Lecture 1 - Labor Review - For Posting
Lecture 1 - Labor Review - For Posting
Basic
principles
Atty. Donna Bernardo
Philippine Population 114 Million (2022 estimate of Philippine Information Agency)
Labor Force Participation Rate (LFPR)
[Filipinos of employable age or 15 • 66.1%
years old and above; excluding
OFWs]
Employment Rate (June 2023) • 95.5 % (48.84 million of the LFPR)
• Wage and salary workers – 61.5%
• Self employed persons (without any employees) – 27.1%
• Unpaid family workers – 9.5%
• Employers – 1.9%
Underemployment Rate • 12.0% [5.87 million of the employed persons]
• (those who wished to have additional hours, or additional job, or new
job with longer hours)
Unemployment Rate • 4.5 % [2.33 million unemployed persons]
Sectors • Services (58.2%)
• Agriculture (23.8%)
• Industry (18.1%)
OFWs • Number of OFWs who worked abroad at any time during the period April to
September 2021 was estimated at 1.83 million
• Male – 39.8% (730,000)
• Female – 60.2% (1.10 million)
• 43.2% OFWs belonged to elementary occupations
• 16.5% worked as service and sales workers
• 13.6% OFWs plant and machine operators and assemblers
• 8.7% technicians and associate professionals
• 8.5 percent professionals
• 8.1 % craft and related trade workers
• 151.33 billion pesos in remittances. The total remittances sent by OFWs during the
period April to September 2021 reached. This includes cash sent (127.13 billion
pesos), cash brought home (20.17 billion pesos), and in kind (4.03 billion pesos).
Elementary occupations involve the performance of simple and routine tasks which may require the use of
hand-held tools and considerable physical effort. It includes: cleaning, restocking supplies and performing
basic maintenance in apartments, houses, kitchens, hotels, offices and other buildings; washing of cars and
windows; helping in kitchens and performing simple tasks in food preparations; delivering messages or
goods; carrying luggages and handling baggage,etc.
Employment
life cycle
• Application
• Hiring
• Onboarding
• Development
- Training
- Evaluation
- Workplace concerns
- Internal movement
(recognition, promotion,
transfer, demotion, etc.)
• Separation
(resignation, retirement, or
dismissal)
• Statutes, regulations, and jurisprudence
governing the relations between capital and
labor, by providing for certain employment
What is labor standards and a legal framework for
negotiating, adjusting, and administering
law? those standards and other incidents of
employment. (Azucena)
What are the two branches of Labor law and how are they defined?
Labor Standards
That part of the labor law which prescribes minimum terms and conditions of employment which the
employer is required to grant to employees.
Labor Relations
That part of labor law which deals with the relations between employer and employee, unionism,
collective bargaining, grievance machinery, voluntary arbitration, strikes, picketing, lockout, etc.
*The two are complementary; the usual reason for the exercise of the right to strike (labor relations) is
a matter relating to labor standards (better wages, benefits, work hours).
LABOR CODE
ARTICLE 4. Construction in favor of labor
All doubts in the implementation and
interpretation of the provisions of this Code,
including its implementing rules and
CONSTRUCTION regulations, shall be resolved in favor of labor.
IN FAVOR OF
LABOR CIVIL CODE
ARTICLE 1702. In case of doubt, all labor
legislation and all labor contracts shall be
construed in favor of the safety and decent
living for the laborer
Labor contracts are imbued with
public interest
ARTICLE 1700. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor
contracts must yield to the common good. Therefore, such contracts
are subject to the special laws on labor unions, collective bargaining,
strikes and lockouts, closed shop, wages, working conditions, hours of
labor and similar subjects.
ARTICLE 1701. Neither capital nor labor shall act oppressively against
the other, or impair the interest or convenience of the public.
What is social
legislation?
• Those laws that provide particular
kinds of protection or benefits to
society or segments thereof in
furtherance of social justice.
