LABOR LAW

Sheila Pusheen notes

(use at your own risk; this reviewer is highly compressed; please correct if there
are errors)

FUNDAMENTAL PRINCIPLES

LEGAL BASIS

1987 Constitution
– Article II (not self-executing, mere guidelines for legislation Kilosbayan vs
Morato)
○ S.9 The State shall promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services,
promote full employment, a rising standard of living, and an improved
quality of life for all
○ S.10 The State shall promote social justice in all phases of national
development.
○ S.11 The State values the dignity of every human person and guarantees
full respect for human rights
○ S.13 The State recognizes the vital role of the youth in nation-building and
shall promote and protect their physical, moral, spiritual, intellectual, and
social well-being. It shall inculcate in the youth patriotism and nationalism,
and encourage their involvement in public and civic affairs
○ S.14 The State recognizes the role of women in nation-building, and shall
ensure the fundamental equality before the law of women and men
○ S.18 The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare
○ S.20 The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed
investments
– Article III (as a general rule the Bill of rights erects no shield against private
conduct)
○ S.4 No law shall be passed abridging the freedom of speech, of
expression, or of the press, or the right of the people peaceably to
assemble and petition the government for redress of grievances
○ S.7 The right of the people to information on matters of public concern
shall be recognized. Access to official records, and to documents, and
papers pertaining to official acts, transactions, or decisions, as well as to
 ○

government research data used as basis for policy development, shall be

afforded the citizen, subject to such limitations as may be provided by law
○ S.8 The right of the people, including those employed in the public and
private sectors, to form unions, associations, or societies for purposes not
contrary to law shall not be abridged
○ S.10 No law impairing the obligation of contracts shall be passed
◆ free exercise of religious profession or belief is superior to contract
rights
◆ prospective in application
◆ contracts of labor are explicitly subject to police power of the State
because they are not ordinary contracts but are impressed with public
interest
○ S.16 All persons shall have the right to a speedy disposition of their cases
before all judicial, quasi-judicial, or administrative bodies
◆ what the Constitution prohibits are unreasonable. arbitrary and
oppressive delays which render rights nugatory
◆ speedy labor justice; Art. 277(i) (periods)
○ S.18 (2) No involuntary servitude in any form shall exist except as a
punishment for a crime whereof the party shall have been duly convicted
◆ right of employees to terminate their employment relationship
◆ human beings are never embraced in the term assets and liabilities;
transfer of employees by a corporation to another corp.
– Article XIII
○ S.1 The Congress shall give highest priority to the enactment of measures
that protect and enhance the right of all the people to human dignity,
reduce social, economic, and political inequalities, and remove cultural
inequities by equitably diffusing wealth and political power for the
common good
◆ To this end, the State shall regulate the acquisition, ownership, use,
and disposition of property and its increments
○ S.2 The promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and self-reliance
○ S.3 The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of
employment opportunities for all
– It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and decision-
making processes affecting their rights and benefits as may be
provided by law
– The State shall promote the principle of shared responsibility between
 –
workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace
– The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns on
investments, and to expansion and growth
◆ protection to labor clause
◆ not self-executing
◆ either disparate treatment/impact, not like under LC (disparate
treatment only)
○ S.14 The State shall protect working women by providing safe and
healthful working conditions, taking into account their maternal functions,
and such facilities and opportunities that will enhance their welfare and
enable them to realize their full potential in the service of the nation
– read Sameer case Leonen

Civil Code
– Art. 19
○ Every person must, in the exercise of his rights and in the performance of
his duties, act with justice, give everyone his due, and observe honesty
and good faith
◆ principle of abuse of rights: must be intentional, attended with malice
of bad faith
◆ relate to art. 21 (acts contra bonos mores, legal acts but contrary to
morals, good custom, public order/policy)
– Art. 1700
○ The relations between capital and labor are not merely contractual. They
are so impressed with public interest that labor contracts must yield to the
common good. Therefore, such contracts are subject to the special law on
labor unions, collective bargaining, strikes and lockouts, closed shop,
wages, working conditions, hours of labor and similar subjects
◆ er-ee shall not act oppressively against each other
◆ principle of non-oppression
– Art. 1702
○ In case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer
◆ related with Art. 4 of the LC
◆ should be only applied in resolving doubt or ambiguity
– read Becmen case

Labor Code
– Art. 3 Declaration of Basic Policy
 ○ The State shall afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. The State shall
assure the rights of worker to self-organization, collective bargaining,
security of tenure, and just and humane conditions of work
– Art. 4 Construction in favor of labor
○ All doubts in the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations, shall be
resolved in favor of labor
◆ relate to Art. 1702 of NCC
– Art. 172
○ The State shall promote and develop a tax-exempt employeesʼ
compensation program whereby employees and their dependents, in the
event of work-connected disability or death, may promptly secure
adequate income benefit and medical related benefits
◆ ECP and ECC
◆ has own adjudicatory machinery with original and exclusive
jurisdiction
– Art. 218 Declaration of Policy on labor relations
○ It is the policy of the State:
◆ To promote and emphasize the primacy of free collective bargaining
and negotiations, including voluntary arbitration, mediation and
conciliation, as modes of settling labor or industrial disputes;
◆ To promote free trade unionism as an instrument for the enhancement
of democracy and the promotion of social justice and development;
◆ To foster the free and voluntary organization of a strong and united
labor movement;
◆ To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
◆ To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes;
◆ To ensure a stable but dynamic and just industrial peace; and
◆ To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.
◆ To encourage a truly democratic method of regulating the relations
between the employers and employees by means of agreements freely
entered into through collective bargaining, no court or administrative
agency or official shall have the power to set or fix wages, rates of
pay, hours of work or other terms and conditions of employment,
except as otherwise provided under this Code.
– Art. 219 definitions
○ see codal
– Art. 267
 ○ The labor organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be the
exclusive representative of the employees in such unit for the purpose of
collective bargaining. However, an individual employee or group of
employees shall have the right at any time to present grievances to their
employer.
◆ basis is right to self-organization and collective bargaining
◆ EBR; may still directly go to er even if existence of EBR (but not by
using VA)
○ Any provision of law to the contrary notwithstanding, workers shall have
the right, subject to such rules and regulations as the Secretary of Labor
and Employment may promulgate, to participate in policy and decision-
making processes of the establishment where they are employed insofar
as said processes will directly affect their rights, benefits and welfare. For
this purpose, workers and employers may form labor-management
councils: Provided, That the representatives of the workers in such labor-
management councils shall be elected by at least the majority of all
employees in said establishment.
◆ principle of co-determination
◆ does not mean co-management of business nor intrusion into
management prerogatives
– Art. 292(b) statutory due process
○ for dismissal; requirement of notice and ample opportunity to be heard

STATE POLICY TOWARDS LABOR

Security of tenure
– S.18, Art. II Consti
○ protection of the rights of workers and promote their welfare
– Art.3 LC
○ State shall assure the rights of worker to self-organization, collective
bargaining, security of tenure, and just and humane conditions of work
– Art. 293 Security of Tenure
○ in cases of regular employment, the employer shall not terminate the
services of an employee except for a just cause or when authorized by this
Title
○ An employee who is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other privileges and to
his full backwages, inclusive of allowances, and to his other benefits or
their monetary equivalent computed from the time his compensation was
withheld from him up to the time of his actual reinstatement
◆ based on social justice principles
◆ applies to all types of employment, not just to regular employment or
 ◆
rank-and-file

Social justice
– basis S.10, Art. II; Ss.1, 2, 3, Art. XIII
– is neither communism, nor depotism, nor atomism, nor anarchy, but the
humanization of laws and the equalization of social and economic forces by
the State so that justice in its rational and objectively secular conception may
at least be approximated
○ social justice means the promotion of the welfare of all the people, the
adoption by the Government of measures calculated to insure economic
stability of all the competent elements of society, through the
maintenance of a proper economic and social equilibrium in the
interrelations of the members of the community, constitutionally, through
the adoption of measures legally justifiable, or extra-constitutionally,
through the exercise of powers underlying the existence of all government
on the time-honored principle of salus populi est suprema lex
– policy of social justice is not intended to countenance wrongdoing; at best it
may mitigate the penalty but it certainly will not condone the offense
– social justice cannot be permitted to be refuge of scoundrels any more than
can equity be an impediment to the punishment of the guilty
– read Milan vs NLRC leonen

Equal work opportunities

– basis Art. 3 LC
– The State shall xxx ensure equal work opportunities regardless of sex, race or
creed
○ discrimination against sex is unlawful
○ minimum age of employment 18/15; children only if employed by parents/
guardians/entertainment industry

Right to self-organization and collective bargaining

– right to self-organization
○ basis S.8 Art. II Const; S.8, Art. III Const.; S.3, Art. XIII Const.; Art. 3 LC
○ allowed for both private and public sectors
○ right of a person to join, form, or assist a labor organization
◆ legal bases
– State shall assure the rights of workers, inter alia, to self-
organization and collective bargaining
– State shall promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
and development
– State shall foster the free and voluntary organization of a strong
 –
and united labor movement
– right to collective bargaining
○ basis S.3, Art. XIII
○ duty to bargain collectively
◆ legal basis S.1, Rule XVI, Book V, rules implementing LC
– It is the policy of the State to promote and emphasize the primacy
of free and responsible exercise of the right self-organization and
collective bargaining, either through single enterprise level
negotiations or through the creation of a mechanism by which
different employer and recognized or certified labor unions in their
establishments bargain collectively

Construction in favor of labor

– basis Art. 1702 NCC; Art. 4 LC
○ in case of doubt, all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer
○ all doubts in the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations, shall be
resolved in favor of labor
– applies whether to private or public employees
– NCC is broader in scope
– ambiguity in labor contracts should be strictly construed against the author
○ also applies in appreciation of evidence in labor proceedings
– recognizes the disparity in terms of resources and standing between labor and
capital
– however, protection of rights of the laborer authorizes neither the oppression
nor self-destruction of the employer
○ it should not be supposed that every labor dispute will be automatically
decided in favor of labor
○ social justice: strike a balance between avowed predilection for labor, on
the one hand, and the maintenance of the legal rights of capital, the
proverbial hen that lays the golden egg, on the other

Burden of proof and quantum of evidence

– burden of proof depends on the claim/allegation
○ money claims incurred in the normal course of business: ER
◆ e.g. salary differential, SIL, holiday pay, 13th month pay
○ money claims not incurred in the normal course of business: EE
◆ e.g. OT pay, premium pay for holiday and rest days
– EE must show that he/she rendered in excess of 8 hours and he
worked on such holiday and restday
○ illegal dismissal
◆ fact of dismissal: EE
 ◆WON such dismissal was for just or authorized cause: ER
– quantum of evidence
○ substantial evidence (administrative/quasi-judicial proceeding)

RECRUITMENT AND PLACEMENT

DEFINITION OF RECRUITMENT AND PLACEMENT

– any act of
○ canvassing
○ enlisting
○ contracting
○ transporting
○ utilizing
○ hiring
○ procuring workers
– includes:
○ referrals
○ contract services
○ promising
○ advertising for local employment
– whether for profit or not
– any person or entity which in any manner, offers or promises employment for a
fee, to 2 or more persons shall be deemed engaged in recruitment and
placement

ILLEGAL RECRUITMENT
Elements
– simple
d. the offender has no valid license or authority required by law to enable
one to lawfully engage in recruitment and placement of workers
◆ under RA 8042, may even be committed by a licensee/holder of
authority
e. he undertakes either any activity within the meaning of “recruitment and
placement”, or any prohibited practices enumerated above (RA 8042 S.6,
am by RA 10022)
– syndicated
d. there are at least 3 persons who, conspiring and/or confederating with one
another, carried out any unlawful or illegal recruitment and placement
activities as defined (see above)
e. said persons are not licensed or authorized to do so, either locally or
overseas
 – large scale
d. accused engages in the recruitment and placement of workers as defined
(above)
e. accused commits the same against 3 or more persons, individually or as a
group

Types
d. simple or licensee
– committed by a licensee or holder of authority against one or two persons
only
– prescriptive period is 5 years
e. non-licensee
– committed by any person who is neither a licensee nor a holder of
authority
i. syndicated
j. large scale or qualified

Illegal recruitment as distinguished from estafa

– illegal recruitment is malum prohibitum (RA 8042); whereas estafa is malum in
se (Art. 315 RPC)
– in illegal recruitment, it is not required that the accused wrongfully held
himself as licensed recruiter, it is enough that the victims were deceived and
parted w/ their money based on misrepresentations that they could obtain
employment; whereas in estafa, it is essential that the false statement or
fraudulent representation constitutes the very cause which induced the
complainant to part with his money
– filing of illegal recruitment does not bar the filing of estafa and vice versa; may
be filed simultaneously

LIABILITY OF LOCAL RECRUITMENT AGENCY AND

FOREIGN EMPLOYER
Solidary liability
– principal/ER and recruitment agency is solidarily liable for any and all claims
arising out of implementation of employment contract involving OCWs
○ required to be incorporated in contracts
○ if agency is a juridical entity, corporate officers, directors, partners shall
be jointly and severally liable with the agency
◆ not automatic, there must be a remiss in directing the affairs of that
company
– continues during entire period of contract and cannot be modified/substituted/
amended
 – foreign principal cannot invoke the doctrine of immunity from suit

Theory of imputed knowledge

– any information material to the transaction, either possessed by the agent at
the time of the transaction or acquired by him before its completion, is
deemed to be the knowledge of the principal
○ even though the knowledge, in fact, is not communicated to the principal
at all
◆ presumption of identity of interests between principal and agent
– ascribes knowledge of agent to principal, but not the other way around

TERMINATION OF CONTRACT OF MIGRANT WORKER

– aptly called “pre-termination”; contracts of OCWs are fixed-terms
– forms:
d. OCW requested for an early termination
◆ voluntary pre-termination is akin to voluntary resignation
◆ OCW must comply with Art. 300 LC
◆ employee must present evidence of voluntariness; if none, OCWs are
presumed to be illegally dismissed
e. OCW and ER mutually agreed on an early termination
i. OCW has been discharged for just cause/disciplinary reasons/authorized
cause
j. OCW suffered injury or illness
k. OCW has died
– in absence of proof of laws of foreign ER, domestic laws shall govern
○ party invoking foreign law has burden of proof (doctrine of processual
presumption)
– due process must be complied in case of involuntary pre-termination
○ dismissal with just/authorized cause but without compliance of due
process merits the award of nominal damages P50K (Jaka Food vs Pacot)
– money claims and damages
○ Labor Arbiters has exclusive and original jurisdiction
○ reinstatement or separation in lieu of it, full backwages are not available;
award is in the form of indemnity
○ instances:
◆ validly dismissed: not entitled to unexpired portion (subj. to due
process reqt)
◆ illegally dismissed: entitled to entire unexpired portion (retroactive)
– Note: holiday, ot, restday, allowances not included in the
computation of basic salary
○ may be award actual, moral, exemplary damages
– OCW has right to demand repatriation in case of pre-termination
OST-EMPLOYMENT

