THE LABOR CODE OF THE PHILIPPINES (P.D. 442, as amended) A DECREE INSTITUTING A LABOR REVISING AND CONSOLIDATING TABOR. AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE. EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL PRELIMINARY TITLE Chapter 1 GENERAL PROVISIONS as eitticle 1. Name of Decree. — This Decree shall be known NOTES AND COMMENTS 4. The Labor Code Presidential Decree No. 442, otherwise known as the “Labor Code of the Philippines,” was promulgated on 1 May 1974, but it formally took effect on 1 November 1974, There was a six-month transition period to enable labor and management to study the Jaw and recommend measures or proposals to the Department of ibor and Employment that may help in crafting the implementing rules and guidelines. Furthermore, it provides the period for the Department of Labor to correct the defects of the Code. ‘The Labor Code is defined as the “charter of human rights and a bill of obligations” for every working man, It is designed to be an institution for national development. The enacting clause of the law is reflective of this purpose, “to afford protection to labor, Att ‘THE LABOR CODE OF THE PHILIPPINES at (General Provisions promote employment and human resources development and insure industrial peace based on social justice.” 2, Basic reforms and features of the Labor Code One of the salient’ features introduced in the Code is the purging of laws with built-in leverages for graft and corruption. ‘Anti-graft provisions are embedded to maintain industrial peace and harmony in the working world, Unworkable and obsolete provisions subversive to the common good were eliminated. ‘The Code introduces the following reforms: a) Emancipation of Labor Relations. The Labor Code has emancipated labor relations from the litigious and wasteful procedures adopted by the Court of Industrial Relations under the old system. Created in its place was the modern-oriented, faster-moving National Labor Relations Commission which administers speedy labor justice for it is not governed by the rigid and technical rules of procedure and evidence. b) Transformation of Workmen's Compensation. The Code has transformed workmen's compensation from an employer's liability to a social security scheme by integrating the same with the Social Security System and the Government Service Insurance System. Under this principle, speedy delivery of benefits to an injured or disabled worker is effected. ‘The delay in settling a simple claim characteristic of the old system is eliminated. Moreover, the Code integrates maternity benefits into the Social Security (R.A. 8282). ©) Abolition of the Permit System. The Code has abolished the permit system in labor administration. The reporting system is introduced in its place to eradicate the breeding place of graft and corruption. To illustrate, business establishments may now open on Sundays without a permit in view of the repeal by the Code of the Blue Sunday Law which was scandalously abused by licensing agencies under the old order. @) Placing of Government Corporations with original charters under the Civil Service. The scope of the civil service has been expanded to embrace every branch, agency, subdi- vision and instrumentality of the Government, including gov- ernment-owned or controlled corporations with original char-38 LABOR STANDARDS AND SOCIAL LEGISLATION Ate With Notes and Comments ters. However, employees of government-owned or controlled corporations without original charters (government subsidiar- ies) are governed by the Labor Code (LRTA v. Venus, G.R. No. 163782, 24 March 2006). ©) Creation of Overseas Employment Development Board and National Seamen Board. The Code has created these offices to promote the export of manpower. They are tasked to determine and implement policies that protect Overseas Filipino Workers from economic exploitation and oppression. The offices have already been abolished and their functions assumed by the Philippine Overseas and Employment Administration created under E.0. 797 signed on 1 May 1982 reorganizing the Department of Labor and Employment. 1) Incorporation of Agrarian Reform. The Code has incorporated agrarian reform emphasizing the policy of the State to promote social justice. With the emancipation of the tenants from the bondage of the soil, agrarian uprisings like those of the 1950s may not be repeated. ®) Updating, of all Labor and Social Legislations. The Code has updated all labor and social legislations such as: Woman and Child Labor Law, Apprenticeship Law, Industrial Safety Law, etc., to harmonize them with national development priorities based on social justice and human dignity. Physically, the Code is divided into seven (7) books: a) Book I — Pre-employment, covering recruitment and placement of workers, and employment of non-resident aliens; b) Book II — Human Resources Development, dealing with national manpower development program, and training and employment of special workers; ¢) Book II — Conditions of Employment, dealing with working conditions, rest periods, wages, etc.; d) Book IV — Health, Safety and Social Welfare Benefits — covering, medical, dental and ‘occupational safety; e) Book V — Labor Relations, covering labor organization, unfair labor practices, collective bargaining, strikes, lockouts, ete.; f) Book VI — Post Employment, covering termination of employment and retirement from the service; and g) Book VII — Penal Provisions, Prescription, Transitory, and Final Provisions. ‘The seven (7) books can be classified into three (3) main parts: Pre-employment; State of employment; and Post-employment. Art. 2. Date of effectivity. — This Code shall take effect six (6) months after its promulgation. Ans ‘THE LABOR CODE OF THE PHILIPPINES 29 ‘General Provisions NOTES AND COMMENTS 4. Effectivity of the Labor Code ‘The Labor Code was promulgated on 1 May 1974, and took effect on 1 November 1974 after the lapse of a six-month transition period. Art. 3. Declaration of basic policy. — The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work. NOTES AND COMMENTS 4. Purpose of affording protection to labor ‘The purpose is to place labor on an equal plane with manage- mont with all te power and influence in negotiating for the advance- ment of his interests and the defense of his rights. Under the policy of social justice, the law bends to accommodate the interests of the ‘working class on the human justification that those with less privi- loges in life should have more privileges in law (Phil. Air Lines, Ine. v. Santos, Jr., et al., G.R. No, 77875, 4 February 1993). Protection to labor does not signify the promotion of employment alone. What con- corns the Constitution more paramountly is that such employment bbe above all, decent, just, and humane (Phil. Association of Service Exporters, Inc. v. Drilon, G.R. No. 81958, 30 June 1988). The policy of the law is to apply it to a greater number of employees (Francisco v. NERC, G.R. No, 170087, 31 August 2006). 