LABOR LAW

What is Labor?

 As an act: Exertion by human beings of physical or mental

efforts, or both, towards the production of goods and
services.
 As a sector of society: That sector or group in a society,
which derives its livelihood chiefly from rendition of work
or services in exchange for compensation under managerial
direction (Mendoza, 2001).
 Refers to workers, whether agricultural or non-agricultural
Note:

 The Labor Code articles cited here are those that are
numbered according to the Codal of Rex Bookstore, 2013
edition. The renumbering accommodated the revisions
introduced to the Code by RA 10151. If you are using an
older codal version, just subtract six from the article number
(e.g., ULP of employers in the 2013 Rex codal is Art. 254.
Old number is Art. 248)
Preliminary Discussions
CONSTITUTIONAL MANDATES ON LABOR, LABOR LAW
LABOR LEGISLATION, SOCIAL LEGISLATION
Constitutional Mandates on
Labor
The State shall protect and promote the interests of the Filipino
Laborer:

Art. II, Sec. 9. The State shall promote a just and dynamic social
order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a
rising standard of living and improved quality of life for all.

Art. II, Sec. 18. The State affirms labor as a primary social
economic force. It shall protect the rights, of workers and
promote their welfare.
Constitutional Mandates on
Labor
The State shall protect and promote the interests of the
Filipino Laborer:

Art. XII, Sec. 12. The State shall promote the preferential use
of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them competitive.
 
Art XIII, Sec. 14. The State shall protect women by providing
safe and healthful working conditions, taking into account
their maternal functions, and such facilities and opportunities
that will enhance their welfare and enable them to realize their
full potential in the service of the nation.
 
Constitutional Mandates on
Labor
Rights of Workers
Art. Ill, Sec. 8. The right of the people, including
those employed in the public and private sectors, to
form unions, associations, or societies for purposes
not contrary to law, shall not be abridged.
(formation of labor organizations)

Art. Ill, Sec. 18(2). No involuntary servitude in any

form shall exist except as a punishment for a crime
whereof the party shall have been duly convicted.
Constitutional Mandates on
Labor
Protection to Labor Clause

Art. XIII, Sec. 3 The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
 
It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work,
and a living wage. They shall also participate in policy and decision-
making process affecting their rights and benefits as may be
provided by law.
Participation in Policy and
Decision Making Processes
 Phrase included in the 1987 constitution to highlight
worker’s participation in policy-making;
 Added in the Labor Code
 Article 217, Declaration of Policy
 Article 261, Exclusive Bargaining Representation and
Worker’s Participation in Policy and Decision-Making
Constitutional Mandates on
Labor
Protection to Labor Clause

Art. XIII, Sec. 3 , cont.  

The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of voluntary
modes in settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and

employers, recognizing the right of labor to its just share in the fruits
of production' and the right of enterprises to reasonable returns of
investments, and to expansion and growth.
Commit Art. XIII, Sec. 3 to
memory!
Defines rights of workers under Labor Standards and Labor Relations:
Under Labor Standards Under Labor Relations
 Security of Tenure;  Self-organization
 Living wage;  Collective bargaining and
negotiations
 Share in the fruits of production; and
 Peaceful concerted activities,
 Humane conditions of work.
including strike;
 Participation in policy and decision-
making processes.
Social, Labor and Welfare
Legislation
 Constitutional provisions on labor are not self-executory, hence the
need for Social Legislation, Labor Legislation and Welfare
Legislation
 Social Legislation - Laws that provide particular kinds of protection
or benefits to society or segments thereof in furtherance of social
justice.
 Labor Legislation - Statutes, regulations and jurisprudence
governing the relations between capital and labor. It provides for
certain employment standards and a legal framework for negotiating,
adjusting and administering those standards and other incidents of
employment.
 Welfare Legislation - Provides for the minimum economic security,
of the worker and his family in case, of loss of earnings due to death,
old age, disability, dismissal, injury or disease.
 Social Legislation and Labor
Legislation, Distinguished
  Labor Legislation Social Legislation

Effect to Employment Directly affects employment Governs the effects of employment

Designed to meet the daily needs

Purpose Involves long range benefits
of workers

Covers employment for profit or Covers employment for profit and

Coverage
gain non-profit
Effect to Employee Affects work of employee Affects life of employee
Benefits are paid by the worker’s Benefits are paid by government
Payor
employer agencies

Social legislation encompasses labor legislation, thus is broader in scope than the latter.
All labor laws are social legislations but not all social legislations are labor laws.
Labor Law, defined.

 The law governing the rights and duties of employers and

employees with respect to Labor Standards and Labor
Relations.
 Labor Standards Law deals with the minimum standards
as to wages, hours of work and other terms and conditions
of employment that employers must provide their
employees.
 Labor Relations Law defines the status, rights and duties
as well as the institutional mechanisms that govern the
individual and collective interactions between employers,
employees and their representatives.
The Philippine Labor Code, and
Other Laws
 Presidential Decree No. 442
 Deals with Labor Standards and Labor Relations
 Became effective November 1, 1974
 Special Laws:
a. Laws on Social Security (SSS Law, GSIS Law, Limited Portability Law (RA 7699)
b. National Health Insurance Act
c. Paternity Leave Act
d. Retirement Pay Law
e. Home Mutual Development Fund Law
f. Anti-Sexual Harassment Act
g. Anti-Child Labor Act
h. 13th Month Pay Law
i. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. No. 8042, as amended by RA 10151)
j. Expanded Comprehensive Agrarian Reform Law
k. Magna Carta for Public Health Workers
The Philippine Labor Code, and
Other Laws
 Labor-related provisions in Other Laws

Civil Code
a. Art. 1700. The relation 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.
b. Art. 1701. Neither capital nor labor shall act oppressively against the other,
or impair the interest or convenience of the public.
c. Art. 1702. In case of doubt, all labor legislations and all labor contracts
shall be construed in favor of the safety and decent living for the laborer.
d. Art. 1703. No contract which practically amounts to involuntary servitude,
under any guise whatsoever, shall be valid.
The Philippine Labor Code, and
Other Laws
 Labor-related provisions in Other Laws

Revised Penal Code

a. Art. 289. Formation, maintenance and prohibition of
combination of capital or labor through violence or threats. —
The penalty of arresto mayor and a fine not exceeding 300
pesos shall be imposed upon any person who, for the purpose
of organizing, maintaining or preventing coalitions of capital
or labor, strike of laborers or lock-out of employees, shall
employ violence or threats in such a degree as to compel or
force the laborers or employers in the free and legal exercise
of their industry or work, if the act shall not constitute a more
serious offense in accordance with the provisions of this Code.
The Aim and Basis of Labor
Laws
 Attainment of Social Justice
 Balance the interest of labor and capital (eliminate oppression)
 Labor is afforded a greater measure of protection
 There is greater supply of labor than demand for their services;
 Those who have less in life should have more in law;
 The need for employment by labor comes from vital, and even
desperate necessity (survival);
Social Justice

“Social justice is … 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
people, the adoption by the government of measures calculated to
ensure economic stability of all the component elements of the
society through the maintenance of 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.”

(Calalang v. Williams, No. 47800, December 2, 1940).

Basic Principles
PRELIMINARY DISCUSSIONS ON THE LABOR CODE
What are the basic principles in the
constitution and labor-related laws on
protection
 The state shallto labor?
afford full protection to labor, promote full employment,
equal work opportunities without bias or discrimination, regulate the
relations of employers and employees, and assure workers rights (refer to
protection to labor clause Art. XIII, Sec. 3, 1987 Const. & Art. 3, Labor
Code);
 The relation of capital and labor are impressed with public interest, hence
employment contracts are not ordinary contracts (Art. 1700, NCC);
What are the basic principles in the
constitution and labor-related laws on
protection
 toorlabor?
In case of doubt ambiguity, labor laws and rules are to be construed in
favor of labor (Art. 4, Labor Code, Art. 1702, Civil Code)
 IF THERE IS DOUBT as to the meaning of the legal and contractual provision,
the above-mentioned applies.
 IF THE PROVISION IS CLEAR AND UNAMBIGUOUS, it must be applied
in accordance with its express terms. (Meralco v. NLRC, GR No. 78763, July
12, 1989).
 The law also recognizes that management has rights which are also entitled to
respect and enforcement in the interest of fair play (St. Luke's Medical Center
Employee's Assoc, v. NLRC, GR No. 162053, March 7, 2007).
Why the preference for labor
over capital?
 Comes from acknowledgement that capital wields more
power than labor;
 (Sanchez v. Harry Lyons Construction Inc., GR No. L-2779,
October 18, 1950).
 There is greater supply than demand for labor;
 Those who have less in life should have more in law; and
 The need for employment by labor comes from vital, and even
desperate necessity (survival)
To whom does the Labor Code apply?

General Rule: The Code applies to all workers, whether agricultural or non-agricultural,
including employees in a government corporation incorporated under the corporation code;

Exceptions:
1. Government employees;
2. Employees of government Corporations created by special or original charter;
3. Foreign governments;
4. International Agencies, employees of intergovernmental or international organizations;
5. Corporate officers/Intra-corporate disputes which fall under PD 902-A and now fall
under the jurisdiction of, the Regular Courts pursuant to the Securities Regulation Code;
and
6. Local water districts except where NLRC jurisdiction is invoked.
Cases

 Government employees;
 Employees of government Corporations created by special or original charter (Juco v.
NLRC, GR No. 98107, August 18, 1997);
 Foreign governments (JUSMAG-Philippines v. NLRC, GR No. 108813, December 15,
1994);
 International Agencies (Lasco v. UNRFNRE, GR Nos. 109095-109107, February 23,
1995), employees of intergovernmental or international organizations (SEAFDEC-AQD
v. NLRC, GR No. 86773, February 14, 1992);
 Corporate officers / Intra-corporate disputes which fall under PD 902-A and now fall
under the jurisdiction of, the Regular Courts pursuant to the Securities Regulation Code
(Nacpil v. IBC, GR No. 144767, March 21, 2002); and
 Local water districts (Tanjay Water District v. Gabaton, GR Nos. 63742 and 84300, 17
April 1989) except where NLRC jurisdiction is invoked (Zamboanga City Water
District v. Buat, GR No. 104389, May 27, 1994).
Who is a worker/employee?

Article 13 – A worker is any member of the labor force, whether

employed or unemployed.

A person who works for an employer for a fee; a person working

for salary or wages.

 Note the term employee under Article 218 of the Labor Code:
Not limited to the employees of a particular employer, it shall
include any individual whose work has ceased as a result of or
in connection with any current labor dispute or because of any
unfair labor practice if he has not obtained any other
substantially equivalent or regular employment.
Protection to labor should not come at the
expense of oppressing capital!

 Law recognizes management rights. The employer has the

right to
 Conduct business;
 Prescribe rules;
 Select and hire employees;
 Transfer or discharge employees;
 Discipline of employees, and
 Return of investment and expansion of business.
Management Prerogatives

 Rural Bank of Cantilan . v. Julve, GR No. 169750, February 27,

2007.
 Under the doctrine 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, the time, place and manner of work, work
supervision, transfer of employees, lay-off of workers, and discipline,
dismissal, and recall of employees  
 Mendoza v. Rural Bank of Lucban, GR No. 155421, July 7, 2004.
 Management prerogatives, however, are subject to limitations provided
by
 law,
 contract or collective bargaining agreements and
 general principles of fair play and justice
Viewpoints on Labor Relations
THE WHYS AND HOWS
State Policy on Labor Relations

 Article 217, Labor Code

 Promote and emphasize the primacy of free collective bargaining

and negotiations, including voluntary arbitration, mediation and
conciliation, as modes of settling labor or industrial disputes;
 Promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
and development;
 Foster the free and voluntary organization of a strong and united
labor movement;
 Promote the enlightenment of workers concerning their rights
and obligations as union members and as employees;
State Policy on Labor Relations

 Article 217, Labor Code

 Provide an adequate administrative machinery for the

expeditious settlement of labor or industrial disputes;
 Ensure a stable but dynamic and just industrial peace; and
 Ensure the participation of workers in decision and policy-
making processes affecting their rights, duties and welfare.
 Prohibit courts or administrative agencies or officials from
setting or fixing wages, rates of pay, hours of work or other
terms and conditions of employment, except as otherwise
provided under the Labor Code.
 Social Justice
Goal

Outcome Industrial Peace and Progress

• Terms and Conditions of

Collective Interaction,
Employment
Er-Ee • Addressing Grievances

Processes
Labor Organization/Workers
Association
Employer Representation

Self Organization

Employees Rights and Employers Rights and

Inputs Duties Duties
Self Organization

 Workers organize as a union or some other form of

association (registered or unregistered)
 Effect of registration with the State: Acquisition of legally
demandable rights, e.g. right to demand collective
bargaining
 Organization must have rules and mechanisms that respect
member rights
 No employer influence or interference (See Article 261,
Labor Code)
Why Workers Organize

 Self Advancement
 Job Security
 Upholding the rule of law over arbitrary exercise of power
by capital
 Provide employees a sense of participation in the enterprise
Self Organization

 There can be many labor organizations in the workplace,

but
 Only one recognized representative for workers in Collective
Bargaining
 Selected by the workers themselves by way of election (with
or without intervention of the government)
Who may exercise right to self-
organization
 All persons employed in commercial, industrial and in
religious, charitable, medical or educational institutions
(profit or non-profit)
 Includes the right to
 Form
 Join
 Assist
Labor organizations of their own choosing
Collective Bargaining

 Presentation of proposals and counter-proposals by the

parties
 If capital and labor agree on substantially all points, a labor
contract is forged (Collective Bargaining Agreement)
 If both parties do not agree on material points, this results in
a deadlock
 Parties are obliged to avoid or break the impasse
 Failure to resolve a deadlock may result in work stoppage
 Strike
 Lockout
Collective Bargaining

 While a legal right, strike or lockout is not an ideal solution

to compel a party to agree to a proposal
 Considered as measures of last resort
 Strikes and lockouts are heavily regulated
 Purpose
 Manner of implementation
 Violation of established rules will merit sanctions (admin, civil
and criminal)
 Parties are allowed to introduce means and methods that
will expedite bargaining
 Subject to compliance to legal standards
Collective Bargaining

 Parties are primarily responsible for dealing with problems

arising out of their relations (Inter-party relationship)
 Voluntary modes of settling disputes are preferred over
compulsory processes
 Grievance machinery: In-house problem solving structure
 State steps in only when
 Parties fail to agree
 Rights are violated
State’s Intervention
 SSS Employees Association vs. CA, 175 SCRA 686: “The principle behind
labor unionism in private industry is that industrial peace cannot be
secured through compulsion by law. Relations between private employers
and their employees rest on an essentially voluntary basis. … the terms
and conditions of employment in the unionized private sector are settled
through the process of collective bargaining…”

 But, when dispute

transgresses legal
boundaries, the injuctive
powers of the state may be
invoked, especially when
national interest is involved.
Definitions
 Employer: Includes any
person acting in the interest of
an employer, directly or
indirectly. The term shall not
include any labor
organization or any of its
officers or agents except
when acting as an employer.
Definitions
 Employee: Includes any person in
the employ of an employer. The
term shall not be limited to the
employees of a particular employer,
unless the Labor Code so explicitly
states. It shall include any
individual whose work has ceased
as a result of or in connection with
any current labor dispute or because
of any unfair labor practice if he has
not obtained any other substantially
equivalent and regular employment.
Categories of employees

