EXECUTIVE COUNCIL

REA MAY G. HERMOSURA

Chairperson

JANINE NICOLE C. ORCENA TRISHA ALEXIS R. MAINGAT JAYNIE P. PAJARILLAGA

Vice Chairperson for Academics Secretary Creative Director

SHASHLEY R. BERNARDEZ LANIE GRACE S. LIM IRISH ANA A. SALINAS

Vice Chairperson for Administration Treasurer Volunteer Core Head

CRISTOBAL N. RABINO GRACE PEREZ-SONIDO TIMOTHY JAMES D. PACSON

Operations Head Auditor Ways and Means Officer

LABOR LAW COMMISSION

Mary Joy O. Jonieca Anna Bianca B. Esber Ian Keith Capuz

Commissioner Subject Head – Social Welfare Legislation Alia Jacinta Coleen A. Del Rosario
Robert P. Dillera
Shann Jevi V. Tanaka-Montefrio Jadrin Edison D. Zetha Berl Stephen Dutosme
Deputy Commissioner Subject Head – Labor Relations Maria Westphalia B. Gozon
Ricci Jazelle A. Ibarreta
Bryan Del Castillo Hissah Macaraya
Subject Head – General Principles
Ellaine Dominique E. Quizon
Subject Head – Management Prerogative Ray Angelo L. Roces
Korina Cyril Sermonia
Lissa Marie G. Loo Joanna Marie C. Fandialan
Subject Head – Recruitment and Placement Keisha Mariah C. Lauigan
Marie Joy A. Arugay
of Workers, Termination of Employment Subject Head – Jurisdiction and Reliefs
Mikee Clamor
Analyn B. Solito
Airess Casimero
Members
Subject Head – Labor Standards
 CENTER FOR LEGAL EDUCATION AND RESEARCH

ATTY. RODERICK M. VILLOSTAS

Director

ATTY. ANTONY J. PARREÑO

ATTY. LESTER NAZARENE V. OPLE
ATTY. RICKSON M. BUENVIAJE
Research Fellows

BRANDO F. DE TORRES
MARICAR S. ASUNCION
Research Staff

PHILIPPINE COPYRIGHT

This material is an intellectual creation of the Arellano Law Bar Operations Commission 2022. Any unauthorized reprint or use of this material is
prohibited. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including but not
limited to photocopying, recording, or by any information storage or retrieval system without the express written consent of both Arellano Law bar
Operations Commission 2022 and the Arellano University School of Law.

ALL RIGHTS RESERVED © 2022

 LABOR LAW

I. GENERAL PRINCIPLES

A. Basic policy on labor

1. What is the State's basic policy on labor?

The State shall: (APERA)

a. Afford protection to labor;
b. Promote full employment;
c. Ensure equal work opportunities regardless of sex, race or creed;
d. Regulate the relation between workers and employers; and
e. Assure the rights of workers to:
i. Self-organization;
ii. Collective bargaining;
iii. Security of tenure; and
iv. Just and humane conditions of work (Art. 3, Labor Code, as amended).

2. What is social justice?

Social Justice is "neither communism, nor despotism, nor atomism, nor anarchy," but the
humanization of laws and the equalization of social and economic forces by the State so that justice
in its rational and objectively secular conception may at least be approximated. Social justice means
the promotion of the welfare of all the people, the adoption by the Government of measures
calculated to insure economic stability of all the competent elements of society, through the
maintenance of a proper economic and social equilibrium in the interrelations of the members of
the community, constitutionally, through the adoption of measures legally justifiable, or extra-
constitutionally, through the exercise of powers underlying the existence of all governments on the
time-honored principle of salus populi est suprema lex. Social justice, therefore, must be founded
on the recognition of the necessity of interdependence among divers and diverse units of a society
and of the protection that should be equally and evenly extended to all groups as a combined force
in our social and economic life, consistent with the fundamental and paramount objective of the
state of promoting the health, comfort, and quiet of all persons, and of bringing about "the greatest
good to the greatest number"(Calalang vs. Williams, G.R. No. 47800, December 2, 1940).

3. Who are exempted from the rights and benefits granted under the Labor Code?

1. Government employees;
2. Employees of government-owned and controlled corporations with original charter or created
by special laws;
3. Foreign governments;
4. International agencies;
5. Corporate officers; intra-corporate disputes which fall under the jurisdiction of regular courts
pursuant to the Securities Regulation Code;
6. Local water districts, except where NLRC‘s jurisdiction is invoked; and
7. As may otherwise be provided by the Labor Code.

Note: The Labor Code may apply even if the parties are not employers or employees of each other.
It is not correct to say that employment relationship is a precondition to the applicability of the
Code (Azucena, Labor Code with Comments and Cases, Vol. 1, 2016, p. 33) .
 B. Construction in favor of labor

C. Burden of proof and quantum of evidence in labor cases

4. What is the quantum of evidence in labor cases?

In all cases, as in other administrative and quasi-judicial proceedings, the quantum of proof
necessary is substantial evidence, or such amount of relevant evidence which a reasonable mind
might accept as adequate to justify a conclusion (Valencia vs. Classic Vinyl Products Corp., G.R.
No. 206390, January 30, 2017).

5. In illegal dismissal cases, who has the burden of proof- the complainant or the
employer-respondent?

The complainant has the burden of proof to prove existence of employer-employee relationship
(Valencia vs. Classique Vinyl Products Corporation, G.R. No. 206390, January 30, 2017 ) but once
such burden is discharged, the employer has the burden of proof to show that the employment
contract had been validly terminated (Centro Project Manpower Services Corporation vs. Naluis
and CA, G.R. No. 160123, June 17, 2015)

6. What is the equipoise rule?

The equipoise rule provides that when the evidence of the employer and the employee are in
equipoise or evenly balanced, doubts are resolved in favor of labor. This is in line with the policy
of the State to afford greater protection to labor. (Hubilla vs. HSY Marketing Ltd., Co., G.R. No.
207354, January 10, 2018)

D. Legal basis under the 1987 Constitution, Civil Code, and Labor Code

7. What are some of the provisions under the New Civil Code that are relevant to labor?

1. 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
1700, NCC).
2. Neither capital nor labor shall act oppressively against the other or impair the interest or
convenience of the public (Article 1701, NCC).
3. 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 (Article 1702, NCC)
4. No contract which practically amounts to involuntary servitude, under any guise whatsoever,
shall be valid (Article 1703, NCC)

II. RECRUITMENT AND PLACEMENT OF WORKERS

A. Recruitment and placement (Labor Code and R. A. No. 8042, as amended by R.A. No.
10022)

8. What is recruitment and placement?

Recruitment And Placement Refers To Any Act Of: [CETCHUP]

1. Canvassing,
 2. Enlisting,
3. Transporting,
4. Contracting,
5. Hiring
6. Utilizing, or
7. Procuring workers.

It Includes: [CRAP]
1. Contract services;
2. Referrals;
3. Advertising for; or
4. Promising employment, locally or abroad, whether for profit or not.

Provided that any person or entity which, in any manner, offers or promises for a fee, employment
to two or more persons shall be deemed engaged in recruitment and placement (Art. 13 [b], Labor
Code, as amended).

1. Illegal recruitment and other prohibited activities

a. Elements and b. Types of illegal recruitment

12. What are the types of illegal recruitment and their respective elements?

The types of illegal recruitment are as follows:

a. Simple – illegal recruitment committed by a person who has no valid license or authority
against one or two persons only.

Elements:
i. The offender has no valid license or authority required by law to enable one to lawfully
engage in recruitment and placement of workers; and
ii. He undertakes either any activity within the meaning of “recruitment and placement”
defined under Art. 13(b) or any prohibited practices under Art. 34 of the Labor Code (Sec.
6 of RA No. 8042 as amended by Sec. 5 of RA No. 10022).

b. Illegal Recruitment as Economic Sabotage:

There are two types of illegal recruitment involving economic sabotage:

1. Syndicated – illegal recruitment committed by a syndicate if carried out by a group of

three (3) or more persons in conspiracy or confederation with one another.

Elements:
i. The accused have no valid license or authority required by law to enable them to
lawfully engage in the recruitment and placement of workers;
ii. The accused engaged in this activity of recruitment and placement by actually
recruiting, deploying and transporting; and
iii. Illegal recruitment was committed by three (3) persons conspiring and confederating
with one another. (People vs. Hashim, G.R. No. 194255, June 13, 2012)

2. Large scale or qualified – illegal recruitment committed against three (3) or more
persons, individually or confederating with one another (People vs. Sadiosa, G.R. No.
107084, May 15, 1998; P.D 2018, Sec 1 Art. 38 of PD 442, as amended).
 Elements:
i. The offender has no valid license or authority required by law to enable him to lawfully
engage in recruitment and placement of workers;
ii. The offender undertakes any of the activities within the meaning of “recruitment and
placement” under Art. 13 (b) of Labor Code, or any of the prohibited practices enumerated
under Art. 34 of the said Code (now Sec. 6 of the R.A. No. 8042); and
iii. The offender committed the same against three (3) or more persons, individually or as a
group (People vs. Taguinay, G.R. No. 186132, February 27, 2012) .

c. Illegal recruitment vs. estafa

13. Distinguish Illegal Recruitment from Estafa.

Illegal Recruitment Estafa

It is malum prohibitum. It is malum in se.

The criminal intent of the accused is not The criminal intent is imperative.
necessary.
It is penalized under the Labor Code. It is penalized under the Revised Penal Code.

It is limited in scope. It is wider in scope and covers deceits

whether related or not related to recruitment
activities.
(Chan, The Labor Code of the Philippines Annotated Vol. I, 2019, p. 266)

2. Liability Of Local Recruitment Agency And Foreign Employer

a. Solidary Liability

17. What is the nature of the liability of local recruitment agency and foreign employer?

The local recruitment agency is solidarily liable with the foreign principal; severance of relations
between the local agent and foreign principal does not affect the liability of the foreign principal
(Section 10 [2], RA No. 8042, as amended).

b. Theory of Imputed Knowledge

20. What is the Theory of Imputed Knowledge?

The theory of imputed knowledge ascribes the knowledge of the agent to the principal-employer
but not the other way around. The knowledge of the principal employer cannot, therefore, be
imputed to its agent. (Sunace vs. NLRC, G.R. No. 161757, January 25, 2006).

3. Entities prohibited from recruiting

21. What is the Citizenship Requirement in participating in the recruitment and placement
of workers, locally or overseas?

Article 27 of the Labor Code, as amended, provides that only Filipino citizens or corporations,
partnerships or entities at least 75% of the authorized and voting capital stock of which is owned
 and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement
of workers, locally or overseas.

23. Who are disqualified from recruitment and placement for Overseas Employment?

The following are disqualified from recruitment and placement for local employment: [TOCIDO]
1. Travel agencies and sales agencies of airline companies;
2. Officers or Board members of any corporation or partners in a partnership engaged in the
business of a travel agency;
3. Corporations and partnerships, where any of its officers, Board members or partners is also an
officer or board member of any corporation or partnership engaged in the business of a travel
agency;
4. Individuals, partners, officers or directors of an Insurance company who make, propose or
provide an insurance contract under the compulsory insurance coverage for agency-hired
OFWs;
5. Sole proprietors, partners or officers and board members with Derogatory records.
6. Any Official or employee of DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO,
NBO, PNP, CAAP, international airport authorities, and other GAs directly involved in the
implementation of RA No 8042 and/or any of his relatives within the 4th civil degree (Part II,
Rule I, Sec. 3, 2016 Revised POEA Rules and Regulations).

4. Cancellation of license or authority

24. Distinguish between license and authority.

License Authority

A document issued by the Department of Labor A document issued by the Department of

authorizing a person or entity to operate a Labor authorizing a person or association to
private employment agency (Art. 13 [d], engage in recruitment and placement
Labor Code, as amended). activities as a private recruitment entity.
(Art. 13 [f], Labor Code, as amended).

26. Who has the power to suspend or cancel a license or authority to recruit employees for
overseas employment?

The POEA and the Secretary of Labor are concurrently vested the power to suspend or cancel any
license or authority to recruit employees for overseas employment (Art. 35, Labor Code, as
amended; Trans Action Overseas Corporation vs. Secretary of Labor, G. R. No. 109583, September
5, 1997).

5. Termination of contract of migrant worker without just or valid cause

27. What are the reliefs to which OFWs are entitled in case of termination without just or
valid cause?

Under the 2009 Serrano doctrine, an illegally dismissed OFW is entitled to all the salaries for the
entire unexpired portion of their employment contracts, irrespective of the stipulated term or
duration thereof.
 Note: Section 10, paragraph 5 of RA 8042 was declared unconstitutional in the case of Serrano v.
Gallant Maritime Services, Inc, G.R. No. 167614, dated March 24, 2009, the underlined phrase
provides:

“In case of termination of overseas employment without just, valid or authorized cause
as defined by law or contract, or any unauthorized deductions from the migrant
worker's salary, the worker shall be entitled to the full reimbursement of his placement
fee and the deductions made with interest at twelve percent (12%) per annum, plus
his salaries for the unexpired portion of his employment contract or for three (3)
months for every year of the unexpired term, whichever is less.”

However, R.A. No. 10022 (March 8, 2010), which amended R.A. No. 8042 (Migrant Workers and
Overseas Filipinos Act of 1995), has replicated and re-enacted the same unconstitutional provision
exactly as above quoted.

Nonetheless, the re-enactment of Section 10 (5) of R.A. No. 8042 in RA No. 10022 cannot cure its
unconstitutionality. A law or provision of law that was already declared unconstitutional remains as
such unless circumstances have changed as to warrant a reverse conclusion (Sameer vs. Cabiles,
G.R. No. 170139, August 5, 2014).

6. Ban on direct hiring, exceptions

30. What are the exceptions on Ban on Direct Hiring?

The ban on direct hiring does not apply to:

a. Direct-hiring by members of the diplomatic corps, international organizations and such other
employers as may be allowed by the Secretary of Labor (Art. 18, Labor Code, as amended);
b. Name hire and missionaries actually engaged in missionary work ( Poquiz, Labor Standards and
Social Legislation with Notes and Comments, Vol. 1, 2018, p. 89).

31. Who is a Name Hire?

A Name Hire pertains to individuals who are able to secure contracts for overseas employment on
their own efforts and representation without the assistance or participation of any agency. Their
hiring, nonetheless, should be processed through the POEA (Part III, Rule III of the POEA Rules
Governing Overseas Employment as amended in 2002).

III. LABOR STANDARDS

1. Employer-employee relationship; Test to determine existence

36. What are the accepted tests to determine the existence of an employer-employee
relationship?

The accepted tests to determine the existence of an employer-employee relationship are the four-
fold test and the two-tiered test.

a. the selection and engagement of the employee;

b. the payment of wages;
c. the power of dismissal; and
d. the power to control the employee's conduct, or the so-called "control test." (most important
and crucial)
 Here, the "control test" is the most important and crucial among the four tests (Maricalum Mining
Corporation vs. Florentino, GR Nos. 221813 & 222723, July 23, 2018).

The two-tiered test is composed of:

a. The putative employer’s power to control the employee with respect to the means and methods
by which the work is to be accomplished (control test); and
b. The underlying economic realities of the activity or relationship (broader economic reality test).
(Francisco vs. NLRC, G.R. No. 170087, August 31, 2006).

3. Employee vs. independent contractor

41. Distinguish employees from independent contractors.

Independent Contractors Employee

Definition An independent contractor Employee includes any person in the

undertakes to perform work on its employ of an employer but is not
own account, under its own limited to the employees of a particular
responsibility and according to its employer unless the Labor Code so
own manner and method, free from explicitly states. It shall also include any
the control and direction of the individual whose work has ceased as a
principal. (PAL vs. NLRC, G.R. No. result of or in connection with any
125792, November 9, 1998) current labor dispute or because of any
unfair labor practice, provided, that he
has not obtained any other substantially
equivalent and regular employment.
(Art. 219[f], Labor Code, as amended).

Employer- No employment relationship arises Employees under fixed-term contracts

Employee between the independent contractor cannot be independent contractors
Relationship and the principal (PAL vs. NLRC, because in fixed-term contracts, an EER
G.R. No. 125792, November 9, exists. (Fuji Television Network, Inc. vs.
1998). Espiritu, G.R. No. 204944-45,
December 3, 2014).

Governing Their contracts are governed by the Their contracts are governed by labor
Law law on contracts and other law and social legislation. (Art. 6, Labor
applicable law. (Fuji Television Code, As amended)
Network, Inc. vs. Espiritu, supra).

A. Conditions of employment

1. Covered employees/workers

42. Who are covered and not covered by the provisions on conditions of employment (Book
III) under the Labor Code?

a. Government employees;
b. Managerial employees;
c. Field Personnel
d. Members of the family of the employer who are dependent on him for support
 e. Workers paid by results;
f. Persons in the personal service of another
g. (Art. 82, PD 442 as amended)
h. Domestic Helpers (Kasambahay Law)
i. Family drivers (Atienza v. Saluta, G.R. No. 233413, June 17, 2019)

2. Hours of work

a. Normal hours of work; hours worked

43. What constitutes compensable hours worked?

a. All time during which an employee is required to be in duty or to be at the employer’s premise
or to be at a prescribed workplace; and
b. All time during which an employee is suffered or permitted to work.

Rest periods of short duration during working hours shall be counted as hours worked. (Art. 84,
Labor Code, as amended).

b. Meal periods

46. When may an employer prescribe a shortened meal period?

An employer may prescribe a shorter meal period of at least 20 minutes in the following instances:
a. Where the work is non-manual in nature or does not involve strenuous physical exertion;
b. Where the establishment regularly operates not less than 16 hours a day;
c. In cases of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installation to avoid serious loss which the employer would
otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods (Sec. 7, Rule III, Rules
Implementing the Labor Code).

47. May a meal break be shortened to less than twenty (20) minutes?

No, the law does not allow the mealtime to be shortened to less than twenty (20) minutes. If so
reduced, the same shall no longer be considered as mealtime but merely as rest period or coffee
break and therefore becomes compensable working time. (Section 7, Rule 1, Book III, Rules to
Implement the Labor Code)

c. Night-shift differential

49. How is night shift differential computed?

Ordinary Rest Day, Special Day, or

Regular Holiday

Where night shift Plus 10% of the basic hourly Plus 10% of basic hourly rate on a
(10pm to 6am) work is rate or total of 110% of the rest day, special day or regular
regular work basic hourly rate holiday or total of 110% of the
basic hourly rate
 Where night shift Plus 10% of the overtime Plus 10% of the overtime hourly
(10pm to 6am) work is hourly rate on an ordinary day rate on a rest day or special day or
overtime or a total of 110% of the regular holiday
overtime hourly rate on an
ordinary day

For overtime work in Plus 10% of 125% of basic Plus 10% of 130% of regular
the night shift hourly rate or a total of 110% hourly rate on said days or a total
of 125% of basic of 110% of 130% of the applicable
Note: Since overtime hourly rate. regular hourly rate. (2019
work is not usually Handbook on Workers Statutory
eight (8) hours, the Monetary Benefits by DOLE)
compensation for
overtime night shift
work is also computed
on the basic of the
hourly rate.

d. Overtime work

50. Distinguish premium pay from overtime pay.

Premium Pay Overtime Pay

Pertains to additional compensation required Pertains to additional compensation for the

by law for work performed within 8 hours on overtime work in an amount equivalent to his
non-working days, such as rest days and regular wage plus at least 25% thereof. It is the
holidays. (2022 Handbook on Workers amount obtained by multiplying the overtime
Statutory Monetary Benefits by DOLE) hourly rate by the number of hours worked in
excess of eight (8) hours. (Chan, Law on Labor
Standards and Social Legislation, 2019 p. 411)

51. What is the distinction between night shift differential pay and overtime pay?

Night Shift Differential Pay Overtime Pay

It refers to the additional compensation of It refers to an additional compensation for work

ten percent (10%) of an employee’s regular performed beyond eight (8) hours a day. (Art. 87,
wage for each hour of work performed Id).
between 10 p.m and 6 a.m. (Art. 86, Labor
Code, as amended)

Applicable only for employees regularly Applicable to employees working on a day shift
assigned to night work. or night shift.

Night differential is 10% of such hourly Overtime pay is 25% additional to the employee's
wage without overtime pay. (Art. 86, Id) hourly regular wage. (Art. 87, Id).
52. What are the various overtime rates?

OVERTIME during RATE

Regular Workdays Regular basic wage+ 25% of the basic hourly rate (Art. 87,
Labor Code, as amended).

Regular/Legal Holiday wage rate (200%) + 30% of hourly regularly or legal

Holiday holiday rate (Article 94 (b), Id).

Rest day or Special Rest Days/Special Holiday wage rate (130%) + 30% of hourly
Holidays rest day or special holiday rate (Art. 93 (a), Id).

Scheduled Rest Day Holiday wage rate (150%) + 30% holiday hourly rate (Art. 93
which is also Special (c), Id).
Holiday

Scheduled Rest Day Holiday wage rate (260%) + 30% of holiday hourly rate
which is also
Regular Holiday

53. When may overtime pay be "built into" an employee's salary?

1. When there is a clear written agreement knowingly and freely entered by the employee; and
2. The mathematical result shows that the agreed legal wage rate and the overtime pay,
computed separately, are equal to or higher than the separate amounts legally due (Damasco
vs. NLRC, G.R. 115755, December 4, 2000).

