INTEGRATION LECTURE 1 o They can be managerial or non-managerial

employees.
Tues o Standard Charter Bank case: To distinguish
Right to Self-Organization classification of an employee must be
CE proceedings supported by proof. The work description
supersedes than the job title.
Thurs - Employees of Cooperative who are also members
Collective Bargaining o Benguet v. Calleja-Ferrer: They are co-
ULP owners. Only employees who are non-
Concerted Actions members can form and join a union and
bargain collectively.
Next week - Employees of Embassies & International
Tues Organizations with diplomatic immunity
Termination of Employment o ICMC v. Ferrer-Calleja: They cannot join
unions for purposes of collective bargaining
Thurs because it would expose them to legal
Dispute Settlement Mechanisms processes along the way. This holds true
even if it is just at the PCE level, a non-
*Slides will be sent. adversarial proceeding.
*Questions can be entertained throughout. - Government Employees
o They can form labor organizations BUT not
1. RIGHT TO SELF ORGANIZATION labor unions under LC. They are governed by
the Civil Service Law.
Protected by the Art. 13, Sec. 3 of 1987 Constitution and Bill of
Rights on Right to Self-organization. Thus, labor laws should be Union Security Clause (USC)
interpreted liberally. GR: The right to join includes the right not to join.
EX: USC under Art. 259(e) –– nothing in this code or other law
From the exercise of this right, they can collectively bargain or shall stop parties from requiring membership in recognized
conduct peaceful concerted actions. SEBA as a condition for employment.
EXE:
Content and Purpose - Employees already members of another union at the
Form, join, or assist labor organizations. time of the signing of CBA.
- Religious Objectors
Purpose o Victoriano v. Elizalde: If your religion forbids
- Collective bargaining (union – EER required) you to join a labor union, you cannot be
- Mutual aid & protection (workers association – EER not forced.
necessary) o Kapatiran sa Meat and Canning v. Ferrer-
Calleja: Although they can’t be forced to join
Who can join a union, they can form their own.
Union – all employees (note: commingling)
Workers Association – ambulant, intermittent and itinerant You can be dismissed for violation of USC but this cannot be
workers, self-employed, rural workers, those without definite done arbitrarily. The following must be complied:
employers (limited purpose) - There is a valid USC.
- Union requests for the application of USC against an
Samahan ng Manggagawa v. Hanjin: The choice on what type employee.
of labor union they will form depends on the workers, not on the - Employer must conduct its separate investigation. He
employer. cannot merely rely on the union’s request.

Ineligible to Join UNIONS Employer is involved because he is essential in the termination