 Managerial employees
 Supervisory employees
 Rank-and-file employees
Existence of Er-Ee Relationship
is Vital in Labor Relations
 If there is no such relationship, there is no basis for
exercising the right of self-organization for purposes of
collective bargaining.
 Note also that Labor Arbiters cannot exercise jurisdiction
where Er-Ee Relationship does not exist. (subj. to
exception)
Employer-Employee
Relationship
 Four-Fold Test
1. the selection and engagement of the employee;
2. the payment of wages;
3. the power of dismissal; and
4. the power to control the employee’s conduct, or the so-called
“control test.”
 Two-tiered test of employment relation ship
1. Control test – the employer’s power to direct the employee (the
manner, means and methods) by which work is accomplished;
2. Economic reality test – economic reality of the relationship; the
question of economic dependency of the worker on his employer.
(Read Orozco vs. CA, GR 155207, April 29, 2005)
Existence of Er-Ee Relationship
in the following instances:
 A stipulation stating expressly that there is no Er-Ee relationship is
not controlling (Chavez vs. NLRC, GR No. 146530, Jan. 2005)
 Jeepney and taxi drivers (Paguio Transport Corp. vs. NLRC GR
No. 119500, August 1998)
 Bus, auto-calesa drivers (R. Transport Corp. vs. Ejandra, GR No.
148508, May 2004)
 Fishermen (Ruga vs. NLRC, Jan. 1990)
 Stevedores
 Lawyers, doctors, nurses, dentists, public relations practioners,
other professionals
 Employees of cooperatives
 Insurance agents (salaried)
No Er-Ee Relationship in the
following instances:
 Commission salesmen
 Agents of prinicipal (who are not employees in other
respects)
 Working scholars (See Section 14, Rule X, Book III, IRR,
Labor Code)
 Consultants
 Visiting Physicians
 Independent contractors
Definitions
 Labor disputes: Includes any controversy or matter concerning terms or
conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in
the proximate relation of employer and employee.
Labor Disputes

 Nature: arises from Er-Ee relationship, regardless of

whether the disputants stand in the proximate relation of
employer and employee;
 SMCEU-PTGWO vs. Bersamira & SMC, GR No. 87700, June
1990)
 Involves issue of SMC’s exclusion of temporary, probationary &
contractual employees in scope of CBA with union
 Subject Matter
 Terms and conditions of employment
 Association or Representation of persons
Labor Disputes, Kinds

 Standards-related
 Compensation
 Benefits
 Working Conditions
 Relations Disputes
 Organizational rights/ULP
 Representation
 Bargaining
 Contract administration
 Personnel policy
 Employment tenure disputes
Resolving Labor Disputes

 Grievance procedure – CBA-prescribed, in-house mechanism

for addressing complaints.
 Conciliation – involves third person who meets with both
parties and, by assuaging hurt feelings and cooling tempers,
aids in reaching agreement.
 Mediation – third person offers suggested solutions to dispute.
 Arbitration – dispute is submitted to impartial third person who
renders decision based on evidence, law and jurisprudence.
Decision is enforceable.
 Voluntary – by agreement of parties
 Compulsory – directed by law. Primarily done by labor arbiters of
the NLRC
Resolving Labor Disputes

 Enforcement/Compliance Order – dispute arises from

concern uncovered by the exercise of enforcement/visitorial
power of SOLE, or adjudicatory powers of the DOLE
Regional Directors (Articles 128, 129, Labor Code)
 In case of labor disputes that may affect an industry
indispensable to the national interest, the following apply:
 Assumption of jurisdiction by DOLE
 Certification to the NLRC for compulsory arbitration
The National Labor Relations
Commission
JURISDICTION, CASE FLOW, APPEALS, CASES
The National Labor Relations
Commission
 Precursor: Court of Industrial Relations
 NLRC was created by the Labor Code
 attached to the DOLE
 Under EO 204, s. 2005, DOLE exercises administrative
supervision over the commission
 Under RA 9347, several changes to the composition of the
divisions, rank equivalence, and reverted to the old version of
NLRC’s attachment to DOLE (program and policy
coordination)
 Equal representation from workers, employers & public sector
The National Labor Relations
Commission
 NLRC exercises adjudicatory powers and other functions
through its divisions (not the individual commissioners);
 En banc decisions pertain only to
 Promulgation of rules governing hearing and disposition of
cases in the divisions (e.g., 2011 NLRC Rules);
 Recommending Labor Arbiters to the President
 Allowing a division to hear and decide a case under the
jurisdiction of another division
Jurisdiction of Labor Arbiters

 Original and exclusive jurisdiction to hear and decide the

following cases involving all workers, whether agricultural
or non-agricultural (Art. 223, LC, Rule V Section 1, 2011
NLRC Rules):
1. Unfair labor practice cases; ULP Means "Unfair labor
practice" means any unfair labor practice as expressly
defined by the Code (Art. 218(K), Art. 254, Art. 255).
2. Termination disputes;
3. If accompanied with a claim for Reinstatement, those cases
that workers may file involving wages, rates of pay, hours of
work and other terms and conditions of employment;
Jurisdiction of Labor Arbiters

4. Claims for actual, moral, exemplary and other forms of

Damages arising from the employer-employee relations;
5. Cases arising from any Violation of Article 270 of this
Code, including questions involving the legality of strikes
and lockouts; and
6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other Claims
arising from employer-employee relations, including those
of persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement (Article 223, Labor Code, as amended).
Jurisdiction of Labor Arbiters

7. Original and exclusive jurisdiction over money claims arising out of

employer-employee relationship or by virtue of any law or contract,
involving Filipino workers for Overseas deployment, including
claims for actual, moral, exemplary and other forms of damages
(Section 10, Republic Act No. 8042, as amended by Republic Act
No. 10022).
8. Wage distortion disputes in unorganized establishments not
voluntarily settled by the parties pursuant to Republic Act No. 6727.
9. Enforcement of compromise agreements when there is non-
compliance by any of the parties or if there is prima facie evidence
that the settlement was obtained through fraud, misrepresentation or
coercion (Article 233, Labor Code, as amended).
10. Other cases as may be provided by law.
Cases

 The jurisdiction of labor arbiters, as well as of the NLRC, is

limited to disputes arising from an employer-employee
relationship which can only be resolved by reference to the
Labor Code, other labor statutes, or their collective bargaining
agreement. U-Bix's complaint was one to collect sum of money
based on civil laws – on obligations and contract, not to
enforce rights under the Labor Code, other labor statutes, or the
collective bargaining agreement. (U-Bix Corporation, et al. vs.
Valerie Anne H. Hollero, G.R. No. 177647, October 31, 2008)
 The jurisdiction of labor courts extends only to cases where an
employer-employee relationship exists. (Jaguar Security &
Investigation Agency vs. Rodolfo Sales, et. al., G.R. No.
162420, April 22, 2008)
Cases

 Exception to the rule that Er-Ee relationship is necessary for

Labor Arbiters to acquire jurisdiction:
 “The jurisdiction of Labor Arbiters is not limited to claims
arising from Employer-Employee relationships under Sec. 10
of RA 8042, which cover money claims arising out of an
employer-employee relationship or by virtue of any law or
contract involving Filipino workers for overseas deployment,
including claims for…damages.” Santiago vs. CF Sharp Crew
Management, Inc. (GR No. 162419, July 2007)
Cases

Corporate Officers
 Nacpil vs. IBC (GR No. 144767, March 21, 2002) –
Officers designated by the board are corporate officers
 Prudential Bank and Trust Company (GR No. 141093,
Feb. 20, 2001) - One rising from the ranks is not a mere
corporate officer
 Rural Bank of Coron vs. Cortes, (GR No. 164888, Dec. 6,
2006) – A corporate officer who is also an employee may
file an illegal dismissal case with the labor arbiter.
Cases

See also
 Okol vs. Slimmers World International (GR No. 160146,
December 11, 2009)
 Gomez vs. PNOC Development and Management
Corporation (GR No. 174044, November 27, 2009)
 Atty. Virgilio R. Garcia vs. Eastern Telecommunications
Philippines (GR No. 173115, April 16, 2009)
 Renato Real vs. Sangu Philippines, Inc. et al., G.R. No.
168757, 1/19/2011
Venue

 Case may be filed in the RAB having jurisdiction over the

workplace of complainant or petitioner
 Where two or more RABs have jurisdiction, venue resides
in the RAB which first acquired it
 No objection to venue before the filing of position papers,
issue is deemed waived
 May be by written agreement, or by motion for meritorious
cases
 Option of the worker
 Case Flow, RAB
Amicable
Start Mandatory Conference Settlement?

Submit Position
File Complaint Papers/Memoranda

Receive, docket and Clarificatory Hearing Issue Order

subscribe complaint
Evaluate pleadings and
evidence End
Raffle and assign cases

Issue Order submitting

Set case for mandatory case for decision
conference/issue Issue, promulgate
summons and release decision
Prepare decision
2011 NLRC Rules of Procedure

Significant changes from 2005 Rules (as discussed by Atty. Ruben Del
Rosario)

1. Service of Notices, Resolutions, Orders and Decisions by Private

Courier (Section 4, Rule III). Under the 2005 Rules, service of notices
such as summons, notice of conference, resolutions, orders and
decisions is made through the NLRC’s messenger or sent by registered
mail only. In the 2011 Rules, service can be done by private courier also.

2. Authority of the Labor Arbitration Associate to Conduct

Conciliation and Mediation Conference (Section 8a, Rule V). The
2005 Rules state that “the Labor Arbiter shall personally preside over
and take full control of the proceedings”. The 2011 Rules state that the
Labor Arbiter may be assisted by the Labor Arbitration Associate in the
conduct of the proceedings.
2011 NLRC Rules,
amendments
 En Banc Resolution 11-12 amended the 2011 NLRC Rules of
Procedure.
 Venue: When venue is not objected to before the first
scheduled mandatory conference, such issue or objection will
be deemed waived. (Rule IV, Section 1, par. c)
 Confidentiality of Commission Records: access to pleadings
and other documents filed by parties to a case are restricted.
Reports, drafts of decisions, records of deliberations, and
other documents involving private rights are made
confidential. Nevertheless, decisions, resolutions and orders
of the NLRC are open to the parties and their counsel or
authorized representative during office hours. (Rule XIII,
Section 8)
Doctrine of Forum Non
Conveniens
 Manila Hotel Corporation vs. NLRC (GR No. 120077,
October 13, 2000) – The NLRC has no jurisdiction when
the main aspects of the case transpired in foreign
jurisdictions and the only link that the Philippines has with
the case is that the employee is a Filipino citizen.
 PNB vs. Cabansag (GR No. 157010, June 21, 2005) –
when the employee is directly hired in a foreign country but
nonetheless secures a (POEA) employment certificate, she
is an OFW and thus the case falls under the jurisdiction of
the labor arbiter.
Counter claims of employers

 Banez vs. Valdevilla (GR No. 128024, May 9, 2000) – Art.

217 (now 223) is comprehensive enough to include claims
for all forms of damages arising from Er-Ee relations,
including Er’s claims for actual damages against a
dismissed Ee.
 Domondon vs. NLRC (GR No. 154376, Sept. 30, 2005)
NLRC, Jurisdiction

 Two kinds
 Original Jurisdiction
 Injunction in ordinary labor disputes;
 Injunction in strikes and lockouts under Article 270, LC;
 Certified labor disputes in industries indispensable to the national
interest, where work stoppage is likely or has already occurred.
 Exclusive Appellate Jurisdiction
 Cases decided by the labor arbiters;
 Cases decided by DOLE regional directors under Article 129;
Labor Arbiters & NLRC,
distinction of jurisdictions
 NLRC has exclusive appellate jurisdiction on all cases
decided by the labor arbiters.
 NLRC does not have original jurisdiction on the cases over
which labor arbiters have original and exclusive
jurisdiction.
 If the labor arbiter does not exercise original and exclusive
jurisdiction over a case, the NLRC has no appellate
jurisdiction over it.
Appeals

 Labor Arbiters’ decisions – ordinary appeal to the NLRC,

w/in 10 calendar days from receipt. NLRC’s decision on
appeal is elevated to the CA by way of special civil action
(Rule 65), and then under ordinary appeal (Rule 45) to the
SC
 DECISION (Supreme Court)

Petition for Grounds: Questions of

Review Law from Decision of CA
(Rule 45)

DECISION (Court of Appeals)

Grounds: determination of whether or not

the NLRC acted without or in excess of Petition for
its jurisdiction or with grave abuse of Certiorari
discretion in rendering its decision. (Rule 65)

DECISION on APPEAL (NLRC)

Requisites for Perfection:

Grounds: Section 2, Rule
Section 4, Rule VI, 2011
VI, 2011 NLRC Rules of
Appeal NLRC Rules of
Procedure, as amended
Procedure, as amended

DECISION (Labor Arbiter)

Grounds of Appeal

 Prima facie evidence of abuse of discretion on the part of

the labor arbiter
 Decision, order or award was secured through fraud or
coercion, including graft and corruption
 Purely on questions of law
 Serious errors in the findings of facts which would cause
grave or irreparable damage or injury to appellant
Perfection of Appeal, requisites

 Filed within reglementary period (ten days from receipt of

decision by party seeking appeal)
 Under oath
 Appeal fee
 Posting of cash or surety bond (where judgment involves
monetary award)
 Proof of service to adverse party
Appeal

 Note the following:

 Labor arbiter loses jurisdiction upon perfection of appeal
 Lack of verification is not fatal nor jurisdictional
 Appeal is still valid despite failure to pay docket fee, but
refusal to pay despite directive is fatal
 Raising new issues or changing theory on appeal is not
allowed.
Reinstatement Order

 Reinstatement is immediately executory even pending

appeal
 Pioneer Texturizing Corporation vs. NLRC – employer is
duty-bound to inform employee of reinstatement
 An employer may not stay execution of reinstatement, even
when he has posted a bond
 Roquero vs. PAL (GR No. 152329, April 2003) - Labor
arbiter has ministerial duty to implement reinstatement
order
Reinstatement by Employer

 Actual reinstatement of the employee to his work under the

same terms and conditions prior to dismissal or separation,
or
 Reinstatement in the payroll of the company, without
requiring actual return to work
Bureau of Labor Relations
FUNCTIONS OF THE BUREAU OF
LABOR RELATIONS ABSORBED BY
NCMB
 Pursuant to E.O. 126, the National Conciliation and
Mediation Board (NCMB) has absorbed the conciliation,
mediation and voluntary arbitration functions of the BLR.
 The BLR functions, as it now stands are confined largely to
union matters, collective bargaining and labor education.
 Jurisdiction over labor-management problems or disputes is
also exercised by other offices such as the DOLE regional
offices, the Office of the Secretary of Labor, NLRC, POEA,
OWWA, SSS-ECC, the regional wage and productivity
boards, NWPC, and even the regular courts over intra-
corporate disputes.
Exclusive and Original
Jurisdiction of the BLR
 To act on its own initiative or upon the request of either or
both parties on all:
 INTRA-union conflicts;
 INTER-union conflicts; and
 OTHER RELATED Labor Relations Disputes
Other Related Labor Relations Disputes
(Sec. 2, Rule XI D.O. 40-03)

 Shall include any conflict between a labor organization and

the employer or any individual, entity, or group that is NOT
a labor organization or worker’s association.
 This includes:
 Cancellation of registration of unions and worker’s
associations; and
 A petition for interpleader.
Interpleader