2. Extent and limits of the protection i 1e who is, ‘The principle of protection extends upon an employe i abused either by the employer or by the union leadership or their respective representatives. However, the right is unavailing in the following instances: (a) Protection to labor is not a license to condone wrong- doings, Thus, if the loss of the merchandise is reasonably at- tributed to said employee, and he is charged with theft, even if he is acquitted of the charge on reasonable doubt, when the“0 LABOR STANDARDS AND SOCIAL LEGISLATION Art. 3 With Notes and Comments employer has lost its trust and confidence in him, it would be highly unfair to require said employer to continue employ- ing him or to reinstate him for the law authorizes neither op- pression nor self-destruction of the employer (Phil. Education Co., Inc. v. Union of the Phil. Education Employees, G.R. No. 1-13778, 29 April 1960; Pacific Mills, Inc. v. Alonzo, 199 SCRA 617). () The care and solicitude in the protection and vindication of the rights of workers cannot justify disregard of, relevant facts in the construction of the text of applicable rules in order to arrive at a disposition in favor of an employee (Phil. Air Lines, Inc. v. NLRC, 201 SCRA 687). (© The rule that there should be concern, sympathy and solicitude for the rights and welfare of the workers, is ‘meet and proper. But to disregard the employer's own rights and interests solely on the basis of concern and solicitude for labor is unjust and unacceptable (Soriano v. Offshore Shipping and Manning Corp., et al., G.R. No. 78409, 14 September 1989). ‘Thus, in the guise of affording protection to labor, courts cannot render decisions on the basis of sympathy and solicitude for the workers at the expense of the employer for this would run afoul with the avowed principle of non-oppression ordained in the Civil Code (Caltex v. PLO, 92 Phil. 1014). (@ Where both parties have violated the law, neither party is entitled to protection (PAMBUSCO Employees Union v. Court of Industrial Relations, 68 Phil. 591). (© The constitutional poliey to provide full protection to labor is not meant to be a sword to oppress employers (Agabon. v. NLRC, 442 SCRA 573). (The liberal construction in favor of labor must not sacrifice the fundamental principles of due process for the protection of the rich and the poor in order to attain proper justice (Magalona v. WCC, 101 Phil. 441). (@) Protection to labor does not mean that every labor dispute will be decided in favor of the workers. The law also recognizes the employer's rights which are entitled to respect and enforcement in the interest of fair play (Duncan v. Glaxo, GR. No, 162994, 17 September 2004). (h) In affording full protection to labor, the State must ensure equal work opportunities to all employees regardless And ‘THE LABOR CODE OF THE PHILIPPINES a ‘General Provisions of sex, race or creed (Francisco v. NLRC, G.R. No. 170087, 31 August 2006). Art. 4. Construction in favor of labor. — All doubts in the implementation and interpretation of the provisions of # Code, including its implementing rules and regulations shall be resolved in favor of labor. NOTES AND COMMENTS: 1. _Affirmance of the Civil Code provision ‘The above provision reaffirms Art. 1702 of the Civil Code which states that “all labor legislations and all labor contracts shall be construed in favor of the safety and decent living for the laborer.” ‘The Civil Code also provides that “neither capital nor labor shall act oppressively against each other, or impair the interest or convenience of the public.” Thus, in all contractual, property, or other relations, whon ono of tho partica io at a disadvantage on account of his moral dependence, ignorance, indigence, mental ‘weakness, tender age or other handicaps, the court must be vigilant for his protection. To illustrate, the Supreme Court in one ease held: “The private respondents were at a disadvantage insofar as the contractual relationship was concerned. Workers in our country do not have the luxury or freedom of declining job openings or filing resignations even when some terms and conditions of employment are not only onerous and iniquitous but illegal. Itis precisely because of this situation that the framers of the Constitution embodies provisions on social justice and protection to labor in the Declaration of Principles and State Policies.” In another case, the Supreme Court ruled that respondent company’s invocation of solutio indebiti or payment by mistake due toits use of 251 days as divisor must fail in the light of the Labor Code mandate that “all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be resolved in favor of labor” (Union of Filipro Employees v. Vivar, Jr, 205 SCRA 200). However, it is now settled that the employer can require employees to refund what it has erroneously paid, provided it was immediately corrected after its discovery (Wesleyan University Phils. v. Wesleyan University-Phils. Faculty and Staff Ass'n, G.R. ‘No. 181806, 12 March 2014).2 LABOR STANDARDS AND SOCIAL LEGISLATION Ard With Notes and Comments Moreover, the failure to submit a position paper on time is not a ground for the dismissal of a complaint in labor cases, and therefore it cannot be invoked by the employer to declare the employees as non-suited (FEM's Elegance Lodging House v. Murillo, 58 SCAD 79). ‘This ruling is in accord with Art. 4 of the Labor Code which resolves all doubts in the interpretation of the law and its implementing rules fand regulations in favor of labor. Jurisprudence is rich as to the State's basic policy of extending protection to labor where contficting interests between labor and management exist (Supra). 2. Application of the rule of liberal construction in favor of labor ‘The rule of liberal construction in favor of labor applies only in case there is doubt. Ifthe contractual provision is crystal-clear, then it must be applied in accordance with its express terms. The rule, according to the Code Commission, is justified on grounds of public policy. This is clearly pictured in one case. An employee died of ‘acute hemorrhagic pancreatitis after retiring from the night shift. Decedent's mother filed a claim for ineome benefits which was denied by the GSIS on the ground that the disease was not occupational. Furthermore, she failed to show causal connection between the ailment and the nature of the employment. The decision of the GSIS was affirmed by the Employees Compensation Commission. Petitioner went to the Supreme Court which held for the former. It stated among other things that since “the exact cause of the acute hemorrhagic pancreatitis is still unknown despite extensive researches in this field” any doubt thereof shall be resolved in favor of labor (Villa Vert v. ECC and GSIS, G.R. No. 48605, 14 December 1981; Jimenez v. ECC, G.R. No. 58176, 23 March 1984). 