- Managerial employees (explicit under LC) process of the employee.
o Note difference between Managerial
(decision-making authorities in an enterprise) Picop v. Tañeca: The mere signing of authorization to file PCE
and Supervisory (recommendatory capacity outside of freedom period is not an act of disloyalty. It cannot be
but cannot decide). a ground for termination based on USC.
o Managers are absolutely prohibited to
organize. Union Registration Requirements
o Supervisory has no prohibition to form unions - 50-peso registration fee
subject to the limitation of commingling. - Names of officers, their address, principal address of
o Opinion: They can form and join workers’ union, minutes of the organizational meeting and list of
association because there is no express attendees
prohibition on such. - Names of members comprising 20% of all the
- Confidential employees (implied) employees in the BU
o Refers to confidential employees who, in the - If existing for 1 year or more, copies of AFS
regular course of work, handles information - 4 copies of Constitution and Bylaws, minutes of its
related to labor relations i.e., matters that adoption or ratification, and list of attendees
could give undue advantage on one or other
party during the collective bargaining 20% requirement need only to exist at the point of registration.
negotiations. It is not a continuing requirement.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Independent union: Legal personality exists by the time More…
Certificate of Registration is issued by BLR-DOLE. - No attorney’s fees or negotiations fees may be
Charter local: Legal personality to file PCE exists by the time imposed on individual members (can be charged
Charter Certificate is issued by mother federation. against union funds)
- File complaint with SOLE to inquire into financial
Chartering activities of LLO (need written consent of 20% of
- Issuance of a charter certificate by a duly registered membership) under Art. 289 of LC
mother federation (limited personality: for purposes of - USC
filing PCE only)
- To attain independent personality for the purposes of Grounds for Cancellation of Registration
exercising full legal personality, submit following: - Misrepresentation, false statement, or fraud
o Names and addresses of chapter’s officers o Adoption or ratification of CBL (or
and principal address of chapter amendments), minutes, attendees
o Chapter’s constitution and bylaws. o Election of officers, minutes, and list of voters
▪ Fraud must be grave and compelling
Registration of Mother Unions to vitiate consent of members.
- Requirements for union registration - Voluntary dissolution
- Proof of affiliation of at least 10 chartered locals, each o Need vote of 2/3 members of union to
SEBA dissolve union.
- Names and addresses of companies where the local - Violation of rights and conditions of membership
chapter operates, and list of members in each - Failure to submit periodic financial reports
company o Heritage Hotel v. SOLE: It is not anymore
ground to cancel.
San Miguel Corp v. San Miguel Packaging: TUCs are not o It is not an automatic cancellation because
allowed to issue charter certificates under LC. you have to observe the procedural
requirements under the Rules. You are still
Rights and Conditions of Membership (Art. 250) given a chance to comply under Rule 15 of
- Prohibition against arbitrary or excessive fees or fines Book 5:
- Full and detailed financial reports ▪ Failure to file for 5 consecutive years
- Right to vote by secret ballot (must be in good ▪ 3 notices rule
standing) ▪ Non-responsiveness even after 3
o Probationary employee cannot be excluded notices
from voting.
- Participate in decision or policy-making of union Commingling
- Cannot be engaged in subversive activities Union Level (Art. 256)
- Those convicted of crime involving moral turpitude Inclusion of employees under BU is not ground for cancellation
cannot be union officers but said employees are automatically removed from the list of
membership.
Pertaining to Finances
- Only authorized persons can collect/disburse It became confusing because of this Court’s pronouncement.
- It must be receipted - Holy Child v. HCCS-TELU-PIGLAS: The same union
- Funds only used for purposes in the CBL can represent two bargaining units (covering both
- Income, revenue, expenditure must be recorded and supervisors and rank-and-file) but they bargain
made part of reports separately. They are not removed from the union but
- Officers are not paid compensation except salaries and they cannot be bargaining together. CBA of
expenses under CBL or authorized by majority of supervisory separate from that of rank-and-file and vice
members versa.
o RDQ: 20% membership requirement should
Other Rights and Conditions of Memberships be computed separately for both BU. But
- Render true and correct books of account there is no rule or jurisprudence on this issue
- Books of account are open to inspection yet.
- Special assessments must be authorized by majority of
members (written resolution) Federation Level (Art. 255)
- Check-off must have individual written authorization of Coastal v. SOLE, DLSU, Atlas Lithographic presents
the employees (this requirement only pertains to union complicated rules on when supervisory and rank-and-file can or
due and does not apply to agency fees) cannot be in the same union. Jurisprudences are repealed.
o Under LC, agency fees can be automatically - Under Art. 255, they can already commingle in the
deducted for employees who are non-union same federation without qualification.
members but benefits from the CBA. Written
authorization is not necessary. Petition to Cancel Registration
- Inform members of CBL, CBA, prevailing labor - Not a bar to the filing of PCE
relations system, and all their rights and obligation - Does not suspend CE proceedings
under existing laws - No collateral attacks against legal personality of union.
One must institute a separate action.
Consent of 30% requirement is required for complaint for
violation of rights and conditions of membership. Bargaining Unit
A group of employees sharing mutual interest within a given
employer unit comprising of all or less than all of the entire body
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
of employees in the employer unit or any specific occupational a probationary employee, it does not mean
or geographical grouping within such employer. that you cannot vote as long as you are a
member of the BU 3 months prior within your
Factors to determine Appropriate BU: 6-months probationary period.
- Will of Employees (Globe Doctrine)
- Substantial Mutual Interests Rule – most important) Process for CE
- Prior Collective bargaining history Overview
- Similarity of employment status - Filing of PCE
- Raffle
See cases: SMC v. Laguesma, UP v. Ferrer-Calleja (difference - Notice of Preliminary Conference
of interests between teaching and non-teaching staff), - Consent election? → skip to Pre-Election Conference
Mechanical Department, international School v. Quisumbing - Decision on PCE
(considered collective bargaining history), DLSU v. DLSUEA - RD: Raffle to an EO
(collective bargaining history is not controlling but may be - CE
considered) - Canvass of Votes
- Transmit records to Med-Arbiter
Union and EBR
Union Who can file: LLO
Any labor organization in the private sector organized for Where to file: Med-Arbiter in the RO where establishment is
collective bargaining and for other legitimate purposes. There When to file: Anytime except when there are bar rules:
may be several unions in a BU. - Certification Year Bar (1-Year Bar rule)
o Applies even if “no union” wins.
Exclusive Bargaining Representative (EBR) o If there is a union that won, it must initiate
Legitimate labor union duly recognized or certified as SEBA of collective bargaining within 1 year. Otherwise,
all employees in the BU. Only one EBR in a BU. others can file PCE after unless there is a
Deadlock/Negotiation bars.
2. CERTIFICATION ELECTIONS - Deadlock Bar
- Negotiation Bar
Determination of EBR - Contract Bar
- SEBA certification o Only within last 60-days of the 5-year period
- Consent election of CBA that a union can file PCE.
- Certification election
o Run-off election Notice of Preliminary Conference
o Re-run elections No set number of hearing but should not exceed 15 days from
the preliminary conference.
SEBA Certification (DO 40-1-15)
- SEBA Certification by RD. Only for unorganized Consent Elections
establishment with only one LLO If you do consent elections, you immediately go to pre-election
- If unorganized but more than 1 LLO – RD will refer to conference. No need to undergo (a) decision of PCE and (b)
an election officer for the conduct of a CE. Raffle to an EO.

Voluntary Recognition repealed by DO. Decision of PCE

Must be within 10 days from last hearing
Consent Elections Grounds for denying PCE
- Voluntary agreement to hold elections - Not a LLO
- It may be done with or without DOLE intervention - Not in the roster of LLO in DOLE
- There is a bar.
Certification election
- Unorganized v. organized Appeal on Decision of PCE
o Unorganized – no SEBA yet. Once granted Unorganized and appeal is granted: unappealable
the PCE, it is unappealable. Process: File MoAppeal to RD → Transmit records to Osec →
o Organized – with SEBA. PCE valid only within Reply → SOLE Decision → If denied, file R. 65 with CA
freedom period if with CBA. If none, check bar
rules. Raffle
- Employer as a mere bystander rule RD raffles case to an EO
o EX: When requested to bargain collectively
- Freedom period (for organized establishments with Pre-Election Conference
CBA) - Determine list of voters and ground rules
o 5 years from the registration of the CBA. - Within 10 days from receipt of assignment and
o You can file PCE within 60-day before completed within 3 days of first hearing
expiration of the 5-year CBA. - Post notices 10 days before election in 2 conspicuous
- For organized establishments, need 25% support of places in the company premises
the BU for the filing of the PCE.
- Qualified voters: Member of the BU 3 months prior to Certification Election
filing of the PCE. Not later than 45 days from first pre-election conference
o NUHWRAIN v. SOLE: Ruling is already
ineffective because of the express
qualification of a voter. Nonetheless, if you are
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Double Majority Rule
- Majority casts vote
- Majority of those who casted votes voted for the
winning union

Canvass: By EO

Transmittal: Records transmitted to MA and proclaim results

Run-off Elections
- Valid elections (majority casted votes)
- 3 or more choices including no union choice
- Not one of the choices obtained majority of valid votes
cast
- Contending unions received 50% of votes cast
(excluding the “no union” choice)
- No unresolved challenges on votes that will materially
affect the results of the elections

“No union” choice is not an option in a run-off election.

