Labor Law an Socia Legislatio

Syllabus-based eReviewer for the 2022 Bar

Compiled by RGL
Labor Law and Social Legislation Reviewer for the 2022 Bar

Tabl of Content Legal basis under the 1987 Constitution, Civil Code, 1. the principle of shared responsibility between workers and
and Labor Code employers and
General Principles 2 2. the preferential use of voluntary modes in settling
A Basic policy on labor disputes, including conciliation, and shall enforce their
Recruitment and Placement of Workers 4 mutual compliance therewith to foster industrial peace.
SEC 3 ART XIII. The State shall
The State shall regulate the relations between workers and employers,
Labor Standards 9 1. a ord full protection to labor, local and overseas, organized recognizing
and unorganized, and
Social Welfare Legislation 28 1. the right of labor to its just share in the fruits of production
2. promote full employment and equality of employment
and
opportunities for all.
Labor Relations 36 2. the right of enterprises to reasonable returns to investments,
Collective Rights of Workers. — It shall guarantee the rights of all and to expansion and growth.
workers to
Termination of Employment 52
1) Security of tenure
1. self-organization,
Management Prerogative 74 ART 294. Security of Tenure. — In cases of regular employment, the
2. collective bargaining and negotiations, and
employer shall not terminate the services of an employee except for a
3. peaceful concerted activities, including the right to strike in just cause or when authorized by this Title. An employee who is
Jurisdiction and Reliefs 78 accordance with law. unjustly dismissed from work shall be entitled to

Individual Rights of Workers. — They shall be entitled to a) reinstatement without loss of seniority rights and other
General Principles
privileges and
1. security of tenure,
I PD 442, as amended b) his full backwages, inclusive of allowances, and
2. humane conditions of work, and a
Omnibus Rules implementing the Labor Code c) his other bene ts or their monetary equivalent computed
3. living wage.
from the time his compensation was withheld from him up
Basic policy on labor Right to Participate. — They shall also participate in policy and to the time of his actual reinstatement.
Construction in favor of labor decision-making processes a ecting their rights and bene ts as may
be provided by law. 2) Equal work opportunities
Burden of proof and quantum of evidence in labor cases a) The State shall promote full employment and equality of
The State shall promote
employment opportunities for all.

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b) A manifestation of this is the enactment of RA 10911 or including its implementing rules and regulations, shall be resolved in In claims for payment of salary di erential, service incentive
the Anti-Age Discrimination in Employment Act. favor of labor. leave, holiday pay and 13th month pay, the burden rests on the
The law however accepts of exceptions employer to prove payment. This standard follows the basic rule
a) In Peñaflor v. Outdoor Clothing 2010, this principle has been that in all illegal dismissal cases the burden rests on the defendant to
i) Age is a bona fide occupational
extended to cover doubts in the evidence presented by the prove payment rather than on the plainti to prove non-payment.
qualification reasonably necessary in the
employer and the employee.
normal operation of a particular business or On the other hand, for overtime pay, premium pays for holidays
where the di erentiation is based on reasonable b) If doubt exists between the evidence presented by the and rest days, the burden is shifted on the employee, as these
factors other than age; employer and the employee, the scales of justice must be tilted monetary claims are not incurred in the normal course of business.
in favor of the latter. (Dreamland Hotel Resort v. Johnson It is thus incumbent upon the employee to rst prove that he
ii) The intent is to observe the terms of a bona fide
2014) actually rendered service in excess of the regular eight working hours
seniority system that is not intended to evade the
a day, and that he in fact worked on holidays and rest days.
purpose of this Act; c) The rule is that where the law speaks in clear and categorical
language, there is no room for interpretation; there is only
iii) The intent is to observe the terms of a bona fide
room for application. Only when the law is ambiguous or of
employee retirement or a voluntary early
doubtful meaning may the court interpret or construe its true Remoticado v. Typical
retirement plan consistent with the purpose of 2018 re Illegal Dismissal
intent. (Leoncio v. MST Marine Services 2017) Construction Trading
this Act; or
There can be no case for illegal termination of employment when
iv) The action is duly certi ed by the SOLE.
Burden of proof and quantum of there was no termination by the employer. While, in illegal
C
3) Right to self-organization and collective evidence in labor cases termination cases, the burden is upon the employer to show just
bargaining cause for termination of employment, such a burden arises only if
the complaining employee has shown, by substantial evidence,
a) An employee can join a union on the rst day of
Maula v. Ximex Delivery Express 2017 the fact of termination by the employer
employment.
b) Collective bargaining is a contract between workers and In administrative and quasi-judicial proceedings, the quantum of
employers on terms and conditions of employment over evidence required is substantial evidence or "such relevant
2012 re Clear and
and above those mandated by law. evidence as a reasonable mind might accept as adequate to support a Duty Free Philippines v. Tria
Convincing Evidence
conclusion." Thus, unsubstantiated suspicions, accusations, and
conclusions of the employer do not provide legal justi cation for In illegal dismissal cases, the employer is burdened to prove just
B Construction in favor of labor
dismissing the employee. cause for terminating the employment of its employee with clear
and convincing evidence. This principle is designed to give esh
ART 4. Construction in Favor of Labor. — All doubts in the
and blood to the guaranty of security of tenure granted by the
implementation and interpretation of the provisions of this Code,
Minsola v. New City Builders, Inc. 2018 re Money Claims Constitution to employees under the Labor Code.

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automatically acknowledged and observed without need for any Contracts regulating relations between capital and labor are not
enabling legislation. However, to declare that the constitutional merely contractual, and said labor contracts are impressed with
Legal basis under the 1987 Constitution,
D provisions are enough to guarantee the full exercise of the rights public interest, and must yield to the common good.
Civil Code, and Labor Code embodied therein, and the realization of ideals therein expressed,
The relations between capital and labor are not merely contractual
1. 1987 Constitution would be impractical, if not unrealistic.
as provided in Article 1700 of the Civil Code. By statutory
Provides limitations in the enactment of Labor Laws. Subsequent legislation is still needed to de ne the parameters of declaration, labor contracts are impressed with public interest
these guaranteed rights to ensure the protection and promotion, not and, therefore, must yield to the common good. Labor contracts are
a) Non-impairment Clause. Sec 10 Art III. No law
only the rights of the labor sector, but of the employers' as well. subject to special laws on wages, working conditions, hours of labor,
impairing the obligation of contracts shall be passed.
and similar subjects. In other words, labor contracts are subject to
b) Equal Protection Clause. Sec 1 Art III. No person shall 2. Civil Code the police power of the State. The DO was issued to grant bus
be deprived of life, liberty, or property without due drivers and conductors minimum wages and social welfare bene ts.
Article 1700. The relations between capital and labor are not
process of law, nor shall any person be denied the equal
merely contractual. They are so impressed with public interest that
protection of the laws. 3. Labor Code
labor contracts must yield to the common good. Therefore, such
c) Prohibition Against Involuntary Servitude. Sec 18(2) contracts are subject to the special laws on labor unions, collective a) PD 442, as amended;
Art III. No involuntary servitude in any form shall exist bargaining, strikes and lockouts, closed shop, wages, working b) Omnibus Rules implementing the Labor Code.
except as a punishment for a crime whereof the party shall conditions, hours of labor and similar subjects.
have been duly convicted.
Recruitment and Placement of
d) Due Process Clause. Sec 1 Art III. No person shall be
Article 1701. Neither capital nor labor shall act oppressively against II
deprived of life, liberty, or property without due process
the other, or impair the interest or convenience of the public. Workers
(Principle of Non-oppression)
of law, nor shall any person be denied the equal protection
Recruitment and Placement
of the laws.
Article 1702. In case of doubt, all labor legislation and all labor
Constitutional provisions on the protection of labor are NOT Illegal recruitment and other prohibited activities
contracts shall be construed in favor of the safety and decent living
SELF-EXECUTING, and are mere guidelines that need for the laborer. Elements
enabling laws. They are NOT judicially enforceable.
Types of illegal recruitment

The Provincial Bus Operators Association of Illegal recruitment vs. estafa

Council of Teachers & Staff of Colleges & 2018 En Banc 2018 En Banc
Universities of the Phils. v. Sec. of Education Caguioa, J the Philippines et al v. DOLE, et al.
Liability of local recruitment agency and foreign
The constitutional mandates of protection to labor and security of A statute passed to protect labor is a "legitimate exercise of police employer
tenure may be deemed as self-executing in the sense that these are power, although it incidentally destroys existing contract rights."

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Solidary liability referring, contract services, promising or advertising for

1) To charge or accept directly or indirectly any amount
employment abroad, whether for profit or not, when
greater than that speci ed in the schedule of allowable
Theory of imputed knowledge undertaken by a non-licensee or non-holder of authority
fees prescribed by the SOLE, or to make a worker pay or
contemplated under Article 13 (f) of the Labor Code:
Entities prohibited from recruiting acknowledge any amount greater than that actually received by
Provided that any such non-licensee or non-holder who, in any him as a loan or advance;
Cancellation of license or authority
manner, o ers or promises for a fee employment abroad to two or
2) To furnish or publish any false notice or information or
Termination of contract of migrant worker without more persons shall be deemed so engaged. It shall likewise include
document in relation to recruitment or employment;
the prohibited practices, whether committed by any person,
just or valid cause 3) To give any false notice, testimony, information or
whether a non-licensee, non-holder, licensee or holder of authority.
Ban on direct hiring, exceptions document or commit any act of misrepresentation for
Meaning of License and Authority
the purpose of securing a license or authority under the
Employment of non-resident aliens Authority refers to a document issued by the SOLE authorizing the Labor Code, or for the purpose of documenting hired workers
o cers, personnel, agents or representatives of a licensed with the POEA, which include the act of reprocessing workers
Recruitment and Placement recruitment/manning agency to conduct recruitment and through a job order that pertains to non-existent work, work
A placement activities in a place stated in the license or in a speci ed di erent from the actual overseas work, or work with a
Migrant Workers and Overseas Filipinos Act of 1995
place. di erent employer whether registered or not with the POEA;
Recruitment and placement refers to any act of canvassing, License refers to the document issued by the SOLE authorizing a 4) To induce or attempt to induce a worker already
enlisting, contracting, transporting, utilizing, hiring, or procuring person, partnership or corporation to operate a private employed to quit his employment in order to o er him
workers, and includes referrals, contract services, promising or recruitment/manning agency. another unless the transfer is designed to liberate a worker
advertising for employment, locally or abroad, whether for pro t from oppressive terms and conditions of employment;
Any recruitment activities, including the prohibited practices, to
or not:
be undertaken by non-licensees or non-holders of authority shall 5) To in uence or attempt to in uence any person or entity
Provided, That any person or entity which, in any manner, be deemed illegal. not to employ any worker who has not applied for
1. o ers or promises for a fee, employment through his agency or who has formed, joined or
The characteristics of a recruitment license are:
supported, or has contacted or is supported by any union or
2. employment to two or more persons 1) It is place-speci c; workers' organization;
shall be deemed engaged in recruitment and placement. 2) It is person-speci c; and 6) To engage in the recruitment or placement of workers in jobs
3) It is prospective. harmful to public health or morality or to the dignity of
Illegal recruitment and other prohibited the Republic of the Philippines;
1 Prohibited Practices
activities
7) To obstruct or attempt to obstruct inspection by the
It shall be unlawful for any individual, entity, licensee, or holder of
Illegal recruitment is any act of canvassing, enlisting, contracting, SOLE or by his duly authorized representative;
authority:
transporting, utilizing, hiring, or procuring workers and includes

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8) To fail to submit reports on the status of employment, 15) Excessive Interest. To arrange, facilitate or grant a loan to an b) Gave distinct impression that he had power or ability
placement vacancies, remittance of foreign exchange earnings, OFW with interest >8% per annum, which will be used for to deploy workers;
separation from jobs, departures and such other matters or payment of legal and allowable placement fees and make the
c) Complainants were convinced to part with their
information as may be required by the SOLE; OFW issue, either personally or through a guarantor or
money by such impression;1
accommodation party, postdated checks in relation to the said
9) To substitute or alter to the prejudice of the worker,
loan; d) There must be at least a promise or o er of
employment contracts approved and veri ed by the
employment.2
Department of Labor and Employment from the time of 16) Specifying a Loan Entity. To impose a compulsory and
actual signing thereof by the parties up to and including the exclusive arrangement whereby an OFW is required to avail a 2) Recruitment and Placement; Presumption. Where a fee is
period of the expiration of the same without the approval of loan only from speci cally designated entities; collected in consideration of a promise or o er of employment
the Department of Labor and Employment; to two or more prospective workers.
17) Non-renegotiation of Loan. To refuse to condone a loan
10) For an o cer or agent of a recruitment or placement incurred by an OFW after his employment contract has been 3) Additional elements
agency to become an o cer or member of the Board of prematurely terminated not through his fault. a) For syndicated. — committed by three or more
any corporation engaged in travel agency or to be engaged persons conspiring and confederating with one
18) Specifying a Medical Entity. Whereby an OFW is required
directly or indirectly in the management of a travel agency; another. (People v. Hashim 2012)
to undergo health examinations only from speci c clinics,
11) To withhold or deny travel documents from applicant entities, except when the cost is shouldered by the principal; b) For large scale. — committed against three or more
workers before departure for monetary or nancial persons, individually or as a group. (People v.
19) Specifying a Training Entity. Whereby an OFW is
considerations, or for any other reasons, other than those Tuguinay 2012)
required to undergo trainings, seminars only from speci c
authorized under the Labor Code and its implementing Rules
entities, except when cost is shouldered by the principal; b Types of illegal recruitment
and Regulations;
20) Violation of Suspension. To engage in any kind of
12) Failure to actually deploy a contracted worker without valid There are at least four kinds of illegal recruitment under the law.
recruitment activity including the processing of pending
reason as determined by the DOLE; 1) One is simple illegal recruitment committed by a licensee or
workers’ applications; and
13) Failure to reimburse expenses incurred by the worker in holder of authority.
21) Collection of Insurance Premium. To pass on the employer
connection with his documentation and processing for 2) Any person “who is neither a licensee nor a holder of
through deduction of his wages the cost or premium of
purposes of deployment, in cases where the deployment does authority” commits the second type of illegal recruitment.
insurances under the compulsory workers insurance coverage.
not actually take place without the worker's fault; and
a Elements 3) Large scale or Qualified. — The third type of illegal
14) To allow a non-Filipino citizen to head or manage a recruitment refers to o enders who either commit the o ense
licensed recruitment/manning agency. 1) Essential Element. Presupposes deceit or alone or with another person against three or more persons
misrepresentation. individually or as a group.
Other Prohibited Acts
a) Without being duly authorized; 1
People v. Goce, GR No 113161, August 29, 1995
2
Darvin v. CA and People, GR No 125044, July 13, 1998

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4) Syndicated —A syndicate or a group of three or more 1) The liability of the principal/employer and the 1) Persons convicted of
persons conspiring and confederating with one another in recruitment/placement agency for any and all claims under
a) illegal recruitment,
carrying out the act circumscribed by the law commits the this section shall be joint and several.
fourth type of illegal recruitment by the law. (People v. b) tra cking in persons,
2) Such liabilities shall continue during the entire period or
Sadiosa) c) violation of child labor laws, or
duration of the employment contract and shall not be
Under RA 8042, the third and fourth types herein are affected by any substitution, amendment or d) crimes involving moral turpitude;
considered Illegal Recruitment as Economic Sabotage. modification made locally or in a foreign country of the said
2) Agencies whose licenses have previously been cancelled or
contract. (Sec 10, RA 8042)
c Illegal recruitment vs. estafa revoked;
3) In Sto. Tomas, et al. v. Salac 2012 En Banc, however, the Court
1) Estafa by means of false pretense. A worker who su ers 3) Cooperatives;
clari ed that liability may be imputed on the corporate o cers
pecuniary damage as a result of a previous or simultaneous 4) Law enforcers and any o cial or employee of the DOLE.
or directors only if it is proved that they are personally
false pretense resorted to by a nonlicensee or nonholder of
involved in the wrongful acts of the company. 5) Those against whom probable cause or prima facie nding of
authority, may complain for estafa aside from illegal
recruitment. 4) The liability of corporate directors and o cers is not guilt for illegal recruitment or other related cases exist
automatic. To make them jointly and solidarily liable with particularly to owners or directors of agencies who have
2) Illegal recruitment and estafa cases may be led simultaneously committed such violations.
their company, there must be a nding that they were remiss in
or separately. The ling of charges for illegal recruitment does
directing the a airs of that company, such as sponsoring or 6) Sole proprietors of duly licensed agencies are prohibited from
not bar the ling of estafa, and vice versa. An accused’s
tolerating the conduct of illegal activities. securing another license to engage in recruitment and
acquittal in the illegal recruitment case does not prove that she
is not guilty of estafa. b Theory of imputed knowledge placement.

Double jeopardy will not set in because illegal recruitment is 7) Sole proprietors, partnerships or corporations licensed to
Sunace International Management Services, Inc. v. NLRC engage in private recruitment and placement for local
malum prohibitum, in which there is no necessity to prove
criminal intent, whereas estafa is malum in se, in the employment are prohibited from engaging in job contracting
The theory of imputed knowledge ascribes the knowledge of the
prosecution of which, proof of criminal intent is necessary. (Sy or subcontracting activities. (Sec 5, DO No 141-14)
agent TO the principal, not the other way around. The
v. People 2010) knowledge of the principal-foreign employer cannot, therefore, be For Overseas Employment

Liability of local recruitment agency and imputed to its agent. 1) Travel agencies and sales agencies of airline companies;
2
foreign employer 2) O cers or Board members of any corporation or partners in a
partnership engaged in the business of a travel agency;
a Solidary liability 3 Entities prohibited from recruiting
3) Corporations and partnerships, where any of its o cers,
The following are disquali ed from recruitment and placement for Board members or partners is also (b);
domestic employment:

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(POLO), or Head of Mission in the absence of the

4) Individuals, partners, o cers or directors of an insurance a. Pre-termination of employment contract with approval of
POLO;
company who make, propose or provide an insurance contract employer;
under the compulsory insurance coverage for agency-hired b) Professionals and skilled workers with duly executed
b. Discharge for a valid cause;
OFWs; veri ed/authenticated contracts containing terms and
c. Su ered injury or illness; or conditions over and above the standards set by the POEA.
5) Sole proprietors, partners or o cers and board members with
d. An OFW has died. The number of professionals and skilled OFWs hired for
derogatory records.
the rst time by the employer shall not exceed ve (5). For
6) Any o cial or employee of DOLE, POEA, OWWA, DFA, the purpose of determining the number, workers hired as
Skippers United Pacific Inc. v. Doza 2012
DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBO, PNP, a group shall be counted as one; or
CAAP, international airport authorities, and other GAs The OFW can pre terminate his employment contract which is akin
c) Workers hired by a relative/family member who is a
directly involved in the implementation of RA No 8042 to resignation. However, if the employer failed to submit substantial
permanent resident of the host country, except domestic
and/or any of his relatives within the 4th civil degree. evidence that indeed the OFW voluntarily pre-terminated his
workers (live-in caregiver/care worker or household service
contract; then the OFW is deemed illegally dismissed.
4 Cancellation of license or authority workers).
The best proof of pre-termination is a written resignation.
The DOLE Secretary and POEA Administrator have concurrent Their hiring nonetheless must be processed through the POEA by
jurisdiction to suspend or cancel a license. submitting:

6 Ban on direct hiring, exceptions 1) The employment contract;

Termination of contract of migrant worker
5 2) Valid passport;
without just or valid cause see POEA Memorandum Circular No. 08, S. 2018 Implementing
Guidelines on the Registration of Direct-Hire OFWs. 3) Employment visa or work permit, or equivalent;
1) In case of termination of overseas employment without just,
valid or authorized cause as de ned by law or contract, or any No employer may hire a Filipino worker for overseas employment 4) Certi cate of medical tness; and
unauthorized deductions from the migrant worker's salary, the except through the Boards and entities authorized by the DOLE.
5) Certi cate of attendance to the required employment
worker shall be entitled to the full reimbursement of his The following, however, are exempted from the ban
orientation/ brie ng.
placement fee and the deductions made with interest at twelve 1) members of the diplomatic corps;
percent (12%) per annum, plus his salaries for the unexpired
2) international organizations; B Employment of non-resident aliens
portion of his employment contract or for three (3) months
for every year of the unexpired term, whichever is less3. (Sec 10) 3) Heads of state and government o cials with the rank of at 1) Only non-resident aliens are required to secure employment
2) Termination of employment of OFWs takes place in the least deputy minister; permit. For resident aliens and immigrants, what is required is
following instances: 4) Other employers as may be allowed by the POEA, such as an Alien Employment Registration Certi cate (AERC).

a) Those provided in 1, 2, and 3 above who bear a lesser 2) The latest department order issued about employment of
rank, if endorsed by the Philippine Overseas Labor O ce foreign workers is DO No 146-15.
3
Declared unconstitutional.

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universities and colleges as visiting, exchange or

3) A foreign national working in PH without the requisite f) Contractual service supplier who is a manager,
adjunct professors provided that the exemption is
employment permit may le with the NLRC an illegal executive or specialist and an employee of a foreign
on a reciprocal basis;
dismissal complaint. The dismissal may be declared invalid and service supplier which has no commercial presence in
she may be recognized as an employee but she cannot be e) Permanent resident foreign nationals and the Philippines:
awarded claim for monetary bene ts. To do so will probationary or temporary resident visa holders;
i. who enters the Philippines temporarily to
sanction the violation of PH labor laws requiring aliens to secure
f) Refugees and Stateless Persons recognized by DOJ; supply a service pursuant to a contract;
work permits before their employment.4
and
ii. must possess the appropriate educational and
4) Alien Employment Permit. — Revised Rules for Issuance
g) All foreign nationals granted exemption by law. professional quali cations; and
of Employment Permits to Foreign Nationals, DOLE D.O.
No. 186, S. 2017 Exclusion. — The following categories of foreign nationals iii. must be employed by the foreign service
are excluded from securing an employment permit: supplier for at least one year prior to the
Coverage. — All foreign nationals who intend to engage in
supply of service in the Philippines.
gainful employment in the Philippines shall apply for AEP. a) Members of the governing board with voting
rights only and do not intervene in the management g) Representative of the Foreign Principal/Employer
Exemption. — The following categories of foreign nationals
of the corporation or in the day to day operation of assigned in the O ce of Licensed Manning Agency
are exempt from securing an employment permit:
the enterprise. (OLMA).
a) All members of the diplomatic service and
b) President and Treasurer, who are part-owner of the 5) Working Permits & Visas. — See DOLE, DOJ, BI and BIR
foreign government o cials subject to reciprocity;
company. Joint Guidelines No. 01, S. 2019
b) O cers and sta of international organizations of
c) Those providing consultancy services who do not
which the Philippine government is a member, and
have employers in the Philippines. III Labor Standards
their legitimate spouses desiring to work in PH;
d) Intra-corporate transferee
c) Owners and representatives of foreign principals Employer-employee relationship
whose companies are accredited by the POEA, who i. who is a manager, executive or specialist
in accordance with Trade Agreements and Test to determine existence
come to the Philippines
i. for a limited period and ii. an employee of the foreign service supplier Employee vs. independent contractor
for at least one (1) year continuous
ii. solely for the purpose of interviewing Conditions of employment
employment.
Filipino applicants for employment abroad;
e) All other intra-corporate transferees not within these Covered employees/workers
d) Foreign nationals who come to the Philippines to
categories as de ned above are required to secure an Hours of work
teach, present and/or conduct research studies in
AEP prior to their employment in the Philippines.
Normal hours of work; hours worked
4
WPP Marketing, et al. v. Galera 2010

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Meal periods Parental leave for solo parents Safe Spaces Act

Night-shift di erential Leave bene ts for women workers under R.A. No.
1 Employer-employee relationship
Overtime work 9710 and R.A. No. 9262
1) It is in personam and involves the rendition of personal
Compressed work week, exible work Special groups of employees service by the employee, and partakes of master and servant
arrangement alternative work arrangements, Women relationship.

telecommuting program 2) Its existence is a question of law and fact. In the 2016
Discrimination
Century Properties case, SC said that the employment status of
Rest periods Stipulation against marriage a person is defined and prescribed by law and not by what
the parties say it should be. It can not be negated by expressly
Holidays Prohibited acts
repudiating it in a contract.
Service charges Minors 3) In the 2011 Tongko case, SC aptly described the primary and
13th month pay Child labor vs. working child controlling test in determining the existence of an ER-EE
relationship as the control over the performance of the
Wages Allowed working hours and industries of a task of the one providing the service.
Payment of wages working child
2 Test to determine existence
Prohibitions regarding wages Prohibited acts
The Four-Fold Test
Facilities vs. supplements Kasambahay
1) Selection and Engagement of employees;
Minimum wage Homeworkers
2) Payment of Wages;
Wage distortion Night workers
3) Power of Dismissal;
Non-diminution of bene ts Persons with Disabilities 4) ⭐ Power of Control over employee’s conduct and over the
Leaves Discrimination means, manner and method by which the work is to be
accomplished.
Service incentive leave Incentives for employers
Economic Reality or the Two-Tiered Test
Expanded Maternity leave Sexual Harassment in the work environment
This test is used when there is no existing employment
Paternity leave Anti-Sexual Harassment Act contract.

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1) The putative employer’s power to control the employee with of the sh catch would not be su cient to negate the EER existing
Thus, the fact that petitioner continued to work for other hospitals
respect to the manner and methods by which the work is to be between them.
strengthens the proposition that petitioner was not wholly
accomplished; and
Petitioner wielded the power of dismissal over respondents when he dependent on CDMC.
2) The underlying economic realities of the activity or dismissed them after they refused to sign the joint shing venture
Petitioner likewise admitted that she receives in full her 4% share in
relationship, i.e. employee’s economic dependence on the agreement.
the Clinical Section of the hospital regardless of the number of
employer.
hours she worked therein. The rule is that
Depends upon the circumstances of the whole economic activity:
a. where a person who works for another
Reyes v. Doctolero 2017
1) The broad extent to which the services performed are an
b. performs his job more or less at his own pleasure,
integral part of the employer’s business. In Mamaril v. The Boy Scout of the Philippines, there was no EER
between BSP and the security guards assigned to it by an agency c. in the manner he sees t,
2) The limited extent of the worker’s investment in the
pursuant to a Guard Service Contract. In the absence of such d. not subject to de nite hours or conditions of work, and
equipment and facilities.
relationship, vicarious liability under Article 2180 of the Civil Code
3) The nature and high degree of control by the employer; e. is compensated according to the result of his e orts and not
cannot apply as against BSP. Similarly, we nd no EER between
the amount thereof,
4) The worker’s limited opportunities for pro t and growth; MCS and respondent guards. The guards were merely assigned by
Grandeur to secure MCS' premises pursuant to their Contract of no employer-employee relationship exists.
5) The small amount of initiative, skill, judgment or foresight
Guard Services. Thus, MCS cannot be held vicariously liable for
required for the success of the claimed independent enterprise;
damages caused by these guards' acts or omissions.
6) The high degree of permanency and duration of relationship; Fernandez v. Kalookan Slaughterhouse 2019 Caguioa, J
7) The degree of dependency of the worker upon the employer
WON Fernandez was an employee of Kalookan Slaughterhouse.
for his continued employment. Loreche-Amit v. Cagayan De Oro Medical Center 2019
YES. The Court in Masonic Contractor, Inc. v. Madjos ruled
ECONOMIC REALITY TEST. The benchmark of economic that the fact that the company provided identification cards
Lu v. Enopia 2017
reality is the economic dependence of the worker on his employer. and uniforms and the vague a davit of the purported employer
The fact that petitioner had registered the respondents with SSS is WON Loreche-Amit was an employee of CDMC. were su cient evidence to prove the existence of EER.
proof that they were indeed his employees. The coverage of the
NO. CDMC does not exercise the power of control over petitioner. Kalookan Slaughterhouse, through Tablit, was the one who engaged
Social Security Law is predicated on the existence of an EER.
petitioner, paid for his salaries, and in e ect had the power to
Petitioner was working for two other hospitals aside from CDMC,
It was established that petitioner exercised control over respondents. dismiss him. Further, Kalookan Slaughterhouse exercised control
not to mention those other hospitals which she caters to when her
The control test merely calls for the existence of the right to over petitioner's conduct through De Guzman. To the mind of the
services are needed. Such fact evinces that petitioner controls her
control, and not necessarily the exercise thereof. Court, Kalookan Slaughterhouse was petitioner's employer and it
working hours. On this note, relevant is the economic reality test.
The payment of respondents' wages based on the percentage share exercised its rights as an employer through Tablit and De Guzman,

By RGL 11 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

who were its employees. Liability Subsidiary Subsidiary 6) Persons in the personal service of another — Already
provided with living quarters; nature of work; plus they are
Personality of EE Natural Any
not employed in a business undertaking.
2018 re Act of subordinate 7) Workers paid by results whose time and performance are
American Power Conversion Corp v. Lim
Quasi-Contract an act of Master
✘ ✘
NOT supervised — Piece rate or job or task based.
We have this unique situation where respondent was hired directly 2 Hours of work
by APCC of the USA, but was being paid his remuneration by a
separate entity — APCP BV of the Philippines, and is supervised
A Conditions of employment 1) All hours are hours worked which the employee is required
and controlled by APCS from Singapore and APC Japan - all in to give his employer, regardless of whether or not such hours
furtherance of APCC's objective of doing business here unfettered 1 Covered employees/workers are spent in productive labor or involve physical or mental
by government regulation. For all legal purposes, APCC is exertion.
Employees NOT covered
respondent's employer. 2) An employee need not leave the premises of the workplace
1) Government employees
in order that his rest period shall not be counted, it being
2) Managerial EEs — Meet the following conditions: enough that he stops working, may rest completely and may
3 Employee vs. independent contractor leave his work place, to go elsewhere, whether within or
a) Formulate policies;
outside the premises of his work place.
b) Execute management policies;
Employer Principal 3) If the work performed was necessary, or it bene ted the
c) Impose disciplinary actions employer, or the employee could not abandon his work at
Employee Contractor
Reason for exclusion Not usually employed by the hour, but the end of his normal working hours because he had no
Law LC CC replacement, all time spent for such work shall be considered
by their special training, experience or knowledge.
Tribunal LA, NLRC Regular Courts as hours worked, if the work was with the knowledge of his
3) Field personnel — If they:
employer or immediate supervisor.
Selection ER PR a) Regularly perform duties away from the principal or
4) The time during which an employee is inactive by reason of
branch o ce or place of business of employer; and
Discipline ✔ ✘ interruptions in his work beyond his control shall be
b) Whose actual hours of work in the eld cannot be considered working time either
Wages ✔ ✔ determined with reasonable certainty.
a) if the imminence of the resumption of work requires the
4) Members of the family of employer who are dependent employee's presence at the place of work or
Control over Means ✔ ✘
upon him for support — Employer has already taken care of
b) if the interval is too brief to be utilized e ectively and
Control over Results ✔ ✔ the employee’s sustenance.
gainfully in the employee's own interest.
5) Domestic helpers — covered in Kasambahay Law;

By RGL 12 of 92
 Labor Law and Social Legislation Reviewer for the 2022 Bar

a Normal hours of work; hours worked b Meal periods c) There is urgent work to be performed on machineries
in order to avoid serious loss or damage to the employer;
The normal hours of work of any employee shall not exceed eight (8) At least one-hour of non-compensable meal period.
hours a day. It includes d) Work is necessary to prevent loss or damage of
May be shortened (Book III Rule 1 Sec 7) to at most, 20 minutes
perishable goods;
1) Hours worked under Art 84 provided:
e) Completion or continuation of work started before
a. All time during which EE is required to be on duty or to 1) Work is non-manual;
the 8th hour necessary to prevent serious obstruction
be at a prescribed workplace;
2) Establishment regularly operates not less than 16 hours a day; or prejudice to the business; and
b. All the time during which an EE is su ered or permitted
3) In cases of actual or impending emergencies or there is urgent f) Necessary to avail of favorable weather conditions.
to work;
work to be performed on machineries; and
Under Art 88 and jurisprudence, undertime is strictly not
2) Rest periods of short interval (5-20 minutes)
4) Work is necessary to prevent serious loss of perishable goods. o set by overtime.
3) Meal period of less than 20 minutes;
4) Reasonable time to withdraw wages from bank or ATM, or by
c Night-shift di erential Robina Farms Cebu v. Villa 2016
check. Refers to the additional compensation of ten percent (10%) of an Firstly, entitlement to overtime pay must rst be established by
Other hours of work employee’s regular wage for each hour of work performed between 10 proof that the overtime work was actually performed before the
p.m. and 6 a.m. employee may properly claim the bene t. The burden of proving
1) Children. — below 15: 20H/W, 4H/D, not allowed between
entitlement to overtime pay rests on the employee because the
8pm to 6am of next day; 1) 110% of Basic Hourly Rate;
bene t is not incurred in the normal course of business.
15-18: 40H/W, 8H/D, not allowed between 10pm to 6am the 2) Employees working between 10 PM - 6 AM of the next day;
And, secondly, the DTRs did not substantially prove the actual
next day. 3) NOT waivable, founded on public policy. performance of overtime work. Any employee could render
2) Domestic worker. — entitled daily to at least 8 hours d Overtime work overtime work only when there was a prior authorization therefor
aggregate rest per day. by the management. Without the prior authorization, therefore,
GR: No employee may be compelled to render OT against Villa could not validly claim having performed work beyond the
3) Health personnel. — in
his will; normal hours of work.
a. Cities and municipalities with at least 1M population; or
EXC: Art 89
b. Hospitals with at least 100 bed capacity,
a) Country is at war or there is a declared national or
Regular o ce hours for 8 hours a day, 5 days a week, except local emergency;
Compressed work week, exible work
where exigencies of service require such personnel to work on
e arrangement, alternative work arrangements,
b) OT is necessary to prevent loss of life or property or telecommuting program
the 6th day, in which case he is entitled to the 30% premium
in case of imminent danger to public safety due to
pay. see DOLE D.O. No. 182 s. 2017. 1) Normal workweek — 6 consecutive days, 48 hours per week;
calamities;

By RGL 13 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

The concept can be adjusted accordingly depending

2) Compressed — less than 6 days, but may not exceed 12 hours Employees working for 6 consecutive days are entitled to a rest
on the normal workweek of the company pursuant to
per day. It is an alternative arrangement whereby the normal day of at least 24 consecutive hours.
the provisions of Department Advisory No. 02, series
workweek is reduced to less than 6 days but the total number
of 2004, dated 2 December 2004. GR: Employer schedules employee’s rest day.
of normal work hours per week remains at 48. Thus, the
workweek may be compressed only up to 4 days. b) Reduction of Workdays refers to one where the EXC: Employee preference based on religious ground;
normal work days per week are reduced but should EE must make known his preference 7 days before
3) CWW results from an express voluntary agreement of
not last for more than six months. initial rest day.
majority of the covered employees or their duly authorized
representatives. c) Rotation of Workers refers to one where the EXC to the EXC:
employees are rotated or alternately provided work
4) A three-day work week is illegal. — Illegal compressed When it will cause serious obstruction or prejudice to
within the workweek.
workweek when work days were reduced from 6 to 3 days a the employer, employer shall schedule the rest day of
week, resulting to illegal reduction of work hours, as there was d) Forced Leave refers to one where the employees are employee’s choice at least 2 days in a month.
no adequate proof of losses. Financial losses must be shown required to go on leave for several days or weeks
GR: Employer cannot compel employee to work on a rest
before a company can validly opt to reduce the work utilizing their leave credits if there are any.
day.
hours of its employees. (Linton Commercial v. Hellera)
e) Broken-time schedule refers to one where the work
EXC: Under Art 92 and Book III Rule III Sec 6:
5) Waiving of OT in CWW is valid. D.O. No. 21 sanctions schedule is not continuous but the work-hours
the waiver of overtime pay in consideration of the bene ts that within the day or week remain. a. In case of actual or impending emergencies due to
the employees will derive from the adoption of a compressed calamities, or in case of force majeure or imminent
f) Flexi-holidays schedule refers to one where the
workweek scheme. (Bisig ng Manggagawa sa Tryco v. NLRC) danger to public safety;
employees agree to avail the holidays at some other
See DOLE DA No. 2 s. 2004 days provided there is no diminution of existing b. Urgent work needs to be performed on machineries
bene ts as a result of such arrangement. to avoid serious loss;
6) Flexible work arrangements refer to alternative
arrangements or schedules other than the traditional or See DOLE DA No. 2 s. 2009 c. Abnormal pressure of work due to special
standard work hours, workdays and workweek. The following circumstance;
7) Telecommuting refers to work from an alternative
are the exible work arrangements which may be considered, d. Prevent serious loss of perishable goods;
workplace with the use of telecommunications and/or
among others:
computer technologies. e. Nature of work requires 7 days continuous work, i.e.
a) Compressed Workweek refers to one where the crew members in vessels;
See DOLE DO No. 202 s. 2019 or the IRR of RA 11165,
normal workweek is reduced to less than six (6) days
and RA 11165 or the Telecommuting Act. f. Work is necessary to avail of favorable weather
but the total number of work-hours of 48 hours per
conditions.
week shall remain. The normal workday is increased
3 Rest periods
to more than eight hours but not to exceed twelve NO rest day for
hours, without corresponding overtime premium.

