Labor Law ReviewUniversity of Southern Philippines Foundation

PART ONE(LABOR STANDARDS)

Introductory Concepts

A. LABOR LAWS, SOCIAL LEGISLATION AND SOCIAL JUSTICE

1. Definition

2. Principle of Social Justice

3. Labor Legislation vs Social Legislation

B. INTERPRETATION AND CONSTRUCTION OF LABOR STANDARDS

- Art. 4 (Labor Code)- Acuna vs CA- G&M Phils. Inc. vs Cuambot- Eureka vs NLRC- Continental Steel Mfg. vs Montano- Penaflor vs Outdoor Clothing Mfg. Corp.

For the Employer’s Side:

- Cebu Metal Corp. vs Saliling- Saracom vs Interorient Maritime Ent., Inc.- NS Transportation Employees Assoc. vs NSTS Inc.

C. MANAGEMENT PREROGATIVE VS LABOR RIGHTS (REFER TO AZUCENA VOL. II)

1. Management Prerogatives

Inherent Nature of Management Prerogatives

- Phil. Industrial Security Agency Corp. vs Aguinaldo- Mendoza vs Rural Bank of Lucban- Placido Urbanes vs CA- Phil. Am Life & Gen Insurance Co. vs Gramaje- St. Michael’s Institute vs Santos- Industrial Timber Corp. vs Ababon- First Dominion Resources Corp. vs Penaranda

2. Limitations on Exercise of Management Prerogatives

1. Hire

R.A. 7610 R.A. 9231

R.A. 7877 (applicability to MP’s) Art. 136(a) Labor Code Art. 130 Labor Code R.A. 7277 “Yellow Dog” Contract R.A. 9208 D.O. 64-04 Series of 2004 D.O. 04 Series of 1999

2. Promote

Defined

- Millares vs Subido

Does not mean salary increase

- PTT Corp. vs CA

Employee’s refusal to be promoted

- Erasmo vs HIG Corp.

3. Demote

Nature

- Leonardo vs NLRC - Fuerte vs Aquino

Due Process

- Floren Hotel vs NLRC

4. Transfer

- Sentinel Security Agency vs NLRC- OSS Security & Allied Services Inc. vs NLRC- Mendoza vs Rural Bank of Lucban- Benguet Electric Cooperative vs Fianza- Tecson vs Glaxxo Wellcom Phils. Inc.- SMC vs Pontillas- Norkis Trading vs Gnillo- Aguanza vs Asian Terminal Inc.- Endico vs Quantum Food Distribution Center

Limits

- Mendoza vs Rural Bank of Lucban- Benguet Electric Cooperative vs Fianza- Dusit Hotel Nikko vs NUWHRAIN- Allied Banking Corp. vs CA- Floren Hotel vs NLRC

Effects of Refusal by Emplyee

- Benguet Electric Cooperative vs Fianza- Allied Banking Corp. vs CA

Related Cases

- Phil-Singapore Transport Services Inc. vs NLRC- Palomares vs NLRC- Arellano, Jr. vs NLRC- Sobrepena, Jr. vs CA- Brew Master Intl. vs NAFLU- Isabelo vs NLRC- Phimco Industries Inc. vs NLRC- Benguet Electric Cooperative vs Fianza- PAL vs NLRC

5. Discipline6. Management7. Dismiss

D. PRESIDENTIAL DECREE NO. 442 (BRIEF HISTORICAL BACKGROUND)

1. Significance

- P.D. 442 (11/01/74)- R.A. 6715 (03/21/98)

E. BASIS FOR THE ENACTMENT OF LABOR LAWS

1. Police Power

- PASEI vs Drillon

2. Social Justice and Human Rights Provision

- Sec. 16, Art. II, 1987 Constitution

3. Doctrine of Incorporation

- Sec. 2, Art. II, 1987 Constitution

F. LIMITATIONS IN THE ENACTMENT OF LABOR LAWS (REFER TO 1987 CONSTITUTION)

1. Equal Protection Clause2. Due Process Clause3. Prohibition Against Involuntary Servitude4. Non-Impairment Clause5. Requirement of Publication

- Art. 2, Civil Code

G. CONSTITUTIONAL RIGHTS OF WORKERS IN LABOR STANDARDS

1. Security of Tenure2. Humane Conditions of Work

3. Living Wage4. Just Share in the Fruits of Production5. Co-determination

- Sec. 3, Art. XIII, 1987 Constitution

H. LABOR CONTRACTS AND INTERPRETATION

- Gonzales vs NLRC- Servidad vs NLRC- Grandteq Industrial Steel Products Inc. vs Margallo