55. When may the employer legally compel his workers to render overtime work even
against their will?

The employer may legally compel his workers to render overtime work in the following instances:
a. When the country is at war or when any other national or local emergency has been declared
by the National Assembly or the Chief Executive;
b. When overtime work is necessary to prevent loss of life or property or in case of imminent
danger to public safety due to actual or impending emergency in the locality caused by serious
accident, fire, floods, typhoons, earthquake, epidemic or other disasters or calamities;
c. When there is urgent work to be performed on machines, installations, or equipment, or in
order to avoid serious loss or damage to the employer or some other causes of similar nature
d. When the work is necessary to prevent loss or damage to perishable goods.
e. When the completion or continuation of work started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer; and
f. When overtime work is necessary to avail of favorable weather or environmental conditions
where performance or quality of work is dependent thereon. (Art. 89, Labor Code, as amended)

57. May an employee validly refuse to render emergency overtime work?

No. When an employee refuses to render emergency overtime work under any of the conditions
stated in Article 89 of Labor Code, he may be dismissed on the ground of insubordination or willful
disobedience of the lawful order of the employer. (Realda vs. New Age Graphics, G.R. No. 192190,
April 25, 2012; Chan, Pre-week notes on Labor Law, 2018, p. 17)
 e. Compressed work week, flexible work arrangement, alternative work
arrangements, telecommuting program

59. Under what conditions may a "compressed work week" (work week less than 6 days;
work hours of 40/48 hrs total) schedule be legally authorized as an exception to the
"eight-hour a day" requirement under the Labor Code?

1. It must be a result of an express and voluntary agreement;

2. There is no diminution in their weekly or monthly take home pay or fringe benefits;
3. The benefits are more than or at least commensurate or equal to what is due the employees
without the compressed work week;
4. Overtime pay will be due and demandable when they are required to work on those days which
should have ceased to be working days because of the compressed work week schedule;
5. No strenuous physical exertion or that they are given adequate rest periods;
6. In firms using substances, chemicals, and processes where prolonged exposure to which may
pose hazards to employees’ health and safety, there must be a certification from an accredited
health and safety organization or practitioner;
7. Employer shall notify DOLE;
8. It must be for a temporary duration (DOLE Advisory No. 02-04, December 2, 2004; Chan, Law
on Labor Standards and Social Legislation, 2019 p. 388)

62. What is flexible working hours?

Refers to alternative arrangements or schedules other than the traditional or standard work hours,
workdays, and workweek (Department Advisory No. 4, Guidelines on the Implementation of Flexible
Work Arrangement, Series of 2010).

Note: Under R.A. No. 8972, otherwise known as “The Solo Parents’ Welfare Act of 2000”, solo
parents are allowed to work on a flexible schedule: Provided, that the same shall not affect
individual and company productivity: Provided, further, That any employer may request exemption
from the above requirements from the DOLE on certain meritorious grounds (Sec. 6, RA 8972, Solo
Parents Welfare Act).

63. What is Telecommuting?

Telecommuting refers to a work arrangement that allows an employee in the private sector to work
from an alternative workplace with the use of telecommunication and/or computer technologies.
(DOLE DO No. 202 s. 2019 or the IRR of R.A. No. 11165, and R.A. No. 11165 or the Telecommuting
Act)

64. What are the conditions for a telecommuting work arrangement to be valid?

For a telecommuting program to be valid, it shall:

1. not be less than the minimum labor standards set by law;
2. include compensable work hours, minimum number of work hours, overtime, rest days;
and
3. include entitlement to leave benefits, social welfare benefits, and security of tenure. (Ibid.).
 3. Rest periods

66. When may an employer require an employee to work on a rest day?

a. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or
imminent danger to public safety;
b. In case of urgent work to be performed on the machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise suffer;
c. In the event of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measure;
d. To prevent loss or damage to perishable goods;
e. Where the nature of the work requires continuous operation and the stoppage of work may
result in irreparable injury or loss to the employer; and
f. Under other circumstances analogous or similar to the foregoing as determined by the
Secretary of Labor and Employment (Art. 92, Labor Code, as amended)

4. Holidays

70. What are the regular and special holidays?

Regular Holidays Nationwide Special Holidays

(Holiday Pay/200% DWR) (Premium Pay/130%DWR)

EDSA People Power February 25

New Year’s Day January 1
Anniversary

Araw ng Kagitingan April 9 Ninoy Aquino Day August 21

Maundy Thursday Movable Date All Saints’ Day November 1

Feast of Immaculate December 8

Good Friday Movable Date
Conception of Mary

Labor Day May 1 Last Day of the Year December 31

EDSA People Power February 25

Independence Day June 12
Anniversary

National Heroes Day August 31 Ninoy Aquino Day August 21

Bonifacio Day November 30

Christmas Day December 25

Rizal Day December 30

Eidul Fitr Movable Date

Eidul Adha Movable Date

71. What are the effects of absences on holiday pay?

The effects of absences on holiday pay are as follows:

a. If an employee is on leave of absence with pay, he is entitled to holiday pay.
b. If an employee is on leave of absence without pay on the day immediately preceding a regular
holiday, he is not entitled to holiday pay.
c. If the day immediately preceding the holiday is a non-working day or the scheduled rest day
of an employee, he is not considered to be on leave of absence on that day, in which case he
shall be entitled to holiday pay if the employee should work on the day immediately preceding
the non-working day or rest day.
d. If there are two (2) successive regular holidays like Holy Thursday and Good Friday, an
employee is not entitled to holiday pay for both holidays if he absents himself from work
without pay on the day immediately preceding the first regular holiday. But if he works on the
first holiday, he is entitled to holiday pay on the second holiday (Sec. 6 and 10, Rule IV, Book
III, Rules to Implement the Labor Code).

Note: These rules only apply for daily wage rate paid employees and not to monthly paid
employees.

5. Service charges

74. How are service charges distributed?

All service charges collected by hotels, restaurants, and similar establishments shall be distributed
completely and equally among the covered workers except managerial employees. In other words,
rank-and-file employees of hotels and restaurants are now entitled to receive service charge "in
full" instead of just getting 85% of the collection (R.A. No. 11360, Sec. 1, August 7, 2019).

6. 13th month pay

76. Who are entitled to the 13th month pay?

All rank-and-file employees, regardless of their designation or employment status, who have
worked at least one month during the calendar year are entitled to the thirteenth month pay (Sec.
4, Rules and Regulations Implementing Presidential Decree No. 851).

77. Are domestic workers entitled to receive 13 th month pay?

Yes. A Kasambahay who has rendered at least one (1) month of service is entitled to a thirteenth-
month pay which shall not be less than one-twelfth (1/12) of his/her total basic salary earned in
a calendar year (Sec. 8, Rule IV, Implementing Rules and Regulations of Republic Act No. 10361).

B. Wages

1. Prohibitions regarding wages

82. What are the prohibitions regarding wages?

The following are the prohibitions regarding wages:

a. Interference by the employer with the freedom of any employee to dispose of his wages (Art.
112, Labor Code, as amended);
 b. Requiring deposits from workers from which deductions shall be made for the reimbursement
of loss or damage to tools, materials or equipment supplied by the employer except for trades
or businesses where such deposits are necessary (Art. 114, Ibid).
c. Withholding of wages and kickbacks (Art. 116, Ibid).
d. General Rule: The laborer’s wages shall not be subject to execution or attachment.
e. Exceptions: for debts incurred for food, shelter, clothing, and medical attendance (Art. 1706 &
1708, NCC).
f. Deduction of wages as consideration of a promise of employment or retention in employment
(Art. 117, Ibid).
g. Refusal to pay or reduction of wages and benefits, discharge or discrimination against any
employee as retaliatory measure against any employee who has filed any complaint or
instituted any proceedings against his employer (Art. 118, Ibid).
h. It shall be unlawful for any person to make any statement, report, or record filed or kept
pursuant to the provisions of this Code knowing such statement, report or record to be false
in any material respect (Art. 119, Ibid).
i.
2. Facilities vs. Supplements

83. What are the distinctions between facilities and supplements?

FACILITIES SUPPLEMENTS

Definition

Items of expense necessary for the laborer's Extra remuneration or special benefits or
and his family's existence and subsistence. It articles or services or tools of the trade given
includes articles or services for the benefit of to or received by laborers over and above
the employee or his family; EXCLUDES tools of their ordinary earning or wages (Id).
the trade or articles or service primarily for the
benefit of the Employer (Sec. 5, Rule 7-A, Book
III, IRR).

Rule on Deductibility

May be charged to or deducted from wages May not be charged from wages

Whether it is part of the basic wage of the employee

Yes. No.

84. What are the requirements for deducting value of Facilities?

a. Proof must be shown that such facilities are customarily furnished by the trade;
b. The provision of deductible facilities must be voluntarily accepted in writing by the employee;
and
c. Facilities must be charged at reasonable value (SLL International Cable Specialists vs. NLRC,
G.R. No. 17216, March 2, 2011).
 4. Minimum wage

85. Who are exempt from minimum wage coverage?

The following are not subject to the minimum wage law:

a. Persons employed in the personal service of another, including family drivers (Sec. 4[c], R.A.
No. 6727) EXCEPT kasambahays;
b. Retail/service establishments regularly employing not more than ten (10) workers; (Ibid).
c. Employees of Barangay Micro Business Enterprises (Sec. 8, R.A. No. 9178).

5. Wage distortion

86. What is wage distortion?

Wage distortion refers to a situation where an increase in the prescribed wage rates results in the
elimination or severe contraction of intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service and other logical
bases of differentiation. (Art. 124, Labor Code, as amended)

87. In what instances do labor arbiters have jurisdiction over wage distortion cases?

In unorganized establishments when the same is not voluntarily resolved by the parties before the
NCMB (Art. 124, Labor Code, as amended).

88. What procedural remedies are open to workers who seek correction of wage
distortion?

The Procedural Remedies of Wage Distortion disputes are provided in the Labor Code, as follows:

1. Organized establishment - follow the grievance procedure as provided for in the CBA, ending
in voluntary arbitration.
2. Unorganized establishments - employer and workers, with the aid of the NCMB shall endeavor
to correct the wage distortion, and if they fail, to submit the issue to the NLRC for compulsory
arbitration. (Art. 124, Labor Code, as amended)

6. Non-diminution of benefits

89. What is the principle of non-diminution of benefits?

The Non-Diminution Rule under Article 100 of the Labor Code explicitly prohibits employers from
eliminating or reducing the benefits already enjoyed by their employees (Wesleyan University-
Philippine vs. Wesleyan University-Philippines Faculty and Staff Association, G.R. No. 181806,
March 12, 2014).

90. What is the rule regarding prohibition on deductions from wages?

As a general rule, an employer is prohibited from making any deductions from the wages of his
employees. However, the law provides for exceptions:
 a. Deduction to recompense the employer for the amount paid by him as insurance premium in
favor of the employee;
b. For union dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker concerned;
c. Where the employer is authorized by law or regulations issued by the Secretary of Labor (Art.
113, Labor Code, as amended).

Note: The Civil Code allows deductions to be made for debts that are due and demandable (Art.
1706, NCC).

C. Leaves

1. Service incentive leave

91. What is Service Incentive Leave?

Service Incentive Leave is a five (5)-day leave with pay for every employee who has rendered at
least one (1) year of service whether continuous or broken (Art. 95, Labor Code, as amended).

92. A, the personal cook in the household of X, filed a monetary claim against her employer,
X, for denying her service incentive leave pay. X argued that A did not avail of any
service incentive leave at the end of her one (1) year of service and hence, not entitled
to the said monetary claim.

(a) Is the contention of X tenable?

No. The Domestic Workers Act defines a “kasambahay” as any person engaged in domestic
work within an employment relationship such as a cook or gardener, among other things.
Under the same act, a “kasambahay” is entitled to service incentive leave which shall be
convertible to cash if unused. Mrs. B, being a personal cook, is considered a “kasambahay”
who has a service incentive leave that is convertible to cash if unclaimed at the end of her one
year of service (Art. 1, Section 4 [d], R.A. No. 10361)

(b) Assuming that A is instead a clerk in X’s company with at least 30 regular
employees, will her monetary claim prosper?

Yes. In Book Three, Rule V, Section 5 of the Omnibus Rules, service incentive leave is
commutable to money if not used or exhausted at the end of the year. As an employee in a
private establishment regularly employing at least ten employees and there being no issue in
prescription and mention that her claim is an excess grant of benefit, Mrs. B is entitled to the
monetary value of her service incentive leave since it was not exhausted at the end of the year,
and her monetary claim will prosper.

2. Expanded Maternity leave

93. What is the duration of expanded maternity leave?

The expanded maternity leave grants one hundred five (105) days maternity leave with full pay
and an option to extend for an additional thirty (30) days without pay. In case the worker qualifies
as a solo parent under R.A. No. 8972 or the "Solo Parents’ Welfare Act", the worker shall be granted
an additional fifteen (15) days maternity leave with full pay. In cases of miscarriage or emergency
termination of pregnancy, sixty (60) days maternity leave with full pay shall be granted. (Sec. 3,
Rule IV; Sec. 1, Rule V, Implementing Rules and Regulations of R.A. No. 11210)
 3. Paternity leave

94. Who may avail of paternity leave benefit?

Ever married male employee in the private and public sectors shall be entitled to a paternity leave
of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with whom
he is cohabiting. The male employee applying for paternity leave shall notify his employer of the
pregnancy of his legitimate spouse and the expected date of such delivery (Sec. 2, R.A. No. 8187).

4. Parental leave for solo parents

95. How many days may be availed of by a solo parent as parental leave?

The parental leave shall not be more than seven (7) working days every year to a solo parent who
has rendered service of at least one (1) year, to enable him/her to perform parental duties and
responsibilities where his/ her physical presence is required. This leave shall be non-cumulative
(Sec. 8, R.A. No. 8972, Parental Leave for Solo Parents).

5. Leave benefits for women workers under R.A. No. 9710 and R.A. No. 9262

96. Who are entitled to leave benefits under RA 9710?

a. She has rendered at least six (6) months continuous aggregate employment service for the
last twelve (12) months prior to surgery;
b. She has filed an application for special leave in accordance with [Section 3, D.O. No. 112]
hereof;
c. She has undergone surgery due to gynecological disorder as certified by a competent
physician (Sec. 2, D.O. No. 112).

97. How may the VAWC leave of up to ten (10) days be availed of?

The victim-employee has to submit a certification from the Punong Barangay or kagawad or
prosecutor or the clerk of court that an action under R.A. 9262 has been filed and is pending
(Sec. 42, IRR of R.A. No. 9262).

D. Special groups of employees

1. Women

a. Discrimination

98. What are considered acts of discrimination against women employees?

The following are acts of discrimination against women employees:

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 (Art. 133, Labor
Code, as amended).
 b. Stipulation against marriage

99. Is a company policy requiring an employee to resign should he/she marry a co-
employee valid?

No. To justify a bona fide occupational qualification, the employer must prove two factors: (1)
that the employment qualification is reasonably related to the essential operation of the job
involved; and (2) that there is a 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 this case,
there is no reasonable business necessity. (Star Paper Corporation vs. Simbol, G.R. No. 164774,
April 12, 2006).

100. May an employer validly require an employee to resign in case of marriage to a

competitor’s employee?

Yes. The employer has a right to guard its trade secrets, manufacturing formulas, marketing
strategies and other confidential programs and information from competitors. The prohibition
against personal or marital relationships with employees of competitor companies is reasonable
because relationships of that nature might compromise the interests of the employer
(Association of Detailman-PTGWO vs. Glaxo Wellcome Philippines, Inc., G.R. No. 162994,
September 17, 2004). Such prohibition is compliant with the Reasonable Business Necessity
Rule because the policy seeks to avoid conflict of interest on the employee’s part.

c. Prohibited acts

2. Minors (R.A. No. 7610, as amended by R.A. No. 9231)

a. Child labor vs. working child

101. Who is a “working child”?

A “working child” refers to any person less than eighteen (18) years of age engaged as follows:
a. When the child is below eighteen (18) years of age, in work or economic activity that is not
“child labor;”
b. When the child is below fifteen (15) years of age:
i. In work where s/he is directly under the responsibility of his/her parents or legal
guardian and where only members of the child’s family are employed; or
ii. In “public entertainment or information” which refers to artistic, literary, and cultural
performances for television show, radio program, cinema or film, theatre, commercial
advertisement, public relations activities or campaigns, print materials, internet, and
other media (Sec. 2, R.A. No. 9231).

b. Allowed working hours and industries of a working child

102. How many hours is allowed as hours of work of a working child?

The following hours of work shall be observed for any child allowed to work under RA 9231:

a. For a child 15 years of age, but below 18, the hours of work shall not be more than eight
(8) hours a day, and in no case beyond 40 hours a week; and
 b. No child 15 years of age but below 18 shall be allowed to work between ten o’clock in the
evening and six o’clock in the morning of the following day (D.O 65-04 implementing R.A.
No. 9231).

103. What consists of the working hours of a child?

The term “hours of work” includes the following:

a. all time during which a child is required to be at a prescribed workplace; and
b. all time during which a child is suffered or permitted to work.

Note: Rest periods of short duration during working hours shall be counted as hours worked
(Sec. 3, R.A. No. 9231).

c. Prohibited acts

104. What acts are prohibited in relation to employment of minors?

No child shall be engaged in the worst forms of child labor. The phrase "worst forms of child
labor" shall refer to any of the following:

1. All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or
practices similar to slavery such as sale and trafficking of children, debt bondage and
serfdom and forced or compulsory labor, including recruitment of children for use in armed
conflict; or
2. The use, procuring, offering or exposing of a child for prostitution, for the production of
pornography or for pornographic performances; or
3. The use, procuring or offering of a child for illegal or illicit activities, including the
production and trafficking of dangerous drugs and volatile substances prohibited under
existing laws; or
4. Work which, by its nature or the circumstances in which it is carried out, is hazardous or
likely to be harmful to the health, safety or morals of children, such that it:
a. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human
being; or
b. Exposes the child to physical, emotional or sexual abuse, or is found to be highly
stressful psychologically or may prejudice morals; or
c. Is performed underground, underwater or at dangerous heights; or
d. Involves the use of dangerous machinery, equipment and tools such as power-driven
or explosive power-actuated tools; or
e. Exposes the child to physical danger such as, but not limited to the dangerous feats of
balancing, physical strength or contortion, or which requires the manual transport of
heavy loads; or
f. Is performed in an unhealthy environment exposing the child to hazardous working
conditions, elements, substances, co-agents or processes involving ionizing, radiation,
fire, flammable substances, noxious components and the like, or to extreme
temperatures, noise levels, or vibrations; or
g. Is performed under particularly difficult conditions; or"
h. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans,
nematodes and other parasites; or
i. Involves the manufacture or handling of explosives and other pyrotechnic products
(Section 12-D, R.A. 7610, as amended by R.A. 9231).
5. No child shall be employed as a model in any advertisement directly or indirectly promoting
alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form
of violence or pornography (Sec. 14, R.A. No. 7610, as amended by R.A. No. 9231).
 3. Kasambahay (R.A. No. 10361)

105. Who is a domestic worker or kasambahay?

A domestic worker or kasambahay refers to any person engaged in domestic work within an
employment relationship, whether on a live-in or live-out arrangement, such as, but not limited
to, general househelp, “yaya,” cook, gardener, or laundry person, but shall exclude service
providers, family drivers, children who are under foster family arrangement or any person who
performs domestic work only occasionally or sporadically and not on an occupational basis
(Sec. 4 [d], R.A. No. 10361).

106. Who shall be liable for any non-payment of wages during temporary assignment of
a Kasambahay in another household?

The other household where the Kasambahay is temporarily assigned is solidarily liable with the
original employer for any non-payment of wages during temporary assignment (Ibid.).

107. Are domestic workers entitled to receive Social Security benefits?

Yes. A Kasambahay who has rendered at least one (1) month of service shall be covered by
the Social Security System (SSS), Employees Compensation Commission (ECC), Philippine
Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund or Pag-IBIG,
and shall be entitled to all the benefits in accordance with their respective laws, rules and
regulations (Sec. 9, Rule IV, Ibid.).

4. Homeworkers

108. How is Industrial Homework different from Regular Factory Production?

An “Industrial Homework” differs from Regular Factory Production principally in that, it is a

decentralized form of production where there is ordinarily very little supervision or regulation
methods of work (Sec. 2 [a], Rule XIV of the Rules Implementing Book III of the Labor Code
on Employment of Homeworkers).

109. What are the prohibitions for homework?

No homework shall be performed on the following:

a. Explosives, fireworks and articles of like character;
b. Drugs and poison; and
c. Other articles, the process of which requires exposure to toxic substances (Sec. 13, Rule XIV
of the Rules Implementing Book III of the Labor Code on Employment of Homeworkers) .

5. Night workers

110. Who is a night worker?

A night worker pertains to any employed person whose work covers the period from 10 o’clock
in the evening to 6 o’clock the following morning provided that the worker performs not less
than seven (7) consecutive hours of work (R.A. 10151; Art. 154, Labor Code, as amended).
111. How are night workers compensated?

The nightworkers’ compensation shall include but not be limited to working time pay and
benefits under the Labor Code, as amended and under existing laws, such as service incentive
leave, rest day, night differential pay, 13th month pay, and other benefits as provided for by
law, company policy or CBA (Sec. 9, Rule XV, Book III, Omnibus Rules Implementing the Labor
Code as per DO No. 112-12 Series of 2012; Poquiz, Labor Standards and Social Legislations with
Notes and Comments, 2018 Ed., p468). The compensation for night workers in the form of
working time, pay or similar benefits shall recognize the exceptional nature of night work (Art.
159, R.A. 10151).