 A proceeding brought by a party against two or more parties

with conflicting claims, compelling the claimants to litigate
between and among themselves their respective rights to the
claim, thereby relieving the party so filing from suits they
may otherwise bring against it. (Sec. 1 (Par. “z”), Rule I,
DO 40-03)
EO 251, S. 1987

 removed from the jurisdiction of the BLR “all” labor-

management disputes. The effect of E.O. 251 is to transfer
to the NCMB the mediation, conciliation, and arbitration
functions of the BLR.
 The parties may, by agreement, settle their differences by
submitting their case to a voluntary arbitrator rather than
taking the case to the BLR.
EO 251, S. 1987

 This category of labor relations disputes as the name

suggests is related to inter/intra union disputes to
differentiate it from other labor-management disputes, such
as those under
 Article 128: Visitorial and enforcement power
 Article 129: recovery of wages, simple money claims and
other benefits
 Article 223: Jurisdiction of the LA and NLRC
 Article 273: Jurisdiction of VA
 Article 277(g): Secretary of Labor, on possibility of strikes and
lockouts
Functions and Authority of BLR under
the 1987 Administrative Code

 Sec. 16. Bureau of Labor Relations – The BLR shall:

 Set policies, standards, and procedures on the registration
and supervision of legitimate labor union activities
including denial, cancellation, and revocation of labor union
permits;
 Set policies, standards and procedures relating to collective
bargaining agreements, and the examination of financial
records of accounts of labor organization to determine
compliance with relevant laws;
 Provide proper orientation to workers on their schemes and
projects for improvement of the standards of living of
workers and their families.
Union Disputes (Rule I, DO 40-
03)
 Intra-Union Disputes (Sec. 1(bb)) – refer to any conflict
between and among union members, including
1. grievances arising from any violation of the rights and conditions of
membership,
2. violation of or disagreement over any provision of the union’s
constitution and by-laws, or
3. disputes arising from chartering or affiliation.
 Inter-Union Disputes (Sec. 1(x)) – refer to any conflict between
and among legitimate labor organizations involving:
1. representation questions for purposes of collective bargaining or
2. any other conflict or dispute between legitimate labor organizations
based on any violations of their rights as labor organizations.
Coverage of Inter/Intra-Union Disputes
(Sec. 1 Rule XI, D.O. 40-03)

 Cancellationof registration of a labor organization filed

by its members or by any other labor organization;
 Conduct of election of union and worker’s association
officers/nullification of election of union and worker’s
association officers;
 Audit/accounts examination of union or worker’s
association funds;
 De-registration of CBA;
 Validity/invalidity of union affiliation or disaffiliation;
 Validity/invalidity
of acceptance/non-acceptance for
union membership;
Coverage of Inter/Intra-Union Disputes
(Sec. 1 Rule XI, D.O. 40-03)

 Validity/invalidity
of impeachment/expulsion
of union and worker’s association officers;
 Validity/invalidity of voluntary recognition;
 Opposition to application for union and CBA
registration;
 Violations of or disagreements over any
provision in a union or worker’s association
constitution and by-laws;
Coverage of Inter/Intra-Union Disputes
(Sec. 1 Rule XI, D.O. 40-03)

 Disagreements over chartering or registration of labor

organizations and CBAs;
 Violations of the rights and conditions of union or worker’s
association membership;
 Violations of the rights of legitimate labor organizations,
except interpretation of CBAs; and
 Such other disputes or conflicts involving the rights to self-
organization, union membership, and collective bargaining
–
 Between and among legitimate labor organizations; and
 Between and among members of a union or worker’s association.
Complaints, where filed

 DOLE Regional Office - where the labor organization is

registered;
 Bureau of Labor Relations – where the complaint involves a
federation or industry/national union;
Special Requirements as to the
Filing of Cases

 Involving Entire Membership

 The complaint must be signed by at least 30%
of the entire membership of the union; and
 Itmust also show exhaustion of administrative
remedies.
Special Requirements as to the
Filing of Cases

 Involving a Member Only

 In such case, only the affected member may file the
complaint. Redress must first be sough within the union
itself in accordance with its constitution and by-laws
EXCEPT under any of the following circumstances:
 Futility of intra-union remedies;
 Improper expulsion procedure;
 Undue delay in appeal as to constitute substantial
injustice;
 The action is for damages;
Special Requirements as to the
Filing of Cases
 Involving a Member Only
 In such case, only the affected member may file the complaint.
Redress must first be sough within the union itself in accordance
with its constitution and by-laws EXCEPT under any of the
following circumstances:
 Lack of jurisdiction of the investigating body;
 Action of the administrative agency is patently illegal, arbitrary, and
oppressive;
 Issue is purely a question of law;
 Where the administrative agency had already prejudged the case; and
 Where the administrative agency was practically given the
opportunity to act on the case but did not.
Effects of Filing or Pendency of Inter/Intra-
Union Dispute and other Labor Relations
Disputes (Sec. 3, Rule XI, D.O. 40-03)
 The rights, relationships and obligations of the part-litigants against
each other and other parties-in-interest prior to the institution of the
petition shall continue to remain during the pendency of the petition
and until the date of finality of the decision rendered therein.
Thereafter, the rights, relationships and obligations of the party litigants
against each other and other parties-in-interest shall be governed by the
decision so ordered.
Effects of Filing or Pendency of Inter/Intra-
Union Dispute and other Labor Relations
Disputes (Sec. 3, Rule XI, D.O. 40-03)
 The filing or pendency of any inter/intra-union disputes is not a
prejudicial question to any petition for certification election and shall
not be a ground for the dismissal of a petition for certification election
or suspension of proceedings for certification election.
 Modes of Appeal in Intra/Inter-Union
Disputes (Rule XI, D.O. 40-03)
How: Formal 1. Under Oath
requirements 2. Consist of a memorandum of appeal
3. Based on either of the following grounds:
a. Grave abuse of discretion
b. Gross violation of the rules
4. With supporting arguments and evidence
Period: Within ten days from receipt of decision
To whom appealable 1. Bureau of Labor Relations – if the case originated from Med-
Arbiter/Regional Director;
2. Secretary of DOLE in case decision originated from BLR

Where filed Regional office or to the BLR where the complaint originated (records
transmitted to the BLR or Sec. within 24 hours from receipt of the
memorandum on appeal
Summary of Rules on
Inter/Intra Union Disputes
Who:
 For grounds under Section 1: any LLO members thereof
specially concerned
 For grounds under Section 2: any party-in-interest

Where
 RO that issued its certificate of registration or certificate of
creation of chartered local – if it involves labor unions with
independent registration, chartered locals, workers
association, its officers or members.
 Directly with the BLR if it involves a federation/national
union/industry union, its officers or members
Summary of Rules on
Inter/Intra Union Disputes
Formal requirements
 In writing
 Verified under oath
 Contains:
 Name, address and other personal circumstances of the complainant or petitioner
 Name, address and other personal circumstances of the respondent or person
charged
 Nature of complaint or petition
 Facts and circumstances surrounding complaint or petition
 Causes of action
 Statement on exhaustion of Administrative Remedies
 Reliefs prayed for
 Certification of non-forum shopping
 Other relevant matters
Administrative functions of
BLR
 Regulation and registration of labor unions
 Keeping of registry of labor unions
 Maintenance of a file of CBA’s
 Maintenance of a file of all settlements or final
decisions of the SC, CA, NLRC and other
agencies on labor disputes

 BLR has no jurisdiction over implementation or

interpretation of CBAs, which shall be subject of
grievance procedure and/or Voluntary arbitration.
Compromise Agreements

 ANY Compromise Settlement (labor standards or labor

relations law) voluntarily agreed upon by the parties with
the assistance of the BLR or DOLE-RO shall be final and
binding upon the parties.
 NLRC has no jurisdiction except:
 Noncompliance with compromise agreement
 Prima facie evidence that settlement was obtained through
fraud, misrepresentation or coercion.
Compromise Agreements

 Purpose: Parties agree to

 Avoid litigation, or
 Put an end to one already in place
 How: making reciprocal concessions
 Win-win
 Substantial requirements
 Voluntary, devoid of coercion
 Not contrary to law, morals, public policy
 Reasonable
 Formal requirements
 In writing
 Signed in the presence of person before whom case is filed
Compromise Agreements

 When effected:
 At any stage of the proceedings, even when there is already a
final & executory judgment
 EXCEPT when judgment is in process of execution
 Validity: Valid and binding on both parties, with or without
DOLE assistance
 Repudiation:
 If done without DOLE assistance
 In case of non-compliance with agreement
 Prima facie evidence of fraud, misrepresentation, coercion
Compromise Agreements

 Options when agreement is violated:

 Enforce compliance
 Regard as rescinded, revert to original demand
 Quitclaim: A formal renunciation or relinquishing of a
claim
 Usually integral in compromise agreements
Compromise Agreements

 Cases:
 Mindoro Lumber vs. Baay, et.al., GR No. 158753, June 2005
 Veloso and Liguaton vs. DOLE, Noah’s Ark Sugar Carriers,
GR No. 87297, Aug. 1991
 JAG & Haggar Jeans vs. NLRC, GR No. 105710, Feb. 1995
 Magbanua vs. Uy, GR No.161003, May 2005
Veloso and Liguaton vs. DOLE,
Noah’s Ark Sugar Carriers
“Dire necessity is not an acceptable ground for annulling the
releases especially since it has not been shown that the
employees had been forced to execute them. It has not even
been proven that the considerations for the quitclaims were
unconscionably low and that the petitioners had been tricked
into accepting them. … no deception has been established on
the part of the private respondent that would justify the
annulment of the petitioners’ quitclaims.”
Registration and Cancellation
LABOR ORGANIZATIONS
Definitions (Article 218)

 "Labor organization" means any union or association of

employees which exists in whole or in part for the purpose
of collective bargaining or of dealing with employers
concerning terms and conditions of employment.
 
 "Legitimate labor organization" means any labor
organization duly registered with the Department of Labor
and Employment, and includes any branch or local thereof.
 
 "Bargaining representative" means a legitimate labor
organization whether or not employed by the employer.
Definitions (DO 40-03)

 "Chartered Local" refers to a labor organization in the private

sector operating at the enterprise level that acquired legal
personality through the issuance of a charter certificate by a duly
registered federation or national union, and reported to the
Regional Office in accordance with Rule III, Section 2-E of these
Rules.
 "Exclusive Bargaining Representative" refers to a legitimate labor
union duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a
bargaining unit.
 "Independent Union" refers to a labor organization operating at the
enterprise level that acquired legal personality through independent
registration under Article 234 of the Labor Code and Rule III,
Section 2-A of these Rules.
Definitions (DO 40-03)

 "Labor Organization" refers to any union or association of

employees in the private sector which exists in whole or in
part for the purpose of collective bargaining, mutual aid,
interest, cooperation, protection, or other lawful purposes.
 "Labor Relations Division" refers to the (1) Labor
Organization and CBA Registration Unit and (2) Med-
Arbitration Unit in the Regional Office. The Labor
Organization and CBA Registration Unit is in charge of
processing the applications for registration of independent
unions, chartered locals, workers associations and collective
bargaining agreements, maintaining said records and all
other reports and incidents pertaining to labor organizations
and workers' associations.
Definitions (DO 40-03)

 "Legitimate Labor Organization" refers to any labor

organization in the private sector registered or reported with
the DOLE in accordance with Rules III and IV of these
Rules.
 "Legitimate Workers' Association" refers to an association
of workers organized for mutual aid and protection of its
members or for any legitimate purpose other than collective
bargaining registered with the DOLE in accordance with
Rule III, Sections 2-C and 2-D of these Rules.
Two-Fold Purpose of Labor
Organizations
 Dealing with the Employer – interaction between employers
and employees concerning
 Grievances
 Wages
 Hours
 Other terms and conditions of employment
 Applies even without registration
Two-Fold Purpose of Labor
Organizations
 Collective Bargaining – is a right acquired through
registration, and recognition or certification as the exclusive
bargaining representative
Classifications of LOs

 At the National Level

 National Union/Federation
 Industry Union
 Trade Union Center
 Alliance
 Company Union
 Enterprise Level
 Independent Labor Union
 Chapter
RA 9481

 AN ACT STRENGTHENING THE WORKERS'

CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION,
AMENDING FOR THE PURPOSE PRESIDENTIAL
DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES
 Amended Articles 240, 244, 245, 261, 262 & 263
Changes to Labor Code Re:
Registration of Labor Organizations
 20% membership of employees in bargaining unit required
only for independent unions
 Chapters acquire legal personality (for purposes of
certification election) upon receiving their charter certificate
 Grounds of cancellation revised. Some grounds were
removed as they were not promotive of self organization
rights
 Petition for Certification Election will continue to be heard
despite petition to cancel registration
Changes to Labor Code Re:
Registration of Labor Organizations
 Cancellation may be effected by vote of two-thirds of
membership, with application to cancel submitted to DOLE
by the organization’s board
 Reportorial requirements
 Supervisors Union and Rank and File Unions may join
same Federation
 Commingling of supervisors and rank & file employees no
longer a ground for cancellation
Changes to Labor Code Re:
Registration of Labor Organizations
 PCEs filed by a federation on behalf of its chapter need not
identify the chapter’s officers and members
 Employer cannot oppose a petition for certification election;
he is considered a bystander
Registration of Labor
Organizations
 Legal personality
 Enjoy the rights given to legitimate labor organization.
 Petition for certification election
 Bargaining rights
 Right to strike
 Non-registered unions are not illegitimate or illegal
Registration of Labor
Organization
 Union registration refers to the process of determining
whether the application for registration of a labor union
organized for collective bargaining complies with the
documentary requirements prescribed under Rule 3 and 4 of
DOLE Department Order No. 40—03and the rules
implementing Book V of the Labor Code, as amended.
Registration of Labor
Organization
 All labor unions whose members are employed in
commercial, industrial and agricultural enterprises, and
employees of government-owned and controlled
corporations without original charters established under the
Corporation Code, including religious, charitable, medical or
educational institutions whether operating for profit or not
which exist in whole and in part for collective bargaining.
 Alien employees with valid working permits issued by
DOLE may exercise their right to self-organization and join
or assist labor unions for purposes of collective bargaining if
they are nationals of a country which grants the same or
similar rights to Filipino workers, as certified by the
Department of Foreign Affairs.
Requirements, Local or Chapter

 Duly accomplished and notarized Application Form;

 Charter certificate issued by the federation or national union
indicating the creation or establishment of the local/chapter;
 The names of the local/chapter’s officers, their addresses
and principal office of the local/chapter; and,
 The local/chapter’s constitution and by-laws, provided that
where the local/chapter’s constitution and by-laws is the
same as that of the federation or national union, this fact
shall be indicated accordingly.
Requirements, Independent LO

 Duly accomplished and notarized Application Form;

 Minutes of Organizational Meeting and Attendance Sheet
 List of Members
 Financial Report if in existence for at least one (1) year
Requirements, Independent LO

 If less than 1 year, and has not collected any amount, a

certification to this effect.
 Constitution and by-laws accompanied by the names and
signatures of ratifying members.
 Minutes of adoption or ratification of the constitution and
by-laws, date/s when ratification was made and list of
ratifying members.
Requirements, Independent LO

 Minutes of adoption or ratification is not required if it is

done simultaneously with the organizational meeting
including the date/s when ratification was made and list of
ratifying members.
 Statement that it is not reported as a chartered local or any
federation.
 List of members comprising at least 20% of the employees
of the bargaining unit.
Affiliation/Disaffiliation