3. Liberal construction in favor of labor; its purpose In carrying out and interpreting Labor Code provisions including its implementing rules and regulations, the worker's welfare should be the primordial and paramount consideration (Songeo, et al. v. NLRC, G.R. Nos. 50999-51000, 23 March 1990), for ‘an exploited working class is a discontented working class. Tt is a treadmill to progress and a threat to freedom. Thus, all efforts must. bbe exerted to dignify the lot of the employee, elevating him to the same plane as his employer, that they may better work together as equal partners in the quest for a better life (Ocampo, Jr. v. NLRC, GR. No. 81077, 6 -June 1990). The principle of liberal construction Art. ‘THE LABOR CODE OF THE PHILIPPINES 3 ‘General Provisions in favor of labor is in accord with the doctrine that those who have less in life should have more in law. When conflicting interest of labor and capital are weighed on the scales of social justice, the heavier influence of the latter must be counterbalanced by the sympathy and compassion the law must accord the underprivileged worker (Eastern Shipping Lines v. POEA, 166 SCRA 523). The law authorizes neither oppression nor self-destruction of the employer (JPL Mktg, Promotions v. C.A., G.R. No. 151966, 8 July 2005). Art, 5. Rules and Regulations. — The Department Labor and Employment and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such’ rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general NOTES AND COMMENTS 4. Implementing agencies . ‘The Department of Labor and Employment, other agencies tasked to administer and enforce the Labor Code or any part thereof and to promulgate the necessary implementing rules and regulations are the following: National Labor Relations Commission, Philippine Overseas Employment Administration, National Wages and Productivity Commission, Employees Compensation Commission, Social Security Commission, OWWA, GSIS, etc. 2. Extent and limits of rule-making power Regulations adopted under legislative authority by a parti cular department mut bo in harmony withthe provisone of te law and for the sole purpose of carrying into effect its general provisions. By such regulations, the law itself eannot be extended. So long as they relate solely to carrying into effect the provisions of the law, they are valid (United States v. Molina, 29 Phil. 119), Itis elementary that an Act of Congress cannot be amended by a rule promulgated by the Workmen's Compensation Commission (Santos v. Hon Estenz, et al., 109 Phil. 4189). It is also settled that rules and regulations duly promulgated and adopted in pursuance of properly delegated authority have the force and effect of law where they are legislative“ LABOR STANDARDS AND SOCIAL LEGISLATION Art. ‘With Notes and Comments in character, but rules and regulations which are merely executive or administrative views as to the meaning and construction of the statute are not controlling on the courts, and cannot alter or extend the plain meaning of a statute, although they are entitled to great, weight where the statute is ambiguous (82 CJS, 770-771). Administrative rules and regulations must also be published if their purpose is to enforce or implement existing law pursuant also toa valid delegation. However, interpretative regulations and those merely internal in nature, that is, regulating only the personnel of the administrative agency and not the public, need not be published. Neither is publication required of the so-called letters of instructions issued by administrative superiors concerning the rules or guidelines to be followed by their subordinates in the performance of their duties (Tafiada v. Tuvera, 146 SCRA 446). Needless to stress, the implementing rules partake the nature of a statute and are binding as if written in the law itself. They have the force and effect of law and enjoy the presumption of constitutionality and legality until they are set aside with finality in an appropriate case by a competent court (Dela Salle Araneta University v. Bernardo, G.R. No. 190809, 13 February 2017). 3. Laws on effectivity ‘The following are the rules on effectivity: (a) Laws shall take effect after fifteen (15) days following the completion of their publication in the Official Gazette, unless it is otherwise provided (Art. 2, Civil Code). (>) In addition to other rule-making requirements provided by law not inconsistent with this Book, each rule shall become effective fifteen (15) days from the date of filing as above provided unless a different date is fixed by law, or specified in the rule in cases of imminent danger to public health, safety and welfare, the existence of which must be expressed in a statement accompanying the rules. The agency shall take appropriate measures to make emergency rules known to persons who may be affected by them (Chapter 2, Book VII, 1987 Administrative Code). ‘Thus, in one case, the Supreme Court ruled that the questioned circulars (DOLE Department Order No. 16, Series of 1991 and POEA. Memorandum Circulars Nos. 30 and 37, Series of 1991, temporarily Art.6 ‘THE LABOR CODE OF THE PHILIPPINES 45 General Provisions suspending the recruitment by private employment agencies Filipino domestic helpers for Hongkong) are a valid cenive of Police power delegated to the executive branch of Governors Nevertheless, they are legally invalid, defective and unenforeatiy for lack of proper publication and filing in the Office of the National Administrative Register as required in Art. 2of the Civil Code, Aan 5 of the Labor Code and Secs. 3(1) and 4, Chapter 2, Book VIT of the Administrative Code of 1987 (Phil. Association of Service Exporters Inc. v. Torres, 212 SCRA 298). " Art. 6. Applicability. — All rights and benefits granted to workers under this Code shall, except as may otherwing be provided herein, apply alike to all workers, whether’ agricultural or non-agricultural. NOTES AND COMMENTS 1. Purpose of the law The above provision is designed to encourage worl seek jobs in agricultural undertakings. It has teen chee ar the country’s industrial development is strengthened through accelerated and improved development of its agricultural economy. Therefore, agricultural workers need support from the State; and in can pe attained only through legislations actually enacted for ir uplift, Also, balance of labor supply will both be maintained in the industrial and agricultural sectors, thereby reducing labor oversupply in the urban areas where industrial establishments confine. 2) Employer-employee relationship; the jurisdictional founda- Proof of employment relation is of first importance, for the Teason that the existence of the employer-employee relationship is the jurisdictional foundation for a compensation elaim (Avia Steel Corp. v. WCC, L-7636, 27 June 1956). This is so for an employee can enjoy all the rights and benefits under the Labor Code if such relationship exists. ‘The basic factor underlying the exercise of rights and the filing of claims for benefits under the Labor Code and ather neactiasay“6 LABOR STANDARDS AND SOCIAL LEGISLATION An6 With Notes and Comments issuances or labor legislations is the status and nature of one’s employment, Whether an employer-employee relationship exists and whether such employment is managerial in character or that of a rank-and-file employee are primordial considerations before extending labor benefits (Villuga, et al. v. NLRC, G.R. No. 75038, 23 August 1993). 3. Commencement of employer-employee relationship Employer-employee relationship is created by an employment contract, whether express or implied. Such contract may be shown to exist by proof of hire by competent person, either by the employer himself or through an authorized representative or agent (Asia Steel Corp. v. WCC, L-7636, 27 June 1965). It has been held that the contract of employment marks the beginning of employment, not the ‘commencement of work. Jn our jurisdiction, the benchmark of economic reality in analyzing possible employment relationships for purposes wring the labor code ought to be the economic dependence of the worker on his employer (Orozco v. C.A. 5562 SCRA 36 [2008)). 4, Hiring by competent person ‘The question of authority to hire arises where hiring is done by a person other than the employer himself. It has been held that the usual principle of agency applies. Thus, hiring is considered competent in the following instances: (@)_ if'it is done by an agent with actual authority; (©) if'it is done by an agent with apparent authority; (© _if it is done without authority, but subsequently ratified either expressly or impliedly (Asia Steel Corp. v. WCC, -7636, 27 June 1956). 