6. Persons with Disabilities

b. Incentives for employers

112. What are the financial incentives given to an employer in relation to employment of
persons with disabilities?

The financial incentive of an employer for employing disabled persons is the additional deduction
from its gross income equivalent to 25% of amount paid as salaries to persons with disability
(Sec.8[b], Chapter I, Title II, R.A. No. 7277).

E. Sexual Harassment in the work environment

1. Anti-Sexual Harassment Act (R.A. No. 7877) and 2. Safe Spaces Act (RA 11313)

113. What are the distinctions between Sexual Harassment under RA 7877 or the Anti-
Sexual Harassment Act of 1995 and under RA 11313 or Safe Spaces Act of 2019?

R.A. No. 7877 or Anti-Sexual R.A. No. 11313 or Safe Spaces Act of
Harassment 2019
Act of 1995

As to gravamen of the offenses punished

The abuse of one’s authority, influence, or The act of sexually harassing a person on the
moral ascendancy so as to enable the sexual basis of his/her sexual orientation, gender
harassment of a subordinate (Escandor vs. identity and/or expression (Escandor vs.
People, G.R. No. 211962, July 6, 2020). People, G.R. No. 211962, July 6, 2020).

Acts penalized in general

There is demand, request or otherwise The gender-based sexual harassment, and is

requires any sexual favor from the other in found on, among others, the recognition that
a work-related or employment environment “both men and women must have equality,
(Sec. 3). security and safety not only in private, but also
on the workplaces (Escandor vs. People, G.R.
No. 211962, July 6, 2020).

How committed

The offender demands, requests or The crime of gender-based sexual harassment

 R.A. No. 7877 or Anti-Sexual R.A. No. 11313 or Safe Spaces Act of
Harassment 2019
Act of 1995

otherwise requires any sexual favor: in the workplace includes the following:

1) As a condition in the hiring or in the a) An act or series of acts involving any

employment, re-employment or unwelcome sexual advances, requests
continued employment of said or demand for sexual favors or any act
individual, or in granting said of sexual nature, whether done
individual favorable compensation, verbally, physically or through the use
terms of conditions, promotions, or of technology such as text messaging
privileges; or the refusal to grant or electronic mail or through any other
the sexual favor results in limiting, forms of information and
segregating or classifying the communication systems, that has or
employee which in any way would could have detrimental effect on the
discriminate, deprive or diminish conditions of an individual’s
employment opportunities or employment or education, job
otherwise adversely affect said performance or opportunities;
employee; b) A conduct of sexual nature and other
2) The above acts would impair the conduct-based on sex affecting the
employee’s rights or privileges dignity of a person, which is
under existing labor laws; or unwelcome, unreasonable, and
3) The above acts would result in an offensive to the recipient, whether
intimidating, hostile, or offensive done verbally, physically or through
environment for the employee (Sec. the use technology such as text
3[a]). messaging or electronic mail or
through any other forms of information
and communication systems;
c) A conduct that is unwelcome and
pervasive and creates an intimidating,
hostile or humiliating environment for
the recipient (Sec. 16).

Committed by whom

The employer, employee, manager, Can be committed between peers and those
supervisor, agent of the employer, teacher, committed to a superior officer by a
instructor, professor, coach, trainor, or any subordinate, or to a teacher by a student, or to
other person who has the authority, a trainer by a trainee (Sec. 16 [c]).
influence, or moral ascendancy over another
(Sec. 3).

As to setting

The offense may only be committed in a The crime is committed in a workplace

work-related

Liability of employers
 R.A. No. 7877 or Anti-Sexual R.A. No. 11313 or Safe Spaces Act of
Harassment 2019
Act of 1995

The employer or head of office, educational In addition to liabilities for committing acts of
or training institution shall be solidarily liable gender-based sexual harassment, employers
for damages arising from the acts of sexual may also be held responsible for:
harassment committed in the employment,
education or training environment if the a) Non-implementation of their duties
employer or head of office, educational or under Sec. 17; or
training institution is informed of such acts b) Not taking action on reported acts of
by the offended party and no immediate gender-based sexual harassment
action is taken (Sec. 5). committed in the workplace (Sec. 19)

Prescriptive period

3 years (Sec. 7). 5 years (Sec. 36 [d]).

IV. SOCIAL WELFARE LEGISLATION

A. SSS Law (R.A. No. 8282)

1. Coverage and Exclusions

114. Who are compulsorily covered by SSS?

FORMAL SECTOR SELF-EMPLOYED SECTOR

a. A private employee, whether a. All Self-employed professionals who
permanent, temporary, or have their own business offices;
provisional, who is not over b. Partners, single proprietors of
60 years of age (Chan, Bar business and Directors or Trustees
Reviewer on Labor Law, of corporations duly registered with
2017, p. 407); appropriate government agencies;
b. A domestic helper or c. Actors, actresses, directors,
kasambahay who is not over scriptwriters and news
60 years of age, with a correspondents who do not fall
monthly income of not less within the definition of the term
than P1,000.00 and who has ―employee‖ in Sec. 8(d) of the SSS
rendered at least one month Law;
of service [R.A. 8282 (Sec. d. Professional athletes, coaches,
9), in relation to R.A. trainers and jockeys;
10361(Sec. 30)]; e. Individual farmers and fishermen;
c. An employee of a foreign f. Workers in the informal sector such
government, international as market and ambulant vendors,
organization or their wholly- watch-your-car-boys, transport
owned instrumentality based workers and those similarly situated;
in the Philippines, which g. Contractual and job order personnel
entered into an engaged by the government through
administrative agreement a Contract of Service and who are
with the SSS for the coverage not coverable under the GSIS Law;
and
 of its Filipino workers [R.A. h. Any other Self-employed person as
8282, Sec. 8(j)(4)]; determined by the Social Security
d. The parent, spouse or child Commission (SSC) under such rules
below 21 years old of the and regulations that it may prescribe
owner of a single (2017 SSS Guidebook, p. 5)
proprietorship business
(Chan, Bar Reviewer on
Labor Law, 2017, p. 407);
and
e. A Filipino seafarer, upon
signing of the standard
employment contract and
actual deployment by the
manning agency and the
foreign principal, who are
considered as the employers
(2017 SSS Guidebook, p.4).

115. Who may be covered by the SSS on a voluntary basis?

The following may be covered by the SSS on a voluntary basis:

a. A spouse of a member who devotes full time to managing the household and family affairs,
but does not engage in other vocation or employment which is subject to compulsory or
mandatory coverage (Sec. 9 [b], R.A. No. 11199);
b. An OFW upon the termination of his/her employment overseas (Sec. 9-B (f), R.A. No.
11199);
c. A covered employee who has separated from employment who continues to pay his/her
contributions (Sec. 11, R.A. No. 11199); and
d. A self-employed member who realizes no income in any given month who continues to pay
his/her contributions (Sec. 11-A, R.A. No. 11199).

2. Dependents and beneficiaries

116. Who are considered primary beneficiaries under the SSS law?

1. The dependent spouse who has not re-married, cohabited or entered in a “live-in”
relationship before or after the death of the member, and
2. The dependent legitimate, legitimated or legally adopted and illegitimate children. Where
there are legitimate or illegitimate children, the former shall be preferred.

Note: The dependent illegitimate children shall be entitled to fifty percent (50%) of the share
of the legitimate, legitimated or legally adopted children. In the absence of the dependent
legitimate, legitimated or legally adopted children of the member, his/her dependent
illegitimate children shall be entitled to one hundred percent (100%) of the benefits (Sec 8 [k],
R.A 11199).

117. Who are secondary beneficiaries under the SSS law?

1. The dependent parents of the deceased member; and

2. In the absence of dependent parents, any other person/s designated and reported by the
member to the SSS [Sec 8, (k)].
 Note: The person designated by the member shall be someone who has a right to claim for
support from the deceased member under the Family Code of the Philippines, including
dependent children who have reached the age of majority (Rule 12, Sec. 13, IRR RA 11199).

3. Benefits

118. What are the benefits under the SSS Act?

The following are the benefits under the SSS Act:

1. Social Security Benefits
a. Sickness (Sec. 14)
b. Maternity (Sec. 14-A)
c. Dependent‘s Pension (Sec. 12-A)
d. Retirement (Sec. 12-B)
e. Death (Sec. 13)
f. Disability (Sec. 13-A)
g. Funeral Benefit (Sec. 13-B); and
2. Employees’ compensation benefits.

119. Who is eligible for retirement benefits under the SSS Law?

A member who has paid at least 120 monthly contributions prior to the semester of retirement
is eligible for retirement benefits under the SSS Law. Provided that the member is already:
a. 60 years old and already separated from employment or has ceased to be self-employed;
or
b. 65 years old.

Note: The member shall be entitled for as long as he fives to the monthly pension. Provided,
That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum
discounted at a preferential rate of interest to be determined by the SSS. The monthly pension
shall be suspended upon the reemployment or resumption of self-employment of a retired
member who is less than sixty-five (65) years old (Sec 12-B, RA 8282).

120. Is a member who has reached the age of sixty but has not yet paid at least 120
monthly contributions entitled to any benefit?

Yes, a covered member who is sixty (60) years old at retirement and who does not qualify for
pension benefits shall be entitled to a lump sum benefit equal to the total contributions paid
by him and on his behalf. Provided, That he is separated from employment and is not
continuing payment of contributions to the SSS on his own (Sec 12-B, RA 8282).

121. When may death benefits be availed of?

Upon the death of a member who has paid at least thirty-six (36) monthly contributions prior
to the semester of death, his primary beneficiaries shall be entitled to the monthly pension:
Provided, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled
to a lump sum benefit equivalent to thirty-six (36) times the monthly pension (Sec. 13, RA
8282).

Note: If he has not paid the required thirty-six (36) monthly contributions, his primary or
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid to the SSS or twelve (12) times the
monthly pension, whichever is higher (Ibid.).
122. Who is eligible to receive partial or permanent disability benefits?

A member who suffers partial or total permanent disability, with at least one (1) monthly
contribution paid to the SSS prior to the semester of contingency, is qualified (2017 SSS
Guidebook, p.62).

B. GSIS Law (R.A. No. 8291)

1. Coverage and exclusions

123. Who are covered by the GSIS Law?

1. All government personnel, whether elective or appointive, irrespective of status of

appointment, provided they are receiving fixed monthly compensation and have not
reached the mandatory retirement age of 65 years;
2. Those who have reached the retirement age of 65 years or more:
a. An elective official who at the time of election to public office is below 65 years of age
and will be 65 years or more at the end of his term of office, including the period/s of
his re-election to public office thereafter without interruption;
b. Appointive officials who, before reaching the mandatory age of 65, are appointed to
government position by the President and shall remain in government service at age
beyond 65;
c. Contractual employees including casuals and other employees with an employee-
government agency relationship, who are receiving fixed monthly compensation and
are rendering the required number of working hours for the month (Sec. 2, Rule II,
Rules Implementing R.A. No. 8291).

Note: Those who have not reached the age of 65 are required to pay their contributions. While
those who have reached the retirement age of 65 years or more are required to pay both the
life and retirement premiums (Ibid).

124. When does the membership to GSIS become effective?

The effective date of membership shall be the date of the member’s assumption to duty on his
original appointment or election to public office (Sec. 5, Ibid).

125. Who are the special members of GSIS?

The special members of GSIS are the constitutional commissioners and members of the
judiciary, including those with equivalent ranks, who are required by law to remit regular
monthly contributions for life insurance policies to the GSIS in order to answer for their life
insurance benefits defined under RA 8291 (Sec. 2, Rule II, Rules Implementing R.A. No. 8291).

Note: membership is for life insurance purposes only (Ibid).

126. Who are excluded from the compulsory coverage of the GSIS Law?

The following are excluded from the compulsory coverage of the GSIS law:
a. Uniformed personnel of the:
i. Philippine National Police (PNP);
ii. Bureau of Fire Protection (BFP);
 iii. Armed Forces of the Philippines (AFP)
iv. Bureau of Jail Management and Penology (BJMP);
b. Barangay and Sanggunian Officials who are not receiving fixed monthly compensation;
c. Contractual Employees who are not receiving fixed monthly compensation; and
d. Employees who do not have monthly regular hours of work and are not receiving fixed
monthly compensation (Sec. 3, Ibid.)

2. Dependents and beneficiaries

127. Who are the dependents under the GSIS Law?

The following are dependents under the GSIS Law:

a. the legitimate spouse dependent for support upon the member or pensioner;
b. the legitimate, legitimated, legally adopted child, including the illegitimate child, who is
unmarried, not gainfully employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and
c. the parents dependent upon the member for support; (Sec. 2[f], R.A. No. 8291)

128. Who are the beneficiaries under the GSIS Law?

The following are beneficiaries under the GSIS Law:

a. Primary - The legal dependent spouse until he/she remarries and the dependent children;
b. Secondary - The dependent parents and, subject to the restrictions on dependent children,
the legitimate descendants (Section 2 [g][h] R.A. No. 8291).

129. What is gainful occupation under the GSIS Law?

Gainful occupation is any productive activity that provides the member with income at least
equal to the minimum compensation of government employees (Sec. 2[p], R.A. No. 8291).

3. Benefits

130. What are the kinds of benefits under the GSIS Law?

The following are the kinds of benefits under the GSIS Law
a. Compulsory Life Insurance Benefits under the Life Endowment Policy (LEP);
b. Compulsory Life Insurance Benefits under the Enhanced Life Policy (ELP);
c. Retirement Benefits;
d. Separation Benefit;
e. Unemployment Benefit;
f. Disability Benefits;
g. Survivorship Benefits; and
h. Funeral Benefits (Rule IV, Rules Implementing R.A. No. 8291).

131. What are the requirements to be eligible for Retirement Benefits under the GSIS
Law?

The following are the requirements to be eligible for Retirement Benefits under the GSIS Law:
a. The member must have rendered at least fifteen (15) years of service;
b. He/She is at least sixty (60) years of age; and
c. He/She is not receiving a monthly pension benefit from permanent total disability (Sec.
20.1, Ibid).
132. What are the three (3) kinds of disability benefits under the GSIS Law?

The following are the 3 kinds of disability benefits under the GSIS Law:
Total and Permanent Partial and Permanent Temporary and Total

● Complete loss of sight of Complete and permanent loss Impaired physical and/or
both eyes of the use of: mental faculties can be
● Loss of 2 limbs at or ● Any finger rehabilitated and/or
above the ankle or wrist ● Any toe restored to their normal
● Permanent complete ● One arm functions, but such
paralysis of 2 limbs ● One hand disability shall result in
● Brain injury resulting in ● One foot temporary incapacity to
incurable imbecility or ● One leg work or to engage in any
insanity ● One/both ears gainful occupation (Sec.
● Other cases as ● Hearing of one/both 23.2.3, Ibid.).
determined by GSIS ● Ears
(Sec. 16, Rule IV, IRR of ● Sight of one eye
R.A. No. 8291) ● Other cases as
determined by GSIS
(Sec. 17, Ibid.).

C. Limited Portability Law (R.A. No. 7699)

133. What is the Limited Portability Law (RA No. 7699)?

The limited portability law is the law enacted to enable those from the private sector who
transfer to the government service or from the government sector to the private sector to
combine their years of service and contributions which have been credited with the SSS or
GSIS, as the case may be, to satisfy the required number of years of service for entitlement to
the benefits under the applicable laws (Chan, Bar Reviewer in Labor Law 2019, p. 300).

134. Who are covered by RA 7699?

The rules and regulations under RA 7699 shall apply to all worker-members of the Government
Service Insurance System (GSIS) and/or Social Security System (SSS) who transfer from one
sector to another, and who wish to retain their membership in both Systems (Sec. 1, Rule 1,
Rules Implementing RA 7699).

135. What is “portability” as defined in the Limited Portability Law?

Portability refers to the transfer of funds for the account and benefit of a worker who transfers
from one system to the other (Sec. 2[b], RA 7699).

136. What is “totalization” as defined in the Limited Portability Law?

Totalization refers to the process of adding up the periods of creditable services or contributions
under each of the Systems, SSS or GSIS, for the purpose of eligibility and computation of
benefits (Sec. 2[e] Ibid.).
137. What are the instances when totalization is applicable?

The following are the instances when totalization is applicable:

a. If a worker is not qualified for any benefits from both Systems;
b. If a worker in the public sector is not qualified for any benefits from the GSIS; or
c. If a worker in the private sector is not qualified for any benefits from the SSS.

For purposes of computation of benefits, totalization applies in all cases so that the
contributions made by the worker-member in both Systems shall provide maximum benefits
which otherwise will not be available. In no case shall the contribution be lost or forfeited (Sec.
3, Rule V, Rules Implementing RA 7699).

138. What are the benefits under RA 7699?

The following are the benefits granted under RA 7699:

a. Old-age benefit;
b. Disability benefit;
c. Survivorship benefit;
d. Sickness benefit;
e. Medicare benefit, provided that the member shall claim said benefit from the System where
he was last a member; and
f. Such other benefits common to both Systems that may be availed of through totalization
(Section 1 (j), Rule III, Ibid.).

D. Disability and death benefits

1. Labor Code

139. When may disability and death benefits under the Labor Code be availed of?

Under the Labor Code, employees' compensation (EC) benefits are granted to employees or
their dependents for work-connected disability or death, or those resulting from accidents
arising out of and in the course of employment (Art. 166, Labor Code, as amended in rel. to
Sec. 1, Rule III, IRR).

140. What are the types of disabilities compensated under the Labor Code?

a. Temporary Total Disability

- if as a result of the injury or sickness, the employee is unable to perform any gainful
occupation for a continuous period not exceeding 120 days (Art. 197 in rel. to Sec.
2(a), Rule VII, Amended Rules on Employees’ Compensation).
b. Permanent Total Disability
- if as a result of the injury or sickness the employee is unable to perform any gainful
occupation for a continuous period exceeding 120 days (Art. 198 in rel. to Sec. 2(b),
Rule VII, Amended Rules on Employees’ Compensation).
c. Permanent Partial Disability
- if as a result of the injury or sickness the employee suffers a permanent partial loss of
the use of any part of his body (Art. 199 in rel. to Sec. 2(c), Rule VII, Amended Rules
on Employees’ Compensation).
141. What is Employees’ Compensation Program (ECP)?

The ECP is a government program or mechanism designed to provide public and private sector
employees and their dependents with income and other benefits in the event of a work-
connected injury, sickness, disability or death (An Employer’s Guide on the Employees’
Compensation Program, p.1).

142. When is the effective date of the coverage?

Coverage of employers shall take effect on the first day of operation but not earlier than
January 1, 1975. Meanwhile, coverage of employees shall take effect on the first day of
employment (Sec. 6, Ibid.).

143. What are the guidelines that should be observed when a seafarer claims
permanent and total disability benefits?

a. The company-designated physician must issue a final medical assessment on the seafarer's
disability grading within a period of 120 days from the time the seafarer reported to him;
b. If the company-designated physician fails to give his assessment within the period of 120
days, without any justifiable reason, then the seafarer's disability becomes permanent and
total;
c. If the company-designated physician fails to give his assessment within the period of 120
days with a sufficient justification (e.g., seafarer required further medical treatment or
seafarer was uncooperative), then the period of diagnosis and treatment shall be extended
to 240 days. The employer has the burden to prove that the company-designated physician
has sufficient justification to extend the period; and
d. If the company-designated physician still fails to give his assessment within the extended
period of 240 days, then the seafarer's disability becomes permanent and total, regardless
of any justification. (Robelito Malinis Talaroc vs. Arpaphil Shipping Corporation, G.R. No.
223731, August 30, 2017).

144. What are the conditions for compensability of injuries?

a. The employee must have been injured at the place where his work requires him to be;
b. The employee must have been performing his official functions;
c. If the injury was sustained elsewhere, the employee must have been executing an order
for the employer (Poquiz, Labor Standards with Notes and Comments, 2018, p.521).

145. What is the Personal Comfort Doctrine?

The Personal Comfort Doctrine states that the injury of an employee who heeded the “call of
nature” and sustained injuries in the performance of such act is deemed compensable.
Likewise, acts necessary to the health and personal comfort of an employee while at work such
as satisfaction of thirst, hunger, etc. are incidental to employment and injuries sustained
therefrom are held to be compensable as they arose out of or in the course of employment
(Poquiz, Labor Standards with Notes and Comments, 2018, p. 524).

146. When is compensation for injury, sickness, disability or death not allowed under
the ECP?

Compensation shall not be allowed to the employee or his dependents when the injury,
sickness, disability or death was occasioned by any of the following:
a. Employee’s intoxication;
 b. His wilful intent to injure or kill himself or another; or
c. His notorious negligence (Rule IV, Sec.1, 2014 Amended Rules on Employees’
Compensation).

147. Explain the Hinoguin Doctrine.

The Hinoguin Doctrine or the 24-hour doctrine states that for purposes of coverage under the
ECP, a soldier on active duty is really on duty 24 hours a day since he can be called upon
anytime by his superiors, except when he is on vacation leave status, which Sgt. Omalley was
not, at the time of his death. (Hinoguin vs. ECC, G.R. No. 8430, April 17, 1989).