(Azucena)
Calalang v. Williams, G.R. No.
47800, December 2, 1940
1987 CONSTITUTION
ART. XIII
• SECTION 3. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
LABOR CODE
ARTICLE 3. Declaration of Basic Policy
• THE State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex,
race or creed, and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and
humane conditions of work.
What are the basic 1. Equal work opportunities for all
rights of workers? 2.
3.
Security of tenure
Wages and wage related benefits
4. Work days and work hours
5. Weekly rest day
6. Safe working conditions
7. Right to self organization and collective
bargaining
8. Employees’ compensation benefits for work-
related contingencies
9. Protection and enforcement of rights for
special workers – disabled workers, child
workers, women workers, etc.
10. Post employment stage – the right to a
livable pension and comfortable retirement
Test of employer-employee
relationship
• When the control test is insufficient, the economic realities of the employment are
considered to get a comprehensive assessment of the true classification of the
worker. In Francisco v. National Labor Relations Commission, this Court explained the import
of this test:
• Thus, the determination of the relationship between employer and employee
depends upon the circumstances of the whole economic activity, such as: (1) the
extent to which the services performed are an integral part of the employer's
business; (2) the extent of the worker's investment in equipment and facilities; (3) the
nature and degree of control exercised by the employer; (4) the worker's opportunity
for profit and loss; (5) the amount of initiative, skill, judgment or foresight required
for the success of the claimed independent enterprise; (6) the permanency and
duration of the relationship between the worker and the employer; and (7) the
degree of dependency of the worker upon the employer for his continued
employment in that line of business.
• The proper standard of economic dependence is whether the worker is
dependent on the alleged employer for his continued employment in that line of
business.
Petitioners satisfy both the four-fold and economic dependence tests.
• Here, the four factors are present. First, petitioners are directly employed by
respondent Lazada as evidenced by the Contracts they signed. Petitioner's former employer,
RGSERVE, Inc., is not a party to the Contract with respondent Lazada. Second, as indicated in the
Contract, petitioners receive their salaries from respondent Lazada. Petitioners are paid by
respondent Lazada the amount of P1,200.00 for each day of service. Third, respondent Lazada has
the power to dismiss petitioners. In their contract, respondents can immediately terminate the
agreement if there is a breach of material provisions of the Contract. Lastly, respondent Lazada has
control over the means and methods of the performance of petitioners' work.
• This is explicit in their agreement which states:
•2. Duties. Contractor, as an Independent Contractor, agrees to provide and to make itself
available to provide, services ("Services") as a logistics and delivery services provider to the
Company during such reasonable hours and at such times as the Company may from time
to time request. The method by which Contractor is to perform such Services shall be as
instructed by, and within the discretion and control of the Company. In performing Services
under this agreement, Contractor agrees that it shall use diligent efforts and professional
skills and judgment.
• The services performed by petitioners are integral to respondents' business. The delivery of
items is clearly integrated in the services offered by respondents.
• In carrying out their business, they are not merely a platform where parties can transact;
they also offer the delivery of the items from the sellers to the buyers. The delivery is an integral
part of respondent Lazada's business.
• Further, respondent Lazada admitted that it has different route managers to supervise the
delivery of the products from the sellers to the buyers. Thus, it has taken steps to facilitate not
only the transaction of the seller and buyer in the online platform but also the delivery of the
items.
• Further, petitioners have invested in equipment to be engaged by respondents, they are
required by respondents to use their own motor vehicles and other equipment and supplies in
the delivery of the items. Moreover, petitioners had no control over their own profit or loss
because they were paid a set daily wage. Petitioners also had no control over their own time
and they cannot offer their service to other companies as respondents can demand their
presence from time to time.