Only top 2 choices can participate in the run-off elections.

Re-run elections (DO 40-I-15)

It can be resorted to when:
- There is a tie
o There are instances when it is possible to
apply either a re-run or run-off.
o Very Personal Opinion by RDQ: Use run-off
elections because it is contained in the Labor
Code. Re-run is not. Plus, in run-off, you
remove “no union” choice so it is more
expedient.
- There is a failure of elections
o This happens when the first majority is not
met.
o Re-run should be conducted within 10 days
from failure of elections.

“No union” can be a choice.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 2 occurrence of a deadlock which can result to
a strike or lockout.
Today
Collective Bargaining Agreement No CBA yet v. there is existing CBA
ULPs and Strikes The freedom period attaches to the CBA. If no CBA, contract-
bar rule does not exist. If there is a CBA, you wait for last 60
3. COLLECTIVE BARGAINING days for expiration of CBA before filing PCE.

Recap Trajano: In the process of collective bargaining, the PCE does

Labor organization → LLO → EBR not stall collective bargaining process.

Right to form labor organization is a constitutionally protected Ratification and Registration of CBA
right so cancellation of registration is strictly construed. You need CBA to be ratified by the members of majority of the
union. Only representatives of the union sit in the negotiating
Who can join labor organization and what are the exceptions? panel so need to be ratified.

Union v. BU v. EBR The effect of CBA registration gives rise to the contract-bar rule.
Otherwise, the rule will not be applicable. See Rule 17 of Book
From here, we presume that there is an ERB already. The duty 5 of DO-17-03.
to collectively bargain only arise when there is a EBR
Requirements for registration: Posted, Ratified, and submit with
Duty to Bargain Collectively DOLE/BLR.
Mutual obligation to meet and convene promptly in good faith for - Within 24 hours, DOLE/BLR should already act on the
purposes of negotiating… it does not compel any party to agree application for registration. If there are missing
to a proposal or to make concession. (Codal) requirements, the DOLE will give union extra time to
comply.
Jurisdictional Requirements
Kiok Loy v. NLRC: There are 3 jurisdictional requirements before 5 years v. 3 years
this duty arises: 5 years – pertains to the representation aspect and this is the
- Majority status anchor for the contract-bar rule.
- Proof of majority status 3 years – pertains to all other aspects of CBA except
- Demand to bargain representation aspect. These provisions are renegotiated every
3 years, absent any express stipulation.
Absent one, there is no duty to bargain collectively yet. This is - GR: 3 years, default
important because if there is a duty to bargain and the employer - EX: Stipulated otherwise.
refuses to bargain but one of the jurisdictional requirement is
absent, union cannot file ULP against employer. When to reckon the 5-year period for representation aspect
If there is an existing CBA then another union wins EBR during
Note: Charter Local has limited legal personality if it did not the freedom period, the 5-year representation will begin from its
submit additional requirements. It can only file PCE; it cannot election.
collectively bargain.
If there is no CBA yet, then the 5-year representation period will
Collective Bargaining Process begin from the registration of the CBA.
Under Art. 261 of LC:
- Written Notice and proposed CBA For other terms
o Typically initiated by the union. If you start with a 2-year CBA then it does not state an express
- Within 10 days, submit counterproposal by employer provision for the duration of the new CBA, the presumption is
- Conference that you will not change the duration of CBA in case you
o Where the parties sit down to discuss the renegotiate. The prior 2-year period will still be applicable for the
terms and conditions of employment and new CBA.
grievance procedure as well as all other
matters desired to be included in the CBA. In essence, the periods can overlap.
o Because the CBA is a contract between the 2
parties, this is one of the limits of The 60-day freedom period is absolute for representation terms.
management prerogatives.
▪ The employer can validly contract Under Art. 264 of LC, if you want to renegotiate earlier then that
out parts of management is okay because 60-day is not absolute in renegotiating for the
prerogatives as long as it agrees to other provisions.
such terms. - Hold-over principle (Art. 264 LC): It shall be the duty
▪ Similarly, since it is a contract, it can of the parties to keep the status quo and/or a new
be validly suspended (Rivera v. agreement is reached by the parties.
Espiritu) o This is the basis for holding over of economic
- NCMB intervention, if necessary provisions and not the basis for extending the
o It can be by request of one or both parties. representative status.
o If it intervenes, it has the power to issue o For representative status, there is no express
subpoena to require attendance in the provision of holding over the EBR status but
meetings. It is included so as to avoid the there is no other period that the law allows for
the filing of the PCE except during the
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
 freedom period. This is also in line with the 4. ULP and Strikes & Lockouts
principle of presumption of majority status.
Thus, presumption is in favor of retaining the Right to Self-Organization
EBR status. Formation of LO → LLO → EBR → CBA
- If freedom period lapse, contending union will wait for
another 5 years before filing another PCE. Typically, ULP and Concerted Activities cases happen when
there is an EBR but it can also happen there because union-
Retroactivity Rules busting can happen during formation of LO. In that case, you
See Art. 265 of LC. can file ULP but cannot strike because you are not yet an EBR.
With voluntary Effectivity
agreement ULP
Within 6 mos. Retroacts to first day after expiration of Go through the codal provisions.
CBA - Affects right to self-organization
After 6 mos. Depends on parties’ agreement o Sepalco: The LOC-contracting itself is a
prohibited activity but it does not automatically
If they don’t agree with the result to ULP. You have to prove that
retroactivity, then the parties can employer engaged LOC with the intent to
exercise their rights under this Code circumvent or undermine the right to self-
i.e., strike or lockout organization. But LOC per se is not
tantamount to ULP.
Buclot: As long as provision is not less than the minimum - Committed by either:
required by law, it is valid. o Employer; or
o Labor organization
SONEDCO: This is, in essence, a stray case. If, as a result of ▪ Medoza v. Officers of Manila Union:
the certification election, a union other than the union which To make a case of ULP against LO,
executed the interim agreement is certified as the exclusive usually, there is a violation of the
bargaining representative, then such union-EBR may adopt the rights and conditions of
interim CBA or negotiate with management for a new CBA. membership. Here, because of acts
of union officers, an employer-union
After 3 years, you renegotiated so you have new CBA valid for member was deprived of the right to
another 3 years. But during the last year of the 2nd period, there run for office in the union.
is a new EBR. During that, you cannot compel the employer to - Elements:
change the CBA. It is still binding even if it is a new union o EER; and
administering it. ▪ Dismissed employees contesting
dismissal cannot be deprived to file
Retroactivity Rules for Arbitral Awards: ULP case against employer just on
Arbitral Award Effectivity the basis that they are already
[a] Award granted after Depends on parties’ agreement dismissed. In the words of RDQ,
6 mos. EER, for purposes of filing ULP
[b] If parties do not Retroacts to the first day after 6 cases, can be extended.
agree in [a] mos. Following the expiration of o Characterization of ULP in LC. It has to fall
CBA within the circumstances of ULP as provided
[c] No CBA (in cases Discretion of SOLE by law under Art. 259 of LC.
where negotiations (because there is no reckoning ▪ HSBC v. NLRC: It is still good law.
are for the first date for the 6-month period after The list of ULP in LC is not
CBA] the expiry of a non-existent CBA) exhaustive or exclusive. It is
impossible to conceive of all
(MERALCO v. Quisumbing)
scenarios that can amount to ULP so
long as an act done can fall under
RDQ Opinion: in reality, arbitral awards do not happen within 6
the characterization that it affects the
months from expiry of CBA. But, if ever, safest rule to apply is to
right to self-organization. It can be
ask the parties to agree when it shall retroact.
proven as ULP.
- Aspects of ULP
Grievance Machinery
o Criminal aspect
- Interpretation and implementation of the CBA
▪ This can only be initiated after finality
- Interpretation and enforcement of company personnel
of labor case.
policies
▪ RDQ: If criminal case is filed first, he
thinks it will not be dismissed
Unsettled grievances within 7 calendar days shall be referred to
automatically but it will just be held in
voluntary arbitration.
abeyance pending determination of
- Decision of the VA/PVA may be elevated to the CA
labor case. If ever it is dismissed, it
under Rule 43 but only after you file MR within 10 days
will be without prejudice to refiling
from decision of VA/VPA. In case of denial of MR, apply
after determination of labor case. If
fresh period rule ––new 15 days to file R. 43.
there is no ULP then you can seek
for the dismissal.
It is a mandatory provision of the CBA because of it is specified
o Labor aspect
under the definition of “duty to bargain collectively.”
- Prescriptive period: 1 year