2. POEA-Standard Employment Contract for Seafarers

148. When does the contract between the seafarer and employer commence?

The employment contract between the employer and the seafarer shall commence upon actual
departure of the seafarer from the Philippine airport or seaport in the point of hire and with a
POEA approved contract. It shall be effective until the seafarer’s date of arrival at the point of
hire upon termination of his employment (Sec.2[a] POEA-SEC).

149. What are the requisites for compensability of Injury or Illness under POEA-SEC?

a. The injury must be work-related; and

b. The work-related injury or illness must have existed during the term of the seafarer’s
employment contract (Chan, Labor Law Reviewer, 2019 p.336).

150. Explain the legal significance of the 120-day period whereby the company
physician is required to issue a final and definite assessment on a seafarer's
medical condition as not work-related.

The seafarer is no longer required to present evidence that the illness is work-related and thus
compensable, as the law operates to declare that he is entitled to total and permanent disability
benefits after the company-designated physician fails to issue a final and definite assessment
on the seafarer's medical condition as not being work-related. (Jebsens Maritime, Inc. vs.
Mirasol, G.R. No. 213874, June 19, 2019, J. Caguioa).

151. Explain the legal significance of the 3-day post repatriation medical examination
on the part of the seafarer.

Section 20(A)(3) of the POEA-SEC requires a claiming seafarer to submit himself for medical
examination within a three-day period post repatriation. In case of failure to comply thereto, a
seafarer effectively forfeits his right to claim disability benefits under the POEA-SEC. (Malicdem
vs. Asia Bulk Transport Phils., Inc., G.R. No. 224753, June 19, 2019, J. Caguioa).

V. LABOR RELATIONS

A. Right to self-organization

152. Who are eligible to join, form, or assist labor organizations?

A. In the private sector:

1. All persons employed in commercial, industrial and agricultural enterprises;
2. Employees of government-owned and/or controlled corporations without original
 charters established under the Corporation Code;
3. Employees of religious, charitable, medical or educational institutions, whether
operating for profit or not;
4. Front-line managers, commonly known as supervisory employees
5. Alien employees
6. Working children
7. Homeworkers
8. Employees of cooperatives and
9. Employees of legitimate contractors not with the principals but with the contractors
B. In the public sector
All rank-and-file employees of all branches, subdivisions, instrumentalities, and
agencies of government, including government-owned and/or controlled corporations
with original charters, can form, join or assist employees’ organizations of their own
choosing (Chan, Bar Reviewer on Labor Law 2019, p. 379-380)

153. Who are prohibited to join, form, or assist labor organizations or workers’
associations?

The following are prohibited to join, form, or assist labor organizations:

a. In the private sector
1. Top and middle level managerial employees; and
2. Confidential employees.
b. In the public sector
1. High-level employees whose functions are normally considered as policy-making or
managerial or whose duties are of a highly confidential Nature;
2. Members of the Armed Forces of the Philippines;
3. Police officers;
4. Policemen;
5. Firemen; and
6. Jail guards (Chan, Bar Reviewer on Labor Law 2019, p. 383)

2. Restrictions as to Managerial Employees, Supervisory Employees, Confidential

Employees, Employee-Members of Cooperatives, Alien Employees, and
Government Employees

154. May supervisory employees join labor organizations?

Yes, supervisory employees may join, assist, or form their own collective bargaining unit or
labor organization. However, they shall not be eligible for membership in the collective
bargaining unit of the rank-and-file employees. (Art. 255, Labor Code, as amended).

Note: the rank-and-file union and the supervisor’s union operating within the same
establishment may join the same federation or national union (Ibid.).

155. Are all rank-and-file employees eligible to join a union?

No. As an exception, rank-and-file employees who have access to confidential information

related to labor relations are not eligible to join a union because said employees are considered
as confidential employees. The Labor Code does not directly prohibit confidential employees
from engaging in union activities. However, under the doctrine of necessary implication, the
disqualification of managerial employees equally applies to confidential employees. This
confidential-employee rule justified exclusion of confidential employees because in the normal
 course of their duties, they become aware of management policies relating to labor relations
(Sugbuanon Rural Bank, Inc. vs. Laguesma, G. R. No. 116194, February 2, 2000).

3. Determination of Appropriate Bargaining unit (ABU), Effect of Inclusion of

Employees Outside of the ABU

156. What is a bargaining unit?

“Bargaining Unit” refers to a group of employees sharing mutual interests within a given
employer unit. It is comprised of all or less than all of the entire body of employees in the
employer unit or any specific occupational or geographical grouping within such employer unit
(Sec. 1[e], Rule I, D.O. No. 40-03 as amended).

157. What are the four tests to determine the appropriate bargaining unit?

a. Community or mutuality of interest doctrine — Under this doctrine, the employees

sought to be represented by the collective bargaining agreement must have community or
mutuality of interest in terms of employment and working conditions as evinced by the
type of work they perform. It is characterized by similarity of employment status, same
duties and responsibilities, and substantially similar compensation and working conditions.
(Chan, Bar Reviewer on Labor Law 2019, p. 404-405, citing San Miguel Corporation
Employees Union-PTGWO v. Confesor, G.R. No. 111262, September 19, 1996).

b. Globe Doctrine — This principle is based on the will of the employees. Named after an
eponymous US ruling, according to this doctrine, 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 (3)
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 workers. (Azucena, The Labor Code with
Comments and Cases Volume I, 7th Edition, p. 405-406, citing Mechanical Department
Labor Union sa Philippine National Railways vs. Court of Industrial Relations, G.R. No. L-
28223, August 30, 1968).

c. 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 (National Association of Free Trade Unions vs. Mainit Lumber
Development Company Workers Union, G.R. No. 79526, Dec. 21, 1990).

d. 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 do not have the
mutuality or community of interest with regular and permanent employees (Land-Air-Sea
Labor Union vs. CIR, G.R. No. L-14656, November 29, 1960).

158. What is the effect of including union members of employees outside of the
bargaining unit?

General Rule: It shall not be a ground for the cancellation of the registration of the union. Said
employees are automatically deemed removed from the list of membership of said union (Art.
256, Labor Code, as amended).
 Exception: If such mingling was brought about by misrepresentation, false statement or fraud
under Art. 247 (Grounds for cancellation of Union Registration) of the Labor Code (SMCC-Super v.
Charter Chemical and Coating Corporation, G.R. No. 169717, March 16, 2011).

4. Non-interference with workers’ rights to self-organization

B. Legitimate labor organizations

159. What are the two modes of creating a labor organization?

1. Independent registration, and

2. Chartering of local/chartered local (Chan, Bar Reviewer on Labor Law 2019, p. 397-398).

1. Registration with the DOLE

160. How long should the Bureau of Labor Relations act on all the applications for
registration?

The Bureau shall act on all applications for registration within ONE (1) DAY from receipt thereof.
(DO 40-03, as amended.).

161. May the decisions made by the Bureau of Labor Relations denying registration be
appealed, if so, how?

Yes. by appealing to the Bureau within ten (10) days from the receipt of notice thereof. (DO
40-03, ibid.).

2. Cancellation of Registration

162. What are the grounds for cancellation of registration of labor organizations?

a. misrepresentation, false statement or fraud in connection with the adoption or ratification

of the constitution and by-laws or amendments thereto, the minutes of ratification, the list
of members who took part in the ratification;
b. misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list of voters; or
c. voluntary dissolution by the members (Art. 247, Ibid.).

NOTE: For misrepresentation to be a ground for the cancellation of the certificate of

registration, it must be done maliciously and deliberately. Further, the mistakes appearing in
the application or attachments must be grave or refer to significant matters. The details as to
how the alleged fraud was committed must also be indubitably shown. (Samahan ng
Manggagawa sa Hanjin Shipyard vs. Bureau of Labor Relations, G.R. No. 211145, October 14,
2015)

163. When may voluntary cancellation of a legitimate labor organization be filed?

A legitimate labor organization may cancel its registration provided at least two thirds (2/3)
of its general membership votes to dissolve the organization in a meeting duly called for that
purpose and an application to cancel its registration is thereafter submitted by the board of
the organization to the Regional/Bureau Director, as the case may be. (DO40-03)
 3. Affiliation/disaffiliation from National Union or Federation

164. What is the substitutionary doctrine?

The substitutionary doctrine holds that the employees cannot revoke the validly executed
collective bargaining contract with their employer by the simple expedient of changing their
bargaining agent. The new agent must respect the contract. The employees, thru their new
bargaining agent, cannot renege on the collective bargaining contract, except to negotiate with
the management for the shortening thereof (Elisco-Elirol Labor Union vs. Noriel et al., G.R. No.
L-41955, December 29, 1977).

4. Rights of Legitimate Labor Organizations

165. What are the rights of legitimate labor organizations?

a. To act as the Representative of its members for the purpose of collective bargaining;
b. To be certified as the Exclusive representative of all the employees in an appropriate
bargaining unit for purposes of collective bargaining;
c. To be furnished by the employer, upon written request, with its annual audited Financial
statements, including the balance sheet and the profit and loss statement, within thirty
(30) calendar days from the date of receipt of the request, after the union has been duly
recognized by the employer or certified as the sole and exclusive bargaining representative
of the employees in the bargaining unit, or within sixty (60) calendar days before the
expiration of the existing collective bargaining agreement, or during the collective
bargaining negotiation;
d. To Own property, real or personal, for the use and benefit of the labor organization and
its members;
e. To Sue and be sued in its registered name; and
f. To undertake all Other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law (Art. 251,
Labor Code, as amended) [REFOSO]

Note: the income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and exclusively used for their lawful
purposes, shall be free from taxes, duties and other assessments (Ibid).

5. Rights and Conditions of Membership in Legitimate Labor Organizations

166. What are the rights and conditions of membership in legitimate labor
organizations under Article 250 of the Labor Code, as amended?

The rights of union members under Article 250 may be summarized as follows:
1. Political rights
2. Fiscal rights
3. Right to information
4. Deliberative and decision-making right (Chan, Bar Reviewer on Labor Law 2019, p. 395-
396).
 6. Check off, Assessments, Union Dues, and Agency Fees

167. Explain the requirements for validity of the two kinds of check off.

1. Collection of union dues, special assessments, and fees (such as attorney’s fees,
negotiation fees or any other extraordinary fees) by the SEBA from its members, which
require individual written authorization specifying the details thereof; and
2. Collection of agency fees from non-members of the SEBA but covered by and included in
the Collective Bargaining Unit who accept the benefits provided in the CBA, which do not
require written authorization since it is implied through the acceptance of benefits resulting
from the CBA ("agency fee")
(Holy Cross of Davao College, Inc. vs. Joaquin, G.R. No. 110007, October 18, 1996).

168. What are the requisites for a valid levy of union dues and special assessments?

1. Authorized by a written resolution of a majority of all the members in a general membership

meeting duly called for the purpose.
2. The secretary of the organization shall record the minutes of the meeting including:
a. the list of all members present,
b. the votes cast,
c. the purpose of the special assessment or fees and
d. the recipient of such assessment or fees.
3. The record shall be attested to by the president. (Art. 250[n], Labor Code as amended)

169. When is an individual written authorization not required?

a. Assessment from non-members of the bargaining agent of “agency fees” which should be
equivalent to the dues and other fees paid by members of the recognized bargaining agent,
if such non-members accept the benefits under the CBA (Art. 259(e), Labor Code, as
amended).
b. Deductions for fees for mandatory activities such as labor relations seminars and labor
education activities.
c. Deductions for withholding tax mandated under the National Internal Revenue Code.
d. Deductions for withholding of wages because of employee’s debt to the employer which is
already due.
e. Deductions made pursuant to a judgment against the worker under circumstances where
the wages may be the subject of attachment or execution but only for debts incurred for
food, clothing, shelter and medical attendance.
f. Deductions from wages ordered by the court.
g. Deductions authorized by law such as for premiums for PhilHealth, SSS, PAG-IBIG,
employees’ compensation and the like (Id., p. 455-456).

7. Union Security Clause

170. What is union security?

Union security is a generic term, which is applied to and comprehends 'closed shop,' 'union
shop,' 'maintenance of membership,' or any other form of agreement which imposes upon
employees the obligation to acquire or retain union membership as a condition affecting
employment (Slord Development Corp vs. Noya, G.R. No. 232687, February 4, 2019).
171. Who are covered by the terms of a union security clause?

Generally, all employees in the bargaining unit covered by the union security clause are subject
to its terms.

The following employees are exempted from the coverage:

1. Employees who are already members of another union at the time of the signing of the
collective bargaining agreement may not be compelled by any union security clause to join
any union (Art. 254 [e], Labor Code, as amended).
2. Employees already in service at the time the closed shop union security clause took effect:
a. A closed shop provision in a CBA is not to be given a retroactive effect as to preclude
its being applied to employees already in service (Guijarno vs. CIR, G.R. No. L-28791-
93, August 27, 1973).
3. Any employee who, at the time the union security clause took effect, is a bona fide member
of a religious organization which prohibits its members from joining labor unions on
religious grounds (Reyes vs. Trajano, G.R. No. 84433, June 2, 1992).
4. Confidential employees who are excluded from the rank-and-file bargaining unit. (BPI vs.
BPI Employees Union-Davao Chapter, G.R. No. 164301, October 19, 2011)
5. Employees excluded from the union security provisions by express terms of the agreement
(BPI vs. BPI Employees Union-Davao Chapter, G.R. No. 164301, October 19, 2011).

C. Bargaining representative

1. Modes to acquire status as Sole and Exclusive Bargaining Agent (SEBA)

a. SEBA Certification

172. When is a SEBA certification required?

SEBA Certification is proper only when there is no other legitimate labor organization within
the bargaining unit sought to be represented by the union (Sec. 4.1, Book 5, Rule VII, D.O.
40-I-15). If there is more than one legitimate labor organization within the bargaining unit, the
proper course of action is certification election (Secs. 5 and 6, Book 5, Rule VII, D.O. 40-I-15).

b. Certification/Consent Election

173. What is a certification election?

It is the process of determining through secret ballot the sole and exclusive bargaining agent
of the employees in an appropriate bargaining unit for purposes of collective bargaining or
negotiations with the employer. A certification election is conducted only upon the order of
Med-Arbiter of the Bureau of Labor Relations [Sec. 1(h), Rule I, D.O. No. 40-03, as amended].

174. What is a consent election?

A “consent election” refers to the process of determining through secret ballot the sole and
exclusive bargaining agent (SEBA) of the employees in an appropriate bargaining unit for
purposes of collective bargaining and negotiation. It is the election voluntarily agreed upon by
the parties, with or without the intervention of the Department of Labor and Employment, to
determine the issue of majority representation of all the workers in the appropriate collective
bargaining unit [Sec. 1(h), Rule I, D.O. No. 40-03, as amended].
175. What are the grounds for the denial of the petition for certification election?

1. The petitioner is not listed in the Department’s registry of legitimate labor unions or that
its legal personality has been revoked or canceled with finality in accordance with Rule XIV
of these Rules;
2. The petition was filed before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty (60)-day period based on the original
collective bargaining agreement shall not be affected by any amendment, extension or
renewal of the collective bargaining agreement;
3. The petition was filed within one (1) year from entry of voluntary recognition or a valid
certification, consent, or run-off election and no appeal on the results of the certification,
consent or run-off election is pending;
4. A duly certified union has commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code, within the one-year period referred to in
Section 14(c) of this Rule, or there exists a bargaining deadlock which had been submitted
to conciliation or arbitration or had become the subject of a valid notice of strike or lockout
wi which an incumbent or certified bargaining agent is a party;
5. In case of an organized establishment, failure to submit the twenty-five percent (25%)
support requirement for the filing of the petition for certification election (Sec. 14, Rule
VIII, D.O. No. 40-03, as amended).

c. Bars to the holding of Certification/Consent Election

176. Discuss the different bar rules that bar the holding of Certification Election.

1. Statutory bar rule or Certification year bar rule - no petition for certification election (PCE)
may be entertained within one (1) year from the date of a valid CE;
2. Negotiations bar rule - no PCE may be entertained while the SEBA and the ER have
commenced good faith negotiations within one (1) year from the date of a valid CE;
3. Bargaining deadlock bar rule - no PCE may be entertained while the SEBA and the ER are
in a bargaining deadlock is submitted or is pending arbitration, mediation, or is the subject
of a strike or lockout; and
4. Contract bar rule - no PCE may be entertained during the period of a duly-registered CBA
with the BLR. A PCE may only be filed during the 60-day freedom period.
(Article 237, Labor Code, as amended; Chan, Bar Review in Labor Law, 2019, p. 423-424)

d. Failure of election, Run-Off Election, Re-run election

177. Distinguish Re-Run Election from Run-Off Election.

RE-RUN ELECTION RUN-OFF ELECTION

Conducted when: Conducted when:

a. One choice receives a plurality None of the choices, including the choice of NO
of vote and the remaining UNION, receives a majority of the valid votes cast.
choices result in a tie; There must be at least 3 choices
b. All choices received the same
number of votes.

In both instances, NO UNION is also a An election will be conducted between the union
choice. receiving the highest and the second highest
number of valid vote cast.
 e. Employer as a mere bystander rule

178. What are the exceptions to the bystander rule?

1. Lack of Employer-Employee Relationship — an employer can validly oppose a petition

for certification election when the relationship of employer-employee does not exist
between the company and the employees sought to be represented by the petitioning
union.
2. Lack of Legitimacy — An employer can validly oppose a petition for certification election
when the petitioning union is not a legitimate labor organization because it is not listed in
the Registry of Legitimate Labor Unions or its registration has been canceled with finality.
3. Inappropriate Bargaining Unit — An employer can validly oppose a petition for
certification election when the bargaining unit sought to be represented by the petitioning
union is not an appropriate bargaining unit.
4. Lack of 25% Consent — In an organized establishment, an employer can validly oppose
a petition for certification election when the petition is not supported by the written consent
of 25% of the employees covered by the bargaining unit.
5. Election Year Bar and Certification Year Bar — An employer can validly oppose a
petition for certification election when the petition was filed within one (1) year from a
valid certification election or from certification of a union as bargaining unit.
6. Deadlock Bar and Contract Bar — An employer can validly oppose a petition for
certification election when there is a duly registered CBA, or when there is a bargaining
deadlock that has been submitted to conciliation or arbitration or has become the subject
of a valid notice of strike or lockout. (Ungos, Labor Law 3: The Fundamentals of Labor Law
Review, 2021, p. 377-378)

D. Collective bargaining

1. Duty to bargain collectively, bargaining in bad faith

179. What is the Kiok Loy doctrine?

This doctrine is based on the ruling in Kiok Loy vs. NLRC (G.R. No. L-54334, 22 January
1986), where the petitioner, Sweden Ice Cream Plant, refused to submit any counter-
proposal to the CBA proposed by its employees’ certified bargaining agent. The High
Court ruled that the employer had thereby lost its right to bargain the terms and
conditions of the CBA. Thus, the CBA proposed by the union was imposed lock, stock
and barrel on the erring company.

2. Collective bargaining agreement (CBA), mandatory provisions

180. What are the mandatory provisions of a CBA?

1. Grievance Procedure;
2. Voluntary Arbitration;
3. No Strike-No Lockout Clause;
4. Labor-Management Council.

Absent any mandatory provisions stated above, the CBA shall be denied by the BLR.
(Chan, Pre-week Notes on Labor Law, 2019, p. 61)
 3. Signing, posting, registration

181. Explain the procedure in collective bargaining.

1. The certified bargaining agent must start the collective bargaining negotiations
within one (1) year from certification (as bargaining agent) by submitting its
collective bargaining proposals to the employer. The employer in turn will submit
its reply or counter proposals.
2. After receipt of the proposals and counter proposals, the parties will sit down to
discuss the terms of the CBA;
3. If the parties agree on the terms of the CBA, the union officers and the
representatives of the management will sign the CBA;
4. After signing, the CBA should be posted for five (5) days in at least two (2)
conspicuous places in the establishment;
5. Five (5) days after posting, the CBA should be submitted to the employees covered
by the bargaining unit for ratification. The CBA will be deemed ratified if the
majority of the employees covered by the bargaining unit approve it;
6. After ratification, the CBA should be submitted to the Department of Labor and
Employment (DOLE) for registration (Ungos, Labor Law 3: The Fundamentals of
Labor Law Review, 2021, pp. 394–396).

4. Term of CBA, freedom period

182. What is the freedom period as contemplated by the Labor Code?

The freedom period is the sixty (60)-day period prior to the expiration of the CBA. It is called
the freedom period because:
(1) It is the time when a union member may validly resign from the union;
(2) It is the time when a local union can disaffiliate from its mother federation;
(3) It is the time when the majority status of the incumbent collective bargaining agent can
be challenged through a petition for certification election;
(4) It is the time when the parties can seek the termination or modification of the existing CBA
(Ungos, Labor Law 3: The Fundamentals of Labor Law Review, 2021, p. 403) .

E. Unfair Labor Practices

1. Nature, aspects

183. What does unfair labor practice refer to?

Unfair labor practice refers to acts that violate the workers’ right to organize. The prohibited
acts are related to the workers’ right to self-organization and to the observance of a Collective
Bargaining Agreement. Without that element, the acts, no matter how unfair, are not unfair
labor practices (Philcom Employees Union vs. Philippine Global Communications, G.R. No.
144315, July 17, 2006).

184. What are the elements of ULP?

1. There must be an employer-employee relationship between the offender and offended

party; and
2. The act complained of must be expressly mentioned and defined in the Labor Code as ULP;
 3. The act complained of as ULP must have a proximate and casual connection with any of
the following 3 rights:
a. Exercise of the right to self-organization;
b. Exercise of the right to collective bargaining; or
c. Compliance with the CBA.