• More importantly, petitioners are dependent on respondents for their continued
employment in this line of business. As the facts reveal, petitioners have been previously
engaged by a third-party contractor to provide services for respondents. This time, petitioners
were directly hired by respondents. This demonstrates that petitioners have been economically
dependent on respondents for their livelihood
SECURITY OF TENURE
LABOR CODE
• ARTICLE 294. [279] Security of Tenure. — In cases of regular employment, the employer
shall not terminate the services of an employee except for a just cause or when
authorized by this Title. An employee who is unjustly dismissed from work shall be
entitled to reinstatement without loss of seniority rights and other privileges and to his
full backwages, inclusive of allowances, and to his other benefits or their monetary
equivalent computed from the time his compensation was withheld from him up to the
time of his actual reinstatement
1987 Constitution,
Article III
LABOR CODE
ARTICLE 3. Declaration of Basic Policy
• THE State shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, race or creed, and regulate the
relations between workers and employers
LABOR CODE PROVISIONS AGAINST
DISCRIMINATION
• ARTICLE 133. [135] Discrimination Prohibited.—
It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and
conditions of employment solely on account of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe
benefits, to a female employee as against a male employee, for work of equal value; and
(b) Favoring a male employee over a female employee with respect to promotion, training opportunities, study
and scholarship grants solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in this article or any violation of the
rules and regulations issued pursuant to Section 2 hereof shall be penalized as provided in Articles 288 and
289 of this Code: Provided, That the institution of any criminal action under this provision shall not bar the
aggrieved employee from filing an entirely separate and distinct action for money claims, which may include
claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed independently
of each other.
ARTICLE 134. [136] Stipulation against Marriage.— It shall be unlawful for an employer to require
as a condition of employment or continuation of employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage.
ARTICLE 135. [137] Prohibited Acts.— It shall be unlawful for any employer:
• (1) To deny any woman employee the benefits provided for in this Chapter or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of the benefits
provided under this Code;
• (2) To discharge such woman on account of her pregnancy, or while on leave or in confinement
due to her pregnancy;
• (3) To discharge or refuse the admission of such woman upon returning to her work for fear that
she may again be pregnant.
SPECIAL LAWS
(a) No child below fifteen (15) years of age shall be employed, except when he works
directly under the sole responsibility of his parents or guardian, and his employment does
not in any way interfere with his schooling.
(b) Any person between fifteen (15) and eighteen (18) years of age may be employed for
such number of hours and such periods of the day as determined by the Secretary of Labor
and Employment in appropriate regulations.
(c) The foregoing provisions shall in no case allow the employment of a person below
eighteen (18) years of age in an undertaking which is hazardous or deleterious in nature as
determined by the Secretary of Labor and Employment.
ARTICLE 138. [140] Prohibition against Child Discrimination.— No employer shall
discriminate against any person in respect to terms and conditions of employment on
account of his age.
Anti-Age Discrimination in Employment Act
Republic Act No. 10911, (July 21, 2016)
• Position – husband - medical representative for Glaxo / wife - Branch Coordinator, supervising
district managers and med reps in her area for competitor company Astra
• Glaxo has a right to guard its trade secrets, manufacturing formulas, marketing strategies and
other confidential programs and information from competitors, especially so that it and Astra
are rival companies in the highly competitive pharmaceutical industry.
• The prohibition against personal or marital relationships with employees of competitor
companies upon Glaxo’s employees is reasonable under the circumstances because
relationships of that nature might compromise the interests of the company. In laying down the
assailed company policy, Glaxo only aims to protect its interests against the possibility that a
competitor company will gain access to its secrets and procedures.
Yrasuegui v. Philippine Airlines, Inc., G.R. No. 168081, [October
17, 2008], 590 PHIL 490-524
occupational for a purpose rationally connected to the performance of the job; (2) the
employer must establish that the standard is reasonably necessary to the
accomplishment of that work-related purpose; and (3) the employer must
qualification establish that the standard is reasonably necessary in order to
accomplish the legitimate work-related purpose.