5. Four-fold test (Indicia of determination); “Economic or Eco- nomic Reality Test ‘The existence or non-existence of the employer-employee relationship is commonly determined by examination of certain factors or aspects of the relationship, as follows: (a) the manner of selection and engagement of the putative employee; Art.6 ‘THE LABOR CODE OF THE PHILIPPINES a General Provisions (b) the mode of payment of wages; (© the presence or absence of the power of dismissal; and (@ the presence or absence of a power to control the putative employee's conduct (Hijos De F. Escano, Inc. v. NLRC, GR. No. 59229, 22 August 1991), i, the power to control the employee with respect to the means and methods by which the work is to be accomplished, To bolster the payment of wages and control test, the existing ‘economic conditions prevailing between the parties, like the inclu: sion of the employee in the payrolls (Sevilla v. C.A., G.R. Nos. 44182- 8, 15 April 1988), submission of his name with the SSS, Pag-IBIG, PhilHealth, otherwise known as the economic test, are also applied in determining employer-employee relationship. 6. The most decisive control test; Factors that determine con- trol test The control test assumes primacy in the overall consideration. Under this test, an employment relation obtains where work is per. formed or services rendered under the control and supervision of the party contracting for the service, not only as to the result of the work but also as to the manner and details of the performance (Iloilo Chi- nese Commercial School v. Fabrigar, L-16600, 27 December 1961; Jimenez, et al. v. NLRC, G.R. No. 116960, 2 April 1996). The power of control refers merely to the existence of the power and not to the actual exercise thereof (MAM Realty Dev. Corp. v. NLRC, G.R. No. IIA787, 2 June 1995), ‘The following factors determine control test: (@) Not every form of control establishes employer- employee relationship. A demarcation line should be drawn between: (a) rules that merely serve as guidelines which only promote the result, and (b) rules that fix the methodology and bind or restrict the party hired to the use of such means or methods. Under the first category, there exists no employer- employee relationship. In the second category it has the effect of establishing employer-employee relationship (Insular Life Assurance Co., Ltd. v. NLRC, 179 SCRA 439; Consulta v. C.A., GR. No, 145443, 18 March 2005);48 LABOR STANDARDS AND SOCIAL LEGISLATION até ‘With Notes and Comments (b) The skills rendered, source of instrumentalities and tools, location of the work, duration of the relationship, the hired party's discretion when and how long to work, the manner of payment, whether the work is part of the regular business of the hiring party, the contract provisions on benefits (Sonza v. ABS-CBN, G.R. No. 138051, 10 June 2004); (© The bus owner has control over a bus driver, an employee, although paid on commission basis (R. Transport v. Ejandra, G.R. No. 148508, 20 May 2004); @ Employment does not exist for a sales agent who receives commission on his gross sales (Abante v. Lamadrid Bearing and Parts, G.R. No. 615989, 28 May 2004); (© Where there is less control in the exercise, the more likely the person hired is an independent contractor (Sonza v. ABS-CBN, G.R. No. 138051, 10 June 2004); (® Where the hirer cannot discipline or dismiss the hired person over his performance (Ibid); (g)_ The worker performs subject to employer's specifi- cations indicating control (Dy Keh Beng v. ILMUP, G.R. No. 32245, 23 May 1979); (h) The company has direct control and supervision over the activities of pakiao workers (PRC v. C.A., G.R. No. 29590, 30 September 1982); (Since the owner controls the work performance of a caretaker of a barber shop, he is an employee of the establishment (Jo v. NLRC, G.R. No. 121605, 2 February 2000). ‘Thus, insurance agents whose time and effort spent by them are solely dependent on their own will and they are paid on their commissions based on a certain percentage of their sales. No cemployer-employee relationship exists between the insurance company and such agents (Great Pacific Life v. Judico, 180 SCRA 445). ‘The need to consider the existing economic conditions prevail- ing between the parties, in addition to the standard of right-of-con- An 6 ‘THE LABOR CODE OF THE PHILIPPINES o ‘General Provisions trol like the inclusion of the employee in the payrolls, to give a clea er picture in determining the existence of an employer-employee relationship based on an analysis of the totality of economic cireum- stances of the worker. Thus, the determination of the relationship between employer and employee depends upon the circumstances of the whole economic activity, such as: (1) the extent to which the services performed are an integral part of the employer's busines: @) the extent of the worker's investment in equipment and facili ties; (8) the nature and degree of control exercised by the employer; (A the worker's opportunity for profit and loss; (5) the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; (6) the permanency and duration of the relationship between the worker and the employer; and (7) the degree of dependency of the worker upon the employer for his continued employment in that line of business (Francisco v. NLRC, GR. No. 170087, 31 August 2006; Sevilla v. C.A., G.R. Nos. L-41182- 3, 15 April 1988). The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment in that line of business 8. The “two-tiered” test: economic dependence and control test ‘There are certain cases the control test is not sufficient to give a complete picture of relationship between the parties, owing to the complexity of such a relationship where several positions have been held by the worker. There are instances when, aside from the employer's power to control the employee with respect to the means and methods by which the work is to be accomplished, economic realities of the employment relations help provide a comprehensive analysis of the true classification of the individual, whether employee, independent contactor, corporate officer or some other capacity. Thus, the better approach would therefore be to adopt & ‘two-tiered test involving: (1) the putative employer's power to control the employee with respect to the means and methods by which the ‘work is to be accomplished; and (2) the underlying economic realities of the activity or relationship. This two-tiered test would provide us with framework of analysis, which would take into consideration the totality of circumstances surrounding the true nature of the relationship between the parties. This is especially appropriate in this case where there is no written agreement or terms of reference to base the relationship on; and due to the complexity of50 LABOR STANDARDS AND SOCIAL LEGISLATION Ane ‘With Notes and Comments the relationship based on the various positions and responsibilities given to the worker over the period of the latter's employment. % — Suspension of employer-employee relationship Employer-employee relationship is not severed in the following instances: (@) Regular seasonal employees are not, strietly speak- ing, separated from the service but are merely considered as fon leave of