Exception: The only ULP that may or may not be related to the exercise of the right to
self-organization and collective bargaining is the act described under Art. 259 (248(f)) i.e.
to dismiss, discharge, or otherwise prejudice or discriminate against an employee for having
given or being about to give testimony under the Labor Code.

185. What are the two aspects of ULP?

Under Art. 258 of the Labor Code, as amended, ULP has two (2) aspects:

1. Civil aspect - includes claims for actual, moral and exemplary damages, attorney’s fees
and other affirmative reliefs (Art. 258, Labor Code, as amended). Generally, these civil
claims should be asserted in the labor case before the Labor Arbiters who have original
and exclusive jurisdiction over ULP cases (Art. 224, Labor Code, as amended).
2. Criminal aspect - falls within the jurisdiction of the regular trial courts. The criminal
proceeding is suspended once the civil or administrative aspect is filed. The criminal
proceeding will only continue once the administrative case has attained finality. (Duka,
Labor Laws and Social Legislation, 2019, pp. 524-525).

2. By employers

186. What are the kinds of ULP by the employer?

Under Article 259 of the Labor Code, as amended, it shall be unlawful for an employer to
commit any of the following ULP:
a. Interfere, restrain or coerce employees in their right to self-organization;
b. Require a person not to join a union;
c. Discourage Unionism;
d. Contract out services or functions being performed by union members;
e. Initiate, dominate, assist or otherwise interfere with formation or administration of any
union;
f. Discriminate in terms and conditions of employment to encourage or discourage
membership in any labor organization;
g. Dismiss, discharge or discriminate an employee for having given or being about to give
testimony under this code;
h. Violate the duty to bargain collectively;
i. 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 disputes; or
j. Flagrant or gross refusal to comply with the economic terms of CBA.

187. What is the Totality of Evidence Doctrine/Totality of Conduct Rule?

Under this doctrine, innocent expression of an employer when taken individually, will not be
considered as ULP. But if taken together, the same constitutes ULP. As such, expressions of
opinion by an Employer, though innocent in themselves, frequently were held to be ULP
because of:
1. The circumstances under which they were uttered;
2. The history of the particular Employer‘s labor relations or anti-union bias;
 3. Their connection with an established collateral plan of coercion or interference (The Insular
Life Assurance NATU vs. The Insular Life Co. Ltd, G.R. No. L‐25291, January 30, 1971) .

188. What is a Yellow Dog Contract?

Under Article 259 (b) of the Labor Code, as amended, ULP is committed when an employer
requires as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs. This is known as a yellow dog
contract.

189. What constitutes ULP in collective bargaining?

ULP exists in this form when the complaint shows prima facie the concurrence of two things:
a. There is a gross violation of the CBA; and
b. The violation pertains to the economic provisions of the CBA (Silva vs. NLRC, G.R. No.
110226, June 19, 1997).

3. By labor organizations

190. What are the kinds of ULP by Labor Organizations?

Under Article 260 of the Labor Code, as amended, it shall be unfair labor practice for a labor
organization, its officers, agents or representatives to:
a. Restrain or coerce employees in the exercise of their right to self-organization;
b. Cause or attempt to cause an employer to discriminate an employee;
c. Violate the duty or refuse to bargain collectively with the employer;
d. An employer 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;
e. Ask for negotiation or attorney‘s fees from employers as part of the settlement of any issue
in collective bargaining or any other dispute; or
f. Violation of the CBA.

191. What is featherbedding?

It is in nature of exaction, for services which are not performed or not to be performed, as
when a union demands that the employer maintain personnel in excess of the latter’s
requirements. It is an unfair labor practice of the union through coercive means for exacting
or attempting to exact the employers for services not rendered or no intended to be rendered.
However, there is no featherbedding if the paid work is performed n matter how unnecessary
or useless it may be to the employer (Duka, Labor Laws and Social Legislation, 2019, p. 535).

192. What is a Sweetheart Contract?

It is where a labor organization asks for or accepts a negotiation or attorney‘s fee from the
employer in settling a bargaining issue or dispute. The obligation to pay attorney’s fees belongs
to the union and cannot be shunted to the individual workers as their direct responsibility. The
law has made clear that any agreement to the contrary shall be null and void ab initio (EMCO
Plywood Corporation, et al. vs. Abelgas, G.R No. 148532 April 14, 2004).
 F. Peaceful concerted activities

1. Strikes

193. Who may declare a strike or a lockout?

1. Any certified or duly recognized bargaining representative may strike on the grounds of
ULP and bargaining deadlock; and
2. If there is no certified or duly recognized bargaining representative, any legitimate labor
organization in the establishment on the ground of ULP. Meanwhile, it is the Employer that
may declare lockout (Section 6, Rule XXII, Book V, Omnibus Rules Implementing the Labor
Code).

a. Grounds for strike

194. What are the grounds for a valid strike?

a. Collective bargaining deadlock (Economic Strike); and/or

b. Unfair labor practice (Political Strike).

b. Mandatory procedural requirement

195. What are the mandatory procedural requirements for a valid strike?

a. It must be based on a valid and factual ground (either ULP or bargaining deadlock);
b. A Notice of strike must be filed with the NCMB-DOLE at least 15 days before intended
strike, if based on ULP; or 30 days, if based on bargaining deadlock. ("Cooling-off Period).
In case of union busting, the 15-day cooling off period shall not apply.
c. A notice of strike vote must be served to the NCMB-DOLE at least 24 hours prior to the
taking of the strike vote by secret balloting, informing the said office of the decision to
conduct a strike vote and the date, place, and time thereof;
d. A strike vote must be taken where a majority of the union membership in the bargaining
unit concerned approve the strike;
e. A strike vote report should be submitted to the NCMB-DOLE at least seven (7) days before
the intended date of the strike, subject to the observance of the cooling-off period;
f. The 7-day waiting period/strike ban shall be observed after the submission of the strike
vote report; and
g. The dispute must not be subject of an assumption order by the SOLE or compulsory or
voluntary arbitration.

c. Legal strike vs. illegal strike

196. What are the tests in determining the legality of strike?

The following must concur in order to constitute a valid strike:

a. Purpose Test – the strike must be due to either bargaining deadlock and/or the ULP;
b. Compliance with the procedural and substantive requirements of the law;
c. Means Employed Test – it states that a strike may be legal at its inception but eventually
be declared illegal if the strike is accompanied by violence which is widespread, pervasive
and adopted as a matter of policy and not mere violence which is sporadic and which
normally occurs in a strike area.
 Well settled is the rule that even if the strike were to be declared valid because its objective
and purpose are lawful, the strike may still be declared invalid where means employed are
illegal (Association of Independent Unions in the Philippines vs. NLRC, G.R. No. 120505,
March 25, 1999).

d. Prohibited acts during strike

197. What are the prohibited activities during strikes and lockouts?

1. By anyone. No person shall obstruct, impede, or interfere with, by force, violence,

coercion, threats, or intimidation, any peaceful picketing by employees [Art.279(b), Labor
Code, as amended];
a. Blocking the free ingress to/ egress from work premises for lawful purposes
b. Obstruction of public thoroughfares
c. Threatening, coercing and intimidating non-striking employees, officers,
suppliers and customers
d. Resistance and defiance of assumption of jurisdiction by the Labor Secretary or an
injunction
e. Acts of violence (Association of Independent Unions in the Philippines (AIUP), et. al.
v. NLRC, G.R. No. 120505, March, 25, 1999).
2. By employer. No employer shall use or employ any strike-breaker, nor shall any person
be employed as a strike-breaker. (Art. 279(c), Labor Code, as amended).
3. By public official or police force. No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines or the Integrated National Police, or
armed person, shall bring in, introduce or escort in any manner, any individual who seeks
to replace strikers in entering or leaving the premises of a strike area, or work in place of
the strikers. (Art. 279(d), Labor Code, as amended).

198. How does the law distinguish, as to effects of illegal strikes, between a
participating worker and a union officer?

An ordinary worker merely participating in an illegal strike may not be terminated from
employment. It is only when he commits illegal acts during a strike that he may be declared
to have lost employment status.

In contrast, a union officer may be terminated from employment for knowingly participating in
an illegal strike or participating in the commission of illegal acts during a strike. The law grants
the employer the option of declaring a union officer who participated in an illegal strike as
having lost his employment (Visayas Community Medical Center vs. Yballe, G. R. No. 196156,
January 15, 2014).

2. Picketing

199. What are the requisites for lawful picketing?

a. The picket should be peacefully carried out;

b. There should be no act of violence, coercion or intimidation attendant thereto;
c. The ingress to or egress from the company premises should not be obstructed; and
d. Public thoroughfares should not be impeded. ( Chan, Bar Review in Labor Law, 2019, p.
592)
200. What is the Innocent Bystander Rule?

Under the Innocent Bystander Rule, the no-injunction rule does not apply in cases where the
interests of an innocent bystander are concerned. Thus, the right may be regulated at the
instance of third parties or "innocent bystanders" if it appears that the inevitable result of its
exercise is to create an impression that a labor dispute with which they have no connection or
interest exists between them and the picketing union or constitute an invasion of their rights
(Liwayway Publications vs. Permanent, G.R. No. L-25003, October 23, 1981).

3. Lockouts

201. What is a lockout?

Under Article 219 of the Labor Code, as amended, lockout is the temporary refusal of an
employer to furnish work as a result of an industrial or labor dispute.

202. What happens when the parties are in pari delicto?

If both parties are in pari delicto, in that the employer is guilty of illegal lockout and the union
is culpable for illegal strike, such situation warrants the restoration of the status quo ante and
bringing the parties back to the respective positions before the illegal strike and illegal lockout.
(Chan,Bar Reviewer on Labor Law, 2019, p. 598-599).

a. Grounds for lockout

203. What are the grounds for lockout?

A lockout must be based on any or both of the following two (2) exclusive grounds:
a. Unfair Labor Practice (political);
b. Collective bargaining deadlock (economic). (Sec. 5, Rule XXII, D.O. No. 40-03, as
amended)

b. Mandatory procedural requirements

204. What are the mandatory procedural requirements for a valid lockout?

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

2. A notice of lockout must be filed with the NCMB-DOLE at least 15 days before the intended
date of the strike or lockout;
3. A notice must be served to the 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 must be approved by a majority vote of the members of the Board of Directors
of the corporation or association, and such vote must be obtained by a secret ballot in a
meeting called for that purpose;
5. A lockout vote report should be submitted to the NCMB-DOLE at least seven days before
the intended date of the lockout;
6. The cooling-off period should be fully observed.
a. ULP of the labor organization – 15 days; or
b. Collective bargaining deadlock – 30 days;
7. The 7-day waiting period/lockout ban reckoned after the submission of the lockout vote
report to the NCMB-DOLE should also be observed in all cases (Chan, Bar Reviewer on
Labor Law, 2017, pp. 627-628).
 4. Assumption of jurisdiction by the DOLE Secretary

205. What are the legal effects of an assumption order issued by the President/
Secretary of Labor and Employment?

The assumption order shall have the effect of automatically enjoining an impending strike or
lockout. If a strike/lockout has already taken place at the time of assumption, all striking or
locked out employees and other employees subject of the notice or strike shall immediately
return to work and the employer shall immediately resume operations and readmit all
employees under the same terms and conditions prevailing before the strike or lockout.
Notwithstanding the foregoing, parties to the case may agree at any time to submit the dispute
to the Secretary of Labor or his duly authorized representative as Voluntary Arbitrator or to a
panel of Voluntary Arbitrators. (Sec. 15, Rule XXII, DO No. 40-03 as amended).

206. What are the industries/services deemed as indispensable to national interest?

a. Hospital Sector;
b. Electric Power Industry;
c. Water Supply Services, to exclude small water supply services such as Bottling and Refilling
Refilling Stations;
d. Air Traffic Control; and
e. Such other industries may be recommended by the National Tripartite Industrial Peace
Council (NTIPC). (Sec. 16, Rule XXII, D.O. No. 40-03 as amended)

207. Are employees engaged in a strike entitled to reinstatement?

YES, they are generally entitled to reinstatement.

1. In Economic Strike - employees engaged in economic strike are entitled to reinstatement
provided the employer has not yet hired permanent replacements. (Consolidated Labor
Association vs. Marsman, GR No. L-17038, July 31, 1964).
2. In ULP strike - employees engaged in ULP Strike are entitled to reinstatement even if the
employer may have already hired replacements. (Cromwell Employees Union vs. CIR, GR
No. L-19778, September 30, 1964).

However, separation pay in lieu of reinstatement may be made when:

1. Reinstatement can no longer be effected in view of the passage of a long period of time
or because of the realities of the situation;
2. Reinstatement is inimical to the employer's interest;
3. Reinstatement is no longer feasible;
4. Reinstatement does not serve the best interests of the parties involved;
5. The employer is prejudiced by the workers' continued employment;
6. Facts that make execution unjust or inequitable have supervened; or
7. Strained relations between the employer and employee. ( Bigg’s Inc. vs. Boncacas, G.R.
No. 200487, March 6, 2019, J. Caguioa citing Escario vs NLRC, G.R No. 160302, September
27, 2010).

Note: Backwages cannot be awarded to employees who joined an illegal strike conformably
with the long-honored principle of a “fair day's wage for a fair day's labor.” (Id at Bigg’s Inc.
vs Boncasas.)
 5. Injunctions

208. What are the requisites for labor injunctions?

1. Hearing held after due and personal notice to parties affected;

2. Reception of evidence and the opportunity of cross examination;
3. Findings of fact by the Commission that:
a. Prohibited or unlawful acts have been threatened and committed and will be continued
until restrained;
b. Substantial or irreparable injury to complainant‘s property will follow;
c. That as to each item of relief to be granted, greater injury will be inflicted by the denial;
d. Complainant has no other remedy in law; or Public officials charged with duty to protect
complainant‘s property are unable or unwilling to furnish adequate protection. ( Sec. 1,
Rule X, 2011 NLRC Rules of Procedure as amended)

209. May an injunction be issued against strikes and lockouts?

Strikes and lockouts that are validly declared enjoy the protection of the law and cannot be
enjoined unless illegal acts are committed or threatened to be committed in the course thereof.
Injunction may be issued not only against the commission of illegal acts but against the strike
itself because the notice of strike filed by the union has been converted into a preventive
mediation case. Having so been converted, a strike can no longer be staged based on said
notice. Upon such conversion, the legal effect is that there is no more notice of strike to speak
of (San Miguel Corporation vs. NLRC, G.R. No. 119293, June 10, 2003).

VI. TERMINATION OF EMPLOYMENT

A. Security of tenure

210. What is the right to security of tenure?

It is a constitutional right that guarantees employees that they can only be terminated from
service for a just and valid cause and when supported by substantial evidence after due process
(Telus International Philippines, Inc. vs. De Guzman, G.R. No. 202676, December 04, 2019).

1. Categories of employment as to tenure

a. Regular

211. What is the test to determine regular employment?

The primary standard of determining regular employment is the reasonable connection

between the particular activity performed by the employee to the usual trade or business of
the employer. The performance of a job for at least a year is sufficient evidence of the job’s
necessity if not indispensability to the business. This is the rule even if its performance is not
continuous and merely intermittent. The employment is considered regular, but only with
respect to such activity and while such activity exists (URC vs. Catapang, G.R. No. 164736,
October 14, 2005)
 b. Casual

212. What is a casual employment?

Another type of regular employee who, after one year of service, becomes regular. But he is
“regular” only for that work activity for which he was hired. His employment may be on-and-
off, but every time the particular work activity occurs, he is one to be rehired. (Azucena, The
Labor Code with Comments and Cases Volume II, p. 662, 2021).

c. Probationary

213. What are the elements of a valid probationary employment?

a. Employee is made to undergo a trial period;

b. Reasonable standard must be communicated to the employee; and
c. Employer must make such communication at the time of the Probationary Employee’s
engagement. (Section 6 [d] of the Implementing Rules of Book VI, Rule I of the Labor Code)

d. Project

214. What is the litmus test in determining whether an individual is a project

employee?

The litmus test to determine whether an individual is a project employee lies in setting a fixed
period of employment involving a specific undertaking which completion or termination has
been determined at the time of the particular employee’s engagement (Leyte Geothermal
Power Progressive Employees Union-ALU-TUCP vs. PNOC-EDC G.R. No. 170351, March 30,
2011).

215. Diosdado, a carpenter, was hired by Building Industries Corporation (BIC), and
assigned to build a small house in Alabang. His contract of employment
specifically referred to him as a “project employee,” although it did not provide
any particular date of completion of the project. Is the completion of the house a
valid cause for the termination of Diosdado’s employment? If so, what are the due
process requirements that the BIC must satisfy? If not, why not? (2009 BAR)

The completion of the house should be valid cause for termination of Diosdado’s employment.
Although the employment contract may not state a particular date, but if it did specify that the
termination of the parties employment relationship was to be on a “day certain” – the day
when the phase of work would be completed – the employee cannot be considered to have
been a regular employee. (Filipinos Pre-Fabricated Building Systems vs. Puente, G.R. No.
153832, March 18, 2005) To satisfy due process requirement, under DOLE Department Order
No. 19, series of 1993, the employer is required to report to the relevant DOLE Regional Office
the fact of termination of project employees as a result of the completion of the project or any
phase thereof in which one is employed.

e. Seasonal

216. Define, explain or distinguish Seasonal employee from project employees (2019
BAR)

Seasonal employees are those who are called to work from time to time according to the
occurrence of varying needs during a season, and the employment is only for the duration of
 said season. They are laid off after completion of the required phase of work for the season.
Project employees are those who are assigned to carry out a specific project or undertaking,
the duration and scope of which were specified at the time the employees were engaged for
the project, hence, the services of the project employees are coterminous with the project for
which they were hired. (Art. 295, Labor Code, as amended)

217. Can a seasonal employee be considered a regular employee?

Yes. Regular seasonal employees are those called to work from time to time. The nature of
their relationship with the employer is such that during the off season, they are temporarily
laid off; but reemployed during the summer season or when their services may be needed.
They are in regular employment because of the nature of their job, and not because of the
length of time they have worked (Gapayao vs. Fulo, et al. G.R. No. 193493, June 13, 2013).

218. What is the employment Relationship During Off-Season?

During off-season, the EER is not severed; the seasonal employee is merely considered on
leave of absence without pay. Workers who have performed the same tasks every season for
several years are considered regular employees for their respective tasks. (Hacienda Fatima
vs. National Federation of Sugarcane Workers-Food and General Trade, G.R. No. 149440,
2003)

219. When Seasonal Employees may be Considered as Regular Employees?

Where there is a reasonable connection between the particular activity performed by the
employee in relation to the usual trade or business of the employer; and when seasonal
workers are repeatedly engaged to perform the same tasks for more than one season (Zamudio
v. NLRC, G.R. No. 76723, 1990). One year duration on the job is pertinent in deciding whether
a casual employee has become regular or not, but it is not pertinent to a seasonal or project
employee. Passage of time does not make a seasonal worker regular or permanent. (Mercado
vs. NLRC, G.R. No. 79869, 1991)

220. When Seasonal Employees NOT Considered as Regular Employees?

1. Seasonal workers who have worked for one season only (Hacienda Fatima vs. National
Federation of Sugarcane Workers-Food and General Trade, G.R. No. 149440, 2003);
2. When seasonal employees are free to contract their services with other owners (Mercado,
Sr. v. NLRC, G.R. No. 79869, September 5, 1991).

f. Fixed-term

221. What are the Elements of valid fixed-term employment?

1. The fixed period of employment was knowingly and voluntarily agreed upon by the parties
without any force, duress, or improper pressure being brought to bear upon the employee
and absent any other circumstances vitiating his consent;
2. It satisfactorily appears that the employer and the employee dealt with each other on more
or less equal terms with no moral dominance exercised by the former or the latter.

These indications, which must be read together, make the Brent doctrine applicable only
in a few special cases wherein the employer and employee are on more or less in equal
footing in entering into the contract.
 The reason for this is: when a prospective employee, on account of special skills or market
forces, is in a position to make demands upon the prospective employer, such prospective
employee needs less protection than the ordinary worker. Lesser limitations on the parties’
freedom of contract are thus required for the protection of the employee. (Fuji Television
Network vs. Espiritu, G.R. Nos. 204944-45, December 3, 2014)

222. What are some rules pertaining to Fixed-term employment?

a. Notice of termination is not necessary in fixed-term employment (Pangilinan vs. General

Milling Corporation, supra)
b. Employee is deemed regular if the contract failed to state the specific period of employment
(Poseidon Fishing vs. NLRC, G.R. No. 168052, February 20, 2006);
c. Termination prior to lapse of fixed-term contract should be for a just or authorized cause
(Anderson vs. NLRC, G.R. No. 111212, January 22, 1996);
d. Liability for illegal dismissal of fixed-term employees is only for the salary for unexpired
portion (New Sunrise Metal vs. Pia, G.R. No. 171131, July 10, 2007)

g. Work-pool employees

223. When does a member of a work pool acquire the status of a regular employee?

A member of a work pool may acquire the status of a regular employee when the following
concur: 1) There is a continuous rehiring of project employees even after cessation of a project;
and 2) The tasks performed by the alleged "project employee" are vital, necessary and
indispensable to the usual business or trade of the employer. However, the length of time
during which the employee was continuously re-hired is not controlling, but merely serves as
a badge of regular employment (Maraguinot vs. NLRC G.R. No. 120969, January 22, 1998).