I. LABOR CODE APPLICABILITY

- J.V. Angeles Construction vs NLRC- Austria vs NLRC

J. DEFINITION

1. Employer (Art. 212(e) Labor Code)2. Employee (Art. 212(f) Labor Code) 3. Test to Determine the Existence of Employer-Employee Relationship

FOUR-FOLD TEST1. Right To Hire2. Payment of Wages3. Power of Dismissal4. Control over the conduct of work

- CRC Agricultural Trading vs NLRC (GR# 177664 – 12/23/09)- Dealco Farms Inc. vs NLRC (GR# 153192 – 01/30/09)- WPP Mtg. Comm. Inc. vs Galera (GR# 169207 – 03/25/10)- Galera vs WPP Mtg. Comm. Inc. (GR# 169239 – 03/25/10)- Gomez vs PDMC (GR# 174044 – 11/27/09)- Tomaquin vs PLDT (GR# 185251 – 10/02/09)- Masonic Contractor Inc. vs Madjos (GR# 185094 – 11/25/09)

Main Concepts

A. RECRUITMENT AND PLACEMENT OF WORKERS

1. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. 8042)

Constitutionality

- Executive Secretary vs CA- People vs Chowdury

Jurisdiction of Money Claims, Death Benefits, and other Benefits Jurisdiction over Disciplinary Actions of OFW’s Liability of Local Recruitment Agency and Foreign Principal Entities Authorized to Engage in Recruitment and Placement Country Team Approach

2. Effect of Absence of Consideration

- People vs Piedra

3. Illegal Recruitment

Definition Elements of Illegal Recruitment Economic Sabotage Prescriptive Period for Illegal Recruitment and Economic Sabotage Liabilities (Civil, Criminal, and Administrative)

- People vs BULI-E- People vs Baytic- People vs Corpus- People vs Crispin Billaber- People vs Flor Gutierrez- People vs Ramon Dujua- People vs Leticia Sagayaga- People vs Mario Alzona- Rodolfo vs People

B. WAGES

1. Basic Concept and Principles

Characteristics of Wages Wage vs Salary Non-Diminution of Benefits

- TSPIC Corp. vs TSPIC Employees Union- Millares vs NLRC- Int’l School Alliance of Educators vs Quisumbing- Aklan Electric Cooperative vs NLRC

Methods of Fixing Compensation

a. Time Spentb. Commissionc. Task

2. Facilities and Supplements

- Mabeza vs NLRC- Cebu Autobus Co. vs United Cebu Autobus Employees Assoc.- State Marine Cooperation vs Cebu Seamen’s Assoc. Inc.- Mayon Hotel & Restaurant vs Adana

3. Procedure in Fixing the Minimum Wage

Regionalized (through RTWPB) vs Legislated Wage Fixing Factors in Determination of Minimum Wage Fixing Wage Order and Appeal Effectivity of Wage Order

- Jaguar Security & Investigation Agency vs Sales

4. Wage Distortion

Definition Elements of Wage Distortion

How to Resolve Wage Distortion (Organized and Unorganized Establishments)

- Prubankers Assoc. vs Prudential Bank- Bankard Employees Union vs NLRC- P.I. Mfg. Inc. vs PIMSFA- TSPIC Corp. vs TSPIC-EU- Metrobank Inc. vs NWPC- Norkis Free & Independent Workers Union vs Norkis Trading Co.

5. Exemption from Minimum Wage Law

Art. 98 Labor Code NWPC Guidelines No. 01 Series of 1996

- RCPI vs NLRC- Joy Brothers Inc. vs NWPC

6. Wages

Form of Payment- Art. 102 Labor Code

• ATM Guidelines- Labor Advisory – Nov. 25, 1996

• Payment by Check or Money Order- Sec. 2, Rule III, IRR

• Payment Through a Bank

Place of Payment Time of Payment Whom to Pay? Valid Deductions Prohibitions Regarding Wages Penalty for Non-Compliance of Wage Order Allowances Tips Bonus

- Protacio vs Laya Mananghaya & Co.- Lepanto Ceramics Inc. vs Lepanto Ceramics Employees Assoc.- UST vs SM - UST

7. Administration and Enforcement of Wage Orders (Art. 128-129)

- Balladares vs Peak Ventures Corp.- Jethro Intelligence & Security Corp. vs Sec. of Labor- People’s Broadcasting vs Sec. of Labor- Phil. Hoteliers Inc. vs NUWHRAIN-APL-IUF- Alberta Yanson vs Sec. of Labor