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

ULP: Employers Procedural Requirements
- Interference to the right to self-organization All of these are mandatory. Absent one, strike or lockout is
- Yellow-dog contract illegal.
- Contracting-out (interfering with right to self- - Notice of strike or lockout
organization) - Cooling-off period
- Company domination of union o 30 days – CBD
- Discrimination o 15 days – ULP
- Violation of duty to bargain collectively o None – Union-busting (this is the only
- Paid negotiation requirement dispensed in the case of union-
- Violation of CBA busting. Others still need to be complied with.)
o Gross violation; and - 24-hour notice to NCMB prior to strike/lockout
o Involves an economic provision - Strike or Lockout Vote
o Majority of union membership or majority of
For violations of CBA that are not gross or does not involve partners/BOD
economic provision, settle the matter with the grievance - 7-day strike or lockout ban
machinery of the CBA. o Reckoned from the submission of strike or
lockout vote.
ULP: Labor Organization o For the purpose of determining the validity of
- Restraint or coercion by labor organization strike or lockout vote by DOLE.
- Union-induced discrimination
o Typically, this happens in USC enforcements. Cooling-off period – period when parties should not do
- Refusal to bargain collectively anything to aggravate situation and possibly settle issues
o This happens when the employer wants to amicably.
continue bargaining but union refuses.
- Featherbedding and make-work arrangements Strike ban – this is for DOLE to verify validity of strike or lockout
vote.
Strikes and Lockouts
It is the right to engage in concerted activities for CB and mutual RDQ: Cooling-off period and strike ban can be counted together.
aid and protection. Under the Constitution, the freedom of
association includes the right to strike but must be in accordance It is not a 15+7 computation.
with law. - This was cited by Azucena from NCMB Manual citing
a case which does not necessarily say it; in any case,
Strike NCMB has no quasi-legislative power to make this
Temporary stoppage of work by the concerted action of pronouncement and there is none in the DO.
employees as a result of an industrial or labor dispute. - There is also a case making this pronouncement but
this is not the main issue in the case. In a sense, it is
Note: Based on jurisprudence, slowdowns, mass leaves, sit just an obiter.
downs, attempt to destroy equipment, shaving heads, etc. are - RDQ: Following a liberal interpretation, it can be
also consider strikes but it must fit into the definition of a strike counted together. Further, since they have different
i.e., due to an industrial or labor dispute. purposes, they can overlap essentially.
- NUHWARAIN v. CA: Shaving heads was considered
strike because they cannot go to work. It is work
stoppage and there was an existing deadlock. Illegal Strikes or Lockouts
- No grounds (no CBD/ULP)
Picket – this is when employees display placards etc. It is - Non-compliance with procedural requirements
included in free speech guarantee. As long as it is done without - Commission of prohibited activities in Art. 279 of LC:
committing prohibited acts, then it is valid. It does not o No collective bargaining yet
necessarily result to strike i.e., done outside work hours. o Violation of an assumption/certification order
o Obstruction of a peaceful picket
Lockout o Strikebreaker
Temporary refusal of an employer to furnish work as a result of o Use of public officer/employee to escort
an industrial or labor dispute. persons seeking to replace striking works
o Acts of violence, obstruction of ingress/egress
Grounds for Strikes and Lockouts
- Collective Bargaining Deadlock (CBD) Consequences
- ULP - Termination of Employment
o Union officer – mere participation of illegal
Note: Violations of CBA that are not considered as ULP: not strike will be a ground for termination
gross and not economic provisions) o Union officer or member – commission of
prohibited acts will be a ground for termination
Note further: Union recognition strikes are not allowed. o Defiance of assumption/certification order is a
ground for termination for both union officer or
Absent a ground for a strike or lockout, it will be ILLEGAL. member because it is considered a prohibited
activity or an illegal activity per se.
- Penal provision for commission of prohibited activity
under Art. 287: Fine and/or Imprisonment
- Backwages

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

Improved Offer Balloting
DOLE Effort to settle a strike or lockout usually based on CBD.