2. Legitimate subcontracting vs. labor-only contracting

224. Discuss the elements of labor-only contracting.

There is labor-only contracting where: (a) the person supplying workers to an employer does
not have substantial capital or investment in the form of tools, equipment, machineries, work
premises, among others; and (b) the workers recruited and placed by such person are
performing activities which are directly related to the principal business of the employer.
Based on this, one of the factors in determining whether there is a labor-only contracting is
the nature of the employee’s job; whether the work he performs is necessary and desirable to
the business. (Daguinod vs. Southgate Foods, Inc., G.R. No. 227795, February 20, 2019, J.
Caguioa).

a. Elements

225. What are the elements of a Legitimate contracting or subcontracting?

a. The contractor is engaged in a distinct and independent business and undertakes to

perform the job or work on its own responsibility according to its own method;
b. The contractor or subcontractor has substantial capital and/or investment;
c. The contractor 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; and d. The Service Agreement ensures compliance with all the rights and benefits
for all of the employees of the contractor or subcontractor under Labor laws. (D.O. No.
174-17, Sec. 8)

226. What are the elements of a Labor-Only Contracting?

Labor only contracting shall refer to an arrangement where the contractor or subcontractor
recruits, supplies, or places workers to perform a job or work for a principal, and the elements
hereunder:
a. The contractor does not have substantial capital; or the contractor or subcontractor does
not have investments in the form of tools, equipment, machineries; and the contractor’s
or subcontractor’s employees recruited and placed are performing activities which are
directly related to the main business operation of the principal; or
b. The contractor or subcontractor does not exercise the right of control over the work of the
employee (D.O. No. 174-17, Sec. 5)

227. Distinguish labor-only contracting from legitimate job contracting, and give the
effects of a finding of labor-only contracting.

There is job contracting if a contractor carries on a distinct and independent business free from
the control of the principal in all matters except as to the results thereof; and has substantial
capital or investment. There is labor-only contracting when the principal retains the power to
control the contracted employees; or when the contractor has insufficient capital and performs
activities directly related to the business of the principal. A finding that there is labor-only
contracting makes the principal the direct employer of the contracted employees and is
solidarily liable with the contractor for the wages and other benefits of the contracted
employees. (Polyfoam-RGC International Corp. vs. Conception, G.R. No. 172349 [2012])

b. Trilateral relationship

c. Solidary liability

228. Who is liable in the event that the contractor or subcontractor fails to pay the
wages of his employees?

In the event that the contractor or sub-contractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable with his contractor
or sub-contractor to such employees to the extent of the work performed under the contract,
in the same manner and extent that he is liable to employees directly employed by him (Art.
106, Labor Code, as amended).

229. Who is the Principal in cases where there are violations of rights of employees or
required contracts?

A finding of violation of either Sections 10 (Rights of Contractor's Employees) or 11 (Required

Contracts) shall render the principal the direct employer of the employees of the contractor or
subcontractor, pursuant to Art. 109 of the Labor Code (D.O. No. 147-17, Sec. 12).

230. Who has solidary liability in legitimate contracting where there are violations of
the Labor Code and Social Legislation?

In the event of violation of any provision of the Labor Code, including the failure to pay wages,
there exists a solidary liability on the part of the principal and the contractor for purposes of
 enforcing the provisions of the Labor Code and other social legislations, to the extent of the
work performed under the employment contract. (D.O. No. 174-17, Sec. 9) Every employer or
indirect employer shall be held responsible with his contractor or subcontractor for any violation
of any provision of this Code. For purposes of determining the extent of their civil liability under
this Chapter, they shall be considered as direct employers. (Art. 109, Labor Code, as amended)

Note on the Principal’s Liability under Art. 109 - If the liability is for failure to pay the
minimum wage, or the service incentive leave or other benefits derived from or provided for
by law, the principal is equally liable with the contractor If the liability is invested with punitive
character, such as an award for backwages and separation pay because of an illegal dismissal,
the liability should be solely with the contractor in the absence of proof that the principal
conspired with the contractor in the commission of the illegal dismissal (Meralco vs. NLRC, G.R.
No. 145402, March 14, 2008)

231. Who has solidary liability for wages and money claims for services performed
under a contract?

In the event that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable with his contractor
or subcontractor to such employees to the extent of the work performed under the contract,
in the same manner and extent that he is liable to employees directly employed by him (Art.
106, Labor Code, as amended).

Should the indirect employer be constrained to pay the workers, it can recover whatever
amount it paid, in accordance with the terms of the service contract between itself and the
contractor (Rosewood Processing v. NLRC, G.R. Nos. 116476-84, 1998).

The joint and several liability of the contractor and the principal is mandated by the Labor Code
to assure compliance with the provisions therein including the minimum wage. The contractor
is made liable by virtue of his status as direct employer. The principal, on the other hand, is
made the indirect employer of the contractor's employees to secure payment of their wages
should the contractor be unable to pay them. Even in the absence of an EER, the law itself
establishes one between the principal and the employees of the agency for a limited purpose
i.e. in order to ensure that the employees are paid the wages due them. (Lapanday Agricultural
Development Corp. vs. CA, G.R. No. 112139, 2000)

B. Termination by Employer

232. What is the principle of totality of infractions?

The totality of infractions or the number of violations committed during the period of
employment shall be considered in determining the penalty to be imposed upon an erring
employee. The offenses committed by petitioner should not be taken singly and separately.
Fitness for continued employment cannot be compartmentalized into tight little cubicles of
aspects of character, conduct and ability separate and independent of each other. (Villanueva
vs. Ganco, G.R. No. 227175, January 08, 2020, J. Caguioa)
 1. Substantive Due Process

a. Just causes

233. Distinguish between dismissal of an employee for just cause and termination of
employment for authorized cause.

Termination based on just cause Termination of employment for

authorized cause

Employee has committed a wrongful act or Termination based on authorized cause under
omission inimical to the interests of the Art. 298 and Art. 299 of the Labor Code, as
employer, which justifies the severance of amended, means that there exists a ground
the employer-employee relationship, e.g., which the law itself authorizes to be invoked to
the employee has committed some serious justify the termination of an employee even if
misconduct; gross insubordination; fraud he has not committed any wrongful act or
or loss of trust and confidence; gross and omission. Under the same provisions,
habitual neglect of duty; crime committed authorized causes are classified into two (2)
against the employer and his family; other classes, namely, business related causes such
analogous cases. as installation of labor saving devices;
retrenchment; redundancy; or closure not due
Payment of separation pay is not mandated to serious losses; and health related causes,
by law. (Electro Systems Industries such as disease. (Puncia v. Toyota Shaw/Pasig,
Corporation v. NLRC, G.R. No. 165282 Inc., G.R. 213499 [2016])
[2005])

b. Authorized causes

234. What are the requisites for a valid implementation of a redundancy program?

1. written notice served on both the employees and the Department of Labor and
Employment at least one month prior to the intended date of retrenchment;
2. payment of separation pay equivalent to at least one month pay or at least one month pay
for every year of service, whichever is higher;
3. good faith in abolishing the redundant positions; and
4. fair and reasonable criteria in ascertaining what positions are to be declared redundant
and accordingly abolished (San Fernando Coca-Cola Rank-And-File Union (SACORU) vs.
Coca-Cola Bottlers Philippines, Inc. [CCBPI], G.R. No. 200499, October 4, 2017, J.
Caguioa).

235. Who has the burden of proving that the dismissal of an employee was for a just or
authorized cause?

The employer has the burden of proving that the dismissal of an employee was for a just or
authorized cause, and failure to show this would necessarily mean that the dismissal was
unjustified and, therefore, illegal. Furthermore, not only must the dismissal be for a cause
provided by law, it should also comply with the requirements of due process, that is, the
opportunity to be heard and to defend one's self. Hence, for dismissal to be valid, the employer
must show through substantial evidence — or such amount of relevant evidence that a
reasonable mind might accept as adequate to support a conclusion — that (1) the dismissal
was for a just or authorized cause; and (2) the dismissed employee was afforded due process
 of law. (Evic Human Resource Management, Inc. vs. Rogelio Panahon, G.R. No. 206890, July
31, 2017, J. Caguioa)

2. Procedural Due Process

a. Twin-notice rule

236. Explain the procedural due process requirements in employee dismissal for just
cause.

In order to comply with procedural due process in terminating an employee based on just
causes, the employer must observe the Two-Notice Rule: The first written notice to be served
on the employees should contain the specific causes or grounds for termination against them,
and a directive that the employees are given the opportunity to submit their written explanation
within a reasonable period, construed as five (5) days from receipt of notice. After serving the
first notice, the employers should schedule and conduct a hearing or conference wherein the
employees will be given the opportunity to: (1) explain and clarify their defenses to the charge
against them; (2) present evidence in support of their defenses; and (3) rebut the evidence
presented against them by the management. After determining that termination of
employment is justified, the employers shall serve the employees a written notice of
termination indicating that: (1) all circumstances involving the charge against the employees
have been considered; and (2) grounds have been established to justify the severance of their
employment. (King of Kings v. Mamac, G.R. No. 166208, June 29, 2007).

3. Illegal dismissal, reliefs therefrom

a. Reinstatement

237. What is reinstatement?

a. Restores the employee who was unjustly dismissed;

b. To the position to which he/she was removed;
c. That is to his/her status quo ante dismissal. (Santos vs. NLRC, G.R. No. 76721, September
21, 1987)

238. Is an employee suffering from a disease entitled to a reinstatement?

Yes, provided he presents a certification by a competent public health authority that he is fit
to return to work. (Cebu Royal Plant vs. Deputy Minister, G.R. No. L-58639, August 12, 1987)

b. Backwages

239. What is the meaning of “Backwages”?

Backwages refer to the indemnity given to an employee who has been unjustly dismissed from
work, and presupposes illegal termination. (Davao Free Workers Front vs. CIR, G.R. No. L-
29356, October 31, 1974)

240. What are the circumstances that prevent the award of backwages?

a. Business reverses;
b. Closure of business;
 c. Reinstatement of dismissed employees. (Maritama vs. United Seamen’s Union of the
Philippines, G.R. No. L-28399, July 25, 1975)

c. Separation pay, doctrine of strained relations

241. What are the rules on the payment of separation pay?

● A person dismissed for a cause as defined under the Labor Code is not entitled to
separation pay. (PLDT, Co. vs. NLRC, G.R. No. 80609, August 23, 1988);
● No obligation to pay separation pay if the closure is not a unilateral and voluntary act of
the employer. (National Federation of Labor v. NLRC, G.R. No. 127718, March 2, 2000);
● If the closure or cessation of the operation of an establishment is due to serious business
losses or financial reverses, the employees are not entitled to separation pay. (Art. 298,
Labor Code, as amended)

242. What is the “Doctrine of Strained Relations”?

It is where the relationship between the parties has become so strained and ruptured as to
preclude a harmonious working relationship. Where the parties already have strained relations,
separation pay in lieu of reinstatement may be awarded. (Citytrust Finance Corp. vs. NLRC, et
al., G.R. 75740, January 15, 1988; Commercial Motors Corp. v, NLRC, supra). It would be more
confidential to accord the employee backwages and separation pay. (Kunting v. NLRC, G.R.
No. 101427, November 8, 1993)

d. Damages

243. Are illegally dismissed employees entitled to moral and exemplary damages?

Yes. The employer is liable for moral damages under the provisions of Art. 2220 of the Civil
Code providing for damages for “breaches of contract” where the employer acted
fraudulently or in bad faith. However, Exemplary damages may be awarded only if the
dismissal was shown to have been affected in the wanton oppressive and malevolent
manner. (NBS, Inc. vs. CA Special Eighth Division, et al., G.R. No. 146741, February 27, 2002)

244. What damages can an illegally dismissed employee collect from his employer?
(2001 BAR)

An illegally dismissed employee may collect from his employer ACTUAL and COMPENSATORY
damages, MORAL damages and EXEMPLARY damages, as well as attorney’s fees as damages.
(NBS, Inc. vs. CA Special Eighth Division, et al., G.R. No. 146741, February 27, 2002)

e. Attorneys’ fees

245. What are the guidelines of the award of attorney's fees, if any?

Attorney’s fees in any judicial or administrative proceedings for the recovery of wages shall not
exceed 10% of the amount awarded. The fees may be deducted from the total amount due
the winning party. There are two commonly accepted concepts of attorney’s fees – the ordinary
and extraordinary. In its ordinary concept, an attorney’s fee is the reasonable compensation
paid to a lawyer by his client for the legal services the former renders; compensation is paid
for the cost and/or results of legal services per agreement or as may be assessed. In its
extraordinary concept, attorney’s fees are deemed indemnity for damages ordered by the court
to be paid by the losing party to the winning party. The instances when these may be awarded
 are enumerated in Article 2208 of the Civil Code, specifically in its paragraph 7 on actions for
recovery of wages, and is payable not to the lawyer but to the client, unless the client and his
lawyer have agreed that the award shall accrue to the lawyer as additional or part of
compensation. (Tangga-an v. PhilTransmarine, G.R. No. 180636, March 13, 2013)

f. Liabilities of corporate officers

246. What is the liability of officers in illegal termination cases?

They are only solidarily liable with the corporation for the illegal termination of services of
employees if they acted with malice or bad faith. (Polymer Rubber, Corp. vs. Salamunding,
G.R. No. 185160, July 24, 2013)

g. Burden of proof

C. Termination by Employee

1. Resignation versus Constructive Dismissal

247. Distinguish between voluntary resignation and constructive dismissal.

VOLUNTARY RESIGNATION CONSTRUCTIVE DISMISSAL

DEFINITION

Is the voluntary act of an employee When an employee is compelled by the employer

who is in a situation where one believes to resign or is placed in a situation where there
that personal reasons cannot be would be no other choice but to resign. There is
sacrificed in favor of the exigency of constructive dismissal when an employer's act of
service, and one has no choice but to clear discrimination, insensibility or disdain
dissociate oneself from employment becomes so unbearable on the part of the
(Pascua vs. Bank Wise, Inc., G.R. No. employee so as to foreclose any choice on his part
191460, January 31, 2018) except to resign from such employment (Pascua
vs. Bank Wise, Inc., G.R. No. 191460, January 31,
2018).

VOLUNTARINESS

The act is voluntary The act is merely disguised as a voluntary act of

resignation

AS TO EXISTENCE OF ILLEGAL DISMISSAL

There can be no illegal dismissal, It is always amounts to illegal dismissal.

resignation having been voluntarily and
freely tendered by the employee

248. What are the instances when an employee may terminate his employment
without need for a 30-day notice to the employer?

An employee may put an end to the relationship without serving any notice on the employer
for any of the following just causes:
 1. Serious insult by the employer or his representative on the honor and person of the
employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative;
3. Commission of a crime or offense by the employer or his representative against the person
of the employee or any of the immediate members of his family; and,
4. Other causes analogous to any of the foregoing. (Art. 300 [b] [4], Labor Code, as
amended)

2. Abandonment

249. What is “Abandonment”?

Abandonment is the deliberate and unjustified refusal of an employee to resume his

employment. It is a form of neglect of duty, hence, a just cause for termination of employment
by the employer. For a valid finding of abandonment, these two factors should be present: (1)
the failure to report for work or absence without valid or justifiable reason; and (2) a clear
intention to sever employer-employee relationship, with the second as the more determinative
factor which is manifested by overt acts from which it may be deduced that the [employee]
has no more intention to work. The intent to discontinue the employment must be shown by
clear proof that it was deliberate and unjustified. (Protective Maximum Security Agency, Inc.
vs. Fuentes, 753 Phil. 482, 507, February 11, 2015)

250. Is abandonment of work a valid ground to dismiss an employee?

Yes, provided that there was a showing of overt acts clearly evidencing the employee's
intention to sever the employer employee relationship. Although abandonment of work is not
expressly enumerated as a just cause under Article 297 of the Labor Code, jurisprudence has
recognized it as a form of or akin to neglect of duty. ( Demex Rattancraft vs. Leron, G.R. No.
204288, November 8, 2017)

Abandonment of work has been construed as "a clear and deliberate intent to discontinue one's
employment without any intention of returning back." To justify the dismissal of an employee
on this ground, two (2) elements must concur, namely:
a. the failure to report for work or absence without valid or justifiable reason; and,
b. a clear intention to sever the employer-employee relationship.

NOTE: Mere failure to report to work is insufficient to support a charge of abandonment.

The employer must adduce clear evidence of the employee's "deliberate, unjustified refusal to
resume his [or her] employment," which is manifested through the employee's overt acts.
(Supra)

D. Preventive Suspension

251. When is preventive suspension of a maximum of thirty (30) days proper?

If the employee’s continued employment poses a serious and imminent threat to life or
property of the employer or of his co-workers. (Section 8 of Rule XXIII, Book V of the Omnibus
Rules Implementing the Labor Code, as amended by Department Order No. 9, Series of 1997).
Without this threat, preventive suspension is not proper. (Maula v. Ximex Delivery Express,
Inc., G.R. No. 207838, January 25, 2017). In case the employer wishes to extend the period
of preventive suspension, the employee must be reinstated on payroll.
 E. Floating status

252. What is Floating Status?

An indefinite period of time when private respondents do not receive any salary or financial
benefit provided by law. (Agro Commercial Security Services Agency vs. NLRC, G.R. Nos.
82823-24 July 31, 1989)

253. What are Differences between Floating Status and Preventive Suspension?

FLOATING STATUS PREVENTIVE SUSPENSION

Period of Validity The bona fide suspension of No preventive suspension shall

the operation of a business or last longer than thirty (30) days.
undertaking for a period not (Section, 9 Rule XXIII, Book V of
exceeding six (6) months. the Omnibus Rules Implementing
(Article 301, Labor Code) the Labor Code)

Reason/s Employer has no available ● Disciplinary measure for

work or job to assign the protection of the
employee due to temporary company’s property
suspension of business pending investigation of
operations. (MMCEAFFW any alleged malfeasance
Chapter vs. Manila Mining or misfeasance committed
Corp., G.R. Nos. 178222-23, by the employee.
September 29, 2010) (Gatbonton vs. NLRC,
G.R. No. 146779, January
23, 2006)
● Employee’s continued
presence in the company
premises poses a serious
and imminent threat to
the life or property of the
employer or his co-
workers. (Section 8 of
Rule XXIII, Book V of the
Omnibus Rules
Implementing the Labor
Code)

Is the employee No. BUT due to the ‘grim No.

entitled to pay economic consequences’ to XPN: When it is determined that
during the period? the employee, the employer there is no sufficient basis to
should bear the burden of justify an employee’s preventive
proving that there are no suspension. (Gatbonton vs. NLRC,
posts available to which the G.R. No. 146779, January 23,
employee temporarily out of 2006)
work can be assigned. (Pido
vs. NLRC, G.R. No. 169812,
February 23, 2007)
 When will it be If an employee is on a floating ● When the suspension of
tantamount to a status and was not given any an erring employee
constructive assignment within six months exceeds the maximum 30-
dismissal? from the start of the period. day preventive
(Seventh Fleet Security suspension;
Services vs. Loque, G.R. No. ● Imposed indefinitely.
230005, January 22, 2020) (Premiere Development Bank vs.
NLRC, G.R. No. 114695, July 23,
1998)

F. Retirement

254. What are the Types of Retirement?

(Art. 302, Labor Code, as amended; Statutory Monetary Benefits Handbook)

OPTIONAL COMPULSORY

Age Qualification upon reaching the age of sixty Upon reaching sixty-five (65)
(60) years or such other age years.
established as optional
retirement in the CBA or
company policy.

Option exercised Employee Employer

by

Minimum period of at least five (5) years in the said establishment.

service

Entitlement If there is no retirement plan established, retirement pay of a

minimum of 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, including the equivalent of five days' service
incentive leave (22.5 days of pay for every year of service)

255. Who are exempted from the coverage?

Retail, service and agricultural establishments or operations employing not more than (10)
employees or workers. (R.A 7641, amending Art. 287 [renumbered as Art. 302])

VI. MANAGEMENT PREROGATIVE

256. What is the concept of management prerogative?

Every employer has the inherent right to regulate, according to his own discretion and
judgment, all aspects of employment, including hiring, work assignments, working methods,
time, place and manner of work, tools to be used, process to be followed, supervision of
workers, working regulations, transfer of employees, work supervision, lay-off workers, and
discipline, dismissal and recall of work (San Miguel Brewery Sales Force Union [PTGWO] vs.
Ople, G.R. No. 53515, February 8, 1989; Deles, Jr. vs. NLRC, G.R. No. 121348, March 9, 2000).
257. What are the rights of an employer in the exercise of management prerogative?

The following are the rights of an employer in the exercise of management prerogative:
1) Right to discipline;
2) Right to dismiss;
3) Right to promulgate rules and regulations;
4) Right to impose penalty;
5) Right to determine who to punish;
6) Right to choose which penalty to impose; and
7) Right to impose heavier penalty than what the company rules prescribe, among others
(Chan, Bar Reviewer on Labor Law, 2019, p. 797).

A. Discipline

258. What is the quantum of proof required to be able to impose disciplinary action
against employees?

Substantial proof is a sufficient basis for the imposition of any disciplinary action upon
employees. Such a standard is satisfied where the employer has reasonable ground to believe
that the employee is responsible for the misconduct that renders the latter unworthy of the
trust and confidence demanded by his or her position (Ruiz vs. Wendel Osaka Realty Corp.,
G.R. No. 189082, July 11, 2012).