absence without pay until they are re-employed. ‘Their employment relationship is never severed but only sus- pended (Manila Hotel Co. v. CIR, 9 SCRA 184; ICAWO v. CIR, 16 SCRA 562); (®) The cessation of the milling activities at the end of the season is certainly not permanent or definitive; it is a foreseeable suspension of work. There is merely a temporary cessation of manufacturing process due to passing shortage of raw materials that by itself alone is not sufficient to severe employment relationship between the parties since the shortage is not permanent (ICAWO v. CIR, 16 SCRA 562); (© Bona fide suspension of operation of a business or undertaking for a period not exceeding six (6) months does not terminate employment relationship (Art. 292, infra); @ Fulfillment by the employee of a military or civic duty does not terminate employment relationship (Ibid.): (©) Regular employees of the work pool, while waiting for their assignment, are not considered terminated from their services; (® An employee who was dismissed for a specific cause which turned out to be false or non-existent is entitled to reinstatement (Pepito v. Sec. of Labor, 96 SCRA 454; Magtoto v, NLRC, G.R. No. 63370, 18 November 1985); (@) Filing by the employee of an illegal dismissal case does not severe employment relationship; (h) Employees who stage a legal strike does not consti- tute severance of employer-employee relationship; and (Employees of employer whose fishing vessels are dry-docked or undergoing repairs are not terminated from Art. 6 "THE LABOR CODE OF THE PHILIPPINES 51 ‘General Provisions employment (Phil. Fishing Boat Officers v. CIR, 112 SCRA 159). 10. Working scholars not employees There is no employer-employee between students on the one hand, and schools, colleges or universities on the other, where students work for the latter in exchange for the privilege to study free of charge, provided the students are given real opportunity, including such facilities as may be reasonable, necessary to finish their chosen courses under such arrangement (Sec. 14, Rule X, Book III, Rules Implementing the Labor Code). In a civil suit for damages filed by an injured person against a working scholar and the school, the latter claimed non-existence of employer-employee relationship. It must be noted that for purposes of imposing liability for tortious act, the working scholar is consid- ered an employee and the school as employer (Filamer Christian Institute v. IAC, 212 SCRA 637). 41. Resident physicians as employees of a hospital It is settled that there exists employer-employee relationship between a resident physician and the hospital. Under the “control test” an employment relationship exists between a physician and a hospital if the hospital controls both the means and the details of the process by which the physician is to accomplish his task. The resident doctors maintained specific work schedules as determined by the Medical Director, and hospital supervised and monitored the resident doctors work through the nursing supervisors, charge nurses and orderlies. They were made subject to hospital's code ethics, the provisions of which cover administrative and disciplinary measures on negligence of duties, personnel conduct and behavior, and offences against persons, property and the hospital's interest. Lastly, IDs, BIR forms and SSS/Medicare program enrollment all prove that resident doctors were employees (Calamba Medical Genter, Inc. v. NLRC, G.R. No. 176484, 25 November 2008). 12. Resident physicians not as employees of a hospital There exists no employer-employee relationship between resi- dent licensed physician and the accredited training hospital if: (@) there is training agreement between them; and52 LABOR STANDARDS AND SOCIAL LEGISLATION Art 6 With Notes and Comments (®) the training program is duly accredited by the Department of Health (DOH) whose training program is also accredited by the Professional Regulation Commission (PRO) (D.O. No. 182, Series of 2017). Physicians undergo residency training in order to improve their knowledge in a specialized medical field or discipline. It is for this purpose, residency necessitates further on-the-job training. Thus, the relationship between the training hospital and the resident doctor is not one of an employer-employee. The training hospital is treated, in this instance, as a medical school training the resident doctor in a special medical discipline (UERMMMC v. Usec. Laguesma, G.R. Nos. 125425-26, 24 November 1993). 43. Lawyers as employees Legal problems resulting from complex business transactions are usually handled by lawyers hired by companies, known as in- house lawyers. In the company’s organizational chart, they are considered as employees or be treated like other officers. Under the circumstances, in-house lawyers are employees of the company. ‘Thus, if an in-house lawyer failed to perform his duties, he can be dismissed (Hydro Resources v. Paglilauan, 172 SCRA 399). 14, Professors as employees ‘The University practically exercises an effective control and supervision over the work of professors which includes what sub- jects to be taught, when to be taught and where to be taught. Fur- thermore, they receive regular compensations from the university and where their services are proven to be unsatisfactory, they can be dismissed (FEATI University v. Bautista, 18 SCRA 1191). 15. Stevedores not employees ‘A shipping company usually contracts out with other com- panies offering arrastre services as it is not customarily engaged in stevedoring activities. Thus, stevedoring employees are not employed by the shipping company (Escano v. NLRC, 201 SCRA 63). An 6 ‘THE LABOR CODE OF THE PHILIPPINES 53 ‘General Provisions 16. Jeepney drivers as employees Under the “boundary” system, the jeepney driver is not paid a fixed wage, and he shoulders gasoline expenses, but these factors by themselves do not create a lessor-lessee relationship. The jeepney owner still exercises control and supervision over the driver by seeing toit that he negotiates the route prescribed by the government. agency. In lease, the lessor loses complete control over the chattel. In the case of a jeepney owner, he retains control over his vehicle (CLPW v, Abbas, 18 SCRA 71; Jardin v. NLRC, 326 SCRA 299), ‘The fact that the transportation company paid a driver on commission basis does not rule out the presence of employer- employee relationship (R Transport v. Ejandra, G.R. No. 148508, 20 May 2004). 17. Caddies of Golf Clubs not employees Although caddies submit to some supervision of their conduct to the Golf Club while enjoying the pursuit of their occupation within the premises; however, they do not observe working hours and are free to leave anytime they please or stay away for as long as they like. With or without breach of club rulés, they can be barred in the golf premises. All these considerations negate existence of employer- employee relationship (Manila Golf and Country Club, Inc. v. IAC, 287 SCRA 307). 