By RGL 14 of 92
 Labor Law and Social Legislation Reviewer for the 2022 Bar

a. Employees excluded from labor standards (Art. 82) a) Private school teachers: during semestral vacations — In other words, although the worker is forced to take a rest, he earns
not entitled; Christmas breaks — entitled. what he should earn, that is, his holiday pay." It is also intended to
Union members who are supervisory employees
enable the worker to participate in the national celebrations held
considered as o cers and members of the managerial b) Paid by results or output = entitled to not less than
during the days identi ed as with great historical and cultural
sta are exempt from the coverage of Article 82. the average of daily earnings of last 7 days actually
signi cance.
Perforce, they are not entitled to overtime, rest day worked preceding the holiday, provided it is not less than
and holiday. (National Sugar Refineries v. NLRC) the statutory minimum wage. Since a worker is entitled to the enjoyment of ten paid regular
holidays, the fact that two holidays fall on the same date
b. Shift engineer, no right to overtime and premium pay c) Seasonal workers: during o -season — not entitled.
should not operate to reduce to nine the ten holiday pay
as he is an o cer or member of managerial sta
d) Workers with no regular working days — entitled. bene ts a worker is entitled to receive.
(Peñaranda v. Baganga Plywood)
4) Successive Holiday Rule. — Not entitled for both
4 Holidays holiday pay if absent on the day preceding the rst holiday,
Computation Guide

Holiday pay. — refers to the payment of the regular daily wage for any unless working on the rst holiday, in which case, he is w/o Night w/ NS OT Pay
OT Pay
entitled holiday pay for the 2nd. Work on Shift = = w/o w/ NS
unworked regular holiday. Regular NS
= BHR
= BHR
1) E ect of absences: 5) Double Holiday Rule
Ordinary day x1 x1.1 x1.25 x1.375
a) On leave with pay — entitled; a) If unworked = 200%;
b) If worked = 300%; Rest Day (RD) x1.3 x1.43 x1.3 x1.859
b) On leave without pay on the day immediately preceding
— not entitled, unless worked on regular holiday; c) If falls on a rest day = 390% Special Day
x1.3 x1.43 x1.69 x1.859
(SD)
c) On leave while on SSS or EC bene ts — entitled. 6) Flexi-holiday Schedule — employee agrees to avail of
holidays at some other days provided there is no diminution SD on RD x1.5 x1.65 x1.95 x2.145
d) If day preceding holiday is nonworking day — entitled if
worked the day immediately preceding the nonworking of existing bene ts resulting therefrom.
Regular
x2 x2.2 x2.6 x2.86
day. 7) Supervised workers paid by results are entitled to holiday Holiday (RH)
2) E ect of business closure pay.
RH on RD x2.6 x2.86 x3.38 x3.718
a) In case of temporary shutdown — entitled; Asian Transmission Corp v. CA Double
x3 x3.3 x3.9 x4.29
b) If cessation due to business reverses as authorized by Holiday (DH)
Holiday pay is a legislated bene t enacted as part of the
SOLE — not entitled.
Constitutional imperative that the State shall a ord protection to DH on RD x3.9 x4.29 x5.07 x5.577
3) Holiday pay of certain employees labor. Its purpose is not merely "to prevent diminution of the
monthly income of the workers on account of work interruptions.

By RGL 15 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

5 Service charges In the same manner that payment for overtime work and work
1) Service charge refers to the amount that is added to the bill R&E Transport v. Latag performed during special holidays is considered as additional
for work or service rendered. compensation apart and distinct from an employee's regular wage or
Since Pedro was paid according to the "boundary" system, he is not
basic salary, an overload pay, owing to its very nature and de nition,
2) All service charges actually collected by covered establishments entitled to the 13th month and the service incentive pay; hence, his
may not be considered as part of a teacher's regular or basic salary,
shall be distributed COMPLETELY and EQUALLY, based retirement pay should be computed on the sole basis of his salary.
because it is being paid for additional work performed in excess of
on actual hours or days of work or service rendered among the the regular teaching load.
covered employees, including those already receiving the
bene t of sharing in the service charges. Verily, overload pay may not be included as basis for
Reyes v. NLRC
determining a teacher's 13th-month pay.
3) Covered employees refer to all employees, except managerial ON COMMISSIONS. The Court thus clari ed that in
employees, under the direct employ of the covered Philippine Duplicators, the salesmen’s commissions, comprising a
establishment. predetermined percentage of the selling price of the goods sold by B Wages
4) Relevant laws and rules: each salesman, were properly included in the term basic salary
for purposes of computing the 13th month pay. Wage paid to an employee shall mean
a) as amended by RA No. 11360, e ective on September 4,
2019 per DOLE Labor Advisory No. 10 s. 2020; Sales commissions which are e ectively an integral portion of 1. the remuneration or earnings, however designated,
the basic salary structure of an employee, shall be included in
b) see DOLE DO No. 206 s. 2019; 2. capable of being expressed in terms of money,
determining the retirement pay. In ne, the commissions which
whether xed or ascertained on a
c) see DOLE Labor Advisory No. 14, S. 2019. petitioner received were not part of his salary structure but were
pro t-sharing payments and had no clear, direct or necessary a. time,
6 13th month pay relation to the amount of work he actually performed. The b. task,
collection made by the salesmen from the sale transactions was the
1) Resigned or separated employees to be paid pro rata; c. piece, or
pro t of private respondent from which petitioner had a share in
2) Non-payment shall be treated as money claims. the form of a commission. d. commission basis, or

3) Employees paid a xed or guaranteed wage plus e. other method of calculating the same,
commission are entitled based on their total earnings for the 3. which is payable by an employer to an employee under a
calendar year. Letran Calamba Faculty & Employees Association v. NLRC
written or unwritten contract of employment
4) Basic salary means not the amount actually received by an ON OVERLOAD PAY. Overload pay should be excluded from a. for work done or to be done, or
employee, but 1/12 of their standard monthly wage the computation of the 13th-month pay.
multiplied by their length of service within a given calendar b. for services rendered or to be rendered
year.

By RGL 16 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

purpose of a tender of payment of debts, i.e. coins and

4. and includes the fair and reasonable value of board, d. Other analogous circumstance, provided
notes issued by BSP.
lodging, or other facilities customarily furnished by the
Time spent collecting wages is considered compensable
employer to the employee. Strictly not allowed — other objects other than legal tender, even
hours worked.
when expressly requested by EE.
"Fair and reasonable value" shall not include any pro t to the
e. Prohibited places: bar, club, drinking establishment,
employer, or to any person a liated with the employer. Exceptions
similar places where games are played with stakes of
Basic Wage. — All the remuneration or earnings paid by an a) Bank Check money, except if employee employed in such
employer to a worker for services rendered on normal working days establishment.
b) Money Order
and hours but does not include:
Payment thru Banks allowed (RA 6727) provided
c) Postal Checks, provided
a) COLA;
a. With written permission of majority of employees;
i. It is customary practice on the date of e ectivity; or
b) Pro t sharing payments;
b. In all private establishments of at least 25 EEs;
ii. So stipulated in CBA; and the following are met:
c) Premium pay;
c. Located within 1KM radius to a bank;
iii. There is a bank within 1 KM radius;
d) 13th month pay; or
d. Within the period of payment of wages xed by the LC.
iv. Employer or agents do not receive pecuniary bene ts
e) Other monetary bene ts.
from such arrangement; Payment thru ATM allowed provided:

Wage Salary v. Employee given reasonable time to withdraw and a. With written consent of employees concerned;
shall constitute compensable hours if done within
b. Given reasonable time to withdraw during working hours
Compensation paid for manual Compensation for higher or working hours; and
and is considered compensable;
skilled or unskilled labor superior level of employment
vi. With written consent of the employee if without
c. Within period of payment of wages xed by LC;
Compensation for labor Relates to a position or o ce CBA.
d. There is a bank or ATM within 1KM radius;
Shall not be subject to execution, NOT exempt Place and Medium of Payment
e. Payslip be provided, upon request;
attachment or garnishment except GR: At or near place of undertaking;
for debts incurred for food, shelter, f. No additional expenses and diminution of bene ts
EXC: (Book III Rule VIII Sec 4) resulting from the scheme;
clothing and medical attendance.
a. Deterioration of peace and order; g. Employer shall assume responsibility in case the wage
b. Actual or impending emergencies due to calamities; protection provisions of law and regulations are not
1 Payment of wages complied with under the arrangement.
c. Employer provides free transportation back and forth;
GR: Legal Tender (Art 102, LC; Art 1705 NCC) is that and
currency which has been made suitable by law for the

By RGL 17 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Payee 2) Other prohibitions EXC:

GR: Direct to Employee; a) Kickbacks — induce a worker to give up any part of his a) Facilities;
wages by force, stealth, intimidation, threat;
EXC: b) Amount paid by ER as premiums on insurance,
b) Deduction to ensure employment (Art 117); consented to by EE;
a. Force majeure, in which case worker may be paid through
another person under written authority for such c) Retaliate against an employee who has c) For union dues, where the right of EE or his union to
purpose; or checko has been recognized by the ER or authorized in
i) Filed any complaint, or
writing by the EE concerned;
b. Worker has died, in which case, paid to heirs without need ii) Instituted proceedings, or
of intestate proceedings, only a davit of heirship. d) Where ER is authorized by law or regulations issued by
iii) Has testi ed or is about to testify in said proceedings; SOLE;
Time and Frequency by: e) For loss or damage under Art 114 LC; DOLE LA
GR: At least every 2 weeks or twice a month at intervals not 11-14, Private Security Agencies:
1. Refusing to pay the wages; or
exceeding 16 days.
2. Reducing such wages; or i) Following must be observed:
EXC: Force majeure.
3. Discharging him from employment; or 1) EE is clearly responsible for the loss or damage;

2 Prohibitions regarding wages 4. Discriminate against him in any manner. (Art 2) He is given reasonable opportunity to show cause
118) why deductions should not be made;
1) From the Civil Code
d) False reporting (Art 119) 3) Deduction is fair and reasonable and should not
a) Art 1705. The laborer's wages shall be paid in legal exceed the actual loss or damage; and
currency. 3) Non-interference in the disposal of wages. — Art 112.
No employer is allowed to limit or otherwise interfere with 4) Does not exceed 20% of EE’s wages in a week.
b) Art 1706. Withholding of the wages, except for a debt
how an employee should dispose or make use of the latter’s ii) Cash Deposit — must not exceed one month's basic
due, shall not be made by the employer.
wages. salary of EE. May be deducted from wages in an
c) Art 1707. The laborer's wages shall be a lien on the goods amount not to exceed 20% of EE’s wages in a week.
He shall not in any manner force, compel, or oblige his
manufactured or the work done.
employees to purchase merchandise, commodities or any other iii) Refund — within 10 days from separation from
d) Art 1708. The laborer's wages shall NOT be subject to property. service.
execution or attachment, except for debts incurred for
food, shelter, clothing and medical attendance. Wage Deduction
Jardin v. NLRC
GR: No employer, in his own behalf or in behalf of any person,
e) Art 1709. The employer shall neither seize nor retain any
shall make any deduction from the wages of his
tool or other articles belonging to the laborer.
employees.

By RGL 18 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

With regard to the amount deducted daily by private respondent iii) shelter and Deductible from wage Not deductible from wage
from petitioners for washing of the taxi units, we view the same
iv) medical attendance; 1) Facilities. — Requisites for Deductibility:
as not illegal in the context of the law.
k) Ordered by the court. a) Must be customarily furnished by the employer;
l) Under the PH Cooperative Act of 2008. RA 9520 - A b) Must be charged at a fair and reasonable value; and
Niña Jewelry Manufacturing of Metal Arts member of a cooperative may execute an instrument in
2011 c) Must be voluntarily accepted by the employee in
v. Montecillo favor of the cooperative authorizing his employer to
deduct from his wages and remit such to the cooperative writing.
Employers should rst establish that the making of deductions from
to satisfy any incurred debt or other demands. 2) Meals and lodging provided to employees in order to
the salaries is authorized by law, or regulations. Further, the posting
m) DO No. 195, S. 2018, amending Sec. 10, Rule VIII, maintain their e ciency and health while working at their
of cash bonds should be proven as a recognized practice in the
Book III, IRR. respective project sites, are supplements, and not facilities
jewelry manufacturing business, or alternatively, the employer
(SLL International Cable Specialists v. NLRC 2011)
should seek for the determination by the SOLE that the policy the ⭐SECTION 10. Wages deduction. — Deductions from
former seeks to implement is necessary or desirable in the conduct of the wages of the employees may be made by the employer in 3) Supplements. — Constitute extra remuneration or
business. any of the following cases: special privileges or bene ts given to or received by the
laborers over and above their ordinary earnings or wages.
f) For Agency Fees from non-union members who accept (b) When the deductions are with the written authorization of
the bene ts under the CBA negotiated by the bargaining the employees for payment to the EMPLOYER or a third
4 Minimum wage
union. Does not need authorization from concerned person and the employer agrees to do so; Provided, That
member; the latter does not receive any pecuniary bene t, directly The minimum wage rates prescribed by law shall be the basic
or indirectly, from the transaction. cash wages without deduction therefrom of whatever bene ts,
g) Premiums for SSS, PhilHealth, employee’s compensation
supplements or allowances which the employees enjoy free of
and Pag-IBIG;
3 Facilities vs. supplements charge aside from the basic pay.
h) Withholding tax;
Regional Minimum Wage Rates. — The lowest basic wage
i) Where EE is indebted to ER that has become due and Facilities Supplements rates that an employer can pay his workers, as xed by the
demandable (Art 1706 CC); Regional Tripartite Wages and Productivity Boards
Necessary expenses of laborer
j) Pursuant to a court judgment where wages may be the Extra bene t or special privilege (RTWPB) and which shall not be lower than the applicable
and his family
subject of attachment or execution but only for debts statutory minimum wage rates.
incurred for (Purpose Test) a) Includes COLA as xed by RTWPB.
i) food, For the bene t of Employee For the bene t of Employer
b) Excludes other wage-related bene ts.
ii) clothing, Part of Wage Independent of Wage

By RGL 19 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

per eight (8) hours of work a day, or a proportion thereof for among employee groups in an establishment as to e ectively
1) Payment by hours worked. — Once an agreed period of
working less than eight (8) hours. obliterate the distinctions embodied in such wage structure
work is completed, compensation is earned regardless of result.
based on skills, length of service, or other logical bases of
Other Wage Rates
a) Daily-paid employees are paid on the days actually di erentiation. (Art 124 LC)
worked except unworked regular holidays when they are a. Of apprentices or learners shall be 75% of the statutory
2) Elements
paid their basic wage if they are present or a leave with pay minimum wage.
on the working day preceding the regular holiday. a) An existing hierarchy of positions with corresponding
b. Of PWDs, 100% of the applicable minimum wage.
salary rates;
b) Monthly-paid employees are paid every day of the
month, including unworked days. Pablico et al. v. Cerro 2019 b) A signi cant change in the salary rate of a lower pay class
w/o concomitant increase in the salary rate of a higher
Estimated Equivalent Monthly Rate (EEMR) In order to be exempted under the Wage Rationalization Act, two
one;
1. For Monthly paid: (365) elements must concur —
c) Elimination of the distinction between the two levels;
𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 365 first, it must be shown that the establishment is regularly
𝐸𝐸𝑀𝑅 = d) Existence of the distortion in the same region.
12 𝑚𝑜𝑛𝑡ℎ𝑠 employing not more than ten (10) workers, and
2. For Daily paid: second, that the establishment had applied for and was 3) Wage Distortion Resolution
i) Required to work everyday (393.5) granted exemption by the appropriate Regional Board..

𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 393.5 WON petitioner is exempt from the Minimum Wage Law.
𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠
NO. As the petitioner failed to apply for an exemption, and it is
ii) Do not work and not considered paid on undisputed that the respondents are MPRB's employees and are
Sundays or rest days (313) paid less than the prescribed minimum wage, the petitioner's
liability for wage di erential cannot be denied.
𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 313
𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠 Petitioner is employing more than ten (10) employees in his
iii) Do not work and not considered paid on establishment. To be sure, employment status is determined by the
weekends or rest days (261) four-fold test, and the attendant circumstances of each case.

𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 261

𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠
5 Wage distortion
2) Payment by results. — All workers paid by result,
including those who are paid on piecework, takay, pakyaw or 1) A situation where an increase in prescribed wage rates results
task basis, shall receive not less than the prescribed wage rates in the elimination or severe contraction of intentional
quantitative di erences in wage or salary rates between and 4) Possible causes

By RGL 20 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

includes authorized absences, unworked weekly rest days, and paid

a) Government decreed increase through WOs; 1) Bene ts given to employees cannot be taken back or reduced
regular holidays.
unilaterally by the employer because the bene t has become
b) Merger of establishments;
part of the employment contract.
c) Increase granted by employers; Tan v. Lagrama
2) Applicable if the following conditions are met:
d) Passage of RA 6727. If a piece worker is supervised, there is an employer-employee
a) The grant of the bene t is based on an express policy or
5) In Bankard Employees Union v. NLRC, the unilateral relationship. However, such an employee is not entitled to service
has ripen into practice over a long period of time;
adoption by an employer of an upgraded salary scale that incentive leave pay since, as pointed out in Makati Haberdashery
b) Practice is consistent and deliberate; v. NLRC and Mark Roche International v. NLRC, he is paid a xed
increased the hiring rates of new employees without increasing
the salary rates of old employees DOES NOT RESULT in c) It is not due to error in the construction or application amount for work done, regardless of the time he spent in
wage distortion within the contemplation of Article 124 of of a doubtful or di cult question of law or provision in accomplishing such work.
the Labor Code, as the increase in the wages and salaries the CBA;
of the newly-hired was not due to a prescribed law or
d) The diminution is done unilaterally by the employer.
wage order. Expanded Maternity leave
3) Company practice is a custom or habit shown by an 2
employer’s repeated, habitual customary or succession of acts 105-Day Expanded Maternity Leave Law
Prubankers Association v. Prudential Bank
of similar kind by reason of which, it gains the status of a
1) Increased maternity leave with full pay;
Wage distortion presupposes an increase in the compensation of the company policy that can no longer be disturbed or withdrawn.
lower ranks in an o ce hierarchy without a corresponding raise for a) 105 days for natural or cesarean delivery;
4) The rule on company practice is generally used with respect to
higher-tiered employees in the same region of the country, resulting b) 60 days for miscarriage or emergency termination of
grant of additional bene ts to employees, not to issues
in the elimination or the severe diminution of the distinction pregnancy.
involving diminution of bene ts.
between the two groups.
2) Option to extend maternity leave for additional thirty (30)
Such distortion does not arise when a wage order gives employees in C Leaves days without pay;
one branch of a bank higher compensation than that given to their
counterparts in other regions occupying the same pay scale, who are Notify ER at least 45 days before end of maternity leave to
1 Service incentive leave avail of extension.
not covered by said wage order. In short, the implementation of
wage orders in one region but not in others does not in itself Every employee who has rendered at least one (1) year of service is 3) Additional fteen (15) days with full pay for solo parents;
necessarily result in wage distortion. entitled to Service Incentive Leave (SIL) of ve (5) days with 4) Combinations of prenatal and postnatal leave;
pay.
Compulsory postnatal at least 60 days.
The phrase “one year of service” of the employee means service
6 Non-diminution of bene ts 5) Maternity leave regardless of frequency;
within twelve (12) months, whether continuous or broken,
reckoned from the date the employee started working. The period 6) Allocation of maternity leave credits;

By RGL 21 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

a) allocate up to seven (7) days of said bene ts to the child's 1) A married male employee; a) She has rendered at least six (6) months continuous
father, whether or not the same is married to the female aggregate employment service for the last twelve (12)
2) Cohabiting with spouse;
worker. months prior to surgery;
3) Has applied for PL;
b) alternate caregiver who may be a relative within the b) In the event that an extended leave is necessary, the female
fourth degree of consanguinity or the current partner of 4) Legitimate spouse gave birth or had a miscarriage. employee may use her earned leave credits; and
the female worker sharing the same household. In the event that the paternity leave is not availed of, it shall not be c) This special leave shall be non-cumulative and non-
c) In the event the bene ciary female worker dies or is convertible to cash and shall not be cumulative. convertible to cash.
permanently incapacitated, the balance of her maternity
2) Battered woman leave. — The quali ed victim-employee
leave bene ts shall accrue to the father of the child or to a Parental leave for solo parents
4 shall be entitled to a leave of up to ten (10) days with full pay,
quali ed caregiver.
Solo Parents’ Welfare Act of 2000 and its IRR consisting of basic salary and mandatory allowances xed by
7) Maternity leave after termination of service; RTWPB.
1) In addition to leave privileges under existing laws, parental
a) occurs not more than fteen (15) calendar days after leave of not more than seven (7) working days every year Requirement. — To be entitled to the leave bene t, the only
the termination of an employee's service, as her right shall be granted to any solo parent employee who has rendered requirement is for the victim-employee to present to her
thereto has already accrued. service of at least one (1) year. employer a certi cation from the
b) such period is not applicable when the employment of the 2) The seven-day parental leave shall be non-cumulative. a) barangay chairman or
pregnant woman worker has been terminated without
3) In the event that the parental leave is not availed of, said leave b) barangay councilor or
just cause.
shall not be convertible to cash unless speci cally agreed c) prosecutor or
8) Voluntary working arrangement during the maternity leave upon previously.
period. d) the Clerk of Court, as the case may be,

Leave bene ts for women workers under R.A. that an action relative to the matter is pending.
Paternity leave 5
No. 9710 and R.A. No. 9262
3
Paternity Leave Act of 1996 D Special groups of employees
1) Gynecological leave. — Any female employee in the public
Granted to all married male employees in the private sector, and private sector regardless of age and civil status shall be
1 Women
regardless of their employment status. entitled to a special leave of two (2) months with full pay
based on her gross monthly compensation subject to existing
Government employees are also entitled to the paternity leave a Discrimination
laws, rules and regulations due to surgery caused by
bene t.
gynecological disorders under such terms and conditions: The following are acts of discrimination:
Entitled to full pay, consisting of basic salary, for the 7 days of
paternity leave, for up to the rst four (4) deliveries.

By RGL 22 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

1) Payment of a lesser compensation to a female employee as DOLE Dept. Circular No. 2, S. 2017 on Guidelines on the ii. Construction;
against a male employee, for work of equal value; and Issuance of Work Permit for Children Below 5 Years Old iii. Transportation and Storage;
Engaged in Public Entertainment or Information
2) Favoring a male employee over a female employee with respect
iv. Water Supply, Sewerage, Waste management and
to promotion, training opportunities, study and scholarship
remediation activities;
grants solely on account of their sexes. a Child labor vs. working child
1) Child labor refers to any work or economic activity v. Forestry and Logging;
b Stipulation against marriage performed by a child that subjects him/her to any form of vi. Fishing and Agriculture;
It shall be unlawful for an employer to require as a condition of exploitation or is harmful to his/her health and safety or
vii. Hunting, Trapping;
employment or continuation of employment that a woman physical, mental or psychosocial development.
employee shall not get married, or to stipulate expressly or tacitly viii. Security and Investigation;
2) Working child refers to any child engaged as follows:
that upon getting married, a woman employee shall be deemed ix. Manufacturing
a) when the child is below eighteen (18) years of age, in
resigned or separated, or to actually dismiss, discharge,
work or economic activity that is not child labor; and b) Occupational Classi cation
discriminate or otherwise prejudice a woman employee merely by
reason of her marriage. b) when the child is below fteen (15) years of age, i. Farmers

i) in work where he/she is directly under the ii. Animal Producers;

c Prohibited acts responsibility of his/her parents or legal guardian and iii. Physical, Life Sciences and Health Associate
It shall be unlawful for any employer: where only members of the child ‘s family are Professionals;
employed; or
1) To deny any woman employee the bene ts provided for in this iv. Sales and Services Elementary Occupations;
Chapter or to discharge any woman employed by him for the ii) in public entertainment or information.
v. Personal and Protective Services Workers;
purpose of preventing her from enjoying any of the bene ts; Allowed working hours and industries of a
b vi. Customer Services Clerks;
working child
2) To discharge such woman on account of her pregnancy, or
while on leave or in con nement due to her pregnancy; vii. Other Craft and Related Trade Workers.
1) 15 and above, but below 18 years of age
3) To discharge or refuse the admission of such woman upon ★ Hours of Work. up to 8H/D, 40H/W; 6am to 10pm
GR: May be employed
returning to her work for fear that she may again be pregnant. only.
EXC: In an undertaking which is deleterious or hazardous
2) Below 15 years of age
in nature.
Minors GR: Shall not be employed
★ DOLE DO 149-16. Based on Two Classi cations:
2 See RA No. 9231, amending RA 7610; EXC: When a child works
a) Industrial Classi cation
DO No. 65-04, S. 2004 on Worst Forms of Child Labor; and
i. Mining and Quarrying;

By RGL 23 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

worst forms of child labor. The phrase “worst forms of child

a. Directly under the sole responsibility of his parents/ b) Yaya;
labor” shall refer to any of the following:
legal guardian and where only members of his family
c) Cook;
are employed. a) All forms of slavery, as de ned under the “Anti-tra cking
in Persons Act of 2003”, or practices similar to slavery d) Gardener;
Provided his employment neither endangers his life,
such as sale and tra cking of children, debt bondage and e) Laundry person; or
safety, health, and morals nor impairs his normal
serfdom and forced or compulsory labor, including
development. f) Any person who regularly performs domestic work in
recruitment of children for use in armed con ict.
Provided further that said child is provided with the one household on an occupational basis.
b) The use, procuring, o ering or exposing of a child for
prescribed education; 2) The following are not covered:
prostitution, for the production of pornography or for
b. Or participates in public entertainment or pornographic performances; a) Service providers;
information
c) The use, procuring or o ering of a child for illegal or illicit b) Family drivers;
Provided that the employment contract is concluded activities, including the production or tra cking of c) Children under foster family arrangement; and
by child’s parent with express agreement of said child dangerous drugs or volatile substances prohibited under
existing laws; or d) Any other person who performs work occasionally or
Provided further that the following are met:
sporadically and not on an occupational basis.
i) Protection, health, safety, morals and normal d) Work which, by its nature or the circumstances in which
it is carried out, is hazardous or likely to be harmful to the 3) Employment contract and renewal. — Before the
development of child is ensured;
health, safety or morals of children, xxxx. commencement of the service, a written employment
ii) Measures are instituted to prevent child’s contract between the Kasambahay and the employer shall be
exploitation or discrimination; and 2) Prohibition on the Employment of Children in Certain accomplished in three (3) copies. The contract shall be in a
Advertisements. — No child shall be employed as a model in language or dialect understood by both the Kasambahay and
iii) A continuing program for training and skills
any advertisement directly or indirectly promoting alcoholic the employer.
acquisition of the child is formulated and
beverages, intoxicating drinks, tobacco and its byproducts,
implemented. 4) Renewal of Contract. — Should the parties mutually agree
gambling or any form of violence or pornography.
A work permit shall be secured from DOLE in both to continue their employment relationship upon expiration of
instances. the contract, they shall execute a new contract to be registered
Kasambahay
3 with the concerned barangay. However, if the parties fail to
★ Hours of Work. up to 4H/D, 20H/W; 6am to 8pm only.
Batas Kasambahay execute a new contract, the terms and conditions of the
original contract and other improvements granted during the
c Prohibited acts 1) Coverage. — Apply to all parties to an employment contract
e ectivity of said contract are deemed renewed.
for the services of the following Kasambahay, whether on a
1) Prohibition on the Employment of Children in Worst 5) The rights and privileges of the Kasambahay are as follows:
live-in or live-out arrangement, such as but not limited to:
Forms of Child Labor. — No child shall be engaged in the
a) General househelp; a) Minimum wage;

By RGL 24 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

regular factory production principally in that, it is a

b) Other mandatory bene ts, such as the daily and a) Suitable rst-aid and emergency facilities;
decentralized form of production where there is ordinarily
weekly rest periods, service incentive leave, and 13th
very little supervision or regulation of methods of work. b) Lactation station in required companies;
month pay;
2) Exemption from minimum Wage if engaged in c) Separate toilet facilities for men and women;
c) Coverage under the SSS, PhilHealth and Pag-IBIG
needlework. The title on Wages shall not apply to farm d) Facility for eating with potable drinking water; and
laws;
tenancy or leasehold, domestic service and persons working in
d) Board, lodging and medical attendance; e) Facilities for transportation and/or properly ventilated
their respective homes in needle work or in any cottage
temporary sleeping or resting quarters, except where any
e) Right to privacy; industry duly registered.
of the following circumstances is present:
f) Access to outside communication; 3) No homework shall be performed on the following:
i) Where there is an existing agreement between
g) Access to education and training; a) explosives, reworks and articles of like character; management and workers providing for an equivalent
b) drugs and poisons; and or superior bene t; or
h) Right to form, join, or assist labor organization;
c) other articles, the processing of which requires exposure ii) Where the start or end of the night work does not fall
i) Right to be provided a copy of the employment
to toxic substances. within 12 midnight to 5 o'clock in the morning; or
contract;
iii) Where the workplace is located in an area that is
j) Right to certi cate of employment; and
Night workers accessible twenty four (24) hours to public
k) Right to exercise their own religious beliefs and 5 transportation;
cultural practices. DOLE DO No. 119-12 s. 2012
iv) Where the number of employees does not exceed a
1) Coverage and Exclusion. — Shall apply to all persons, who speci ed number as may be provided for by the
Atienza v. Saluta 2019
shall be employed or permitted or su ered to work at night, SOLE.
WON the Labor Code governs the rights of family drivers. except those employed in agriculture, stock raising, fishing,
4) Right to Transfer. — Night workers who are certi ed by
maritime transport and inland navigation, during a period of
NO. The Civil Code shall govern the rights of family drivers. competent physician, as un t to render night work, due to
not less than seven (7) consecutive hours, including the
health reasons, shall be transferred to a job for which they are
interval from midnight to ve o'clock in the morning.
t to work whenever practicable.
Homeworkers 2) Right to Health Assessment. — At their request, workers
4 5) Women Night Workers. — Measures shall be taken to
shall have the right to undergo a health assessment without
DOLE DO No. 5 s. 1992 ensure that an alternative to night work is available to women
charge and to receive advice on how to reduce or avoid health
workers who would otherwise be called upon to perform such
1) “Industrial Homework” is a system of production under problems associated with their work.
work.
which work for an employer or contractor is carried out by a 3) Right to Mandatory Facilities. — Mandatory facilities
homework at his/her home. Materials may or may not be 6) Criminal liability of Employer. — Any violation of this
shall be made available for workers performing night work
furnished by the employer or contractor. It di ers from Rule shall be punishable with a ne of 30K - 50K or
which include the following:

By RGL 25 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

imprisonment of not less than six (6) months or both, at the twenty- ve percent (25%) of the total amount paid as
1 Anti-Sexual Harassment Act
discretion of the court. salaries and wages to disabled persons.
Sexual harassment is committed when:
2) Private entities that improve or modify their physical facilities
Persons with Disabilities in order to provide reasonable accommodation for disabled 1) The sexual favor is made as a condition
6
The Magna Carta for Disabled Persons, as amended persons shall also be entitled to an additional deduction from
a) in the hiring or in the employment, re-employment or
their net taxable income, equivalent to fty percent continued employment of said individual, or
Handicapped workers may be employed (50%) of the direct costs of the improvements or
b) in granting said individual favorable compensation, terms
1) when their employment is necessary to prevent curtailment modi cations.
of conditions, promotions, or privileges; or
of employment opportunities and
2) when it does not create unfair competition in labor costs or Sexual Harassment in the work the refusal to grant the sexual favor results
E
impair or lower working standards. environment c) in limiting, segregating or classifying the employee which
in any way would discriminate, deprive or diminish
Equal opportunity. — No disabled persons shall be denied access 1) De nition. — Under the Anti-Sexual Harassment Act of
employment opportunities or otherwise adversely a ect
to opportunities for suitable employment. A quali ed disabled 1995, it is committed by an employer, employee, manager,
said employee;
employee shall be subject to the same terms and conditions of supervisor, agent of the employer, xxx, or any other person
employment and the same compensation, privileges, bene ts, who, having authority, influence or moral ascendancy 2) The above acts would impair the employee's rights or
fringe bene ts, incentives or allowances as a quali ed able-bodied over another in a work environment, demands, requests or privileges under existing labor laws; or
person. otherwise requires any sexual favor from the other, regardless 3) The above acts would result in an intimidating, hostile, or
of whether the demand, request or requirement for o ensive environment for the employee.
a Discrimination submission is accepted by the object of said act.