NCMB Conducts referendum by secret ballot on improved offer

of employer or reduced offer of union done on or before the 30th
day of the strike/lockout

Needed: Majority vote of union/members or the majority vote

partners/BOD

Upon signing of agreement, employees must return to work and

employer must readmit employees.

Assumption or Certification Orders

To address a strike/lockout (including impending ones) in an
industry indispensable to the national interest, pursuant to the
police power of the State.
- National interest – determined by SOLE
- SOLE has full authority to resolve all matters related to
the labor dispute.
Issuance of prior notice is not necessary.

Effects of Assumption or Certification Orders

Automatic Injunction: It automatically enjoins an impending
strike/lockout

Employees must return to work and employers must readmit

them under same terms. This must be actual reinstatement.

Parties may submit to voluntary arbitration by mutual consent

Limitation to management prerogative

Defiance is an illegal act during the strike or lockout. It can be

construed as abandonment where reinstatement or backwages
cannot be granted.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 3 Note: Management prerogative to transfer employees. It must
be done in good faith and does not defeat security of tenure.
Today This is appreciated based on totality of circumstances.
Termination of Employment
Art. 294: Security of Tenure
Addressing of Questions In regular employment, employer can only be terminated for
Conversion doctrine – from an economic strike (CBD), you just or authorized causes. Otherwise, worker is entitled to
convert it to a ULP Strike. In this case, you still need to file a new reinstatement and full backwages computed from the time
notice of strike on the ground of ULP. Cooling-off period will be compensation is withheld until the time of actual reinstatement.
15 days.
For some non-regular employee, they can enjoy security of
But this cannot go around the other way i.e., ULP-CBD since it tenure but only for a limited period of time.
is impractical to file a notice of strike based on a longer cooling-
off period. Valid Termination BY EMPLOYER
Aspects:
DO 147-15 provides the complete set of elements for just and - Substantive due process (for cause)
authorized causes. - Procedural due process

If new EBR is elected but there is a registered CBA, no PCE can SUBSTANTIVE DUE PROCESS
be filed even after lapse of 1-year bar rule because there is still Just Causes
a contract bar rule. Thus, certification year bar rule applies only 1. Serious Misconduct
when there is no CBA yet. - Misconduct
- Grave and aggravated character
Grounds for cancellation is already amended. - Related to performance of duties
- Employee becomes unfit to work
4. TERMINATION OF EMPLOYMENT
There are cases when, although they are not related to the
Resignation performance of duties, if the acts affect the work of the
Termination at the instance by employee employee, it can still be serious misconduct i.e., use of drugs
- Voluntary severance of EER by employee affects the brain which affects the work.
- Unconditional
- Clear intent to sever EER or relinquish position 2. Willful disobedience of insubordination
- Disobedience or insubordination
Typically, it is held as inconsistent with the filing of an illegal - Willful or intentional, characterized by a wrongful or
dismissal complaint. perverse attitude
- Order was reasonable, lawful, and made known to
GR: No separation pay employee
EX: Employment contract, company policy, or CBA provides - Order relates to employee’s duties
otherwise
San Sebastian case: Teacher holding 2 teaching positions in
Termination BY EMPLOYEE different school. Court says dismissal is not warranted since
Just Cause there is no showing of a willful or intentional disobedience
- Serious insult characterized by a wrongful or perverse attitude. She did not
- Inhumane and unbearable treatment neglect performing work in her main employer. She was facing
- Commission of crime or offense financial difficulties. Nonetheless, she was suspended for 1
- Other analogous cause year.

Effect is not necessarily constructive dismissal but they are Even though not all elements are met, employee can still be
related. They are not entitled to separation pay. imposed disciplinary sanction ––just not dismissal

No Just Cause 3. Gross and Habitual Neglect of Duties

Serve written notice 1 month in advance - Gross and/or Habitual
Without notice, employee can be liable for damages o Gross – absence of diligence or prudence of
ordinary person
However, as part of management prerogative, employer can o Habitual – repeated failure to discharge
waive the 1-month notice and make it a resignation effective duties
immediately.
There is thoughtless disregard of consequences without effort to
Employer cannot refuse resignation because it is involuntary avoid the same.
servitude.
LBC express v. Mateo: Although loss of company property is not
Constructive Dismissal habitual, it was held as gross neglect of duty because of the
No formal dismissal but the employee is placed in a situation substantial loss of money prejudicial to the employer’s interests.
where continued employment becomes unbearable so he has Employee can be validly terminated.
no choice but to resign. Possibly, because of clear
discrimination, demotion, or etc. Note: Past infractions

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

A related past infraction that has been punished cannot be - Positions or services in excess of what is reasonably
punished twice because of double jeopardy. Similarly, unrelated demanded by the actual requirements of an enterprise
past infraction should not be used to determine the penalty. - Good faith
- Fair and reasonable criteria
Santos: But a related past infraction can be used to determine - Adequate proof of redundancy i.e., staffing patterns,
appropriate penalty. organizational charts, job description, etc.