18. Crew members not employees of boat owner; relationship assumes a joint venture ‘The relationship between the boat owner and crew members partakes that of a joint venture as shown by the following: (a) crew members do not receive compensation, (b) they divide/share in the fish catch, (c) they venture into the sea regardless of the instruction of the boat owner under their best judgment on how long and where they go fishing, and (d) crew members join the expedition upon invitation of the ship master even without the knowledge of the boat owner. Under these circumstances, there exists no employer- employee relationship between the boat owner and the crow members (Villavilla v. C.A., 212 SCRA 488).54 LABOR STANDARDS AND SOCIAL LEGISLATION Ar 6 With Notes and Comments 19. Medical consultants not employees It settled, there is no employer-employee relationship between a hospital and medical consultants (Ramos v. C.A., 380 SCRA 467) as the latter are not under the effective control and supervision of the former. At most, they receive certain honorarium or fees on matters, that require consultation/advice by the consultants. However, for purpose of allocating responsibility in medical negligence cases (tortuous act), employer-employee relationship exists between the hospital and its attending or visiting physician. 20. Status of Women-Workers in Certain Work Places Any woman who is permitted or suffered to work with or without compensation, in any night club, cocktail lounge, beer house, massage clinic, bar or similar establishments, under the effective control or supervision of the employer for a substantial period of time as determined by the secretary of Labor and Employment, shall be considered as an employee of such establishments for purposes of labor and aocial logiclation (See. 4, Rule XH, Book II], Omnibus Rules Implementing the Labor Code). 24. Owner of the project, an employer in labor-only contracting ‘The “labor-only contractor” — i.e, “the person or intermediary” —is considered “merely as an agent of the employer.” The employer is made by the statute responsible to the employees of the “labor only” contractor as if such employees had been directly employed by the employer. Thus, where “labor-only” contracting exists in a given case, the statute itself implies or establishes an employer- ‘employee relationship between the employer (the owner of the project) and the employees of the “labor-only” contractor, this time for a comprehensive purpose: “employer for purposes of this Code, to prevent any violation or circumvention of any provision of this, Code.” The law in effect holds both the employer and the “labor- only” contractor responsible to the latter's employees’ rights under the Labor Code (Vigilla v. PCCR, G.R. No. 200094, 10 June 2013). 22, Termination of employer-employee relationship ‘An employer may not terminate the services of an employee except for a just or authorized cause (Arts. 285, 288, 289, and 290, infra). On the other hand, an employee may terminate without Art. 6 ‘THE LABOR CODE OF THE PHILIPPINES 55 General Provisions just cause, employment relationship by serving a written notice on the employer at least one (1) month in advance. However, he may terminate employment relationship without serving notice on the employer for just causes provided in Art. 285, infra, 23. Effects of illegal dismissal Employment relationship is not terminated in an illegal dismissal case. An employee who was illegally dismissed is entitled to reinstatement without loss of seniority rights, full backwages inclusive of allowances, damages and other benefits due him computed from the time of his compensation was withheld up to the time of his actual reinstatement (Art, 285, infra.; Arts. 2217 to 2220, New Civil Code. 24. Applicability and non-applicability Does Art. (6) of the Labor Code apply to government corpora- tions? By express provision of the Constitution and the Labor Code, terms and conditions of employment of all government employees including employees of government-owited or controlled corporations with original charters shall be governed by civil service law, rules and regulations (P.D. 807, as amended; Art. IX-B, Sec. 2[1], 1987 Phil. Constitution). It should be noted, however, that the term “government- owned or controlled corporation” must be interpreted in the light of Opinion No. 62 of the Secretary of Justice, series of 1976. Under this Opinion, there is a difference between corporations organized pursuant to a legislative charter or a special law and corporations not directly chartered or created by special law but were acquired or taken over by corporations created under special law. The former are government-owned or controlled corporations with original charters governed by civil service law; while, the latter are known as subsidiaries or corporate offsprings governed by the Labor Code. Opinion No. 62 of the Secretary of Justice, series of 1976 was, in essence, voided by the Supreme Court in its ruling laid down in National Housing Authority v. Juco: “there should be no longer any question at this time that employees of government-owned or controlled corporations are governed by the civil service law and civil service rules and regulations. xxx A government-owned orcontrolled56 LABOR STANDARDS AND SOCIAL LEGISLATION ant6 With Notes and Comments corporation could create several subsidiary corporations (and) these subsidiary corporations would enjoy the best of two worlds. Their officials and employees would be privileged individuals, free from the strict accountability required by the Civil Service Decree and the regulations of the Commission on Audit. Their incomes would not be subject to the competitive restraints of the open market nor to the terms and conditions of the civil service employment. Such a situation cannot be allowed to exist" (NHA v. Juco, 134 SCRA 172). In National Service Corporation v. NLRC, the Supreme Court ruled (abandoning the NHA doctrine, but resurrecting Opinion No. 62 of the Secretary of Justice, series of 1976) on the impact of the constitutional provision on the scope of civil service which reads: “The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the government, including government-owned or controlled corporations with original charters.” According to the Court, “By clear implication, the Civil Service does not include government-owned or controlled corporations which are organized as subsidiaries of government-owned or controlled corporations under ‘the general corporation law x x x Government corporations with original charters are those created by law, by an act of Congress, or by special law and not under the general corporation law.” In view of the constitutional mandate, the Court affirmed the jurisdiction of the National Labor Relations Commission on a complaint filed by a NASECO employee. Furthermore, it argued that NASECO, ‘a company that provides security guards as well as messengerial, janitorial and other similar services to the Philippine National Bank and its agencies, being a subsidiary of the National Investment and Development Corporation (NIDO), a subsidiary wholly-owned by the Philippine National Bank, in turn a government-owned corporation, it (NASECO) is therefore a government-owned or controlled corporation without original charter (NASECO v. NLRC, G.R. Nos. 69870, 70295, 29 November 1989). The PNB is now a privately- ‘owned corporation, 25. The manner-of-creation test (original charter test) ‘A corporation is government-owned and controlled if the capital stock is owned by the government even if the corporation is organized in accordance with the corporation law (PNOC-Energy ‘Dev. Corp. v. NLRC, G.R. No. 100947, 31 May 1993). ‘The test in determining whether a government-owned or controlled corporation is subject to Civil Sérvice Law is the manner ArT ‘THE LABOR CODE OF THE