not confuse this to compulsory
arbitration since it is NLRC proceeding) connotes the exercise of powers vested upon the
voluntary arbitrator to hear and decide bargaining deadlocks. He may issue subpoenas
and hold hearings for its purpose (not mediation okay? It’s already done; hearing refers
to clarificatory hearings) and he may receive evidences (labor code did not mention
pieces of evidence; check it out) and take whatever action necessary to resolve the issues
of bargaining deadlocks. Well, just a side note, he has no power to cite in contempt those
 rowdy members of any of the parties causing disruption and impediment to the early
settlement of disputes.
e. During the voluntary arbitration proceeding, voluntary settlement between the parties
will not be precluded. It means that, the parties may still agree on the issue throughout
the proceeding (what a beautiful institution of ADR in our “quasi-judicial” system).
f. The voluntary arbitrator shall render a decision within 20 calendar days from the date of
submission of the dispute within its jurisdiction.
g. The decision rendered shall be final and executory after 10 calendar days from the
parties’ receipt of the decision.
h. Thereafter, any interested party (of course, the member of the party favored by the
decision) may file a motion to issue a writ of execution to execute the final decision,
order or award. The sheriffs of the NLRC shall assist in the execution proceedings, if none,
then the sheriffs of the regular courts.
i. Last but not the least, the parties shall pay arbitration fee as fixed by the voluntary
arbitrator.

43. What is the SWEETHEART DOCTRINE? Define SUBSTITUTIONARY DOCTRINE.

 The Sweetheart Doctrine provides that it is ULP for a labor organization to ask for or accept
negotiation or attorney’s fees from the employer in settling a bargaining issue or dispute. (Art.
260 (e))
 The Substitutionary Doctrine provides that where there is a shift in the employees’ union
allegiance after the execution of a CBA with the employer, the employees can change their agent
but the CBA which is still subsisting continues to bind the employees up to its expiration date. In
other words, the employees cannot revoke the validly executed CBA with their employer by the
simple expedient of changing their bargaining agent. The new agent must respect the CBA.

44. What is an industrial or labor dispute?

 Labor dispute includes any controversy or matter concerning terms and conditions of
employment or the association or representation of person in negotiations, fixing, maintaining,
changing or arranging the terms and conditions of employment. Regardless of whether or not the
disputants stand in the proximate relation of employers and employees.

45. What is meant by : STRIKE, LOCKOUT, PICKETING?

STRIKE means any temporary stoppage of work by the concerted action of the employees as a result of an
industrial labor dispute.
PICKETING is the act of the workers in peacefully marching to and fro before an establishment involved in
a labor dispute generally accompanied by the carrying and display of signs, placards, and banners
intended to inform the public about the dispute.

LOCKOUT means the Closing of a place of Employment or the suspension of work or the refusal by
employer to continue to employ any number of persons employed by him. Lockout means withholding of
employment by an employer and the whole or partial closing oh his business establishment in order to
gain concession from employees.

46. Discuss all the various forms of strikes.

47. Exhaustively explain the procedural but mandatory requisites of a lawful strike or lockout.

1. It must be based on a valid and factual ground.

2. A Notice of lockout must be filed with NCMB-DOLE.
3. A Notice must be served to NCMB-DOLE at least 24 hours prior to the taking of the lockout vote
by secret balloting, informing said office of the decision to conduct a lockout vote, and the date,
place and time thereof.
4. A lockout vote must be taken where the majority members of the board of directors of
corporations or association or partners in a partnership obtained by secret ballot must be called
in a meeting called for the purpose must approve it.
5. A lockout vote report should be submitted to the NCMB-DOLE at least 7 days before the
intended day of the lockout.
6. The cooling period of 15 days, in case of unfair labor practices of labor organizations, or 30 days
in case of collecting bargaining deadlock, should be fully observed.
7. The 7 day waiting period/lockout ban reckoned after the submission of the lockout vote report to
the NCBM-DOLE should be fully observed in all cases.

48. Explain the effect of conversion of the notice of strike into a preventive mediation case.

Once the notice of strike is converted into a preventive mediation case, the notice is deemed dropped
from the dockets as if no notice of strike has been filed. Since there is no notice of strike to speak about,
any strike subsequently staged by the union after the conversion is deemed not to have compiled with
the requirements of a valid strike and therefore illegal. Same rule applies in case of lockout by an
employer.

49. What is the effect of a strike staged in violation of an assumption or certification order? Explain and
provide legal basis.
A strike staged in defiance or in violation of an assumption or certification order is considered to be
illegal. The mere finding or declaration of illegality of the strike will result in the termination of all union
officers who knowingly participated in the illegal strike. It is not required, for purposes of termination,
that the officers should commit an illegal act during the strike.

On the other hand, the mere finding or declaration of illegality of a strike will not result in termination of
ordinary union members. In Naranjo vs Biomedica Health Care, Inc., it was ruled that absent any showing
that the employees are union officers, they cannot be dismissed solely on the illegality of the strike. For
an ordinary union member to suffer termination, it must be shown by clear evidence that he has
committed illegal acts during the strike.

50. Provide examples of strikes conducted for unlawful purposes.

a. A strike to compel an employer to cease doing business with another employer.

b. A strike to induce an employer to commit an unfair labor practice against non-union employees.

51. Can strikers be dismissed in cases of “GOOD FAITH” strikes. Explain and Provide legal basis.

No, strikers cannot be dismissed in cases of Good Faith Strikes because such strikes are legal strikes and
strikers cannot be dismissed because of their participation in legal strikes.

A “Good Faith” Strike is a strike where the union believed that the company committed ULP and the
circumstances warranted such belief in good faith, although subsequently such allegations of ULP are
found out as not true.

A good faith strike is a legal strike as decided by the Court “All told, the strike staged by the petitioners
was a legal one even though it may have been called to offset what the strikers believed in good faith to
be unfair labor practices on the part of the employer” (Ferrer, et al. vs. Court of Industrial Relations, et al.,
17 SCRA 352 [1966]).

In a separate decision also concerning a good faith strike the Court said “The (Good Faith Strike) being
legal, the NLRC gravely abused its discretion in terminating the employment of the individual petitioners,
who, by operation of law, are entitled to reinstatement with three years backwages.” (Master Iron Labor
Union et al. vs. NLRC, G.R. No. 92009, 1993).