4. Fraud or Willful Breach of Trust In proving redundancy, you have to have studies showing the
- Act, omission, concealment workforce needed given the output required.
- Involves a breach of trust, legal duty, or confidence
justly reposed It is done as a last resort.
- Committed against the employer (or representative)
- Connected with employee’s work 3. Retrenchment
- Reasonably necessary and likely to prevent losses
5. Loss of Confidence - Substantial or reasonably imminent losses proven by
- Act, omission, or concealment sufficient and convincing evidence i.e., AFS for a span
- Loss of Trust and confidence is not simulated of couple of years
- Justifies loss of trust and confidence of the employer to - Good faith
the employee - Fair and reasonable criteria
- Not used as a subterfuge for causes for improper,
illegal, or unjustified causes It is done as a last resort.
- Employee holds a position of trust and confidence or
managerial position Fair and reasonable criteria i.e., seniority, age, fitness, years of
- Genuine and not a mere afterthought service etc.
- Cases seem to imply that seniority is an important
Employees covered: factor in determining fair and reasonable criteria but
- Managerial employee this is not an absolute rule. Other factors should also
- Confidential employee – those holding delicate matters be considered. However, if all things are held equal, put
i.e., property, assets, or money of employer e.g., driver primacy on the seniority.
or helper
If employer contracts-out services that is not a core business of
6. Commission of crime or offense the employee, that is legal and it can be determined pursuant to
- Act or omission punishable by law management prerogative. However, if it involves services that
- Committed against employer (family/representative) are part of principal business of employee, it is invalid for being
LOC.
Filing of criminal case and/or conviction are not necessary to
terminate employee. Similarly, termination have no bearing on 4. Closure or cessation of operations
the status of criminal case. - Decision to cease operations
- Done in good faith
Employer must conduct a separate investigation and cannot rely - No other option except to close or cease operations
on the findings of the police, prosecutor, or judge. They
determine probable cause, employee does not. It may or may not be due to substantial business losses.

7. Analogous If due to business losses, you can prove this through the
- Act or omission similar to just cases elements of retrenchment on business losses.
- It must be willful/voluntary on the part of employee
5. Disease
This does not necessarily have to be stipulated in the company - Employee suffering from disease
policy or manual because it is impossible to conceive all - Continued employment is prohibited by law or
circumstances that can happen. prejudicial to the employee as well as health of co-
employees
You can determine the scenario vis-à-vis the just causes - Certification by a competent public health authority
provided by LC.
Separation pay
Authorized Causes Installation of labor-saving devices and redundancy: 1 month or
1. Installation of Labor-Saving Devices 1 month for every year of service
- Introduction of machinery, equipment, or devices
- Donee in good faith Retrenchment, disease, closure (not due to business losses): 1
- Purpose: to save cost, enhance efficiency, other month or ½ month for every year of service
justifiable
- No other option Closure due to business losses: no separation pay
- Fair and reasonable criteria
Other causes of termination
Example: Automation - Illegal strikes
- Violation of assumption/certification orders
2. Redundancy - Violation of USC
- Superfluous positions or services

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 PROCEDURAL DUE PROCESS Reinstatement pending appeal
Just Causes If order by LA – self-executory
Twin-Notice Rule: Backwages
- Notice to show cause; and It includes wages, allowances, and other benefits
- termination notice
Note: Statutory benefits and CBA benefits.
Ample opportunity to be heard - These are included as well as wage increases by virtue
- GR: Formal hearing is not required. of wage orders. It presupposes that the position of
- EX: Company practice/rule OR upon request of employee is covered by the wage order.
employee - For CBA benefits, they have to have accrued already
at the time of illegal dismissal.
Deoferio v. Intel: The twin-notice rule is also applicable to
disease as a ground for termination. When the employee is dismissed, employer cannot deduct
earning from other sources.
Authorized Causes
- 1-month notice to employee Computation: From time of illegal dismissal or withholding of
- 1-month notice to DOLE wages up to reinstatement or finality of decision or reversal of
decision by a higher tribunal.
It is up to the employer to prove the validity of such authorized - General wages not included
cause. - Allowances and benefits, to be included, must have
accrued prior to dismissal
Employee can file dismissal case and ask for reinstatement if it
feels there is unfair criteria in determining who are the You exclude the period when there was compensation given i.e.,
employees to be terminated. But employee is not entitled to be actual/payroll reinstatement during LA-NLRC and there was
heard. wages given.

1-month notice to employer is for the chance to look for other Nature of backwages
employment Tomas Claudio: Backwages are a restoration of income lost at
the time of illegal dismissal. It is not a private compensation or
GR: During that 1 month, employee should report to work damages.
EX: PNCC Skyway –––You do not have to require employee to
go to work but you must pay them salaries for that time. Note: Backwages are different from separation pay (distinct
reliefs)
Validity of Dismissal
SDP PDP If dismissal is valid, generally, no backwages unless for financial
Yes Yes Valid dismissal assistance or social justice measures.
No No Illegal dismissal
No Yes Illegal dismissal For probationary employees
Yes No Valid dismissal, but employer must It will only be awarded until 6 months, during period of
pay nominal damages probationary employment.
(Agabon, Jaka cases)
Related matters
50k – authorized
30k – just Temporary Suspension of Operations or Floating Status
But these figures are not absolute. - It cannot exceed 6 months
- Within 6 months, employer must give a new
Reliefs for Illegal Dismissal assignment, which must be particular or specific
Under Art. 279: Remedies for illegally terminated employee is
reinstatement and full backwages. Ibon v. Genghis Khan: If 6-months lapse, you can be sued for
constructive dismissal. Thus, within such period, you must
Reinstatement assign employee to a new assignment to a particular client. It
- same position prior dismissal or at least an equivalent cannot be a general report to work order.
position if the prior positon is filled or remove
Note: 3 months in D.O. 174-17 (Sec. 13) – those covered under
Type of reinstatement, at the option of the employer: this rule is seen in (Department Circular…)
- Actual
- Payroll Preventive Suspension
When employee is under investigation for a serious offense and
Typically, payroll reinstatement happens during the pendency of his presence poses a serious or imminent threat to the life or
case. Once reinstatement is final, employee must be actually property of the employer or his co-workers
reinstated.
Purpose: To prevent harm to the business or other employees
Separation pay in lieu of reinstatement
This presupposes the application of doctrine of strained GR: It cannot exceed 30 days
relations. Mere filing of cases does not mean there is strained EX: It may be extended in good faith but must be with pay.
relations. It must be duly invoked and proven in court.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

Suspension
Form of penalty. This is part of management prerogative to
discipline employees. Usually, this is applied when not all
elements for just causes are present.