PHILIPPINES at ‘Bmaneipation of Tenants of its creation that such government corporations created by special charters are subject to its provisions while those incorporated under the general Corporation Law are not within its coverage. ‘Thus, the PNOC-EDC having been incorporated under the general Corporation Law, is a government-owned or controlled corporation whose employees are subject to the provisions of the Labor Code (PNOC-Energy Development Corporation v. Hon. Leogardo, G.R. No. 58494, 5 July 1989). However, employees of the National Parks Development Committee, as an agency of the government, are covered by civil service rules and regulations (Republic v. CA, G.R. No. 87676, 20 December 1989), and are compulsory members of the GSIS. Likewise, the Philippine National Red Cross was not ‘impliedly converted to a private corporation” simply because its charter was amended to vest in it the authority to secure loans, be exempted from payment of all duties, taxes, fees and other charges of all kinds on all importations and purchases for its exclusive use (Camporedondo v. National Labor Relations Commission, G.R. No. 129049, 6 August 1998). Chapter Il EMANCIPATION OF TENANTS Art. 7. Statement of Objectives. — Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation the emancipation of the tiller of the soil from his bondage. NOTES AND COMMENTS 1. Emancipation of tenants By virtue of P.D. 2, the entire country was proclaimed as a land reform area. This decree enjoins all agencies and offices of the Government to extend full support, cooperation and assistance tothe Department of Agrarian Reform to insure the successful prosecution of agrarian reform programs. ‘This was strengthened by another law emancipating the tenants from the bondage of the soil by transferring to them the58 LABOR STANDARDS AND SOCIAL LEGISLATION An ‘With Notes and Comments ownership of the land they till and providing the instruments and mechanism therefore, recognizing that the old concept of land ownership by a few spawned valid and legitimate grievances that, ushered violent conflict and social tension. 2, Meaning of agrarian reform Agrarian reform means the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of tenurial arrangement, to include the totality of factors and support services designed to lift the economic status of the beneficiaries and all other arrangements alternative to the physical redistribution of lands, such as production or profit- sharing, labor administration, and the distribution of shares of stocks, which will allow beneficiaries to receive a just share of the fruits of the lands they work (Sec. 3, R.A. 6657). 3. Purpose of agrarian reform ‘The philosophy behind the agrarian reform programs in the Philippines was vividly described in the United Nations Report, thus: “In the Philippines, the evils that have surrounded the system of share tenancy have grown to such a magnitude in several instances in the past that hostilities and armed conflicts have taken place between the landed elite and the peasantry. The share-crop or kasama tenancy system often deprives the tiller of a just share of the produce, makes his tenure insecure, exposes him to usurious practices and to perpetual indebtedness and forces him to be idle after the few months spent on the farm” (UN Report, Vol. I, 1970). The purpose was also elucidated by the Supreme Court, thus: “The history of land tenancy, especially in Central Luzon, is a dark spot in the social life and history of the people. It was among the tenants of Central Luzon that the late Pedro Abad Santos, acting as the savior of the tenantclass which for generations hasbeen relegated to a life of bondage, without hope of salvation or improvement, ‘enunciated a form of socialism as a remedy for the pitiful condition of the tenants of Central Luzon. It was in Central Luzon and, during the war that the Hukbalahap, rose in arms against the thrall” (De Chavez v. Zobel, G.R. No. L-28609, 17 January 1974). Art. 8 Transfer of lands to tenant-workers. — Being a vital part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under Art 8 ‘THE LABOR CODE OF THE PHILIPPINES 59 Emancipation of Tenants a system of share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not In all cases, the landowners may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate i NOTES AND COMMENTS 4. Retention limit Under R.A. 6657 (Comprehensive Agrarian Reform 1988), a landowner may retain not more ne five (6) snd Fl . agricultural land. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: a) that he is at least fifteen (15) years of age, and b) he is actually tilling the land or directly managing the farm. It must be noted, however. that 8 landowner who had retained seven (7) hectares under P.D. 27 will not be affected by the retention limit provided under R.A. 6657, __In one case, the Supreme Court ruled that “the concerned heirs are entitled under the law to a retention of seven (7) hestaree of agricultural lands which is mandatory and the office had no discretion to alter the disposition on the retention limits accorded by law to the landowners. No one, not even the petitioners tenants, nor any court of justice, can deprive or deny the landowners of the retention of seven (7) hectares which the law has reserved for thems Otherwise, the law would be set to naught or would lose its very reason for being” (Tenants of Dr. Sison v. Court of ron for boing f n-v. Court of Appeals, 210 Lands obtained through homestead patent Republic Act 6657 (Comprehensive Agrarian Reform Law of 1988) contains a proviso supporting the inapplicability of P.D. 27 to lands covered by homestead patents. However, original homestead grantees or their direct compulsory heirs who still own the original homestead at the time of the approval of the law shall retain the same areas as long as they continue to cultivate said homestead (Alita v. Court of Appeals, 170 SCRA 706). Thus, lands obtained through homestead patent are not covered by agrarian reform law.cy LABOR STANDARDS AND SOCIAL LEGISLATION Art 9 ‘With Notes and Comments Furthermore, an agricultural tenancy cannot be established on land in a residential subdivision (Gonzales v. Court of Appeals, G.R. No. 36218, 29 June 1989). 3. Livestock and poultry lands not covered Section 11 of R.A. 6657 which includes “private agricultural lands devoted to commercial livestock, poultry and swine raising” in the definition of “commercial farms” is invalid, to the extent that the aforecited agro-industrial activities are made to be covered by the agrarian reform program of the State. There is simply no reason to include livestock and poultry lands in the coverage of agrarian reform (Luz Farms v. Sec. of the DAR, 192 SCRA 51). Art. 9, Determination of land value. — For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (2 1/2) times the average harvest of three (3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. ‘The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortization. In case of default, the amortization due shall be paid by the farmers’ cooperative in which the defaulting tenant- farmer is a member, with the cooperative having a right of recourse against him. ‘The government shall guarantee such amortization with shares of stock in government-owned and government- controlled corporations. NOTES AND COMMENTS 1. Determination of just compensation ‘The Supreme Court declared constitutional the valuation and mode of