No entity, whether public or private, shall discriminate against a 2) Duties and liabilities of employers. — Employers or other 2 Safe Spaces Act
quali ed disabled person by reason of disability in regard to job persons of authority, in uence or moral ascendancy in a
The crime of gender-based sexual harassment in the
application procedures, the hiring, promotion, or discharge of workplace shall have the duty to prevent, deter, or punish the
workplace includes the following:
employees, employee compensation, job training, and other terms, performance of acts of gender-based sexual harassment in the
conditions, and privileges of employment. workplace. 1) An act or series of acts involving

The employer or head of o ce shall be solidarily liable for a) any unwelcome sexual advances, requests or demand
b Incentives for employers
damages arising from the acts of sexual harassment committed for sexual favors or
1) Private entities that employ disabled persons who meet the in the employment if the employer or head of o ce is b) any act of sexual nature, whether done verbally, physically
required skills or quali cations, either as regular employee, informed of such acts by the o ended party and no immediate or through the use of technology,
apprentice or learner, shall be entitled to an additional action is taken.
deduction, from their gross income, equivalent to

By RGL 26 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

that has or could have a detrimental e ect on the conditions of Bene t How to avail Exception Notes Bene t How to avail Exception Notes
an individual's employment or education, job performance or
done during or a scheduled retail and additional Night- shift Di erential
opportunities; special holiday rest day. service with compensation
or rest day; less than required by law ■ 110% of BHR Employees Art 82 + Not waivable,
2) A conduct of sexual nature and other conduct-based on sex
■ 150% of regular 10 EEs for work working those of founded on
a ecting the dignity of a person, which is unwelcome,
pay for work performed within between 10 PM retail and public policy
unreasonable, and o ensive to the recipient, whether done
done on a rest the 8 normal - 6 AM of the service of
verbally, physically or through the use of technology; next day NOT more
day falling on a hours of work
3) A conduct that is unwelcome and pervasive and creates an holiday. on non-working than 5 EEs.
intimidating, hostile or humiliating environment for the days.
Service Charges
recipient.
Service Incentive Leave
This may also be committed between peers and those committed ■ 100% Employees Art 82 Service charges are
■ Five days leave Rendered at Art 82 + Commutable to rank-and- le working in not in the nature
to a superior o cer by a subordinate, or to a teacher by a student,
with pay least 1 year already cash if not used. establishments of pro t share
or to a trainer by a trainee.
service; enjoying collecting and, therefore,
bene t; VL service charges, cannot be
Summary of Minimum Labor Standards Bene ts
Part time with pay of i.e. hotels, clubs, deducted from
Bene t How to avail Exception Notes bars, casinos, wage.
workers may at least 5
bene t. days; less restaurants
Overtime Pay
than 10
■ 125% of BHR Overtime Employees OT Pay refers to EEs Summary of Special Bene ts
on Work - Work not covered additional Bene ciaries, Exemptions
Holiday Pay Provision How to avail
ORDINARY rendered after under Art compensation for and Exclusions
days; the normal 8 82 work performed
■ 100% of regular May be availed Art 82 + Jan 1, Maundy
■ 130% of BHR hours of work. beyond the 8 13th month pay [PD 851 as amended]
pay even if of regardless of those of Thursday, Good
on Rest Days, normal hours of
unworked; whether worked retail and Friday, Eidul Fitr, Equivalent to 1/12 Worked for at least 1 1. Rank-and- le
Special and work on any
■ 200% if worked or unworked. service with Eidul Adha, Apr of the total basic month during a employees;
Regular given day.
less than 9, May 1, Jun 12, salary earned calendar year 2. Domestic helpers;
Holidays
10 EEs National Heroes within a calendar 3. Piece-rate employees;
Premium Pay Day, Nov 1, Nov year, to be paid not 4. Government;
30, Dec 25, Dec later than Dec 24. 5. Already paying 13th
■ 130% of regular Working on a Art 82 + Premium pay 30, Dec 31, month pay or its
pay for work special holiday those of refers to Election Day equivalent;

By RGL 27 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Bene ciaries, Exemptions Bene ciaries, Exemptions Bene ciaries, Exemptions

Provision How to avail Provision How to avail Provision How to avail
and Exclusions and Exclusions and Exclusions

6. In the personal service Retirement Pay Parent ID.

of another; Protection from
7. Commission- based, One-half month Generally 1. All employees in private work
boundary or task basis, salary for every year 1. Optional Age: 60; sector; discrimination.
paid by result. of service that Compulsory: 65 2. Part-timers;
includes: 2. 5 year minimum 3. Employees of service and Battered Woman’s Leave
Paternity Leave [RA 8187. Paternity Leave Act of 1996 and its IRR] 1. 15 days latest service; other job contractors;
salary rate; and if 3. Eligible for 4. Kasambahays or persons 10 days of paid Certi cation from Victims of abuse under
Entitled to full pay, 1. An employee; Married male employee, entitled to retirement; in the personal service of leave, which is Punong brgy, VAWC
consisting of basic 2. Cohabiting with provided he is, during 2. Cash equivalent another; extendible. Prosecutor or Clerk
salary, for the 7 days spouse; delivery or miscarriage: of service Surface Mine 5. Underground mine of Court.
of paternity leave, 3. Has applied for incentive leave = Workers workers;
for up to the rst PL; Gynecological Leave [RA 9710. Magna Carta of Women]
5 days; Optional: 50; 6. Employees in GOCCs
four (4) deliveries. 4. Legitimate spouse 3. 1/12 of the 13th Compulsory: 60. organized under Corp
Special leave of 2 Continuous Female employee
gave birth or had a month pay = 2.5 Code.
months with full aggregate service of undergoing gynecological
miscarriage. days; Racehorse Jockeys 7. National Gov, LGCs,
pay based on gross at least 6 months surgery.
Compulsory: 55. GOCCs under Civil
Maternity Leave [RA 11210. 105-Day Expanded Maternity Leave Law monthly for the last 12
1/2MS = Service Law;
and its IRR] compensation. months.
15+5+2.5 = 22.5 8. Retail, service, agri
days establishments regularly
one hundred ve Cannot be deferred Female employee;
employ not more than
(105) days but should be in case the worker quali es
maternity leave with availed of either as a solo parent the worker
10. IV Social Welfare Legislation
9. Dismissed from work due
full pay and an before or after the shall be granted an
to just cause. SSS Law
option to extend for actual period of additional fteen (15) days
an additional thirty delivery in a maternity leave with full
Parental Leave [RA 8972. Solo Parent Welfare Act and its IRR] Coverage and exclusions
(30) days without continuous and pay.
pay uninterrupted Parental leave of not 1. Has rendered Solo parent, or other person Dependents and bene ciaries
manner, not Adoptive parents, if the more than 7 days service for at least who solely provides parental
exceeding one adoptee is below 7 years every year. 1 year; care and support to a child Bene ts
hundred ve (105) old as of date he is placed in 2. Noti ed or children.
days Pre-Adoptive Placement GSIS Law
Flexible work employer;
Authority schedule; 3. Presented a Solo Coverage and exclusions

By RGL 28 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Dependents and bene ciaries 2) OFWs, sea-based or land-based, are compulsory members as 1) Maternity Leave Bene t. — see also 105-Day Expanded
provided for under Sec 9-B. Maternity Leave Law RA 11210
Bene ts
2) Retirement Bene t. — under Section 12-B, is given to a
Limited Portability Law 2 Dependents and bene ciaries member who:
Disability and Death Bene ts 1) The dependents shall be the following: a) has reached the age of sixty (60) years old, and is already
separated from work or has ceased to be self-employed; or
Labor Code a) The legal spouse entitled by law to receive support from
the member; b) has reached the age of sixty ve (65) years provided he/she
POEA-Standard Employment Contract for
b) The legitimate, legitimated or legally adopted, and has complied with the required monthly contributions.
Seafarers illegitimate child who is unmarried, not gainfully 3) Death Bene t. — under Section 13, allows the primary
employed, and has not reached twenty-one (21) years of bene ciaries of the deceased member to be entitled to monthly
SSS Law age, or if over twenty-one (21) years of age, he is pension provided the latter has paid the required monthly
A
Social Security Act of 2018 congenitally or while still a minor has been permanently contributions to be quali ed thereof.
incapacitated and incapable of self-support, physically or
4) Permanent Disability Bene t. — under Section 13-A,
mentally; and
1 Coverage and exclusions provides that those who have permanent disabilities shall be
c) The parent who is receiving regular support from the entitled to a monthly pension. The sum equivalent to the
1) The SS Law mandates that all employees including member. monthly pension is still subject to the conditions and
kasambahays or domestic workers not over sixty (60) years of quali cations provided by the said law. Further, the law
2) Primary Beneficiaries
age shall be members of the SSS (Sec 9). The law also provides a di erent monthly pension for permanent total
mandates compulsory coverage of the Self-Employed as a) The dependent spouse until he or she remarries; disability, which is de ned by Section 13-A (d), and
stated in Sec 9-A which provides that self-employed includes, permanent partial disability.
b) the dependent legitimate, legitimated or legally adopted,
but not limited to, the following:
and illegitimate children, In their absence, 5) Funeral Bene t. — under Section 13-B, provides for a
a) All self-employed professionals; funeral grant equivalent to P12K to help defray the cost of
3) Secondary Beneficiaries
b) Partners and single proprietors of businesses; funeral expense upon the death of a member, including a
a) the dependent parents;
permanently totally disabled member or retiree.
c) Actors and actresses, directors, scriptwriters and news
b) In the absence of all the foregoing, any other person
correspondents who do not fall within the de nition of 6) Sickness Bene t. — under Section 14, provides daily sickness
designated by the member as his/her secondary
the term “employee” in Sec 8 (d) of this Act; bene ts equivalent to ninety percent (90%) of his average
bene ciary.
daily salary credit, to members who are con ned for more
d) Professional athletes, coaches, trainers and jockeys; and
than three (3) days in a hospital or elsewhere with the
e) Individual farmers and shermen. 3 Bene ts
approval of the SSS. However, to avail of this bene t, the

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Labor Law and Social Legislation Reviewer for the 2022 Bar

member must have complied with the conditions and

AN ESTRANGED wife who was not dependent upon her government employee, Haveria would have been quali ed for
quali cations provided by the said law.
deceased husband for support is not quali ed to be his bene ciary. voluntary coverage under Section 9 (b) of R.A. No. 1161, had he
7) ⭐Unemployment Insurance or Involuntary Separation Death bene ts should not be denied to the wife who was married to
registered as a voluntary member. Consequently, his compulsory
Benefits. — under Section 14-B, provides that an employee coverage while supposedly employed with the SSSEA was erroneous.
the deceased retiree only after the latter's retirement.
who is involuntarily unemployed or separated from work can
avail of this bene t. However, this bene t shall only be availed The reckoning point in determining the bene ciaries of the
once every three (3) years. deceased should be the time of his death. There is no need to look
Philippine Journalist Inc. v.
into the time of retirement. 2013
Journal Employees Union
SSS v. Alba In Aguas, the Court ruled that although a husband and wife are
The coverage of the term legal dependent as used in a stipulation
obliged to support each other, whether one is actually dependent for
An action for remittance of SS monthly contributions is not a type in a CBA granting funeral or bereavement bene t to a regular
support upon the other cannot be presumed from the fact of
of money claim which needs to be led against the estate employee for the death of a legal dependent, if the CBA is silent
marriage alone. A wife who is already separated de facto from her
proceedings. about it, is to be construed as similar to the meaning that
husband cannot be said to be "dependent for support" upon the
contemporaneous social legislations have set. This is because the
WON the term "employer" under the Social Security Act of 1954 may husband, absent any showing to the contrary.
terms of such social legislations are deemed incorporated in or
be applied to Far Alba, the administrator-son of the owner, Arturo
adopted by the CBA.
Alba, Sr., who is directly and actively involved in the operation of the
agricultural undertaking. Bartolome v. SSS 2014 WON petitioner’s denial of respondents’ claims for funeral and
bereavement aid granted under their CBA constituted a diminution
YES. Plainly, Far Alba, as the hacienda administrator, acts as the
Plainly, "dependent parents" are parents, whether legitimate or of benefits in violation of Article 100 of the Labor Code.
legal representative of the employer and is thus an employer
illegitimate, biological or by adoption, who are in need of support or
within the meaning of the law liable to pay the SS YES. The civil status of the employee as either married or single is
assistance.
contributions. not the controlling consideration in order that a person may qualify
as the employee’s legal dependent. What is rather decidedly
The Court sustains the jurisdiction of the Commission over
controlling is the fact that the spouse, child, or parent is
disputes under the Social Security Act "with respect to coverage, Haveria v. SSS 2018 Caguioa, J actually dependent for support upon the employee.
bene ts, contributions and penalties thereon or any other matter
related thereto. Moreover, the Court agrees with the Commission's WON Haveria's inclusion as a compulsory member of the SSS was Petitioner had no basis to deny the claim for funeral and
assertion that an action for remittance of SS monthly valid and consequently, whether he is entitled to receive monthly bereavement aid of Alfante for the death of his parent whose death
contributions is not a type of money claim which needs to be pensions. and fact of legal dependency on him could be substantially proved.
led against the estate proceedings. NO. Haveria was reported by the SSSEA as an employee, and he Pursuant to Article 100 of the Labor Code, petitioner as the
claims coverage as a compulsory member of the SSS. As correctly employer could not reduce, diminish, discontinue or eliminate any
held by the SSC and CA, the SSSEA, a labor organization, bene t and supplement being enjoyed by or granted to its
SSS v. Delos Santos cannot be considered an employer under the law. As a employees.

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Labor Law and Social Legislation Reviewer for the 2022 Bar

the age of majority but is incapacitated and incapable of time because of complete, and permanent loss of any of
self-support due to a mental or physical defect acquired the following body parts. xxx
GSIS Law prior to age of majority; and
B c) Further, there is temporary total disability when a GSIS
GSIS Act of 1997 c) the parents dependent upon the member for support; member is momentarily incapacitated to work or engage
in any gainful occupation as a result of impairment of
2) Primary bene ciaries. — The legal dependent spouse until
1 Coverage and exclusions physical or mental faculties which can be rehabilitated or
he/she remarries and the dependent children;
restored to their normal functions.
1) Membership in the GSIS shall be compulsory for all 3) Secondary bene ciaries. — The dependent parents and,
4) Retirement bene ts are those received by employees upon
employees receiving compensation who have not reached the subject to the restrictions on dependent children, the
reaching the age of retirement which is sixty (60) years of
compulsory retirement age, irrespective of employment status, legitimate descendants.
age. To be entitled thereon, according to Section 13-A of R.A.
except
No. 8291, the following quali cations shall be met:
3 Bene ts
a) members of the Armed Forces of the Philippines and the
a) he has rendered at least fteen (15) years of service;
Philippine National Police, subject to the condition that 1) The separation bene ts are given to GSIS members who are
they must settle rst their nancial obligation with the separated from service or who resigned therefrom provided b) he is at least sixty (60) years of age at the time of
GSIS, and that the quali cations set by law are met by the member retirement; and

b) contractual who have no employer and employee claiming for separation bene ts. c) he is not receiving a monthly pension bene t from
relationship with the agencies they serve. 2) On the other hand, the Unemployment or Involuntary permanent total disability.

2) Except for the members of the judiciary and constitutional Separation Bene ts are given to an employee who, at the 5) Likewise, Survivorship bene ts are given when a member or
commissions who shall have life insurance only, all time of separation from work, pensioner dies, his/her bene ciaries shall be entitled to
members of the GSIS shall have life insurance, retirement, and a) was holding a permanent employment, and survivorship bene ts provided in Sections 21 and 22 of R.A.
all other social security protection such as disability, No. 8291 as stated in Section 20 of said law provided the
b) was separated involuntarily due to the abolition of his/her quali cations set by law are met.
survivorship, separation, and unemployment bene ts.
o ce or position resulting from reorganization.
6) Funeral bene t is given to the bene ciaries of the deceased
2 Dependents and bene ciaries 3) With respect to disability bene ts, member to help them defray the cost of burial, and funeral
a) permanent total disability means disability caused by expenses.
1) Dependents shall be the following:
injury or disease resulting in complete, irreversible, and 7) Life insurance bene ts are given to all GSIS members,
a) the legitimate spouse dependent for support upon the permanent incapacity to work or to engage in any gainful except for Members of the AFP and the PNP.
member or pensioner; occupation,
8) It must be noted that the claims for bene ts under this law
b) the legitimate, legitimated, legally adopted child, b) while there is permanent partial disability when a GSIS shall be led within 4 years from the time of the
including the illegitimate child, who is unmarried, not member is incapacitated to work for a limited period of
gainfully employed, not over the age of majority, or is over

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Labor Law and Social Legislation Reviewer for the 2022 Bar

contingency except claims for life and retirement When an employee is constrained to retire at an early age due to his
YES. In any determination of compensability, the nature and
bene ts. illness and the illness persists even after retirement, resulting in his
characteristics of the job are as important as raw medical ndings
9) Hence, after the contingency such as separation from work, continued unemployment, as in this case, such a condition amounts
and a claimant's personal and social history.
occurrence of disability, or death happens, then the member to total disability which should entitle him to the maximum
bene ts allowed by law. Intoxication which does not incapacitate the employee from
ought to le a claim immediately, in order to avail of the
following his occupation is not su cient to defeat the recovery of
bene ts provided under this law. WON respondent's claim for conversion of his PPD benefits to PTD compensation, although intoxication may be a contributory cause
benefits should be granted. to his injury. While smoking may contribute to the development of
YES. A disability is considered total and permanent if as a result a heart ailment, heart ailment may be caused by other factors such as
Rodrin v. GSIS
of the injury or sickness, the employee is unable to perform any working and living under stressful conditions.
Members of the national police, unless they are on o cial leave, are, gainful occupation for a continuous period exceeding 120 days. Based on the totality of the circumstances surrounding De Castro's
by the nature of their functions, technically on duty 24 hours a day, case, we are convinced that his long years of military service, with its
Disability should be understood not singly through its medical
because policemen are subject to call at any time and may be asked attendant stresses and pressures, contributed in no small measure to
signi cance but, more importantly, in terms of a person's loss of
by their superiors or by any distressed citizen to assist in maintaining the ailments that led to his disability retirement.
earning capacity.
the peace and security of the community.
Permanent total disability means disablement of an employee to
WON the death of SPO1 Rodrin is compensable under PD 626.
earn wages in the same kind of work, or work of a similar nature that
YES. For the compensability of an injury to an employee which he was trained for or accustomed to perform, or any kind of work C Limited Portability Law
results in his disability or death, Section 1(a), Rule III of the which a person of his mentality and attainment could do. It does not
1) "Portability" shall refer to the transfer of funds for the
Amended Rules on Employees' Compensation imposes the mean absolute helplessness but rather an incapacity to perform
account and bene t of a worker who transfers from one
following conditions: gainful work which is expected to be permanent.
system to the other.
1. The employee must have been injured at the place where
2) It refers to instances where a worker transfers from private
his work required him to be;
GSIS v. De Castro employment to government employment, and vice versa,
2. The employee must have been performing his o cial thereby transferring from being SSS member to GSIS
functions; and What the law requires is a reasonable work connection and not member, and vice versa. The transfer of funds is to ensure that
3. If the injury was sustained elsewhere, the employee must direct causal relation. Probability, not the ultimate degree of his/her years of service are duly credited.
have been executing an order of the employer. certainty, is the test of proof in compensation proceedings.
3) "Totalization" shall refer to the process of adding up the
WON De Castro proved that his heart ailments are work-related periods of creditable services or contributions under each of
and/or have been precipitated by his duties with the AFP. the Systems, for purposes of eligibility and computation of
GSIS v. Casco bene ts.

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Labor Law and Social Legislation Reviewer for the 2022 Bar

4) Applying the totalization rule can increase the chances of a

ARTICLE 197. Temporary Total Disability. — Any employee who iv) Permanent complete paralysis of two limbs;
worker to avail of bene ts under the subject law. This may be
sustains an injury or contracts sickness resulting in temporary total
availed of only ONCE. v) Brain injury resulting in incurable imbecility or insanity;
disability shall, for each day of such a disability or fraction thereof,
and
5) Section 3, Rule V provides instances where totalization be paid by the System an income bene t equivalent to ninety (90%)
applies, to wit: percent of his average daily salary credit. vi) Such cases as determined by the Medical Director of the
System and approved by the Commission.
a) If a worker is not quali ed for any bene ts from both ARTICLE 198. Permanent Total Disability. —
Systems; ARTICLE 199. Permanent Partial Disability. — Any employee
a) Any employee who contracts sickness or sustains an injury
who contracts sickness or sustains an injury resulting in permanent
b) If a worker in the public sector is not quali ed for any resulting in his permanent total disability shall, for each month
partial disability shall, for each month not exceeding the period
bene ts in the GSIS; or until his death, be paid by the System during such a disability,
designated herein, be paid by the System during such a disability an
c) If a worker in the private sector is not quali ed for any i) an amount equivalent to the monthly income bene t, income bene t for permanent total disability. xxxx
bene ts from the SSS.
ii) plus ten (10%) percent thereof for each dependent child, CHAPTER VII Death Bene ts
d) If a work quali es for bene ts in both Systems, but not exceeding five, beginning with the youngest and
totalization shall not apply. ARTICLE 200. Death. —
without substitution.
6) Totalization of service credits is only resorted to when the a) The System shall pay to the primary bene ciaries upon the
b) The monthly income bene t shall be guaranteed for ve years,
retiree does not qualify for bene ts in either or both of the death of the covered employee,
and shall be suspended if the employee
Systems. Here, petitioner is quali ed to receive bene ts
i) an amount equivalent to his monthly income bene t,
granted by GSIS, if such right has not yet been exercised. i) is gainfully employed, or
ii) plus ten percent thereof for each dependent child, but
Hence, if an employee is entitled to some bene ts either ii) recovers from his permanent total disability, or
not exceeding five, beginning with the youngest and
from GSIS or SSS, as the case may be, then the rule on
iii) fails to present himself for examination at least once a year without substitution, except as provided for in paragraph (j)
totalization will not apply. (Gamogamo v. PNOC Shipping
upon notice by the System. of Article 167 hereof:
and Transport Corp.)
c) The following disabilities shall be deemed total and Provided, however, That the monthly income bene t shall be
D Disability and Death Benefits permanent: guaranteed for ve years:
Provided, further, That if he has no primary bene ciary, the
i) Temporary total disability lasting continuously for more
1 Labor Code System shall pay to his secondary bene ciaries the monthly
than one hundred twenty days, except as otherwise
income bene t but not to exceed sixty months:
provided for in the Rules;
CHAPTER VI Disability Bene ts Provided, finally, That the minimum death bene t shall not
ii) Complete loss of sight of both eyes;
be less than fteen thousand pesos.
iii) Loss of two limbs at or above the ankle or wrist;

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Labor Law and Social Legislation Reviewer for the 2022 Bar

The general rule is that the employer is liable to pay the heirs of the POEA-SEC. A seafarer’s compliance with such procedure
b) The System shall pay to the primary bene ciaries upon the
deceased seafarer for death bene ts once it is established that he died presupposes that the company-designated physician came up with
death of a covered employee who is under permanent total
during the e ectivity of his employment contract. an assessment before the expiration of the 120-day or 240-day
disability under this Title, eighty (80%) percent of the
periods.
monthly income bene t and his dependents to the dependents' However, the employer may be exempted from liability if he can
pension: successfully prove that the seafarer's death was caused by an injury
directly attributable to his deliberate or willful act.
Provided, That the marriage must have been validly subsisting at Sy v. Phil Transmarine Carriers Inc. 2013
the time of disability:
The quali cation that death must be work-related has made it
Provided, further, That if he has no primary bene ciary, the Kestrel Shipping Co. et al., v. Munar 2013 necessary to show a causal connection between a seafarer’s work
System shall pay to his secondary bene ciaries the monthly
and his death to be compensable. Disability or death must arise
pension excluding the dependents' pension, of the remaining If after the lapse of the 120 or 240 day periods, the seafarer is still
balance of the ve-year guaranteed period: incapacitated to perform his usual sea duties and the company- 1) out of employment, AND
designated physician had not yet declared him t to work or
Provided, finally, That the minimum death bene t shall not be 2) in the course of employment.
permanently disabled, whether total or permanent, the conclusive
less than fteen thousand pesos. WON Sy is entitled to death benefits under the POEA Standard
presumption that the latter is totally and permanently
disabled arises. Contract.
c) The monthly income bene t provided herein shall be the new
amount of the monthly income bene t for the surviving WON Munar is entitled to the maximum compensation benefit as NO. Under the Amended POEA Contract, work-relatedness is
bene ciaries upon the approval of this decree. provided under the POEA Standard Employment Contract. now an important requirement. Work-related injury is de ned as an
injury resulting in disability or death arising out of and in the course
d) Funeral benefit. — A funeral bene t of Three Thousand YES. Under Section 32 of the POEA-SEC, only those injuries or
of employment.
Pesos (P3,000.00) shall be paid upon the death of a covered disabilities that are classi ed as Grade 1 may be considered as total
employee or permanently totally disabled pensioner. and permanent. However, if those injuries or disabilities with a An injury or accident is said to arise "in the course of
disability grading from 2 to 14, hence, partial and permanent, would employment"
incapacitate a seafarer from performing his usual sea duties for a 1. when it takes place within the period of the employment,
POEA-Standard Employment Contract for period of more than 120 or 240 days, depending on the need for
2 2. at a place where the employee reasonably may be, and
Seafarers further medical treatment, then he is, under legal contemplation,
totally and permanently disabled. 3. while he is ful lling his duties or is engaged in doing
something incidental thereto.
In addition, that it was by operation of law that brought forth the
Great Southern Maritime Service Corp., et al., v. Surigao conclusive presumption that Munar is totally and permanently At the time of the accident, AB Sy was on shore leave and there was
disabled, there is no legal compulsion for him to observe the no showing that he was doing an act in relation to his duty as a
procedure prescribed under Section 20-B(3) of the seaman or engaged in the performance of any act incidental thereto.

By RGL 34 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Consequently, his death could not be considered work-related Philman Marine Agency Inc. et al., v. Cabanban 2013 physician, the parties shall jointly agree to refer the matter
to be compensable. to a third doctor whose ndings shall be nal and
The doctor who has had a personal knowledge of the actual medical
binding on both.
condition, having closely, meticulously and regularly monitored and
actually treated the seafarer’s illness, is more quali ed to assess the Here, Armando, in fact, had no ground for a disability claim at the
Nazareno v. Maersk Filipinas Crewing Inc. 2013 En Banc time he led his complaint, as he did not have any su cient
seafarer’s disability.
evidentiary basis to support his claim.
If serious doubt exists on the company-designated physician's WON Armando is entitled to total and permanent disability
declaration of the nature of a seaman's injury and its corresponding benefits. More than this, the disagreement between the ndings of the
impediment grade, resort to prognosis of other competent medical company-designated physician and Armando’s chosen physicians
NO. Section 20-B of the POEA-SEC evidently shows that it is the
professionals should be made. was never referred to a third doctor. Considering the absence of
company-designated physician who primarily assesses the degree of
ndings coming from a third doctor, we sustain the ndings of the
WON under Section 20 of the said POEA-SEC, the disability of a the seafarer’s disability.
NLRC and hold that the certi cation of the
seafarer can only be assessed by the company-designated physician and
1. Upon the seafarer’s repatriation for medical treatment, and company-designated physician should prevail.
not by the seafarer’s own doctor.
during the course of such treatment, the seafarer is under
NO. While it is the company-designated physician who must declare total temporary disability and receives medical allowance
that the seaman su ered a permanent disability during employment, until the company-designated physician declares his tness Austria v. Crystal Shipping 2016
it does not deprive the seafarer of his right to seek a second opinion. to work resumption or determines the degree of the
seafarer’s permanent disability — either total or partial. Pre-existence of an illness does not irrevocably bar compensability
The certi cation of the company-designated physician would defeat
because disability laws still grant the same provided seafarer's
petitioner’s claim while the opinion of the independent physicians 2. The company-designated physician should, however, make
working conditions bear causal connection with his illness.
would uphold such claim. In such a situation, the Court adopts the the declaration or determination within 120 days,
ndings favorable to petitioner. The law looks tenderly on the otherwise, the law considers the seafarer’s disability as WON Austria was entitled to permanent disability benefits despite
laborer. total and permanent. his pre-existing condition.
WON petitioner is entitled to disability benefits based on the findings 3. Should the seafarer still require medical treatment for more YES. For an occupational disease and the resulting disability or
and conclusions, not only of his personal doctors, but also on the than 120 days, the period may be extended, but not to death to be compensable, all of the following conditions must be
findings of the doctors whom he consulted abroad. exceed 240 days. satis ed:
YES. The medical certi cate issued by Dr. Campana cannot be 4. At anytime during this latter period, the 1. The seafarer's work must involve the risks described herein;
given much weight and consideration against the overwhelming company-designated physician may make the declaration or 2. The disease was contracted as a result of the seafarer's
ndings and diagnoses of di erent doctors, here and abroad, that determination. exposure to the described risks;
petitioner was not t for work and can no longer perform his duties
5. In case of disagreement between the ndings of the 3. The disease was contracted within a period of exposure and
as a seafarer.
company-designated physician and the seafarer’s appointed under such other factors necessary to contract it; and

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Labor Law and Social Legislation Reviewer for the 2022 Bar

Quizora v. Denholm 2011 re Pre-Employment Medical the non-disclosure of the stenting procedure.
4. There was no notorious negligence on the part of the
Crew Management Examination
seafarer.
Petitioner's working environment as chef constantly exposed him to PEME is NOT exploratory in nature. It was not intended to be a
totally in-depth and thorough examination of an applicant’s medical Jebsens Maritime v. Alcibar 2019 re Theory of Aggravation
factors that could aggravate his heart condition.
condition. The PEME merely determines whether one is " t to In Leonis Navigation Co., Inc. v. Villamater, this Court held that
Compensability of an ailment does not depend on whether the work" at sea or " t for sea service," it does not state the real state of under Section 32-A of the POEA Standard Employment Contract,
injury or disease was pre-existing at the time of the employment but health of an applicant. In short, the " t to work" declaration in the colon cancer is considered a work-related disease. This Court
rather if the disease or injury is work-related or aggravated respondent’s PEME cannot be a conclusive proof to show that he explained that the seaman is entitled to disability bene ts if the
his condition. It is not necessary, in order for an employee to was free from any ailment prior to his deployment.
recover compensation, that he must have been in perfect condition seaman proves that the conditions inside the vessel increased or
or health at the time he received the injury, or that he be free from aggravated the risk of the seaman of colon cancer.
disease.
Doroteo v. Philimare, Inc 2017 re Clear Nexus Rule

Here, there is no clear nexus between the disease Doroteo acquired V Labor Relations
Dizon v. Naess Shipping Phils 2016 and the working conditions he encountered. Therefore, the
disputable presumption of work-relation cannot be applied, since Right to self-organization
The three-day period from return of the seafarer or sign-o from based on the evidence presented the Court cannot reasonably
the vessel, whether to undergo a post-employment medical conclude that his work as an engineer in the engine room led to Who may join, form, or assist labor organizations or
examination or report the seafarer's physical incapacity, should Dorotea's throat cancer. workers’ associations
always be complied with to determine whether the injury or illness is
work-related. Restrictions
WON Dizon is entitled to disability benefits. Leoncio v. MST Determination of appropriate bargaining unit
2017 re Medical Procedure
Marine Services
NO. The law speci cally declares that failure to comply with the (ABU), e ect of inclusion of employees outside of
mandatory reporting requirement shall result in the seafarer's Nothing can be plainer than the meaning of the word "illness" as
the ABU
forfeiture of his right to claim benefits thereunder. referring to a disease or injury a icting a person's body. By the
Dizon’s coronary artery disease which rendered him un t for sea doctrine of noscitor a sociis, "condition" likewise refers to the state of Non-interference with workers’ rights to
duty was diagnosed during a pre-employment medical one's health. Neither of these words refers to a medical self-organization
examination and not in a post-employment medical procedure undergone by a seafarer in connection with an "illness or
examination as provided by law. condition" already known to the employer. Legitimate labor organizations
Thus, the employer cannot validly decry his supposed concealment Registration with the DOLE
and fraudulent misrepresentation of Leoncio's illness on account of

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Labor Law and Social Legislation Reviewer for the 2022 Bar

Cancellation of registration Collective bargaining agreement (CBA), mandatory Injunctions

A liation/disa liation from national union or provisions

A Right to self-organization
federation Signing, posting, registration
ART 253. Coverage and Employees' Right to Self-Organization. — All
Rights of legitimate labor organizations Term of CBA, freedom period
persons employed in commercial, industrial and agricultural
Rights and conditions of membership in legitimate Unfair Labor Practices enterprises and in religious, charitable, medical, or educational
labor organizations institutions, whether operating for pro t or not, shall have the right
Nature, aspects
to self-organization and to form, join, or assist labor organizations of
Check o , assessments, union dues, and agency fees By employers their own choosing for purposes of collective bargaining.
Ambulant, intermittent and itinerant workers, self-employed
Union security clause By labor organizations people, rural workers and those without any de nite employers may
Bargaining representative Peaceful concerted activities form labor organizations for their mutual aid and protection.