C. CLASSIFICATION OF EMPLOYEES

1. Regular vs Casual Employees

- SMC vs Teodosio- PLDT vs Arceo- ABS-CBN vs Nazareno- Poseidon Fishing vs NLRC- Big AA Mfg. vs Antonio- Paguio vs NLRC

2. Seasonal

- Hacienda Fatima vs NFSWF

3. Project

- Ronilo Sorreda vs Cambridge Electronics Corp.- Willam Uy Construction Corp. vs Trinidad- Rosita Pangilinan vs GMC- C.E. Construction Corp. vs Cloco, Jr.- Abesco vs Ramirez- Samson vs NLRC- ABS-CBN vs Nazareno- Poseidon Fishing vs NLRC- PLDT vs Ylagan- Bahia Shipping Services vs Chua- Virgilio Sapio vs Castro

4. Piece Rate

- Labor Congress of the Phils vs NLRC- Lambo vs NLRC

5. Probationary

- Cebu Marine Beach Resort vs NLRC- Rodin Alcira vs NLRC- Mistubishi Motors vs Chrysler Phils. Labor Union- Dusit Hotel Nikko vs Gatbonton- Mercado vs AMA Computer

D. HOURS OF WORK

1. Hours of Work Defined

Principles and Concepts

- Navarro vs P.V. Pajarillo Liner Inc.

2. Rest Period3. Meal Break

- PAL vs NLRC

4. Workweek (Case of Hospital Personnel, Art. 83)5. Overtime Pay

Performed in an Ordinary Day Performed on a Rest Day or on a Special Day Performed on a Rest Day which falls on a Special Day

Performed overtime work on a Regular Day Performed on a Rest Day which falls on a Regular Holiday

- Damasco vs NLRC

Circumstances when an employee will be compelled to render overtime and consequences of refusal

6. Premium Pay

Premium pay on a Rest Day Work Premium on Sunday when it is the Employee’s Rest Day Premium Pay on Sunday’s and Holidays when Employee has no Regular Workdays and No Scheduled Regular Rest Day Premium Pay for work performed on Special Holidays (now Special Days) which fall on an Employee’s Scheduled Rest Day Premium Pay for work performed during Special Day

7. Holiday Pay

Definition Eleven(11) Regular Holidays and Two (2) Special Days under R.A. 9177 (11/13/02) Application of Principle of “No Work, No Pay” Effects of Absences during successive Regular Holidays Rule in case Two(2) Regular Holidays falling on the same day.

- Asian Transmission Corp. vs CA

Application of Muslim Holiday to Non-Muslims

- SMC vs CA- Trans-Asia Employees Assoc. vs NLRC- Arellano Univ. EE’s and Workers Union vs CA

8. Service Incentive Leave

- Imbuido vs NLRC- Integrated Contractor & Plumbing Works Inc. vs NLRC- Auto Bus Transport System Inc. vs Bautista- ARCO Metal Products vs Samahan ng Manggagawa sa ARCO

9. Night-Shift Pay

Where Night Shift (10pm to 6am) Work is Regular Work Where Night Shift (10pm to 6am) Work is Overtime Work

10.13th Month Pay

Who are entitled to 13th Month Pay?

- Clarion Printing House Inc. vs NLRC- JPL Mktg. Promotions vs CA- PAL vs PALEA

Employers exempted from 13th Month Pay Law Tax Exemption

The phrase “Its Equivalent” in the 13th Month Pay Law

RELEVANT CASE:

- Sevilla Trading Co. vs A.V.A. Tomas E. Semana

11.Service Charges12.Exemptions

- Penaranda vs Baganga Plywood Corp.

E. JOB CONTRACTING AND LABOR-ONLY CONTRACTING

1. Art. 1062. Art. 109

Legitimate Job Contracting

- Aliviado vs Procter & Gamble Phils., Inc.- Singo vs Shangri-La’s Mactan Island Resort

Labor-Only Contracting, Effects and DOLE D.O. No. 18-02 Series of 2002

- Coca-Cola Bottlers vs Agito- Coca-Cola Bottlers vs Dela Cruz- South Davao Dev’t. vs Gamo- Iligan Cement Corp. vs IEWU-SPFL- Mandaue Galleon Trade Inc. vs Andales

3. In-House Agency (Sec. 6, DOLE D.O. No. 18-02 Series of 2002)

RELEVANT CASES:

- Filipinas vs NLRC- Lapanday vs CA- Security & Credit Investigation vs NLRC- Esparwa Security & Janitorial Services Inc. vs Liceo De Cagayan Univ.- Acevedo vs Advanstar Co. Inc.

F. PREFERENCE OF WAGES

1. In case of Bankruptcy or in Judicial Proceedings (Art. 110 Labor Code)

- DBP vs Sec. of Labor- DBP vs NLRC

2. Rehabilitation, Receivership on Monetary Claims of Workers; Effects

- DOLE vs Maceda- Tiangco vs Uniwide Sales Warehouse Club Inc.

G. APPEARANCE OF LAWYERS AND NON-LAWYERS IN LABOR CASES

H. SPECIAL TYPES OF WORKERS

1. Apprentices

What is an apprenticeship agreement? Who is an apprentice? Wage of an apprentice Qualifications of an apprentice Limitations in hiring of an apprentice Regularization of an apprentice

2. Handicaps (R.A. 7277)

Definition of Terms: Handicap, disabled and impaired Handicapped worker and His/Her rights (Art. 80 – 81 Labor Code) Handicapped vs Disabled Employees

3. Learners

Who is a learner? Requisites in hiring a learner Wage of a learner

4. Women Workers

Art. 130 (Nightwork Prohibition) Exceptions to Nightwork Prohibition Required facilities for women Acts of Discrimination against women prohibited under R.A. 6725

5. Student Workers

R.A. 7323 Sec. 14, Rule X, Book 3, IRR Employer-Employee Relationship

6. Domestic or Household Service Workers

Art. 302 of the Civil Code Art. 143 Labor Code R.A. 7655 Rights of a Househelper (Wage, SSS, Art. 145, 147, 148, 150 Labor Code and Art. 1694, 1698 Civil Code) Employment of Minor as Househelper

7. Alien Employees

Requisites in Hiring Alien Employees Art. 40, 41, 42 of the Labor Code Limitations in hiring of alien employees

I. QUITCLAIMS

- Rizada vs NLRC

- Lambo vs NLRC- C & A Construction Co., Inc. vs NLRC- Malinaw vs NLRC- PNCC vs NLRC- Phil. Carpet Exporters Assoc. vs PCMC- ACD Investigation Security Agency vs Daquera- R & E Transport Inc. vs Latag- Magbanua vs UY- Catholic Vicariate vs Sto. Tomas

J. SECURITY OF TENURE

1. Scope

- PLDT vs Tolentino- Fujitsu vs CA- Condo Suite Club Travel Inc. vs NLRC

2. Constructive Dismissal vs Illegal Dismissal

- Fernando Go vs CA- Unicorn Safety Glass Inc. vs Basarte- Artiaga vs Siliman University- Merck Sharp and Dohme vs Robles- Penaflor vs Outdoor Clothing Mfg. Corp.

3. Preventive Suspension (Sec. 8-9, Rule 23, Book V, IRR)

Grounds Duration Extension

- JRS Business Corp. vs NLRC- Gandara Supply vs NLRC- Atlas Fertilizer Corp. vs NLRC- Chona Torres vs NLRC

K. TERMINATION OF EMPLOYMENT

1. Requisites for a Valid Dismissal (Sec. 1, Art. II, Constitution; Art. 277(b) Labor Code)

a. Substantial Evidence

- Salvador vs Phil. Mining Services Corp.- Sevillana vs I.T. Int’s Corp- Millares vs PLDT- Philtread Tire & Rubber Corp. vs Alberto Vicente

b. Due Process (Notice Requirement)

- Shoppes Manila Inc. vs NLRC- Valiao vs CA- King of Kings Transport vs Mamac- Uniwide Sales Warehouse Club vs NLRC- Placido vs NLRC- Technol Eight Phils. Corp. vs NLRC- Oscar Garcia vs NLRC- Bacolod-Talisay Realty & Dev’t Corp. vs Dela Cruz

c. Burden of Proof

- Mantle Trading Services Inc. vs NLRC- Phil. Veterans Bank vs NLRC

d. Principle of Discretionary Justice

- Almira vs BF Goodrich- VH Mfg. Inc. vs NLRC- Tipteo vs CA

2. Just Causes for Termination of Employment (Art. 282 Labor Code)

a. Serious Misconduct or Willful Disobedience

- Oscar Garcia vs Malayan Insurance- Bughaw vs Treasure Island- Citibank vs NLRC- Tomada Sr. vs RFM Corp- Reno Foods Inc. vs NLM-Katipunan- PLDT vs Berbano- Plantation Bay Resort vs Dubrico- Baron vs NLRC

b. Gross and Habitual Neglect

- Tres Reyes vs Maxim’s Tea House- Golden Thread Knitting vs NLRC- Jo vs NLRC- Icawat vs NLRC- R. Transport Corp. vs Ejandra- Union Motor Corp. vs NLRC- RP Dinglasan Construction Inc. vs Atienza- Cosmos Bottling Corp. vs Nagrama

c. Fraud or Willful Breach of Trust/Loss of Confidence

- Nokom vs NLRC- Delos Santos vs NLRC- PLDT vs Tolentino- Charles Ramos vs CA- Adelino Felix vs NLRC- Rolando Aromin vs NLRC

d. Commission of a Crime against Employere. Other Analogous Cases

- Cathedral School of Technology vs NLRC- PT&T vs NLRC

3. Authorized Causes (Art. 283 Labor Code)

a. Installation of Labor Saving Devices

- Asian Alchohol Corp. vs NLRC- Dole Phils. Vs NLRC- Serrano vs NLRC

b. Redundancy: Requisites

- Golden Thread Knitting vs NLRC- Witshire File Co. Inc. vs NLRC- Dole Phils. vs NLRC- Bonifacio Asufrin vs CA

c. Retrenchment to Prevent Losses

- EMCO Plywood Corp. vs Ablegas- PLDT vs NLRC- Cajucom VII vs TPI Phils. Cement Corp.- Manatad vs PT&T- Brizuela vs Dingle- Anabe vs Asian Const.- Hotel Enterprises of the Phils. Inc. vs SAMASAH-NUWHRAIN- Mendros vs Mitsubishi Motors Phils. Corp.- FASAP vs PAL- Talam vs NLRC

d. Closure or Cessation of Operation due to Serious Business Losses

- North Davao Mining vs NLRC- Cama vs Joni’s Food Services Inc.- CBL Transit Inc. vs NLRC- Nasipit Lumber Co. vs NLRC- Mandaue Dinhow Dimsum House vs NLRC- Solidbank Corp. vs NLRC

e. Criteria in Termination of Employees under Authorized Causes (except Closure)

- Maya Farms vs NLRC- Capitol Wireless vs Confessor

f. Procedural Requirement under Art. 283 Labor Code

- Sec. 2, Rule 23, Book V, IRR- Twin Notice Requirement

4. Disease (Art. 284 Labor Code)

- Cruz vs NLRC- ATCI Overseas Corp. vs CA

5. Retirement

- Divina Lopez vs Nat’l Steel Corp.- R&E Transport vs Latag- Eastern Shippin Lines Inc. vs Antonio- Kimberly-Clark Phils. Inc. vs Dimayuga- Januaria Rivera vs United Laboratories Inc.

6. Resignation (Art. 285 Labor Code)

- Alfaro vs CA- Azcor Mfg. Inc. vs NLRC- Mobile Protective & Detective Agency vs Ompad

L. CONSEQUENCES OF ILLEGAL DISMISSAL

1. Reinstatement (Art. 279 Labor Code)

1. Nature

- Cabigting vs San Miguel Foods Inc.- Dumago vs PAL

2. Instances when Reinstatement is not Possible

- Manila Diamond Hotel EU vs CA- Golden Ace Builders vs Talde

2. Backwages

- Jenny Agabon vs NLRC- Chronicles Securities Corp. vs NLRC- Phil. Journalist Inc. vs Mosqueda- Mitsubishi Motors Phils. Corp. vs Chrysler Phils Labor Union- Sime Darby Pilipinas Inc. vs Arguilla- Javellana, Jr. vs Belen- Javellana, Jr. vs Javellana Farms Inc.- Fe La Rosa vs Ambasador Hotel

DAMAGES

- Colegio de San Juan vs Villas- Cruz vs NLRC- Mayon & Hotel Restaurant- Phil. Employ Services & Resources Inc. vs Paramlo- Armando David vs Nat’l Fed. Of Labor Union- Virgilio Sapio vs Undaloc Construction- Celebes Japan Foods Corp. vs Yermo- Bernardo Jose, Jr. vs Michaelmar Phils. Inc.- Genesis Transport Services Inc. vs UMMGT- Hilton Heavy Equipment Corp. vs Ananias Dy

3. Separation Pay

- PLDT vs NLRC(Discerning Compassion Doctrine)

- PCI Bank vs Abad- Phil. Commercial Int’l Bank vs Abad- Diversified Sec. Inc. vs Alicia Bautista- Sagrasso Construction & Dev’t Corp. vs NLRC

4. Attorney’s Fees (Art. 111 Labor Code)

M.PRESCRIPTIVE PERIOD

1. For Illegal Dismissal (Art. 1146 Civil Code) - 4 yrs from Cause of Action Accrued2. Unfair Labor Practice - 1 yr from Cause of Action Accrued3. Money Claims - 3 yrs from Cause of Action Accrued

- Kar Asia Inc. vs Corona

- Texon Mfg. vs Millena