compensation provided for in Sec. 18 of R.A. 6657. Titles to all expropriated properties shall be transferred to the State only upon full payment of compensation to their respective owners. Rights acquired by tenant-farmers by virtue of PD. 27 are retained and recognized. However, landowners who failed to exercise their Art ‘THE LABOR CODE OF THE PHILIPPINES a ‘Emancipation of Tenants rights of retention under P.D. 27 ean enjoy such rights under R.A. 6657 after fulfilling the conditions prescribed therein (Association of ‘Small Landowners of the Philippines, Inc. v. Secretary of Agrarian Reform, G.R. No. 78742, 14 July 1989; Acuna v. Arroyo, G.R. No. 79310; Pabico v. Hon. Juico, G.R. No. 79744; and Manaay v. Hon. Juice, GR. No. 7977, 14 July 1989). In determining just compensation, the following factors shall be taken into consideration: a) the cost of acquisition of the land; b) its nature, actual use and income; ©) the sworn valuation by the owner; 4) the tax declaration; ©) the assessment made by government assessors; the social and economic benefits contributed by the farmers, farm workers and by the government; and 2) non-payment of taxes and loans (Sec. 17, K.A. 6657). 2. Valuation and mode of compensation The Land Bank of the Philippines is mandated by law to compensate the landowner in such amount as may be agreed upon among the landowner, the Department of Agrarian Reform and the Land Bank of the Philippines. In case of disagreement, the Secretary of Agrarian Reform shalll determine the just compensation. Ifany one of them disagrees, he may bring the matter to the Special Agrarian Court for the final determination of just compensation which is judicial in nature. The Supreme Court shall designate at least one (Q) branch of the Regional Trial Court (RTC) within each province to act as Special Agrarian Court (Secs. 18 and 66, R.A. 6657). ‘The compensation shall be paid in the following manner, at the option of the landowner: a) Cash payment; b) _ Shares of stocks in government-owned or controlled corporations, Land Bank of the Philippines preferred shares, physical assets or other qualified investments; ©) Tax credit which can be used against any tax liability; andcy LABOR STANDARDS AND SOCIAL LEGISLATION Arts, 10-11 With Notes and Comments 4) Land Bank of the Philippines bonds (Sec. 18, R.A. 6657). Art. 10, Conditions of Ownership. — No title to the land acquired by the tenant-farmer under Presidential Decree ‘No. 27 shalll be actually issued to him unless and until he has become a full-pledged member of a duly recognized farmers’ cooperative. Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government in accordance with the provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing laws and regulations. Art. 11, Implementing agency. — The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this Chapter. NOTES AND COMMENTS 4. Implementing agency; jurisdiction ‘The Department of Agrarian Reform has the power to issue rules and regulations, whether substantive or procedural to carry out the objects and purposes of the Comprehensive Agrarian Reform Law of 1988 (R.A. 6657). It has exclusive original jurisdiction over all matters involving the implementation of agrarian reform, except the following: a) Those falling under the exclusive jurisdiction of the Department of Agriculture and the Department of Environ- ment and Natural Resources; 1b) _ Petitions for the determination of just compensation to be paid to the landowners; and ©) Prosecution of all criminal offenses under R.A. 6657, Letters (b) and (c) are cognizable by the Regional Trial Court (acting as special agrarian court). Thus, the law delimits the jurisdiction of the regional trial court in agrarian cases only to these ‘two instances (Sees. 50, 56, and 57, R.A. 6657; Quismundo v. C.A., 201 SCRA 609). ‘Arts. 10-11 ‘THE LABOR CODE OF THE PHILIPPINES. eo ‘Emancipation of Tenants In Morta, Sr. v. Occidental, the Supreme Court enumerates the jurisdiction of the Department of Agrarian Reform, to wit: a) adjudication of all matters involving implementation of agrarian reform; b) resolution of agrarian conflicts and land tenure related problems; and c) approval and disapproval of the conversion, restructuring or readjustment of agricultural lands into residential, commercial, industrial, and other non-agricultural uses (G.R. No. 123417, 10 June 1999) 2. Quasi-judicial powers of DAR ‘The Department of Agrarian Reform through its Adjudication Board has the following powers: a) To summon witnesses, administer oaths, take testimonies, require submission of reports; b) To compel the production of books and documents and answers to interrogatories; ©) To issue subpoena ad testificandum and subpoena duces tecum; 4) Toenforceits writs through sheriffs or duly deputized officers; and ©) To punish direct and indirect contempts (Sec. 50, RA. 6657). For DARAB to have jurisdiction over a case, there must exist a tenancy relationship between the parties. In order for a tenancy agreement to take hold over a dispute, it would be essential to establish all its indispensable elements, to wit: (1) that the parties are the landowner and the tenant or agricultural lessee; (2) that the subject matter of the relationship is an agricultural land; (3) that there is consent between the parties to the relationship; (4) that the purpose of the relationship is to bring about agricultural production; (6) that there is personal cultivation on the part of the tenant or agricultural lessee; and (6) that the harvest is shared between the landowner and the tenant or agricultural lessee (Morta, Sr. v. Occidental, G.R. No. 123317, 10 June 1999). 3. DAR not governed by technical rules ‘The Department of Agrarian Reform is not governed by the technical rules of procedure and evidence in deciding all cases, disputes or controversies in order to administer expeditious“ LABOR STANDARDS AND SOCIAL LEGISLATION Arts, 10-11 ‘With Notes and Comments “agrarian justice.” However, in doing so, the DAR is mandated to employ all reasonable means to ascertain the facts of every case in accordance with justice, and equity and merits of the case. Also, it shall adopt a uniform rule or procedure to achieve a just, expeditious and inexpensive determination of every action or proceeding before it (See. 50, R.A. 6657). BOOK ONE PRE-EMPLOYMENT ‘Art, 12, Statement of Objectives. — It is the policy of the State: a) To promote and maintain a state of full employ- ment through improved manpower training, allocation, and utilization; b) To protect every citizen desiring to work locally or overseas by securing for him the best possible terms and conditions of employment; ¢) To facilitate a free choice of available employment by persons seeking work in conformity with the national interest; a) To facilitate and regulate the movement of workers in conformity with the national interest; e) Toregulate the employment of aliens, including the establishment of a registration and/or work permit system; ) To strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers, locally and overseas, to serve national development objectives; g) To insure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippines abroad. NOTES AND COMMENTS: 4. Book One on pre-employment ‘There were three (3) basic laws that regulated recruitment and placement of workers and employment agencies before the advent of the Labor Code, to wit: Recruitment for Overseas Employment Act 6