EMPLOYER-EMPLOYEE RELATIONSHIP

Test to determine existence

d. Four-fold test
○ selection and engagement of the EE
○ payment of wages
○ power of dismissal
○ power of control
◆ with respect to the means and methods by which the work is to be
accomplished
◆ most important element
◆ demarcation line:
– rules that merely serve as guidelines which only promote the
result (no control)
– rules that fix the methodology and bind or restrict the party hired
to the use of such means or methods (w/ control)
e. economic dependence test
○ two-tiered approach
◆ first: control test
◆ second: underlying economic realities of the activity or relationship
– whether the worker is dependent on the alleged ER for his
continued employment in that line of business
– inclusion in payroll, submission of name with SSS, PagIbig,
PhilHealth

Legitimate subcontracting as distinguished from labor-only

contracting
Elements
d. Legitimate job contracting (contractor:)
○ duly registered with DOLE
○ carries a distinct and independent business and undertakes to perform
the job, work or service on its own responsibility, accdg to its own manner
and method, and free from control and direction of the principal, except as
to results
○ has substantial capital and/or investment in the form of tools, equipment,
machineries, work premises, and other materials which are necessary in
the conduct of the business
◆ at least P5m (paid up capital for corp/partner./coop; net worth for
single prop)
○ Service agreement bet. principal and contract should ensure compliance
 ○
with all rights and benefits of workers under labor laws
e. labor-only contracting
○ contractor lacking any of the elements above
○ contractor does not have substantial capital/investments in the forms of
tools, equipment, machineries, work premises
◆ and EEs recruited and placed are performing activities which are
usually necessary or desirable to the operation of the company, or
directly related to the main business of the principal within a definite
or predetermined period
○ contractor does not exercise the right of control over the performance of
the work of the EE

Trilateral relationship
– relationship in a contracting or subcontracting arrangement where there is a
contract for a specific job, work or service between the principal and the
contractor, and a contract of employment between the contractor and its
workers
d. legitimate job contracting
○ principal is deemed as indirect/statutory ER of the EEs of contractor
◆ principal may require bond from the contractor
◆ where principal fails to require the posting of bond, he must be liable
for whatever the contractor may have incurred to his EEs, without
prejudice to right of reimbursement
○ contractual relationship between principal and contractor
○ no ER-EE relationship bet principal and contractorʼs EEs
e. labor-only contracting
○ principal is deemed as direct ER of the contractorʼs EEs
○ contractor will be treated as the agent of the principal

Liabilities
d. legitimate job contracting
○ joint and several liability of principal for payment of wages only, subject to
right of reimbursement
○ other claims of unpaid EEs must be borne by the contractor
e. labor-only contracting
○ solidary liability of principal with the contractor to the latterʼs EEs in the
same manner and extent that the principal is liable to EEs directly hired by
him/her
○ EEs of the contractor become regular EEs of the principal

Kinds of employment
Regular
– types
 ○ EE has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the ER
◆ notwithstanding and regardless of the written and oral agreements of
the parties
○ EE who has rendered at least 1 year of service
◆ whether such service is continuous or broken
◆ considered a regular EE with respect to the activity in which he is
employed; shall continue while such activity exists (casual EEs)
– test is whether work performed by EE is necessary or desirable in the usual
trade or business of ER
– not a yardstick in determining ER-EE relationship
– OFWs cannot attain regular employment

Casual
– EE is engaged to perform a job, work or service which is merely incidental to
the business of the ER
– such job, work or service is for a definite period made known to the EE at the
time of the engagement
○ must not be project/seasonal
○ project: specific undertaking, may not be incidental, may exceed 1 yr
– see also provision in regular employment
○ repeated hiring of casual EE makes him regular
○ 1 year period reckoned from hiring date

Contractual
– see fixed-term employment

Project
– employment that has been fixed for a specific project or undertaking the
completion for which has been determined at the time of engagement
○ project may or may not be within the regular or usual business of the ER
○ where employment is extended long after the supposed project has been
finished, they are considered as regular EEs
○ repeated hiring on a project-to-project basis which is considered
necessary and desirable to the business of the ER—regular (workpool)
– requisites
d. designation of named EEs as “Project Ees”
e. project EE was assigned to carry out a specific project or undertaking
i. duration and scope of which were specified at the time the EE was
engaged for that project
j. EE must have been dismissed every after completion of his project or
phase
k. report to the DOLE of Eeʼs dismissal on account of completion of contract
 – indicators of project employment
○ duration of the specific/identified undertaking for which the worker is
engaged is reasonably determinable
◆ day certain rule: a project employment that ends on a certain date
does not end on an exact date but upon the completion of the project
○ such duration, as well as the specific work/service to be performed, is
defined in an employment agreement, and is made clear to the EE at the
time of hiring
◆ absent any other proof that the project EEs were informed of their
status as such, it will be presumed that they are regular EEs
○ work/service performed by the EE is in connection with the particular
project/ undertaking for which he is engaged
○ EE, while not employed and awaiting engagement, is free to offer his
services to any other ER
○ termination of his employment in the particular project/undertaking is
reported to the DOLE Regional Office having jurisdiction over the
workplace within 30 days following the date of separation from work,
using the prescribed form on EEʼs termination, dismissal or suspensions
○ undertaking in the employment contract by the ER to pay completion
bonus to the project EE as practiced by most construction companies
– separation pay may be allowed in case the EEs are terminated before the
completion of the project

Seasonal
– job, work or service to be performed is seasonal in nature and the employment
is for the duration of the season
– activity must be usually necessary or desirable in the usual business or trade
of the ER
– regular seasonal EEs
○ EEs who are called to work from time to time and are temporarily laid off
during off-season; considered on leave until re-employed
○ requisites
d. EE should perform work/services that are seasonal in nature
e. must have been employed for more than 1 season
○ when the business is sold which effectively terminates the employment of
the EEs, latter would be entitled to separation pay

Fixed-term
– contract of employment for a definite period which terminates by its own
terms at the end of such period
○ decisive determinant: day certain agreed upon by the parties for the
commencement and termination of their employment relationship
◆ not the activities that the employee is called upon to perform
 – an employment where a fixed period of employment was agreed upon:
d. knowingly and voluntarily by the parties, without any force, duress or
improper pressure being brought to bear upon the EE and absent any
other circumstances vitiating his consent
e. ER and EE dealt with each other on more or less equal terms with no moral
dominance whatsoever being exercised by the former on the latter
– valid (Brent ruling)
○ even if duties are usually necessary or desirable in the ERs usual business
or trade
○ termination prior to the lapse of the period should be for just/authorized
cause
○ OFWs are fixed term EEs, cannot acquire regular status
– EEs allowed to work beyond the fixed term becomes regular EEs
– hiring of EEs on a uniformly fixed 5-month period and replacing them upon
expiration of their contracts with other workers with same employment status
circumvents their right to security of tenure

Probationary; private school teachers

– EE who, for a given period of time, is on observation, evaluation and trial by an
ER during which the ER determines WON he is qualified for permanent
employment
– period: shall not exceed 6 months from date EE started working (from date of
appointment)
○ becomes regular EE after expiration of 6 months
○ exceptions:
◆ ER and EE agree on a shorter or longer period
◆ nature of work to be performed by the EE requires a longer period
◆ a longer period is required and established by company policy
○ entitled to security of tenure within this period
– may only be terminated on the ff grounds:
d. just cause
e. authorized cause
i. EE fails to qualify as a regular EE in accordance with reasonable
standards made known by the ER to the EE at the start of employment

Private school teachers

– basis, LC and 2010 Revised Manual of Regulations for Private schools in basic
education (DLSU vs Prepotente)
– probationary period (mandatory):
d. teaching personnel: not more than 3 years
e. non-teaching personnel: not more than 6 months
– for a teacher to be permanent and regular:
○ must be working full-time
 ○ must have rendered at least 3 consecutive years of service
○ fully qualified under existing rules and standards of the school
(satisfactory)
◆ reasonable standards made known by the ER to the EE at the time of
his engagement

TERMINATION BY EMPLOYER
Requisites for validity
Substantive due process
– dismissal must be for any of the just causes or authorized causes under the
LC

Just causes
– termination initiated by the ER against acts inimical to its interests
– based on management prerogative; must not curtail the right of EEs to
security of tenure
– enumeration:
d. serious misconduct (Art. 297a)
◆ requisites
d. there must be misconduct
◆ improper/wrong conduct that transgresses some established
and definite rule of action, a forbidden act, a dereliction of
duty, willful in character, and implies wrongful intent
e. misconduct must be of such grave and aggravated character
i. must relate to the performances of the EEs duties
j. showing that the EE becomes unfit to continue working for the ER
e. willful disobedience (Art. 297a)
◆ requisites
d. there must be disobedience or insubordination
e. willful or intentional, characterized by a wrongful and perverse
attitude
i. order violated must be reasonable, lawful and made known to the
EE
j. order must pertain to the duties which EE has been engaged to
discharge
i. gross and habitual neglect of duties (297b)
◆ gross negligence: implies a want or absence of or failure to exercise
diligence that an ordinary prudent man would use in his own affairs
◆ habitual neglect: repeated failure to perform oneʼs duties over a
period of time, depending upon the circumstance
◆ requisites
d. there must be negligence which is gross and/or habitual in
 d.
character
e. must be work related as would make EE unfit to work for ER
◆ abandonment
– a form of neglect of duty
– requisites
d. failure to report for work or absence without justifiable reason
e. clear intention to sever ER-EE relationship manifested by
some overt acts
– due process requirement
◆ 1st notice: direct EE to explain why he should not be declare
as having abandoned his job
◆ 2nd notice: to inform EE of ERs decision to dismiss him on the
ground of abandonment
j. fraud (297c)
◆ any act, omission, or concealment which involves a breach of legal
duty, trust, or confidence justly reposed and is injurious to another
◆ requisites
d. EE has committed an intentional deception and used dishonest
methods for personal gain or to damage the ER
e. fraud is work-related and rendered him unfit to work for his ER
i. committed against ER/ his/her representative
k. willful breach of trust and confidence (297c)
◆ applies to EEs occupying positions of trust and confidence AND EEs
routinely charged with the care and custody of ERs money or property
◆ unlike managerial EEs, proof of involvement of rank and filers must be
shown
– managers: mere existence of basis for believing that he breached
trust of his ER would suffice for dismissal
◆ requisites
d. EE holds a position of trust and confidence
e. there exists an act justifying the loss of trust and confidence
◆ act that betrays the ERs trust must be real, i.e. founded on
clearly established facts
i. EEs breach of the trust must be willful
◆ must be done intentionally, knowingly and purposely, without
justifiable excuse
j. act must be in relation to his work which would render him unfit to
perform it
◆ guidelines in application
– loss of confidence must not be simulated
– should not be used as subterfuge for causes which are illegal,
improper or unjustified
– may not be arbitrarily asserted in the face of overwhelming
 –
evidence to the contrary
– must be genuine, not a mere afterthought, to justify earlier action
taken in bad faith
o. commission of crime
◆ need not be actually filed in court
◆ requisites
d. crime or offense was committed by the EE
e. it was committed against any of the ff
– ER
– any immediate member of ERs family
– ERs duly authorized representative
◆ relation to work is not necessary
p. analogous causes
◆ violation of company rules and regulations
◆ theft of property owned by co-EE
◆ incompetence, inefficiency, ineptitude
◆ failure to attain work quota
◆ failure to comply with weight standards of ER
◆ attitude problem
q. due to enforcement of union security clause
◆ usc: stipulation in CBA which allows parties to enter into agreement
requiring membership in the ECBA as a continued for continued
employment (except EEs who already members of another union at
time of signing of CBA)
◆ requisites:
d. usc is applicable
e. bargaining union is requesting for termination of employment due
to enforcement of the usc in the CBA
i. there is sufficient evidence to support the unionʼs decision to
expel the EE from the union
◆ EE must conduct an independent and separate hearing
– past offenses
○ may be so used as a valid justification for dismissal from work ONLY if:
◆ infractions are related to the subsequent offense upon which the
basis the termination of employment is decreed
– doctrine of incompatibility
○ where the EE has done something that is contrary or incompatible with the
faithful performance of his duties, ER has a just cause for terminating his
employment
– habitual infractions
○ series of irregularities when put together may constitute serious
misconduct
○ totality of infractions
 ◆ the number of violations committed during the period of employment
shall be considered in determining the penalty to be imposed

Authorized causes
– enumerations (298)
d. installation of labor saving device
◆ installation of machinery to effect economy and efficiency in the ERs
method of production
◆ requisites
d. there must be introduction of machinery, equipment or other
devices
e. introduction must be done in good faith
i. purpose for such introduction must be valid such as to save on
cost, enhance efficiency and other justifiable economic reasons
j. there is no other option available to the ER than the introduction
of the machinery, equipment or device and the consequent
termination of employment of those affected thereby
k. there must be fair and reasonable criteria in selecting EEs to be
terminated
e. redundancy
◆ superfluity in the performance of a particular work
◆ exists where the services of an EE are in excess of what is reasonably
demanded by the actual requirements of the enterprise
◆ requisites:
d. there must be superfluous positions/services of EEs
e. positions/services are in excess of what is reasonably demanded
by the actual requirement of the enterprise to operate in an
economical and efficient matter
i. good faith in abolishing redundant positions
j. fair and reasonable criteria in selecting the EEs to be terminated
k. adequate proof of redundancy such as but not limited to new
staffing pattern, feasibility studies/proposal, on the viability of the
newly created positions, job description and the approval by the
management of the restructuring
i. retrenchment
◆ termination of employment initiated by the ER through no fault of the
EE and without prejudice to the latter, resorted by management
during:
– periods of business recession, industrial depression, or seasonal
fluctuations
– lulls occasioned by lack of work or order, shortage of material
– considerable reduction in the volume of the ERs business,
conversion of plant for a new production program, introduction of
 –

new methods, more efficient machinery, or of automation

◆ applies only to permanent retrenchment
◆ requisites:
d. reasonably necessary and likely to prevent business
e. losses, if already incurred, are not merely de minimis, but
substantial, serious, actual and real, or if only expected, are
reasonably imminent as perceived objectively and in good faith by
the ER
i. expected or actual losses must be proved by sufficient and
convincing evidence
– externally audited financial statements
j. must be in good faith for the advancement of ERs interest and not
to defeat or circumvent the EEs right to security of tenure
k. fair and reasonable criteria in ascertaining who would be
dismissed and who would be retained among EEs
– such as status, efficiency, seniority, physical fitness, age,
financial hardship for certain workers
j. closure or cessation of business
◆ may be partial or total
◆ requisites
d. a decision to close or cease operation of the enterprise by the
management
◆ may or may not be due to serious business losses or financial
reverses
e. made in good faith
i. no other option available to the ER except to close or cease
operations
◆ closure of department or division constitutes retrenchment, not
closure
◆ temporary closure, which is bonafide, for not more than 6 months
cannot terminate employment
k. disease
◆ requisites:
d. EE is suffering from a disease which cannot be cured within 6
months, even with proper medical treatment
e. EEs continued employment is either
– prohibited by law
– prejudicial to his health
– prejudicial to the health of his co-EEs
i. certification to that effect issued by a competent public health
authority
– procured by ER\
– last in first out rule: not controlling; no basis in law; ER has prerogative to
 –
choose who to terminate, take into account the nature of work and experience
of EEs

Procedural due process

– EE must be accorded due process
– for just cause
d. notice (written) King of Kings vs Mamak
◆ 1st
– specific causes/grounds for termination; mention company rules,
if any, which are violated
– directive that EEs are given opportunity within a reasonable period
(5days:SC) or assistance that management must accord the EE to
enable them to prepare adequately their defense
– detailed narration of facts and circumstances
◆ 2nd
– indicate all circumstance involving the charge against EEs
considered
– indicate grounds established to justify the severance of their
employment
– EE may be dismissed only if grounds mentioned in the pre-
dismissal notice were the ones cited for the termination of
employment
e. opportunity to be heard and defend himself
◆ “ample opportunity to be heard”: any meaningful opportunity (verbal/
written) given to EE to answer the charges against him and submit
evidence in support of his defense, whether in a hearing, conference
or some other fair, just and reasonable way
◆ formal hearing/conference is not absolute, mandatory or exclusive
– only mandatory when requested by EE in writing; substantial
evidentiary dispute exists; company rule/practice requires it
○ foregoing does not apply in case of abandonment, separate rule
– for authorized cause
d. good faith in effecting termination
e. termination is a matter of last resort
i. 2 separate written notices are served both to individual EE and DOLE at
least 1 month prior to the intended date of termination
◆ notice to EE, not needed if EE consented
◆ voluntary arbitration satisfies notice requirement
j. separation pay is paid:
◆ for installation of labor saving device/redundancy: 1mo pay OR at least
1mo pay/year of service, whichever is higher (fraction of at least 6mos
is considered 1yr)
◆ retrenchment/closure not due to serious losses/disease: 1mo pay OR
 ◆
at least 1/2mo pay/year of service, whichever is higher
◆closure due to serious losses: no separation pay
◆ in case if CBA/company policy provides for higher separation pay, the
same must be followed
– consequences for non-compliance of procedural due process
○ termination for just/authorized cause but without affording the EE
procedural due process is still legal termination
○ ER is just liable for payment of nominal damages
◆ just cause: 30k
◆ authorized cause: 50k

Preventive suspension
– basis: S.8, 9, Rule XXIII, Book V of Implementing Rules
– legally imposed against an EE whose undergoing investigation for certain
serious offenses
– ground:
○ EE continued presence in the company premises during the investigation
poses a serious and imminent threat to the life or property of the ER, or to
his co-workers
– not a penalty; not equivalent to dismissal
– only for a period of 30 days
○ due process must be followed
○ EE is not entitled to his wages and other benefits within this period
○ failure to state the duration in the notice does not mean it is indefinite
○ for construction worker, PS is only for 15 days
– after 30 days, ER must reinstate the EE
○ may be extended, but only for justifiable grounds, for purposes of
investigation
○ EE is entitled to salary and benefits during the period of extension
○ if it lasted for more than 30 days without extension, deemed as
constructive dismissal

Illegal dismissal
Kinds
No just or authorized cause
– in case of regular employment, the ER shall not terminate the services of an EE
except for a just cause or when authorized by the LC

Constructive dismissal
– dismissal in disguise
– contemplates any of the ff situations:
d. involuntary resignation resorted to when continued employment is
rendered impossible, unreasonable or unlikely
 e. demotion in rank and/or a diminution in pay
i. clear discrimination, insensibility or disdain by an ER which becomes
unbearable to the EE that it could foreclose any choice by him except to
forego his continued employment
– forced resignation
○ EE is made to do or perform an involuntary act (submission/tender of
resignation) meant to validate the action of the management in inveigling,
luring or influencing or practically forcing the EE to effectuate the
termination of employment instead of doing the termination himself
– there must be cessation of work

Burden of proof
– existence of ER-EE: EE
– fact of dismissal: EE
– validity of dismissal: ER

Liability of officers
– basis is not LC but the RCC
– attaches only under the ff circumstances:
d. officer assents to a patently unlawful act of the corporation
e. officer is guilty of bad faith or gross negligence in directing corporate
affairs
i. officer incurs conflict of interest, resulting in damages to the corporation,
its stockholders or other person
– requisites:
d. complainant must allege in the complaint that the director or officer
assented to patently unlawful acts of the corporation, or that the officer
was guilty of gross negligence or bad faith
e. must clearly and convincingly prove such unlawful acts, negligence or bad
faith

Reliefs from illegal dismissal

d. reinstatement, without loss of seniority rights and other privileges
○ restoration to a state or condition from which one had been removed or
separated; assumption of position he had occupied prior to his dismissal
○ applies to all kinds of illegal dismissal (not only for just/authorized causes)
○ must be stated in LAs order/decision
○ pending appeal: basis-Art 229 (decision of LA are final and executory
unless appealed, however shall not stay execution of order of
reinstatement)
◆ ministerial upon the LA; ER has option to reinstate or not pending
appeal
– if ER refuses to reinstate EE or disobeys submission of
 –
compliance, LA may issue a writ of execution
◆ EE reinstated pending appeal cannot be compelled to reimburse
salaries and wages in case of reversal of order of reinstatement before
the NLRC
○ reinstatement under Art 294-has attained finality, requires the filing of a
motion for execution
◆ ER has no option but to reinstate EE either actually or constructively,
through payroll; posting of bond will not stay EPA
◆ if judgment is appealed to CA/SC, and there is reversal, LA shall, on
motion, issue orders of restitution of the executed award, except
wages paid during reinstatement pending appeal
e. full backwages, inclusive of allowances
○ earnings lost by a worker due to his illegal dismissal; form of relief that
restores the income lost by reason of such
○ not private compensation or damages; in the nature of a command to the
ER to make public reparation for illegally dismissing an EE
○ distinct from reinstatement
◆ ERs offer to reinstate does not forestall payment of full backwages
○ components
d. salaries or wages computed on the basis of the wage rate level at the
time of the illegal dismissal
– not in accordance with the latest, current wage level of EEs
position
e. allowances and other benefits regularly granted to and received by EE
– emergency living allowance, 13th month pay, fringe benefits/
monetary equivalent, transportation, holiday pay, VL, SL, SIL, just
share in service charges, gasoline/car and representation
allowance, etc.
○ coverage:
◆ from the time wages are unlawfully withheld up to the date of
reinstatement/until finality of decision granting full backwages
– 2nd applies if separation pay is ordered in lieu of reinstatement
◆ if EE has reached 60/65 years, backwages shall only cover until the
time he reached 60/65
◆ if ER has ceased operations, only up to date of closure
◆ if EE died during pendency of case, backwages only up to time of his
death
○ for fixed term EEs: salaries corresponding to the unexpired portion of the
employment contract
○ without backwages (reinstatement+)
◆ dismissal is deemed to harsh a penalty
◆ ER acted in good faith
◆ no evidence that the ER dismissed the EE
 ○ limited backwages
◆ presence of good faith on part of ER
i. other benefits or their monetary equivalent
j. separation pay in lieu of reinstatement
○ basis not in LC; but in SC decisions based on equity
○ there must be illegal dismissal
○ situations as held by SC
d. doctrine of strained relations
– where the continued relationship between the ER and the EE is no
longer viable due to strained relations and antagonism between
them
– nature of position is material
◆ EE must hold a position of trust and confidence; must have a
say in the operation of the ERs business
e. reinstatement proves impossible, impracticable, not feasible or
unwarranted
– EE has already been replaced permanently and there is no
substantially equivalent position to which he may be reinstated
– dismissed EEs position is no longer available at the time of
reinstatement for reasons not attributable to ER
– long lapse or passage of time that EE was out of employment
– injury suffered by EE
– EE has already reached retirement age (60/65)
– EE was past the age qualification for the job
– contract between ER and client has been terminated
– takeover of the business of the ER and there is no agreement
regarding assumption of liability
i. EE decides not to be reinstated as prayed for his position paper/
complaint, and seeks separation pay instead
j. reinstatement is rendered moot and academic
– death of EE
– declaration of insolvency of ER
– total destruction of ERs premises due to fire
– ER has closed its establishment
k. to prevent further delay in execution of the decision
○ amount:
◆ at least 1 month salary/ 1 month salary for every year of service,
whichever is higher (at least 6mos considered as 1yr)
◆ allowances received on regular basis
○ period:
◆ commencement of employment up to time of termination/finality of
decision
– must include imputed service for which EE is entitled to
 –
backwages
◆ if ER closed, up to time of closure
○ rate to be used
◆ salary rate prevailing at the end of the period of putative servvice
k. penalty in form of nominal damages
○ in case of termination due to just or authorized cause but without
observance of procedural due process
○ either 30k/50k
o. damages and attorneyʼs fees
○ based under the NCC
○ unlawful withholding of wages: 10% attorneys fees
○ moral/exemplary damages: ER acted in bad faith, fraud, or in manner
oppressive to labor, or contrary to morals, good customs, public policy
p. financial assistance
○ Toyota case: EEs dismissal is legal but court considered long years of
service and other considerations
○ if the dismissal is based on just causes, no financial assistance
○ applicable only to analogous facts
q. legal interest on separation pay, backwages and other monetary awards

Money claims arising from employer-employee relationship

– burden of proof: ER
– filed within 3 years from accrual of cause of action
○ Arriola vs PSN (Leonen)
◆ money claims (Art. 306) covers claims for OT pay, holiday pay, SIL,
bonus, salary differential, illegal deductions, claims under seafarer
contract
◆ however, does not cover money claims consequent to illegal dismissal
– governed by NCC Art.1146; prescriptive period 4 years
– jurisdiction
○ LA:
◆ any money claim, regardless of amount, accompanied with a claim of
reinstatement (must arise from termination)
◆ any money claim, regardless of whether accompanied with claim for
reinstatement, exceeding the amount of P5k per claimant (does not
necessarily arise from termination)
○ RD
◆ money claim, not accompanied with reinstatement, not exceeding the
amount of P5k
○ VA
◆ money claim arising from interpretation or implementation of CBA or
company personnel policies
When not deemed dismissed; employee on floating status
– basis Art. 301 LC
– following does not terminate employment
○ bona fide suspension of operation of business or undertaking for a period
not exceeding 6 months
○ fulfillment of EE of a military or civic duty
– requirements for suspension (IR)
○ ER must notify DOLE and affected EE at least 1 mo prior the intended date
of suspension
○ must prove the ff:
◆ existence of a clear and compelling economic reason for temporary
shutdown
◆ there are no available posts to which the affected EE could be
assigned
– ER shall reinstate EE if he indicates desire to resume work not later than 1 mo
from resumption of operations/relief from duty
– if after 6 months, ER did not recall EEs, deemed as constructive dismissal
– as to security guards:
○ that period of time when security guards are in between assignments or
when they are made to wait after being relieved from a previous post until
they are transferred to a new one
○ SC applied by analogy the abovecited provision

TERMINATION BY EMPLOYEE

With notice to the employer

– also known as resignation
– EE, without just cause, may terminate his employment with ER
– must service a written notice on the ER at least 1 month in advance
○ no notice, ER may hold the EE liable for damages
○ the rule requiring EEs to complete the 30day period is discretionary on
part of the management; ER may allow EE for a shorter period
– requisites of a valid resignation:
d. voluntary, unconditional and intention to relinquish a portion of the term of
office
e. accompanied by an act of relinquishment
– resignation is inconsistent with filing of a complaint for illegal dismissal

Without notice to the employer

– also known as involuntary resignation
– based on the ff grounds:
d. serious insult by the ER or his representative on the honor and person of
 d.
the EE
e. inhumane and unbearable treatment accorded the EE by the ER/rep
i. commission of a crime or offense by the ER/rep against the person of the
EE or any of the immediate members of his family
j. other causes analogous to the foregoing

Distinguish voluntary resignation and constructive dismissal

– voluntary resignation is intentional accompanied by an overt act to sever ER-
EE relationship; whereas constructive dismissal is involuntary or forced when
continued employment is rendered impossible, unreasonable, unlikely
– in resignation, EE is not entitled to separation pay unless it is a company
practice or provided for in the CBA; whereas, in constructive dismissal, EE is
entitled to either reinstatement/separation pay AND backwages
– in resignation, burden of proving voluntariness is on the ER; whereas in
constructive dismissal, the burden of proof is on the EE

RETIREMENT
– retirement benefits may be availed by an EE upon reaching the retirement age
as established in CBA/applicable employment contract, or if none under the
Labor Code
– who are entitled
d. all EEs in the private sector
◆ regardless of position, designation/status, method by which their
wages are paid
e. part-time EEs
i. EEs of service and job contractors
j. domestic helpers/persons in personal service of another
k. underground mine workers
o. EEs of GOCCs organized under RCC
– who are not entitled
d. EEs of national govt, including GOCCs covered by CSC
e. EEs of retail, service, agricultural establishments/operations regularly
employing not more than 10 EEs
i. (jur.) EEs dismissed for just cause
◆ note Razon vs NLRC providing dismissed EE is entitled
– governing law provisions
○ retirement plan/agreement established by the company
◆ ERs and EEs are free to agree and stipulate on the retirement age,
either in CBA or employment contract
– SC: in order for retirement at an early age to be valid, it must be
shown that EEʼs participation in the plan is voluntary
◆ if not voluntary, would amount to illegal dismissal
 – the benefits shall not be less than that those provided under the
LC (see below)
○ Labor Code A.302 (287)
◆ applies if there is no existing company retirement plan/agreement, or
if the plan/agreement is below the requirements set by law
◆ types:
d. optional retirement
◆ EE is at least 60 years old
– for underground miners, 50
◆ EE served at least 5 years in the establishment
e. compulsory retirement
◆ EE is 65 years old
– for underground miners, 60
◆ EE served at least 5 years in the establishment
◆ amount of retirement pay under LC
– at least 1/2 month salary for every year of service
– 1/2 month salary = 22.5 days (SC)
◆ 15 days salary based on latest salary rate
◆ cash equivalent of 5 days SIL — in full
◆ 1/12 of 13th month pay or 2.5 days
– 22.5 days will not apply to EEs not entitled to 13th month and SIL;
apply 15 days only
◆ for workers paid by results = 15 days based on average daily
salary

LABOR RELATIONS

RIGHT TO SELF-ORGANIZATION
– employeesʼ right to form, join or assist labor organizations for purposes of
collective bargaining or for their mutual aid and protection
○ cannot be restricted by CBA stipulation
– basis is the constitution: guarantees rights of all workers to self-organization
and to form unions, associations, or societies for purposes not contrary to law

Who may or may not exercise the right

– who may exercise the right
○ private sector
d. all persons employed in commercial, industrial and agricultural
enterprises
e. EEs of GOCCs established under the RCC
i. EEs of religious, charitable, medical or educational institutions,
whether operating for profit or not
 j. supervisory managers (first/front line managers)
◆ must be of their own labor organization
k. alien EEs
◆ should have a valid working permit issued by DOLE
◆ national of a country which
– grants same/similar rights to Filipino workers
– ratified ILO conventions 87/98 as certified by DFA
o. working children
p. homeworkers
q. EEs of cooperatives
◆ only those EEs who are not members or co-owners of the
cooperative concerned
w. EEs of legitimate contractors, as to the IC
○ public sector
d. all rank and file EEs of all branches, subdivisions, instrumentalities,
agencies of the govt, including GOCCs with original charters
○ as to the ff, they may only form labor organizations for their mutual aid
and protection (not for collective bargaining)
◆ ambulant, intermittent and itinerant workers, self-employed, rural
workers, and those without definite ERs
○ an EE, whether employed for a definite period or not shall, beginning on
his 1st day of service, be considered as an EE for purposes of membership
in any labor union
– who may not exercise the right
○ public
d. managerial EEs
◆ those belonging to the top and middle management (managers
per se)
– top: mostly executives like president etc.
– middle: those that direct activities of other managers
– first-line: directs operating EEs only; do not supervise other
managers; often called as supervisors
◆ first-line managers may exercise right to self-organization
e. confidential EEs
◆ criteria (nature of access test; must be both met)
d. by nature of their functions, assists/acts in a confidential
capacity
◆ or has access to confidential matters of
e. to persons/officers who formulate, determine and effectuate
management policies in the field of labor relations
◆ if access to confidential information is merely incidental, not
considered as confidential EE
◆ however in some cases SC allowed them to join supervisorsʼ
 ◆
unions
○ private
d. high-level EEs whose functions are normally considered as policy-
making/managerial/whose duties are of a highly confidential nature
e. members of the AFP, police, firemen, jail guards

Doctrine of necessary implication

– legal basis for the ineligibility of a confidential EE to join a union
– SC: while A.255 (245) singles out managerial EEs as ineligible to join, assist or
form any labor organization, under the doctrine of necessary implication,
confidential EEs are similarly disqualified
○ what is implied in a statute is as much part thereof as that which is
expressed
○ unionization of confidential EEs would mean extension of the law to
persons who act supposed to act in the interest of ERs

Commingling or mixture of membership

– inclusion as union members of EEs outside the bargaining unit shall not be a
ground for cancellation of registration
○ concerned EEs are automatically removed from the list of membership
– ex. rank and file EEs cannot join a supervisorsʼ union, and vice versa
○ however, a rank and file union AND supervisorsʼ union operating within the
same establishment may join the same federation/national union

Rights and conditions of membership

– enumerated are the rights and conditions of membership in a labor
organization (LO)
– any violation shall be a ground for either:
○ cancellation of union registration or
○ expulsion of officers from office
– rights and conditions
d. no arbitrary/excessive initiation fees shall be required of members
◆ includes arbitrary, excessive/oppressive fine and forfeiture
e. members shall be entitled to full and detailed reports from their officers
and representatives of all financial transactions as provided for in the
constitution and by-laws of the organization
i. members shall directly elect their officers by secret ballot at intervals of 5
years
◆ including officers of national union/federation to which their union is
affiliated
◆ sole qualification for candidacy to any position shall be membership in
good standing
– person who has been convicted of a crime involving moral
 –
turpitude shall be ineligible for election as an officer, or for
appointment to any position in the union
◆ secretary/any other responsible union officer shall furnish the SOLE
with a list of the newly-elected officers, and appointive officers/
agents who are entrusted with the handling of funds
– within 30 calendar days after election/from occurrence of any
change in the list of officers
j. members shall determine by secret ballot, after due deliberation, any
question of major policy affecting the entire membership of the
organization
◆ unless the nature of the organization or force majeure renders secret
ballot impractical
– in this case, BOD may make the decision in behalf of the general
membership
k. no LO shall knowingly admit as members or continue in membership any
individual who belongs to a subversive organization or who is engaged
directly or indirectly in any subversive activity
o. no officer, agent or member shall collect any fees, dues, or other
contributions in the LOʼs behalf or make any disbursement of its money/
funds
◆ unless he is duly authorized pursuant to the LOʼs constitution and by-
laws
p. every payment of fees, dues or other contributions by a member shall be
evidenced by a receipt signed by the officer/agent making the collection
◆ entered into the record of the LO for that purpose
q. funds of the organization shall not be applied for any purpose/object other
than:
◆ those expressly provided by its constitution and by-laws, or
◆ those expressly authorized by written resolution adopted by the
majority of the members at a general meeting duly called for the
purpose
w. every income/revenue of the organization shall be evidenced by a record
showing its source
◆ every expenditure shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and
purpose of such payment
– record/receipt shall form part of the financial records of the
organization
◆ any action involving the funds of the lo shall prescribe after 3 years
from the date of submission of the annual financial report to the
DOLE, or from the date the same should have been submitted as
required by law, whichever comes earlier
– shall apply only to a LLO which has submitted the financial report
 –
requirements
dx. officers of any LO shall not be paid any compensation other than the
salaries and expenses due to their positions as specifically provided for
in:
◆ its constitution and by-laws, or
◆ a written resolution duly authorized by a majority of all members at a
general membership meeting duly called for the purpose
– minutes, list of participants and ballots cast shall be subject to
inspection by the SOLE or his duly authorized representatives
– any irregularities in the approval of the resolutions shall be a
ground for impeachment or expulsion
dd. treasurer of any LO and every officer responsible for:
– the account, or
– the collection, management, disbursement, custody or control of
the funds, moneys and other properties of the LO
◆ shall render to the LO and to its members a true and correct account
of all moneys received and paid by him since he assumed office, or
since the last day on which he rendered such account
– includes all bonds, securities and other properties of the LO
entrusted to his custody/control
◆ rendering of account shall be made:
d. at least once a year within 30 days after close of its fiscal year
e. at such other times as may be required by a resolution of the
majority of the members of the LO
i. upon vacating his office
◆ account shall be duly audited and verified by affidavit and a copy
thereof shall be furnished the SOLE
de. books of accounts and other records of the financial activities of any LO
shall be open to inspection by any officer/member during office hours
di. no special assessment or other extraordinary fees may be levied upon
the members of a LO
◆ unless authorized by a written resolution of a majority of all the
members in a general membership meeting duly called for the
purpose
– secretary shall record the minutes, list of all members present,
votes cast, purpose of the special assessment/fees and the
recipient of such
– record shall be attested to by the president
dj. other than provided under LC, no special assessments, attorneyʼs fees,
negotiation fees or any other extraordinary fees may be checked off from
any amount due to an EE
◆ to be allowed, there must be an individual written authorization duly
signed by the EE
 – should specifically state the amount, purpose and beneficiary of
the deduction
dk. LO and its officers has the duty to inform its members on the provisions
of its constitution and by-laws, CBA, the prevailing labor relations system
and all their rights and obligations under existing labor laws
◆ registered LO may assess reasonable dues to finance labor relations
seminars and other labor education activities

Nature of relationship
Member-Labor union
– SC: nature of relationship between the union and its members is fiduciary in
nature
○ arises from the dependence of the EE on the union, and from the
comprehensive power vested in the union with respect to the individual
○ union is considered as agent of members for the purpose of securing for
them fair and just wages, and good working conditions

Labor union-federation
– SC: as separate and voluntary associations, local unions do not owe their
creation and existence to the national federation to which they are affiliated
but, instead, to the will of their members
○ sole essence of affiliation is to increase, by collective action, the common
bargaining power of local unions for the effective enhancement and
protection of their interests
○ federation, acting for an in behalf of its affiliate, has the status of an
agent, while the local union remains the principal
○ local unions remain the basic units of association, free to serve their own
interests subject to the restraints imposed by the constitution and by-laws
of the national federation
◆ does not give the federation the license to act independently of the
local union/affiliate
– does not apply to local chapters created through the mode of chartering by
the federation; it does not have any independent registration

Disaffiliation
– right of the local union to disaffiliate from the federation/national union is a
constitutionally-guaranteed right which may be invoked by the former anytime
– SC: disaffiliation may be only done during the 60-day freedom
period immediately preceding the expiration of the CBA
○ exception: may still be carried out even before the onset of the freedom
period, despite the closed-shop provision in the CBA between the mother
union and management
◆ but such disaffiliation must be effected by a majority of the members
 ◆
in the bargaining unit
◆ in this situation, CBA shall continue to bind the members up to the
expiration thereof
– issues on disaffiliation >> inter-union conflict; BLR has jurisdiction
– effects of disaffiliation
○ as to an independently registered local union
◆ does not affect its legitimate status as a LO
◆ does not terminate the status of the members as EEs of the company
◆ terminates right to check-off federation dues
◆ does not affect the CBA
○ as to a local chapter with no independent registration
◆ ceases to be entitled to the rights and privileges granted to a LLO

Substitutionary doctrine
– states that even during the effectivity of a CBA between the ER and EEs
through their agent, the EEs can change their agent, but the contract
continues to bind them up to its expiration date
– cannot be invoked to subvert an existing CBA
– effects of change of the collective bargaining agent
○ does not revoke the validly executed CBA of the previous agent
◆ remedy: negotiate with ER to shorten the term of the CBA
○ new agent is not bound by the personal undertakings of the deposed
union

BARGAINING UNIT
– refers to a group of EEs sharing mutual interests within a given ER unit,
comprised of all or less than all of the entire body of EEs in the ER unit or any
specific/geographical grouping within such ER unit
– may also refer to group or cluster of jobs/positions within the ERʼs
establishment that supports the LO which is applying for registration
– no hard and fast rule in determining an appropriate bargaining unit; ff tests are
used in jurisprudence:
d. community or mutuality of interest doctrine
◆ EEs sought to be represented by the agent must have community/
mutuality of interest in terms of employment and working conditions
◆ characterized by similarity of employment status, same duties and
responsibilities, and substantially similar compensation and working
conditions
e. globe doctrine
◆ in defining the appropriate bargaining unit, the determining factor is
the desire of the workers themselves
◆ principle is based on the will of the workers
i. collective bargaining history doctrine
 ◆puts premium to the prior collective bargaining history and affinity of
the EEs in determining the appropriate bargaining unit
– neither decisive nor conclusive
j. employment status doctrine
◆ determination of the appropriate bargaining unit based on the
employment status of EEs

BARGAINING REPRESENTATIVE
– also known as exclusive bargaining representative/agent (EBR)
– a legitimate labor union duly recognized or certified as the sole and exclusive
bargaining representative/agent of all the EEs in the bargaining unit
– rights
○ shall be the sole and exclusive bargaining agent during the existence of
the CBA, to the exclusion of other LOs
◆ individual EE/group of EEs shall still have the right at any time to
present grievances to their ER
○ shall represent not only its members but also its non-members who are
included in the bargaining unit
○ no petition questioning its majority status shall be entertained, or
certification election shall be conducted outside of the 60-day freedom
period imm. before expiration of the 5 year term of the CBA

Determination of representation status

– modes of establishing majority status
d. sole and exclusive bargaining agent (SEBA) certification
◆ replaced voluntary recognition
◆ procedure
d. any LLO shall file a request for SEBA certification in the Regional
Office which issued its registration/creation
◆ contents of request
– name and address of requesting LLO
– name and address of company where it operates
– bargaining unit sought to be represented
– approx. no. of EEs in the bargaining unit
– statement of existence/non-existence of other LO/CBA
◆ attach certificate of registration/creation of chartered local
– certified by President of LLO/of federation
e. within 1 day, RD shall:
◆ determine whether the request is compliant with above; and
request a copy of the payroll
◆ if RD finds the request deficient
– shall advise the union/local to comply within 10 days from
notice
 – failure to comply shall be deemed withdrawal of the
request
i. actions of the RD
◆ unorganized establishments
– only 1 LLO
◆ RD shall call a conference within 5 work days for the
submission of the ff:
d. names of EEs in the bargaining unit who signify
their support for the certification
◆ must be at least majority
e. certification under oath by President of union/
local that all documents are true and based on his
personal knowledge
◆ presumed to be true and correct unless
contested under oath by any member during
the validation conference
– ER or any representative shall only be a by-
stander to the process of certification; not a
party-in-interest
◆ if RD finds requirements complete, shall issue during
the conference a certification as SEBA of all EEs in the
covered bargaining unit
– if union/local failed to complete requirements,
request shall be referred to election officer for
conduct of certification election
◆ posting of the SEBA certification for 15 consecutive
days in at least 2 places in the establishment/covered
bargaining unit
◆ effects:
d. bars filing of a petition for certification election by
any LO for a period of 1 year from date of
issuance
◆ may file after 1 year, except as otherwise
provided in CBA executed and registered in
the RO
e. certified union/local shall enjoy all rights and
privileges of an exclusive bargaining agent of all
EEs in the covered bargaining unit
– more than 1 LLO
◆ RD shall refer the request to the election officer for
certification election
◆ organized establishments
– RD shall refer the request to the Med-Arbiter for
 –
determination of propriety of conducting a certification
election
e. consent election
◆ election voluntarily agreed upon by the parties, with or without the
intervention by DOLE
◆ “parties” meaning contending unions
◆ Med-Arb shall call for the ConEl reflecting the partiesʼ agreement >>
forward to RD/representative for the determination fo the Election
officer (chosen by raffle)
◆ 1st pre-election conference shall be scheduled within 10 days from
the date of the ConEl agreement
i. certification election
◆ process of determining through secret ballot the SEBA of the EEs in an
appropriate bargaining unit for purposes of collective bargaining/
negotiations
◆ conducted only upon the order of the Mediator-Arbiter
◆ not a litigation proceeding; not bound by the technical rules of
evidence
◆ requires 2 kinds of majority votes
d. # votes for validity of process of election itself
◆ at least majority of all eligible votes in the appropriate
bargaining must cast their votes
e. # of votes required to be certified as SEBA
◆ winning union should obtain majority of valid votes cast
◆ NOTES: no union is a valid choice; spoiled ballots are not
reckoned to determine majority
◆ who may file?
d. LLO
e. local/chapter
i. national union/federation in behalf of local/chapter
j. employer
◆ only if:
– ER is requested to bargain collectively in a bargaining unit
where no registered CBA exists
– In ALL CASES above, ER shall not be considered a party thereto w/
a concomitant right to oppose thereto
◆ ERʼs participation shall be limited to:
– being notified/informed of petitions
– submitting the list of EEs during the pre-election
conference should Mediator-Arbiter act favorably on the
petition
◆ who may vote?
– all EEs who are members of the appropriate bargaining unit 3
 –
months prior to filing of petition/request
◆ including dismissed EEs but have contested the legality of
dismissal in a forum of appropriate jurisdiction at time of
issuance of order of conduct of elections
– will not be allowed if his dismissal was declared valid at
the time of conduct of elections
◆ where to file?
– RO which issued petitioning unionʼs certificate of registration/
certificate of creation of chartered local
– may also be filed online
◆ when to file?
– in absence of a duly-registered CBA, a petition for certification
may be filed anytime
◆ subject to the ff. bar rules (rules prohibiting the filing of the
petition)
d. certification year bar rule
◆ petition may not be filed within 1 year from:
– the date of the issuance of SEBA certification
– the date a valid certification, consent, run-off or
re-run election has been conducted
◆ if an appeal has been filed from order certifying
results, running of 1 yr period shall be suspended until
decision has become final and executory
e. negotiations bar rule
◆ no petition should entertained while the SEBA and ER
has commenced and sustained negotiations in good
faith
– negotiations must have been commenced within 1
year from date of valid elections
i. bargaining deadlock bar rule
◆ petition may not be entertained when a bargaining
deadlock, to which an incumbent/certified bargaining
agent is a party:
– has been submitted to conciliation/arbitration or
– has become the subject of a valid notice of strike/
lockout
j. contract bar rule
◆ petition may not be filed when a CBA between the ER
and SEBA has been registered
◆ petition may only be filed within 60 days prior to the
CBAʼs expiry
◆ exceptions:
– if filed by the ER, when established that the SEBA
 –
does not represent anymore the majority of the
EEs
– CBA contains provisions lower than standards
fixed by law; supporting documents are falsified,
fraudulent, tainted with misrepresentation
– CBA does not foster industrial stability
– new CBA was registered before/during the last 60
days of subsisting CBA, or during pendency of a
representation case
◆ procedure
– unorganized
d. filing of petition for cert. election
e. Med-Arb is required to immediately order the conduct of
certification election
– organized
d. filing of a verified petition questioning the majority status of
the incumbent SEBA
◆ incumbent SEBA shall automatically become a forced
intervenor
e. filed within 60 days before expiration of the CBA
◆ if freedom period expired without a petition, ER shall
continue to recognize the majority status of the
incumbent SEBA
i. verified petition is supported by 25% of all EEs in the
bargaining unit
◆ this may not be strictly enforced
j. run-off election
◆ an election done after a certification/consent election with 3 or more
choices results in none of these choices receiving the majority of the
valid votes cast
– ex. major elvot is 100; major valvot is 51. Union A only received 40,
Union B 30, Union C 20, No Union 10. NO ONE RECEIVED MAJOR
VALVOT OF 51
◆ when? motu proprio by Election Officer within 10 days from close of
election proceedings
– provided that there are no objections/challenges, if sustained, can
materially alter the results
◆ in the run-off election, choice shall be between the 2 unions receiving
the highest number of votes in the previous election
– no union shall not be choice
– same votersʼ list shall be used
– union receiving the greater number of valid votes shall be certified
as winner
 k. re-run election
◆ certification, consent or run-off election results to a tie between 2
choices
◆ Election Officer shall cause the posting of the notice of re-run election
within 5 days from the election
◆ conducted within 10 days after the posting of notice
◆ choice receiving the highest votes cast during the re-run election shall
be declared the winner
– failure of elections
○ # of votes cast in a certification/consent election is less than the majority
of the number of eligible voters
◆ and there are no material challenged votes
◆ declared in minutes of election proceedings
○ shall not bar the filing of a motion for immediate holding of another
certification/consent election within 6 months from date of declaration of
failure

RIGHTS OF LABOR ORGANIZATIONS

Check off, assessment, agency fees
– check off
○ a method of deducting from the EEʼs pay at prescribed periods, any
amount due for fees, fines or assessments
○ must comply with the requirements below
– assessment fees
○ no special assessments, attorneyʼs fees, negotiation fees or any other
extraordinary fees may be checked off from any amount due to an EE,
unless ff are complied with:
d. authorization by a written resolution of a majority of all the members
in a general membership meeting duly called for the purpose
e. secretaryʼs record of the minutes of the meeting, attested to by the
president
i. individual written authorization duly signed by the employee
◆ shall specifically state the amount, purpose and beneficiary of the
deduction
◆ if authorization were withdrawn, check-off shall not be valid
◆ disauthorization does not require that it be written individually
○ BLR has jurisdiction over check-off disputes
– agency fees
○ reasonable fees collected by the SEBA from non-members:
◆ who are EEs covered by the bargaining unit represented, and
◆ accepts the benefits under the negotiated CBA
– operative act; right to demand begins upon acceptance of
 –
benefits (jur.)
– if he does not accept benefits, no obligation to pay the agency
fees
○ SEBAʼs right to agency fees is neither contractual nor statutory in
character, but quasi-contractual
◆ can only be collected by SEBA; right to collect expires when it has no
more exclusive representation status
○ must be reasonable and equivalent to dues and other fees paid by the
members
○ no individual written authorization is needed for check-off of agency fees
◆ check-off shall be the ERʼs duty, for direct remittance to the SEBA
○ payment of agency fees does not free members of another union to the
payment of their dues and special assessments in the minority union

Collective bargaining
– requisites
d. ER-EE relationship must exist between the ER and the members of the
bargaining unit being represented by the bargaining agent
e. bargaining agent must have majority support of the members of the
bargaining unit established through modes sanctioned by law (SEBA/EBR)
i. lawful demand to bargaining is made in accordance with law

Duty to bargain collectively

– concept:
○ performance of a mutual obligation to meet and convene promptly and
expeditiously in good faith
○ for the purpose of negotiating an agreement with respect to:
◆ wages
◆ hours of work
◆ all other terms and conditions of employment
○ including proposals for adjusting any grievances/questions arising under
such agreement and executing a contract incorporating such agreements
if requested by either party
○ duty does not compel any party to agree to a proposal or to make any
concession
– ultimate purpose is to reach an agreement resulting in a contract binding on
the parties
– does not mean
○ compelling any party to agree blindly to a proposal nor to make a
concession
○ ER is not under any legal obligation to initiate collective bargaining
negotiations
○ does not include the obligation to reach an agreement
 – how to bargain collectively
○ in absence of a CBA
◆ done in accordance with any agreement/voluntary arrangement for a
more expeditious manner of collective bargaining
◆ in absence of an agreement, in accordance with the provisions of LC
A.261 (250)
○ there is an existing CBA
◆ through a written notice to terminate/modify the CBA at least 60 days
prior to its expiration date
– neither party shall terminate nor modify CBA during its lifetime,
except during this period
– it shall be the duty of both parties to keep status quo and to
continue in full force and effect the terms and conditions of the
existing CBA
d. during 60-day period or
e. until a new agreement is reached by the parties
◆ this principle is also called automatic renewal clause
– SC: CBA proposed by the SEBA may be adopted if the ER refused to bargain
collectively and negotiate

Collective Bargaining Agreement

– refers to the negotiated contract between a duly recognized/certified
exclusive bargaining agent of workers and their ER, concerning wages, hours
of work and all other terms and conditions of employment in the appropriate
bargaining unit
○ including mandatory provisions for grievances and arbitration machineries
– law between the parties during its lifetime and thus must be complied in good
faith
– impressed with public interest
– benefits derived from CBA and law are separate and distinct from one another
– who are entitled to the benefits of the CBA
d. members of the bargaining union
e. non-members of the bargaining union, but are members of the bargaining
unit
i. members of the minority union/s who paid agency fees to the SEBA
j. EEs hired after the expiration of the CBA
– provisions may be either economic or non-economic
○ economic
◆ include monetary value of wage increases, loan benefits, bonuses,
allowances, retirement plan, and other fringe benefits
◆ expires after 3 years
○ non-economic
◆ union security clauses, grievance procedures, labor-management
 ◆
cooperation schemes, and other provisions without monetary value
◆ expires after 5 years

Mandatory provisions in a Collective Bargaining Agreement

d. grievance procedure
○ internal rules of procedure established by the parties, with voluntary
arbitration as the terminal step, which are intended to resolve all issues
arising from the implementation and interpretation of the CBA
○ grievable issue or grievance; meaning
◆ any question raised by either the ER or the union regarding any of the
ff issues/controversies
d. interpretation/implementation of CBA
e. interpretation/enforcement of company personnel policies
i. any claim by either party that the other is violating any provisions
of the CBA/company personnel policies
○ violations of the CBA must be ordinary in character, for it to undergo the
grievance procedure
◆ if violation is gross, they shall be considered as ULP
○ all grievances submitted to the grievance machinery which are not settled
within 7 days from submission shall be automatically referred to voluntary
arbitration
e. voluntary arbitration
○ mode of settling labor-management disputes in which the parties select a
competent, trained and impartial 3rd person who is tasked to decide on
the merits of the case and whose decision is final and executory
○ voluntary arbitrator
◆ any person who has been accredited as such by the NCMB,
◆ any person named/designated in the CBA by the parties as their
VolArb
◆ one chosen by the parties with/without the assistance of the NCMB
pursuant to a selection procedure agreed upon in the CBA
◆ one appointed by the NCMB in case either of the parties to the CBA
refuses to submit to VolArb
○ shall be mandatory to render an award within 20 days from submission of
dispute to voluntary arbitration
◆ unless parties otherwise agree
○ VolArb has original and exclusive jurisdiction to resolve unresolved
grievance (as defined above)
◆ NLRC-RD or LA shall immediately dispose and refer these issues to
the grievance machinery/voluntary arbitration as provided in the CBA
◆ if parties to the CBA also agrees, shall also hear and decide all other
labor disputes including ULP and bargaining deadlocks
i. no strike-no lockout clause
 ○ an expression of firm commitment of the parties thereto, on the part of
the union, it will not mount a strike during the effectivity of the CBA, and
on the part of the ER, that it will not stage a lockout during the lifetime
thereof
○ SC: valid; but may only be invoked by an ER only when the strike is
economic in nature, or one which is conducted to force wage/other
concessions not mandated by law
◆ same goes for union, may only be invoked if lockout is economic in
nature
○ cannot be invoked if strike/lockout is grounded on ULP
j. labor-management council
○ meant to implement the constitutionally mandated right of workers to
participate in policy and decision making processes of the establishment
where they are employed insofar as said processes will directly affect their
rights, benefits and welfare
○ legal basis: right to co-participation under the Constitution
◆ participation in policy and decision-making processes which affects
rights and benefits of EEs
○ created in both organized and unorganized establishments
◆ organized: representatives should be nominated by the EBR
◆ unorganized: representatives should be elected directly by the EEs at
large
○ LMC shall perform non-adversarial and non-adjudicatory tasks; concerns
only with policy formulations and decisions

UNFAIR LABOR PRACTICES

Nature, aspects
– acts that violate the constitutional right of workers and EEs to self-
organization
– act complained of must have a proximate and causal connection with the ff:
d. exercise of the right to self-organization
e. exercise of right to collective bargaining
i. compliance with the CBA
j. dismissal, discharge, or prejudice/discriminate against an EE for having
given/being about to give testimony
– nature
○ inimical to the legitimate interests of both labor and management
○ disrupts industrial peace
○ hinders promotion of healthy and stable labor-management relations
– elements
d. there should exist an ER-EE relationship between the offended party and
the offender
 e. act complained of must be expressly mentioned and defined in the LC as
an ULP
– two aspects
d. civil
◆ ULP case itself, and
◆ may include claims for actual, moral, exemplary and other forms of
damages, attorneyʼs fees and other affirmative relief
◆ LA shall have jurisdiction
e. criminal
◆ cannot be instituted without a final judgment finding that an ULP was
committed
◆ during pendency of proceeding for ULP, running of prescriptive period
in criminal offense shall be deemed interrupted
– final judgment shall not be binding in the criminal case nor be
considered as evidence of guilt but merely as proof of
compliance of above rule
◆ regular courts have jurisdiction

By employer
d. to interfere with, restrain or coerce EEs in the exercise of their right to self-
organization
○ SC: test whether ER has interfered with/restrained/coerced EEs is whether
the ER has engaged in conduct which may reasonably tend to interfere
with the free exercise of the EEsʼ rights
○ SC: totality of conduct doctrine
◆ expressions of opinion by an ER, though innocent in themselves, may
be held to constitute an ULP because of the circumstances under
which they were uttered, the history of the particular ERʼs labor
relations/anti-union bias, or because of their connection with an
established collateral plan of coercion/interference
○ union-busting is a form of interference
◆ dismissal of any officers where the existence of the union is
threatened
e. to require as a condition of employment that a person/an EE shall not join a
labor organization or shall withdraw from one to which he belongs
○ commonly known as a yellow dog contract
○ ff stipulations imposed by ER are null and void
◆ representation by the EE that he is not a member of a labor
organization
◆ promise by the EE that he will not join a union
◆ promise by the EE that upon joining a labor organization, he will quit
his employment
i. to contract out services/functions being performed by union members
 ○ only if such will interfere with, restrain or coerce EEs in the exercise of
their rights to self-organization
○ if not, valid if it is an exercise of its business judgment
j. to initiate, dominate, assist or interfere with the formation/administration of
any LO
○ includes giving of financial/other support to the LO or its organizers/
supporters
○ this LO is called a “company union” >> formation, function, administration
has been assisted by any act defined as ULP
○ SC: prolonged recognition as SEBA is not tantamount to making the union
as company-dominated
k. to discriminate in regard to wages, hours of work and other terms and
conditions of employment in order to encourage/discourage membership in
any LO
○ discrimination; how to establish
d. there is no reasonable distinction/classification that can be obtained
between persons belonging to the same class, and
e. persons belonging to the same class have not been treated alike
○ act of discrimination: runaway shop — plant moved by ER from one
location to another to escape union labor regulations/state laws
○ exception: union security clause
◆ parties may agree to require membership in the bargaining agent
which successfully negotiated a CBA as a condition for continued
employment
◆ dismissals due to union security clause must still follow due process
– exception to USC: EEs who are already members of another union
at the time of the signing of the CBA
o. to dismiss, discharge or otherwise prejudice or discriminate against an EE for
having given or being about to give testimony under the LC
○ only ULP that need not be related to the exercise of EEs of their right to
self-organization and collective bargaining
p. to violate the duty to bargain collectively
q. to pay negotiation or attorneyʼs fees to the union/its officers/agents as part of
the settlement of any issue in collective bargaining or any other dispute
○ negotiation fee-for non-lawyers
○ these fees are supposed to be paid out of union funds
w. to violate a CBA
○ only those gross violations of its economic provisions
◆ gross — flagrant and/or malicious refusal to comply
◆ if not, mere grievances
– union has the burden of proof to present substantial evidence of ULP
– only officers and agents of corporations/associations/partnerships who have
actually participated in, authorized or ratified ULP shall be held criminally
 –

liable

By labor organizations
d. to restrain/coerce EE in the exercise of their right to self-organization
○ LO may interfere with the EEs exercise of right to self-organization
◆ right to prescribe its own rules with respect to the acquisition/
retention of membership
◆ SC: rules must be reasonable and within the bounds of the law
e. to cause or attempt to cause an employer to discriminate against an EE
○ includes:
◆ discrimination against an EE with respect to whom membership in
such organization has been denied, or
◆ termination of an EE on any ground other than the usual terms and
conditions under which membership/continuation of membership is
made available to other members
i. to violate the duty, or refuse to bargain collectively with the employer
○ LO must be the SEBA
j. to cause or attempt to cause an ER to pay/deliver or agree to pay/deliver any
money or other things of value, in the nature of an exaction, for services which
are not performed/not to be performed; includes demand for fee for union
negotiations
○ known as featherbedding
◆ unduly and unnecessarily maintains/increases the number of EEs used
or the amount of time consumed to work on a specific job
○ payments for standing by/its substantial equivalent are not payments for
services performed
k. to ask for or accept negotiation/attorneyʼs fees from ERs as part of the
settlement of any issue in collective bargaining or any other dispute
○ for prevention of undue influence by the ER on the independence of the
union in its decisions
o. to violate a CBA
○ only for flagrant and/or malicious refusal to comply with economic
stipulations int he CBA
– only officers, members of governing boards, representatives/agents/members
of labor associations or organizations who have actually participated in,
authorized or ratified ULP shall be held criminally liable

PEACEFUL CONCERTED ACTIVITIES

By labor organization
Strike
– any temporary stoppage of work by the concerted action of the EEs as a result
–
of an industrial/labor dispute
○ industrial/labor dispute — any controversy/matter concerning the terms
and conditions of employment or the association, or representation of
persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment
◆ regardless of whether the disputants stand in the proximate relation of
ER and EE
○ contemplates slow downs, mass leaves, sit-downs, attempt to damage/
destroy/sabotage plant equipment and facilities
– who may declare a strike
○ in organized-SEBA, both ULP and bargaining deadlock
○ in unorganized-only a LLO, but only on the ground of ULP
– requisites of a valid strike
d. must be based on a valid and factual ground
◆ grounds
– collective bargaining deadlock
◆ only for gross violations (flagrant and malicious)
– unfair labor practice
◆ includes union busting
e. notice of strike filed with NCMB-DOLE
◆ at least 15/30 days before the intended date of strike
i. service of notice of strike to NCMB-DOLE at least 24 hours prior to taking
of strike vote
◆ imposed by jurisprudence
j. strike vote taken where majority of union members must approve it
◆ vote shall be made only by the SEBA or LLO filing a notice of strike
◆ obtained by secret ballots
k. strike vote report submitted to NCMB-DOLE at least 7 days before the
intended date of strike
o. cooling-off period of 15 days (ULP) or 30 days (bargaining deadlock)
should be fully observed
◆ does not apply in cases of union busting
◆ counted from date of filing
p. 7-day waiting period/strike ban reckoned after submission of strike vote
report should also be fully observed in all cases
◆ SC: if strike vote was conducted within the 15/30 day period;
reckoning point of 7-day strike ban is from day following the expiration
of the cooling-off period
– effects
○ employment relationship is merely suspended during a valid strike
◆ ER is bound to reinstate the strikers
– GR: without backwages; however, if ER refused to reinstate
strikers who were ordered by the LA to be reinstated, ER shall be
 –

liable for backwages

– separation pay may also be awarded in lieu of reinstatement
○ no work, no pay applies for strikers
○ any union officer who knowingly participates in an illegal strike >>
terminated
○ any worker/union officer who knowingly participates in the commission of
illegal acts during a strike >> terminated
◆ mere participation in a lawful strike shall not constitute sufficient
ground for termination
– even if a replacement had been hired by ER during such lawful
strike
◆ there must be a clear evidence
– prohibited activities (includes lockout and picketing)
d. no LO/ER shall declare a strike/lockout without first having bargained
collectively, or without first having filed the notice required, or without the
necessary strike/lockout vote and reported to the Ministry
e. no strike/lockout shall be declared after:
◆ assumption of jurisdiction by the President or SOLE
◆ after certification/submission of the dispute to compulsory/voluntary
arbitration
◆ during pendency of cases involving the same grounds for the strike/
lockout
i. no ER shall use or employ any strike-breaker, nor shall any person be
employed as a strike-breaker
j. no public official/EE shall bring in, introduce or escort in any manner, any
individual who seeks to replace strikers in entering/leaving the premises of
a strike area, or work in place of the strikers
◆ including officers and personnel of the AFP or PNP
k. no person shall obstruct, impede, or interfere with, by force, violence,
coercion, threats or intimidation, any peaceful picketing by EEs during any
labor controversy or in the exercise of the right to self-organization or
collective bargaining, or shall aid or abet such obstruction or interference
o. police force shall keep out of the picket lines unless actual violence or
other criminal acts occur therein
◆ any public officer may take any measure necessary to maintain peace
and order, protect life and property, and/or enforce the law and legal
order

Valid strikes as distinguished from illegal strikes

– valid strike is one called for valid purpose and conducted through means
allowed by law; whereas illegal strike is one staged for a purpose not
recognized by law, or if valid purpose, conducted through means not
sanctioned by law
Picket
– simply means to march to and fro in front of the ERʼs premises, usually
accompanied by the display of placards and other signs making known the
facts involved in a labor dispute
– the requirements of strike does not apply to it
– requisites
d. picket should be peacefully carried out
e. there should be no act of violence, coercion or intimidation attendant
thereto
i. ingress to or egress from the company premises should not be obstructed
j. public thoroughfares should not be impeded
– innocent bystander rule: 3rd party ERs or innocent bystanders who have no
ER-EE relationship with the picketing strikers may apply for injunctions with
the regular courts to enjoin the conduct of the picket

By employer
Lockout
– temporary refusal of an ER to furnish work as a result of an industrial/labor
dispute
– grounds and procedure similar to that of a strike
○ lockout vote is done by approval of majority of the members of the BOD of
the corporation/association, or of the partners in a partnership
– liability of ER in cases of illegal lockout
○ any worker whose employment has been terminated as a consequence
shall be entitled to reinstatement with full backwages
○ in case union is also guilty of an illegal strike
◆ dismissal is unwarranted; striking EEs should be reinstated

Assumption of jurisdiction by Secretary of Labor and Employment

– occurs that when in the opinion of the SOLE, a labor dispute causes or will
likely cause a strike/lockout in an industry indispensable to national interest
○ nature of police power measure
– SOLE may do either:
d. assume jurisdiction over the labor dispute and decide it himself
e. certify it to the NLRC for compulsory arbitration
– this is also granted to the President
– prior notice and hearing not required in issuance of assumption/certification
order
○ order may be served at any time of the day

Industry indispensable to the national interest

d. hospital sector
 ○ strikes and lockouts shall, to every extent possible, be avoided
○ all serious efforts by labor, management and government must be
exhausted to substantially minimize/prevent, the adverse effects on life
and health of the exercise of right to strike/lockout
e. electric power industry
i. water supply services
j. air traffic control
○ excluding small water supply services
k. other industries as may be recommended by the NTIPC

Effects of assumption of jurisdiction

– if a strike/lockout has not yet taken place
○ shall automatically enjoin the intended or impending strike or lockout as
specified in the assumption/certification order
– if a strike/lockout has already taken place
○ all striking/locked out EEs shall immediately return-to-work
◆ not necessarily be expressly stated in the order, RTW is automatic
upon assumption of jurisdiction
◆ compulsory in character; not offensive to the provision against
involuntary servitude
◆ must be strictly complied even during the pendency of any petition
questioning its validity
○ ER shall immediately resume operations and readmit all workers under the
same terms and conditions prevailing before the strike or lockout
– in hospitals, clinics and similar medical institutions
○ in labor disputes adversely affecting the continued operation, it shall be
the duty of the striking union or locking-out ER to provide and maintain an
effective skeletal workforce of medical and other health personnel for the
duration of the strike/lockout
◆ movement and services shall be unhampered and unrestricted, most
especially emergency cases
○ within 24hrs from knowledge of occurrence of strike/lockout, SOLE may
immediately assume jurisdiction over the same/certify it to the NLRC
– defiance by union, officers and members of the assumption/certification order
constitutes a valid ground for dismissal
○ deemed to have lost their employment status
○ deemed to have abandoned their jobs
○ forfeits their right to be readmitted to work
○ may also be subject of criminal prosecution

MANAGEMENT PREROGATIVE
– ERs have the right and prerogative to regulate every aspect of the business/
employment, generally without restraint in accordance with their own
–

discretion and judgment

○ courts often decline to interfere in legitimate business decisions of ERs
○ law also protects the right of ERs to exercise what are clearly management
prerogatives
– limitations
○ must be in accordance to law, CBA, contract, policy, practice
○ subject to police power
○ should be without grave abuse of discretion
○ done in good faith and with due regard to the rights of labor

DISCIPLINE
– right to discipline covers the ff:
d. right to discipline
◆ disciplinary actions against erring EEs dictated by legitimate business
reasons and is not oppressive
◆ ER cannot be compelled to maintain in his employ the undeserving, if
not undesirable, EEs
e. right to dismiss
◆ must be for a valid and just cause
◆ measure of self-protection; the law in protecting the rights of the
laborer, authorizes neither oppression nor self-destruction of the ER
i. right to determine who to punish
j. right to promulgate rules and regulations
◆ policies, rules and regulations on work related activities of EEs must
always be fair and reasonable
k. right to impose penalty
◆ proportionality rule
– corresponding penalties, when prescribed, should be
commensurate to the offense involved and to the degree of
infraction
◆ include right to choose which penalty to impose
o. right to impose heavier penalty than what the company rules prescribe

TRANSFER OF EMPLOYEES
– transfer/assign EEs from one office/area of operation to another is valid
provided there is no demotion in rank or diminution of salary, benefits and
other privileges
○ should not be motivated by discrimination/made in bad faith/effected as a
form of punishment or demotion without sufficient cause
○ burden of proof is on part of ER
– what are considered as transfers
d. movement from
◆ 1 position to another of equivalent rank, level or salary, without a break
 ◆
in service
◆ 1 office to another within the same business establishment
e. reorganization
◆ valid as long as it is not contrary to law, morals or public policy
◆ carried out in good faith
i. promotion
◆ scalar ascent of an EE to another position, higher either in salary/rank
◆ EE has right to refuse promotion
◆ an EE cannot be promoted without his consent even if merely as a
result of a transfer
j. demotion
◆ EE is relegated to a subordinate/less important position constituting
reduction to a lower grade/rank with a corresponding decrease in
duties and responsibilities, usu. accompanied by decrease in salary
◆ may be validly imposed as a disciplinary sanction
– requires observance of due process (twin notice requirement)
◆ if not valid, form of a constructive dismissal
– transfer from highly technical position to one requiring mechanical
position is a demotion
– consequence of refusal to a valid transfer
○ EE may be held guilty of insubordination or willful disobedience of a lawful
order
○ except (jur.):
◆ transfer overseas
◆ consequent to promotion
– when transfer may amount to constructive dismissal
d. when it amounts to an involuntary resignation resorted to when continued
employment is rendered impossible, unreasonable or unlikely
e. when there is demotion in rank and/or diminution in pay
i. when a clear discrimination, insensibility or disdain by the ER becomes
unbearable to the EE leaving him with no option but to forego with his
continued employment

PRODUCTIVITY STANDARDS
– ER has the prerogative to prescribe the standards of productivity which the
EEs should comply
– these may be used by the ER as
○ an incentive scheme
◆ EEs who surpass the productivity standards/quota are usually given
additional benefits
○ a disciplinary scheme
◆ EEs may be sanctioned/dismissed for failure to meet the productivity
standards/quota
 ◆ failure to meet standards may be a ground for just cause dismissal
analogous to gross neglect of duty
– DOLE may intervene, motu proprio or upon initiative of an interested party, to
establish productivity standards
○ ex. for workers paid by results, homeworkers

BONUS
– an amount granted and paid ex gratia to the EE
– payment constitutes an act of enlightened generosity and self-interest on the
part of the ER rather than as a demandable/enforceable obligation
○ if there is no profit, there should be no bonus
○ if profit is reduced, bonus should likewise be reduced, absent any
agreement making such bonus part of the compensation of EEs
– when does it become demandable and enforceable
d. when stipulated in an employment contract/CBA
e. when grant of bonus is company policy/service
◆ SC: policy that bonus is forfeited upon finding of guilt of an
administrative charge is valid
i. when it is granted as an additional compensation which the ER agreed to
give without any condition, such as success of the business/more efficient
o more productive operation
◆ made part of the wage/salary/compensation

CHANGE OF WORKING HOURS

– ER have freedom and prerogative, according to their discretion and best
judgment, to regulate and control the time when workers should report for
work and perform their respective functions
– must be exercised in good faith for advancement of ERʼs interest
○ not for the purpose of defeating/circumventing rights of EEs under special
laws/valid agreements

BONA FIDE OCCUPATIONAL QUALIFICATIONS

– GR: employment in particular jobs may not be limited to persons of a particular
sex, religion, or national origin
○ exception: if ER can show that sex, religion, or national origin is an actual
qualification for performing the job
○ also known as bona fide occupational qualifications/BFOQ
– to justify a BFOQ, ER must prove 2 factors (Star Paper)
d. employment qualification is reasonably related to the essential operation
of the job involved
◆ reasonable business necessity rule
e. there is a factual basis for believing that all/substantially all persons
 e.
meeting the qualification would be unable to properly perform the duties
of the job
– examples:
○ BFOQ limiting marriage between co-EEs (one must resign) is not valid, no
valid reasonable business necessity; Star Paper case
○ BFOQ of weight standards of EEs, valid, reasonable for flight safety;
Yrasuegi PAL case
○ BFOQ that flight attendants applicants/EEs should be single, null and void;
Zialcita case

POST-EMPLOYMENT RESTRICTIONS
– ER may insist on an agreement with the EE for certain prohibitions to take
effect after the termination of their ER-EE relationship
– this may include any of the following stipulations, which must be agreed upon
by the ER and EE
d. non-compete/non-involvement
◆ prohibits an EE within a certain period from termination from:
d. starting a similar business, profession, trade
e. working in an entity that is engaged in a similar business that
might compete with the ER
◆ SC: contract in restraint of trade is valid provided there is a limitation
upon either time, place and trade
– restraint must not be too broad
– restraint is not greater than the protection the other party requires
e. forfeiture-for-competition/compensation-for-competition
◆ forfeiture of certain benefits which an EE would have been entitled
had he not engaged in competitive employment/activities after
termination of his employment
◆ 2nd (clawback): requires EE to pay some amount of money to his
former ER in order to be able to engage in competitive employment/
activities
i. garden-leave
◆ EE who has left employment is bound to stay at home, and during
such time, he continues to receive salaries and benefits but is
prohibited from commencing employment with new ER until period
has elapsed
j. confidentiality and non-disclosure
◆ commitment that the EE shall not use or disclose to any person, firm,
corporation any information concerning the business/affairs of his
employment, for his own benefit/to detriment of ER
k. non-solicitation
◆ EE may, directly/indirectly, be prohibited from soliciting/approaching,
or accept any business from any person/entity who have been
 – a client, talent, producer, designer, programmer, distributor,
merchandiser, or advertiser of the company
– party/prospective party to an agreement with the ER
– representative/agent of above
◆ for the purpose of offering goods/services which are of the same
type/similar to any goods/services supplied by the ER at termination
o. non-recruitment/anti-piracy
◆ prohibits recruitment by EE of personnel/EEs of the ER for a certain
period after his termination of employment, either on his own account/
in conjunction with/on behalf of any other person
p. inventions assignment/intellectual property
◆ for industries engaged in research and development and related
activities
– requires EE to disclose in confidence to the ER and its
subsidiaries, and to assign all inventions, improvements, designs,
etc.

MARRIAGE BETWEEN EMPLOYEES OF COMPETITOR-

EMPLOYERS
– ER has prerogative to establish a policy on marriage
– Duncan vs Glaxo Welcome
○ stipulation in employment contract which expressly prohibits an EE from
having a relationship with an EE of a competitor company is a valid
exercise of management prerogative
○ reasonable; relationships of this nature might compromise the interests of
the company; there is a possibility that the competitor will gain access to
its trade secrets, manufacturing formulas, marketing strategies

JURISDICTION AND REMEDIES

LABOR ARBITER
– has adjudicatory powers, contempt powers and power to conduct ocular
inspection
– LAs shall have the original an exclusive to hear and decide the ff cases
○ A.224
d. ULP cases
◆ all ULP whether committed by ER or LOs
◆ only as to civil aspect; criminal aspect is lodged with regular
courts
e. termination disputes
◆ illegal/legal dismissal cases
– not dependent on kind/nature of ground cited in support of
 –
dismissal
◆ qualified by the original and exclusive jurisdiction of voluntary
arbitrators to resolve grievances
– termination of employment is not a grievable issue (even if as
provided in CBA)
– VA will have jurisdiction over termination cases only if
expressly agreed by the parties to a CBA
– failure to activate grievance machinery will confer jurisdiction
to LAs
i. cases involving wages, rates of pay, hours of work and other terms
and conditions of employment
◆ if accompanied with claim for reinstatement
◆ this is a money claim; but presupposes that it proceeds from a
termination case
j. claims arising from prohibited activities in strikes/lockouts, involving
questions on legality
k. all other claims arising from ER-EE relations involving an amount
exceeding P5k, regardless of whether accompanied with claim for
reinstatement
◆ including persons in domestic/household service
◆ not including claims for ECC, SSS,PhilHealth, maternity benefits
◆ unlike #3, this does not necessarily arise from termination
◆ limited only to those arising from statutes/contracts other than a
CBA
– if arising from CBA, VA has jurisdiction
○ A.124
◆ dispute involving legislated wage increases and wage distortion in
unorganized establishments
– only those not voluntarily settled by parties
○ A.128(b)
◆ contest on findings of labor enforcement officers in relation to the
exercise of SOLEʼs power to issue compliance orders (based on these
findings)
– requisites (SC)
d. ER contests the findings of the labor regulations officer and
raises issues thereon
e. in order to resolve such issues, there is a need to examine
evidentiary matters
i. such matters are not verifiable in the normal course of
inspection
◆ if there is an accompanying money claim exceeding P5k when A.
128(B) was exercised, SOLE/RD has jurisdiction, not LA
○ A.233
 ◆enforcement of compromise agreements when there is:
– non-compliance by any of the parties
◆ nullification if there is:
– prima facie finding that settlement was obtained through fraud,
misrepresentation, coercion
◆ may also issue a writ of execution to enforce the terms of the
agreement
◆ applies to compromise agreements entered into before BLR, RD,
NCMB
○ A.276
◆ issuance of writ of execution to enforce decisions of VA/panel of VA, in
case of their absence/incapacity
○ RA 8042, am. RA 10022
◆ money claims arising out of ER-EE relationship, or by virtue of any law
or contract, involving Filipino workers for overseas deployment
– includes claims for damages, benefits, termination
– SC: even if not deployed, but already signed a POEA-approved
contract, LA still has jurisdiction over money claims
– SC: may be filed by heirs
– SC: VA has jurisdiction if there is a CBA between the foreign ER
and BU of the OFWs
– POEA has original and exclusive jurisdiction if case is
d. recruitment and license violations
e. disciplinary action cases which are administrative in character
○ damages and attorneyʼs fees arising from ER-EE relationship
○ legality or illegality of a strike or lockout
◆ only those strikes/lockouts not affecting national interest
– these are cognizable by SOLE/NLRC
– LAs have no injunctive power
– employees covered by jurisdiction of LA
○ private sector EEs
◆ dismissal of corporate officers falls within the jurisdiction of regular
court
– those elected/appointed by directors/SHs
– those who are given that character either by the RCC or
Corporationʼs by-laws
◆ BOD cannot create anew corporate offices other than
provided for int the by-laws; only limited to above
◆ SC: different interpretation can easily leave BOD to
circumvent the security of tenure by inclusion in the by-laws
of an enabling clause on the creation of just any corporate
officer position
○ EEs in GOCCs without original charters
 ○ alien parties
○ priests and ministers
◆ for matters purely secular in nature, such as termination based on just
cause
– does not cover ecclesiastical affairs: relates to matters of faith,
doctrines, worship, governance of congregation
○ domestic worker or kasambahay
○ EEs of cooperatives
◆ only over monetary claims and illegal dismissal cases involving EEs
◆ does not include termination of membership
○ counterclaims of ER against EEs

Jurisdiction of the Labor Arbiter as distinguished from the Regional

Director
– RD has jurisdiction over money claims filed under A.129; whereas LA has
jurisdiction over money claims filed under A.224
– jurisdiction of RD and LA over money claims must arise from ER-EE
relationship
– in money claims with the RD, the aggregate amount must not exceed P5k;
whereas in LA, the amount must exceed 5k
– the claim with the RD must not include reinstatement; whereas in LA, the claim
may or may not include reinstatement
○ money claim may be less than P5k with LA provided it does not include
reinstatement
– the jurisdiction of RD is limited to money claims; whereas the jurisdiction of LA
extends to all other claims arising from ER-EE relationship

Requirements to perfect appeal to National Labor Relations

Commission
– governing law, A.229 (223)
○ appeal from the decision of the LA is a mere statutory privilege
○ MR is not a proper remedy against a decision of the LA
○ in case of appeals filed outside of period/without bond, remedy of EE is a
motion to dismiss the appeal
– grounds
d. if there is prima facie evidence of abuse of discretion on the part of the LA
◆ exercise of certiorari power of the NLRC
e. if the decision, order or award was secured through fraud or coercion,
including graft and corruption
i. if made purely on questions of law
j. if serious errors in the findings of fact are raised which, if not corrected,
would cause grave or irreparable damage/injury to the appellant
– how to perfect an appeal
 d. filing of appeal within the reglementary period
◆ within 10 calendar days from receipt of decision of the LA, or
◆ within 5 calendar days from receipt of decision of the RD (A.129)
– period is mandatory; not a mere technicality
– failure to file renders the judgment appealed from final and
executory
– date of receipt of counsel or representative of record, if party has
one
– date of mailing by registered mail is date of filing
e. payment of appeal fee and legal research fee
◆ mandatory and jurisdictional
i. filing of memorandum of appeal
◆ verified by appellant
◆ 3 copies
◆ timeliness
◆ accompanied by:
– proof of payment of appeal and legal research fee
– posting of cash/surety bond (if judgment involves monetary
award)
◆ motion to reduce appeal bond may be allowed; requisites:
d. motion is filed within the reglementary period of
perfecting the appeal
e. should be based on meritorious grounds
i. should be accompanied by a partial bond, amount of
which should be reasonable
– proof of service to adverse party (not fatal)
◆ mere notice of appeal will not stop the running of the prescriptive
period
– effects of perfection
○ stays execution of the decision of the LA
◆ except reinstatement pending appeal

Reinstatement and/or execution pending appeal

– basis A.229 (223)
– applies to all kinds of illegal dismissal, regardless of ground
○ cannot apply if dismissal is legal
◆ except for equity and compassionate justice
– reinstatement is self-executory or immediately executory even pending appeal
○ applicable only to decisions rendered by the LA
○ if issued by the NLRC, CA, SC, there is a need to secure a writ of
execution from the LA of origin to enforce reinstatement
○ not affected by EEʼs employment elsewhere
○ grant of TRO by CA/SC merely suspends the implementation and
 ○
enforcement of the reinstatement order
– how to implement reinstatement; option of ER
d. actual reinstatement
◆ EE should be reinstated to his position which he occupies prior to his
illegal dismissal under the same terms and conditions prevailing prior
his dismissal/separation
◆ if no longer available, a substantially equivalent position
e. payroll reinstatement
◆ reinstated in the payroll of the company without requiring him to
report back to work
– reinstatement wages
○ computed from time ER receives copy of LAʼs decision ordering
reinstatement
○ ER is not liable to pay reinstatement backwages if ordered by the NLRC,
but executed by writ, and later on reversed by CA/SC
– disobedience of directive in the decision that reinstatement is immediately
executory and to submit a report of compliance within 10 days, denotes
refusal to reinstate
○ LA shall issue a writ of execution immediately to implement the order of
reinstatement
○ ER is liable to pay accrued salaries
○ ER may be cited for contempt; provided sheriff has already served the writ
of execution
– other than reinstatement, execution of decision of LA is stayed upon
perfection of appeal

NATIONAL LABOR RELATIONS COMMISSION

– administrative and quasi-judicial body
– composed of Chairman and 23 commissioners, with 8 divisions
○ en banc: merely administrative power
◆ promulgation of rules and regulations governing hearing and
disposition of cases
◆ formulate policies affecting administration and operations
○ divisions: exercises adjudicatory powers
– jurisdiction
○ exclusive original
d. petition for injunction in ordinary labor disputes
e. petition for injunction in strikes or lockouts
i. certified cases A.278(g)
◆ national interest cases certified by the SOLE to the NLRC for
compulsory arbitration
◆ effects of certification
– intended/impending strike/lockout: automatically enjoined;
 –
regardless of any MR or nonresolution thereof
– actual strike/lockout: all striking/locked out EEs shall
immediately return to work; EE shall imm. resume operations
and readmit all workers
– cases filed/may be filed: all cases between parties shall be
subsumed/absorbed (except order specifies otherwise)
– all other pending cases: parties shall inform counsel and
NLRC
◆ NLRC shall have authority to cause execution
j. petition to annul or modify the order/resolution of the LA
(extraordinary remedies)
◆ petition for extraordinary remedies
– against any order or resolution of the LA, including those
issued during execution proceedings
– grounds
d. there is prima facie evidence of abuse of discretion on the
part of the LA
e. serious errors in the findings of facts are raised which, if
not corrected, would cause grave or irreparable damage
or injury to the petitioner
i. a party, by fraud, accident, mistake or excusable
negligence has been prevented from taking an appeal
j. made purely on questions of law
k. order or resolution will cause injustice if not rectified
– proceedings before LA shall continue unless restrained (TRO)
– execution shall not be suspended
○ exclusive appellate
d. all cases decided by LA
◆ effect of reversal of order of reinstatement made by LA (SC)
– if ER fails to obey order, initiates an appeal: ER is still liable to
pay reinstatement wages computed from the time of order of
reinstatement up to date of reversal on appeal
◆ exception: EE may be barred from collecting accrued
wages provided if delay in enforcing reinstatement is
without fault of ER
– EE is not required to refund reinstatement wages (either
through payroll/actual reinstatement) paid to him by the ER
e. cases decided by the RD or hearing officers under A.129
i. contempt cases decided by LA

COURT OF APPEALS
– R.65 petition for certiorari
○ labor case decided by any of the ff may be elevated to the CA by R.65
 ◆ SOLE
◆ NLRC
◆ Director of BLRC in cases decided in its appellate jurisdiction
○ only grounds: when the decision was rendered
d. without or in excess of jurisdiction
e. with grave abuse of discretion amounting to lack or excess of
jurisdiction
○ period of filing
◆ within 60 days from notice of judgment, order, resolution, OR
◆ within 60 days from denial of MR or MNT
◆ reckoned from receipt of counsel, not by party
○ filing of MR is jurisdictional
◆ but always subject to exceptions
○ verification and certification against forum shopping are required
◆ must be signed by all parties sued in their individual capacities
◆ secretaryʼs certificate is required if corporation is a party
– R.43 petition for review
○ applies to decisions, orders or awards issued by the VA or panel of VA
○ grounds
d. lack or want of jurisdiction
e. grave abuse of discretion
i. violation of due process
j. denial of substantive justice
k. erroneous interpretation of law
○ filed within 15 days from notice of award, judgment or final order or
resolution of the VA

SUPREME COURT
– R.45
○ appeal by petition for review on certiorari
○ decisions, final orders or resolutions of the CA in exercise of its appellate
jurisdiction
○ period: 15 day from notice of judgment or from denial of the MR
○ verification and certification against forum shopping are required

BUREAU OF LABOR RELATIONS

– mandate
d. act as national registry of unions and CBAs
e. formulate regulatory and developmental policies, standards, guidelines
and programs improving the right to organize
i. act as lead agency in workers and ER education
j. adjudicate inter- and intra-union disputes
k. promote bipartism and tripartism
 o. formulate and implement programs that strengthen trade unionism to
achieve industrial peace
– mediator-arbiter
○ officer in the BLR authorized to hear and decide representation cases,
inter- and intra-union disputes and other related labor relations disputes
◆ except cancellation of union registration (RD)
○ has power to determine existence of ER-EE relationship
○ injunctive and contempt power
– original and exclusive jurisdiction of med-arbiters (appealable to BLR Director;
exception inter-union disputes, see below)
d. inter-union disputes
◆ aka representation/certification election conflicts
◆ any conflict between and among LLOs involving representation
questions for purposes of collective bargaining
– or any conflict between LLOs for that matter
◆ NOTE: appealable to the SOLE, not BLR Director; how
– unorganized:
◆ order granting conduct of CE is subject to protest only
◆ denial of petition for CE may be appealed to SOLE within 10
days
– organized: both order granting conduct of CE and denying petition
for CE may be appealed to SOLE within 10 days from receipt
e. intra-union disputes
◆ aka internal union disputes
◆ a conflict within or inside a labor union; between and among union
members
– includes grievances arising from any violation of the rights and
conditions of membership, violation of or disagreement over any
provision of the unionʼs constitution and by-laws or disputes
arising from chartering or affiliation of a union
i. other related labor relations disputes
◆ any conflict between a labor union and ER, or any individual, entity or
group that is not a labor union or workersʼ organization
j. contempt cases
– BLR Director
○ original and exclusive jurisdiction (appealable to SOLE)
d. complaints and petitions involving the registration or cancellation of
registration of federations, national unions, industry unions, trade
union centers and their local chapters, affiliates and member
organizations
e. request for examination of books of accounts of above unions
◆ concurrent with RD; they cover different kinds of unions
i. intra-union disputes involving above unions
 j. contempt cases
○ exclusive appellate jurisdiction (appealable to CA via R.65)
d. all decisions of Med-Arbiters in intra-union disputes and other related
labor relations disputes
e. all decisions originating from DOLE RD in the cases falling under their
original jurisdiction
◆ as regards labor relations cases

NATIONAL CONCILIATION AND MEDIATION BOARD

Jurisdiction
– principally in-charge of settlement of labor disputes through conciliation,
mediation and of the promotion of voluntary approaches to labor dispute
prevention and settlement
○ conciliation and mediation
◆ process whereby a 3rd person (conciliator/mediator) intervenes in a
dispute involving 2 or more conflicting parties for the purpose of
reconciling their differences or persuading them into adjusting or
settling their dispute
◆ does not make or render any decision
– SC: not a quasi-judicial agency
– functions:
d. perform preventive mediation and conciliation functions
e. administer voluntary arbitration program; maintain/update a list of
voluntary arbitrations; compile arbitration awards and decisions

Conciliation as distinguished from mediation

– in both conciliation and mediation, a neutral 3rd party is tasked to assist 2 or
more opposing parties in finding appropriate resolution to a dispute
○ no marked distinction in PH law and jurisprudence
– distinction as to other jurisdictions:
○ in mediation, the Mediator may or may not offer any opinions on the
strengths and weaknesses of each partyʼs positions and arguments;
whereas in conciliation, the Conciliator may not only offer an opinion on
the issues at hand, but may actually make a binding opinion thereon
(parties must stipulate in advance of this power)

Preventive mediation
– found in EO 126 (1987)
– covers potential labor disputes that are the subject of a formal or informal
request for conciliation and mediation assistance
○ by either or both of parties, or upon initiative of NCMB
 ○ purpose
◆ to avoid occurrence of actual labor disputes
◆ remedy, contain or prevent potential labor disputeʼs degeneration into
a full blown dispute
○ done through amicable settlement
– issues that may be subject to PM
○ any issue arising from violation of the right to self-organization
◆ including issues for notice of strike or lockout
– how to initiate:
d. file a notice or request of preventive mediation
◆ who notifies or requests?
– ER
– duly-registered labor union
◆ issues may be strikeable or non-strikeable
– strikeable
◆ parties may mutually agree that the same be treated or
converted into a preventive mediation case
◆ as effect, no strike/lockout may be legally and validly mounted
– non-strikeable
◆ NCMB, motu proprio, may convert the same into preventive
mediation case, or refer issued to voluntary arbitration
e. conversion of the notice of strike/lockout into a preventive mediation case
◆ grounds
d. issues raised in notice of strike/lockout are not strikeable in
character
e. party which filed the notice of strike/lockout voluntarily asks for
conversion
i. both parties to a labor dispute mutually agree to have it subjected
to preventive mediation proceeding
◆ shall result in the dismissal of the notice of strike/lockout
◆ guidelines to be followed:
– determine whether the issue/s raised in notice of strike/lockout is/
are strikeable
– if conversion is warranted, written recommendation from
Conciliator-Mediator is required
◆ after close consultation with Regional Branch Director
– recommendation must be formally endorsed to RBD II for approval
– must be done before the cooling-off period expires or before the
union conducts its strike balloting
– parties concerned must be formally notified of the action taken by
the RBD through letter from C-M, as approved by RBD II
– notice should be dropped from docket of notices of strike/lockout,
renumbered as pm case, and conference set on specific dates
DEPARTMENT OF LABOR AND EMPLOYMENT REGIONAL
DIRECTORS

Jurisdiction
– original and exclusive
○ labor standards and special laws
d. labor standards enforcement cases under A.128
e. small money claims arising from lab sta violations in amount not
exceeding P5K and not accompanied by reinstatement A.129
i. occupational safety and health violations
j. complaints against private recruitment and placement agencies for
local employment
◆ for overseas, POEA has jurisdiction
k. cases submitted to them for voluntary arbitration in their capacity as
ex-officio VAs
◆ basis is DO 83-07
– how: where a grievance remains unresolved despite bipartite
efforts, either or both parties may voluntarily bring grievance
to an EVA
◆ coverage
– all grievances arising from interpretation or implementation of
CBA
– all grievances arising from interpretation or enforcement of
company personnel policies
– cases referred by SOLE under DOLEʼs administrative
intervention for dispute avoidance initiative
– any other labor dispute, upon agreement of parties
○ labor relations (appealable to BLR Director)
d. petition for cancellation of registration of independent unions, local
chapters and workersʼ associations
e. petitions for deregistration of CBA
i. request for examination of books of accounts of above unions
– original jurisdiction
d. cases involving inspection of establishments to determine compliance
with labor standards (visitorial)
◆ access to ERʼs records and premises at any time of the day/night,
whenever work is being undertaken therein
◆ right to copy records
◆ right to question any EE and investigate any fact, condition or matter
w/c may be necessary to determine violations, or which may aid in
enforcement of any labor laws
 e. cases involving issuance of compliance orders and writs of execution
(enforcement)
◆ for issuance of writ of execution, except where ER contests the
findings and raises issues supported by document which were not
considered in course of inspection
– RD shall endorse the same to LA
◆ order stoppage of work or suspension of operations when
noncompliance of law or rules poses grave and imminent danger to
the health and safety of workers
○ REQUISITES FOR VALID EXERCISE OF VISITORIAL AND ENFORCEMENT
POWERS (appeal to SOLE)
d. ER-EE relationship still exists at the time of the institution of the action
e. findings in question were made in the course of inspection
◆ whether initiated by complaint or routine inspection
i. EEs have not yet initiated any claim/complaint with the DOLE RD under
A.129 or LA

Recovery and adjudicatory power

– A.129
– jurisdiction over small money claims arising from lab sta violations in amount
not exceeding P5K and not accompanied by reinstatement A.129
○ recovery of wages and other monetary claims/benefits, incl. legal interest
○ claim must be presented by EE or domestic worker or kasambahay
○ employment should no longer exist at time of initiation of complaint
◆ if so, filed under A.128
– appeal is to NLRC; unlike in A.128, appeal is to SOLE

DEPARTMENT OF LABOR AND EMPLOYMENT

SECRETARY

Jurisdiction
– powers
d. visitorial and enforcement A.128
e. power to suspend effects of termination
i. assumption of jurisdiction
◆ basis 278g; police power
◆ when in the opinion of SOLE, labor dispute causes or will likely to
cause a strike/lockout in an industry indispensable to national interest,
he is empowered to do either:
– assume jurisdiction over the labor dispute and decide it himself
– may certify it to the NLRC for compulsory arbitration
◆ SOLE has discretion to determine which industries are indispensable
 ◆
to national interest; DO 40-H-13 not exclusive list
– hospital sector
– electric power industry
– water supply services (excl. small water supply services)
– air traffic control
– other industries recommended by the TIPC
◆ prior notice and hearing are not required
◆ effects of assumption order
– automatically enjoins the intended or impending strike, or if one
has already commenced, prohibits its continuation
– return to work (even if not expressly stated in the order;
compulsory in character)
◆ actual reinstatement (payroll reinstatement only in special
circumstances)
◆ retrenched/redundant EEs whose termination were brought
about the labor dispute are included
◆ MR will not affect its enforcement
◆ defiance of assumption/certification orders
– defiance by union, officers and members constitutes a valid
ground for dismissal
– defiant strikers, regardless of whether officers or members, are
deemed dismissed
j. appellate jurisdiction
◆ decisions of BLR Director rendered in its original and exclusive
jurisdiction
◆ may be appealed to CA via R.65
k. voluntary arbitration process

Visitorial and enforcement powers

– quasi-judicial in nature
– role of SOLE in the visitorial and enforcement powers is appellate in nature
○ RD shall have original jurisdiction
○ factual findings of the SOLE/RD in exercise of A.128(b) are binding on the
LA under the doctrine of res judicata
– visitorial powers A.128
d. access to ERʼs records and premises
◆ what is being inspected in the ER-establishment
◆ awards granted in the inspection order are equally applicable to all
those who are employed at time complaint was filed
e. right to copy the records
i. right to question any EE and investigate
j. inspect premises, books of accounts and records of any placement or
recruitment agency A.37
 k. inquire into the financial activities of LLOs A.289
◆ and to examine books of accounts and other records
◆ upon filing of a complaint under oath
◆ complaint must be duly supported of at least 20% if total membership
of the LO concerned
– enforcement powers
d. issue compliance orders
e. issue writs of execution
◆ except in contested cases
i. order stoppage of work
◆ when noncompliance with law or IRR poses grave and imminent
danger to health and safety of workers
j. require ERs to keep and maintain such employment records as may be
necessary in aid of visitorial and enforcement powers

Power to suspend effects of termination

– basis A.292(b)
– SOLE may suspend the effects of termination pending resolution of the
dispute in the event of prima facie finding by an appropriate DOLE official
before whom dispute is pending that:
d. the termination may cause a serious labor dispute
◆ may or may not involve a strike or lockout
e. the termination is in implementation of a mass lay-off
– considerations
○ termination dispute may or may not be related to the exercise of the right
to self-organization
○ requires preliminary determination of existence of prima facie evidence
◆ made at the inception of the labor proceedings
○ “appropriate DOLE official” — LAs or VAs
– effects
○ immediate reinstatement of terminated EEs
◆ SOLE may issue order of reinstatement pending resolution of the case

Remedies
– appeal to SOLE; may originate from any of the ff:
d. DOLE RD
◆ labor standards enforcement cases A.128
◆ occupational safety and health violations
◆ complaints against private recruitment and placement agencies for
local employment
e. Med-Arbiters
◆ inter-union disputes
i. Director of BLR
 ◆ complaints and petitions involving the registration or cancellation of
registration of federations, national unions, industry unions, trade
union centers and their local chapters, affiliates and member
organizations
◆ request for examination of books of accounts of above unions
◆ intra-union disputes involving above unions
◆ contempt cases
j. POEA
◆ recruitment violations and other related cases
◆ disciplinary action and other special cases
– decisions, awards or orders of the ff are not appealable to the SOLE
d. LA > NLRC (memorandum of appeal)
e. NLRC > CA (R.65)
i. DOLE RD under A.129 > NLRC
j. DOLE RD as EVAs > CA (R.43)
k. VA > CA (R.43)

VOLUNTARY ARBITRATOR
Jurisdiction
– VA or panel of VAs shall have exclusive and original jurisdiction over the ff:
d. unresolved grievances arising from interpretation/implementation of CBA
e. unresolved grievances arising from interpretation/enforcement of
company personnel policies
i. violations of the CBA which are not gross in character
j. other labor disputes upon agreement of parties
◆ includes ULP and bargaining deadlocks
k. national interest cases upon agreement of parties
o. unresolved wage distortion issues arising from application of any wage
orders in organized establishments
p. unresolved grievances arising from interpretation and implementation of
productivity incentive programs under RA 6971

Remedies

PRESCRIPTION OF ACTIONS
Money claims
– A.306
○ all money claims arising from ER-EE relations shall be filed within 3 years
from the time the cause of action accrued
○ includes
 ◆ claims for overtime pay, holiday pay, SIL pay, bonuses, salary
differentials and illegal deductions by an ER
◆ money claims arising from CBA
◆ money claims of OFWs

Illegal dismissal
– A.1146 NCC
○ 4 years from accrual of cause of action
○ including “money claims” consequent to an illegal dismissal
◆ ex. backwages and damages

Unfair labor practice

– A.305
○ within 1 year from accrual of ULP
○ period is interrupted during the pendency of a labor proceeding
– before a separate criminal action for ULP may be filed, there must be a final
judgment finding that ULP was committed

Offenses under the Labor Code

– A.305
○ all offenses penalized under LC and its IRR prescribe in 3 years from time
of commission
○ SC: illegal dismissal is not an “offense” contemplated under A.305

Illegal recruitment
– simple: 5 years
– economic sabotage: 20 years