Modes to acquire status as Sole and Exclusive Strikes ART 254. Right of Employees in the Public Service. — Employees of
Bargaining Agent (SEBA) Grounds for strike
government corporations established under the Corporation Code
shall have the right to organize and to bargain collectively with their
SEBA Certi cation
Mandatory procedural requirements respective employers. All other employees in the civil service shall
Certi cation/Consent Election have the right to form associations for purposes not contrary to
Legal strike vs. illegal strike
law.
Bars to the holding of Certi cation/Consent Prohibited acts during strike
Election
Liability of union o cers and members for Who may join, form, or assist labor
1
Failure of election, Run-O Election, Re-run organizations or workers’ associations
illegal strike and illegal acts during strike
election
Picketing Quali ed Disquali ed
Employer as a mere bystander rule
Lockouts Those employed in commercial, EEs of GOCCs under Special
Collective bargaining industrial and agricultural charters;
Grounds for lockout
Duty to bargain collectively, bargaining in bad faith enterprises; Managerial EEs;
Mandatory procedural requirements EEs of GOCCs WITHOUT They are those who are
Assumption of jurisdiction by the DOLE Secretary original charters (Corpo Code); vested with powers or

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Labor Law and Social Legislation Reviewer for the 2022 Bar

EEs of religious, charitable, prerogatives to lay down 1) Con dential employees, by Doctrine of Necessary
NO. Complainant failed to present evidence to justify his claim. He
medical or educational and execute management Implication, are also disquali ed for union membership.
failed to su ciently establish that there is an established company
institutions, for pro t or not; policies and/or hire, They are those who
practice of extending the CBA concessions to managerial employees.
transfer, suspend, lay-o , a) assist or act in a con dential capacity in regard To be considered as a company practice, the act of extending the
Alien EEs
recall, discharge, assign or bene ts of the CBA to managerial employees must have been
1. Working in the country; discipline employees. b) to persons who formulate, determine, and e ectuate
practiced for a long period of time and must be shown to be
2. With valid working permits management policies, speci cally in the eld of labor
Supervisory EEs are consistent and deliberate.
issued by DOLE; relations.
RELATIVELY prohibited
3. Nationals of countries in that they are not allowed 2) For the disquali cation to apply
granting same rights to to join unions of rank and a) He must be in a duciary relationship with another to Determination of appropriate bargaining unit
Filipinoworkers le by virtue of separation whom he reports or whom he assists; 3 (ABU), e ect of inclusion of employees outside
(RECIPROCITY rule); of unions doctrine.
b) The latter possesses labor-management relations of the ABU
and Con dential EEs
information; and
4. Country of origin has 1) A "bargaining unit" has been de ned as a group of
Members of a Cooperative;
rati ed ILO 87 and 98 as c) He has access to that information by reason of his employees of a given employer, comprised of all or less than all
Owners cannot bargain position.
certi ed by DFA. of the entire body of employees, which the collective interest
with themselves.
All other workers FOR mutual 3) The disquali cation will NOT apply if of all the employees, consistent with equity to the employer,
Members of International Orgs; indicate to be the best suited to serve the reciprocal rights and
aid and protection and NOT for a) The information is business information; and
collective bargaining; By doctrine of duties of the parties under the collective bargaining provisions
incorporation, they are b) The information may be labor-management relations in of the law. (UP v. Ferrer-Calleja)
Security guards;
immune from suit. nature but the employee’s access thereto is accidental only.
2) The factors in determining the appropriate collective
Workers in EPZs.
bargaining unit are
Societe Internationale De
2018 a) the will of the employees (Globe Doctrine);
Telecommunications v. Huliganga
Restrictions b) a nity and unity of the employees' interest, such as
Managerial employees are not eligible to join, assist or form any
as to managerial employees, supervisory employees, confidential labor organization. An exception to this prohibition is when the substantial similarity of work and duties, or similarity
2
employees, employee-members of cooperatives, alien employees, employer extends the CBA bene ts to the managerial employee as a of compensation and working conditions
and government employees matter of policy or established practice. (Substantial Mutual Interests Rule);

WON Huliganga, as a managerial employee, is entitled to the same c) prior collective bargaining history; and
Doctrine of necessary implication
retirement benefits as those of rank-and-file employees. d) similarity of employment status.

By RGL 38 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

3) The basic test of an asserted bargaining unit's acceptability is concerted activities for the same purpose for their mutual aid and i) independent labor unions,
whether or not it is fundamentally the combination which protection, subject to the provisions of Article 264 of this Code.
ii) chartered locals,
will best assure to all employees the exercise of their collective
bargaining rights. (ISAE v. Quisumbing) GR: The right of any person to join an organization also iii) workers' associations.

4) Commingling or mixture of membership. — includes the right to leave that organization and join b) Bureau or the Regional O ces, but shall be
Mixed-membership is NOT a ground for the cancellation of a another one. processed by the Bureau
union’s certi cate of registration. The grounds are limited to EXC: The right to refrain from joining labor organizations is, i) federations,
the following: however, limited. It is withdrawn by operation of law,
ii) national unions or
a) Fraud in the rati cation of Constitution and Bylaws; where the parties have agreed on a closed shop.
iii) workers' associations
b) Fraud in election of o cers; EXC TO THE EXC
operating in more than one region. (Sec 1 Rule III Book 5)
c) Voluntary dissolution a) Members of the religious sect which prohibit a liation of
their members in such labor organization (1974 Basa); 2) Requirements for Application. —
i) By ⅔ of members;
b) Employees who are already members of another union at a) independent labor union. — the name of all its
ii) In a meeting called for the purpose;
the time of the signing of the CBA (Art 248 [e]); members comprising at least 20% of the employees in the
iii) An application to cancel submitted by the board bargaining unit; (Sec 2-A Rule III Book 5)
c) Con dential employees who are excluded from the
attested to by the president;
bargaining unit (2010 Bank of Phil Islands); b) federations and national unions. — the resolution of
iv) Filed in the RO which issued the Certi cate of a liation of at least ten (10) legitimate labor
d) Employees excluded by express terms of the agreement.
Registration. organizations, whether independent unions or chartered
Non-interference with workers’ rights to locals, each of which must be a duly certi ed or
4 B Legitimate labor organizations recognized bargaining agent in the establishment where it
self-organization
"Legitimate Labor Organization" refers to any labor seeks to operate. (Sec 2-B Rule III Book 5)

ART 257. Non-Abridgment of Right to Self-Organization. — It shall organization in the private sector registered or reported with the 3) Denial of Application. — Where the documents supporting
be unlawful for any person to restrain, coerce, discriminate against Department in accordance with Rules III and IV of the Omnibus the application for registration are incomplete or do not
or unduly interfere with employees and workers in their exercise of Rules. contain the required certi cation and attestation, the Regional
the right to self-organization. O ce or the Bureau shall, within one (1) day from receipt of
1 Registration with the DOLE the application, notify the applicant concerned in writing of
Such right shall include the right to form, join, or assist labor
organizations for the purpose of collective bargaining through 1) Where to file. — the necessary requirements and to complete the same within
representatives of their own choosing and to engage in lawful thirty (30) days from receipt of notice.
a) Regional O ce where the applicant principally
operates.

By RGL 39 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Where the applicant concerned fails to complete the In the case of federations, national or industry unions and c) an application to cancel its registration is thereafter
requirements within the time prescribed, the application for trade union centers, the bureau director may cancel the submitted by the board of the organization to the
registration shall be denied, without prejudice to ling a new registration. (Sec 1 Rule XIV Book 5) regional/bureau director, as the case may be.
application. (Sec 5 Rule IV Book 5)
2) Who May File. — Any party-in-interest may commence a d) The application shall be attested to by the president of the
4) Appeal. — The denial may be appealed to petition for cancellation of registration, except in actions organization. (Sec 4 Rule XIV Book 5)
involving violations of Article 241, which can only be
a) the Bureau if denial is made by the Regional O ce or 6) Prohibited Grounds for Cancellation of Registration. —
commenced by members of the labor organization concerned.
The inclusion as union members of employees who are
b) the Secretary if denial is made by the Bureau, (Sec 2 Rule XIV Book 5)
outside the bargaining unit shall NOT be a ground to cancel
within ten (10) days from receipt of such notice, on the 3) Effect of a Petition for Cancellation of Registration. — the union registration. The ineligible employees are
ground of grave abuse of discretion or violation of these Rules. A petition for cancellation of union registration shall not automatically deemed removed from the list of membership
The memorandum of appeal shall be led with the Regional suspend the proceedings for certi cation election nor shall it of the union.
O ce or the Bureau that issued the denial. prevent the ling of a petition for certi cation election. (ART
The a liation of the rank-and- le and supervisory unions
246.)
The Bureau or the O ce of the Secretary shall decide the operating within the same establishment to the same
appeal within twenty (20) days from receipt of the records of 4) Grounds for Cancellation. — federation or national union shall NOT be a ground to cancel
the case. (Sec 6-7 Rule IV Book 5) the registration of either union. (Sec 6 Rule XIV Book 5)
a) misrepresentation, false statement or fraud in connection
5) Effect of Registration. — The labor union or workers' with the adoption or rati cation of the constitution and
by-laws or amendments thereto, the minutes of A liation/disa liation from national union
association shall be deemed registered and vested with legal 3
rati cation, the list of members who took part in the or federation
personality on the date of issuance of its
rati cation;
a) certi cate of registration or
Philippine Skylanders v. NLRC
b) misrepresentation, false statements or fraud in connection
b) certi cate of creation of chartered local.
with the election of o cers, minutes of the election of The sole essence of a liation is to increase, by collective action, the
Such legal personality may be questioned ONLY through an o cers, and the list of voters; or common bargaining power of local unions for the e ective
independent petition for cancellation of union enhancement and protection of their interests.
c) voluntary dissolution by the members. (Sec 3 Rule XIV
registration, and NOT by way of collateral attack in petition
Book 5) Yet the local unions remain the basic units of association, free to
for certi cation election proceedings. (Sec 8 Rule IV Book 5)
5) Voluntary Cancellation. — serve their own interests subject to the restraints imposed by the
constitution and by-laws of the national federation, and free also to
2 Cancellation of registration a) at least two thirds (2/3) of its general membership votes to
renounce the a liation upon the terms laid down in the
dissolve the organization
1) Where to file. — The petition for cancellation or application agreement which brought such a liation into existence.
for voluntary dissolution shall be led in the regional o ce b) in a meeting duly called for that purpose and
which issued its certi cate of registration or creation.

By RGL 40 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

National Union of Bank Employees v. PEMA 2013 5) To sue and be sued in its registered name; and
(b) For union dues, in cases where the right of the worker or his
A local union has the right to disa liate from its mother union or 6) To undertake all other activities designed to bene t the union to check-o has been recognized by the employer or
declare its autonomy. A local union, being a separate and voluntary organization and its members, including cooperative, authorized in writing by the individual worker concerned;
association, is free to serve the interests of all its members including housing, welfare and other projects not contrary to law.
the freedom to disa liate or declare its autonomy from the 7) The income and the properties of legitimate labor 1) There may be some SPECIAL ASSESSMENTS:
federation which it belongs to when circumstances warrant, in organizations, including grants, endowments, gifts, donations a) Authorized by a written resolution of majority of all
accordance with the constitutional guarantee of freedom of and contributions they may receive from fraternal and similar members; AND
association. organizations, local or foreign, which are actually, directly and
b) Purpose is stated.
exclusively used for their lawful purposes, shall be free from
taxes, duties and other assessments. (ART 251.) 2) Union Dues vs. Agency Fees. — Assessment of agency fees
4 Rights of legitimate labor organizations from non-union employees and deduction thereof from the
Rights and conditions of membership in employees’ salaries (Art 248[e]) even in the absence of
1) To act as the representative of its members for the purpose 5 individual written authorization if the non-union employees
legitimate labor organizations
of collective bargaining; accept the bene ts under the CBA.
1) POLITICAL Rights — 5 YEAR term for o cers.
2) To be certi ed as the exclusive representative of all the 3) The union’s right to agency fees is neither contractual nor
employees in an appropriate bargaining unit for purposes of 2) Right to INFORMATION; statutory but quasi-contractual.
collective bargaining;
3) Deliberative and Decision-Making Right; 4) Requisites for validity of union dues and special
3) To be furnished by the employer, upon written request, with assessments
4) Rights over MONEY matters.
its annual audited nancial statements, including the
See ART 250 for a full list. a) Authorization by a written resolution of the majority of
balance sheet and the pro t and loss statement,
all the members at a general membership meeting duly
a) within thirty (30) calendar days from the date of called for the purpose;
Check o , assessments, union dues, and agency
receipt of the request, after the union has been duly 6
fees b) Secretary’s record of the minutes of said meeting;
recognized by the employer or certi ed as the sole and
exclusive bargaining representative of the employees c) Individual written authorization (IWA) for check-o duly
in the bargaining unit, or ART 113. Wage Deduction. — No employer, in his own behalf or in signed by the employees concerned.
behalf of any person, shall make any deduction from the wages of his
b) within sixty (60) calendar days before the expiration employees, except: 5) When not to require IWA
of the existing collective bargaining agreement, or
xxxx a) Assessment from non-members of SEBA of agency fees;
during the collective bargaining negotiation;
b) Deductions for fees from mandatory activities such as
4) To own property, real or personal, for the use and bene t of
labor relations seminars;
the labor organization and its members;

By RGL 41 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

c) Withholding tax; d) Consent election. 3) In an organized establishment. — RD shall refer the same
to the mediator-arbiter for the determination of the
d) EE’s debt to ER which is already due and demandable;
SEBA Certi cation propriety of conducting a certi cation election.
e) Judgment against the worker where wages may be subject a
of attachment or execution but only for debts incurred for DOLE DO 40-I-2015
b Certi cation/Consent Election
food, clothing, shelter, and medical attendance.
1) In an unorganized establishment with 1 LLO. — the RD
1) Who may file?
f) Via court order; shall call a conference within ve (5) work days for the
submission of the following: a) LLO. —
g) Authorized by law such as premiums for SSS,
PhilHealth, Pag-ibig. a) the names of employees in the covered bargaining unit i) Independent union;
who signify their support for the certi cation, provided ii) National union or federation;
7 Union security clause that said employees comprise at least majority of the
iii) Local chapter.
covered BU; and
A “union security clause” is a stipulation in the CBA whereby b) Employer, when requested to bargain collectively, and the
the management recognizes that the membership of employees in b) certi cation under oath by the president of the requesting
majority status of the requesting party is in doubt.
the union which negotiated said agreement should be maintained union or local that all documents submitted are true and
and continued as a condition for employment or retention of correct. c) If in an organized establishment, the signature of at
employment. least 25% of all employees in the bargaining unit is
If the requesting union or local fails to complete the
required.
requirements for SEBA certi cation during the conference,
C Bargaining representative the request for SEBA certi cation shall be referred to the 2) Venue and Jurisdiction. — With the Regional O ce
election officer for the conduct of election. which issued the petitioning union's certi cate of registration
Exclusive bargaining agent. — Refers to any legitimate labor
or certi cate of creation of chartered local.
organization duly recognized or certi ed as the sole and exclusive Action On The Submission. — RD shall issue during the
bargaining agent of all the employees in a bargaining unit. conference a certi cation as SEBA. The petition shall be heard and resolved by the
Mediator-Arbiter.
Effect Of Certification. — Upon the issuance of the
Modes to acquire status as Sole and Exclusive
1 certi cation as SEBA, the certi ed union or local shall enjoy all 3) When to File? A petition for certi cation election may be
Bargaining Agent (SEBA)
the rights and privileges of an exclusive bargaining agent of all led anytime, except:
Four (4) ways of determining a bargaining agent: the employees in the covered bargaining unit
a) when a valid certi cation, consent or run-o election has
a) Request for SEBA certi cation; 2) In an unorganized establishment with > 1 LLO. — RD been conducted within the bargaining unit within one (1)
shall refer the same to the election o cer for the conduct of year prior to the ling of the petition for certi cation
b) Certi cation election;
certi cation election. election;
c) Run-o election; OR

By RGL 42 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

there being a valid election, the SEBA, shall be proclaimed by

b) when the duly certi ed union has commenced and 5) Order of Election
the Med-Arbiter under any of the following conditions:
sustained negotiations in good faith with the employer Granted Denied
in accordance with the said one year period; a) no protest was led or, even if one was led, the same
Unorganized was not perfected within the ve-day period for
c) when a bargaining deadlock had been submitted to
perfection of the protest;
conciliation or arbitration or had become the subject of a
shall not be subject to appeal. Appeal to SOLE within
valid notice of strike or lockout; b) no challenge or eligibility issue was raised or, even if
le protest on the conduct ten (10) days from
one was raised, the resolution of the same will not
d) when a CBA has been registered. The petition may be and results of the certi cation receipt
materially change the results of the elections.
led only within sixty (60) days prior to its expiry election.
(FREEDOM PERIOD). The winning union shall have the rights, privileges and
Organized obligations of a duly certi ed collective bargaining agent
4) Grounds to Deny Petition.
from the time the certification is issued.
a) the petitioner is not listed in the department's registry Appeal to SOLE within ten (10) days from receipt
8) Appeal. — The decision of the Med-Arbiter may be appealed
of legitimate labor unions or that its registration
a) The ling of the memorandum of appeal from the order to the Secretary within ten (10) days from receipt.
certi cate has been cancelled with nality;
or decision of the Med-Arbiter stays the holding of any
9) Consent Election. — Refers to the election voluntarily
b) failure to submit a duly issued charter certi cate; certification election.
agreed upon by the parties, with or without the intervention
c) ling the petition before or after the freedom period; b) The decision of the Secretary shall become nal and of the DOLE, to determine the issue of majority
d) ling of a petition within one (1) year from the date of executory after ten (10) days from receipt thereof by representation of all the workers in the appropriate collective
a valid election; the parties. No motion for reconsideration of the bargaining unit.
decision shall be entertained.
e) where a duly certi ed union has commenced and
6) Inclusion-exclusion proceeding Asian Institute of Management v. Asian
sustained negotiations with the employer within the 2017
Institute of Management Faculty Association
one-year period, or a) All employees who are members of the appropriate
bargaining unit three (3) months prior to the ling of In case of alleged inclusion of disquali ed employees in a union,
where there exists a bargaining deadlock;
the petition/request shall be eligible to vote. the proper procedure for an employer is to directly file a petition
f) in an organized establishment, the failure to submit the for cancellation of the union's certi cate of registration due to
25% signature requirement; b) An employee who has been dismissed from work but
misrepresentation, false statement or fraud.
has contested the legality of the dismissal in a forum
g) non-appearance of the petitioner for two (2) consecutive of appropriate jurisdiction. WON the BLR was correct in holding that being composed of
scheduled conferences; and managerial employees is not a ground for canceling the certificate of
7) Proclamation and Certification of the Result of the
h) absence of EER between all the members of the registration of a labor organization.
Election. — Within 24 hours from nal canvass of votes,
petitioning union and the establishment where the
proposed bargaining unit is sought to be represented.

By RGL 43 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

g) when there is a schism in the union resulting in an c) A re-run election is then called.
NO. Petitioner was correct in ling a petition for cancellation of
industrial dispute wherein the CBA can no longer foster
respondent's certi cate of registration. Petitioner's sole ground for 2) Run-off Election. — Refers to an election between the labor
industrial peace.
seeking cancellation of respondent's certi cate of registration — unions receiving the two (2) highest number of votes when a
that its members are managerial employees and for this reason, its 2) Deadlock Bar rule. — neither may a representation question certi cation election which provides for three (3) or more
registration is thus a patent nullity for being an absolute violation of be entertained if: choices results in no choice receiving a majority of the valid
Article 245 of the Labor Code which declares that managerial votes cast; provided, that the total number of votes for all
a) before the ling of a petition for certi cation election, the
employees are ineligible to join any labor organization — is, in a contending unions is at least fty percent (50%) of the
duly recognized or certi ed union has commenced
sense, an accusation that respondent is guilty of misrepresentation number of votes cast.
negotiations with the employer within the one-year
for registering under the claim that its members are not managerial
period; or 3) Re-run election. — Refers to an election conducted
employees.
b) a bargaining deadlock had been submitted to conciliation a) to break a tie between contending unions, including
or arbitration or had become the subject of valid notice of between "no union" and one of the unions.
strike or lockout.
Bars to the holding of Certi cation/Consent b) after a failure of election has been declared by the election
c
Election 3) Certification Year Bar rule. — A certi cation election o cer and/or a rmed by the mediator-arbiter.
petition may not be filed within one (1) year:
1) Contract Bar rule. — BLR shall not entertain any petition c) When the certi cation election is nulli ed.
for certi cation election or any other action which may a) from the date of a valid certi cation, consent or run-o
disturb the administration of duly registered existing collective election; or e Employer as a mere bystander rule
bargaining agreements a ecting the parties. The exceptions b) from the date of SEBA certi cation. Role of Employer. — Merely a bystander and may only
are as follows:
participate:
a) during the 60-day freedom period; Failure of election, Run-O Election, Re-run
d a) By being furnished a copy of the petition; and
election
b) when the CBA is not registered with the BLR or DOLE
b) By providing the list of employees in the unit for
Regional O ces; 1) Failure of Election. —
pre-election.
c) when the CBA, although registered, contains provisions a) Where the number of votes cast is less than the majority
lower than the standards xed by law; of the number of eligible voters and there are no D Collective bargaining
material challenged votes.
d) when the documents supporting its registration are
falsi ed, fraudulent or tainted with misrepresentation; b) It shall not bar the ling of a motion for the immediate ART 261. Procedure in Collective Bargaining. — The following
holding of another certi cation or consent election procedures shall be observed in collective bargaining:
e) when the CBA is not complete;
within six (6) months from date of declaration of failure
f) when the CBA was entered into prior to the 60-day of election.
freedom period;

By RGL 44 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

The “No Strike, No Lockout” clause is inapplicable to prevent

a. When a party desires to negotiate an agreement, it shall 3. executing a contract incorporating such agreements if a strike or lockout which is grounded on ULP.
serve a written notice upon the other party with a requested by either party but such duty does not compel
4) Provision on wage increases.
statement of its proposals. any party to agree to a proposal or to make any concession.
5) What are the remedies in case of CBA deadlock? In case of
The other party shall make a reply thereto not later than
a deadlock in the negotiation or renegotiation of the collective
ten (10) calendar days from receipt of such notice;
bargaining agreement, the parties may exercise the following
Collective bargaining agreement (CBA),
b. Should di erences arise, either party may request for a 2 rights under the Labor Code:
mandatory provisions
conference which shall begin not later than ten (10) a) Conciliation and mediation by the NCMB, DOLE.
calendar days from the date of request. 1) A collective bargaining agreement or CBA is the negotiated
contract between a legitimate labor organization and the b) Declaration of a strike or lockout, as the case may be.
c. If the dispute is not settled, the Board shall intervene and
employer concerning wages, hours of work and all other terms c) Referral of case to compulsory or voluntary arbitration.
immediately call the parties to conciliation meetings;
and conditions of employment in a bargaining unit.
d. xxx and 3 Signing, posting, registration
2) Thus, where the CBA is clear and unambiguous, it becomes
e. The Board shall exert all e orts to settle disputes amicably the law between the parties and compliance therewith is
and encourage the parties to submit their case to a mandated by the express policy of the law. Sec 7 Rule XVI Book 5. Posting and Registration of Collective
voluntary arbitrator. Bargaining Agreement. — Two (2) signed copies of collective
Mandatory provisions in a CBA bargaining agreement reached through multi-employer bargaining
1) Grievance Procedure. — They shall establish a machinery shall be posted for at least ve (5) days in two conspicuous areas in
for the adjustment and resolution of grievances arising from each workplace of the employer units concerned. Said collective
Duty to bargain collectively, bargaining in bad
1 bargaining agreement shall a ect only those employees in the
faith a) the interpretation or implementation of their CBA and
bargaining units who have rati ed it.
b) the interpretation or enforcement of company personnel
ART 263. Meaning of Duty to Bargain Collectively. — The duty to policies. The same collective bargaining agreement shall be registered with the
bargain collectively means Department xxxx.
2) Voluntary Arbitration. — All grievances submitted to the
1. the performance of a mutual obligation to meet and grievance machinery which are not settled within seven (7) Sec 1 Rule XVII. Where to File. — Within thirty (30) days from
convene promptly and expeditiously in good faith calendar days from the date of its submission shall execution of a collective bargaining agreement, the parties thereto
automatically be referred to voluntary arbitration prescribed shall submit two (2) duly signed copies of the agreement to the
2. for the purpose of negotiating an agreement with respect to
in the CBA. Regional O ce which issued the certi cate of
wages, hours of work and all other terms and conditions of
employment including proposals for adjusting any 3) “No Strike, No Lockout” Clause. — No strike or lockout registration/certi cate of creation of chartered local of the labor
grievances or questions arising under such agreement and shall occur during the e ectivity of the CBA. However, this union-party to the agreement. Where the certi cate of creation of
only applies if the ground relied upon is economic in nature. the concerned chartered local was issued by the Bureau of Labor

By RGL 45 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Relations, the agreement shall be led with the Regional O ce 5) Registration of CBA. The CBA shall be registered with the
The memorandum of appeal shall be led with the Regional O ce
which has jurisdiction over the place where it principally operates. DOLE.
or the Bureau, as the case may be. The same shall be transmitted,
Multi-employer collective bargaining agreements shall be led with together with the entire records of the application, to the Bureau or
the Bureau. the O ce of the Secretary, as the case may be, within twenty-four 4 Term of CBA, freedom period
(24) hours from receipt of the memorandum of appeal.
Sec 4 Rule XVII. Action on the Application. — The Regional O ce ART 264. Duty to Bargain Collectively When There Exists a CBA. —
and the Bureau shall act on applications for registration of collective 1) Posting of CBA. The general rule is that the CBA is required When there is a CBA, the duty to bargain collectively shall also mean
bargaining agreements within one day from receipt thereof, either by: to be posted in two (2) conspicuous places in the work that neither party shall terminate nor modify such agreement during
premises, for a period of at least ve (5) days prior to its its lifetime.
a) approving the application and issuing the certi cate of
rati cation. Freedom period. — However, either party can serve a written
registration;
In the case of multi-employer bargaining, two (2) signed copies notice to terminate or modify the agreement at least sixty (60)
b) denying the application for failure of the applicant to
of the CBA should be posted for at least ve (5) days in two days prior to its expiration date. It shall be the duty of both
comply with the requirements for registration.
(2) conspicuous areas in each workplace of the employer units parties to keep the status quo and to continue in full force and e ect
Where the documents supporting the application are not complete concerned. Said CBA shall affect only those employees in the terms and conditions of the existing agreement during the
or are not veri ed under oath, the Regional O ce or the Bureau the bargaining units who have ratified it. 60-day period and/or until a new agreement is reached by the parties.
shall, within one day from receipt of the application, notify the
2) Posting is mandatory. This requirement on the posting of
applicants in writing of the requirements needed to complete the ART 265. Terms of a Collective Bargaining Agreement. — Any CBA
the CBA is considered a mandatory requirement.
application. Where the applicants fail to complete the requirements that the parties may enter into shall, insofar as the representation
Non-compliance therewith will render the CBA ine ective.
within ten (10) days from receipt of notice, the application shall be aspect is concerned, be for a term of ve (5) years.
(Associated Trade Unions [ATU] v. Trajano).
denied without prejudice. No petition questioning the majority status of the incumbent
3) Posting is the responsibility of the employer. The posting bargaining agent shall be entertained and no certi cation election
Sec 5 Rule XVII. Denial of Registration; Grounds for Appeal. — The of copies of the CBA is the responsibility of the employer shall be conducted by the DOLE outside of the sixty (60) day
denial of registration shall be in writing, stating in clear terms the which can easily comply with the requirement through a mere period immediately before the date of expiry of such ve-year
reasons therefor and served upon the applicant union and employer mechanical act. (Associated Labor Union [ALU] vs. term of the CBA.
within twenty-four (24) hours from issuance. The denial by the Ferrer-Calleja).
Regional O ce of the registration of single enterprise collective All other provisions of the CBA shall be renegotiated not later
4) Rati cation by majority of the members of the than three (3) years after its execution.
bargaining agreements may be appealed to the Bureau within ten
bargaining unit. The rati cation of the CBA should be
(10) days from receipt of the notice of denial. The denial by the Any agreement on such other provisions of the CBA entered into
made not by the majority of the members of the bargaining
Bureau of the registration of multi-employer collective bargaining within six (6) months from the date of expiry of the term of such
union but by the majority of the members of the
agreements may be appealed to the O ce of the Secretary within other provisions as xed in such CBA, shall retroact to the day
bargaining unit which is being represented by the
the same period. immediately following such date.
bargaining union in the negotiations.

By RGL 46 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

by the employees’ dependents, that is, excluding the amounts paid civil aspects of all cases involving unfair labor practices, which
If any such agreement is entered into beyond six months, the
by dependents’ other health insurance providers. may include claims for actual, moral, exemplary and other
parties shall agree on the duration of retroactivity thereof. In
forms of damages, attorney's fees and other a rmative relief,
case of a deadlock in the renegotiation of the CBA, the parties may Since the subject CBA provision is an insurance contract, the rights
shall be under the jurisdiction of the Labor Arbiters.
exercise their rights under this Code. and obligations of the parties must be determined in accordance
with the general principles of insurance law. Being in the nature of a The Labor Arbiters shall resolve such cases within thirty (30)
non-life insurance contract and essentially a contract of indemnity, calendar days from the time they are submitted for decision.
the CBA provision obligates MMPC to indemnify the covered
Hongkong Bank Independent Labor Union v. HSBC 2018 Recovery of civil liability in the administrative proceedings
employees’ medical expenses incurred by their dependents but only
shall bar recovery under the Civil Code.
WON HSBC could validly enforce the credit-checking requirement up to the extent of the expenses actually incurred. This is consistent
under its BSP-approved Plan in processing the salary loan with the principle of indemnity which proscribes the insured from No criminal prosecution may be instituted without a final
applications of covered employees even when the said requirement is recovering greater than the loss. judgment nding that an unfair labor practice was committed,
not recognized under the CBA. having been rst obtained. The nal judgment in the administrative
proceedings shall not be binding in the criminal case nor be
NO. The Plan was never made part of the CBA. Tolerating HSBC's
considered as evidence of guilt but merely as proof of compliance
conduct would be tantamount to allowing a blatant circumvention E Unfair Labor Practices of the requirements therein set forth.
of Article 253. It would contravene the express prohibition against
the unilateral modi cation of a CBA during its subsistence 1 Nature, aspects
and even thereafter until a new agreement is reached.
2 By employers
HSBC's enforcement of credit checking on salary loans under the ART 258. Concept of Unfair Labor Practice and Procedure for
CBA invalidly modi ed the latter's provisions thereon through the Prosecution Thereof. — Unfair labor practices violate the 1) To interfere with, restrain or coerce employees in the
imposition of additional requirements which cannot be constitutional right of workers and employees to exercise of their right to self-organization;
found anywhere in the CBA. self-organization, are inimical to the legitimate interests of
2) Yellow Dog Contract. To require as a condition of
both labor and management, including their right to bargain
employment that a person or an employee shall not join a
collectively and otherwise deal with each other in an atmosphere of
labor organization or shall withdraw from one to which he
Mitsubishi Motors Phils Salaried Employees freedom and mutual respect, disrupt industrial peace and hinder the
2013 belongs;
Union v. Mitsubishi Motors Phils Corp. promotion of healthy and stable labor-management relations.
3) To contract out services or functions being performed by
WON member-employees are entitled to full reimbursement of Consequently, unfair labor practices are not only violations of the
union members when such will interfere with, restrain or
medical expenses incurred by their dependents regardless of any civil rights of both labor and management but are also criminal
coerce employees in the exercise of their right to
amounts paid by the latter’s health insurance provider. o enses against the State.
self-organization;
NO. The conditions set forth in the CBA provision indicate an Subject to the exercise by the President or by the SOLE of the
4) To initiate, dominate, assist or otherwise interfere with
intention to limit MMPC’s liability only to actual expenses incurred powers vested in them by Articles 263 and 264 of this Code, the
the formation or administration of any labor organization,

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including the giving of nancial or other support to it or its themselves, frequently were held to be culpable because of the right to prescribe its own rules with respect to the
organizers or supporters; the circumstances under which they were uttered, the acquisition or retention of membership;
history of the particular employer's labor relations or
5) To discriminate in regard to wages, hours of work and other 2) To cause or attempt to cause an employer to discriminate
anti-union bias or because of their connection with an
terms and conditions of employment in order to encourage against an employee, including discrimination against an
established collateral plan of coercion or interference.
or discourage membership in any labor organization. employee with respect to whom membership in such
organization has been denied or to terminate an employee on
6) To dismiss, discharge or otherwise prejudice or discriminate SONEDCO v. Universal Robina 2016
any ground other than the usual terms and conditions under
against an employee for having given or being about to
An employer who refuses to bargain with the union and tries to which membership or continuation of membership is made
give testimony under this Code;
restrict its bargaining power is guilty of unfair labor practice. In available to other members;
7) To violate the duty to bargain collectively; determining whether an employer has not bargained in good faith, 3) To violate the duty, or refuse to bargain collectively with
8) To pay negotiation or attorney's fees to the union or its o cers the totality of all the acts of the employer at the time of negotiations the employer, provided it is the representative of the
or agents as part of the settlement of any issue in collective must be taken into account. employees;
bargaining or any other dispute; or
4) Featherbedding. To cause or attempt to cause an employer
9) To violate a collective bargaining agreement. to pay or deliver or agree to pay or deliver any money or other
Adamson Univ Faculty and things of value, in the nature of an exaction, for services which
10) NOTES 2020
Employees Union v. Adamson Univ
are not performed or not to be performed, including the
a) As to violation of CBA. — It is ULP if what is violated Petitioner's dismissal, which was brought about by his personal acts, demand for fee for union negotiations;
is an ECONOMIC provision of the CBA and that the does not constitute unfair labor practice as provided under the 5) To ask for or accept negotiation or attorney's fees from
violation is gross and agrant; otherwise, it is not ULP. Labor Code. Dismissing him was not meant to violate the right of employers as part of the settlement of any issue in collective
b) As to jurisdiction the university employees to self-organize. Neither was it meant to bargaining or any other dispute; or
interfere with the Union's activities. Likewise, petitioner failed to
i) LA → NLRC → CA. — gross and agrant violation 6) To violate a collective bargaining agreement.
prove that the proceedings were done with haste and bias. Finally,
of an economic provision, a ULP;
petitioner cannot raise the defense that he was the Union's
Examples of ULPs
ii) Grievance Machinery → VA → CA. — violation president; this does not make him immune from liability for his acts
of of misconduct. 1) Surface bargaining. — De ned as “going through the
motions of negotiating” without any legal intent to reach an
1. a political provision; or
agreement.
2. an economic provision that is NOT gross and
3 By labor organizations It involves the question of whether an employer’s conduct
agrant.
demonstrates an unwillingness to bargain in good faith or is
c) Totality of Conduct Doctrine. — Expressions of 1) To restrain or coerce employees in the exercise of their right
merely hard bargaining.
opinion by an employer which, though innocent in to self-organization. However, a labor organization shall have

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2) Blue sky bargaining. — Making exaggerated or c) Labor dispute.