259. What are the limitations in exercising the right to discipline employees?

Generally, the employer must be accorded reasonable latitude in determining who among
erring officers or employees should be punished by the company and to what extent (Soriano
vs. NLRC, G.R. No. 75510, October 27, 1987). However, the policies, rules and regulations on
work-related activities of the employees must always be fair and reasonable and the
corresponding penalties, when prescribed, commensurate to the offense involved and to the
degree of the infraction (Consolidated Food Corporation vs. NLRC, G.R. No. 118647, September
23, 1999; St. Michael’s Institute vs. Santos, G.R. No. 145280, December 4, 2001).

B. Transfer of employees

260. What is the prerogative of management to transfer employees?

The prerogative of management to transfer an employee from one office to another within the
business establishment is upheld, provided there is no demotion in rank or a diminution of
salary, benefits and other privileges. As a rule, the Court will not interfere with an employer's
prerogative to regulate all aspects of employment which include among others, work
assignment, working methods and place and manner of work. Labor laws discourage
interference with an employer's judgment in the conduct of his business ( Marsman & Co., Inc.
v. Sta. Rita, G.R. No. 194765, April 23, 2018)

NOTE: Even as the Court has acknowledged the management prerogative of security agencies
to transfer security guards when necessary in conducting its business, it likewise has repeatedly
held that this should be done in good faith. (Symex Security Services, Inc. vs. Magdalino O.
Rivera, G.R. No. 202613, November 8, 2017, J. Caguioa)
261. What are the kinds of transfer?

A transfer means movement:

1. From one position to another of equivalent rank, level, salary, without a break in the service
(Coca-Cola Bottlers Philippines, Inc. vs. Del Villar, G.R. No. 163091, October 06, 2010 ); or
2. From one office to another within the same business establishment (Blue Dairy Corporation
vs. NLRC, G.R. No. 129843, September 14, 1999)

The prerogative to transfer is broad enough to include the following prerogatives that involve
movements of personnel:
1. Prerogative to reorganize;
2. Prerogative to promote; and
3. Prerogative to demote (Chan, Bar Reviewer on Labor Law, 2019)

262. What are the limitations in exercising the right to transfer?

There must be no demotion in rank or diminution of salary, benefits and other privileges and
not motivated by discrimination or made in bad faith or effected as a form of punishment or
demotion without sufficient cause (Pharmacia and Upjohn, Inc. vs. Albayda, Jr., G.R. No.
172724, August 23, 2010).

263. Distinguish promotion from demotion.

Promotion is the advancement from one position to another with an increase in duties and
responsibilities as authorized by law, and usually accompanied by an increase in salary.
Demotion, on the other hand, involves a situation where an employee, is relegated to a
subordinate or less important position constituting reduction to a lower grade or rank, with a
corresponding decrease in duties and responsibilities, and usually accompanied by a decrease
in salary (Poquiz, Labor Relations and Law on Dismissal with Notes and Comments, 2018, p.
439).

264. Is demotion a valid management prerogative?

Yes. The employer has the right to demote and transfer an employee who has failed to observe
proper diligence in his work and incurred habitual tardiness and absences and indolence in his
assigned work. Also, demotion may be validly imposed due to failure to comply with
productivity standards and quota (Petrophil Corp. vs. NLRC, G.R. No. L-64048, August 29,
1986).

265. Is refusal to obey a valid transfer order considered willful disobedience?

Generally, YES. Refusal to obey a valid transfer order constitutes willful disobedience of a lawful
order of an employer. Refusal to comply with such orders on the ground of parental obligations,
additional expenses, and the anguish he would suffer is away from his family is invalid (Allied
Banking Corporation vs. CA, G.R. No. 144412, November 18, 2003)

Exceptions:
a. When the transfer is consequential to a promotion. No law compels an employee to accept
a promotion (Dosch vs. NLRC, G.R. No. L-51182, July 5, 1983).
b. Transfer may also be validly refused if the transfer is an overseas assignment. Such cannot
be likened to a transfer from one city to another within the Philippines (Allied Banking
Corporation vs. CA, G.R. No. 144412, November 18, 2003).
 C. Productivity standards

266. What are the schemes used by employers to prescribe the standards of
productivity? Describe each.

The employer has the prerogative to prescribe the standards of productivity which may be
used as an incentive scheme, wherein employees who surpass the productivity standards or
quota are usually given additional benefits; and a disciplinary scheme, wherein employees may
be sanctioned or dismissed for failure to meet the productivity standards or quota (Chan, Bar
Reviewer on Labor Law, 2019, p. 807).

267. What are the procedures to determine standard output rates or piece rates?
Among the procedures, what is the preferred procedure?

The standard output rates or piece rates shall be determined through time and motion studies,
individual/collective agreement between employer and the workers as approved by the DOLE
Secretary or his authorized representative or consultation with representatives of employers’
and workers’ organization in a tripartite conference called by the DOLE Secretary (Chan, Bar
Reviewer on Labor Law, 2019, p. 809).

Among such procedures, time and motion study is the more scientific and preferred method.
The basis for the establishment of rates for piece, output or contract work is the performance
of an ordinary worker of minimum skill or ability. (Section 5(b), Rule VII-A, Book III, Rules to
Implement the Labor Code, as amended).

D. Bonus

268. What is a bonus?

Bonus is a gratuity or act of liberality of the giver. It is something given in addition to what is
ordinarily received by or strictly due the recipient (Protado vs. Laya Mananghaya & Co., G.R.
No. 16854, March 25, 2009). It is also an amount granted and paid to an employee for his
industry and loyalty which contributed to the success of the employer’s business and made
possible for the realization of profits. (Producer’s Bank of the Philippines vs. NLRC, G.R. No.
100701, March 28, 2001).

269. When does a bonus become a demandable obligation?

a. When it emanates from a contract or CBA (Grey vs. Insular Lumber Co., G.R. No. L-535,
September 28, 1935)
b. When it is given on account of company policy or practice (Manila Electric Company vs.
Secretary of Labor, G.R. No. 127598, January 27, 1999)
c. When it is made part of the wages; if given without any condition, whether or not profits
are realized (Metro Transit Organizations, Inc. vs. NLRC, G.R. No. 116008, July 11, 1995)
d. When the grant is mandated by law (Ungos III, Labor Law 3: The Fundamentals of Labor
Law Review, 2021, p. 175-176)

270. Lito was anticipating the bonus he would receive for 2013. Aside from the 13th
month pay, the company has been awarding him and his other co-employees a
two to three months bonus for the last 10 years. However, because of poor overall
sales performance for the year, the company unilaterally decided to pay only a
one-month bonus in 2013. Is Lito’s employer legally allowed to reduce the bonus?
BAR EXAM (2014)
 Yes, Lito’s employer is legally allowed to reduce the bonus. This is because the grant of bonus
is dependent upon the realization of profits, hence, not a demandable and enforceable
obligation. In this case, the poor overall sales performance of the year justified the company
in reducing the bonus (Ungos III, Labor Law 3: The Fundamentals of Labor Law Review, 2021,
p. 175).
E. Change of working hours

271. What is the management prerogative of changing working hours?

Management retains the prerogative, whenever exigencies of the service so require, to change
the working hours of its employees. So long as such prerogative is exercised in good faith for
the advancement of the employer's interest and not for the purpose of defeating or
circumventing the rights of the employees under special laws or under valid agreements, this
Court will uphold such exercise (Sime Darby Pilipinas vs. NLRC, G.R. No. 119205, April 15,
1998).

272. Employee X and Employer Z, a corporation with a legislative franchise to conduct

and operate horse races, entered into a collective bargaining agreement which
provides for a 7-hour work schedule from 9:00am to 12:00nn and from 1:00-
5:00pm on a work week from Mondays to Saturdays. In the same agreement, it was
indicated that the employer has the prerogative to change the existing methods
and their scheduled working hours. In accordance with such provision, the
employer changed the working hours of the monthly-paid employees from 9:00am-
5:00pm to 1:00pm-8:00pm every Tuesday and Thursday. Employer Z cited the
change in the program for horse races as reason for the adjustment of the work
schedule. Is the change of work schedule valid?

Yes. When the collective bargaining agreement was signed, the horse races started at 10am.
When the program for horse races changed to a later time, there was no other choice for the
management but to change the employees’ work schedule as there was no work to be done in
the morning. While it is true that Section 1, Article IV of the CBA provides for a 7-hour work
schedule from 9:00 a.m. to 12:00 noon and from 1:00 p.m. to 5:00 p.m. from Mondays to
Saturdays, Section 2, Article XI, however, expressly reserves on respondent the prerogative to
change existing methods or facilities to change the schedules of work. Evidently, the
adjustment in the work schedule of the employees is justified. (Manila Jockey Club Employees
Labor Union — PTGWO vs. Manila Jockey Club, Inc., G.R. No. 167760, March 7, 2007).

F. Bona Fide Occupational Qualifications

273. What is the Bona Fide Occupational Qualifications (BFOQ) rule?

BFOQ refers to the standard which employers are allowed to consider in making decisions
about hiring or retention of employees (Ungos III, Labor Law 3: The Fundamentals of Labor
Law Review, 2021, p. 490). It provides that employment may be limited to a particular class if
the employer can show that sex, religion or national origin is an actual qualification for
performing the job (Yrasuegui vs. Philippine Airlines, Inc., G.R. No. 168081, October 17, 2008).

274. What is the reasonable necessity rule?

In order to justify a BFOQ, the employer must show that:

1. The employment qualification is reasonably related to the essential operation of the job
involved; and
 2. 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 (Star Paper
Corporation, et. al. vs. Simbol, et. al., G.R. No. 164774, 2006).

275. What are the determining factors provided for in The Meiorin Test in assessing
whether or not a particular occupational requirement is a bona fide occupational
requirement?

The following conditions must be complied with to justify a BFOQ:

1. The employer must show that it adopted the standard 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 establish that the standard is reasonably necessary in order to
accomplish the legitimate work-related purpose (Yrasuegui vs. Philippine Airlines, Inc., G.R.
No. 168081, October 17, 2008).

G. Post-employment restrictions

276. What is a post-employment restriction?

It pertains to the employer’s right to insist on an agreement with the employee, for certain
restrictions to take effect after the termination of the employer-employee relationship (Chan,
Bar Reviewer on Labor Law, 2019, p. 822)

277. What are the principal grounds in declaring a contract in restraint of trade void,
being against public policy?

(1) The injury to the public by being deprived of the restricted party’s industry; and
(2) The injury to the party himself by being precluded from pursuing his occupation, and
thus being prevented from supporting himself and his family (Rivera vs. Solidbank, G.R.
No. 163269, April 19, 2006).

278. What are the factors to be considered by the trial court in determining whether the
contract in restraint of trade is reasonable?

a. Whether the covenant protects a legitimate business interest of the employer;

b. Whether the covenant creates an undue burden on the employee;
c. Whether the covenant is injurious to the public welfare;
d. Whether the time and territorial limitations contained in the covenant are reasonable;
and
e. Whether the restraint is reasonable from the standpoint of public policy ( Rivera vs.
Solidbank, supra).

279. What are valid post-employment restrictions?

The following stipulations in an employment contract are illustrative of the prohibitions

normally agreed upon by the employer and the employee:
1. Non-Compete Clause;
2. Confidentiality and Non-Disclosure Clause;
3. Non-Solicitation Clause;
4. Non-Recruitment or Anti-Piracy Clause;
5. Inventions Assignment Clause (Intellectual Property Clause) (Chan, Bar Reviewer on Labor
 Law, 2019, p. 822).

H. Clearance procedures

280. What is the management prerogative to impose clearance procedures?

Requiring clearance before the release of last payments to the employee is a standard
procedure among employers, whether public or private. Clearance procedures are instituted to
ensure that the properties, real or personal, belonging to the employer but are in the
possession of the separated employee, are returned to the employer before the employee’s
departure. (Milan vs. NLRC, G.R. No. 202961, February 4, 2015)

281. Company X allowed Employee A and his family to occupy a property it owned out
of liberality and for the convenience of Employee A on the condition that the latter
would vacate anytime the company deems fit. Years later, Company X ceased its
operation. As a result, it sent a notice to Employee A to vacate the property. The
company stated therein that they could only release the vacation and sick leave
benefits, 13 month pay and separation pay if they agree to vacate property already.
Can Company X withhold said benefits?

Yes, Company X may withhold such benefits as part of its clearance procedures. Although as
a general rule, employers are prohibited from withholding wages under Art. 116 of the Labor
Code, the law still supports the employers’ institution of clearance procedures before the
release of wages (Milan vs. NLRC, G.R. No. 202961, February 4, 2015). Art. 1706 of the Civil
Code provides taht the employer is authorized to withhold wages for debts due. Debt in this
case refers to any obligation due from the employee to the employer. It includes any
accountability that the employee may have to the employer. The return of the property’s
possession became an obligation or liability on the part of the employees when the employer-
employee relationship ceased (Milan vs. NLRC, supra). Thus, Company X has the right to
withhold Employee A’s wages and benefits because of this existing debt or liability.

282. When shall the employee’s final pay be released?

To effectively harmonize the management prerogative of the employer and the right of the
employee, the final pay shall be released within 30 days from date of separation or termination
of employment, unless there is a more favorable company policy, individual or collective
agreement thereto (Labor Advisory No. 06, Series of 2020).

I. Limitations on management prerogative; police power of the State

283. What are the limitations on the exercise of management prerogatives?

1. Limitations imposed by:

a. Law;
b. CBA;
c. Employment contract;
d. Employer policy;
e. Employer practice; and
f. General principles of fair play and justice.
2. It is subject to police power.
3. It should be done in good faith and with due regard to the rights of labor.
4. Its exercise should be without abuse of discretion.
 5. It should be done in good faith and with regard to the rights of labor ( Chan, Bar Reviewer
on Labor Law, 2019)

284. What is a reasonable proportionality rule?

Reasonable proportionality rule is a legal concept which provides that infractions committed by
an employer should merit only the corresponding penalty demanded by the circumstances. The
penalty must be commensurate with the act, conduct or omission imputed by the employee
(Holmium Philippines, Inc. vs. Obra, G.R. No. 220998, August 8, 2016).

285. Why should labor laws be deemed written in employment contracts?

Labor law provisions are deemed written in employment contract because such is impressed
with public interest. Parties are not at liberty to insulate themselves and their relationships
from the impact of labor laws and regulations by simply contracting with each other (Innodata
Philippines, Inc. vs. Quejada-Lopez, G.R. No. 162839, October 12, 2006).

VI. JURISDICTION AND RELIEFS

A. Mandatory conciliation-mediation, SENA

286. What is covered by Mandatory Conciliation-Mediation? Are there any exceptions?

All issues arising from labor and employment shall be subject to Mandatory Conciliation-
Mediation. (Art. 234, Labor Code, as amended)

Exceptions:
a. Grievance Machinery;
b. Voluntary Arbitration (in which case, their agreement shall govern);
c. Those as may be excepted by the DOLE Secretary.

287. What is the nature of Mandatory Conciliation-Mediation proceedings?

Non-litigious/non-adversarial, less expensive, and expeditious. Under this informal setup, the
parties find it more expedient to fully ventilate their respective positions without running around
with legal technicalities, and in the course thereof, afford them a wider latitude of possible
approaches to the problem (Frequently Asked Questions. Department of Labor and
Employment - National Conciliation Mediation Board. (n.d.). Retrieved September 14, 2022,
from https://ncmb.gov.ph/services/conciliation-mediation/.

288. What is Single-Entry Approach (SENA)?

An administrative approach to provide a speedy, impartial, inexpensive, and accessible

settlement procedure of all labor issues or conflicts, to prevent them from ripening into full-
blown disputes or actual labor cases. The objective is to effect amicable settlement of the
dispute among differing parties, wherein a neutral party, the SENA Desk Officer, assists the
parties by giving advice or offering solutions and alternatives. Settlement Agreements reached
are final and executory, and binding on all DOLE offices and attached agencies, except when
found to be contrary to law, morals, public order, and public policy. (DOLE DO No. 107-10)

289. What are the Labor Dispute Issues covered by SENA? What are not covered?

A. Covered (DOLE DO No. 107-10)

 a. Termination or suspension of employment issues;
b. Claims for any sum of money, regardless of amount;
c. Intra-union and Inter-union issues, after exhaustion of administrative remedies;
d. ULPs;
e. Closures, retrenchments, redundancies, temporary lay-offs;
f. OFW cases;
g. Any other claims or issues arising from Employer-Employee Relationship, except for
Occupational Safety and Health Standards, involving imminent danger situation,
danger occurrences or disabling injury, and/or Absence of Personal Protective
Equipment

B. Not Covered (DOLE DO No. 107-10)

a. Cases on Notices of Strikes or Lockouts, or on Preventive Mediation cases (NCMB);
b. Interpretation and Implementation of CBA (Grievance Machinery)

B. Labor Arbiter

290. What are the cases under the Original and Exclusive Jurisdiction of Labor Arbiters?

a. Unfair Labor Practice;

b. Termination Disputes;
c. Cases that workers may file involving wages, rates of pay, hours of work, and other terms
and conditions of employment, if accompanied with a claim for reinstatement;
d. Claims for actual, moral, exemplary, and other forms of damages arising from Employer-
Employee Relations;
e. Cases arising from violation of Art. 279 of the Labor Code, as amended, including questions
involving the legality of strikes and lockouts;
f. All other claims arising from Employer-Employee Relations, involving an amount exceeding
P5,000 regardless if accompanied by a claim for reinstatement, except claims for
Employees Compensation, Social Security, Medicare, and Maternity Benefits ( Art. 224,
Labor Code, as amended);
g. Money Claims arising out of Employer-Employee Relationship or by virtue of any law or
contract, including damages and employment termination under the amended Migrant
Workers and Overseas Filipino Act;
h. Wage distortion disputes in unorganized establishments, unsettle voluntarily by the parties
(Art. 124, Labor Code, as amended);
i. Enforcement of Compromise Agreements when there is non-compliance by the parties (Art.
233, Labor Code, as amended);
j. Other cases as may be provided by law

291. What are the exceptions to the Jurisdiction of Labor Arbiters?

A. Assumed Cases
When the DOLE Secretary or the President exercises his power to assume jurisdiction over
cases involving national interest and decides upon such. ( Art. 278[g], Labor Code, as
amended)
B. Certified Cases
When the NLRC exercises its power of Compulsory Arbitration over cases involving national
interest, certified to it by the DOLE Secretary. (Art. 278[g], Labor Code, as amended)
C. Cases arising from the Collective Bargaining Agreement (CBA)
When cases arise from the interpretation or implementation of CBAs, and from the
interpretation or enforcement of company personnel policies, these shall be disposed of by
the LA by referring the same to the grievance machinery and voluntary arbitration, as
 provided. (Par. C, Art. 224, Sec. 1, Rule V, 2011 NLRC Rules of Procedure)
D. Cases submitted for Voluntary Arbitration
When the parties agree to submit the case to voluntary arbitration, before a Voluntary
Arbitrator or a panel of Voluntary Arbitrators, such are possessed of original and exclusive
jurisdiction to hear and decide cases mutually submitted by the parties. (UST Faculty Union
vs. UST, G.R. No. 203957, July 30, 2014)

292. Can non-lawyers appear before the Labor Arbiter?

Yes. Non-lawyers can appear before the Labor Arbiter (1) when they represent themselves, or
(2) if they represent their organization or members thereof. (Art. 227, Labor Code as amended;
Rule III, Section 6, 2011 NLRC Rules of Procedures)

293. What kind/s of damages does the Labor Arbiter have the jurisdiction to award?

The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide claims for
actual, moral, exemplary, and other forms of damages arising from Employer-Employee
Relations. (Art. 224[a][4], Labor Code, as amended)

C. National Labor Relations Commission

294. What are the different kinds of Jurisdiction of the NLRC?

A. Exclusive Original Jurisdiction

a. Certified labor disputes causing or likely to cause a strike or lockout in an industry
indispensable to national interest, certified by the Secretary of the DOLE or the
President of the Philippines for compulsory arbitration (Art. 278[g], Labor Code, as
amended);
b. Injunction in ordinary labor disputes to enjoin or restraint any actual or threatened
commission of any or all prohibited or unlawful acts, or to require performance of a
particular act in any labor dispute which, if not restrained or performed therewith, may
cause grave or irreparable damage to any party ( Art. 225[e], Labor Code, as
amended);
c. Injunction in strikes or lockouts under Art. 279 of the Labor Code, as amended;
d. Petition for extraordinary remedies from orders or resolutions of Labor Arbiters
(including those issued during execution proceedings) (Rule XII, Sec. 1, 2011 NLRC
Rules of Procedure, as amended by En Banc Resolution No. 07-14, Series of 2014; En
Banc Resolution No. 01-17, Series of 2017)

B. Exclusive Appellate Jurisdiction

a. All cases decided by the LA under Art. 224 of the Labor Code, as amended, and Sec.
10 of R.A. 8042 (Migrant Workers Act);
b. Cases decided by the Regional Offices of the DOLE, in the exercise of its adjudicatory
function over monetary claims of workers, amounting to not more than P5,000 and
not accompanied by a claim for reinstatement;
c. Contempt cases decided by the LA

NOTE: No Appellate Jurisdiction over Decisions rendered by:

a. Voluntary Arbitrator;
b. Secretary of DOLE;
c. BLR Director, on cases appealed from the DOLE Regional Offices
295. What are the powers and functions of the NLRC?

A. En Banc
a. No adjudicatory power;
b. The NLRC does not sit en banc to hear and decide cases;
c. Promulgating rules and regulations, and governing the hearings and disposition of
cases before any of its divisions and regional branches;
d. Formulating policies affecting its administration and operations;
e. On temporary or emergency basis, to allow cases within the jurisdiction of any division
to be heard and decided by any other division, whose docket allows the additional
workload and such transfer will not expose litigants to unnecessary additional expense
(Art. 220, Labor Code, as amended)

B. Division (8 Divisions with 3 members)

a. Each division shall have one (1) representative from the Employer’s sector Employee’s
sector, and public sector;
b. The representative from the public sector will act as the Presiding Commissioner;
c. Adjudicatory;
d. All other powers, functions, and duties;
e. Has exclusive appellate jurisdiction over cases within their respective territorial
jurisdiction (Art. 220, Labor Code, as amended)

NOTE: An individual Commissioner does not have adjudicatory power. The Commission shall
exercise its adjudicatory and all other powers, functions, and duties through its divisions. (Art.
220, Labor Code, as amended)

296. What are the requisites for perfection of appeal to the NLRC?

a. Observance of the reglementary period;

b. Payment of appeal and legal research fee (Proof of payment needed);
c. Filing of Memorandum of Appeal;
d. Proof of Service to the other party;
e. Posting of cash, property, or surety bond in cases of monetary awards ( Sec. 4, Rule VI,
2005 Revised Rules of Procedure of the NLRC)

D. Judicial review of labor rulings

297. Discuss the Hierarchy of Labor Courts (where to file an appeal).

Agencies and Courts

SUPREME COURT SUPREME SUPREME COURT SUPREME

RULE 45 COURT RULE 45 COURT
RULE 45 RULE 45

COURT OF COURT OF COURT OF COURT OF

APPEALS APPEALS APPEALS APPEALS
Rule 65 Rule 65 Rule 65 Rule 43
 petition shall be filed petition shall be petition shall be within 15 days
not later than 60 filed not later than filed not later than from notice of the
A days from notice of 60 days from 60 days from notice award, judgment,
P the judgment, order notice of the of the judgment, final order or
PE or resolution; or judgment, order or order or resolution; resolution
AL from notice of the resolution; or from or from notice of the
denial of the motion notice of the denial denial of the motion
T of the motion
O File MR File MR
File MR

NLRC BLR DIRECTOR DOLE SECRETARY VOLUNTARY No

ARBITRATOR ap
within 10 days from within 10 days within 10 days from pe
receipt of decision from receipt of receipt of decision grievances must be al
decision settled within 7 or
calendar days from cer
submission; tio
otherwise will be rar
automatically i
referred to (as
voluntary it is
arbitration not
a
qu
asi-
jud
icia
l
bo
dy)

LABOR ARBITER MED-ARBITER* REGIONAL GRIEVANCE NC

DIRECTOR** MACHINERY MB

NOTE: *Decisions of Med-arbiters in INTER-UNION disputes are directly appealable to the DOLE
SECRETARY and not the BLR Director.

**Decisions of the Regional Director involving small money claims are appealable to the NLRC; and
decisions of the same for voluntary arbitration in their capacity as ex-officio voluntary arbitrators (EVA)
are appealable to the CA, by way of Rule 43.

298. Are rulings rendered by the NCMB cognizable by the Court of Appeals?

NO. Action through a Rule 43 petition with the Court of Appeals applies only to awards,
judgments, final orders or resolutions of or authorized by any quasi-judicial agency in the
exercise of its quasi-judicial functions. Hence, NCMB’s decision, not having been rendered by a
quasi-judicial body, cannot be elevated to the Court of Appeals under said rule. (Tabigue vs.
International Copra Export Corporation, G.R. No. 183335, December 23, 2009)
 E. Bureau of Labor Relations

299. What is a Med Arbiter?

A Med Arbiter is an officer in the DOLE Regional Office or in the BLR authorized to hear and
decide representation cases, inter-union or intra-union disputes and other related labor
relations dispute (Sec. 1[ii], Rule 1, Book V, Rules to Implement the Labor Code, as amended)

300. When does the BLR Director have exclusive appellate jurisdiction?

The BLR Director has exclusive appellate jurisdiction over the following:

1. All decisions of the Med-Arbiter in (1) intra-union disputes, and (2) other related labor
relation disputes (Sec. 1[1], Rule III, NCMB Manual of Procedures for Conciliation and
Preventive Mediation Cases).

2. Decisions by the DOLE Regional Directors in the following cases relevant and related to
labor relations:

a. Visitorial cases under Art. 289 [274], involving examination of books of accounts of
independent unions, local chapters/chartered local and workers’ associations (Rule II,
Rules of Procedure on Mediation-Arbitration)

b. Union registration-related cases such as denial of application under Art. 243 [236]
(Labor Code), and revocation or cancellation (Art. 245 [238], Labor Code) of
registration of said unions

c. Notice of merger, consolidation, affiliation, and change of name of said unions and or
petition for denial thereof (Sec. 5, Rule IV, Book V, Rules to Implement the labor Code,
as amended)

301. What is the rule on appeal on unorganized establishments?

Appeal may only be made to the DOLE Secretary in case of denial of the petition within 10
days from the receipt of the decision of denial (DO 40-F-03, Series of 2008)

F. National Conciliation and Mediation Board

302. What is Preventive Mediation?

Preventive Mediation covers potential labor disputes that are the subject of a formal or informal
request for conciliation and mediation assistance sought either or both parties or upon the
initiative of the NCMB to avoid the occurrence of actual labor disputes and in order to remedy,
contain or prevent its degeneration into a full-blown dispute (Rule III, NCMB Manual).

303. How do you initiate a preventive mediation?

A preventive mediation may be initiated by filing a notice or request of preventive mediation

or by conversion of the notice of strike/lockout into a preventive mediation case .(Chan, Bar
Reviewer on Labor Law, 4th Revised Edition, 2019, p. 939)
304. What are the instances when the NCMB has the authority to convert a notice of
strike/lockout into a preventive mediation case?

a. when the issues raised in the notice of strike/lockout are not strikeable in character;
b. when the party which filed the notice of strike/lockout voluntarily asks for the conversion;
c. when both parties to a labor dispute mutually agree to have it subjected to preventive
mediation proceeding. (Chan, Bar Reviewer on Labor Law, 4th Revised Edition, 2019, p.
940)

G. POEA

305. What are the instances when the POEA exercises original and exclusive
jurisdiction?

The Administration exercises original and exclusive jurisdiction in all cases which are
administrative in character, involving or arising out of violations of recruitment rules and
regulations, including refund of fees collected from OFWs and any violation of the conditions
for the issuance of the license to recruit OFWs. It shall also exercise jurisdiction over
administrative cases against OFWs and principal/employers, excluding money claims (Rule I,
Part. VI, Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Land based Overseas Filipino Workers of 2016)

306. What is the rule on the conciliation of complaints with the POEA?

The POEA or the Philippine Overseas Labor Office (POLO) shall mandatorily conciliate any
complaint involving an OFW, licensed recruitment agency, or principal/employer relating to
overseas employment. In case of failure to arrive with a settlement, the complaint shall be
endorsed to the appropriate office. (Section 139, Rule II, Revised POEA Rules and Regulations
Governing the Recruitment and Employment of Land based Overseas Filipino Workers of 2016)

307. What is the period to appeal the decisions of the POEA?

The aggrieved party may appeal to the DOLE Secretary within 15 calendar days from receipt
of a copy of the decision. (Section. 185, Rule VII, Revised POEA Rules and Regulations
Governing the Recruitment and Employment of Land based Overseas Filipino Workers of 2016)

H. DOLE Regional Directors

308. What is the jurisdiction of the DOLE Regional Directors?

1. Visitorial power. (Art. 128, Labor Code, as amended)

2. Simple Money Claims not exceeding Php 5,000. (Art. 129, Labor Code, as amended)
3. Violation of the constitution & by–laws and rights & conditions membership. (Sec 1, Rule
VIII, Book V, Rules to Implement the Labor Code).
4. Inter-union and intra-union disputes and all disputes arising from or affecting labor-
management relations in all workplaces, except those arising from the implementation or
interpretation of CBAs. (Poquiz, Labor Relations and Law on Dismissal, p. 96, 2018).
 Small money claims
In re: Art 128 (b), as amended by RA 7730

DOLE Regional Director Labor Arbiter

Amount of Money claims amounting to P5,000 Money claims exceeding P5,000

claim and below (Art 129, Labor Code) (Art 224 (217), Labor Code)

Source of claim Originate from complaints would only apply in the course of
regular inspections undertaken by
the DOLE
(People’s Broadcasting Service (BOMBO RADYO PHILS., Inc.) vs. Secretary of DOLE, et al.,
G.R. No. 179652, March 6, 2012)

309. What are the requisites to divest jurisdiction from DOLE Regional Directors and his
representative/s? (Exception Clause)

a. that the employer contests the findings of the labor regulations officer and raises issues
thereon;
b. that in order to resolve such issues, there is a need to examine evidentiary matters; and
c. that such matters are not verifiable in the normal course of inspection.
(Meteoro, et al. vs. Creatives Creatures, Inc., G.R. No. 171275, July 13, 2009)

310. Explain the extent of the DOLE's authority to determine existence of employment
relationship.

The DOLE must have the power to determine whether or not an employer-employee
relationship exists, and from there to decide whether or not to issue compliance orders in
accordance with Art. 128(b) of the Labor Code, as amended by RA 7730.
If the DOLE makes a finding that there is an existing employer-employee relationship, it takes
cognizance of the matter, to the exclusion of the NLRC. The DOLE would have no
jurisdiction only if the employer-employee relationship has already been
terminated, or it appears, upon review, that no employer-employee relationship
existed in the first place. (People’s Broadcasting Service (BOMBO RADYO PHILS., Inc.) vs.
Secretary of DOLE, et al., G.R. No. 179652, March 6, 2012)

I. DOLE Secretary

311. When does the DOLE Secretary have original jurisdiction?

a. Petition to assume jurisdiction over labor disputes affecting industries indispensable to the
national interest (par. (g), Art. 278 [263], Labor Code)
b. Petition to certify national interest cases to the NLRC for compulsory arbitration ( par. (g),
Art. 278 [263], Labor Code, as amended)
c. Petition to suspend effects of termination (par. (b), Art 292 [277], Labor Code, as
amended)
d. Administrative Intervention for Dispute Avoidance (AIDA) cases (DOLE Circular No 1, Series
of 2006)
- This is a new form of dispute settlement introduced by the DOLE Secretary under DOLE
Circular No. 1, Series of 2006, issued on August 11, 2006 by former DOLE Secretary
Arturo D. Brion, later a distinguished member of the Highest Court.
- This was issued in line with the objectives of R.A. No. 9285, otherwise known as the
 “Alternative Dispute Resolution Act of 2004” [approved on April 2, 2004], Executive Order
No. 523 dated April 07, 2006 and the mandate of the DOLE to promote industrial peace.
e. Voluntary arbitration cases (DOLE Circular No 1, Series of 2006)
f. Contempt cases (Art 231, Labor Code, as amended)
- In the exercise of his power under this Code, the secretary of Labor may hold any person
in direct or indirect contempt and impose the appropriate penalties therefor.

312. What are the 3 kinds of powers of the DOLE Secretary under Article 128 of the
NLRC?

a. Visitorial and Inspection Power

i. Access to employer‘s records and premises at any time of the day or night,
whenever work is being undertaken;
ii. To copy from said records
iii. Question any employee and investigate any fact, condition, or matter which may
be necessary to determine violations or which may aid in the enforcement of the
Labor Code and of any wage order, rules, and regulations issued pursuant thereto.

b. Enforcement Power
i. Issue compliance orders
ii. Issue writs of execution for the enforcement of their orders, except in cases where
the Employer contests the findings of the labor officer and raise issues supported
by documentary proof which were not considered in the course of inspection
iii. Order stoppage of work or suspension of operation when non- compliance with
the law or implementing rules and regulations poses grave and imminent danger
to health and safety of workers in the workplace.
iv. Require Employers to keep and maintain such employment records as may be
necessary in aid to the visitorial and enforcement powers.
v. Conduct hearings within 24 hours to determine whether:
1. An order for stoppage of work or suspension of operations shall be lifter
or not; and
2. Employer shall pay the concerned Employees their salaries in case the
violation is attributable to his fault (As amended by RA 7730); (Guico vs.
Secretary, G.R. No. 131750, November 16, 1998).

c. Appellate power or power to review - exercised by the DOLE Secretary in respect to any
decision, order, or award issued by the DOLE Regional Directors

J. Grievance machinery

313. How many days should grievances be settled until they are automatically referred
to voluntary arbitration prescribed in the CBA?

Within seven calendar days from the date of submission for resolution (Art. 273, Labor Code,
as amended).

K. Voluntary Arbitrator

314. Who is a voluntary arbitrator?

A Voluntary Arbitrator is any person accredited by the Board as such or any person named or
designated in the CBA by the parties to acts as their Voluntary Arbitrator, or one chosen with
or without the assistance of the National Conciliation and Mediation Board, pursuant to a
 selection procedure agreed upon in the Collective Bargaining Agreement, or any official that
may be authorized by the Secretary of Labor and Employment to act as Voluntary Arbitration
upon the written request and agreement of the parties to a labor dispute (Art. 219 [n], Labor
Code, as amended).

315. What matters may a voluntary arbitrator decide upon?

Generally, the arbitrator is expected to decide only those questions expressly delineated by the
submission agreement. Nevertheless, the arbitrator can assume that he has the necessary
power to make a final settlement since arbitration is the final resort for the adjudication of the
disputes. (Ludo and Luym Corp. vs. Saornido, G.R.No. 140960, January 20, 2003).

316. When may grievance be elevated to voluntary arbitration?

All grievances submitted to the grievance machinery which are not settled within seven (7)
calendar days from the date of their submission for resolution should automatically be referred
to voluntary arbitration prescribed in the CBA. The 7-day calendar period is usually reckoned
from the date of their submission for resolution to the last step of the internal grievance
machinery. Hence, only after exhausting all the internal procedures and only after the lapse of
this period that unsettled or unadjusted grievances should automatically be referred to
voluntary arbitration enunciated in the CBA (Art. 273, Labor Code, as amended).

317. What is the flow of Voluntary Arbitration?

 JURISDICTION TABLE SUMMARY

LABOR ARBITER DOLE REGIONAL NLRC

DIRECTORS

1. ULP 1. Visitorial power. (Art. 128, ORIGINAL

2. Termination disputes Labor Code, as amended) JURISDICTION
3. Claims for wages, rates of 2. Simple Money Claims not 1. Injunction in ordinary
pay, hours of work and other exceeding Php 5,000. (Art. labor disputes to enjoin or
terms and conditions of 129, Labor Code, as restrain any actual or
employment – if accompanied amended) threatened commission of
with a claim for reinstatement 3. Violation of the any or all prohibited or
4. Claims for actual, moral, constitution & by–laws unlawful acts or to require
exemplary and other forms of and rights & conditions the performance of a
damages arising from membership. (Sec 1, Rule particular act in any labor
employer-employee (ER-EE) VIII, Book V, Rules to dispute which, if not
relationship Implement the Labor Code). restrained or performed
5. Cases arising from 4. Inter-union and intra- forthwith, may cause
prohibited activities during union disputes and all grave or irreparable
strikes, including questions disputes arising from or damage to any party
involving the legality of strikes affecting labor- 2. Injunctions in strikes or
and lockouts management relations in lockouts under Art. 279
6. All other claims arising from all workplaces, except 3. Certified labor dispute
ER-EE relationship involving an those arising from the casing or likely to cause a
amount exceeding P5000 implementation or strike or lockout in an
regardless of whether interpretation of CBAs. industry indispensable to
accompanied by a claim for (Poquiz, Labor Relations and the national interest,
reinstatement except claims for Law on Dismissal, p. 96, certified to it by the DOLE
2018).
ECC, SSS, Medicare, & Secretary for compulsory
maternity benefits arbitration
7. Wage distortion cases in
unorganized establishments EXCLUSIVE
8. All monetary claims of OFWs APPELLATE
arising from EER or by virtue of JURISDICTION
any law or contract involving 1. All cases decided by the
Filipino workers for overseas LAs, including contempt
deployment, including claims cases
for actual, moral, exemplary 2. Cases decided by the
and other forms of damages DOLE Regional Directors
(RA 8042) or his duly authorized
9. Enforcement of compromise hearing officers involving
agreements when there is non- recovery of wages, simple
compliance by any of the money claims and other
parties pursuant to Art. 233 of benefits not exceeding
the Code (Sec. 1, Rule V, 2005 Php 5,000 and not
NLRC Rules) accompanied by a claim
for reinstatement.

NCMB BUREAU OF LABOR VOLUNTARY

 RELATIONS ARBITRATORS

1. Conciliation 1. Inter-union and intra-union 1. Grievances arising from

2. Mediation conflicts the implementation or
3. Voluntary arbitration 2. All disputes, grievances or interpretation of CBAs
problems arising from or Note: Grievances must be
affecting labor-management processed through
relations in all workplaces grievance machinery; only
EXCEPT those arising from the unresolved grievances go
implementation or to the VA.
interpretation of the CBA 2. Arising from
which shall be the subject of interpretation or
grievance procedure and/or enforcement of company
voluntary arbitration personnel policies
3. Complaint involving 3. Wage distortion issues
federations, national unions, arising from the
industry unions, its officers or application of any wage
member organizations orders in organized
4. Appellate jurisdiction over establishments
inter/intra union disputes 4. Arising from
involving company level interpretation and
unions, originally decided by implementation of the
Regional Office. productivity incentive
programs under RA 6971
5. Any other labor
disputes upon agreement
by the parties.

DOLE SECRETARY COURT OF APPEALS SUPREME COURT

Art. 128. Visitorial and VIA RULE 65 Appeal from CA to SC

Enforcement Power. The only mode by which a should be under Rule 45
Power of the Sec. of Labor labor case decided by any of (Petition for Review on
or his duly authorized the following labor Certiorari) and not Rule
representative, including authorities/tribunals may 65 (Special Civil Action for
labor regulation officers to: reach the Court of Appeals is Certiorari). (Sea Power
1. Have access to through a Rule 65 petition for Shipping Enterprises, Inc.
employer’s records and certiorari. vs. CA, 2001)
premises at any time of the 1. DOLE Secretary;
day or night whenever 2. Commission (NLRC); and
work is being undertaken 3. Director of the Bureau of
therein Labor Relations (BLR) in cases
2. Right to copy records decided by him in his
3. To question any appellate jurisdiction (as
employee distinguished from those he
4. Investigate any fact, decides in his original
condition, or matter which jurisdiction which are
may be necessary to appealable to the DOLE
determine violations or Secretary).
which may be necessary to
aid in enforcement of the EXCEPTION: RULE 43
Labor Code or any labor Decisions, orders or awards
 law or order issued by the Voluntary
5. Issue compliance orders Arbitrator or panel of
to give effect to labor Voluntary Arbitrators
legislation based on the
findings of employment
and enforcement officers
or industrial safety
engineers made in the
course of inspection
6. Issue writs of execution
to the appropriate
authority for the
enforcement of their
orders, EXCEPT in cases
where the employer
contests the findings of the
labor employment and
enforcement officer and
raises issues supported by
documentary proofs which
were not considered in the
course of inspection – in
the latter case, the case
will have to be forwarded
to a Labor Arbiter

L. Prescription of actions

318. What is the prescriptive period of money claims, illegal dismissal, unfair labor
practices, offenses under the labor code, and illegal recruitment?

Money Claims Within 3 years from the time the cause of action occured

Art 306 (1), Labor Code (Money Claims) - All money claims arising
from employer-employee relations accruing during the effectivity of this
Code shall be filed within three (3) years from the time the cause of action
accrued; otherwise they shall forever be barred. XXX

ex. any of the prohibited activities during strikes or lockouts,

unfair labor practices, and illegal recruitment activities

Includes all kinds of money claims arising from ER-EE Relationship,

including claims for unpaid retirement/separation benefits (De Guzman
vs. Court of Appeals, G.R. No. 132257, October 12, 1998)

Illegal Within 4 years for money claims consequent to an illegal dismissal (ex.
Dismissal backwages) as provided in Art. 1146, New Civil Code (Arriola vs. Pilipino
Star Ngayon, Inc., G.R. No. 175689, August 13, 2014)

Art. 1146, New Civil Code. The following actions must be instituted
within four years:
 (1) Upon injury to the rights of the plaintiff[.]

Unfair Labor Within 1 year from accrual of such unfair labor practice
Practice
Art 305 (2), Labor Code (Offenses) - All unfair labor practices arising
from Book V shall be filed with the appropriate agency within one (1) year
from accrual of such unfair labor practice; otherwise, they shall be forever
barred.

Offenses Under Within 3 years from the commission

the Labor Code
Art 305 (1), Labor Code (Offenses) - Offenses penalized under this
Code and the rules and regulations issued pursuant thereto shall
prescribe in three (3) years.

Illegal Within 5 years for Illegal Recruitment Cases under RA 8042 (Migrant
Recruitment Worker’s Act) (Sec 12, RA 8042)

Within 20 years for illegal recruitment cases involving economic

sabotage (Sec 12, RA 8042 - Migrant Worker’s Act)