 The independent union’s act of entering into an agreement

of affiliation with a federation or national union, or
 A chartered local’s act of maintaining its ties to a federation
or national union despite its subsequent independent
registration
Requirements of Affiliation

 Report of affiliation of independently registered labor

union;
 Resolution of LU board approving affiliation
 Total number of members, and names of those approving
affiliation
 Certificate of affiliation
 Written notice to the employer concerned if the affiliating
union is the bargaining agent
Chartering vs. Independent
Registration
Independent Chartering
Registration
How obtained Registration on its Through charter
own accord under Art. certificate issued by
240 National
Union/Federation
Effect of disaffiliation Retains legal Loses legal
personality personality
Revocation of Charter

 May only occur on the grounds of disloyalty or such

grounds specified in the constitution & by-laws;
 Effected by serving a verified notice to the local/chapter,
copy the BLR
 Effect
 revocation of legal personality, except if local chapter has
acquired independent registration.
 If covered by CBA, local chapter may be given opportunity to
register independently
BLR Action

 Act on all applications within 30 days from filing, provided

all documents and papers required have been submitted;
 When DOLE refuses to register a labor organization which
has complied with the requirements, mandamus is the
proper remedy
 Approval – Order and Certificate of Registration
 Disapproval – Decision which states clearly reasons for
denial
Cancellation of Registration

 BLR has jurisdiction

 Only for grounds in Article 245
 Petition for cancellation will not suspend PCE proceedings
 Union may still seek just and equitable remedies in
appropriate courts
Grounds for Cancellation

 Misrepresentation, false statements or fraud in connection

with the adoption or ratification of the constitution and by-
laws or amendments thereto, minutes of ratification and list
of members who took part
 Misrepresentation, false statements or fraud in connection
with the election of officers, minutes of the election of
officers and list of voters
 Voluntary dissolution by members
Grounds for Cancellation

 Ten grounds in Article 245 prior to RA 9481 have been

reduced to three
 Examples of removed grounds
 Failure to submit reportorial requirements
 Illegal strike
 Engaging in “cabo” system
Voluntary Dissolution

 May be done by members themselves

 2/3 of general membership votes during a meeting called for
the purpose of dissolving organization
 Application to cancel registration submitted by the board,
attested by the president
Rights & Conditions of
Membership, LO
 Article 247
a. Arbitrary or excessive initiation fees
b. Full and detailed reports
c. Direct election of officers
d. Determination of major policy affecting entire membership
of organization
e. Exclusion of subversive persons from membership
f. Exclusion of convicted member as union officer
g. Collection or disbursement only by authorized officers
h. Receipts for all payments
Rights & Conditions of
Membership, LO
 Article 247
i. Funds for authorized use only
j. Ban on unauthorized compensation on officers
k. True and correct accounting of funds
l. Inspection of records of organization
m. No unauthorized special levy or assessment of fees
n. Check – off
o. Information on the Constitution and by-laws
Rights & Conditions of
Membership, LO
 Article 247can be best grouped into four basic
classifications
1. Political rights – right to vote and be voted for
2. Deliberation and decision-making. Right to participate in
deliberations on major policy questions and decide by secret
ballot
3. Money matters
4. Information
1. Constitution and By-laws
2. Collective Bargaining Agreement
3. Labor Laws
Violation of Rights of Union
Members, Consequences
 Cancellation of union registration, OR
 Expulsion from office of a union officer.
 30% of all members (if affecting entire membership) must
concur re filing of complaint with the BLR
 Only affected member/members may file a complaint
pertaining to a violation of which they are affected
Relationship of the Union and
its Members
 Ang Malayang Manggagawa ng Ang Tibay Enterprises, et
al. vs. Ang Tibay, et al., G.R. No. L-8259, December 1957:
 The relationship of the union and the members is governed by
their mutual agreement, the terms and conditions of which are
set forth in the union constitution and by laws and binding on
the members as well as the organization itself
Prohibited as members

 Non-employees (247(c))
 Subversives (247(e))
 What about persons convicted of crimes involving moral
turpitude?
 Allowed as members, not eligible for election as officer
(247(f))
Limitations

 The labor organization cannot compel employees to become

members of their labor organization if they are already
members of a RIVAL UNION
 The persons mentioned in Art 247[e] (SUBVERSIVES) of
the Labor Code are prohibited from becoming a member of
a labor organization
 The members of RELIGIOUS ORGANIZATION whose
religion forbids membership in labor organization could not
be compelled into union membership (Victoriano v. Elizalde
Rope Workers Union, L-25246 September 1974)
Who are entitled to vote?

 Tancino vs. Pura Ferrer-Calleja, G.R. 78131, Jan. 1988

 Only members of the union have the eligibility to take part in
the election of union officers. Eligibility to vote may be
determined through the use of the applicable payroll period
and the status of the employees during the applicable period.
This pertains to the payroll of the month next preceding the
labor dispute, in case of regular employees and the payroll
period at or near the peak of operation, in case of employees in
seasonal industries.
Requirements for Levy of Special
Assessments or Extraordinary Fees
 Written resolution;
 Approved by a majority of all members; and
 Approval obtained at a general membership meeting duly
called for that purpose.
 Secretary of the organization shall record the minutes of the
meeting, which shall be attested to by the President.
 list of all members present
 votes cast; and
 purpose of the assessment or fees
Strict Compliance Enjoined

 (Palacol et aa. v Ferrer-Galleja, et al, GR No. 85222,

February 6, 1990) - Substantial compliance with the
aforementioned procedure is not enough – the requirements
must be strictly complied with
Check-off

 A method of deducting from an employee’s pay at

prescribed period, the amounts due to the union for fees,
fines or assessments
Nature and Purpose
of Check-off
 Union dues are the lifeblood of the union. All unions are
authorized to collect reasonable membership fees, union
dues, assessments and fines and other contributions for
labor education and research, mutual death and
hospitalization benefits, welfare fund, strike fund and credit
and cooperative undertakings

(Art. 283 [a])

Requirements With Regard to
Check-offs (Art 241 [O])
 General Rule: NO special assessment, attorney’s fees,
registration fees or any other extraordinary fees may be
checked off from any amount due an employee without an
individual written authorization duly signed by the
employee
 The Authorization should specifically state the:
 Amount; and
 Purpose and the beneficiary of the deduction
Exceptions

 For mandatory activities provided under the Code; and

 When non-members of the union avail of the benefits of the
CBA:
 Said non-members may be assessed union dues equivalent to
that paid by members;
 Only by a board resolution approved by majority of the
members in a general meeting called for the purpose
Check Off

 Eduardo J. Marino, Jr. et al. vs. Gil Y. Gamilla, et al., G.R.

No. 149763, July 7, 2009: The individual written
authorization duly signed by the employee is an additional
requirement in order that a special assessment may be
validly checked-off. In case of check-off another requisite is
necessary in addition to the requirements for special
assessment, enumerated above and this is, individual written
authorization for check-off duly signed by the employee
concerned.
Jurisdiction over Check-Off
Disputes
 Being an intra-union conflict, the Regional Director of
DOLE has jurisdiction over check off disputes.
Union Dues

 Regular monthly contributions paid by the members to the

union in exchange for the benefits given to them by the
CBA and to finance the activities of the union in
representing them.
Agency Fees

 Dues equivalent to union dues charged from the non-union

members who were benefited by the CBA provisions.
 The relationship between the non-union employees and the
Union that is the bargaining representative is that of
principal – agent
 Since the union was able to secure better terms and
conditions of employment for all employees, it is proper
that they be compensated for their representation
Requisites for Assessing
Agency Fees
 The employee is part of the bargaining unit,
 He is not a member of the union; and
 He partook of the benefits of the CBA
 Written authorization is not necessary for collection
Union Dues vs. Agency Fees

Union Dues Agency Fees

Applies to Union Members Applies to Non Members of the
Union
Paid by reason of their Paid by reason of the benefits they
membership enjoyed under the CBA
Written authorization is required Written authorization is NOT
for dues to be deducted from required
salaries (Check-Off)
Agency Fees not Imposable

 NAIBAILU v. San Miguel Brewery

Inc., GR No. 18170, August 31, 1963
–
 Agency Fee cannot be imposed on employees
already in the service and are members of
another union. If a closed shop agreement
cannot be applied to them, neither may an
agency fee, as a lesser form of union security,
be imposed to them.
 Payment by non-union members of agency
fees does not amount to an unjust enrichment
Coverage of CBA to Include Employee-
Members of Another Union

 Members of a rival union are NOT

Considered Free Riders
 When the union bids to be the bargaining
agent, it voluntarily assumes the
responsibility of representing all
employees in the appropriate bargaining
unit.
CHAPTER III. RIGHTS OF
LEGITIMATE LABOR
ORGANIZATIONS

ART.248 RIGHTS OF LEGITIMATE LABOR

ORGANIZATIONS
Rights of A Legitimate Labor
Organization
 Undertake activities for benefit of members;
 Sue and be sued;
 Exclusive representative of all employees;
 Represent union members;
 Be furnished audited financial statements by employers;
 Own properties; and
 Be exempted from taxes.
ART.248-A: REPORTORIAL
REQUIREMENTS

1. Constitution and by-laws, or amendments

thereto, minutes of ratification, and the list
of members who took part in the
ratification of the constitution and by-laws
or amendments thereto;
2. List of officers, minutes of the election of
officers and list of voters within 30 days
from election;
ART.248-A: REPORTORIAL
REQUIREMENTS
3. Annual financial report within 30 days after the
close of every fiscal year; and
4. List of members at least once a year or whenever
required by the Bureau

 Failure to comply with the above-mentioned

requirements shall not be a ground for cancellation
of union registration
 Erring officers or members to be suspended,
expelled from membership, or otherwise sanctioned.
Title Five:Coverage
ART. 249: COVERAGE AND EMPLOYEES’ RIGHT TO
SELF-ORGANIZATION
Constitutional Basis of the
Right to Self-Organization
 Art. III, Sec. 8. The right of the people, including those
employed in the public or private sectors, to form unions,
associations, or societies for purposes not contrary to law
shall not be abridged.
 Art. XIII, Sec. 3. The State shall guarantee the rights of all
workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities including the
right to strike in accordance with law.
Right to Self-Organization,
Extent
 To form, join and assist labor organizations for the
purpose of collective bargaining through representatives
of their own choosing; and
 To engage in lawful concerted activities for the same
purpose or for their mutual aid and protection (Art. 252)
Right to Self-
Organization,Coverage
 All persons employed in commercial, industrial and
agricultural enterprises and in religious, charitable, medical,
or educational institutions
 Ambulant, intermittent and itinerant workers, self-employed
people, rural workers and those without definite Employers
may form labor organizations for their mutual aid and
protection.
Right to Self-
Organization,Coverage
 Art. 250 : Rights of Employees in the public service
 Employees of government corporations established under the
Corporation Code shall have the right to organize and bargain
collectively with their respective ER’s.
 All other EE’s in the civil service shall have the right to form
associations for the purposes not contrary to law.
Right to Self-
Organization,Coverage
 Art. 251 :
 Managerial employees are not eligible to join, assist, or form
any labor organization.
 Supervisory employees shall not be eligible for membership in
a labor organization of the rank-and-file EE’s but may join,
assist or form separate labor organizations of their own.
Examples

1. Rey’s Hair Salon refused to bargain with the union of the

barbershop composed of eight barbers on the ground that the
shop was a service establishment and the number of the
barbers was less than ten. Is the contention tenable?
 No. The law does not fix the minimum number of
employees for the exercise of the right to self-organization
and the right extends to all types of establishments.
Examples

2. Faculty members of a non-profit school converted their club

into a labor union. Is this allowed?
 Yes. Even employees in non-profit or religious
organizations are entitled to exercise this right.
Examples

3. Is a religious sect’s directive to its congregation not to join a

labor union a bar for members to form their own union?
 The right of the members of a sect not to join a labor union
for being contrary to their religious beliefs does not bar the
members of that sect from forming their own union.
(Kapatiran vs. Calleja)
Supervisory Employees

 Those, who, in the interest of the ER, effectively

recommend such managerial actions if in the exercise of
such authority is not merely routinary or clerical in nature
but requires the use of independent judgment. (Art. 218)
 The criterion which determines whether a particular
employee is within the definition of a statute is the
character of the work performed rather than the title or
nomenclature of position held. (NSRC vs. NLRC)
Supervisory Employees

 If the recommendation of the teacher area supervisor is

subject to evaluation, review and final approval of the
principal, is the teacher a supervisory employee? No. This
is merely ineffective or clerical recommendation. ( Laguna
Colleges vs. CIR )
 Supervisors were given the job of “either to assist the
foreman if the effective dispatch of manpower and
equipment” or “execute and coordinate work plans
emanating from his supervisors.” Are these “supervisors”
supervisory personnel? No. They only execute approved
and established policies leaving little or no discretion at all
whether to implement the said policies or not. (Southern
Philippines Federation vs. Calleja)
Confidential Employees

 “…assist and act in a confidential capacity to, or have

access to confidential matters of persons who exercise
managerial functions in the field of labor relations.” –
Philips Industrial Development vs. NLRC, GR No. 88957,
6/25/1992;
 “…those who, by reason of their positions or nature of work
are required to assist or act in a fiduciary manner to
managerial employees and hence, are likewise privy to
sensitive and highly confidential records.” – Metrolab
Industries vs. Confesor, et. Al., GR No. 108855, 2/28/1996
Confidential Employees

 Exempt from membership in the rank and file bargaining

unit;
 They are not eligible to form, join or assist labor
organizations;
 Because of the distinct nature of their work, confidential
employees are a separate category. In this regard, there is
no discrimination against them;
Non-Abridgement of the Right
to Organize
 Art. 252 speaks of the illegality of the following acts with
respect to the exercise to the right of self-organization
 Restraint
 Coercion
 Discrimination
 Undue interfere with employees and the workers in their
exercise of self-organization right
Non-Abridgement of the Right
to Organize
 Alexander Reyes vs. Cresenciano Trejano , GR No. 84433,
June 1992. The right to self-organization includes the right
not to form or join a union
 Airtime Specialists vs. Ferrer- Calleja, (180 SCRA 179).
The intendment of the law is to grant to bona-fide
employees of a bargaining unit, whether members of a labor
organization or not, the right to vote in certification
elections
 However, by virtue of the operation or enforcement of a
closed shop clause in a CBA, an employee may be
compelled under pain of dismissal, to become a member of
a labor union.
Non-Abridgement of the Right
to Organize
 May an ER impose as condition for employment that the
applicant shall not join a labor organization or shall
withdraw from the one he belongs to?
 No. Such a condition partakes of the nature of a “yellow
dog contract” and constitutes an unfair labor practice. It is
interference with the individual’s right to self-organization.
Non-Abridgement of the Right
to Organize
 SPFL v. Calleja, 179 SCRA 127, GR No. 80882, April
1989. The right to self-organization must be upheld in the
absence of express provision of law to the contrary. It
cannot be curtailed by a Collective Bargaining Agreement
Labor Code Provisions on
Unfair Labor Practices
 Art. 253 – concept of ULP and procedure for prosecution
 Art. 254 – ULP by employers
 Art. 255 – ULP by labor organizations
 Art. 267 – CBA violations which are gross in character
 Art. 270(c) – union busting involving dismissal of union
officers which threatens existence of union
Elements of Unfair Labor
Practice
 Concurrence of BOTH
1. There should exist an employer-employee relationship
between the offended party and offender
2. Act complained of must be EXPRESSLY mentioned and
defined in the Labor Code
ULP of Employers

 Interference, restraint, coercion of employees in the exercise

of their right to self organization;
 Yellow dog contract
 Contracting out services or functions performed by union
members, that interfere, restrain or coerce employees in the
exercise of their right
 Company union
Company Union

 Initiate, dominate, assist or otherwise interfere with the

formation or administration of any labor organization
 Includes giving of financial or other support to it or its
organizers or supporters
ULP of Employers

 Discrimination
 Wages, hours of work, terms and conditions of employment
 Except with respect to Union Security Clauses
 Dismissal or prejudice or discrimination by reason of
testimony
 Violation of duty to bargain
 Payment of Negotiation or Attorney’s Fees to the Union, its
officers or agents
 Violate CBA
ULPs of Labor Organizations

 Restraint or coercion of employees in the exercise of their

right
 Causing or attempting to cause employer to discriminate
against an employee
 Violate duty, or refuse to bargain collectively with employer
 Causing or attempting to cause employer to pay or deliver
any money or other things of value for services which are
not performed, including demand for union negotiation fees
(Feather-bedding)
ULPs of Labor Organizations

 Ask for or accept negotiation or attorney’s fees from

employers as part of settlement of any issue in collective
bargaining or any other dispute
 Violation of a CBA
Criminal Liability for ULPs

 Only officers or agents of corporations, associations or

partnerships who actually participated in, authorized or
ratified ULPs to be held criminally liable
 On the part of the Union, its officers, members of governing
boards, representatives or agents
Totality of Conduct Doctrine

 Expressions of opinion by an employer, though innocent in

themselves, may be constitutive of ULP because of the
circumstances under which they are uttered, the history of
the employer’s labor relations or anti-union bias or because
of their connection with an established collateral plan of
coercion or interference.
Union Security Clause

 Stipulation in the CBA where management recognizes

membership of employees in the union which negotiated
said agreement should be maintained or continued as a
condition of employment or retention of employment
 Purpose is to safeguard and ensure continued existence of
the union
Union Security Clause, Types

 Closed shop
 Maintenance of membership agreement
 Union shop agreement
 Modified union shop
 Exclusive Bargaining Agreement
 Bargaining for members only agreement
 Agency shop agreement
 Preferential hiring agreement
Legal Principles Pertinent to
Union Security Clause
 Employer must still afford employee due process
Collective bargaining and
administration of agreement
Collective Bargaining

 A process by which the representatives of an employer and

its employees to discuss and negotiate concerning wages,
hours of work, benefits and other terms and conditions of
employment for the purpose of concluding a contract that is
mutually acceptable to the parties.
Collective Bargaining

 A democratic framework to stabilize Er-Ee relations, to

create a climate of sound and stable industrial peace
 A mutual responsibility & legal obligation of the employer
and the union
 Collective bargaining denotes negotiations looking forward
to a collective agreement, however, it is a continuous
process.
Collective Bargaining, Process

 Negotiation of wages, hours & terms, conditions of

employment
 Execution of written contract embodying terms
 Negotiation of issues arising out of interpretation or
application of agreement
 Negotiation of terms of new contract, or proposed
modifications.
Collective Bargaining, Process

 System of collective bargaining consists of:

 Negotiation of contracts (legislative phase)
 Administration of contract (executive phase)
 Interpretation or application (judicial phase)
Collective Bargaining, Process
(Article 260, 261, Labor Code) Engaged Party makes reply thereto
Party seeking negotiation
serves written notice & within 10 calendar days from
receipt of notice
statement of proposals

Conciliation proceedings by Request for conference within 10

NCMB to resolve dispute, calendar days to address differences
either motu proprio or upon in proposals
request
Collective Bargaining
Agreement
 A contract
 executed upon request of either the employer or the
exclusive bargaining representatives
 Incorporating all agreements reached during negotiations
 With respect to wages, hours of work and other terms and
conditions of employment
 Including proposals for adjusting any grievance or questions
under such agreement
Collective Bargaining
Agreement
 Azucena:
“It is more than a contract; it is a generalized code to
govern a myriad cases which the draftsmen cannot wholly
anticipate. It covers the whole employment relationship and
prescribes the rights and duties of the parties. It is a system
of industrial self-government with the grievance machinery
at the very heart of the system.”
Collective Bargaining, Process

 Management may only be compelled to deal and negotiate

when the following juridical preconditions are present:
1. Possession of status of majority representation by the Ee’s
representative, in accordance with Art. 266-271 of the Labor
Code
2. Proof of majority representation
3. Demand to bargain
 ALU vs. Ferrer-Calleja, 173 SCRA 178
Collective Bargaining, Parties
Employer Where there is no
relationship, there
is no duty to
bargain,

Where there is no
duty to bargain,
refusal to bargain
violates no right. Employees (thru SEBA)
Collective Bargaining, Parties

 Bargaining Representative
 Refers to the Legitimate Labor Organization selected or
designated by the employees. Does not refer to its officers.
 How selected is discussed under Articles 266-271 of Labor
Code
 See Phil. Diamond Hotel & Resort vs. MDHEU G.R. No.
158075, June 30, 2006: Only LOs designated or selected by
the majority of the employees in an appropriate bargaining
unit may engage the employer for collective bargaining
Selection or Designation of
Exclusive Bargaining Agent
 Manifestation of workers’ participatory right
 PAL vs. NLRC (GR No. 85985, Aug. 1993) – “The CBA
may not be interpreted as cession of employees’ right to
participate in the deliberation of matters which may affect
their rights and the formulation of policies relative
thereto.”
 May be exercised by a Labor-Management Council, aside
from or instead of a union (dealing with the employer vs.
collective bargaining)
 Does not preclude the exercise of an individual employee’s
right to raise his own grievance.
Collective Bargaining Unit

 That group of jobs and jobholders represented by the

recognized or certified union when it bargains with the
employer.
 May comprise all of the supervisors or, separately, all the
rank-and-file population of the company.
 The law favors having only one grouping per category
(following the “united-we-stand, divided we fall” logic), but
does not prohibit sub-groups that are “appropriate.”
CBU, Under DO 40-03

 Refers to a group of employees sharing mutual interests

within a given employer unit, comprised of all or less than
all of the entire body of employees in the employer unit or
any specific occupational or geographical grouping within
such employer unit.
What is Appropriateness?

 BLR’s primary function, considering all legally relevant

factors.
 Bargaining Unit may be determined following the four
recognized modes:
1. Substantial Mutual Interests principle or community or
mutuality of interests rule
2. Will of the Employees (Globe Doctrine)
3. Collective Bargaining History
4. Employment Status
Substantial Mutual Interests
Rule
 Employees sought to be represented must have substantial
mutual interests in terms of employment and working
conditions
 Characterized by similarity of employment status, same
duties and responsibilities and substantially similar
compensation and working conditions.
Substantial Mutual Interests
Rule
 There must be a logical basis for the formation of a
bargaining unit.
 Adherence to the adage “Strength in Numbers”
 Geographical location can be completely disregarded if
communal or mutual interests of the employees are not
sacrificed.
 However, if employers in two plants are clearly distinct,
each group of employees in the plants are treated as separate
units (Diatagon vs. Ople)
Cases, Substantial Mutual
Interests
 SMC Employees Union vs. Confesor, (GR No. 111262, Sep.
1996)
 Philtranco Service Enterprises vs. BLR, (GR No. 85343,
Jun. 1989)
 SMC vs. Laguesma (GR No. 100485, Sep. 1994)
 SMC Supervisors and Exempt Employees Union vs.
Laguesma (GR No. 110399, Aug. 1997)
Cases, Substantial Mutual
Interests
 St. James School of Quezon City vs. Samahang
Manggagawa sa St. James School of Quezon City (GR No.
151326, Nov. 23, 2005)
Globe Doctrine

 Globe Machine and Stamping Co., 3 N.L.R.B. 294 (1937),

A petitioning union claimed that there were three separate
bargaining units in the plant, whereas an intervening union
argued for treating the plant as one overall unit.
The US NLR Board found that either arrangement would
result in appropriate bargaining units, and concluded that the
question was so evenly balanced that the determining factor
should be the desire of the employees themselves.
Globe Doctrine

 Globe Machine and Stamping Co., 3 N.L.R.B. 294 (1937),

Each of the three separate units was given the opportunity
to vote for the petitioning union (and representation as a
separate unit), the intervening union (and representation as an
overall unit), or no union.
The Globe procedure thereby allows employees "to
determine the scope of a unit by allowing them to cast a vote
for each of several potential units which the Board has
determined are appropriate."
Globe Doctrine

 US Case: Globe Machine & Stamping Co. (3 NLRB 294,

1937)
 In defining the appropriate bargaining unit, … the
determining factor is the desire of the workers themselves.
Consequently, a certification election should be held
separately to choose which representative union will be
chosen by the workers.
Collective Bargaining History

 Prior collective bargaining history and affinity of employees

should be considered in determining the appropriate
bargaining unit.
 The existence of a prior collective bargaining history is
neither decisive nor conclusive in the determination of what
constitutes an appropriate bargaining unit (see SMC vs.
Laguesma, NAFTU vs. Mainit Lumber Devt. Company
Workers Union)
CB History vs. Mutuality of
Interest
 NAFTU vs. Mainit – SC applied mutuality of interest
among workers in sawmill division and logging division,
despite the history of divisions being treated as separate
units and geographical distance (see also SMC vs.
Laguesma)
Employment Status

 Casual employees and those employed on day-to-day basis

– must be considered separate because there is no mutuality
of interest (Philippine Land-Air-Sea Labor Union vs. CIR,
GR No. L-14656, Nov. 1960)
 Confidential employees cannot be allowed to be included in
rank-and-file bargaining units
 Belyca Corporation vs. Ferrer-Calleja (GR No. 77395, Nov.
1988)
Selection of Bargaining
Representative
 Certification Election
 Consent Election
 Voluntary Recognition
Certification Election

 Process of determining by secret ballot the sole and

exclusive bargaining agent of the employees in an
appropriate bargaining unit, for purposes of collective
bargaining.
Certification Election

 No longer necessary under the following circumstances

 Voluntary recognition of the employer
 Employees designate the union as the bargaining
representative
Certification Election,
Requisites
 Organized establishments
 Petition questioning the majority status of the incumbent
bargaining agent is filed with the DOLE during the 60-day
freedom period
 Verification of Petition necessary
 Support of at least 25% of all employees in bargaining unit
 In unorganized establishments, certification election shall be
“automatically” conducted upon the filing of a petition by a
legitimate labor organization
Party Filing Certification
Election
 Legitimate labor organization, or
 Employer, when requested by a labor organization to
bargain and status of organization is in doubt.
 Note: Art. 264-A – Employer is a bystander in petitions of
certification election. Employer’s participation limited to:
 Being notified or informed of petitions of such nature
 Submitting list of employees to Med-Arbiter during pre-
election conference
Petition for Certification
Election
 May be filed at any time in the absence of a CBA, except:
 Certification year-bar rule
 Bargaining deadlock bar rule
 Contract bar rule
Petition for Certification
Election
 Certification year-bar rule – A certification election may not
be filed within one year from the date of a valid
certification, consent or run-off election, or one year from
the date of voluntary recognition.
Petition for Certification
Election
 Bargaining deadlock-bar rule.
 Before the filing of a petition for certification election, the
duly recognized or certified union has commenced
negotiations with the employer within the one-year period
from the date of a valid certification, consent or run-off
election or voluntary recognition.
 A bargaining deadlock to which an incumbent or certified
bargaining agent is a party had been submitted to conciliation
or arbitration or become the subject of a valid notice of strike
or lockout.
Cases, Bargaining Deadlock
Rule
 Kaisahan ng Manggagawang Pilipino (Kampil-Katipunan)
vs. Trajano (GR No. 75810, Sept. 1991)
 Capitol Medical Center Alliance of Concerned Employees-
USFW vs. Laguesma (GR No. 118915, Feb. 1997)
Contract Bar Rule

 The BLR shall not entertain any petition for certification

election or any other action which may disturb the
administration of duly registered existing collective
bargaining agreements affecting the parties.
Exceptions

 60-day Freedom Period

 CBA is not registered with the BLR
 CBA contains provisions lower than statutory standards
 Falsified, fraudulent or misrepresented documents
 Incomplete CBA
 Collective bargaining and negotiations entered into prior to
the 60-day freedom period
 Internal strife in the union resulting in an industrial dispute
which does not foster industrial peace.
Petition for Certification Election,
Other Grounds for Dismissal
 Petitioner is not listed in DOLE’s registry of legitimate
labor organizations, or whose registration is revoke or
cancelled with finality
 Petition filed outside of freedom period, provided that the
60 day period based on the original CBA shall not be
affected by any amendment, extension or renewal of the
CBA
 Failure to submit 25% support requirement for filing of
petition
Consent Election

 Voluntarily agreed upon by the parties with or without the

intervention of the DOLE
Distinction, Certification
Election vs. Consent Election
 Certification Election – to determine the sole and exclusive
bargaining agent of all the employees in an appropriate
bargaining unit for the purpose of collective bargaining;
 Consent Election – to determine the issue of majority
representation of all workers in the appropriate collective
bargaining unit mainly for the purpose of determining the
administrator of the CBA; not for the purpose of
determining the bargaining agent for purposes of collective
bargaining.
Voluntary Recognition

 Process whereby the employer recognizes a labor

organization as the exclusive bargaining representative of
the employees in the appropriate bargaining unit after a
showing that the labor organization is supported by at least a
majority of the employees in the bargaining unit.
 Available only in unorganized establishments.
FAQs

1. What is Certification Election? - Certification election is

a process of determining through secret ballot the sole
and exclusive bargaining agent (SEBA) of all the
employees in an appropriate bargaining unit for the
purpose of collective bargaining.
2. Where does a union file a petition for certification
election (PCE)? - A PCE is filed at the Regional Office
which issued the certificate of petitioning union’s
certificate of registration/certificate of creation of
chartered local.
FAQs

3. What are the requirements in filing a PCE? - Among the important

requirements are the following:
a. A statement indicating any of the following:
 That the bargaining unit is unorganized or that there is no registered CBA
covering the employees in the bargaining unit;
 If there exists a duly registered CBA, that the petition is filed within the
sixty-day freedom period of such agreement;
 If another union had been previously recognized voluntarily or certified in a
valid certification, consent or run-off election, that the petition is filed
outside the one-year period from entry of voluntary recognition or conduct
of certification or run-off election and no appeal is pending thereon.
b. In an organized establishment, the signature of at least twenty-five (25%)
percent of all employees in the appropriate bargaining unit shall be
attached to the petition at the time of its filing (Section 4, Rule VIII, of the
Department Order No. 40-03).
FAQs

4. What happens after receipt of the PCE? - The petition will be raffled to
the Med-Arbiter for preliminary conference to determine, among others,
the bargaining unit to be represented, the contending unions, and the
possibility of consent election.   
5. What happens upon approval of the conduct of certification election by
the Mediator-Arbiter? - The PCE will be endorsed to an election officer
for the conduct of pre-election conference wherein the date, time and
place of election will be identified, the list of challenged and eligible
voters will be made, as well as the number and location of polling places.
6. May a PCE be denied? - Yes, if:
a. filed before or after the freedom period of a registered CBA;
b. the petitioner union is not listed in the DOLE Registry of legitimate labor
organization; or
c. the legal personality of the petitioner-union has been revoked or cancelled with
finality.
FAQs

7. Who conducts CEs? - The DOLE Regional Office

through the election officer conducts the certification
election.
8. How is the SEBA determined? - The union that garners
majority of the valid votes cast in a valid certification
election shall be certified as the SEBA.
9. May election protest be entertained? - Yes, but protest
should have been first recorded in the minutes of the
election proceedings.
10. What happens if the petitioner union fails to garner the
majority of the valid votes cast? - There will be no
SEBA, but another PCE may be filed one year thereafter. 
FAQs

11. What are the requisites for certification election in organized

establishments? - Certification election in organized establishments
requires that:
a. a)    a petition questioning the majority status of the incumbent
bargaining agent is filed before the DOLE within the 60-day freedom
period;  
b. b)    such petition is verified; and
c. c)    the petition is supported by the written consent of at least twenty-
five percent (25%) of all employees in the bargaining unit.
12. What is the requirement for certification election in unorganized
establishments? - Certification election in unorganized
establishments shall “automatically” be conducted upon the filing
of a petition for certification election by an independent union or a
federation in behalf of the chartered local or the local/chapter itself. 
FAQs

13. May an employer file a PCE? - Yes, the employer may file a PCE
if it is requested to bargain collectively.
14. May an employer extend voluntary recognition to a legitimate
labor organization without filing a PCE? - Yes, management may
voluntarily recognize a union if there is no other union in the
company and if other requirements are complied with (Sec. 2,
Rule 7 of D.O. 40-03).   
15. What is the role of employer in certification election? - The
employer shall not be considered a party to a petition for
certification election, whether it is filed by an employer or an
LLO, and shall have no right to oppose it. Its participation shall
be limited only to being notified or informed of petition for
certification election and submitting the certified list of employees
or where necessary, the payrolls (Employer as Bystander Rule).
Collective Bargaining
Agreement
 A negotiated contract between a legitimate labor
organization and the employer concerning wages, hours of
work and all other terms and conditions of employment in a
bargaining unit
 Deemed as the law between the parties during its lifetime
 Provisions are construed liberally
Legal Principles Applicable to
CBA
 A proposal not embodied in the CBA is not part thereof
 Minutes of CBA negotiation have no effect if not incorporated
in the CBA
 Making a promise during the CBA negotiation is not
considered bad faith
 Adamant stance resulting in impasse is not bad faith
 No terms and conditions may be imposed by the DOLE or any
other agency which the law and the parties did not intend to
reflect in the CBA
 Signing bonus is not demandable under the law
 Allegations of bad faith are erased with the signing of the CBA
Collective Bargaining, Kinds

 Single Enterprise
 Between on certified labor union and one employer
 Multi-Employer Bargaining
 Between and among several certified labor unions and
employers
 Conditions
 Only LLOs that are the SEBA may participate and negotiate
 Only employers with counterpart LLOs which are incumbent
bargaining agents may participate
 Employers must consent to multi-enterprise bargaining may
participate
Duty to Bargain Collectively

 Where there is yet no CBA:

 Compliance to Article 256, LC
 Er and union must MEET, CONVENE and CONFER for
collective bargaining purposes
 Requisites of collective bargaining must be complied with
 Er-Ee relationship
 Majority status of bargaining union
 Demand to negotiate
 Advantage where the negotiations have no precedent CBA:
Clean slate, unencumbered by previous agreements
Duty to Bargain Collectively

 Where there exists a CBA

 Neither party shall terminate nor modify such agreement
during its lifetime.
 Parties may serve notice to terminate or modify agreement
during freedom period
 Parties to keep the status quo during freedom period until new
agreement is reached.
Requisites in Relation to CBA

 Posting of CBA
 Posted in two conspicuous places in the work premises, at
least five days prior to ratification
 Mandatory requirement; non-compliance will result in
ineffectiveness of CBA (ATU vs. Trajano, 1988)
 Employer responsible for posting (ALU vs. Ferrer-Calleja,
May 1989)
 Ratification by Majority of Employees in Bargaining Unit
 Registration of CBA
Refusal to Negotiate

 Ignoring all notices for negotiation and requests for counter-

proposals
 Refusing to bargain anew on economic terms of the CBA,
using flimsy excuses such as questioning union
 Not serving an answer
 All the above are indications of bad faith
Refusal to Negotiate

 Employer who violates the duty to bargain collectively loses

its statutory right to negotiate or renegotiate terms and
conditions of the draft CBA; and may impose the adoption
of the proposals of the union as the CBA
 Cases
 General Milling Corporation vs. CA,
 Kiok Loy vs. NLRC
 Divine Word University of Tacloban vs. SOLE
Lifetime of a CBA

 Representation aspect – 5 years, meaning no petition

questioning the majority status of the incumbent agent shall
be entertained by DOLE
 Economic and non-economic provisions except
representation renegotiated not later than three years after its
execution
Retroactivity of CBA

 New CBA concluded by negotiation

 The CBA or other provisions of such agreement entered into
within 6 months from expiration of term shall retroact to the
day immediately following date of expiration
 If entered into beyond 6 months, parties shall agree on
effectivity
 CBA concluded through arbitral award
 LMG Chemicals Corporation vs. Secretary of DOLE, (GR No.
127422, April 2001)
Breaking the Deadlock

 Conciliation and Mediation with NCMB, DOLE

 Declaration of Strike or Lockout
 Referral to conciliation or voluntary arbitration
Grievance and Voluntary
Arbitration
Grievance

 Any question by Er or union regarding

 interpretation or application of the CBA, or
 company personnel policies, or
 Any claim by either party that the other party is violating the
CBA or company personnel policies.
 Complaint or dissatisfaction arising from the interpretation
or implementation of CBA and those arising from
interpretation or enforcement of personnel policies.
Grievance Machinery

 Refers to mechanism for the adjustment and resolution of

grievances arising from the interpretation or implementation
of a CBA and those arising from the interpretation and
enforcement of company personnel policies.
Grievance Procedure

 Internal rules of procedure established by the parties in their

CBA with voluntary arbitration as the terminal step.
 Refers to the system of grievance settlement at the plant
level as provided in the CBA.
 Consists of successive steps starting at complainant and his
immediate supervisor, up to the level of top union and
company officials
Grievance Procedure

 All grievances submitted to the grievance machinery that

are not settled in seven calendar days from submission shall
be referred to Voluntary Arbitration prescribed in the CBA
 Voluntary Arbitrators shall be named and designated in
advance, or include a procedure for selection of VAs.
 In case parties fail to select VA, NCMB shall designate
Voluntary Arbitration

 Mode of settling labor-management disputes

 Parties select a competent, trained and impartial third person
 Decision based on merits of the case
 Decision is final and executory
Voluntary Arbitration vs. Court

Voluntary Arbitration Courts of Law

Proceedings may be Informal Proceedings are Formal
Precedents set by other arbitration Doctrine of Stare Decisis
not obligatory on VAs
Rules on evidence are not Rules on evidence outline points
imposed, hence arbitrator of admissibility of evidence
determines what is admissible
Arbitrators are highly specialized Judges considered as generalists
Arbitrable Disputes

 Contract-negotiation disputes
 Terms and conditions of contracts
 Collective bargaining issues
 Known as arbitration of “interest”
 Contract interpretation disputes
 Arises out of existing CBAs
 Known as arbitration of “grievance” or “rights”
Interplay of Jurisdiction, Labor
Arbiters vs. Voluntary Arbitrators
 Jurisdiction of LA – Article 223
 Jurisdiction of VA- Article 267, 268
 Interpretation or implementation of CBA are disposed of by
LAs by referring the matter to the grievance machinery, of
which the terminal step is voluntary arbitration
 Under Article 268, VAs may, upon voluntary agreement of
the parties hear and decide ALL other labor disputes
including ULP and bargaining deadlocks
Interplay of Jurisdiction, Labor
Arbiters vs. Voluntary Arbitrators
 Termination disputes may fall within the jurisdiction of
VAs, provided that the parties had agreed in unequivocal
language that the termination dispute would be referred to
the grievance machinery and voluntary arbitration.
Cases

 San Jose vs. NLRC & Ocean Terminal Services (GR

121227, Aug. 1998)
 San Miguel Corporation vs. NLRC
 Sanyo Philippines Workers Union vs. Canizares, GR No.
101619, July 1992
Voluntary Arbitrator

 Any person accredited by NCMB as such, or

 Any person named or designated in the CBA as such, or
 One appointed by the NCMB in case either party refuses to
submit to voluntary arbitration

 Note that VAs are not part of DOLE or any government

agency. His authority to render arbitral awards are vested
by law.
Enforcement of VA’s Decision

 Article 268-A: Upon motion of any interested party, the VA

may issue a writ of execution requiring the sheriff of the
NLRC or regular courts or public officials whom the parties
may designate in the submission agreement
Strikes, Lockouts and
Picketing
Concerted Activities

 People planning and acting together

 One undertaken by two or more employees, or by one on
behalf of others.
Strikes

 Temporary stoppage of work by the concerted action of the

employees as a result of an industrial or labor dispute.
 Consists not only of concerted work stoppages but also
sitdowns, mass leaves, slowdowns, attempts to damage,
destroy or sabotage plant equipment or facilities and similar
activities.
Strikes

 Cessation of work by employee in an effort to get more

favorable terms for employment
 Concerted refusal by employees to do any work for their
employer, or work at their customary rate of speed until the
object of strike is attained by employer’s concession
Characteristics of Strikes

 Established relationship between strikers and persons

against whom the strike is called
 Relationship must be of employer-employe
 Existence of dispute between the parties and the utilization
by labor of the weapon of concerted refusal to work as a
means of persuading or coercing compliance to demands
Characteristics of Strikes

 Even though work cessation is by “belligerent suspension,”

Employment relations still continue
 Work stoppage is temporary
 Concerted action by employees
 Striking group is a LLO, and in the case of bargaining
deadlock, the sole bargaining representative
Lockout

 Temporary stoppage of work by reason of refusal of an

employer to furnish work as a result of an industrial or labor
dispute
Lockout

 An employer’s means of protecting his bargaining position

 Employer must show that his act is primarily defensive, and
not an act of hostility to collective bargaining or of
discriminaiton.
Valid Lockouts

 To forestall threatened acts of sabotage (Rizal Cement

Workers Union vs. Madrigal Co.)
 In anticipation of a threatened strike where motivated by
economic considerations
 In response to unprotected strike or walkout
 In response to a whipsaw strike
Picketing

 A right given to workers to peacefully march to and from

before an establishment involved in a labor dispute
accompanied by the carrying and display of signs, placards
and banners intended to inform the public about the dispute.
Picketing Allowed by Law

 Included in the constitutional guarantee

 to engage in concerted activities for purposes of collective
bargaining for their mutual benefit and protection
 Freedom of speech principle
 Can be performed by persons even in the absence of Er-Ee
relationship
Limitations

 Right to peaceful picketing should be exercised with due

respect to the right of others; coercion, intimidation or acts
of violence are strictly prohibited
 Picketers cannot rightfully prevent employees of another
company which is not their employer from entering or
leaving their rented premises (innocent bystander)
Kinds of Strikes

 Extent
 General – occur over a whole community, province, state or
country. An extended form of sympathetic strike; many
workers stop working to put pressure on government or
paralyze economic & social systems
 Local or Particular – applies only in a particular enterprise or
locality
Kinds of Strikes

 Nature of the Act

 Sitdown Strike – Possession, trespass and prevention of access
and operation
 Slowdown – reduction of production output
 Partial or quickie strike – intermittent, unannounced work
stoppage; used interchangeably with wildcat strike
Kinds of Strikes

 Employee Interest
 Primary Strike – declared by employees who have a direct and
immediate interest in the subject of the dispute between them
and the Er
 Secondary Strike – Coercive measure adopted by workers
against an employer connected by product or employment
with alleged unfair labor conditions or practices
 Sympathetic Strike – striking employees have no demands or
grievances of their own, but strike to directly or indirectly aid
others without direct relation to the advancement of the
interest of the strikers.
Kinds of Strikes

 Economic Strike – one intended to force wage and other

concessions from the employer, which he is not required by
law to grant.
 Unfair Labor Practice Strike – called against the ULP of the
employer, usually for the purpose of making him desist
from further committing such practices. Called for mutual
protection, and for the discontinuance of employer abuses.
Avoidance of Strikes

 Parties must first exhaust measures or remedies that will

avoid the strike, akin to the doctrine of Exhaustion of
Administrative Remedies.
 Only when non-disruptive alternatives have proved
unsuccessful may strikes be deemed justified.
 Jumping the gun on the grievance procedure/voluntary
arbitration of a dispute will mean that the strike is
PREMATURE, thus illegal
Avoidance of Strikes

 Once an issue has been submitted for conciliation,

mediation or compromise, the employees cannot resort to a
strike.
 Discussions during conciliation proceedings are confidential
and treated as privileged information
 Parties can enter into compromise agreements to avoid a
strike, which compromise shall be immediately final and
executory.
Labor Code Provisions
Protecting the Right to Strike
 Art. 260 – Not subject to labor injunction or restraining
order
 Art. 254 – No discrimination against striker in the exercise
of the right
 Art. 270(a) – Preservation of employment relationship
 Art. 270(c) – Prohibition on Strike-breakers
Strikes, Mandatory Requisites

First requisite: Valid and factual ground

 (1) CBA Deadlock; and
 (2) Unfair labor practice (ULP).

Second Requisite: Notice (of Strike or Lockout)

 (1) CBA Deadlock - 30 days from intended date of strike
 (2) Unfair labor practice (ULP) – 15 days.
Strikes, Mandatory Requisites

Third requisite: Notice to NCMB-DOLE at least 24 hours

prior to the taking of the strike or lockout vote (secret ballot)
 Decision to conduct vote
 Date, time and place

Fourth Requisite: Strike or Lockout Vote

 Majority approval required
 Must be implemented even in cases of union-busting
Strikes, Mandatory Requisites

Fifth requisite: Strike/Lockout Vote Report

 Submitted at least seven days prior to strike/lockout
 If report submitted during cooling off period, seven day waiting
period begins on the day following the cooling off period
 If for union busting, cooling period may be dispensed with

Sixth Requisite: Cooling Off Period

 Reckoned from filing of notice of strike/lockout
 30 days for deadlock, 15 for ULP
 If strike is for union-busting, period is dispensed with
Strikes, Mandatory Requisites

Seventh requisite: Waiting period

 Seven days from submission of strike vote report
Nota Bene: Strike Rules

1. Failure to comply with requisites will render the strike or

lockout illegal.
2. A strike or lockout based on non-strikeable issues is
illegal
3. A strike or lockout is illegal if the issues involved are
already subject of compulsory or voluntary arbitration or
conciliation or the steps in grievance machinery are not
exhausted.
4. A strike or lockout is illegal if unlawful means were
employed or prohibited acts or practices were committed
(e.g., Use of force, violence, threats, coercion, etc.;
Barricades, blockades and obstructions of ingress to
[entrance] or egress from [exit] the company premises).
5. A strike or lockout is illegal if the notice of strike or
Nota Bene: Strike Rules

6. A strike or lockout is illegal if staged in violation of the “No-

Strike, No-Lockout” clause in the collective bargaining
agreement.
7. A strike or lockout is illegal if staged in violation of a temporary
restraining order or an injunction or assumption or certification
order.
8. A strike is illegal if staged by a minority union.
9. A strike or lockout is illegal if conducted for unlawful purpose/s
(e.g.: Strike to compel dismissal of employee or to compel the
employer to recognize the union or the so-called “Union-
Recognition Strike”)
10. The local union and not the federation is liable to pay damages
in case of illegal strike.
Preventive Mediation

 The NCMB has the authority to convert a notice of strike filed

by the union into a preventive mediation case if it finds that the
real issues raised therein are non-strikeable in character.
 NCMB has duty to exert all efforts at mediation and conciliation
to enable parties to settle the dispute amicably and in line with
the state policy of favoring voluntary modes of settling labor
disputes.
 Once a notice of strike/lockout is converted into a preventive
mediation case, it will be dropped from the docket of notices of
strikes/lockouts.
 Once dropped therefrom, a strike/lockout can no longer be
legally staged based on the same notice. The conversion has the
effect of dismissing the notice.
Illegal Strikes

1. Those that are expressly prohibited by law

2. Does not comply with statutory requirements
3. Declared for an unlawful purpose
4. Employs unlawful means
5. In violation of an existing injunction
6. In violation of assumption or certification order
7. Violation of no-strike, no-lockout clause
8. Minority union calls strike
9. Strike by a non-registered union
10. Premature strike
Assumption of Jurisdiction

 Occurs when labor dispute that caused or may cause strike

is in an industry indispensable to the national interest
 DOLE Secretary assumes jurisdiction and
 May decide the case, or
 Certify the same to the NLRC for compulsory arbitration
 The power of assumption of jurisdiction over labor disputes
in these industries is in the nature of the POLICE POWER
measure
Effects of Assumption

 Automatically enjoins intended or impending strike or

lockout
 All striking or locked out employees shall return to work
immediately
 Note that striking employees are not considered to have
abandoned their employment, but only ceased from their labor
 Employer shall resume operations and admit all workers
under same conditions pre-strike
 No Motion for Reconsideration will stay the assumption
order
Wages to be paid during strike

 No work, no pay rule applied

 Exceptions
 ULP strike
 Unconditional and voluntary offer to return to work is refused
by employer
 Employees are discriminated against despite a RTWO
 Non-participating employees were locked out by employer
 Reinstatement no longer possible
Prohibited Activities

 Article 270 - Note prohibitions on:

 Labor Organizations
 Third Persons
 Employers
 Public Officials or Employees
 Picketers
Return to Work Order

 Enjoins striking workers to RETURN TO WORK

 Defiance of RTWO is considered an illegal act
 Strike becomes illegal
 Defiant strikers may be sanctioned with disciplinary
measures, e.g. dismissal or loss of employment status or
criminal prosecution
Improved Offer Balloting

 NCMB shall conduct a referendum by secret ballot on or

before 30th day of the strike;
 If majority of union members accept offer
 Striking workers shall return to work immediately
 Employer readmits striking workers upon signing of
agreement
 Initiated when EMPLOYER makes an offer that is, in his
opinion, better than his previous stance in the labor dispute
Reduced Offer Balloting

 NCMB shall conduct a referendum by secret ballot on or

before 30th day of the lockout;
 If majority of board members, trustees or directors accept
offer
 Locked out workers shall return to work immediately
 Employer readmits workers upon signing of agreement
 Initiated when STRIKERS make an offer that is, in their
opinion, more acceptable than their previous stance in the
labor dispute
Post Employment
SECURITY OF TENURE
MANAGEMENT PREROGATIVES
TERMINATION OF EMPLOYMENT
Security of Tenure & Kinds
of Employment
Security of Tenure

 Defined: The constitutional right granted the employee that

the employer shall not terminate the services of an
employee except for JUST CAUSE, or when
AUTHORIZED BY LAW.
 It extends to regular (rank and file, managerial) as well as
non-regular employment (probationary, seasonal, project)
 Applies as protection from unwarranted and unconsented
demotion and transfer
Kinds and Forms of
Employment
 Article 294 (280)
 Regular
 Casual
 Project
 Seasonal
 Other forms
 Fixed Period
 Probationary
Regular Employment

 Employee has been engaged to perform activities which are

usually necessary or desirable in the usual business or trade
of the employer;
 One year of service has been rendered, whether continuous
or broken, with respect to the activity in which he is
employed;

Employee must be allowed to work after probationary period in both

instances.
Determining Regular Status

 Nature of Work Test – Whether or not there is reasonable

connection between the particular activity performed by the
employee in relation to the usual business or trade of the
employer
 Period of Service Test – Employee’s length of service is at
least one year, whether continuous or broken
 Probationary Employee Test – Whether or not the employee
is allowed to work after the lapse of the probationary period.
Cases:Regular Employment

 ABS-CBN vs. Marlyn Nazareno (26 Sept. 2006)

 Fabela vs. SMC, (Feb. 28, 2007)
 De Leon vs NLRC, (176 SCRA 615)
 Hacienda Fatima, (Jan. 28., 2003)
Casual Employment

 Employee has been engaged to perform activities which are

NOT necessary or desirable in the usual trade or business of
the employer
 Once a casual employee has rendered at least one year of
service, his status becomes REGULAR; no appointment or
declaration necessary
The purpose of this rule is to honor the constitutional
guarantee of security of tenure and right to self-organization
Cases: Casual Employment

 Conti vs. NLRC

 Baguio Country Club vs. NLRC
Project Employment

 Employee has been engaged for a SPECIFIC project or

undertaking
 the completion or termination of the project has been
determined at the time of engagement of the employee
 REGULAR STATUS vested when
 Continuous re-hiring of project employees even after the
cessation of a project for the same tasks or nature of tasks
(Tomas Lao Const. vs. NLRC, 276 SCRA)
 Tasks performed by project employee are vital, necessary and
indispensable to the usual business or trade of the employer
Project Employees

 Exodus International Construction Corporation, et al. v.

Guillermo Biscocho, et al., G.R. No. 166109, Feb. 2011:
 Two types of employees in the construction industry:
 Project employees or those employed in connection with a particular
construction project or phase thereof and such employment is
coterminous with each project or phase of the project to which they
are assigned.
 Non-project employees or those employed without reference to any
particular construction project or phase of a project; when one
project is completed, employees are automatically transferred to the
next project awarded to employer. There was no employment
agreement given employees which clearly spelled out the duration
of their employment and the specific work to be performed and
there is no proof that they were made aware of these terms and
conditions of their employment at the time of hiring.
Project Employees: Security of
Tenure
 No dismissal before completion of project, except for just or
authorized cause;
 Must comply with procedural requirements;
 No need for notice of termination upon the expiration of
project period;
Project Employees: Security of
Tenure
 Prior to dismissal, report must be made to the nearest
employment office of the termination of services every time
project is completed.
Fixed Period Employment

 Employment is for a pre-determined period established at

the time of engagement (Read St. Theresa’s School of
Novaliches vs. NLRC, 289 SCRA 110)
 Employee’s duties are usually necessary and desirable to the
usual business or trade of the employer
Fixed Period Employment:
Validity
1. 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; or
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. (Lynvil Fishing Enterprises, Inc. vs. Andres
G. Ariola, et al., G.R. No. 181974, Feb. 2012)
Probationary Employment

 Employer required to inform the probationary employee of

such reasonable standards at the time of his engagement, not at
any time later; else, the latter shall be considered a regular
employee. (Section 6, Implementing Rules of Book VI, Rule VIII-
A, Labor Code)
 Purpose:
 Employer observes the fitness, propriety and efficiency of a probationer
to ascertain whether he is qualified for permanent employment,
 Employee seeks to prove he has the qualifications to meet the
reasonable standards for permanent employment.
 Length of time the probation depends on the parties’ agreement, but
not to exceed six (6) months under Article 295 (281) of the Labor
Code.
Probationary Employment

 Cases
 Canadian Opportunities Unlimited, Inc. vs. Bart Q. Dalangin,
Jr., G.R. No. 172223, February 6, 2012.
 Armando Ailing vs. Jose B. Feliciano, Manuel F. San Mateo
III, et al., G.R. No. 185829. April 25, 2012.
Seasonal Employment

 Work or service is seasonal in nature and the employment is

for the season’s duration
 Considered as regular if re-engaged after one season
 Seasonal employees not laid off during the end of season,
simply on leave w/o pay until re-employment
 Relationship is only suspended, not severed
Seasonal Employment

 Work or service is seasonal in nature and the employment is

for the season’s duration
 Considered as regular if re-engaged after one season
 Seasonal employees not laid off during the end of season,
simply on leave w/o pay until re-employment
 Relationship is only suspended, not severed
Management Prerogative
Management Prerogatives

 Our laws recognize and respect the exercise by management of

certain rights and prerogatives. For this reason, courts often decline
to interfere in legitimate business decisions of employers. In fact,
labor laws discourage interference in employers’ judgment
concerning the conduct of their business. (Philippine Industrial
Security Agency Corporation vs. Aguinaldo, G. R. No. 149974,
June 15, 2005; Mendoza vs. Rural Bank of Lucban, G.R. No.
155421, July 7, 2004).
 An employer can regulate, generally without restraint, according to
its own discretion and judgment, every aspect of its business.
(Deles, Jr. vs. NLRC, G. R. No. 121348, March 9, 2000).
 This privilege is inherent in the right of employers to control and
manage their enterprise effectively. (Mendoza vs. Rural Bank of
Lucban, G.R. No. 155421, 07 July 2004).
Extent of management
prerogatives
 regulate and control all aspects of employment in their
business organizations. Such aspects of employment include
hiring, work assignments, working methods, time, place
and manner of work, tools to be used, processes to be
followed, supervision of workers, working regulations,
transfer of employees, work supervision, lay-off of
workers and the discipline, dismissal and recall of
workers. (Philippine Airlines, Inc. vs. NLRC, G. R. No.
115785, Aug. 4, 2000).
 Management retains the prerogative … to change the
working hours of its employees. (Sime Darby Pilipinas,
Inc. vs. NLRC, G.R. No. 119205, 15 April 1998, 289 SCRA
86).
Extent of management
prerogatives
 A transfer means a movement (1) from one position to another of
equivalent rank, level or salary, without a break in the service; or (2)
from one office to another within the same business establishment.
(Sentinel Security Agency, Inc. vs. NLRC, G. R. No. 122468, Sept.
3, 1998).
 Prerogative of management to transfer an employee from one office
to another within the business establishment upheld, provided
1. There is no demotion in rank or diminution of salary, benefits, and
other privileges, and;
2. Action is not motivated by discrimination, made in bad faith, or
effected as a form of punishment or demotion without sufficient cause.
(Mendoza vs. Rural Bank of Lucban, G. R. No. 155421, July 7, 2004;
Benguet Electric Cooperative vs. Fianza, G. R. No. 158606, March 9,
2004).
Transfer, tests

1. Must be exercised without grave abuse of discretion

2. Basic elements of justice and fair play adhered to.
3. Employer must be able to show that the transfer is not
unreasonable, inconvenient or prejudicial to the
employee, otherwise, the employee’s transfer is
tantamount to constructive dismissal. (The Philippine
American Life and General Insurance Co. vs. Gramaje,
G. R. No. 156963, Nov. 11, 2004; Globe Telecom, Inc.
vs. Florendo-Flores, G. R. No. 150092, Sept. 27, 2002).
Transfer

 William Endeliseo Barroga vs. Data Center College of the

Philippines, et al., G.R. No. 174158, June 2011
 Constructive dismissal is quitting because continued
employment is rendered impossible, unreasonable or unlikely,
or because of a demotion in rank or a diminution of pay. It
exists when there is a clear act of discrimination, insensibility
or disdain by an employer which becomes unbearable for the
employee to continue his employment.
 It is management prerogative for employers to transfer
employees on just and valid grounds such as genuine business
necessity, e.g. financial constraints
No vested right in position

 An employee has a right to security of tenure, but this does

not give her such a vested right in a position as would
deprive the employer of its prerogative to change employee
assignments or transfers where the employee’s service will
be most beneficial to the employer’s client.
No vested right in position

 Cases
 OSS Security & Allied Services, Inc., vs. NLRC, G. R. No.
112752, Feb. 9, 2000
 Tan vs. NLRC, 299 SCRA 169, 180 [1998]
 Chu vs. NLRC, G. R. No. 106107, June 2, 1994
Justified Refusal to Transfer

 Transfer directed by employer under questionable

circumstances
 Transfer ordered during height of union activities
 Used as a subterfuge to get rid of an undesirable employee
 Transfer is patently whimsical or vindictive
Justified Refusal to Transfer

 Cases
 Union activities - Yuko Chemical Industries vs. Ministry of
Labor & Employment (GR No. 75656, May 28, 1990)
 No notice of transfer as condition for training - Zafra vs. Court
of Appeals (GR No. 139013, September 17, 2002)
 Whimsical or vindictive transfer - Damasco vs. NLRC (GR
No. 115755, December 4, 2000)
Valid Transfers

 In general, transfers not characterized by grave abuse of

discretion or bad faith are all valid. The worker cannot
refuse for any of the following grounds:
 Additional expense and travel time (Genuino Ice Company vs.
Magpantay, GR No. 147790, June 27, 2006)
 Parental obligations (Tinio vs. CA, GR No. 171764, 2007)
 Anxiety
 “Home” base (PT&T Corp. vs. Laplana, GR No. 76645, July
23, 1991)
Valid Transfers

 Those directed
 By contractual stipulation (Abbott Labs vs. NLRC, GR No.
76959, Oct. 12, 1987)
 Standard Operating Procedure
 Company Policy
 Order of the Government (Bisig Manggagawa ng. Tryco vs.
NLRC, GR No. 151309, Oct. 15, 2008)
 Guidelines of Government Organs (BSP Circular mandating
rotation of bank employees
Valid Transfers

 To avoid conflict of interest (Duncan Association of

Detailman – PTGWO vs. Glaxo Wellcome Phils., GR
No.162994, September 17, 2004)
 By reason of abolition of position (Beneco vs. Fianza,
158606, March 9, 2004)
Promotion

 Advancement from one position to another, involving an

increase in duties and responsibilities authorized by law
AND increase in compensation and benefits.
 Mere increase in salary should not be determinative of
promotion, as the increase is merely incidental.
Promotion vs. Transfer

 Promotion involves a scalar ascent in rank or position

 Transfer involves lateral movement to the same rank and
salary
Promotion vs. Transfer

 A promotion can be refused, and it will not result in

punishment
 A transfer directed in good faith and in the exercise of
management prerogative cannot be refused without pain of
sanction
 A promotion that results from a transfer requires the consent
of the employee
Termination of Employment
Constitutional vs. Statutory
Due Process
 Agabon vs. NLRC (GR No. 158693, Nov. 27, 2004)
 Constitutional due process protects the individual against the
government
 Statutory due process protects the worker from unjust
termination of employment except for just cause after notice
and hearing
Requirements for Valid
Dismissal
 Substantive Due Process: Valid Causes
 Just Cause
 Authorized by Law
 Procedural Due Process:
 Written notice of the charge/s
 Opportunity to be heard
 Hearing
 Conference
 Written notice of termination
Due Process

 Skippers United Pacific, Inc. and Skippers

Maritime Services, Inc. Ltd. vs. Nathaniel Doza,
et al. (GR No. 175558, Feb. 2012)
 Substantive due process - Legality of the act of dismissal.
 Procedural due process - Legality of the manner of dismissal. consists of
twin requirements: notice and hearing.
 Employer must furnish employee with two written notices before
termination of employment:
 1st notice apprises the employee of the particular acts or omissions for which
his dismissal is sought;
 2nd notice informs the employee of the employer’s decision to dismiss him.
 Before issuance of second notice, a hearing must be complied with by giving
the worker an opportunity to be heard.
Due Process

 Substantive due process requires that dismissal by the

employer be made based on a just or authorized cause under
Articles 282 (296) to 284 (298) of the Labor Code.
Procedural Due Process -
Notice
 Notice issued prior to commission of offense does not satisfy
requirement (Janssen Pharmaceutica vs. Silayro, GR 172528, Feb.
26, 2008)
 Service of notice is a mandatory requirement
 Notice must be in writing (no form necessary)
 Must not only state the policy violated, but the corresponding penalty
of dismissal imposable thereon (Cruz vs. Coca-Cola, GR No. 165586)
 Must state that dismissal is sought
 Charges stated in general terms invalid
 Employee must be dismissed on same grounds stated in first notice
 Changing of ground for dismissal indicates lack of basis
Invalid Notices

 Warning letters (Skippers United Pacific vs. Maguad, GR

No. 166363, August 15, 2006)
 Affidavit narrating incident (Asian Terminals vs. Marbella,
GR No. 149074, August 10, 2006)
 First notice pertains to a different incident from the offense
for which employee is dismissed (Wah Yuen Restaurant vs.
Jayona, GR No. 159448, Dec. 16, 2005)
Instances when hearing not
necessary (Just Causes)
 Employee’s admission
 Termination due to abandonment
Burden of Proof & Quantum of
Evidence
 Employer has burden of proof in showing dismissal was not
illegal (Limketkai Sons Milling vs. Llamera, GR No.
152514, July 12, 2005)
 Substantial proof, not clear and convincing evidence.

Substantial Evidence Clear and Convincing Evidence

That amount of relevant evidence A medium level of burden of proof
which a reasonable mind might accept which is a more rigorous standard to
as adequate to justify a conclusion meet than the preponderance of
evidence standard, but less than proof
beyond reasonable doubt.
Cases

 Lynvil Fishing Enterprises v. Andres Ariola, et al., GR No.

181974, February 1, 2012
 Armando Ailing vs. Jose Feliciano, Manuel F. San Mateo
III, et al., GR No. 185829, April 25, 2012
Just Causes of Termination
of Employment
Just Cause: Article 296(282)

1. Serious Misconduct
2. Wilful Disobedience
3. Fraud or Breach of Trust
4. Gross Negligence
5. Analogous Causes
Serious Misconduct

 Philippine Long Distance Telephone Company v. Bolso,

G.R. No. 159701, August 17, 2007
1. Improper or wrong conduct
2. Transgression of some established and definite rule of action.
3. Dereliction of duty, wilful in character
4. Implies wrongful intent, not merely an error in judgment
Misconduct as Basis for
Dismissal
 Marival Trading vs. NLRC, GR No. 169600, June 26, 2007
a) it must be serious;
b) it must relate to the performance of the employee’s
duties; and
c) it must show that the employee has become unfit to
continue working for the employer.
Cases

 Joeb M. Aliviado, et al., vs. Procter & Gamble Philippines,

Inc., GR No. 160506, June 6, 2011
Wilful Disobedience

 One of the fundamental duties of an employee is to obey all

reasonable rules, orders and instructions of the employer.

 Disobedience, to be a just cause for termination, must be

willful or intentional, willfulness being characterized by a
wrongful and perverse mental attitude rendering the
employee’s act inconsistent with proper subordination.
Dismissal Proper for Willful
Disobedience
 Willful and intentional disobedience
 Where such rule, order or instruction violated is:
1. reasonable and lawful
2. sufficiently known to the employee, and
3. connected with the duties which the employee has been
engaged to discharge.
Willfulness of Disobedience

 NATHANIEL N. DONGON, Petitioner, v. RAPID
MOVERS AND FORWARDERS CO., INC., AND/OR
NICANOR E. JAO, JR., G.R. No. 163431, August 28,
2013
 Must be attended by a wrongful and perverse mental attitude
rendering the employee’s act inconsistent with proper
subordination
 Constitutes harmful behavior against the business interest or
person of his employer
 Impliedly, the erring employee obtains undue advantage
detrimental to the business interest of the employer.
Insubordination = dismissal?

Gold City Integrated Port Services vs. NLRC, GR No. 86000,

September 21, 1990
 Not always punishable with dismissal
 Reasonable proportionality between the act of
insubordination and penalty imposed therefore
 If insubordination is not an effective threat to his co-
workers or the safety of the customers dealing with his
employer, or to the goodwill of his employer, suspension is
more proportionate penalty
Cases

 Kakampi and its members vs. Kingspoint Express and

Logistics and/or Mary Ann Co, GR No. 194813, April 25,
2012
Fraud or Breach of Trust

 Refers to any fault or culpability on the part of the employee

in the discharge of his duty rendering him absolutely
unworthy of trust and confidence demanded by his position
Fraud or Breach of Trust

 Mabeza vs. NLRC, G.R. No. 118506.  April 18, 1997:

 Loss of confidence as a just cause for dismissal was never
intended to provide employers with a blank check for
terminating their employees. Such a vague, all-encompassing
pretext as loss of confidence, if unqualifiedly given the seal of
approval by this Court, could readily reduce to barren form the
words of the constitutional guarantee of security of tenure.
Fraud or Breach of Trust

 Mabeza vs. NLRC, G.R. No. 118506.  April 18, 1997:

 Loss of confidence should ideally apply only to cases
involving employees occupying positions of trust and
confidence or to those situations where the employee is
routinely charged with the care and custody of the employer's
money or property.
 managerial employees - those vested with the powers or
prerogatives to lay down management policies and/or to hire,
transfer, suspend, lay-off, recall, discharge, assign or discipline
employees or effectively recommend such managerial actions;
 those who, in the normal and routine exercise of their functions,
regularly handle significant amounts of money or property.
Requisites for Dismissal for
Fraud or Willful Breach
 Loss of trust must be based on willful breach
 Person committing breach must hold a position of
responsibility, trust and confidence.
 Act complained of must be "work-related" such as would
show the employee concerned to be unfit to continue
working for the employer.
Cases

 James Ben L. Jerusalem vs. Keppel Monte Bank, et al, GR

No. 169564, April 6, 2011
Gross Negligence

 Want or absence of or failure to exercise slightest care or

diligence, or entire absence of care;
 An absence of that diligence that an ordinarily prudent man
would use in his own affairs.
Valid Basis for Dismissal,
Gross Negligence
 Abel vs. Philex Mining Corp., GR No. 178976, July 31,
2009
1. Want or absence of or failure to exercise slight care or
diligence;
2. Thoughtless disregard of consequences without exerting
effort to avoid them;
3. Negligence is not only gross but also habitual.
 Habitual neglect implies repeated failure to perform one's
duties for a period of time, depending upon the circumstances.
Gross Negligence vs. Error in
Judgment
 Dr. Danilo T. Ting And Mrs. Elena Ting VS. Court Of
Appeals, G.R. No. 146174, July 12, 2006
 While we are not unmindful that no material injury need be
shown to sustain a finding of gross negligence,
 Employee acted without bad faith
 There was reasonable basis for the act committed
 Employee is burdened by some condition that would excuse
error in judgment
Analogous Causes

 Elements similar to those found in Labor Code

 Abandonment
 Immoral Conduct
 Sleeping on the Job
 Tardiness
 Unexplained Absences
 “Attitude Problem”
 Dishonesty
Cases

 Nissan Motors Phils. vs. Victorino Angelo, G.R.

No. 164181, September 2011
 PGA Employee Labor Union and Sandy T. Vallota vs.
NLRC, PRUDENTIAL GUARANTEE AND
ASSURANCE INC., and/or Jocelyn Retizos, G.R. No.
185335, June 13, 2012
 Roberto Gonzales vs. NLRC & Pepsi Cola Products,
Philippines, Inc., G.R. No. 131653, March 26, 2001
Preventive Suspension

 Employer may place worker concerned under preventive

suspension if continued employment poses serious and
imminent threat to life or property of employer and co-
workers.
 Period must be definite, but not longer than 30 days
 Done during investigation
 Employee not entitled to wages during preventive
suspension, but if period is extended, he is entitled to wages
for the time he is suspended beyond the original 30-day
period
 See discussion on suspension as penalty
Authorized Causes of
Termination of Employment
Authorized Cause: Article 297,
298(283-284)
1. Retrenchment
2. Redundancy
3. Installation of Labor-Saving Devices
4. Closure of Business
5. Disease
Retrenchment

 Reduction of personnel for the purpose of cutting down

operation costs in terms of salaries and wages
 Resorted to because of losses in operation of business
 Lack of work
 Reduction in volume of business
Procedural Requirements for
Retrenchment
1. Necessary to prevent losses, which are established
2. Written notice to DOLE and employee at least one month
prior to termination
 Employer’s lapse of belated furnishing of DOLE with the one-
month notice is only a procedural infirmity and does not render the
retrenchment illegal
 BUT DOLE nonetheless still required to be given notice
3. Payment of separation pay
4. Employer exercises prerogative for advancement of its
interest
5. Use of fair and reasonable criteria in ascertaining who
would be dismissed
Concept of Loss for Valid
Retrenchment
 Losses should be substantial, not merely de minimis;
 Substantial losses sought to be averted must be imminent;
 To effectively prevent substantial losses, retrenchment is
reasonably necessary;
 Alleged losses already suffered and imminent losses sought
to be forestalled must be proved by sufficient and
convincing evidence.
Cases

 Bonifacio Anino vs. NLRC, GR No. 123226, May 21, 1996

 Plastimer Industrial Corporation & Teo Kee Bin vs. Natalia
C. Gopo, GR No. 183390, Feb. 16, 2011
 International Management Services/Marilyn Pascual vs.
Roel P. Logarta, GR No. 163657, Apr. 18, 2012
Redundancy

 Exists where the service capability of the workforce is

greater than what is reasonably required to meet the
demands of the business enterprise;
 Position is redundant when it is rendered superfluous by:
 Overhiring of workers
 Decrease in volume of business
 Dropping of a particular product or service
Requisites of Valid Redundancy

1. Good faith of the employer in abolishing redundant

position
2. Fair and reasonable criteria in ascertaining what positions
are to be declared redundant
 Preferred status
 Efficiency
 Seniority
3. Evidence to substantiate redundancy, e.g.:
 Adoption of new staffing pattern
 Feasibility studies on viability of new positions
 Job description and approval of management of restructuring
Installation of Labor-Saving
Devices
 Related to redundancy
 Installation of machinery to effect economy and efficiency
in its method of production
 Employer not precluded from adopting a new policy
conducive to more economical and effective management
Cases

 DOLE Philippines vs. NLRC, Sep. 13, 2001

 Nelson A. Culili vs. Eastern Telecoms, GR No. 165381,
Feb. 9, 2011
 Edgar Agustilo vs. Court of Appeals, San Miguel
Corporation, Francisco Manzon, Jr., GR No. 142875, Sep.
7, 2001
Business Closure

 Closure of business or undertaking due to business losses

 Relocation of employer’s plant from one location to another
 Take note, however of runaway shops which are considered
as ULP
 Determined by management. No business can be required
to continue operating at a loss simply to maintain the
workers in employment
Cases

 Alabang Country Club, Inc., et al vs. NLRC, GR No.

157611, Aug. 9, 2005
 Cheniver Deco Print Technics Corporation vs. NLRC, et al,
GR No. 122876, Feb. 17, 2000
 Me Shurn Corporation vs. Me-Shurn Workers Union-FSM,
GR No. 156292, Jan. 11, 2005
Disease

 Article 298: Employer shall not terminate the service of

employee suffering from any disease unless there is a
certification by a competent public health authority that the
disease is incurable within a period of six months even with
proper medical treatment
Requisites for Termination,
Disease
 Employee suffering from a disease
 Employee’s continued employment is prohibited by law or
prejudicial to his health or health of co-workers
 Certification by competent public health authority
Distinction of Just and
Authorized Causes of Dismissal
Just Cause Authorized Cause
Implies that employee concerned Does not imply delinquency or
has committed or is guilty of some culpability on the part of the
violation against the employer, as employee;
in serious misconduct, fraud or
neglect of duties;
Dismissal process initiated by Dismissal process initiated by
employee employer
As a rule, separation pay is not Law requires separation pay
required
Nominal damages to be paid if Nominal damages to be paid if
employer overlooks procedural employer overlooks procedural
due process is P30,000.00 due process is P50,000.00
Termination Disputes
Possible Outcomes

 DISMISSAL VALID IF:

 Dismissal is for Just Cause (Art 296) or Authorized Cause (Art
297-298)
 Procedural requirements complied
 Substantial & Procedural Due Process present
Possible Outcomes

 DISMISSAL INVALID IF:

 Dismissal is NOT for Just Cause (Art 296) or Authorized
Cause (Art 297-298)
 Procedural requirements complied
 Substantial Due Process absent
Possible Outcomes

 DISMISSAL INVALID IF:

 Dismissal is NOT for Just Cause (Art 296) or Authorized
Cause (Art 297-298)
 Procedural requirements NOT complied
 Both Substantial & Procedural Due Process absent
Possible Outcomes

 DISMISSAL VALID:
 Dismissal is for Just Cause (Art 296) or Authorized Cause (Art
297-298)
 Procedural requirements not complied
 Substantial Due Process present but Procedural Due Process
is wanting
 Employer liable to pay indemnity
in the form of nominal damages
Related Supreme Court
Decisions
 Pre WENPHIL Case: If just cause existed but procedural
due process not followed, dismissed employee entitled to
reinstatement & backwages
 Wenphil Doctrine: If the dismissal was for a just or
authorized cause but done without due process, termination
is valid but employer sanctioned with payment of indemnity
 However, Serrano vs. NLRC termed the termination
ineffectual, not illegal, and penalty imposed on employer is
full backwages plus nominal and moral damages
Prevailing Rule: Agabon vs.
NLRC
 Abandoned Serrano ruling and reverted to Wenphil
Doctrine. Backwages and moral damages deleted, nominal
damages limited to those in Agabon and Jaka cases
 AGABON RULING: Dismissal will be held valid and legal
but employer should be sanctioned for failure to afford due
process to employee
Nominal Damages

 If dismissal is for Just Cause

 P30,000.00 (Agabon Case)
 If dismissal is for Authorized Cause
 P50,000.00 (Jaka Food Processing Corp. vs.
Pacot)
Possible Outcomes

 DISMISSAL NOT EFFECTIVE:

 If dismissal is for Cause proven to be nonexistent
 Ex. See the following cases:
 Magtoto vs. NLRC, GR No. 6370, Nov. 18, 1985
 Standard Electric Manufacturing Corp. vs. Standard Electric
Employees Union, GR No. 166111, August 25, 2005
 Asian Terminals Inc. vs. NLRC, GR No 158458, Dec. 19,
2007
Suspension as Penalty

 Imposed when dismissal is too harsh a penalty due to

certain mitigating factors such as absence of malice, or
employee is a first offender
Relief for Illegal Dismissal

 Reinstatement without loss of seniority rights and other

privileges
 Full backwages and allowances
 Other benefits or their equivalent in cash
 Damages
 Attorney’s fees
 Legal interest on separation pay