YES. Respondent's expulsion from PORFA is grounded on the
unreasonable proposals.
union's Constitution. However, these provisions refer to
3) Featherbedding. — see above. impeachment and recall of union o cers, and not expulsion from
a Grounds for strike
union membership. In short, any o cer found guilty of violating There are only TWO strikeable grounds:
4) Yellow dog contract. — An agreement which exacts from
these provisions shall simply be removed, impeached or recalled,
workers as a condition of employment, that they shall not join a) Collective bargaining deadlock; AND
from o ce, but not expelled or stripped of union membership.
or belong to a labor organization, or attempt to organize one,
b) ULP.
during their period of employment or that they shall withdraw It was therefore an error on the part of PORFA and petitioners to
therefrom, in case they are already members of a labor terminate respondent's employment based on said provision of the
organization. union's Constitution. Such a ground does not constitute just cause
b Mandatory procedural requirements
for termination. 1) Based on a valid and factual ground;
5) Runaway shop. — Is an industrial plant that is moved by its
owners from one location to another to escape union labor A review of the PORFA Constitution itself reveals that the only 2) A notice of strike led with the NCMB;
regulations or state laws. It may also be a relocation motivated provision authorizing removal from the union is found in Article X,
3) Notice of strike vote to the NCMB, at least 24 hours before
by anti-union animus rather than for business reasons. Section 6, that is, on the ground of failure to pay union dues,
such vote;
special assessments, nes, and other mandatory charges.
6) Contracting out. — It is only when the contracting out of a
4) Strike vote wherein at least a majority of the members of the
job, work or service being performed by union members will The matter of respondent's alleged failure to return petitioners'
union approve the holding of strike through secret balloting in
interfere with, restrain or coerce employees in the exercise of P300K which was lent to PORFA is immaterial as well. It may not
a meeting called for the purpose;
their right to self-organization that it shall be unlawful and be used as a ground to terminate respondent's employment; under
shall constitute ULP. the Labor Code, such a contribution by petitioners to PORFA 5) Strike vote report submitted at least 7 days before intended
is illegal and constitutes unfair labor practice. date of strike;
7) Company Union. — To initiate, dominate, assist or
otherwise interfere with the formation or administration of 6) Cooling o period.
any labor organization, including the giving of nancial or
a) Union busting = NONE;
other support to it or its organizers or supporters. F Peaceful concerted activities
b) ULP = 15 days;
8) Boulwarism. — the tactic of making a "take-it-or-leave-it"
o er in a negotiation, with no further concessions or 1 Strikes c) CBD = 30 days;
discussion. From date of notice of strike is led.
"Strike" refers to any temporary stoppage of work by the
concerted action of employees as a result of a labor or industrial 7) 7 day waiting period or strike ban after submission of
United Polyresins, Inc. v. Pinuela 2017
dispute. Elements: strike vote report.
WON Pinuela was illegally dismissed as the charges of a) Temporary stoppage of work; c Legal strike vs. illegal strike
misappropriation against him were unsubstantiated.
b) Concerted activity;

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When a strike is ILLEGAL

ARTICLE 279. Prohibited Activities. — c. No employer shall use or employ any strike-breaker, nor shall
a) Doesn’t comply with procedural requirements; any person be employed as a strike-breaker.
a. No labor organization or employer shall declare a strike or
b) For an unlawful purpose; lockout without first having bargained collectively or d. No public o cial or employee, including o cers and personnel
without rst having led the notice required or without the of the AFP or PNP, or armed person, shall bring in, introduce
c) Based on non-strikeable grounds;
necessary strike or lockout vote rst having been obtained and or escort in any manner, any individual who seeks to replace
d) Didn’t bargain collectively rst; strikers in entering or leaving the premises of a strike area, or
reported to the DOLE.
e) Violated the no strike no lockout clause; work in place of the strikers.
No strike or lockout shall be declared after assumption of
f) Failure to submit issues to grievance procedure and exhaust e. The police force shall keep out of the picket lines unless
jurisdiction by the President or the SOLE or after certi cation
the steps therein; actual violence or other criminal acts occur therein.
or submission of the dispute to compulsory or voluntary
g) While C-M is ongoing at NCMB; arbitration or during the pendency of cases involving the same f. No person engaged in picketing shall commit any act of
grounds for the strike or lockout. violence, coercion or intimidation or obstruct the free ingress to
h) Based on issues already brought to arbitration;
or egress from the employer's premises for lawful purposes, or
Any worker whose employment has been terminated as a
i) Pending case involving same ground in the notice of strike; obstruct public thoroughfares.
consequence of any unlawful lockout shall be entitled to
j) In de ance of an assumption or certi cation or return-to-work reinstatement with full backwages.
order; “Strike area" means the establishment, warehouses, depots, plants
Any union o cer who knowingly participates in an illegal or o ces, including the sites or premises used as runaway shops, of
k) In violation of a TRO or an injunction order; strike and any worker or union o cer who knowingly the employer struck against, as well as the immediate vicinity
l) After notice of strike converted to preventive mediation participates in the commission of illegal acts during a actually used by picketing strikers in moving to and fro before all
case; strike may be declared to have lost his employment status. points of entrance to and exit from said establishment.

m) Against prohibition by law; Mere participation of a worker in a lawful strike shall not "Strike-breaker" means any person who obstructs, impedes, or
constitute su cient ground for termination of his employment, interferes with by force, violence, coercion, threats, or intimidation
n) By a minority union;
even if a replacement had been hired by the employer during any peaceful picketing a ecting wages, hours or conditions of
o) By an illegitimate union; such lawful strike. work or in the exercise of the right of self-organization or collective
p) By dismissed EEs; bargaining.
b. No person shall obstruct, impede, or interfere with by force,
q) In violation of company code of conduct; violence, coercion, threats or intimidation, any peaceful
Liability of union o cers and members for illegal
picketing by employees during any labor controversy or in the e
r) As protest rallies in front of government o ces; strike and illegal acts during strike
exercise of the right to self-organization or collective bargaining,
s) As welga ng bayan. or shall aid or abet such obstruction or interference.
Knowingly Committed Illegal
Participated Acts
d Prohibited acts during strike

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Union O cer DISMISSED DISMISSED 5) Lockout vote report submitted at least 7 days before a. Industry indispensable to the national interest. — Sec 16,
intended date of lockout; Rule XXII, Book V, as created by DOLE Department Order
Union Member - DISMISSED
No. 040-H-13
6) Cooling o period.
i. hospital sector;
a) ULP = 15 days;
2 Picketing ii. electric power industry;
b) CBD = 30 days;
Marching to-and-fro with placards that make known the issues iii. water supply services, to exclude small water supply
From date of notice of lockout is led.
between the establishment and the workers. services such as bottling and re lling stations;
7) 7 day waiting period or lockout ban after submission of
Picketing is limited to harmless marching by employees who carry iv. air tra c control; and
lockout vote report.
placards or use speech to attract the public to their cause.
v. such other industries as may be recommended by the
Assumption of jurisdiction by the DOLE National Tripartite Industrial Peace Council (TIPC).
3 Lockouts 4
Secretary b. E ects of assumption of jurisdiction.
Refers to the temporary refusal of an employer to furnish work as a
i. On intended or impending strike or lockout —
result of a labor or industrial dispute. When, in his opinion, there exists a labor dispute causing or likely to
automatically enjoined even if a Motion for
cause a strike or lockout in an industry indispensable to the national
a Grounds for lockout Reconsideration is led.
interest, the SOLE may
ii. On actual strike or lockout — strikers or locked out
Same as grounds for strike 1. assume jurisdiction over the dispute and decide it or employees should immediately return to work and
a) Collective bargaining deadlock; AND 2. certify the same to the NLRC for compulsory arbitration. employer should readmit them back.
b) ULP. iii. On cases filed or may be filed — All shall be
In labor disputes adversely a ecting the continued operation of such
subsumed/absorbed by the assumed or certi ed case
hospitals, clinics or medical institutions, it shall be the duty of
b Mandatory procedural requirements except when the order speci ed otherwise. The
the striking union or locking-out employer to provide and maintain an
parties to the case should inform the DOLE Secretary
1) Based on a valid and factual ground; effective skeletal workforce for the duration of the strike or lockout.
of pendency thereof.
2) A notice of lockout led with the NCMB; The President of the Philippines shall not be precluded from
determining the industries that, in his opinion, are indispensable to Manggagawa ng Komunikasyon sa Pilipinas v. PLDT 2017
3) Notice of lockout vote to the NCMB, at least 24 hours
the national interest, and from intervening at any time and
before such vote; WON the return-to-work order of the SOLE was rendered moot when
assuming jurisdiction over any such labor dispute in order to settle
4) Lockout vote wherein at least a majority of the members of or terminate the same. the NLRC upheld the validity of the redundancy program.
the board of directors approve the holding of lockout through
secret balloting in a meeting called for the purpose;

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Two-notice rule
YES. When petitioner led its Motion for Execution on pursuant to VI Termination of Employment
this Court's ruling there was no longer any existing basis for the Illegal dismissal, reliefs therefrom
return-to-work order. This was because the SOLE's return-to-work Security of tenure
order had been superseded by the NLRC's Resolution. Hence, the
Reinstatement
Categories of employment as to tenure
SOLE did not err in dismissing the motion for execution on the Backwages
ground of mootness. Regular
Separation pay, doctrine of strained relations
Garcia v. Philippine Airlines upholds the prevailing doctrine Casual
that even if a Labor Arbiter's order of reinstatement is reversed on Damages
appeal, the employer is obligated "to reinstate and pay the wages of Probationary
Attorneys’ fees
the dismissed employee during the period of appeal until reversal by
Project
the higher court." Liabilities of corporate o cers
Seasonal
There is no order of reinstatement from a Labor Arbiter in the case Burden of proof
at bar, instead, what is at issue is the return-to-work order from the Fixed-term
SOLE. Termination by employee
Work-pool employees
Resignation vs. Constructive dismissal
Legitimate subcontracting vs. Labor-only
5 Injunctions Abandonment
contracting
Preventive Suspension
ART 266. Injunction Prohibited. — No temporary or permanent Elements
injunction or restraining order in any case involving or growing out Floating status
Trilateral Relationship
of labor disputes shall be issued by any court or other entity, except Retirement
as otherwise provided in Articles 218 and 264 of this Code. Solidary Liability

Termination by employer A Security of tenure

GR: No injunction order growing out of labor disputes.
EXC: Substantive due process
1 Categories of employment as to tenure
1. Commission of prohibited activities; Just causes
2. Prospect of irreparable damage; ART 295. Regular and Casual Employment. — The provisions of
Authorized causes
written agreement to the contrary notwithstanding and regardless of
3. National interest cases. Procedural due process the oral agreement of the parties, an employment shall be deemed to

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be regular where the employee has been engaged to perform a) By the nature of their work. Usually necessary or employees and, consequently, were illegally dismissed by petitioner.
activities which are usually necessary or desirable in the usual desirable in the usual trade or business of an employer.
YES. Petitioner repeatedly rehired respondents for various positions
business or trade of the employer, except
b) By the length of service. Have rendered at least 1 year of in the nature of maintenance workers, for various periods spanning
a) where the employment has been xed for a speci c project service whether continuous or not. the years 1990-1999. Pontesor, et al. fall under the second
or undertaking the completion or termination of which has 4) TEST of regularity. Reasonable connection between the category of regular employees. Accordingly, they should be deemed
been determined at the time of the engagement of the particular activity performed by the employee in relation to as regular employees but only with respect to the activities for which
employee or the employer. they were hired and for as long as such activities exist.

b) where the work or service to be performed is seasonal in 5) Repeated rehiring of a job for a xed period and the Pontesor, et al. were not project employees of petitioner. The
nature and the employment is for the duration of the continuing need for an employee’s service are su cient speci c undertakings or projects for which they were employed were
season. evidence of the necessity and indispensability of an EE’s not clearly delineated. This is evidenced by the vagueness of the
service to the ER’s trade or business. project descriptions set forth in their respective CEAs, which states
An employment shall be deemed to be casual if it is not covered by that they were tasked "to assist" in various carpentry, electrical, and
the preceding paragraph: 6) Exceptions to regular employment masonry work.
Provided, That any employee who has rendered at least one year of a) Project;
service, whether such service is continuous or broken, shall be b) Seasonal; and
considered a regular employee with respect to the activity in which Expedition Construction Corp. v. Africa 2017
he is employed and his employment shall continue while such c) Fixed Term.
First, respondents were engaged/hired by Expedition as garbage
activity exists.
Lu v. Enopia 2017 truck drivers. Second, respondents received compensation from
Expedition for the services that they rendered to the latter. The fact
The primary standard for determining regular employment is the that respondents were paid on a per trip basis is irrelevant in
a Regular reasonable connection between the particular activity performed by determining the existence of an employer-employee relationship
the employee in relation to the usual trade or business of the because this was merely the method of computing the proper
1) Employment is regular where the employee has been engaged employer. Respondents' jobs as shermen-crew members of F/B compensation due to respondents. Third, Expedition's power to
to perform activities which are usually necessary or desirable MG 28 were directly related and necessary to petitioner's deep-sea dismiss was apparent when work was withheld from respondents as
in the usual business or trade of the employer. shing business and they had been performing their job for more a result of the termination of the contracts with LGUs. Finally,
2) A regular employee may either be: than one year. Expedition has the power of control over respondents in the
a) Permanent. One who has an inde nite employment, performance of their work.
whether passing the probationary stage or not; or Therefore, respondents should be accorded the presumption of
UST v. Samahang Manggagawa ng UST 2017
b) Probationary. regular employment.
WON the CA correctly ruled that Pontesor, et al. are regular
3) Two kinds of regular employees

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Paragele v. GMA 2020 4) When probationary EE considered regular?

Gerardo v. Bill Sender Corp. 2018 Only casual employees performing work that is neither necessary a) Allowed to continue work beyond probationary period;
nor desirable to the usual business and trade of the employer are b) NO evaluation conducted and no basis for termination;
WON Geraldo was a regular employee of respondent.
required to render at least one (1) year of service to attain regular presumed to have been satisfactorily complied;
YES. Geraldo was performing activities necessary or desirable in its status. Employees who perform functions which are necessary and
usual business or trade for without his services, its fundamental c) Proby NOT informed of the standards required to qualify
desirable to the usual business and trade of the employer attain
purpose of delivering bills cannot be accomplished. He has been as regular EE;
regular status from the time of engagement.
delivering mail matters for the company for more than fourteen (14) d) EE successfully passes the period of probation.
years.
5) The adequate performance of such duties and responsibilities
In Gamboa, Jr. v. Villegas, We held that the payment on a c Probationary constitute the inherent and implied standard for
piece-rate basis does not negate regular employment. Payment by regularization. (Abbott Laboratories v. Alcaraz 2014 En
1) A probationary employee is one, who, for a given period of
the piece is just a method of compensation and does not de ne Banc)
time, is being observed and evaluated to determine whether or
the essence of the relations.
not he is quali ed for a permanent position (Pasamba v. 6) When probationer informed of required standards. —
NLRC) Ideally, employers should immediately inform a probationary
employee of the standards for his regularization from day one.
b Casual 2) One who is placed in a trial period whose performance is
However strict compliance is not required. The true test of
assessed whether satisfactory or not. Duration is generally 6
1) An employee is considered casual if: compliance is one of reasonableness. As long as he is given a
months except
reasonable time and opportunity to be made fully aware of
a) Employed to perform work merely incidental to the a) Covered by an apprenticeship agreement stipulating a what is expected of him during the early phases of the
trade or business of employer; longer period; period, the law is met. (Enchanted Kingdom v. Verzo 2015)
b) Employment is for a de nite period; b) Manual of regulations of private schools which provide 7) When probation may exceed 6 months. — When the
c) Employment status was made known at the time of for a longer period. parties agree otherwise, such as when the same is established by
engagement. i) Elementary and Secondary. Not more than 3 years of company policy or when the same is required by the nature of
satisfactory service; work as where one must learn a particular kind of work such
2) If employed for a continuous or broken period of at least 1
as selling, or when the job requires certain quali cations, skills,
year, he is deemed regular but only with respect to the ii) Tertiary. Not more than 6 semesters or 9
experience or training.
activity he is employed and as long as such activity exists. The trimesters of satisfactory service.
status of being regular casual is coterminous to the existence Where the extension of employee’s probation was ex gratia,
3) If the employee is not apprised of the STANDARDS that he
of the activity. an act of liberality on the part of his employer to a ord the
must meet in order to hurdle probation, then he is deemed
employee a second chance to make good after having initially
3) There is no security of tenure for casual employees. regular after 6 months.

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failed to prove his worth as an employee. (Mariwasa v. students’ probationary period should they apply in the desirability of the work in the usual business of the company.
Leogardo, Jr.) same company or agency after graduation. (Manalo v. TNS Phil. 2014)
d Project
Umali v. Hobbywing Solutions Inc. 2018 E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc
1) Where employment has been xed for a specific project or
The general rule remains that an employee who was su ered to work The decisive determinant in project employment is the
undertaking, the completion of which has been determined
for more than the legal period of six (6) months of activity that the employee is called upon to perform. Prior
at the time of engagement of EE. Elements are as follows:
probationary employment or less shall, by operation of law, notice of termination is not part of procedural due process if the
become a regular employee. a) employment has been xed for a speci c project or termination is brought about by the completion of the contract or
undertaking; AND phase thereof for which the project employee was engaged.
WON Umali was terminated without cause when she was informed
that the period of her probationary employment had already ended b) the completion or termination of which has been WON Ando was a regular employee and was thereby illegally
and her services were no longer needed. determined at the time of engagement of EE. dismissed by EGI.

YES. Petitioner commenced working for the respondent on June 2) Specific project or undertaking is an activity which is NOT NO. The activities of project employees may or may not be usually
19, 2012 until February 18, 2013. By that time, however, she has commonly or habitually performed or such type of work necessary or desirable in the usual business or trade of the employer.
already become a regular employee. which is not done on a daily basis, but only for a speci c In ALU-TUCP v. NLRC, two (2) categories of project employees
duration of time until the completion of the project. were distinguished:
8) RA 10869 (JobStart Trainee). — A JobStart trainee shall 3) When project EE deemed regular? Firstly, a project could refer to a particular job or undertaking
no longer be required to undergo a probationary period at
a) When there is continuous rehiring even after cessation that is within the regular or usual business of the employer
the end of the internship phase should the trainee be hired in
of a project; company, but which is distinct and separate, and identi able as
the same establishment upon completion of the program.
such, from the other undertakings of the company. Such job or
Three (3) Phases b) When the tasks performed by the alleged project EE are
undertaking begins and ends at determined or determinable
a) JobStart Life Skills Training. 10 days with one life vital, necessary and indispensable to the usual business or
times. The typical example of this rst type of project is a
skill taught each day; trade of ER.
particular construction job or project of a construction
b) JobStart Technical Training. Up to 3 months and 4) While there was repeated re-hiring, the hiring was NOT, company.
is optional. however, continuous, as in fact there was a lapse of 33
Secondly, a particular job or undertaking that is not within the
months after the next project, the employee is a project and
c) JobStart Internship. Up to 3 months or 600 hours. regular business of the corporation. Such a job or undertaking
not regular. (Alcatel PH v. Relos)
must also be identi ably separate and distinct from the ordinary
9) RA 10917 amending RA 9547, 7323 or SPES Act. —
5) However, if the employee is successively re-engaged to or regular business operations of the employer.
Period of employment shall be from twenty (20) to
perform the same kind of work not intermittently, but
seventy-eight (78) working days only, except that during In this case, the three project employment contracts signed by Ando
continuously, contract after contract, month after
Christmas vacation, employment shall be from ten (10) to explicitly stipulated the agreement "to engage his services as a Project
month involving the same task indicates the necessity and
fteen (15) days which may be counted as part of the Worker."

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become permanent employees by reason of their length of service is project, without signing a new contract for that purpose, it was
The fact that Ando was required to render services necessary or
not applicable to project-based employees. already outside of the scope of the particular undertaking for which
desirable in the operation of EGI's business for more than a year
they were hired; it was beyond the scope of their employment
does not in any way impair the validity of his project employment In Mercado Sr. v. NLRC, this court ruled that the proviso in the
contracts. This act by IKSI indubitably brought respondents
contracts. The rehiring of construction workers on a second paragraph of Article 280, providing that an employee who
outside the realm of the project employees category.
project-to-project basis does not confer upon them regular has served for at least one year, shall be considered a regular
employment status as it is only dictated by the practical employee, relates only to casual employees and not to project
consideration that experienced construction workers are more employees.
preferred. e Seasonal

1) Employment is for the duration of a certain season.

Innodata Knowledge Services v. Inting 2017
a) They are considered regular EEs if called to work from
Herma Shipyard Inc. v. Oliveros 2017
In order to safeguard the rights of workers against the arbitrary use time to time, during o -season and are merely considered
The principal test in determining whether particular employees were of the word "project" which prevents them from attaining regular as on leave of absence without pay until they are
engaged as project-based employees, as distinguished from regular status, employers claiming that their workers are project employees reemployed.
employees, is whether they were assigned to carry out a speci c have the burden of showing that:
b) If EE has worked only for 1 season, he is not regular.
project or undertaking, the duration and scope of which was
a) the duration and scope of the employment was speci ed at
speci ed at, and made known to them, at the time of their c) Enjoys security of tenure within the duration of the
the time they were engaged; and
engagement. season.
b) there was indeed a project.
Repeated rehiring of project employees to di erent projects d) Their employment is never terminated but merely
does NOT ipso facto make them regular employees. WON respondent employees, as mere project employees, were validly suspended.
placed on floating status and, therefore, were validly dismissed.
WON respondents are regular employees of petitioner and not project 2) Requisites for SEASONAL undertaking
employees. NO. While IKSI was able to show the presence of a speci c project, a) Dependent on climatic or natural causes. Operations
the ACT Project, in the contract and the alleged duration of the must be limited to a regular, annual, or recurring part/s of
NO. Here, for each and every project respondents were hired, they
same, it failed to prove, however, that respondents were in reality each year and regularly closes during the remainder of the
were adequately informed of their employment status as
made to work only for that speci c project indicated in their year.
project-based employees at least at the time they signed their
employment documents and that it adequately informed them of
employment contract. While the tasks assigned to the respondents b) Activity is agricultural where the crops are available
the duration and scope of said project at the time their services were
were indeed necessary and desirable in the usual business of Herma only at certain times of the year.
engaged.
Shipyard, the same were distinct, separate, and identifiable
The fact is IKSI actually hired respondents to work, not only on the 3) Deep sea shing business is not a seasonal undertaking.
from the other projects or contract services.
ACT Project, but on other similar projects such as the Bloomberg. Catching sh is not seasonal especially where the boat crew,
The rule that employees initially hired on a temporary basis may
When respondents were required to work on the Bloomberg

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although employed on a per trip basis, has been working for 12

2) Not permanent, but EE still enjoys security of tenure during agreed upon by the parties may be any day certain, which is
years. (Poseidon Fishing v. NLRC)
the pre-determined term. understood to be "that which must necessarily come although it
may not be known when."
3) Term employment should not circumvent security of tenure.
Universal Robina Sugar Milling Corp v. This is shown by the criteria laid by the BRENT
2018
Nagkahiusang Mamumuo sa Ursumco-NFL DOCTRINE:
g Work-pool employees
Notwithstanding the stipulations in an employment contract or a a) Must not be entered merely to circumvent the EE’s right
duly negotiated CBA, the employment status of an employee is to security of tenure; A WORK POOL is a group of EEs from which the ER draws its
ultimately determined by law. manpower.
b) The xed period was knowingly and voluntarily
WON URSUMCO's regular seasonal employees are regular agreed upon without any force, duress or improper They are PROJECT EEs. They are deemed REGULAR EEs
employees. pressure and absent any other circumstances vitiating when:
consent;
YES. Seasonal employment becomes regular seasonal employment 1) They have been continuously rehired by the same ER for the
when the employees are called to work from time to time. On the c) Must satisfactorily appear that the ER and EE dealt with same tasks or nature of tasks; AND
other hand, those who are employed only for a single season remain each other on more or less equal terms with no moral
2) These tasks are vital, necessary and indispensable to the usual
as seasonal employees. As a consequence of regular seasonal dominance exercised by the former to the latter.
trade or business of the ER.
employment, the employees are not considered separated from 4) Why allow fixed term employment? It is an essential and
service during the o -milling season, but are only temporarily laid natural appurtenance recognized by SC. i.e. Legitimate subcontracting vs. Labor-only
o or on leave until re-employed. Nonetheless, in both regular contracting
a) Overseas workers; 2
seasonal employment and seasonal employment, the employee
performs no work during the o -milling season. b) College Deans and Department Heads. DOLE DO No. 174 s. 2017

Here, the concerned URSUMCO employees are performing work 5) What determines term employment? The decisive
determinant should not be the activities the EE is called upon a Elements
for URSUMCO even during the o -milling season as they are
repeatedly engaged to conduct repairs on the machineries and to perform, but the day certain agreed upon for the
1) There is "labor-only" contracting where the person
equipment. commencement and termination of the employment
supplying workers to an employer
relationship.
a) does not have substantial capital or investment in the
E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc form of tools, equipment, machineries, work premises,
f Fixed-term
among others, and
1) EE performing work that is usually necessary and desirable Project employment should not be confused and interchanged with
b) the workers recruited and placed by such person are
in the business of ER wherein the employment contract xed-term employment: While the former requires a project as
performing activities which are directly related to
stipulates the duration or term of employment. restrictively de ned above, the duration of a xed-term employment
the principal business of such employer.

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account, manner and method, investment in the form of

2) Labor-only contracting, which is totally prohibited, refers 1) Principal is deemed direct employer of contractor’s
tools, equipment, machinery and supervision;
to: employees;
c) In performing the work farmed out, the contractor or
a) an arrangement where 2) Contractor will be treated as agent of principal;
subcontractor is free from the control and/or
i) The contractor or subcontractor does not have direction of the principal in all matters connected with 3) Principal’s liability is comprehensive — all liabilities
substantial capital, OR the performance of the work except as to the result under labor laws, not only to unpaid wages.
ii) The contractor or subcontractor does not have thereto; and
Nestle Philippines Inc. v. Puedan, Jr 2017
investments in the form of tools, equipment, d) The Service Agreement ensures compliance with all
machineries, supervision, work premises, among the rights and bene ts for all the employees of the WON ODSI is a labor-only contractor of NPI, and consequently,
others, AND contractor or subcontractor under the labor laws. NPI is respondents' true employer and, thus, deemed jointly and
iii) The contractor's or subcontractor's employees severally liable with ODSI for respondents' monetary claims.
b Trilateral Relationship
recruited and placed are performing activities which NO. A closer examination of the Distributorship Agreement reveals
are directly related to the main business In legitimate contracting, there exists a trilateral relationship
that the relationship of NPI and ODSI is not that of a principal and
operation of the principal; OR under which there is a contract for a speci c job, work or service
a contractor, but that of a seller and a buyer/re-seller.
between the principal and the contractor or subcontractor, and a
b) The contractor or subcontractor does not exercise the The stipulations in the Distributorship Agreement do not operate
contract of employment between the contractor or subcontractor
right to control over the performance of the work of the to control or x the methodology on how ODSI should do its
and its workers. Hence, there are three parties involved in these
employee. business as a distributor of NPI products, but merely provide rules
arrangements,
3) "Substantial capital" — refers to paid-up capital of conduct or guidelines towards the achievement of a mutually
1) the principal which decides to farm out a job or service
stock/shares at least P5M in the case of corporations, desired result — which in this case is the sale of NPI products to the
to a contractor or subcontractor,
partnerships and cooperatives; in the case of single end consumer.
proprietorship, a net worth of at least P5M. 2) the contractor or subcontractor which has the capacity
Thus, the foregoing circumstances show that ODSI was not a
to independently undertake the performance of the job,
4) Contracting or subcontracting shall only be ALLOWED if labor only contractor of NPI.
work or service, and
all the following circumstances concur:
3) the contractual workers engaged by the contractor or
a) The contractor or subcontractor is engaged in a distinct subcontractor to accomplish the job work or service. Valencia v. Classique Vinyl Products Corp 2017
and independent business and undertakes to perform
the job or work on its own responsibility, according to its c Solidary Liability WON Valencia is an employee of CMS and not Classique Vinyl.
own manner and method;
YES. Valencia's selection and engagement was undertaken by CMS
Effects of Labor-only Contracting
b) The contractor or subcontractor has substantial capital and conversely, this negates the existence of such element insofar as
to carry out the job farmed out by the principal on his Classique Vinyl is concerned.

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the conduct of its business, and even continuously earned pro t as a contractor's operations are legitimate.
Here, Classique Vinyl presented the CMS’s Certi cate of
result.
Registration with the DTI and license as a private recruitment and CBMI is a legitimate job contractor, and consequently, the
placement agency from the DOLE. Indeed, these documents are not Sunpower does not control the manner by which the employer of respondents. CBMI retained control over
conclusive evidence of the status of CMS as a contractor. However, petitioners accomplished their work. respondents, as shown by the deployment of at least one (1) CBMI
such fact of registration of CMS prevented the legal presumption of supervisor in each Pizza Hut branch to regularly oversee, monitor,
The fact that the petitioners were working within the premises of
it being a mere labor-only contractor from arising. and supervise the employees' attendance and performance.
Sunpower, by itself, does not negate Jobcrest's control over the
Respondents applied for work with CBMI and were consequently
The facts failed to establish that there is any circumvention of labor means, method, and result of the petitioners' work. The petitioners,
selected and hired by the latter.
laws as to call for the creation by the statute of an EER between despite working in Sunpower's plant for most of the time, admit
Classique Vinyl and Valencia. that whenever they le their leave application, or whenever required
by their supervisors in Jobcrest, they report to the Jobcrest o ce.
Designated on-site supervisors from Jobcrest were the ones who Lingnam Restaurant v. Skills & Talent Employment 2018

Mago et al. v. Sunpower Manufacturing Ltd. 2018 oversaw the performance of the employees' work within the
The legitimate job contractor provides services, while the
premises of Sunpower.
labor-only contractor provides only manpower. The legitimate job
A contractor is presumed to be a labor-only contractor, unless the
contractor undertakes to perform a speci c job for the principal
contractor is able to discharge the burden of overcoming this
employer, while the labor-only contractor merely provides the
presumption.
Abuda et al. v. L. Natividad Poultry Farms 2018 personnel to work for the principal employer.
WON Jobcrest is a legitimate and independent contractor.
WON the maintenance personnel in L. Natividad Poultry Farms can WON STEP is engaged in labor-only contracting.
YES. Since the petitioners do not dispute that Jobcrest was a be considered as its regular employees.
YES. STEP merely acted as a placement agency providing
duly-registered contractor under Section 11 of DOLE DO No.
YES. San Mateo and petitioner Del Remedios were not manpower to Lingnam Restaurant. The service rendered by STEP
18-02, there is no operative presumption that Jobcrest is a labor-only
independent contractors but labor-only contractors since they did in favor of Lingnam Restaurant was not the performance of a
contractor.
not have substantial investment in the form of tools, equipment, or speci c job, but the supply of personnel.
Conversely, the fact of registration with DOLE does not necessarily work premises. As labor-only contractors, they were considered to
create a presumption that Jobcrest is a legitimate and independent be agents of L. Natividad.
contractor. The petitioners must overcome the presumption of
Lingat v. Coca-Cola Bottlers Phils, Inc. 2018
regularity accorded to the o cial act of DOLE.
To determine whether one is an independent contractor, the
Jobcrest has substantial capital. Phil. Pizza Inc. v. Porras 2018
possession of substantial capital is only one element. It is necessary
Jobcrest had substantial capital to perform the business process Although not a conclusive proof of legitimacy, the certification by the to prove not only substantial capital or investment in tools,
services it provided Sunpower. It has its own o ce, to which the DOLE nonetheless prevents the presumption of labor-only contracting equipment, work premises, among others, but ALSO that the work
petitioners admittedly reported to, possessed numerous assets for from arising. It gives rise to a disputable presumption that the of the employee is directly related to the work that contractor is

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required to perform for the principal. b) The disobedience or insubordination must be willful
c) Fraud or willful breach by the employee of the trust
or intentional characterized by a wrongful and
WON petitioners were regular employees of CCBPI. reposed in him by his employer or duly authorized
perverse attitude;
YES. Petitioners' duties were reasonably connected to the very representative;
c) The order violated must be reasonable, lawful, and
business of CCBPI. They were indispensable to such business d) Commission of a crime or o ense by the employee
made known to the employee; and
because without them the products of CCBPI would not reach its against the person of his employer or any immediate
customers. member of his family or his duly authorized representatives; d) The order must pertain to the duties which he has
and been engaged to discharge.
In Pacquing v. Coca-Cola Philippines, Inc., the Court ruled that the
sales route helpers of CCBPI were its regular employees. In this case, e) Other causes analogous to the foregoing. 3) Gross and Habitual Neglect of Duty. —
petitioners had similarly undertook to bring CCBPI's products to
a) Gross Neglect refers to the absence of that diligence
its customers at their delivery points.
that an ordinary prudent man would use in his/her
a Just causes
WON MDTC is an independent contractor and employers of own a airs.
petitioners. 1) Serious Misconduct. — Misconduct is improper or b) Habitual Neglect refers to repeated failure to
NO. CCBPI's contention that MDTC was a legitimate labor wrong conduct. It is a transgression of some established and perform one's duties over a period of time, depending
contractor and was the actual employer of petitioners does not hold de nite rule of action, a forbidden act, a dereliction of duty, upon the circumstances.
water. willful in character and implies wrongful intent and not
merely error in judgment. It must be in connection with the GR: Neglect of duty must be BOTH Gross and
EE’s work to constitute just cause for his separation. Habitual.
EXC: Even if NOT habitual, but there is
B Termination by employer a) There must be misconduct;
SUBSTANTIAL DAMAGE or injury to
b) The misconduct must be of such grave and the ER.
1 Substantive due process aggravated character;
4) Fraud or Willful Breach of Trust. —
c) It must relate to the performance of the employee's
ART 297. Termination by Employer. — An employer may terminate a) There are two (2) classes of positions of trust.
duties; AND
an employment for any of the following causes:
i) The first class consists of managerial
d) There must be showing that the employee becomes
a) Serious misconduct or willful disobedience by the employees, or those vested with the power to lay
un t to continue working for the employer. down management policies; and
employee of the lawful orders of his employer or
representative in connection with his work; 2) Willful Disobedience or Insubordination. — ii) The second class consists of cashiers, auditors,
b) Gross and habitual neglect by the employee of his a) There must be disobedience or insubordination; property custodians or those who, in the normal
and routine exercise of their functions, regularly
duties;

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Labor Law and Social Legislation Reviewer for the 2022 Bar

handle significant amounts of money or

iii) The employee concerned must be holding a ii) a clear intention to sever EER — manifested by
property.
position of trust and con dence; overt acts from which it may be deduced that the
b) Requisites of Fraud employees have no more intention to work.
iv) The loss of trust and con dence should not be
i) There must be an act, omission, or simulated; b) Sexual Harassment. — The gravamen of the o ense
concealment; is not the mere violation of one’s sexuality, but the
v) It should not be used as a subterfuge for causes
abuse of power by the employer who has a duty to
ii) The act, omission or concealment involves a which are improper, illegal, or unjusti ed; and
protect his employee against over-sex.
breach of legal duty, trust, or con dence justly
vi) It must be genuine and not a mere afterthought
reposed; c) Gross Ine ciency or poor performance. —
to justify an earlier action taken in bad faith.
iii) It must be committed against the employer or i) Employer has set standards of performance;
5) Commission of a Crime. — By the employee against the
his/her representative; and
person of his employer or his immediate family or authorized ii) Standards are reasonable and in connection with
iv) It must be in connection with the employees' representatives. employee’s work; AND
work.
a) There must be an act or omission iii) Proof that EE failed to meet the standards despite
c) Requisites of Breach of Trust punishable/prohibited by law; and given reasonable opportunity to meet the same.
i) The employee holds a position of trust and b) The act or omission was committed by the employee d) Drug use or abuse. — the law speci es that the
con dence; against the person of procedure shall employ two testing methods, i.e.,
the screening test and the con rmatory test. (Nacague
ii) There exists an act justifying the loss of trust and i) employer,
v. Sulpicio Lines 2010)
con dence;
ii) any immediate member of his/her family, or
e) Attitude Problem. — An employee who cannot get
iii) The employee’s breach must be willful;
iii) his/her duly authorized representative. along with his co-employees is detrimental to the
iv) The act must be in relation to his work which company for he can upset and strain the working
6) Analogous Causes. — No act or omission shall be
would render him un t to continue. environment. It is a situation analogous to loss of
considered as analogous cause unless expressly speci ed in the
d) Requisites of Loss of Confidence company rules and regulations or policies. trust and confidence that must be duly proved by
the employer. (Heavylift Manila v. CA)
i) There must be an act, omission or a) Abandonment is the deliberate and unjusti ed
concealment; refusal of an employee to resume his employment. f) Enforcement of union security clause. —

ii) The act, omission or concealment justi es the Two factors should be present: i) The union security clause is applicable;
loss of trust and con dence of the employer to i) the failure to report for work or absence ii) The bargaining union is requesting for the
the employee; without valid or justi able reason; and termination of employment due to enforcement
of the clause in the CBA; AND

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iii) There is su cient evidence to support the WON Mamaril was illegally dismissed by Red System, and is
Moreover, in Asian Design and Manufacturing Corporation
union’s decision to expel the employee from the consequently entitled to reinstatement and full backwages; and
v. Deputy Minister of Labor, the dismissed employee made false
union. (Slord Development v. Noya 2019)
and malicious statements against the foreman (his superior). NO. Mamaril was validly dismissed on account of his willful
g) Commission of prohibited acts during strike. — disobedience of the lawful orders of Red System.
In Reynolds Philippines Corporation v. Eslava, the dismissed
i) A worker merely participating in an illegal strike employee circulated several letters to the members of the company's Red System was not remiss in reminding its drivers of the
may not be terminated from employment. It is board of directors calling the executive vice-president and general importance of abiding by their safety regulations. Notably, Mamaril
only when he commits illegal acts during a manager a "big fool," "anti-Filipino". violated Red System's safety rules twice, and caused damage
strike that he may be declared to have lost amounting to over Php 40,000.00. To make matters worse, he even
Hence, it is well-settled that accusatory and in ammatory
employment status. (Solidbank v. Gamier 2010) deliberately and willfully concealed his transgressions.
language used by an employee towards his employer or
ii) A union o cer who knowingly participates in an superior can be a ground for dismissal or termination.
illegal strike is deemed to have lost his
employment status, but a union member who is Alaska Milk v. Ponce 2017
merely instigated or induced to participate in the Transglobal Maritime Agency v. Chua 2017 WON Ponce was guilty of gross and habitual neglect of duties.
illegal strike is more benignly treated. (Escario v.
NLRC 2010) There must be reasonable proportionality between, on the one NO. Fault cannot rest upon Ponce's shoulders alone, inasmuch as
hand, the willful disobedience by the employee and, on the other satisfactory completion of the assigned tasks was subject to an
Sterling Paper Products Enterprises hand, the penalty imposed therefor. interplay of factors beyond his sole control. The fact that Ponce
2017 admitted to having been delayed in some of the tasks assigned to
v. KMM-Katipunan WON Chua was validly dismissed for insubordination.
him does not establish gross and habitual neglect of duties.
The utterance of obscene, insulting or o ensive words against a NO. By virtue of the POEA-SEC, Chua is indeed bound to obey
superior is not only destructive of the morale of his co-employees WON Ponce can be terminated for loss of trust and confidence.
the lawful commands of the captain of the ship, but only as long as
and a violation of the company rules and regulations, but also these pertain to his duties.There is no relevance to the order to sign YES. As regards a managerial employee, the mere existence of a basis
constitutes gross misconduct. the documents in Chua's performance of his duty as a seaman. for believing that such employee has breached the trust of his
WON Esponga was validly dismissed for serious misconduct. employer would su ce for his dismissal.
To amount to a valid dismissal, an erring seafarer must be handed a
written notice of the charge against him and must be given the Ponce held the position of Director for Engineering Services and
YES. In de La Cruz v. NLRC, the dismissed employee shouted,
opportunity to explain himself — unless, of course, there is a clear that he was in charge of managing AMC's Engineering Department.
"Sayang ang pagka-professional mo!" and "Putang ina mo" at the
and existing danger against the safety of the crew or the vessel in Hence, he belongs to the rst class of employees who occupy a
company physician when the latter refused to give him a referral slip.
which case notice may be dispensed with. position of trust and con dence.
Likewise, in Autobus Workers' Union (AWU) v. NLRC, the
The Court rules that his dismissal from employment is justi ed.
dismissed employee told his supervisor "Gago ka" and taunted the
First, The opening sentence of Ponce's R/A e-mail readily exposes
latter by saying, "Bakit anong gusto mo, tang ina mo."
Mamaril v. Red System Company 2018

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Labor Law and Social Legislation Reviewer for the 2022 Bar

the attendant willfulness in his act. Second, the act of soliciting them into withdrawing their complaint for underpayment of wages
On the second ground for termination, the Court nds that
receipts from colleagues constitutes dishonesty, inimical to AMC's and nonpayment of other labor standard bene ts. Such an act is
FILSCAP validly terminated Gaite's employment on the ground of
interests, for the simple reason that Ponce would be collecting proscribed by Article 118 of the Labor Code.
loss of trust and con dence.
receipted allowance from expenses he did not actually incur. Third,
the R/A e-mail betrays a truly sinister purpose which AMC had a
right to guard against. Aluag v. BIR Multi-Purpose Cooperative 2017
Maula v. Ximex Delivery Express 2017
WON BIRMPC had just cause to terminate Aluag's employment.
Dismissal from employment has two facets: first, the legality of the
Bravo v. Urios College 2017 YES. One of the infractions that BIRMPC cited in justifying act of dismissal, which constitutes substantive due process; and,
Aluag's dismissal is her failure to deposit checks on due dates, second, the legality of the manner of dismissal, which constitutes
WON Bravo was properly dismissed for a just cause.
pursuant to a member/debtor's request. The task of depositing procedural due process.
YES. Petitioner's act in assigning to himself a higher salary rate checks on due dates de nitely falls within Aluag's scope of
ON SERIOUS MISCONDUCT
without proper authorization is a clear breach of the trust and responsibilities.
con dence reposed in him. In addition, there was no reason for the While this Court held in past decisions that accusatory and
BIRMPC had ample reason to lose the trust and con dence it
Comptroller's O ce to undertake the preparation of its own in ammatory language used by an employee to the employer or
reposed upon her and thereby, terminate her employment.
summary table because this was a function that exclusively pertained superior can be a ground for dismissal or termination, the
to the Human Resources Department. circumstances peculiar to this case nd the previous rulings
inapplicable. The admittedly insulting and unbecoming language
Gaite v. Filipino Society of Composers 2018 uttered by petitioner to the HR Manager should be viewed with
reasonable leniency in light of the fact that it was committed under
Panaligan v. Phyvita Enterprises 2017 WON Gaite was validly dismissed due to loss of trust and
an emotionally charged state. Indeed, there was only lapse in
confidence.
WON there exists just and valid cause for the termination of judgment rather than a premeditated de ance of authority.
PANALIGAN, et al.'s, employment by PHYVITA. YES. Gaite's actuations constitute serious misconduct. First, not
ON TOTALITY OF INFRACTIONS
only is the amount involved herein a staggering amount of P17.7M,
NO. No direct evidence was presented to link PANALIGAN, et al., the alleged reallocation violated an express provision of the In Merin v. NLRC, this Court expounded on the principle of
to the theft that they allegedly committed. company's Distribution Rules. Second, Gaite committed said totality of infractions as follows:
Taking into consideration the fact that the DOLE-NCR conducted transfer in the performance of her duties as General Manager of
The totality of infractions or the number of violations
an inspection of the respondent's premises on as a result of the labor FILSCAP. Third, because of this grave infraction causing the
committed during the period of employment shall be
complaint led by PANALIGAN, et al., and they were implicated in depletion of the company's Special Accounts held in trust for the
considered in determining the penalty to be imposed upon an
the alleged theft incident only thereafter, a reasonable inference can rightful copyright owners, Gaite's ability to duly perform and
erring employee. The o enses committed by petitioner should
be made that PANALIGAN, et al.'s, termination of employment accomplish her duties and responsibilities as General Manager has
not be taken singly and separately.
may have been indeed a retaliatory measure designed to coerce been seriously put into question.

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respondent repeatedly committed mistakes or repeatedly failed to The penalty of dismissal, thus, was too severe for this kind of
Here, respondent cannot invoke the principle of totality of
perform his duties. As regards the charge of intoxication, Section infraction.
infractions considering that petitioner's alleged previous acts of
33(6) of the POEA SEC provides that drunkenness must be
misconduct were not established in accordance with the Palit-Ang's failure to immediately give the money to Gamboa was
committed while on duty to merit dismissal from employment.
requirements of procedural due process. not the result of a perverse mental attitude but was merely because
Here, respondent was admittedly o duty when he was allegedly
she was busy at the time. Neither did she pro t from her failure to
caught by the master drinking on board.
immediately give the cash advance for the car tune-up nor did
Evic Human Resource Mgmt v. Panahon 2017 Caguioa, J respondents su er nancial damage by her failure to comply. The
severe penalty of dismissal was not commensurate to her infraction.
WON there was just cause in dismissing Panahon. Malcaba et al. v. Prohealth Pharma Phils. 2018
NO. The Court nds the Crew Behavior Report sorely inadequate While this Court recognizes the inherent right of employers to
in meeting the required quantum of proof to discharge petitioners' discipline their employees, the penalties imposed must be b Authorized causes
burden. For one, the statements contained therein were commensurate with the infractions committed. Dismissal of
uncorroborated and self-serving. No other evidence was presented employees for minor and negligible o enses may be considered as ARTICLE 298. Closure of Establishment and Reduction of Personnel.
to support the statements of the Captain. In Skippers United illegal dismissal. — The employer may also terminate the employment of any
Pacific, Inc. v. NLRC, the Court did not give weight and credence employee due to
WON Nepomuceno and Palit-Ang were illegally dismissed.
to the uncorroborated Chief Engineer's Report which purportedly
speci ed the causes for the seafarer's dismissal. In YES. For an act to be considered a loss of trust and con dence, it 1. the installation of labor-saving devices,
Maersk-Filipinas Crewing, Inc. v. Avestruz, the Court likewise must be first, work-related, and second, founded on clearly 2. redundancy,
disregarded the uncorroborated and self-serving electronic mails of established facts.
the ship captain as proof of the seafarer's supposed neglect of duty 3. retrenchment to prevent losses or
The breach of trust must likewise be willful. Nepomuceno alleges
and perverse and wrongful attitude. 4. the closing or cessation of operation of the
that he was illegally dismissed merely for his failure to inform his
Here, while the report was signed by four (4) crew members, the superiors of the actual dates of his vacation leave. establishment or undertaking
statements contained therein were, as correctly observed by the CA,
Nepomuceno turned over all of his pending work to a reliever unless the closing is for the purpose of circumventing the provisions
based on acts witnessed only by Captain Buton.
before he left for Malaysia. He was able to reach his sales quota and of this Title, by serving a written notice on the workers and the
Incompetence or ine ciency, as a ground for dismissal, is surpass his sales target even before taking his vacation leave. DOLE at least one (1) month before the intended date thereof.
understood to mean the failure to attain work goals or work quotas, Respondents did not su er any nancial damage as a result of his
In case of termination due to the installation of labor-saving
either by failing to complete the same within the allotted reasonable absence. This was also petitioner Nepomuceno's rst infraction in
devices or redundancy, the worker a ected thereby shall be
period, or by producing unsatisfactory results. his nine (9) years of service with respondents. None of these
entitled to a separation pay equivalent to at least his one (1) month
circumstances constitutes a willful breach of trust on his part.
Petitioners failed to show that respondent willfully or deliberately pay or to at least one (1) month pay for every year of service,
caused the alleged accident during the mooring operations or that whichever is higher.

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Labor Law and Social Legislation Reviewer for the 2022 Bar

necessary by the introduction of labor-saving machinery or

In case of retrenchment to prevent losses and in cases of closures or 3) Retrenchment. — or downsizing is a mode of terminating
devices.
cessation of operations of establishment or undertaking not due employment initiated by the employer through no fault of the
a) There must be introduction of machinery, equipment or employee and without prejudice to the latter, resorted to by
to serious business losses or nancial reverses, the separation pay
other devices; management during periods of business recession, industrial
shall be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher. b) The introduction must be done in good faith; depression or seasonal uctuations or during lulls over
shortage of materials.
A fraction of at least six (6) months shall be considered one (1) c) The purpose for such introduction must be valid such as
whole year. to save on cost, enhance e ciency and other justi able a) The retrenchment must be reasonably necessary and likely
economic reasons; to prevent business losses;

Common Requisites d) There is no other option available to the employer than b) The losses, if already incurred, are not merely de
the introduction of machinery, equipment or device and minimis, but substantial, serious, actual and real, or, if
a) Good faith;
the consequent termination of employment of those only expected, are reasonably imminent;
b) Termination is matter of last resort;
a ected thereby; and c) The expected or actual losses must be proved by
c) Two (2) Separate notices served on the a ected EE and su cient and convincing evidence;
e) There must be fair and reasonable criteria in selecting
DOLE ONE MONTH prior to intended date of
employees to be terminated. d) The retrenchment must be in good faith for the
termination;
2) Redundancy. — exists when "the services of an employee are advancement of its interest and not to defeat or
d) Separation pay; circumvent the employees' right to security of tenure; and
in excess of what is reasonably demanded by the actual
i) Installation of labor saving Device or Redundancy — requirements of the enterprise." e) There must be fair and reasonable criteria in
1 month pay or at least 1 month pay for every year of ascertaining who would be dismissed and who would be
a) written notice served on both the employees and the
service whichever is higher; retained among the employees, such as status, e ciency,
DOLE at least one month prior to the intended date of
ii) Retrenchment or closure not due to serious losses — seniority, physical tness, age, and nancial hardship for
retrenchment;
1 month pay or at least 1/2 month pay for every year certain workers.
b) payment of separation pay equivalent to at least one
of service whichever is higher; 4) Closing or cessation of operation. — Refers to the
month pay or at least one month pay for every year of
iii) Closure due to serious losses — NONE. service, whichever is higher; complete or partial cessation of the operations and/or
shut-down of the establishment of the employer.
iv) CBA provision shall prevail. c) good faith in abolishing the redundant positions; and
a) There must be a decision to close or cease operation of the
e) Fair and reasonable criteria. d) fair and reasonable criteria in ascertaining what enterprise by the management;
1) Installation of labor-saving devices. — refers to the positions are to be declared redundant and accordingly
abolished. b) The decision was made in good faith; and
reduction of the number of workers in any workplace made

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c) There is no other option available to the employer except the SOLE when he or she assumes jurisdiction over a labor the employee a ected by the redundancy.
to close or cease operations. dispute in an industry that is considered indispensable to
WON Acosta was validly dismissed from employment on the ground
the national interest.
5) Disease. — To be a valid ground for termination, the of redundancy.
following must be present: WON the 2002 redundancy program of PLDT was valid.
NO. Respondents' only basis for declaring petitioner's position
a) The employee must be su ering from any disease; YES. To establish good faith, the company must provide substantial redundant was that his function, which was to monitor the delivery
proof that the services of the employees are in excess of what is of supplies, became unnecessary upon completion of the shipments.
b) The continued employment of the employee is
required of the company, and that fair and reasonable criteria were However, there was no mention of monitoring shipments as part of
prohibited by law or prejudicial to his/her health as
used to determine the redundant positions. petitioner's tasks. If his work pertains mainly to the delivery of
well as to the health of his/her co-employees; and
supplies, it should have been speci cally stated in his job
PLDT's declaration of redundancy was backed by substantial
c) There must be certi cation by a competent public description. There was, hence no basis for respondents to consider
evidence showing a consistent decline for operator-assisted calls for
health authority that the disease is incurable within a his position irrelevant when the shipments had been completed.
both local and international calls because of cheaper alternatives.
period of six (6) months even with proper medical
Likewise, respondents failed to show that they used fair and
treatment. Aquino v. NLRC di erentiated between separation pay and
reasonable criteria in determining what positions should be
retirement bene ts:
d) As to procedural due process. — The employer must declared redundant.
furnish the employee two written notices in terminations 1. Separation pay is required in the cases enumerated in
In Panlilio v. NLRC, this Court held that fair and reasonable
due to disease, namely: Articles 283 and 284. We have held that it is a statutory
criteria may take into account the preferred status, e ciency, and
right designed to provide the employee with the
i) the notice to apprise the employee of the ground for seniority of employees to be dismissed due to redundancy.
wherewithal during the period that he is looking for
which his dismissal is sought; and
another employment.
ii) the notice informing the employee of his dismissal,
2. Retirement bene ts, where not mandated by law, may be Read-Rite Phils v. Francisco, et al. 2017
to be issued after the employee has been given
granted by agreement of the employees and their employer
reasonable opportunity to answer and to be heard on
or as a voluntary act on the part of the employer. Given the diametrical nature of an involuntary and a voluntary
his defense.
Retirement bene ts are intended to help the employee separation from service, one necessarily excludes the other. For sure,
enjoy the remaining years of his life. an employee's termination from service cannot be voluntary
Manggagawa ng Komunikasyon sa Pilipinas v. PLDT 2017
and involuntary at the same time.
An order of reinstatement is di erent from a return-to-work order.
1. The award of reinstatement, including backwages, is Acosta v. Matiere SAS 2019
awarded by a Labor Arbiter to an illegally dismissed Flight Attendants and Stewards
In redundancy, an employer must show that it applied fair and 2018 En Banc
Association of the Phils. v. PAL
employee pursuant to Article 294.
reasonable criteria in determining what positions have to be declared
2. On the other hand, a return-to-work order is issued by redundant. Otherwise, it will be held liable for illegally dismissing In determining the validity of a retrenchment, judicial notice may be

By RGL 66 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

taken of the nancial losses incurred by an employer undergoing b) Detailed narration of the facts and circumstances that will
Employees who have earned their keep by demonstrating exemplary
corporate rehabilitation. In such a case, the presentation of audited
performance and securing roles in their respective organizations serve as basis for the charge against the employee. A
nancial statements may not be necessary to establish that the general description of the charge will not suffice; and
cannot be summarily disregarded by nakedly pecuniary
employer is su ering from severe nancial losses.
considerations. c) A directive that the employee is given opportunity to
submit a written explanation within a reasonable period.

La Consolacion College of Manila, et al. v. Pascua 2018 "Reasonable period" should be construed as a period of at
Fuji Television v. Espiritu 2014
least ve (5) calendar days from receipt of the notice.
When termination of employment is occasioned by retrenchment to
There is no evidence showing that Arlene was accorded due process. 2) After serving the rst notice, the employer should a ord the
prevent losses, an employer must declare a reasonable cause or
After informing her employer of her lung cancer, she was not given employee ample opportunity to be heard and to
criterion for retrenching an employee. Retrenchment that
the chance to present medical certi cates. Fuji immediately defend himself with the assistance of his representative if he
disregards an employee's record and length of service is an
concluded that Arlene could no longer perform her duties because
illegal termination of employment. so desires.
of chemotherapy. It did not ask her how her condition would a ect
WON Pascua's retrenchment was valid based on the criteria that she her work. Neither did it suggest for her to take a leave, even though "Ample opportunity to be heard" means any meaningful
had the highest rate of pay. she was entitled to sick leaves. Worse, it did not present any opportunity given to the employee to answer the charges
certi cate from a competent public health authority. What Fuji did against him and submit evidence in support of his defense,
NO. Jurisprudence requires that the necessity of retrenchment to
was to inform her that her contract would no longer be renewed, whether in a hearing, conference or some other fair, just and
stave o genuine and signi cant business losses or reverses be
and when she did not agree, her salary was withheld. Thus, the reasonable way. A formal hearing or conference becomes
demonstrated by an employer's independently audited
Court of Appeals correctly upheld the nding of the NLRC that mandatory only
nancial statements. Documents that have not been the subject
for failure of Fuji to comply with due process, Arlene was illegally a) when requested by the employee in writing or
of an independent audit may very well be self-serving.
dismissed.
The records indicate that La Consolacion su ered serious business b) substantial evidentiary disputes exist or a company
reverses or an aberrant drop in its revenue and income, thus, rule or
compelling it to retrench employees. 2 Procedural due process c) practice requires it, or
La Consolacion's failure was non-compliance with using fair and d) when similar circumstances justify it.
reasonable criteria that considered the status and seniority of the a Two-notice rule 3) After determining that termination of employment is justi ed,
retrenched employee.
1) The rst written notice should contain: the employer shall serve the employee a written notice of
La Consolacion's disregard of respondent's seniority and preferred termination indicating that:
status relative to a part-time employee indicates its resort to an a) The speci c causes or grounds for termination;
a) all circumstances involving the charge against the
unfair and unreasonable criterion for retrenchment.
employee have been considered; and

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Labor Law and Social Legislation Reviewer for the 2022 Bar

increases are not akin to allowances or bene ts, and

b) the grounds have been established to justify the 2) Reinstatement to Former Position. —
cannot be confused with either. (Equitable Banking v. Sadac)
severance of their employment.
a) An employee who is separated from work without just
The foregoing notices shall be served personally to the cause shall be reinstated to his former position, unless c Separation pay, doctrine of strained relations
employee or to the employee's last known address. such position no longer exists at the time of his
reinstatement, in which case he shall be given a 1. Separation pay is made an alternative relief in lieu of
3 Illegal dismissal, reliefs therefrom substantially equivalent position in the same reinstatement in certain circumstances, like:
establishment without loss of seniority rights. a. when reinstatement can no longer be e ected in view of
Effect or Consequences of Dismissal. — An employee who is
b) In case the establishment where the employee is to be the passage of a long period of time or because of the
unjustly dismissed from work shall be entitled to
reinstated has closed or ceased operations or where his realities of the situation;
a. reinstatement without loss of seniority rights and other former position no longer exists at the time of b. reinstatement is inimical to the employer’s interest;
privileges and to his reinstatement for reasons not attributable to the fault of
c. reinstatement is no longer feasible;
b. full backwages, inclusive of allowances, and to his the employer, the employee shall be entitled to separation
pay equivalent to at least one-month salary or to d. reinstatement does not serve the best interests of the
c. other bene ts or their monetary equivalent one-month salary for every year of service, whichever is parties involved;
computed from the time his compensation was withheld from him higher, a fraction of at least six months being considered
e. the employer is prejudiced by the workers’ continued
up to the time of his actual reinstatement. as one whole year. (Sec 4 Rule I Book 6)
employment;
GR: When an EE is validly dismissed, NO separation pay is b Backwages f. facts that make execution unjust or inequitable have
given. supervened; or
1) Backwages in general are granted on grounds of equity for
EXC: Such cause does not constitute serious misconduct nor earnings which a worker or employee has lost due to his illegal g. strained relations between the employer and employee
re ect on the EE’s moral character, separation pay MAY dismissal. It is not private compensation or damages but is
2. Award When Reinstatement not Viable
be validly awarded. This is the DISCERNING awarded in furtherance and e ectuation of the public
COMPASSION doctrine. objective of the Labor Code. a. Backwages from date of dismissal until nality of
decision;
2) The rule in Bustamante is controlling that the dismissed
a Reinstatement employee is to be paid backwages for the entire period that he b. Separation pay from date of employment until nality of
1) An employee who is unjustly dismissed from work shall be was without work, without deduction and without decision (not date of dismissal);
entitled to reinstatement without loss of seniority rights and quali cation c. 10% attorney’s fees based on the awards computed; and
to back wages from the time his compensation was withheld 3) The base gure is the wage rate at time of dismissal d. Interest on the awards computed from date of nality of
from him up to the time of his reinstatement. (Sec 3 Rule I inclusive of “allowances”, excluding salary increases. Salary decision until they are paid, these monetary claims being
Book 6)

By RGL 68 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

equivalent to a forbearance of credit (Javellana, Jr v. Belen

failed to present substantial evidence to support their allegations Likewise, this court has recognized that “in actions for recovery of
2010)
that respondent had, in any way, participated in the theft of the wages or where an employee was forced to litigate and, thus, incur
3. Doctrine of Strained Relations. — The payment of company's stolen items and that after his preventive suspension he expenses to protect his rights and interest, the award of attorney’s
separation pay is considered an acceptable alternative to no longer reported for work. fees is legally and morally justi able.” Due to her illegal dismissal,
reinstatement when the latter option is no longer desirable or Arlene was forced to litigate.
viable.
Strained relations must be demonstrated as a fact, however, to Fuji Television v. Espiritu 2014
be adequately supported by evidence — substantial evidence Barroga v. Quezon Colleges of the North 2018
Moral Damages
to show that the relationship between the employer and the
Case law instructs that in labor cases where the concerned employee
employee is indeed strained as a necessary consequence of the Quitclaims in labor cases do not bar illegally dismissed employees
is entitled to the wages/bene ts prayed for, said employee is also
judicial controversy. from ling labor complaints and money claims.
entitled to attorney's fees amounting to ten percent (10%) of
Moral damages are awarded “when the dismissal is attended by bad the total monetary award due him.
d Damages faith or fraud or constitutes an act oppressive to labor, or is done in
a manner contrary to good morals, good customs or public policy.”
Distribution & Control Products Inc. v. Santos 2017 On the other hand, exemplary damages may be awarded when the f Liabilities of corporate o cers
dismissal was e ected “in a wanton, oppressive or malevolent
WON Santos was validly dismissed for just cause. manner.” GR: O cers of a corporation are NOT liable for their o cial
NO. Termination without a just or authorized cause renders acts unless it is shown they have exceeded their authority.
Apart from Arlene’s illegal dismissal, the manner of her dismissal
the dismissal invalid, and entitles the employee to reinstatement was e ected in an oppressive approach with her salary and other EXC: Where the incorporators and directors belong to a single
without loss of seniority rights and other privileges and full bene ts being withheld, when she had no other choice but to sign family.
backwages, inclusive of allowances, and other bene ts or their the non-renewal contract.
monetary equivalent computed from the time the compensation
was not paid up to the time of actual reinstatement. g Burden of proof
An employee's removal for just or authorized cause but without e Attorneys’ fees 1. In illegal dismissal cases, the fundamental rule is that when an
complying with the proper procedure, on the other hand, does employer interposes the defense of resignation, the burden to
not invalidate the dismissal. It obligates the erring employer to prove that the employee indeed voluntarily resigned necessarily
pay nominal damages to the employee, as penalty for not Fuji Television v. Espiritu 2014 rests upon the employer.
complying with the procedural requirements of due process.
Article 111 of the Labor Code states that “in cases of unlawful 2. The employer bears the burden of proof to prove that the
It is true that respondent may indeed be considered as one who withholding of wages, the culpable party may be assessed attorney’s termination was for a valid or authorized cause.
occupies a position of trust and con dence. However, petitioners fees equivalent to ten percent of the amount of wages recovered.”

By RGL 69 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

a. Failure to discharge this burden means that the dismissal 3) Acceptance of resignation is not necessary. Resignation may Diwa Asia Publishing et al. v. De Leon 2018
is illegal. however be withdrawn even if EE called it irrevocable. If the
WON the issuance of communications to reprimand and/or correct an
ER has accepted and approved the tendered resignation,
b. But before the employer must bear the burden of proving erring employee forms part of the employer's management
withdrawal thereafter requires the ER’s consent.
that the dismissal was legal, the employees must first prerogatives and is not tantamount to harassment, let alone illegal
establish by substantial evidence that indeed they were 4) Generally, an EE who voluntarily resigns is NOT entitled to dismissal.
dismissed. separation pay. There are however two exceptions:
NO. Respondent was excluded from important HR decisions
c. If there is no dismissal, then there can be no question as to a) When stipulated in CBA; which she was expected not only to be privy to, but also to have a say
the legality or illegality thereof. in, by virtue of her position in the company.
b) Sanctioned by established ER practice or policy.
3. The burden of proving compliance with the requirements of There is constructive dismissal when an employee's functions,
notice and hearing prior to respondent's dismissal from 5) Constructive dismissal occurs when an employee quits
which were originally supervisory in nature, were reduced; and such
employment falls on the employer. because continued employment is rendered impossible,
reduction is not grounded on valid grounds such as genuine
unreasonable or unlikely as in the case of an o er of
business necessity.
demotion in rank and a diminution in pay.
C Termination by employee The reduction in respondent's duties and responsibilities as HR
6) The TEST of constructive dismissal is whether a reasonable
Manager amounted to a demotion that was tantamount to
person in the position of the EE would have felt compelled to
1 Resignation vs. Constructive dismissal constructive dismissal.
give up his position under the circumstances. It is an act
1) Resignation is the VOLUNTARY act of an employee amounting to dismissal but made to appear it is not. It is The above-cited circumstances indubitably present a hostile and
dissociating from his employment in the belief that personal therefore a dismissal in disguise. unbearable working environment that reasonably compelled
reason cannot be sacri ced in favor of the exigency of the respondent to leave her employment. Respondent, therefore, was
7) Constructive dismissal is distinguished from illegal dismissal
service. Personal reasons may be due to health concerns. constructively dismissed.
in that in the latter, intent to dismiss is clearly expressed by
2) The law requires the EE to submit an advance notice to the the ER. In the former however, ER NEVER indicates that he
ER known as a RESIGNATION NOTICE. is terminating the EE.
Del Rio v. DPO Phils. 2018
a) It is to be given at least 1 month before e ectivity date of 8) The unilateral and arbitrary reduction of the work day scheme
resignation. that signi cantly reduced employees’ salaries is a form of WON the CA is correct in deleting the award of separation pay in
constructive dismissal. (Intec Cebu v. CA 2016) favor of petitioner.
b) The notice is for the bene t of the ER.
9) A college professor that was later appointed as a laboratory YES. There was no employment contract, much less a CBA, which
c) ER has discretion to shorten the period.
custodian, divesting him of his teaching load, was contained the stipulation that would grant separation pay to
d) Failure to le notice will hold EE liable for damages for constructively dismissed. (Divine Word College of Laoag v. resigning employees. Neither was there a company practice or policy
losses. Mina 2016) that was proven to exist in the instant case.

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complaint for illegal dismissal with prayer for reinstatement negates

any intention to abandon her employment.
Doble, Jr. v. ABB Inc. 2017 Maria De Leon Transportation Inc., et al. v. Macuray 2018

Constructive dismissal is de ned as quitting or cessation of An employee can not be said to have abandoned his employment
work because continued employment is rendered impossible, Mehitabel Inc v. Alcuizar 2017 when he merely availed of a company practice of taking sabbaticals
unreasonable or unlikely. There is involuntary resignation due in order to a ord them the opportunity to recover from the stresses
to the harsh, hostile, and unfavorable conditions set by the The ling of a complaint for illegal dismissal does not ipso facto of driving the same long and monotonous bus routes by accepting
employer. foreclose the possibility of abandonment. It is not the sole indicator jobs elsewhere.
in determining whether or not there was desertion. Other
On the other hand, resignation is the voluntary act of an WON there was just cause for dismissing Macuray due to
circumstances surrounding the case must be taken into account in
employee who is in a situation where one believes that personal abandonment.
resolving the issue of whether or not there was abandonment.
reasons cannot be sacri ced in favor of the exigency of the service, NO. Macuray was not dismissed from work and he did not abandon
WON Alcuizar was dismissed by Mehitabel.
and one has no other choice but to dissociate oneself from his employment.
employment. It is a formal pronouncement or relinquishment of an NO. The publications were made through sheer inadvertence, and
Even assuming that respondent was indeed told by respondent's bus
o ce, with the intention of relinquishing the o ce accompanied by that the vacancy is actually for the position of Purchasing O cer,
dispatcher Roger Pasion that he was AWOL, this was not
the act of relinquishment. rather than Purchasing Manager.
tantamount to dismissal, actual or constructive. An ordinary bus
Alcuizar was informed of the error committed, and that it was made dispatcher has no power to dismiss an employee.
clear to him that he was never terminated from service at that time
2 Abandonment in spite of his poor performance.
WON Alcuizar abandoned his employment. D Preventive Suspension
Claudia’s Kitchen Inc. v. Tanguin 2017 YES. Respondent's non-compliance with the directive in the 1) May be de ned as the temporary removal of an EE charged for
Return to Work to Our mind, signi es his intention to sever the violation of company rules from his present status or position.
In abandonment, absence must be accompanied by overt acts
employment relation with petitioner, and gives credence to the It is not a disciplinary measure and should not be confused
unerringly pointing to the fact that the employee simply does not
latter's claim that it was respondent who abandoned his job. with suspension imposed as a penalty. It shall not last longer
want to work anymore. Mere absence or failure to report for work,
even after a notice to return to work has been served, is not enough It can be gathered that respondent's departure was merely a than thirty (30) days.
to amount to an abandonment of employment. precursor to his scheme to turn the table against petitioner. 2) This may be imposed while an investigation is ongoing.
Realizing that his employment was at serious risk due to his habitual
Here, there was no abandonment on the part of respondent. 3) The notice of preventive suspension cannot be
neglect of his duties, respondent jumped the gun on petitioner by
Records are bereft of any indication that Tanguin's failure to report considered as adequate notice to explain. (Tanala v.
lodging a baseless complaint for illegal dismissal even though it was
for work was with a clear intent to sever her employment NLRC)
he who abandoned his employment.
relationship with the petitioners. Moreover, Tanguin's act of ling a

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Labor Law and Social Legislation Reviewer for the 2022 Bar

4) Reassignment or transfer as remedial measure. — The was de ned as that "period of time when security guards are in
Mamaril's initial suspension was a preventive suspension that was
purpose of reassignments is no di erent from that of between assignments or when they are made to wait after being
necessary to protect Red System's equipment and personnel.
preventive suspension which management could validly relieved from a previous post until they are transferred to a new
Mamaril was placed under preventive suspension considering that
impose as a disciplinary measure for the protection of the one."
during the pendency of the administrative hearings, he was noticed
company's property pending investigation of any alleged
to have several near-accident misses and he had exhibited a lack of Here, when Bermeo led his complaint for constructive dismissal on
malfeasance or misfeasance committed by the employee. (Ruiz
concern for his work. His inattentiveness posed a serious threat to September 5, 2008, it was only a week after his unsuccessful
v. Wendel Osaka Realty 2012)
the safety of the company equipment and personnel. assignment in French Baker on August 28, 2008. Even if the
reckoning date would be his last assignment at Trinoma Mall, which
Maula v. Ximex Delivery Express 2017
ended on March 30, 2008, it is still less than the six-month period
Preventive suspension may be legally imposed against an employee E Floating status allowed by Article 301 for employees to be placed on oating status.
whose alleged violation is the subject of an investigation. Preventive Thus, the ling of his complaint for constructive dismissal is
suspension is justi ed where the employee's continued employment premature. Besides, it is unrebutted that the petitioners contacted
poses a serious and imminent threat to the life or property of the Ibon v. Genghis Khan Security Services Inc. 2017 Bermeo for a new assignment even after the latter has led a
employer or of the employee's co-workers. Without this kind of complaint for constructive dismissal.
threat, preventive suspension is not proper. An employer must assign the security guard to another posting
within six (6) months from his last deployment, otherwise, he would
Here, it cannot be said that petitioner posed a danger on the lives of be considered constructively dismissed; and the security guard must
the o cers or employees of respondent or their properties. Being
F Retirement
be assigned to a speci c or particular client. A general
one of the Operation Sta , which was a rank and le position, he return-to-work order does not su ce. GR: Employees dismissed for just cause are generally entitled
could not and would not be able to sabotage the operations of due to vested rights
respondent.
EXC: Where just cause termination proscribes the claim of
Superior Maintenance Services v. Bermeo 2018 retirement pay as cited in the retirement plan.

Mamaril v. Red System Company 2018 Article 301 of the Labor Code was applied only by analogy to 1) Retirement has been de ned as a withdrawal from o ce,
prevent the oating status of employees hired by agencies from public station, business, occupation, or public duty. It is the
WON Red System was guilty of imposing a double penalty against becoming inde nite. This temporary o -detail of employees is not a result of a bilateral act of the parties, a voluntary agreement
Mamaril. result of suspension of business operations but is merely a between the employer and the employee whereby the latter,
NO. Mamaril's preventive suspension and subsequent dismissal consequence of lack of available posts with the agency's subsisting after reaching a certain age, agrees and/or consents to sever his
from the service do not partake of a double penalty; neither may his clients. employment with the former.
dismissal be regarded as harsh and excessive. WON Bermeo was constructively dismissed from work. 2) Under the Labor Code, only unjustly dismissed employees are
entitled to retirement bene ts and other privileges including
NO. In Salvaloza v. NLRC, temporary o -detail or oating status
reinstatement and backwages. Since petitioner’s dismissal was

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Labor Law and Social Legislation Reviewer for the 2022 Bar

for a just cause, he is not entitled to any retirement bene t. (Sy employees who had rendered more than 20 years of service, retirement plan. Hence, the Court deemed it valid and
v. Metrobank) was declared valid and enforceable even though it was not e ective as due notice of the employer's decision to retire
embodied in a CBA. In that case, the Court concluded that an employee was adequately provided.
3) ⭐An employee in the private sector who did not expressly
the employees, who were hired before the execution of the
agree to the terms of an early retirement plan cannot be 11) ⭐Retirement of Part-time Faculty. Under the rule of
employer's retirement plan, were bound by it because the
separated from the service before he reaches the age of 65 statutory construction of expressio unius est exclusio alterius,
retirement plan was expressly made known and accepted
years. The employer who retires the employee Bernardo's claim for retirement bene ts cannot be denied on
by them.
prematurely is guilty of illegal dismissal, and is liable to the ground that he was a part-time employee as part-time
pay his back wages and to reinstate him without loss of 8) In contrast, the case of Jaculbe v. Silliman University did employees are not among those speci cally exempted
seniority and other bene ts, unless the employee has not allow the application of a lower retirement age. The under RA No. 7641 or its Implementing Rules. (Dela Salle
meanwhile reached the mandatory retirement age, in which petitioner in the said case was employed sometime in 1958 Araneta U v. Bernardo 2017)
case he is entitled to separation pay pursuant to the terms of while the retirement plan, which automatically retired its
the plan, with legal interest on the backwages and separation members upon reaching the age of 65 or after 35 years of Catotocan v. Lourdes School of Quezon City 2017
pay reckoned from the nality of the decision. (Laya, Jr v. uninterrupted service to the university, came into being in
RETIREMENT PLAN. Acceptance by the employees of an early
CA 2018 En Banc) 1970. The said retirement plan was not applied to the
retirement age option must be explicit, voluntary, free, and
petitioner because there was no agreement to which the
4) However, where the employee has been informed and had uncompelled.
latter assented.
consented, as when in accepting the employment o er, he has
WON Catotocan's receipt of her retirement benefits will not stop her
assented to all existing rules, regulations and policy of the 9) Similarly, the case of Cercado v. UNIPROM Inc., involved a
from pursuing an illegal dismissal complaint against LSQC.
employer in the employment contract, and furthermore, he non-contributory retirement plan which provided that any
did not object to the compulsory age of retirement in the employee with twenty (20) years of service, regardless of age, NO. LSQC did not illegally dismiss Catotocan from service. While
Retirement Plan, he is deemed bound thereto. (Banco de Oro may be retired at his option or at the option of the company. it may be true that Catotocan was initially opposed to the idea of
Unibank v. Sagaysay 2015) The said plan was adopted while the petitioner therein was her retirement at an age below 60 years, it must be stressed that
employed earlier. There was no voluntary acquiescence to Catotocan's subsequent actions after her "retirement" are actually
5) Jurisprudence is replete with cases discussing the employer's
UNIPROM's early retirement age option on her part. tantamount to her consent to the addendum to the LSQC's
prerogative to lower the compulsory retirement age subject to
retirement policy of retiring her from service upon serving the
the consent of its employees. 10) On the other hand, in Obusan v. PNB, the petitioner, who
school for at least thirty (30) continuous years. Catotocan
was hired by PNB in 1979, was deemed covered by its
6) In Pantranco North Express, Inc. v. NLRC, the Court performed all the acts to ratify her retirement in accordance with
retirement plan adopted in 2000. Considering that on
upheld the retirement of the private respondent therein LSQC's retirement policy.
February 21, 2001, PNB had informed all of its o cers and
pursuant to a CBA allowing the employer to compulsorily
employees about the said retirement plan, the said plan was Catotocan's repeated application and availment of the re-hiring
retire employees upon completing 25 years of service to the
then registered with the BIR and was later recognized by the program of LSQC for quali ed retirees for 3 consecutive years is a
company.
Philnabank Employees Association in its CBA. Despite the supervening event that would reveal that she has already voluntarily
7) In Progressive Development Corporation v. NLRC, the proper dissemination of information, no one questioned the
retirement plan, which allowed the employer to retire

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Labor Law and Social Legislation Reviewer for the 2022 Bar

and freely signi ed her consent to the retirement policy despite her Discipline commensurate to the o ense involved and to the degree of
initial opposition to it. the infraction.
Transfer of employees

Productivity standards
PAL v. Hassaram 2017
A Discipline
Bonus
The determining factor in choosing which retirement scheme to
1) The right or prerogative to discipline covers the following
apply is still superiority in terms of bene ts provided. Change of working hours
rights to:
Bona Fide Occupational Quali cations a) Discipline;

Barroga v. Quezon Colleges of the North 2018 Post-employment restrictions b) Dismiss;

While retirement from service is similar to termination of Clearance procedures c) Determine who to punish;
employment insofar as they are common modes of ending Limitations on management prerogative; police power d) Promulgate rules and regulations;
employment, they are mutually exclusive, with varying juridical
of the State e) Impose penalty (proportionality rule)
bases and resulting bene ts. Retirement from service is
contractual, while termination of employment is statutory. f) Choose which penalty to impose; AND
Kephilco Malaya Employees Union v. Kepco Philippines
WON the CA correctly ruled that petitioner was not illegally g) Impose heavier penalties than what the company
dismissed by respondents, but rather, retired from his employment The employer's right to conduct the a airs of its business, according rules prescribe.
with the latter. to its own discretion and judgment, is well-recognized. An employer
2) The proportionality rule means that the penalty to be
has a free reign and enjoys wide latitude of discretion to regulate all
YES. The Court is inclined to hold that petitioner retired from imposed must be commensurate with the o ense committed.
aspects of employment, including the prerogative to instill discipline
service, but nonetheless, pursued the ling of the instant illegal in its employees and to impose penalties, including dismissal, upon
dismissal case in order to recover the proper bene ts due to him. In erring employees. B Transfer of employees
fact, it is telling that he never asked to be reinstated as he only
sought the payment of his retirement bene ts. In view of the This is a management prerogative, where the free will of 1) The lateral movement from one position to another of
foregoing, respondents must duly pay petitioner not only his management to conduct its own a airs to achieve its purpose takes equivalent rank, level or salary. Could be a movement:
retirement bene ts, but also his other monetary claims. form. The only criterion to guide the exercise of its management
a) From one position to another; or
prerogative is that
b) From one o ce to another within the same business
a) the policies, rules and regulations on work-related activities
establishment.
VII Management Prerogative of the employees must always be fair and reasonable and
2) This is an inherent right to control or manage by the ER.
b) the corresponding penalties, when prescribed,
Consent of EE NOT required.

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Labor Law and Social Legislation Reviewer for the 2022 Bar

3) This is exercised by the ER in the best interest of the company a) Due to parental obligations; authority to transfer or re-assign her where she will be most useful.
to see where a particular EE can be best maximized. For a
b) Additional expenses; WON the transfer of respondents to petitioner's Manila office was a
transfer to be valid, the following REQUISITES must be
valid exercise of management prerogative.
observed: c) Inconvenience;
YES. The transfer could not be validly assailed as a form of
a) Must be reasonable or have a sound purpose; d) Hardship and anguish.
constructive dismissal, for, as held in Benguet Electric
b) Must not inconvenient the welfare of the EE; Cooperative v. Fianza, management had the prerogative to
Peckson v. Robinsons Supermarket 2013
determine the place where the employee is best quali ed to serve
c) Not prejudicial to the EE;
Concerning the transfer of employees, these are the following the interests of the business given the quali cations, training and
d) Not involve a demotion of rank or status; jurisprudential guidelines: performance of the a ected employee.
e) Not be motivated by discrimination; a) a transfer is a movement from one position to another of According to Abbot Laboratories (Phils.), Inc. v. NLRC, the
f) Not made in bad faith; equivalent rank, level or salary without break in the service employee who has consented to the company's policy of hiring sales
or a lateral movement from one position to another of sta willing to be assigned anywhere in the Philippines as demanded
g) Not be e ected as a form of punishment without
equivalent rank or salary; by the employer's business has no reason to disobey the transfer
su cient cause.
order of management. Verily, the right of the employee to security of
b) the employer has the inherent right to transfer or reassign
4) Failure to observe these requisites, the transfer is deemed tenure does not give her a vested right to her position as to deprive
an employee for legitimate business purposes;
CONSTRUCTIVE DISMISSAL. Same reliefs as that of management of its authority to transfer or re-assign her where she
illegal demotion. c) a transfer becomes unlawful where it is motivated by will be most useful.
discrimination or bad faith or is e ected as a form of
5) An EE who refuses to be transferred when such is valid, is
punishment or is a demotion without su cient cause;
guilty of insubordination or willful disobedience of a
lawful order of an ER under Art 297[282] of the LC. d) the employer must be able to show that the transfer is not C Productivity standards
unreasonable, inconvenient, or prejudicial to the employee.
6) Refusal to be transferred is VALID in the following cases
a) Overseas assignment; Aliling v. Feliciano 2012
b) Consequent to promotion; Chateau Royale Sports & Country Club v. Balba 2017
An employer is entitled to impose productivity standards for its
This is a scalar transfer. The EE may refuse as this The burden of proof lies in the employer to prove that the transfer workers, and in fact, non-compliance may be visited with a penalty
entails additional responsibilities. of the employee from one area of operation to another was for a even more severe than demotion.
c) To avoid con ict of interest; valid and legitimate ground, like genuine business necessity. Failure to observe prescribed standards of work, or to ful ll
d) Occasioned by the abolition of the position. The right of the employee to security of tenure does not give her a reasonable work assignments due to ine ciency may constitute just
vested right to her position as to deprive management of its cause for dismissal. Such ine ciency is understood to mean failure
7) Refusal is INVALID

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Labor Law and Social Legislation Reviewer for the 2022 Bar

to attain work goals or work quotas, either by failing to complete the CCBPI v. Iloilo Coca-Cola Plant Employees Union 2018 c) Re ect an inherent quality that would reasonably
same within the allotted reasonable period, or by producing guarantee work e ciency.
WON scheduling Saturday work has ripened into a company practice,
unsatisfactory results. This management prerogative of
the removal of which constituted a diminution of benefits. 2) Employment may not be limited to persons of a particular sex,
requiring standards may be availed of so long as they are
religion, or national origin unless the employer cas show that
exercised in good faith for the advancement of the employer's NO. In Royal Plant Workers Union v. Coca-Cola Bottlers
such quali cations are necessary in the performance of the job
interest. Philippines, Inc.-Cebu Plant, the Court had the occasion to rule that
involved. Exceptions to BFOQ:
the term "bene ts" mentioned in the non-diminution rule refers
to monetary bene ts or privileges given to the employee with a) Employment quali cation is reasonably related to
monetary equivalents. Stated otherwise, the employee bene ts the essential operation of the job involved; and
D Bonus
contemplated by Article 100 are those which are capable of being b) There is a factual basis for believing that all or
measured in terms of money. substantially all persons meeting the quali cation
Mega Magazine Publications v. Defensor 2014 CCBPI withdrew the Saturday work itself, pursuant, as already would be unable to properly perform the duties of
held, to its management prerogative. In fact, this management the job.
The grant of a bonus or special incentive, being a management
prerogative highlights the fact that the scheduling of the Saturday
prerogative, is not a demandable and enforceable obligation, except
work was actually made subject to a condition, i.e., the prerogative G Post-employment restrictions
when the bonus or special incentive
to provide the company's employees with Saturday work based on
1. is made part of the wage, salary or compensation of the 1) An EE is prohibited after separation from joining a
the existence of operational necessity.
employee, or competitor. VALID, subject to limitations as to duration and
In the case at bar, CCBPI's employees were not illegally prevented place.
2. is promised by the employer and expressly agreed upon by from working on Saturdays. The company was simply exercising
the parties. 2) A non-compete clause is not necessarily void for being in
its option not to schedule work pursuant to the CBA provision
which gave it the prerogative to do so. It therefore follows that the restraint of trade as long as there are reasonable limitations as
Bonus is a gratuity or act of liberality of the giver, and cannot be to three (3) things: time, place and trade.
principle of "no work, no pay" nds application in the instant case.
considered part of an employee’s wages if it is paid only when pro ts
are realized or a certain amount of productivity is achieved. If the 3) Restrictive covenant clauses. — In determining whether
desired goal of production or actual work is not accomplished, the the contract is reasonable or not, the following factors should
bonus does not accrue. F Bona Fide Occupational Qualifications be considered:
a) whether the covenant protects a legitimate business
1) To be considered a bona fide occupational qualification,
interest of the employer;
the policy must
E Change of working hours b) whether the covenant creates an undue burden on
a) Serve a legitimate business purpose;
the employee;
b) Be speci c to the occupation at issue; and

By RGL 76 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

c) whether the covenant is injurious to the public While it may be true that the right to transfer or reassign an Article 263 (g) of the Labor Code constitutes an exception to the
welfare; employee is an employer's exclusive right and the prerogative of management prerogative of hiring, ring, transfer, demotion and
management, such right is not absolute. The right of an employer promotion of employees
d) whether the time and territorial limitations contained
to freely select or discharge his employee is limited by the
in the covenant are reasonable; and Article 263 (g) of the Labor Code has been enacted pursuant to
paramount police power for the relations between capital and labor
the police power of the State. Said provision of law requires that
e) whether the restraint is reasonable from the are not merely contractual but impressed with public interest
the powers thereunder be exercised only in labor disputes involving
standpoint of public policy. (Article 1700, New Civil Code). And neither capital nor labor shall
industries indispensable to the national interest.
act oppressively against each other (Article 1701, New Civil Code).
H Clearance procedures
Duncan Assoc. of Detailman-PTGWO v.
Kephilco Malaya Employees Union v. Kepco Philippines Glaxo Wellcome Phils.
Milan v. NLRC 2015
The overly concern of our laws for the welfare of employees is in No reversible error can be ascribed to the Court of Appeals when it
Requiring clearance before the release of last payments to the accord with the social justice philosophy of our Constitution. ruled that Glaxo’s policy prohibiting an employee from having a
employee is a standard procedure among employers, whether public Indeed, the employer's inherent right to discipline is subject to relationship with an employee of a competitor company is a valid
or private. Clearance procedures are instituted to ensure that the reasonable regulation by the State in the exercise of its police power. exercise of management prerogative.
properties, real or personal, belonging to the employer but are in the
possession of the separated employee, are returned to the employer Glaxo has a right to guard its trade secrets, manufacturing formulas,
before the employee’s departure. marketing strategies and other con dential programs and
Son v. UST 2018
information from competitors, especially so that it and Astra are
Our law supports the employers’ institution of clearance procedures
Thus, pursuant to the 1992 Manual, private educational rival companies in the highly competitive pharmaceutical industry.
before the release of wages. As long as the debt or obligation was
institutions in the tertiary level may extend 'full-time faculty' status
incurred by virtue of the employer-employee relationship, generally,
only to those who possess, inter alia, a master's degree in the eld of
it shall be included in the employee’s accountabilities that are
study that will be taught. This minimum requirement is neither Coca-Cola Bottlers Phils Inc. v. CCBPI
subject to clearance procedures. 2019
subject to the prerogative of the school nor to the agreement Sta Rosa Plant Employees Union
between the parties. For all intents and purposes, this quali cation
The employer does not have the prerogative to impose other
must be deemed impliedly written in the employment contracts
Limitations on management conditions on the amount of loan to be taken which does not
I between private educational institutions and prospective faculty
involve its duty to collect and remit amortizations.
prerogative; police power of the State members.
In carrying out the 50% cap policy, petitioner e ectively limits its
employees on the utilization of their salaries when it is apparent that
Dosch v. NLRC En banc as long as the employee is quali ed to avail the same, he/she may
TASLI-ALU v. CA

By RGL 77 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

where the employer principally operates, the SEADO shall

apply for an SSS loan. This is in contravention with the GR: All issues arising from labor and employment shall be subject
entertain the same and co-conciliate-mediate with the SEAD of the
prohibition on interfering with the disposal of wages under to the 30-day mandatory conciliation-mediation.
region where the employer principally operates.
Article 112 of the Labor Code.
EXC:
Consolidation of RFA. — Where two or more RFAs involving
a) Notices of strike/lockout or preventive mediation cases the same responding party and issues are led before di erent
with the National Conciliation and Mediation Board
VIII Jurisdiction and Reliefs SEADs within the same region/o ce/unit, the RFAs shall be
(NCMB); consolidated before the rst SEAD taking cognizance of the RFAs,
Mandatory conciliation-mediation, SENA b) Issues arising from the interpretation or implementation when practicable.
of the collective bargaining agreement and those arising Schedule of Conferences
Labor Arbiter from interpretation or enforcement of company
personnel policies which should be processed through the a. Initial — within 5 working days from date of assignment of
National Labor Relations Commission
grievance machinery. RFA;
Judicial review of labor rulings b. Succeeding — as many within the 30 day mandatory C-M
c) Applications for exemption from Wage Orders with the
Bureau of Labor Relations National Wages and Productivity Commission (NWPC) period;

d) Violations of POEA Rules and Regulations involving: c. Resetting — GR: not allowed;
National Conciliation and Mediation Board
1) Serious o enses and o enses penalized with cancellation EXC: reasonable ground, concurred by other party. In such
POEA case, the conference shall be held not later than 3 calendar
of license;
DOLE Regional Directors days from original sched;
2) Disciplinary actions against overseas workers/seafarers
which are considered serious o enses or which carry the d. Extension — GR: not extendible;
DOLE Secretary
penalty of delisting from the POEA registry at rst EXC: mutual agreement and possibility of settlement. 15
Grievance machinery o ense; calendar days.
Voluntary arbitrator 3) Complaints initiated by the POEA; Conduct of C-M
Prescription of actions 4) Complaints against an agency whose license is revoked, a. Appearance — GR: Personal;
cancelled, expired or otherwise delisted; and
EXC: Lawyers, agents may appear, with SPAs in the
Mandatory conciliation-mediation, 5) Complaints categorized under the POEA Rules and following circumstances:
A SENA Regulations as not subject to SEnA.
i. Party is outside of country;
DOLE DO No 151-16 or the SEnA IRR Co-conciliation-mediation. — Coordinated C-M by two or
more SEADs shall be observed if the RFA is led with the SEAD ii. Party is a minor or incapacitated; or
most convenient to the requesting party but outside the region

By RGL 78 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

iii. Party died, with which the heir may appear 1. Expiration; f. For enforcement through DOLE RO the requesting party
presenting: may request for the issuance of a writ of execution or the
2. Failure to timely reach agreement;
conduct of compliance visit.
1. Death Certi cate;
3. Non-appearance of responding party in 2 consecutive
2. NSO Marriage or Birth Certi cate to prove scheduled conferences despite due notice;
B Labor Arbiter
relationship.
4. Non-settlement of one or more issues;
b. C-M Process — The SEADO shall:
5. Non-compliance with agreement. 1) Jurisdiction of the Labor Arbiter as
1. Clarify the issues, validate positions and determine the
distinguished from the Regional Director
No referral where the requesting party withdrew RFA.
underlying issues; a) Under Art 224[217] of LC
e. Cognizance over referred RFAs — LA or appropriate
2. Narrow down the disagreements and broaden areas for i. Unfair labor practice cases;
DOLE agency.
settlement; ii. Illegal dismissal;
In case of settlement agreements
3. Encourage parties to generate options and enter into iii. Money claims > P5K;
stipulations; a. Reduced in writing using the SEnA Settlement Agreement
Form, signed by both parties and attested by the SEADO. iv. Claims for damages arising from ER-EE
4. O er proposals and options toward mutually acceptable relations; and
solutions and voluntary settlement; b. Agreement on monetary claims arising from violations of
labor standards shall be fair and reasonable, and not contrary v. Legality of strikes and lockouts.
5. Prepare the settlement agreement in consultation with the
to law, public morals and public policy. b) Under Art 124 of LC. — Disputes involving legislated
parties; and
c. Types wage increases and wage distortion in unorganized
6. Monitor the voluntary and faithful compliance of the establishments not voluntarily settled.
settlement agreement. i. Full;
c) Under Art 128(b) of LC. — Where the ER contests the
c. Pre-termination ii. Partial - installment, or reinstatement is on a future ndings of the labor employment and enforcement o cer
agreed date. and raises issues supported by documentary proofs which
1. Written withdrawal by the requesting party;
d. The SEADO shall attach a duly accomplished waiver and were not considered in the course of inspection.
2. Non-appearance of either parties in two (2) consecutive
quitclaim document as proof of full compliance. d) Under Art 233[227] of LC. — Enforcement of
scheduled conferences despite due notices; or
e. In case of non-compliance — The requesting party may le compromise agreements when there is non-compliance
3. Request for referral to the appropriate DOLE o ce or
an action for enforcement with the NLRC/POEA/DOLE by any of the parties thereto.
agency by the requesting party or both parties prior to the
Regional O ce. e) Under Art 276[262-A] of LC. — Issuance of writ of
expiration of the 30-day period.
execution to enforce decisions of VA or panel of VAs, in
d. Issuance of Referral — within 1 day after:
case of their absence or incapacity.

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Labor Law and Social Legislation Reviewer for the 2022 Bar

f) Under Sec 10 of RA 8042. — Money claims of OFWs

It is obvious from the complaint that the plainti s have not alleged The grounds invoked for petitioner's dismissal, namely:
arising out of EER by virtue of any law or contract,
any unfair labor practice. Theirs is a simple action for damages for misappropriation of denominational funds, willful breach of
including claims of death and disability bene ts and for
tortious acts allegedly committed by the defendants. Such being trust, serious misconduct, gross and habitual neglect of duties
damages.
the case, the governing statute is the Civil Code and not the Labor and commission of an o ense against the person of his
g) Other cases as may be provided by law. Code. employer's duly authorized representative, are all based on
Article 282 of the Labor Code which enumerates the just
Century Properties v. Babiano 2016
Pepsi-Cola v. Gal-lang causes for termination of employment. By this alone, it is
The CA erred in limiting the "Confidentiality of Documents and palpable that the reason for petitioner's dismissal from the service is
The case involves a complaint for damages for malicious
Non-Compete Clause" only to acts done after the cessation of the not religious in nature.
prosecution which was led with the RTC by the employees of the
employer-employee relationship or to the "post-employment"
defendant company. It does not appear that there is a The SDA cannot hide behind the mantle of protection of the
relations of the parties. As clearly stipulated, the parties wanted to
"reasonable causal connection" between the complaint and the doctrine of separation of church and state to avoid its responsibilities
apply said clause during the pendency of Babiano's employment,
relations of the parties as employer and employees. The as an employer under the Labor Code.
and CPI correctly invoked the same before the labor tribunals.
complaint did not arise from such relations and in fact could have
Silva v. NLRC
arisen independently of an employment relationship between the PAL v. ALPAP 2018
parties. This is a matter which the labor arbiter has no For a ULP case to be cognizable by the Labor Arbiter, and the
PAL's cause of action is not grounded on mere acts of quasi-delict.
competence to resolve as the applicable law is not the Labor NLRC to exercise its appellate jurisdiction, the allegations in the
The claimed damages arose from the illegal strike and acts
Code but the Revised Penal Code. complaint should show prima facie the concurrence of two things,
committed during the same which were in turn closely related and
namely:
San Miguel v. Etcuban intertwined with the respondents' allegations of unfair labor
practices against PAL. 1) gross violation of the CBA; AND
In the present case, while respondents insist that their action is for
the declaration of nullity of their "contract of termination," what is The question of damages becomes a labor controversy and is 2) the violation pertains to the economic provisions of the
inescapable is the fact that it is, in reality, an action for damages therefore an employment relationship dispute. CBA.
emanating from employer-employee relations. Perpetual Help Credit Coop v. Faburada Sim v. NLRC
Respondents' claim for damages is intertwined with their having There is no evidence that private respondents are members of Section 62 of the Omnibus Rules and Regulations provides that the
been separated from their employment without just cause and, petitioner PHCCI and even if they are, the dispute is about Labor Arbiters of the NLRC shall have the original and
consequently, has a reasonable causal connection with their payment of wages, overtime pay, rest day and termination of exclusive jurisdiction to hear and decide all claims arising out
employer-employee relations with SMC. Accordingly, it cannot be employment. Under Art. 217 of the Labor Code, these disputes of EER or by virtue of any law or contract involving Filipino
denied that respondents' claim falls under the jurisdiction of the are within the original and exclusive jurisdiction of the Labor workers for overseas deployment including claims for actual,
labor arbiter as provided in paragraph 4 of Article 217. Arbiter. moral, exemplary and other forms of damages, subject to the rules
Indophil Textile Mills v. Adviento 2014 and procedures of the NLRC.
Austria v. NLRC

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Labor Law and Social Legislation Reviewer for the 2022 Bar

civil action in the regular courts and not before the Labor reinstatement and back wages imputed by petitioner against
International Management Services v. Logarta 2012
Arbiter." respondents fall squarely within the ambit of intra-corporate
In the case at bar, despite the fact that respondent was employed by disputes.
Action for declaratory relief filed by female flight attendants to
Petrocon as an OFW in Saudi Arabia, still both he and his employer
question the constitutionality of their compulsory age of retirement at Corporate Officers. Matling Industrial and Commercial Corp v.
are subject to the provisions of the Labor Code when applicable.
55 compared to male workers. Halaguena v. PAL Coros 2010
The basic policy in this jurisdiction is that all Filipino workers,
whether employed locally or overseas, enjoy the protective mantle of Here, the petitioners' primary relief is the annulment of Section 144, Conformably with Section 25 of the Corporation Code, a position
Philippine labor and social legislations. Part A of the PAL-FASAP CBA, which allegedly discriminates must be expressly mentioned in the By-Laws in order to be
against them for being female ight attendants. The subject of considered as a corporate o ce. Thus, the creation of an office
Action for damages by employer against employee who resigned short
litigation is incapable of pecuniary estimation, exclusively pursuant to or under a By-Law enabling provision is not enough to
of 30 day prior notice. Eviota v. CA
cognizable by the RTC. Being an ordinary civil action, the same is make a position a corporate office.
Petitioner does not ask for any relief under the Labor Code of the beyond the jurisdiction of labor tribunals.
Whoever are the corporate o cers enumerated in the by-laws are the
Philippines. It seeks to recover damages agreed upon in the contract
as redress for private respondent’s breach of his contractual The said issue cannot be resolved solely by applying the exclusive O cers of the corporation and the Board has no power to
Labor Code. Rather, it requires the application of the create other O ces without amending rst the corporate By-laws.
obligation to its "damage and prejudice". Such cause of action is
within the realm of Civil Law, and jurisdiction over the controversy Constitution, labor statutes, law on contracts and the CEDAW, and Real v. Sangu Phil 2011
belongs to the regular courts. More so when we consider that the the power to apply and interpret the constitution and CEDAW is
The better policy to be followed in determining jurisdiction over a
stipulation refers to the post-employment relations of the parties. within the jurisdiction of trial courts, a court of general
case should be to consider concurrent factors such as the status or
jurisdiction.
Replevin case by ER against EE in Smart v. Astorga relationship of the parties or the nature of the question that is
Intracorporate vs Labor Dispute. Okol v. Slimmers World subject of their controversy. In the absence of any one of these
SMART’s demand for payment of the market value of the car or, in
Section 25 of the Corporation Code enumerates corporate o cers factors, the SEC (RTC) will not have jurisdiction.
the alternative, the surrender of the car, is not a labor, but a civil
dispute. It involves the relationship of debtor and creditor rather as the president, secretary, treasurer and such other o cers as may be When petitioner sought for reinstatement, he wanted to
than employee-employer relations. As such, the dispute falls within provided for in the by-laws. In Tabang v. NLRC, we held that an recover his position as Manager, a position which has been
the jurisdiction of the regular courts. "o ce" is created by the charter of the corporation and the o cer is declared to be not a corporate position. The case is thus a
elected by the directors or stockholders. On the other hand, an termination dispute and, consequently, falls under the jurisdiction
Action by employer to recover unpaid loans of employees who were
"employee" usually occupies no o ce and generally is employed not of the Labor Arbiter pursuant to Section 217 of the Labor Code.
dismissed. HSBC Ltd. Staff Retirement Plan v. Sps Broqueza
by action of the directors or stockholders but by the managing
2010 Cacho v. Balagtas 2018
o cer of the corporation who also determines the compensation to
The enforcement of a loan agreement involves "debtor-creditor be paid to such employee. Under the nature of the controversy test, the disagreement must
relations founded on contract and does not in any way concern not only be rooted in the existence of an intra-corporate
Here, petitioner was a director and o cer of Slimmers World. The
employee relations. As such it should be enforced through a separate relationship, but must as well pertain to the enforcement of the
charges of illegal suspension, illegal dismissal, unpaid commissions,
parties' correlative rights and obligations under the Corporation

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Labor Law and Social Legislation Reviewer for the 2022 Bar

Code and the internal and intra-corporate regulatory rules of the d) If serious errors in the ndings of facts are raised 9) Appeal from Decision involving monetary award may
corporation. which may cause grave and irreparable damage or be perfected only upon the posting of a bond (Sec 6)
injury to appellant. which shall either be in the form of
It is clear that the termination complained of is intimately and
inevitably linked to Balagtas's role as North Star's EVP. Balagtas's 6) To be led with the Regional Arbitration Branch of the a) Cash deposit; or
dismissal is an intra-corporate controversy, not a mere labor Regional O ce where the case was heard and decided.
b) Surety bond
dispute.
7) No appeal from interlocutory order shall be entertained.
Equivalent in amount to the monetary award exclusive of
Ellao v. BATELEC 2018 (Sec 10 Rule VI, supra).
damages and attorney’s fees.
Here, the position of General Manager is expressly provided for 8) REQUISITES (Sec 4):
In case of surety bond, the same shall be issued by a
under Article VI, Section 10 of BATELEC I's By-laws. It is therefore
a) Filed within the reglementary period; reputable bonding company duly accredited by the
beyond cavil that Ellao's position as General Manager is a
Commission, and shall be accompanied by original or
cooperative o ce. Accordingly, his complaint for illegal dismissal b) Veri ed by the appellant in accordance to Sec 4 Rule
certi ed true copies of the following:
partakes of the nature of an intra-cooperative controversy. 7 of RoC;
a) a joint declaration under oath by the employer,
c) In the form of a memorandum of appeal which shall
his/her counsel, and the bonding company, attesting
2) Requirements to perfect appeal to NLRC i) State the grounds relied upon and that the bond posted is genuine, and shall be e ective
1) Decisions, awards or order of LA shall be F&E unless
ii) The arguments in support thereof, until nal disposition of the case;
appealed to NLRC within 10 cal days from receipt
thereof. iii) The relief prayed for, and b) an indemnity agreement between the
employer-appellant and bonding company;
2) In case of decisions or resolutions of RD pursuant to Art iv) With a statement of the date the appellant
129, within 5 cal days. received the appealed decision, award or c) proof of security deposit or collateral securing the
order; bond: provided, that a check shall not be considered
3) If last day falls on a weekend or holiday, move to the next
as an acceptable security; and,
working day. d) In 3 legibly typewritten or printed copies; and
accompanied by: d) notarized board resolution or secretary’s
4) No motion or request for extension shall be allowed.
certi cate from the bonding company showing its
i) Proof of payment of the required appeal fee
5) Grounds for appeal: authorized signatories and their specimen signatures.
and legal research fee;
a) Prima facie evidence of abuse of discretion on the NO motion to reduce bond shall be entertained
ii) Posting of a cash or surety bond as
part of LA or RD; except on meritorious grounds, and only upon the posting
provided in Sec 6; and
of a bond in a reasonable amount in relation to the
b) Decision, award or order secured through fraud or
iii) Proof of service upon the other parties monetary award.
coercion, including graft and corruption;
c) If made purely on questions of law; and/or

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Labor Law and Social Legislation Reviewer for the 2022 Bar

The mere ling of a motion to reduce bond without 2) The Labor Arbiter shall motu proprio issue a 1) Original and Exclusive Jurisdiction (OEJ)
complying with the requisites in the preceding paragraphs corresponding writ to satisfy the reinstatement wages as
a) Petition for Injunction in ordinary labor disputes
shall not stop the running of the period to perfect an they accrue until actual reinstatement or reversal of the
appeal. order of reinstatement. (En Banc Resolution No. b) Petition for Injunction on strikes or lockouts (Art
11-12, Series of 2012) 279)
10) Prohibited appeals:
3) The Sheri shall serve the writ of execution upon the c) Certi ed cases which refer to labor disputes causing or
a) Appeal from any interlocutory order of the LA
employer or any other person required by law to obey the likely to cause a strike or lockout in an industry
denying a motion:
same. If he/she disobeys the writ, such employer or person indispensable to the national interest, certi ed to it by
i) To dismiss; may be cited for contempt in accordance with Rule IX. the SOLE for compulsory arbitration pursuant to Art
278(g).
ii) To inhibit; 4) Sec 19(2) Rule V. In case the decision of the Labor
Arbiter includes an order of reinstatement, it shall d) Petition to annul or modify the order or resolution of
iii) For issuance of writ or execution, or
likewise contain: the LA.
iv) To quash writ of execution;
a) a statement that the reinstatement aspect is 2) Exclusive Appellate Jurisdiction (EAJ)
b) Appeal from the issuance of a certi cate of nality
immediately executory; and a) All cases decided by the LA;
of decision by LA;
b) a directive for the employer to submit a report of b) Cases decided by DOLE RD or hearing o cers involving
c) Appeal from orders issued by LA in the course of
compliance within ten (10) calendar days from receipt small money claims under Art 129
execution proceedings.
of the said decision.
3) The NLRC is a quasi-judicial body tasked to promote and
3) Reinstatement and/or execution pending appeal maintain industrial peace by resolving labor and management
Malcaba et al. v. Prohealth Pharma Phils. 2018
1) Sec 12 Rule XI, supra. — In case the decision includes an disputes involving both local and overseas workers through
order of reinstatement, and the employer disobeys the Before any labor tribunal takes cognizance of termination disputes, compulsory arbitration and alternative modes of dispute
directive under the second paragraph of Section 19 of it must rst have jurisdiction over the action. The Labor Arbiter and resolution.
Rule V or refuses to reinstate the dismissed employee, the the NLRC only exercise jurisdiction over termination disputes 4) Extraordinary Remedies. —
Labor Arbiter shall immediately issue writ of between an employer and an employee. They do not exercise
execution, even pending appeal, directing the employer jurisdiction over termination disputes between a corporation and a a) Petition to annul or modify order or resolution, with
corporate o cer. the following grounds:
a) to immediately reinstate the dismissed employee
either physically or in the payroll, and i) Prima facie evidence of abuse of discretion;

b) to pay the accrued salaries as a consequence of such ii) Serious errors in the ndings of facts;
non-reinstatement in the amount speci ed in the
National Labor Relations Commission
C
decision. 2011 NLRC Rules of Procedure

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Labor Law and Social Legislation Reviewer for the 2022 Bar

iii) A party, by fraud, accident, mistake or excusable Turks Shawarma Company v. 2017 re Reduction of Appeal NLRC of a motion for a bond's reduction. Only after the posting
negligence has been prevented from taking an Pajaron, et al. Bond of this required percentage shall an appellant's period to perfect an
appeal; appeal be suspended.
The liberal interpretation of the rules applies only to justi able
iv) Purely on Questions of law; or causes and meritorious circumstances.
v) Order or resolution will cause injustice if not The posting of cash or surety bond is mandatory and Dutch Movers Inc. v. Lequin, et al. 2017
recti ed. jurisdictional; failure to comply with this requirement renders the
decision of the Labor Arbiter nal and executory. WON petitioners are personally liable to pay the judgment awards in
➔ Not later than 10 cal days from receipt of order of LA,
favor of respondents.
aggrieved party may le the petition before the NLRC, WON CA erred in affirming the NLRC's dismissal of petitioners'
furnishing a copy to the adverse party. appeal. YES. Valderrama v. NLRC, and David v. Court of Appeals are
applicable here. In said cases, the Court held that the principle of
b) Injunctive relief — writ of preliminary injunction; NO. It is clear from both the Labor Code and the NLRC Rules of
immutability of judgment, or the rule that once a judgment has
c) Temporary restraining order. Procedure that there is legislative and administrative intent to
become nal and executory, the same can no longer be altered or
strictly apply the appeal bond requirement, and the Court should
modi ed and the court's duty is only to order its execution, is not
CICM Mission Seminaries School of Theology v. Perez 2017 give utmost regard to this intention. However, the Court, in special
absolute. One of its exceptions is when there is a supervening
and justi ed circumstances, has relaxed the requirement of posting a
event occurring after the judgment becomes nal and executory,
In the event the aspect of reinstatement is disputed, backwages, supersedeas bond.
which renders the decision unenforceable.
including separation pay, shall be computed from the time of
The reduction of the appeal bond is allowed, subject to the
dismissal until the nality of the decision ordering the
following conditions:
separation pay.
1. the motion to reduce the bond shall be based on Doble, Jr. v. ABB Inc. 2017
The rule is, if the LA's decision, which granted separation pay in lieu
meritorious grounds; and
of reinstatement, is appealed by any party, the employer-employee The provision states that either a legible duplicate original or
relationship subsists and until such time when decision becomes 2. a reasonable amount in relation to the monetary award is certi ed true copy thereof shall be submitted. If what is submitted is
nal and executory, the employee is entitled to all the monetary posted by the appellant. a copy, then it is required that the same is certi ed by the proper
awards awarded by the LA. Here, petitioners' motion to reduce bond was not predicated on o cer of the court, tribunal, agency or o ce involved or his
meritorious and reasonable grounds and the amount tendered is not duly-authorized representative. The purpose for this requirement is
It has been settled that no essential change is made by a
reasonable in relation to the award. not di cult to see. It is to assure that such copy is a faithful
recomputation as this step is a necessary consequence that
reproduction of the judgment, order, resolution or ruling subject of
ows from the nature of the illegality of dismissal declared in In the case of McBurnie v. Ganzon, the Court has set a the petition.
that decision. By the nature of an illegal dismissal case, the
provisional percentage of 10% of the monetary award
reliefs continue to add on until full satisfaction thereof.
(exclusive of damages and attorney's fees) as reasonable amount of
bond that an appellant should post pending resolution by the
Genpact Services Inc. v. Santos-Falceso 2017

By RGL 84 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

The 2011 NLRC Rules of Procedure, as amended, provides, among with all statutory requirements prior to the date of the nality of the
Rosewood Processing v. NLRC likewise enumerated other
others, that the remedy of ling a motion for reconsideration may award of backwages and separation pay.
instances where there would be a liberal application of the
be availed of once by EACH party.
procedural rules.
Despite their failure to collect on the appeal bond, petitioners do
Pacios et al., v. Tahanang Walang Hagdanan 2018
not deny that they were eventually able to garnish the amount
Malcaba et al. v. Prohealth Pharma Phils. 2018
from respondents' bank deposits. Respondents are considered to In authorizing execution pending appeal of the reinstatement
In appeals of illegal dismissal cases, employers are strictly mandated have substantially complied with the requirements on the posting of aspect of a decision of the Labor Arbiter reinstating a dismissed or
to le an appeal bond to perfect their appeals. Substantial an appeal bond. separated employee, the law itself has laid down a compassionate
compliance, however, may merit liberality in its application. policy.
WON CA should have dismissed outright the Petition for Certiorari WON the Court of Appeals erred in affirming the suspension of the
since respondents failed to post a genuine appeal bond before the 2018 execution proceedings.
Consolidated Distillers of Far East v. Zaragoza
Caguioa, J
NLRC.
YES. The more relevant rule in this case is Rule XI, Section 3 of
NO. In labor cases, an appeal by an employer is perfected only When there is a supervening event that renders reinstatement the NLRC Rules, which provides:
by ling a bond equivalent to the monetary award. impossible, backwages is computed from the time of dismissal until
Section 3. Effect of Perfection of Appeal on Execution.
the nality of the decision ordering separation pay.
Procedural rules require that the appeal bond led be "genuine." — The perfection of an appeal shall stay the execution of the
An appeal bond determined by the NLRC to be "irregular or not WON Court of Appeals committed reversible error in reckoning the decision of the Labor Arbiter except execution for
genuine" shall cause the immediate dismissal of the appeal. period of back wages and separation pay until finality of the decision reinstatement pending appeal.
of this case and not until the time, the supervening event and legal
In Quiambao v. NLRC, this Court held that the mandatory and Execution may be authorized even pending appeal. This Court
impossibility to reinstate arose in this case.
jurisdictional requirement of the ling of an appeal bond could be nds that the principles allowing execution pending appeal invoked
relaxed if there was substantial compliance. Quiambao proceeded NO. The Court agrees with the CA that Condis is liable for in Aris are equally applicable here as petitioners are poor employees,
to outline situations that could be considered as substantial backwages and separation pay until the nality of the decision deprived of their only source of livelihood for years and reduced to
compliance, such as awarding separation pay as ruled in Bani. begging on the streets. In view of their dire straits and since the
Here, the award of separation pay in lieu of reinstatement was made NLRC has already ruled twice on the case in a way that supports the
1. late payment,
subsequent to the nality of the Decision in the Illegal Dismissal release of the supersedeas bond, it is proper to continue with
2. failure of the LA to state the exact amount of money Case. Condis cannot therefore evade its liability to Rogel for execution proceedings in this case despite a pending motion
judgment due, and backwages and separation pay computed until the nality of this for reconsideration.
3. reliance on a notice of judgment that failed to state that a Decision which a rms the order granting separation pay.
bond must rst be led in order to appeal. For Olympia Housing v. Lapastora to apply, the employer must
prove the closure of its business in full and complete compliance D Judicial review of labor rulings

By RGL 85 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

at their own initiative or upon request of either or both

c) All disputes, grievances arising from or a ecting
parties, on all inter-union and intra-union con icts, labor-management relations; except those arising
and all disputes, grievances or problems arising from from interpretation or implementation of CBA
or a ecting labor-management relations in all which are subject to grievance procedure and/or
workplaces, whether agricultural or non-agricultural, voluntary arbitration.
except those arising from the implementation or interpretation
of collective bargaining agreements which shall be the subject National Conciliation and Mediation
F
of grievance procedure and/or voluntary arbitration. Board
2) The Bureau shall have fteen (15) working days to act on The agency attached to DOLE principally in-charge of the
labor cases before it, subject to extension by agreement of the settlement of labor disputes through conciliation, mediation, and
parties. promotion of voluntary approaches to labor dispute prevention
3) ARTICLE 245. Cancellation of Registration. — The and settlement.
certi cate of registration of any legitimate labor organization,
Salient Points of RA 10396
whether national or local, may be cancelled by the Bureau.
1) LA or the appropriate DOLE Agency that has jurisdiction
4) The BLR and the labor relations divisions in the regional over the dispute shall only entertain only endorsed or
o ces have original and exclusive authority to act motu proprio referred cases by the duly authorized o cer.
or upon request on:
2) Any or both parties to the dispute may pre-terminate the C-M
a) Inter-union disputes or representation disputes and request referral to the appropriate DOLE Agency, or if
— refer to cases involving petition for certification both agree, refer the unresolved issue for VA.
election led by a duly registered labor org which seeks
to be the sole and exclusive bargaining agent in an
G POEA
establishment.
b) Intra-union disputes or internal union disputes 1) Shall regulate private sector participation in the recruitment
— disputes or grievances arising from any violation of and overseas placement of workers by setting up a licensing
or disagreement over any provision of the and registration system. It shall also formulate and implement
E Bureau of Labor Relations constitution and by-laws of the union, including a system for promoting and monitoring the overseas
violations on conditions of union membership as per employment of Filipinos.
1) ARTICLE 232. The Bureau of Labor Relations and the Labor LC. 2) The POEA shall exercise original and exclusive jurisdiction
Relations Divisions in the regional o ces of the Department
to hear and decide:
of Labor shall have original and exclusive authority to act,

By RGL 86 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

agent, a CERTIFICATION ELECTION shall

a) all pre-employment/recruitment violation cases which are 261 interpretation and implementation of the CBA
automatically be conducted by the Med-Arbiter.
administrative in character, involving or arising out of except those gross in character;
violations of Rules and Regulations relating to licensing Cases arising from interpretation or enforcement 4) Appeal to NLRC within 5 cal days from receipt of copy of
and registration, including refund of fees collected from of company personnel policies decision.
the workers or violation of the conditions for issuance of
Art All other labor disputes including ULP and 5) NLRC to resolve within 10 cal days from submission of last
license or authority to recruit workers; and
262 bargaining deadlocks, upon agreement of the pleading.
b) disciplinary action cases and other special cases, which are parties 6) Grounds for appeal (Art 229)
administrative in character, involving employers,
principals, contracting partners and OFWs processed by SOLE Art Within 24 hours from knowledge of an a) Prima facie evidence of abuse of discretion;
the POEA. 263(g) occurrence of a labor dispute causing or likely to b) Decision, order or award secured through fraud or
c) All pre-employment/recruitment violation and cause a strike or lockout in an industry coercion, including graft and corruption;
disciplinary action cases shall be barred if not commenced indispensable to the national interest, SOLE
c) Made purely on questions of law;
or led with the Administration within three (3) years may assume jurisdiction, decide on the dispute or
certify the same to NLRC for compulsory d) Serious errors in the ndings of facts.
after such cause of action accrued.
arbitration.
3) Labor Situationers. The POEA, in consultation with the 2. Recovery and adjudicatory power
DFA, shall disseminate information on labor and employment 1) ARTICLE 129. The RD or any of the duly authorized hearing
Visitorial and Enforcement
conditions, migration realities and other facts, as well as o cers of DOLE have jurisdiction over claims for recovery Simple Money Claim
Power
adherence of particular countries to international standards on of wages, simple money claims and other benefits,
human and workers rights which will adequately prepare provided that: Art 128 Art 129
individuals into making informed and intelligent decisions
a) Claim arises from ER-EE Relationship;
about overseas employment. Police power - Inspection and Quasi-judicial - Adjudication
b) Claimant does not seek reinstatement; issuance of orders to compel through summary proceedings
compliance
H DOLE Regional Directors c) Aggregate money claim of each <=P5K.
2) ARTICLE 268. Representation Issue in Organized Enforcement of labor legislation Monetary claims which only
1. Jurisdiction
Establishments. — In organized establishments, when a in general involve labor standards law
O ce Basis Jurisdiction veri ed petition questioning the majority status of the
incumbent bargaining agent is led, the Med-Arbiter O shoots of inspections done Sworn complaints by interested
DOL Art Recovery of wages, simple money claims and by labor o cers or safety party
shall automatically order an election by secret ballot.
E RD 129 other bene ts engineers
3) ARTICLE 269. Petitions in Unorganized Establishments.
VA Art All unresolved grievances arising from the — In any establishment where there is no certi ed bargaining Involves employees still in service Present or past employees at the

By RGL 87 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

wages during the period of such stoppage of work or

time of complaint provided 8. ER may appeal with the NLRC within 5 calendar days from
suspension of operations.
there is no demand for receipt of decision. Appeal must be with cash or security
reinstatement bond. 7. In National Mines and Allied Workers Union v. Marcopper
Mining, if the suspension of operations was ordered by a
No maximum monetary Claim per claimant not to 9. ER may the le MR from an adverse decision of the NLRC;
government agency other than the DOLE, the general "no
amount exceed P5K 10. Petition for Certiorari under Rule 65 to the CA not later than work, no pay" rule should prevail with respect to
60 days from notice; employees' wages during the suspension period, subject to
Exercised by SOLE or any of his RD or any duly authorized
11. Appeal by certiorari under Rule 45 to the SC within 15 days existing CBA terms on leave credits and similar bene ts of
duly authorized representatives, hearing o cer of DOLE
from notice on pure questions of law. employees.
i.e. the RD
8. DOLE D.O. No. 198, S. 2018, distinguished from Bona fide
Appealable to SOLE, then to Appealable to NLRC Enforcement Power on Health and Safety of Workers
suspension of operations (Art 301).
CA 1. An inspection is made via Art 128;
Closure of Business under RA 9231
2. Non-compliance was discovered that poses grave and
Recovery of Wages and Simple Money Claims imminent danger to the health and safety of workers in DOLE DC 03-09
1. Requisites: the workplace. SOLE or RD may order closure of business found to have violated
a. Claimant is an employee or domestic worker; 3. SOLE may order stoppage of work or suspension of any provisions of RA 9231 more than 3 times.

b. Claim does not exceed P5K; operations of unit or department concerned; GR: Prior notice and hearing is required before issuance of
4. Within 24 hours, a hearing shall be conducted to determine such Closure Order, unless:
c. No claim of reinstatement;
whether said stoppage order shall be lifted or not. EXC:
d. Claim arose from ER-EE relationship.
a. If violation is attributable to ER, he shall pay the a. Violation resulted to death, insanity, or serious physical
2. Employee les a pro-forma complaint with the RD; wages of EEs during the period of stoppage or injury to a child employed;
3. RD dockets the complaint as simple money claim; suspension of operations.
b. Prostitution or obscene or lewd shows; or
4. RD issues summons served upon employer as respondent, b. Suspension should not exceed 6 months.
c. There is imminent danger in the life and limb of a child.
together with the copy of complaint; 5. see RA 11058, Strengthening Compliance with
Under any such circumstance, SOLE or RD must, within 5
5. ER is given 5 calendar days to answer; Occupational Safety & Health Standards;
working days from receipt of complaint, order immediate
6. After receiving the answer, RD calls for a summary hearing; 6. SEC. 23. Payment of Workers During Work Stoppage Due to closure.
Imminent Danger. — If stoppage of work due to imminent
7. RD decides within 30 calendar days from date of ling of A close-now-hear-later process is to be adhered to, which shall be
danger occurs as a result of the employer's violation or
the complaint; summary in nature.
fault, the employer shall pay the workers concerned their

By RGL 88 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

I DOLE Secretary a) Embodied in a NOTICE OF INSPECTION c) May be appealed to NLRC within 10 days from
RESULTS; receipt of Decision; MR allowed within 10 days;
1. Jurisdiction
b) All violations will be enumerated therein. d) Petition for Certiorari under Rule 65 to the CA not
ARTICLE 278. Strikes, Picketing, and Lockouts. xxxx later than 60 days from notice;
5) Employer is then informed of the results of the inspection;
(g) When, in his opinion, there exists a labor dispute causing or e) Appeal by certiorari under Rule 45 to the SC within
6) Employer is given the opportunity to comply within 7
likely to cause a strike or lockout in an industry indispensable 15 days from notice on pure questions of law.
days; OR
to the national interest, the SOLE may assume jurisdiction over 12) see DOLE D.O. No. 183, S. 2017
7) Employer may contest the NIR and raise issues which
the dispute and decide it or certify the same to the Commission for
cannot be resolved without considering 13) In People’s Broadcasting Service v. SOLE 2012 En
compulsory arbitration. xxxx
DOCUMENTARY PROOFS that are not veri able in Banc, the issue was WON the SOLE, in exercising his
(h) Before or at any stage of the compulsory arbitration process, the the normal course of the inspection; visitorial power, can determine the existence of ER-EE
parties may opt to submit their dispute to voluntary arbitration. relationship. YES.
8) Should the employer fail to contest, as well as fails to
(i) The SOLE, the Commission or the voluntary arbitrator or panel comply to the NIR, RD will then issue an ORDER OF 14) In Balladares v. Peak Ventures, the worker need not
of voluntary arbitrators shall decide or resolve the dispute within COMPLIANCE; litigate to get what legally belongs to him, for the whole
thirty (30) calendar days from the date of the assumption of enforcement machinery of the DOLE exists to insure its
9) Employer has the following remedies from said order:
jurisdiction or the certi cation or submission of the dispute, expeditious delivery to him free of charge.
as the case may be. The decision of the President, the SOLE, the a) Appeal to SOLE within 10 calendar days, with
15) Exception clause of Art 128. — In Meteoro v.
Commission or the voluntary arbitrator shall be nal and executory bond;
Creative Creatures, respondent contested the ndings
ten (10) calendar days after receipt thereof by the parties. b) Motion for reconsideration with the RD within 7 of the labor inspector during and after the inspection and
calendar days; raised issues the resolution of which necessitated the
2. Visitorial and enforcement powers c) If beyond 7 but not beyond 10 days, considered an examination of evidentiary matters not veri able in the
1) There is a report on non-compliance of employer; appeal from RD to SOLE. normal course of inspection. Hence, the Regional
Director was divested of jurisdiction and should have
2) Upon receipt by SOLE or RD, there will be an ORDER 10) Failure to le MR within reglementary period will make
endorsed the case to the appropriate Arbitration Branch
OF INSPECTION; order FINAL AND EXECUTORY.
of the NLRC.
3) The inspection will be implemented by a Labor and 11) Should employer be able to validly contest NIR, the
proceeding becomes adversarial:
3. Power to suspend e ects of termination
Employment O cer who will then visit the employer’s
premises and conduct inspection. a) RD will endorse the case to RAB of NLRC; ARTICLE 292. Miscellaneous Provisions. — xxxx
4) Inspector will make an INSPECTION REPORT should b) Endorsed to LA; (b) xxxx The Secretary of the Department of Labor and
there be violation or non-compliance. Employment may suspend the effects of the termination

By RGL 89 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

pending resolution of the dispute in the event of a prima facie from the listing of quali ed Voluntary Arbitrators duly accredited by c) any claim by either party that the other party is violating
nding by the appropriate o cial of the DOLE before whom such the Board. any provision of the CBA or company personnel policies.
dispute is pending that the termination
In case the parties fail to select a Voluntary Arbitrator or panel of 4) Grievance machinery; Unresolved grievances. — Refers to
1. may cause a serious labor dispute or Voluntary Arbitrators, the Board shall designate the Voluntary the internal rules of procedures established by the parties in
Arbitrator or panel of Voluntary Arbitrators, as may be necessary, their CBA with voluntary arbitration as the terminal
2. is in implementation of a mass lay-o .
pursuant to the selection procedure agreed upon in the CBA, which step, which are intended to resolve all issues arising from the
shall act with the same force and e ect as if the Arbitrator or panel of implementation and interpretation of their collective
4. Remedies Arbitrators have been selected by the parties. agreement and the company personnel policies or company
1) The ndings of the DOLE, may still be questioned rules and regulations.
through a petition for certiorari under Rule 65 of 1) Grievance refers to any question by either the employer or the
5) Company Personnel Policies. — are guiding principles
the Rules of Court. NOT to the NLRC, but to the CA. union regarding the interpretation or implementation of any
stated in broad, long-range terms that express the
provision of the collective bargaining agreement or
philosophy or beliefs of an organization’s top authority
interpretation or enforcement of company personnel policies.
J Grievance machinery regarding personnel matters. They deal with matters
2) Grievance handling
a) A ecting e ciency and well-being of employees and
ARTICLE 273. Grievance Machinery and Voluntary Arbitration. — a) An employee shall present this grievance or complaint
b) Include the procedures in the administration of
The parties to a CBA shall include therein provisions that will orally or in writing to the shop steward.
ensure the mutual observance of its terms and conditions. i) Wages,
b) If the grievance is valid, the shop steward shall
They shall establish a machinery for the adjustment and resolution immediately bring the complaint to the employee's ii) Bene ts,
of grievances arising from the interpretation or implementation of immediate supervisor. iii) Promotions,
their CBA and those arising from the interpretation or enforcement
c) If no settlement is reached, the grievance shall be referred iv) Transfer and other personnel movement. Which are
of company personnel policies.
to the grievance committee which shall have ten (10) not spelled out in the CBA.
All grievances submitted to the grievance machinery which are not days to decide the case. (Sec 2 Rule XIX Book 5)
settled within seven (7) calendar days from the date of its submission
3) Grievance; Concept and Scope. — Refers to any question K Voluntary arbitrator
shall automatically be referred to voluntary arbitration prescribed
by either the employer or the union regarding
in the CBA.
Compulsory Voluntary
a) the interpretation or implementation of any provision of
For this purpose, parties to a CBA shall name and designate in
the collective bargaining agreement or Definition The law declares Contractual proceeding
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or
include in the agreement a procedure for the selection of such b) interpretation or enforcement of company personnel the dispute subject wherein the parties, to obtain a
Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably policies or to arbitration, speedy and inexpensive nal
regardless of consent disposition of the matter,

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Labor Law and Social Legislation Reviewer for the 2022 Bar

of the parties. select a judge of their own Voluntary Arbitrators shall have original and exclusive b) those arising from the interpretation or enforcement
choice and by consent, submit jurisdiction to hear and decide of company personnel policies
their controversy to him. c) wage distortion issues arising from the application of
1. all unresolved grievances arising from the
interpretation or implementation of the CBA and any wage orders in organized establishments,
Done by Labor Arbiter, Voluntary Arbitrator, an
clothed with impartial 3rd person named by 2. those arising from the interpretation or enforcement of d) unresolved grievances arising from the interpretation and
original and both parties company personnel policies. implementation of the productivity incentive
exclusive programs under R.A. 6971
jurisdiction (Art Accordingly, violations of a CBA, except those which are gross in
7) Concurrent. — All other labor disputes including ULP and
217) character, shall no longer be treated as unfair labor practice and shall
bargaining deadlocks, upon agreement of the parties.
be resolved as grievances under the CBA.
Nature Adversarial; May be done prior to or Before or at any stage of compulsory arbitration, parties may
For purposes of this article, gross violations of CBA shall mean opt to submit to VA instead.
initiated by a during compulsory
agrant and/or malicious refusal to comply with the economic
complaint. arbitration; (B5-R19-S5) 8) Voluntary arbitration. — a mode of settling labor
provisions of such agreement.
management disputes by which the parties select a competent,
Settlement of labor Private judicial system; The Commission, its Regional O ces and the Regional Directors of trained and impartial person who shall decide on the merits of
disputes by a the DOLE shall not entertain disputes, grievances or matters under the case and whose decision is nal, executory and binding.
government Non-litigious, not governed by the exclusive and original jurisdiction of the Voluntary Arbitrator or
9) Nature of proceedings. — The proceedings before a
agency. technical ROC, but still panel of Voluntary Arbitrators and shall immediately dispose and
voluntary arbitrator are non-litigious in nature. They are
observes due process. refer the same to the Grievance Machinery or Voluntary Arbitration
not governed by technical rules applicable to court or judicial
provided in the CBA.
Initiated Complaint; to be a) Submission agreement; proceedings, but they must, at all times, comply with the
by answered by other b) Demand or Notice, ARTICLE 275. Jurisdiction over Other Labor Disputes. — The requirements of due process.
party. invoking a CBA clause; Voluntary Arbitrator or panel of Voluntary Arbitrators, upon 10) Decision of voluntary arbitrator, and prohibited
c) Or both agreement of the parties, shall also hear and decide all other labor motion. — THE decision of THE voluntary arbitrator
disputes including unfair labor practices and bargaining deadlocks. SHALL BE nal and executory after ten (10) calendar days
Appeal to NLRC, who merely reviews for errors of fact or law.
from receipt of the copy of the decision by the parties.
6) Exclusive and original. —
1. Jurisdiction 2. Remedies
a) all unresolved grievances arising from the
ARTICLE 274. Jurisdiction of Voluntary Arbitrators and Panel of implementation or interpretation of the collective 1) The petition for review shall be led within 15 days
Voluntary Arbitrators. — The Voluntary Arbitrator or panel of bargaining agreements and pursuant to Section 4, Rules 43 of the Rules of Court;
2) Rule 45, procedure before the SC.

By RGL 91 of 92
Labor Law and Social Legislation Reviewer for the 2022 Bar

Guagua National Colleges v. CA 2018 En Banc 7) Backwages as a relief for illegal dismissal is
IMPRESCRIPTIBLE.
The 10-day period stated in Article 276 should be understood as the
period within which the party adversely a ected by the ruling of the 8) Separation pay and retirement bene ts are akin to money
Voluntary Arbitrators or Panel of Arbitrators may le a motion for claims.
reconsideration. Only after the resolution of the motion for
reconsideration may the aggrieved party appeal to the CA by ling
the petition for review under Rule 43 of the Rules of Court within
15 days from notice pursuant to Section 4 of Rule 43.

L Prescription of actions
1) Illegal dismissal —
a) If with prayer of reinstatement — the EE is given a
period of FOUR (4) YEARS from the time of his
illegal dismissal within which to institute the
complaint (Art 1146, NCC);
b) If WITHOUT reinstatement — THREE (3)
YEARS.
2) Money claims — THREE (3) YEARS from the time the
action accrued;
3) Unfair Labor Practice — ONE (1) YEAR from accrual;
4) Penal provisions under LC — THREE (3) YEARS;

5) Illegal Recruitment. — FIVE (5) years:

If involving economic sabotage shall prescribe in twenty

(20) years.
6) Execution of Judgment — FIVE (5) YEARS.

By RGL 92 of 92