Must observe due process: (a) notice of show cause, (b)

opportunity to be heard, and (c) notice of termination

It can exceed 30 days depending on the gravity of offense.

Retirement
Voluntary agreement between employer and employee about
the severance of EE upon reaching a certain age.

GR: As expressly agreed by parties

EX: Absence of agreement
- Optional retirement age – 60 years old
- Compulsory retirement age – 65 years old

Retirement pay
GR: CBA or other argument
EX: If no CBA or it provides for lower benefits, follow RA 7641
i.e., 1/2 month (22.5 days) for every year of service, provided
employee meets the 5-year service requirement

It is on top of other benefits i.e., SSS or PAGIBIG

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 4 You go to Single-Entry Assistance Desk Officer (SEADO). You
can seek for full or partial settlement. If you are able to fully settle
Questions an agreement, then it can no longer prosper as a case. If there
If illegally dismissed employee is ordered reinstatement, the is a partial settlement, SEADO will make a report. It can only be
newly-hired employee can keep his position. Notwithstanding, settled when the full claim is settled.
illegally dismissed employee can be reinstated to another
position as long as it is an equal position. Redundancy can also The decision reached by SEnA is binding to all parties, DOLE
be proven but comply with requisites. offices, and attached agencies unless contrary to law, morals,
public policy, etc.
LA – ID
NLRC – ID Under Sec. 3 of DO 151-16
CA – ID GR: Applies to all labor and employment issues.
SC – LD EX: Issues not covered by SEnA ––
- Notices of strike/lockout or preventive mediation cases
From LA-NLRC, reinstatement is self-executory. For backwages under NCMB
aspect, you can seek for execution on the backwages. It is from - Matters under the grievance machinery
the time compensation is illegally withheld until decision is finally - Applications for exemption from Wage Orders (it is
reversed with SC. But the difference lies in the interest. under the NWPC)
- Violations involving AEP, PEA license, WCP,
LA – illegal contracting arrangements, PRC licenses, TESDA
NLRC – legal accreditation, other licenses issued by DOLE or its
CA – legal attached agencies
SC – legal - Occupation Safety and Health Standards (OSH
Backwages from beginning until SC decision. Standards) involving imminent danger situation,
dangerous occurrences, and absence of PPE
LA – illegal
NLRC – legal POEA issues not covered under SEnA
CA – illegal (final) - Violations of POEA Rules and Regulations
Backwages from beginning until SC decision. - Serious offenses and those penalized by license
cancellation
LA – illegal - Disciplinary actions against migrant workers (penalty:
NLRC – legal delisting from POEA registry at first offense)
CA – illegal - Complaints initiated by POEA
SC – legal - Complaints against an agency whose license is
Backwages is deleted. revoked, cancelled, expired, or otherwise delisted
- Complaints categorized by POEA as not subject to
LA – illegal SEnA
NLRC – illegal
CA – illegal Jurisdiction
SC – legal
You are reinstated in LA so you keep getting wages until CA but SOLE/RD
employer cannot ask for refund even if the ultimate decision of Original Jurisdiction
SC was a legal dismissal. - Visitorial and enforcement powers (labor standards
provisions)
On the part of employee: If from lower tribunal until SC, it was - Visitorial power (examination of account of unions)
decided that there was illegal dismissal but no reinstatement - Money claims arising out of EER (no claim for
made, backwages is given in full including interest. reinstatement, not exceeding 5k)
- Union registration
On the part of employer: LA-NLRC reinstatement must be - OSH violations
complied. All else, if it was ultimately decided that the decision - Matters pertaining to recruitment and placement for
was legal, then no backwages should be granted to the local employment
employee.
Money Claims
The computation of backwages continues. The nature of the Under Art. 129, if there is no claim for reinstatement,
monetary consequences of an illegal dismissal case, such - money claim does not exceed 5k = RD
consequences adding up. If you continue to appeal it, - money claim exceeds 5k – LA
backwages still accumulate notwithstanding the non-finality of
the decision. If there is reinstatement, regardless of amount = LA

5. DISPUTE SETTLEMENT Visitorial and Enforcement Powers v-v Money Claims

People’s Broadcasting: SOLE can use visitorial and
Single-Entry Approach (RA 10396 – 1-paged law) enforcement power to determine if there is EER, regardless of
Preferential use of voluntary mode of settling disputes including amount pursuant to Art. 128 and not Art. 129.
conciliation-mediation.
There is yet a determination for any labor violations, if the DOLE
30 days of mandatory conciliation-mediation under SEnA. exercises this power. Thus, you are not yet sure if there is a
money claim. There only comes a controversy when after the
exercise of such power, SOLE orders more than 5k money
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
claim. However, under Art. 128, regardless of the amount - Injunction
involved, jurisdiction is still lodged with SOLE. According to - Contempt
Bombo Radyo case, it still holds true when it is initiated by a - Cases certified by SOLE for compulsory arbitration
complaint or motu propio. (national interest cases)

Determination of EER Voluntary Arbitration

GR: It is by LA/NLRC - Wage distortion in organized establishment
EX: SOLE – exercise of visitorial and enforcement powers under - Unresolved grievances (after 7 days)
Art. 128 to the exclusion of the courts. It is reviewable by the CA - Other disputes agreed upon by the parties (even after
via Rule 65. SOLE assumption)