[BFOQ] • Similarly, in Star Paper Corporation v. Simbol, this Court held that in
order to justify a BFOQ, the employer must prove that (1) the
employment qualification is reasonably related to the essential operation
of the job involved; and (2) that there is factual basis for believing that all
or substantially all persons meeting the qualification would be unable to
properly perform the duties of the job.
• In short, the test of reasonableness of the company policy is used
because it is parallel to BFOQ. BFOQ is valid "provided it reflects an
inherent quality reasonably necessary for satisfactory job
performance.
International School Alliance of Educators v. Quisumbing, G.R.
No. 128845, [June 1, 2000], 388 PHIL 661-678
ARTICLE III
SECTION 4. No law shall be passed abridging the freedom
of speech, of expression, or of the press, or the right of
the people peaceably to assemble and petition the
government for redress of grievances.
• While the Constitution and the Labor Code are silent as to whether or not
government employees may strike, they are prohibited from striking, by express
provision of Memorandum Circular No. 6 series of 1987 of the Civil Service
Commission and as implied in E.O. No. 180.
• Government employees may, therefore, through their unions or associations, either
petition the Congress for the betterment of the terms and conditions of employment
which are within the ambit of legislation or negotiate with the appropriate
government agencies for the improvement of those which are not fixed by law.
• SSS employees are part of the civil service and are covered by the Civil Service
Commission's memorandum prohibiting strikes.
• E.O. No. 180 which provides guidelines for the exercise of the right to organize of
government employees, allows negotiation where the terms and conditions of
employment involved are not among those fixed by law.
Quantum of evidence
required in labor cases
AND
who alleges the existence of a fact or thing
necessary to establish his/her claim has the burden
of proving the same by the amount of evidence
QUANTUM required by law, which, in labor proceedings, is
substantial evidence, or "such relevant
OF evidence as a reasonable mind might accept as
adequate to support a conclusion." To be clear,
EVIDENCE in the hierarchy of evidentiary values, "proof beyond
reasonable doubt is placed at the highest level,
followed by clear and convincing evidence,
preponderance of evidence, and substantial
evidence, in that order." Thus, in the hierarchy of
evidence, it is the least demanding. "Corollarily, the
ground for the dismissal of an employee does not
require proof beyond reasonable doubt."
Process in • LABOR CODE
settlement • ARTICLE 227. [221] Technical Rules Not Binding and
Prior Resort to Amicable Settlement— In any
of labor proceeding before the Commission or any of the
disputes Labor Arbiters, the rules of evidence prevailing in
courts of law or equity shall not be controlling and
it is the spirit and intention of this Code that the
Commission and its members and the Labor
Arbiters shall use every and all reasonable means
to ascertain the facts in each case speedily and
objectively, without regard to technicalities of law
or procedure, all in the interest of due process.
• The Labor Arbiter/NLRC shall exert all efforts
towards the amicable settlement of a labor dispute
within his jurisdiction on or before the first hearing.
Burden to prove Javier v. Fly Ace Corp., G.R. No. 192558,
fact of employer- [February 15, 2012], (682 PHIL 359-376)
employee
relationship; In an illegal dismissal case, the onus
burden to prove probandi rests on the employer to prove
fact of dismissal; that its dismissal of an employee was for a
valid cause. However, before a case for
and burden to illegal dismissal can prosper, an employer-
prove validity of employee relationship must first be
dismissal established by the employee
MZR Industries v. Colambot, G.R. No. 179001, [August 28, 2013], (716 PHIL
617-628)
While we recognize the rule that in illegal dismissal cases, the employer bears the
burden of proving that the termination was for a valid or authorized cause, in the
present case, however, the facts and the evidence do not establish a prima facie case
that the employee was dismissed from employment. Before the employer must bear
the burden of proving that the dismissal was legal, the employee must first
establish by substantial evidence the fact of his dismissal from service. If there is no
dismissal, then there can be no question as to the legality or illegality thereof.|
End of presentation