The determination of EER under Art. 128 is to be exercised Manila Pavilion v. Delada: VA can rule on all related issues
independently from the determination conducted by LA/NLRC. which are labor-related. For example, case is for illegal
Primarily, it is a function of LA/NLRC. But under Bombo Radyo, dismissal. Normally, it is under LA. But if parties agree to submit
SOLE can determine EER to give effect to its visitorial and it to VA, then it shall be so. Thus, VA can also rule on the
enforcement power under Art. 128. The standard to be used is entitlement of wages related to the illegal dismissal complaint.
the 4-fold test.
-----Most importantly, look at Cause of Action-----
BLR Diokno: Violation pertains to the interpretation of constitution
Original Jurisdiction and bylaws so it’s not a matter under SOLE or LA but under BLR.
- Inter and intra union disputes
- Registration of federations and their chartered locals Endophil v. Adviento: It filed case for damages for the
which includes merger, consolidation, change of name, negligence of the employer in not providing a healthy and
affiliation, etc. conducive working environment. It seems, at first glance, it is
- Examination of accounts of federations concerning OSH standards which normally falls under SOLE (if
- Registration and de-registration of multi-employer you are talking about compliance of such standards). Similarly,
CBAs if because of non-compliance, worker got sick, then it can be
filed with LA for damages arising out of EER due to non-
Appellate Jurisdiction compliance. However, in this case, employee got sick because
- Decision of RD on union-related matters (registration of employer’s negligence. It takes it out of the jurisdiction of LA
examination of books) because it now becomes a torts claim. It has become a civil case
- Decision of MA in intra-union disputes to be filed with RTC.

Med-Arbiter Malayan v. Alibudbud: Employee refused to return Company-

- PCE i.e., consent, run-off, or re-run issued car so employer filed a replevin case. Court said that
- Request for SEBA Certification (also by RD) while it is related to EER because the car’s issuance is by virtue
o If there are other LLOs in the employer unit, it of employment, asking for replevin has become a civil case. It is
shall be directed to the Med-Arbiter for CE. grounded on a debtor-creditor relationship and not EER. This
falls with trial courts.
SOLE
- Appellate jurisdiction PAL v. PALEA: [Claim for damages that arose from an illegal
o Visitorial and enforcement powers exercised strike which normally falls under LA] Here, even if it arose under
by RD an illegal strike, it is under the SOLE because there was already
o BLR decisions (in the exercise of original an assumption order issued. Thus, all matters related to the
jurisdiction) labor dispute can be decided by SOLE.
o Med-Arbiter’s decisions in CE cases
- Work stoppage orders for non-compliance with OSH Remedies
standards
- Issuance of assumption orders (national interest Appeal Bond
cases) Necessary to perfect an appeal.
It is equal to the amount of monetary award.
Labor Arbiter
- ULP Art. 224 requires that when you appeal from LA-NLRC, the
- Termination disputes mode of perfecting such is by filing an (a) appeal fee, (b) appeal
- Money claims arising out of EER with claim for bond, and (c) memorandum of appeal.
reinstatement
- Damages arising out of EER Motion to Reduce Bond
- Cases arising out of prohibited activities during strikes Motion to Reduce Bond will toll the appeal period if a
- Other money claims arising from EER exceeding 5k reasonable amount (10%) of the bond is posted. The Rules did
- Cases arising out of non-compliance with compromise not provide for what is “reasonable” but jurisprudence did.
agreements - If NLRC grants the Motion, it will proceed to consider
- Money claims of OFWs the appeal on its merits.
- Wage distortion cases in unorganized establishment - If NLRC denies the Motion or it requires you to post an
additional bond, you are given a fresh period of 10-day
NLRC to post the additional bond required. Otherwise, case
- Appellate jurisdiction is dismissed for non-perfection of appeal.
o Decision of LA
o Decision of RD in money claims
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Mcburnie v. Ganzon: 10% of the bond is a reasonable amount Note: If ground for termination is not proven, the quitclaim is
to toll the appeal period. It is the minimum bond to be posted to invalid.
toll the appeal period BUT it does not perfect the appeal.
Attorney’s Fees
Sara Lee v. Macatlang: 10% is not the minimum bond to perfect 2 kinds:
an appeal but it is just the reasonable amount to toll the appeal - Compensation for legal services (to be fixed by
period. agreement of the parties)
- Damages (Art. 111 of LC – 10% threshold imposed by
Note: This is only for cases decided by LA appealed to NLRC court to the losing party)
but it does not apply to decisions by RD appealed to SOLE.
Appellant must file the FULL AMOUNT of the bond. No reduction
is allowed.

Rule 65 Petition – CA
Original Petition brought before the CA (not SC due to hierarchy
of courts; see: St. Martin Funeral Homes).

MR is indispensable
Philtranco: Even if the lower agency does not have a rule for
filing of MR, you file it anyway. Court held that SOLE’s “noting”
of the MR is tantamount to a denial. Thus, Rule 65 is allowed.

PIGLAS: There are exceptions to require an MR i.e., pure

questions of law, public interest, etc. However, these exceptions
need to be proven.

Rule 43 Petition – CA
VA/PVA exercises quasi-judicial powers.

Guagua National Colleges v. CA: Summary of the Rules ––

- From decision of VA/PVA – file an MR within 10 days
from receipt of decision.
- File Rule 43 with CA within 15 days from receipt of
denial of MR.

Rule 45 Petition – SC
From the decision of the CA, file within 15 days from receipt of
decision. Only questions of Law.

Updating of Monetary Awards

Not a violation of the principle of immutability of judgments.

The illegality of the dismissal remains. Only the monetary

consequences of the illegal dismissal judgment are recomputed.

Nature of illegal dismissal cases

Reliefs continue to add up until full satisfaction.

Case is remanded to LA who will compute the final figures for

the award.

Prescriptive Period
Money claims (LC) – 3 years
Illegal dismissal and money claims (CC-QD) – 4 years

Withdrawal of action
Montero v. Times: It is as though no case was filed. The
prescriptive period is not tolled. It is counted from the accrual of
the cause of action.

Quitclaims in Labor Cases

Does not constitute estoppel to file an illegal dismissal cases

When quitclaims can be set aside

- Use of deceit or fraud
- Unreasonable amount
- Terms are contrary to law, public morals, etc and
prejudicial to the rights of third persons
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES