PRE- WEEKN O TES O N TH E201 3BAR EX AMI NATI O N I NLABO R LA W By: Prof.JoselitoGuianan Chan (These Notes,consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law” ) ======================================================== P ARTO NE FUNDAMENTAL PRINCIPLES AND POLICIES I. CONSTITUTIONAL PROVISI ONS. Out of the several topics under Fundamental Principles and Policies, the following provisions should be given primordial importance: ARTICLII !CLARATION O" PRINCIPLS AN! STATPOLICIS ST A TE POL ICI ESSe# tion $. T he State shal l %ro&ote a 'ust an( (yna &i# so# ial or(er tha t )ill ensure the %ro s%er ity an( in(e%en(en#e of the nation an( free the %eo%le fro& %o*erty throu+h %oli#ies that %ro*i(e a(e,uate so#ial ser*i#es- %ro&ote full e&%loy&ent- a risin+ stan(ar( of li*in+- an( an i&%ro*e( ,uality of life for all. Se#tion /. The State shall %ro&ote so#ial 'usti#e in all %hases of national (e*elo%&ent. Se#tion 0. The State affir&s la1or as a %ri&ary so#ial e#ono&i# for#e. It shall %rote#t the ri+hts of )or2ers an( %ro&ote their )elfare. ARTICLIII BILL O" RIG3TS Se#tion . No %erson shall 1e (e%ri*e( of life- li1erty- or %ro%erty )ithout (ue %ro#ess of la)- nor shall any %erson 1e (enie( the e,ual %rote#tion of the la)s. 4NOT APPLICABLTO LABOR CASS5. Se#tion 6. No la) shall 1e %asse( a1ri(+in+ the free(o& of s%ee#h- of e7%ression- or of the %ress- or the ri+ht ofthe %eo%le %ea# ea1l y to asse &1le an( %eti tion the +o*e rn&e nt for re(ress of +rie *an# es. 4APPLI CABLTO PIC8TING5. Sec tio n 7. Th e right of the people to inf ormatio n on mat ter s of publ ic conc ern shal l be rec ogni zed . Ac ces s to official recordsand to documents and papers pertaining to official actstransactionsor decisionsas !ell as to go" ernm ent rese arch data used as basi s for poli c# de"elo pmen tsha ll be aff orded the cit izen sub$ ect to such limitations as ma# be pro"ided b# la!.4VR9 IPOR T ANT AS T3I S IS N;L9 A!!! IN T3</= BAR >A S9LLABUS5. Se#tion 0. The ri+ht of the %eo%le- in#lu(in+ those e&%loye( in the %u1li# an( %ri*ate se#tors- to for& unions- asso#iations- or so#ieties for %ur%oses not #ontrary to la) shall not 1e a1ri(+e(. Sec tio n %&. ' o la! impair ing the obli gati on of cont rac ts sha ll be pass ed. 4VR9 IPORT ANT AS T3IS IS N;L 9 A!!! IN T3</= BAR >AS9LLABUS5. Sec tio n %(. A ll pe rson s sha ll ha "e the rig ht to a sp eed# disp osit ion o f the ir ca ses be for e all $ udic ial )uas i*$ udic ialoradministrati"e bodies. 4VR9 IPORTANT AS T3IS IS N;L9 A!!! IN T3</= BAR >AS9LLABUS5. Sec tion 18. (2) No inv olu ntar y serv itu de in any for m sha ll exi st e xcep t as a p uni shment for a crime whereof the party shall have been duly convicted. (VERY IMPORTANT AS THIS IS NEWLY ADDED IN THE 2013 BAR EXAM SYLLABUS). ARTICL>III LA+ O, 4VR9 IPORTANT AS T3IS IS T3SO?CALL! PROTCTION?TO?LABOR CLAUSIN T3CONSTITUTION5 Se#tion =. The State shall affor( full %rote#tion to la1or- lo#al an( o*erseas- or+ani@e( an( unor+ani@e(- an( %ro&ote full e&%loy&ent an( e,uality of e&%loy&ent o%%ortunities for all. It shall +uarantee the ri+hts of all )or2ers to self?or+ani@ation- #olle#ti*e 1ar+ainin+ an( ne+otiations- an(
%ea#eful #on#erte( a#ti*ities- in#lu(in+ the ri+ht to stri2e in a##or(an#e )ith la). They shall 1e entitle( to
se#urity of tenure- hu&ane #on(itions of )or2- an( a li*in+ )a+e. They shall also %arti#i%ate in %oli#y an(
(e#ision?&a2in+ %ro#esses affe#tin+ their ri+hts an( 1enefits as &ay 1e %ro*i(e( 1y la).
The State shall %ro&ote the %rin#i%le of share( res%onsi1ility 1et)een )or2ers an( e&%loyers an( the
%referential use of *oluntary &o(es in settlin+ (is%utes- in#lu(in+ #on#iliation- an( shall enfor#e their &utual
#o&%lian#e there)ith to foster in(ustrial %ea#e.
The State shall re+ulate the relations 1et)een )or2ers an( e&%loyers- re#o+ni@in+ the ri+ht of la1or to its 'ust
share in the fruits of %ro(u#tion an( the ri+ht of enter%rises to reasona1le returns to in*est&ents- an( to
e7%ansion an( +ro)th.
-EALT-
Section %. The State shall establish a special agenc# for disabled person for their rehabilitation self*de"elopment
and self*reliance and their integration into the mainstream of societ#. 4VR9 IPORTANT AS T3IS IS N;L9 A!!!
IN T3 </= BAR >A S9LLABUS5.
Please take note of the following enabling laws of this constitutional provision:
Re%u1li# A#t No. < [March 24, !!2", otherwise known as the “Magna Carta for Disabled Persons,” providing for
the rehabilitation, self#development and self#reliance of disabled persons and their integration into the mainstream of
societ$ and for other purposes% &ubse'uentl$,&ection 4 of Re%u1li# A#t No. $66< [effective (pril )*, 2**+" changed the
title of epublic (ct -o% +2++ to read as the “Magna Carta for Persons with Disability,” and all references in the said
law to “disabled persons” were likewise amended to read as “persons with disability.”
/O0E'
Se#tion 6. The State shall %rote#t )or2in+ )o&en 1y %ro*i(in+ safe an( healthful )or2in+ #on(itions- ta2in+
into a##ount their&aternal fun#tions- an( su#h fa#ilities an( o%%ortunities that )ill enhan#e their )elfare an(
ena1le the& to reali@e their full %otential in the ser*i#e of the nation.Please take note of the following enabling laws of this constitutional provision:
o R.A. No. $/ ? a+na Carta of ;o&en 4Au+ust 6- <//$5
o C!A; LA; .onvention on the /limination of (ll Forms of 0iscrimination (gainst 1omen
II. CONSTITUTIONAL PROVISIONS NOT APPLICABL TO LABOR CASS.
he following constitutional rights and precepts cannot be invoked in labor cases, particularl$ in administrative investigationsleading to the termination of emplo$ment, because the$ can onl$ be asserted against the state3government and not against a private part$
the emplo$er:
a% Constitutional !ue Pro#ess since what applies is &tatutor$ 0ue Process under (rticle 2++5b6 of the 7abor .ode%[" b% ight to /'ual Protection of the 7aws%[2"
c% ight to .ounsel%[)"
d% ight (gainst &elf#8ncrimination%[4"
e% ight (gainst 9nreasonable &earches and &eiures%[;"III. CIVIL CO! PROVISIONS.
Article %1. E"er# person must in the e2ercise of his rights and in the performance of his duties act !ith
$ustice gi"e e"er#one his due and obser"e honest# and good faith.4VR9 IPORTANT AS T3IS IS N;L9 A!!!
IN T3 </= BAR >A S9LLABUS5.
Arti#le //. The relations 1et)een #a%ital an( la1or are NOT &erely #ontra#tual. They are so i&%resse(
)ith %u1li# interestthatla1or #ontra#ts &ust yiel( to the #o&&on +oo(. Therefore- su#h #ontra#ts are
su1'e#t to the s%e#ial la)s on la1or unions- #olle#ti*e 1ar+ainin+- stri2es an( lo#2outs- #lose( sho%- )a+es-
)or2in+ #on(itions- hours of la1or an( si&ilar su1'e#ts.
Article %7&3. In case of doubt all labor legislation and all labor contracts shall be construed in fa"or of the safet# and decent li"ing for the laborer. 4VR9 IPORTANT AS T3IS IS N;L9 A!!! IN T3 </= BAR >A
Article %((. Polic#. * The State shall promote and de"elop a ta2*e2empt emplo#ees6 compensation
program !hereb# emplo#ees and their dependents in the e"ent of work-connected disability or death ma# promptl#
secure ade)uate income benefit andmedical related benefits. 4VR9 IPORTANT AS T3IS IS N;L9 A!!! IN T3
</= BAR >A S9LLABUS5.
8n connection with this provision, please take note of the following:
a. The Emplo#ees6 Compensation Program ECP8.
The Employees’ Compensation Program (ECP) mentioned in Article 166 of the Labor Code is designed to provide pblic and
private sector employees and their dependents !ith income and other benefits in the event of a !or"#
connectedinjury, sickness$ disability or death% &t assres !or"ers of total protection throgh the provision of a comprehensive benefit
pac"age encompassing preventive occpational safety and health aspects$ crative or medical and compensatory grant$ and rehabilitation
of occpationally disabled !or"ers%
b. Attributes of the ECP.
he /mplo$ees< .ompensation Program 5/.P6 is characteried as follows:
% 8t is not sub=ect to ta>?2% 8t is designed to ensure promptitude in cases of work#connected disabilit$ or death, in the award to emplo$ees and their dependents of
ade'uate income benefits and medical or related benefits?)% 8t is funded b$ monthl$ contributions of all covered emplo$ers?
4%8t is compulsor$ on all emplo$ers and their emplo$ees whose age is not over si>t$ 5@*6 $ears old?
;%8t provides for benefits which are e>clusive and in place of all other liabilities of the emplo$er to the emplo$ee, his dependents or an$oneotherwise entitled to receive damages on behalf of the emplo$ee or his dependents? and
@%8t has its own ad=udicator$ machiner$ with original and e>clusive =urisdiction to settle an$ dispute with respect to coverage, entitlement to benefits, collection and pa$ment of contributions and penalties thereon, or an$ other matter related thereto, independent of other tribunals,e>cept the &upreme .ourt 5and the .ourt of (ppeals per Revised d!inistrative Circ"lar #o. $-%&6%[@"
c. Ad"antages and disad"antages.
he following advantages ma$ be cited:%he coverage has been e>panded to include emplo$ers with at least one emplo$ee and irrespective of the t$pe or nature of business or
amount of business capitaliation%
2%he processing of claims has been simplified with the integration of compensation benefits with those of the A&8& or &&&, as the case ma$ be%
)%he rates of income benefits and medical, rehabilitation and other services have been significantl$ increased%
4%he procedure for settlement of claims has been simplified% edious and cumbersome proceedings have been eliminated%;%(ttorne$<s fees and costs of legal services have been eliminated% 'rticle ()% *()+, abor Code.
d. Compensable contingencies under the ECP.
he following contingencies are compensable under the /.P:% 1ork#connected in/"ry or accident ?
2% 1ork#connected sickness? and
)% (n$ disability or death resulting from an$ work#connected in=ur$ or accident or work#connected sickness%
Arti#le <FF. E2clusi"e bargaining representation and !or9ers6 participation in polic# and decision*ma9ing.
The la1or or+ani@ation (esi+nate( or sele#te( 1y the &a'ority of the e&%loyees in an a%%ro%riate
#olle#ti*e 1ar+ainin+ unit shall 1e the e7#lusi*e re%resentati*e of the e&%loyees in su#h unit for the
%ur%ose of #olle#ti*e 1ar+ainin+. 3o)e*er- an in(i*i(ual e&%loyee or +rou% of e&%loyees shall ha*e the
ri+ht at any ti&e to %resent +rie*an#es to their e&%loyer.
Any %ro*ision of la) to the #ontrary not)ithstan(in+- )or2ers shall ha*e the ri+ht- su1'e#t to su#h rules
an( re+ulations as the Se#retary of La1or an( &%loy&ent &ay %ro&ul+ate- to %arti#i%ate in %oli#y an(
(e#ision?&a2in+ %ro#esses of the esta1lish&ent)here they are e&%loye( insofar as sai( %ro#esses
)ill (ire#tly affe#t their ri+hts- 1enefits an( )elfare. "or this %ur%ose- )or2ers an( e&%loyers &ay for&
la1or?&ana+e&ent #oun#ils: Pro"ided That the re%resentati*es of the )or2ers in su#h la1or?&ana+e&ent#oun#ils shall 1e ele#te( 1y at least the &a'ority of all e&%loyees in sai( esta1lish&ent.
Arti#le <. 0iscellaneous Pro"isions. 4VR9 IPORTANT AS T3IS IS N;L9 A!!! IN T3 </= BAR >A
S9LLABUS T3IS IS T3 STATUTOR9 PROC!URAL !U PROCSS ;3IC3 S3OUL! APPL9 IN CAS O" !ISISSAL O"
PLO9S5.
b8 Sub$ect to the constitutional right of !or9ers to securit# of tenure and their right to be protected against
dismissal e2cept for a $ust and authorized cause and !ithout pre$udice to the re)uirement of notice under
Article 3: of this Code the emplo#er shall furnish the !or9er !hose emplo#ment is sought to be
terminated a !ritten notice containing a statement of the causesforterminationandshall afford thelatter
ample opportunit# to be heard and to defend himself !ith the assistance of his representati"e if he so
desires in accordance !ith compan# rules and regulations promulgated pursuant to guidelines set b# the
I. ILLGAL RCRUITNT AS !"IN! UN!R R.A. NO. //<< DARC3 0- <//E.DE
Ille+al re#ruit&ent means an$ act of canvassing, enlisting, contracting, transporting, utiliing, hiring, or procuring workers and
includes referring, contract services, promising or advertising for emplo$ment abroad, )hether for %rofit or not, when undertaken
b$ non?li#ensee or non?hol(er of authority contemplated under (rticle )5f6 of the 7abor .ode: Provided, hat an$ such non#licensee
or non#holder who, in an$ manner, offers or promises for a fee emplo$ment abroad to two or more persons shall be deemed so engaged%8t shall likewise include the following acts, )hether #o&&itte( 1y any %erson- )hether a non?li#ensee- non?hol(er- li#ensee or
hol(er of authority:
5a6 o charge or accept directl$ or indirectl$ an$ amount +reater than that specified in the s#he(ule of allo)a1le
fees prescribed b$ the &ecretar$ of 7abor and /mplo$ment, or to &a2e a )or2er %ay or a#2no)le(+e any a&ount
+reater than that a#tually re#ei*e( 1y hi& as a loan or a(*an#e?
5b6 o furnish or publish an$ false noti#e or infor&ation or (o#u&ent in relation to recruitment or emplo$ment?5c6 o give an$ false noti#e- testi&ony- infor&ation or (o#u&ent or #o&&it any a#t of &isre%resentation for the purpose
of securing ali#ense or authority under the 7abor .ode, or for the purpose of documenting hired workers with the
PO/(, which include the act of reprocessing workers through a =ob order that pertains to non?e7istent )or2 , )or2
(ifferent fro& the a#tual o*erseas )or2- or )or2 )ith a (ifferent e&%loyer )hether re+istere( or not )ith the
POA?
5d6 o include or attempt to induce a worker alread$ emplo$ed to ,uit his e&%loy&ent in or(er to offer hi& another unless
the transfer is designed to liberate a worker from oppressive terms and conditions of emplo$ment?5e6 o influence or attempt to influence an$ person or entit$ not to e&%loy any )or2er who has not applied for emplo$ment
through his agenc$ or who has formed, =oined or supported, or has contacted or is supported b$ an$ union or workersB
organiation?
5f6 o engage in the recruitment or placement of workers in 'o1s har&ful to %u1li# health or &orality or to the (i+nity of theepublic of the Philippines?
5g6 o obstruct or attempt to obstruct ins%e#tion b$ the &ecretar$ of 7abor and /mplo$ment or b$ his dul$ authoriedrepresentative?
5h6o fail to submit re%orts on the status of e&%loy&ent- %la#e&ent *a#an#ies- re&ittan#e of forei+n e7#han+e earnin+s-
se%aration fro& 'o1s- (e%artures an( su#h other &atters or information as ma$ be re'uired b$ the &ecretar$ of 7abor
and /mplo$ment?
5i6 o su1stitute or alter to the pre=udice of the worker, e&%loy&ent #ontra#ts approved and verified b$ the 0O7/ from thetime of actual signing thereof b$ the parties up to and including the period of the e>piration of the same )ithout the
a%%ro*al of the 0O7/?
5=6 "or an offi#er or a+ent of a re#ruit&ent or %la#e&ent a+en#y to 1e#o&e an offi#er or &e&1er of the Boar( of any
#or%oration en+a+e( in tra*el a+en#y or to 1e en+a+e( (ire#tly or in(ire#tly in the &ana+e&ent of tra*el a+en#y?5k6 o )ithhol( or (eny tra*el (o#u&ents from applicant workers 1efore (e%arture for &onetary or finan#ial
#onsi(erations, or for an$ other reasons, other than those authoried under the 7abor .ode and its implementing rules
and regulations?
5l6 "ailure to a#tually (e%loy a #ontra#te( )or2er )ithout *ali( reason as determined b$ the 0O7/?5m6"ailure to rei&1urse e7%enses incurred b$ the worker in connection with his documentation and processing for purposes
of deplo$ment, in cases )here the (e%loy&ent (oes not a#tually ta2e %la#e )ithout the )or2ers fault% Ille+al
re#ruit&ent )hen #o&&itte( 1y a syn(i#ate or in lar+e s#ale shall 1e #onsi(ere( an offense in*ol*in+ e#ono&i#
sa1ota+e? and5n6o allow a non?"ili%ino #iti@en to hea( or &ana+e a li#ense( re#ruit&entH&annin+ a+en#y%
II. OT3R PRO3IBIT! ACTS UN!R R.A. NO. //<<.D<E
8t shall also be unlawful for an$ person or entit$ to commit the following prohibited acts:
56 Arant a loan to an overseas Filipino worker with interest e7#ee(in+ ei+ht %er#ent 405 %er annu&, which will be usedfor %ay&ent of le+al an( allo)a1le %la#e&ent fees and make the migrant worker issue, either personall$ or through a
guarantor or accommodation part$, %ost?(ate( #he#2s in relation to the said loan?
526 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re,uire( to a*ail of a loan
only fro& s%e#ifi#ally (esi+nate( institutions- entities or %ersons?
5)6 Refuse to #on(one or rene+otiate a loan incurred b$ an overseas Filipino worker after the latterBs emplo$ment contract has
been%re&aturely ter&inate( through no fault of his3her own?
546 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re'uired to undergo health
e7a&inations only fro& s%e#ifi#ally (esi+nate( &e(i#al #lini#s- institutions- entities or %ersons, e7#e%t in the case of
a seafarer whose &e(i#al e7a&ination #ost is shoul(ere( 1y the %rin#i%alHshi%o)ner?
5;6 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re'uired to undergo trainin+-
se&inar- instru#tion or s#hoolin+ of any 2in( only fro& s%e#ifi#ally (esi+nate( institutions- entities or
%ersons- e7#e%t for recommendator$ trainings mandated b$ principals3shipowners where the latter shoulder the cost of
such trainings?
5@6 For a sus%en(e( recruitment3manning agenc$ to en+a+e in any 2in( of re#ruit&ent a#ti*ity in#lu(in+ the %ro#essin+ of
%en(in+ )or2ers a%%li#ations? and5+6 For a recruitment3manning agenc$ or a foreign principal3emplo$er to %ass on the overseas Filipino worker or (e(u#t
fro& his3her salar$ the pa$ment of the #ost of insuran#e fees- %re&iu& or other insuran#e relate( #har+es, as
provided under the compulsor$ workerBs insurance coverage%III. LNTS O" SIPL ILLGAL RCRUITNT.
The essential elements of +,-* **/* !&!, !ithot the attendant 'alifying circmstances$ are% he person charged with the crime must have undertaken recruitment and placement activities under (rticle ) [b" or an$ of
the activities enumerated in (rticle )4 of the 7abor .ode, as amended? and2%&aid person does not have a license or authorit$ to do so or more specificall$, that he has not complied with such guidelines,
rules and regulations issued b$ the &ecretar$ of 7abor and /mplo$ment, particularl$ with respect to the securing of license
or authorit$ to recruit and deplo$ workers, either locall$ or overseas%Re#ruit&ent an( %la#e&ent a#ti*ities- (efine(. ? he phrase “recr"it!ent and place!ent” refers to the acts described in
paragraph [b" of (rticle ) of the 7abor .ode, vi0.:
C[b" 1Recr"it!ent and place!ent2 refers to an$ act of canvassing, enlisting, contracting, transporting, utiliing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for emplo$ment, locall$ or abroad, whether for
profit or not:Provided, hat an$ person or entit$ which, in an$ manner, offers or promises for a fee, emplo$ment to two or more persons shall be deemed engaged in recruitment and placement%D
IV.AN9 PRSON- ;3T3R A NON?LICNS- NON?3OL!R- LICNS OR 3OL!R O" AUT3ORIT9 A9 B
3L! LIABL "OR ILLGAL RCRUITNT.
Under R.A. No, 8042, license or authority of the illegal recruiter is immaterial. - Under R.A.No. 8042, the crime of illegal recruitment may be committed by any person, whether a non-licensee, non-holder, licensee or holder of authority .8t is clear that under this law, in or(er to %ro*e ille+al re#ruit&ent- there is no nee( to
esta1lish )hether the a##use( is a li#ensee or hol(er of authority or not 1e#ause it is no lon+er an ele&ent of the #ri&e.
V. ILLGAL RCRUITNT- ;3N CONSI!R! CONOIC SABOTAG.
8llegal recruitment is considered a crime involving economic sabotage when the commission thereof is attended b$ the following'ualif$ing circumstances:
%1hen committed 1y a syn(i#ate? or 2%1hen committed in lar+e s#ale%VI. ILLGAL RCRUITNT COITT! B9 A S9N!ICAT .
;hen #o&&itte( 1y a syn(i#ate. ? 8llegal recruitment is deemed committed b$ a syndicate if it is carried out b$ a group of
three 5)6 or more persons conspiring or confederating with one another%le&ents of ille+al re#ruit&ent 1y a syn(i#ate. ? he essential elements of the crime of illegal recruitment committed b$ a
s$ndicate are as follows:
%here are at least three 5)6 persons who, conspiring and3or confederating with one another, carried out an$ unlawful or illegal
recruitment and placement activities as defined under (rticle ) [b" or in an$ prohibited activities under (rticle )4 of the
7abor .ode? and2%&aid persons are not licensed or authoried to do so, either locall$ or overseas%
The la! does not re'ire that the syndicate shold recrit more than one (1) person in order to constitte the crime
of illegal recritment by a syndicate% ecritment of one (1) person !old sffice to 'alify the illegal recritment act as
having been committed by a syndicate%VII. ILLGAL RCRUITNT IN LARG SCAL.
;hen #o&&itte( in lar+e s#ale. # 8llegal recruitment is deemed committed in lar+e s#ale if committed against three 5)6 or
more persons individuall$ or as a group%
le&ents of ille+al re#ruit&ent in lar+e s#ale.# he essential elements of illegal recruitment in large scale, as distinguishedfrom simple illegal recruitment, are as follows:
%he accused engages in the recruitment and placement of workers as defined under (rticle ) [b" or in an$ prohibited
activities under (rticle )4 of the 7abor .ode?
2%he accused has not complied with the guidelines issued b$ the &ecretar$ of 7abor and /mplo$ment, particularl$ with respect
to the securing of license or an authorit$ to recruit and deplo$ workers, either locall$ or overseas? and)%he accused commits the same against three 5)6 or more persons, individuall$ or as a group%
!istin+uishe( fro& ille+al re#ruit&ent 1y a syn(i#ate. ? (s distinguished from illegal recruitment committed b$ a s$ndicate,
illegal recruitment in large scale ma$ be committed b$ onl$ one 56 person%1hat is important as 'ualif$ing element is that there should be
at least three 5)6 victims of such illegal recruitment, individuall$ or as a group%The nu&1er of %ersons *i#ti&i@e( is (eter&inati*e of the #ri&e. ? ( conviction for large scale illegal recruitment must be
based on a finding in each case of illegal recruitment of three 5)6 or more persons having been recruited, whether individuall$ or as a
group%Note: ;ailure to pro"e at least persons recruited ma9es the crime a case of simple illegal recruitment.
VIII. A PRSON- "OR T3 SA ACTS- A9 B C3ARG! AN! CONVICT! SPARATL9 "OR T3 CRI O"
ILLGAL RCRUITNT AN! T3 "LON9 O" STA"A.
8n cases where some other crimes or felonies are committed in the process of illegal recruitment, conviction under the 7abor
.ode does not preclude punishment under other statutes%
%7ocal (genc$ is solidaril$ liable with foreign principal%2%&everance of relations between local agent and foreign principal does not affect liabilit$ of local recruiter%
>. T3OR9 O" IPUT! 8NO;L!G.
his theor$ refers to cogniance of a circumstance or fact attributed to a part$ because of its position, or its relationshipwith
or responsibilit$ for another part$%he relationship of the local recruitment3manning agenc$ vis-a-vis its foreign principal is that of agent#principal, the former
being the agent and the latter, the principal% .onse'uentl$, the theory of i&%ute( 2no)le(+e ascribes the knowledge of the agent to the
principal but not the other )ay aroun(%
hus, the violations of the terms and conditions of an e>tension contract, the e>ecution of which the recruiter did not know anddid not consent to, shall not make said recruiter solidaril$ liable for the reason that knowledge b$ his principal of said contract cannot be
. Co*era+e. ? (ll emplo$ees in all establishments, whether operated for profit or not, are covered b$ the law on labor
standards%
<. 7#lu(e( e&%loyees. ? he following are e7#lu(e( from the coverage of the law on labor standards:
a%Aovernment emplo$ees?
b%Managerial emplo$ees?
c%Other officers or members of a managerial staff?d%0omestic servants and persons in the personal service of another?
e%1orkers paid b$ results?
f%-on#agricultural field personnel? andg%Members of the famil$ of the emplo$er%
=. Nor&al hours of )or2. ? he total number of working hours of a worker or emplo$ee shall not e>ceed eight 5E6 hours dail$%
his eight 5E6 hour period is called the nor!al ho"rs of work %
6. O*erti&e )or2 O*erti&e %ay. ? (n$ work in e>cess of eight 5E6 hours is considered o*erti&e work% Overtime
rate: <F # for overtime work on ordinar$ da$s? =/ # for overtime work on rest da$%
F. Co&%resse( )or2 )ee2 ? 8t is an alternative arrangement whereb$ the normal workweek is reduced to less than si> 5@6 da$s
but the total number of normal work hours per week shall remain at fort$#eight 54E6 hours% he normal workda$ is thusincreased to more than eight 5E6 hours without corresponding overtime premium% his concept can be ad=usted accordingl$
in cases where the normal workweek of the firm is five 5;6 da$s%
. eal 1rea2. ? /ver$ emplo$er is re'uired to give his emplo$ees, regardless of se>, not less than one 56 hour 5or @* minutes6
time#off for regular meals% eing time#off, it is not #o&%ensa1le hoursworked%8n this case, the emplo$ee is free to do
an$thing he wants, e>cept to work%8f he is re'uired, however, to work while eating, he should be compensated therefor%
. ;aitin+ ti&e. 1aiting time spent b$ an emplo$ee shall be considered as working time if waiting is an integral part of hiswork or the emplo$ee is re'uired or engaged b$ the emplo$er to wait%
0. Ni+ht )or2. SINC T3IS IS PROVI!! UN!R A N; LA;- R.A. NO. /FDE DJUN <- </E- ; AR
KUOTING T3 NTIR C3APTR INSRT! B9 IT INTO T3 LABOR CO!:
C'-! V
E,-*o$, o N/' Wo!!+
A!&* 145. Coverae. ! T'+ &'-! +'** --*$ o ** -!+o+6 w'o +'** # ,-*o$" o! -!," o! +!" o wo! /'6 except 'o+ ,-*o$" /!&*!6 +o& !+/6 +'/6 ,!, !+-o! "*" 7/o6 "!/ -!o" o o *++ ' +7 (8) &o+&7 'o!+6 &*"/ ' !7* !o,,"/' o 7 o9&*o& ' ,o!/6 o # "!," #$ ' S&!!$ o L#o! " E,-*o$,6 !
A!&* 11. Niht or Schedules.* Bo! !o"&/ wo! +&'"*+ !>!/ ' +!7&+ o /' wo!!+6 ' ,-*o$! +'** &o+* ' wo!!+9 !-!+7+:*#o! o!/;o+ &o&!" o '
"*+ o +&' +&'"*+ " ' o!,+ o o!/;o o /' wo! ' ! #+ "-" o '+#*+', " + -!+o*6 + w** + o 'o&&-o* '*' ,+!+ " +o&* +!7&+ w'&' !!>!". I +#*+',+ ,-*o$/ /' wo!!+6&o+*o +'** -*& !/*!*$.[2
$. Ni+ht Shift !ifferential. ? /ver$ emplo$ee shall be paid a night shift differential of not less than ten percent 5*G6 of his
regular wage for each hour of work performed between ten o<clock in the evening and si> o<clock in the morning%
/.Part?ti&e )or2. ? On the issue of whether the emplo$er should give the part#time emplo$ees concerned onl$ fift$ percent
5;*G6 of the wages and other benefits that the emplo$er ma$ pa$ the workers who will work for four 546 hours a da$, @:**
to *:** in the evening, the compensation in proportion to the time the$ actuall$ rendered work or e'uivalent to onl$ four
546 hours a da$ must be given to part#time workers% his is, however, without pre=udice to an$ individual or collective
agreement or compan$ practice or polic$ that provides higher basis of computation of wages%
.Contra#t for %ie#e )or2 4see Ci*il Co(e5. &ince the s$llabus prescribes the definition to be in accordance with the .ivil
.ode, (rticle 4@+ provides:
C(% 4@+% ( contract for the deliver$ at a certain price of an article which the vendor in the ordinar$ course
of his business manufactures or procures for the general market, whether the same is on hand at the time or not, is acontract of sale, 1ut if the +oo(s are to 1e &anufa#ture( s%e#ially for the #usto&er an( u%on his s%e#ial or(er-
an( not for the +eneral &ar2et- it is a #ontra#t for a %ie#e of )or2.
B. ;AGS.
. ;a+e *s. Salary. ? he term <!age= is used to characterie the compensation paid for manual skilled or unskilled
labor% <Salar#= on the other hand, is used to describe the compensation for higher or superior level of emplo$ment% 8n cases
of e7e#ution- atta#h&ent or +arnish&ent of the compensation of an emplo$ee received from work issued b$ the court tosatisf$ a =udiciall$#determined obligation, a distinction should be made whether such compensation is
considered “wage” or “salary.” 9nder (rticle +*E of the .ivil .ode, if considered a “wage,” the emplo$ee<s
compensation shall not be sub=ect to e>ecution or attachment or garnishment, e2cept for debts incurred for food, shelter,
clothing and medical attendance% 8f deemed a “salary,” such compensation is not e7e&%t from e>ecution or attachment or
garnishment% hus, the salar$, commission and other remuneration received b$ a managerial emplo$ee 5as distinguished
from an ordinar$ worker or laborer6 cannot be considered wages% &alar$ is understood to relate to a position or office, or thecompensation given for official or other service? while wage is the compensation for labor%
<. ini&u& )a+e- (efine(. 8t refers simpl$ to the lowest basic wage rate fi>ed b$ law that an emplo$er can pa$ his workers%
=. ini&u& )a+e settin+. ? 1ith the advent of epublic (ct -o% @+2+, wage fi>ing and determination are no longer done
through .ongress but through the various egional ripartite 1ages and Productivit$ oards 51Ps6 constituted in
ever$ region of the countr$, including autonomous regions as ma$ be created b$ law%
6. ini&u& )a+e of )or2ers %ai( 1y results. ? (ll workers paid b$ results, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the prescribed wage rates per eight 5E6 hours of work a
da$, or a proportion thereof for working less than eight 5E6 hours%
F. ini&u& )a+e of a%%renti#es an( learners. 8t shall in no case be less than sevent$#five percent 5+;G6 of the applicable
statutor$ minimum wage rates%
. ini&u& )a+e of %ersons )ith (isa1ility 4P;!s5. 8t shall NOT be +;G but the full amount of the applicable minimum
wage rates%
. Co&&issions. ? .ommission is the recompense, compensation or reward of an emplo$ee, agent, salesman, e>ecutor, trustee,receiver, factor, broker or bailee, when the same is calculated as a percentage on the amount of his transactions or on the
profit of the principal% Co&&ission earne( &ay or &ay not 1e #onsi(ere( %art of a )a+e or salary depending on the
peculiar circumstances of a case and on the purpose for which the determination is being made% here is no law whichre'uires emplo$ers to pa$ commissions%[)"Once commission is granted, Hthere is no law which prescribes a !ethod for computing commissions% he determination of the amount of commissions is the result of collective bargaining negotiations,
individual emplo$ment contracts or established emplo$er practice%H[4"
0. !e(u#tions fro& )a+es. Per&issi1le (e(u#tions &ay 1e (i*i(e( into t)o:
a. !e(u#tions allo)e( un(er Arti#le =.
56 8n cases where the worker is insured with his consent b$ the emplo$er, and the deduction is to recompense theemplo$er for the amount paid b$ him as premium on the insurance?
526For union dues, in cases where the right of the worker or his union to check#off has been recognied b$ the emplo$er or
authoried in writing b$ the individual worker concerned? and
5)6 8n cases where the emplo$er is authoried b$ law or regulations issued b$ the 0O7/ &ecretar$%1. !e(u#tions allo)e( un(er other %ro*isions of the La1or Co(e an( other la)s.
%0eductions for loss or damage under (rticle 4 of the 7abor .ode?
2% 0eductions made for agenc$ fee from non#union members who accept the benefits under the .( negotiated b$ the
recognied or certified bargaining union% his form of deduction does not re'uire the written authoriation of the non#union member concerned?
)% 9nion service fee?
4% 1hen the deductions are with the written authoriation of the emplo$ee for pa$ment to a third person and the emplo$er
agrees to do so, provided that the latter does not receive an$ pecuniar$ benefit, directl$ or indirectl$, from thetransaction?
;%0eductions for value of meal and other facilities?
@% 0eductions for premiums for &&&, PhilIealth, emplo$ees< compensation and Pag#88A?
+%1ithholding ta> mandated under the -ational 8nternal evenue .ode 5-8.6?E%1ithholding of wages because of the emplo$ee<s debt to the emplo$er which is alread$ due?
!% 0eductions made pursuant to a court =udgment against the worker under circumstances where the wages ma$ be the
sub=ect of attachment or e>ecution but onl$ for debts incurred for food, clothing, shelter and medical attendance?
*% 1hen deductions from wages are ordered b$ the court?%&alar$ deductions of a member of a legall$ established cooperative%
$. Non?(i&inution of 1enefits. (ccording to Justi#e Arturo !. Brion- #urrently the Chair&an of the </= Bar
7a&ination Co&&ittee- (rticle ** is not the proper basis for the invocation of the non#diminution3non#elimination of
benefits principle in his separate concurring opinion in the case of rco Metal Prod"cts, 3nc. v.
4a!ahangng!gaManggagawasa rco Metal-#56 '4MRM-#56, [A%% -o% +*+)4, Ma$ 4, 2**E"% Ieemphasied therein that (rticle ** refers solel$ to the non#diminution of benefits en=o$ed at the ti!e of the pro!"lgation
of the abor Code% Ie thus posited that the correct bases of this principle are the following:
a% />press terms of an emplo$ment agreement?
b%.ompan$ practice which refers to the i!plied terms of an emplo$ment agreement which the emplo$er has freel$,
voluntaril$ and consistentl$ e>tended to its emplo$ees and thus cannot be withdrawn e>cept b$ mutual consent or
c% he .onstitution 5&ection E of (rticle 88 and &ection ) of (rticle J8886? and
d% (rticle 4 of the 7abor .ode%
/. "a#ilities *s. Su%%le&ents. he term “facilities” includes articles or services for the benefit of the emplo$ee or his
famil$ but does not include tools of the trade or articles or services primaril$ for the benefit of the emplo$er or necessar$ to
the conduct of the emplo$er<s business% he$ are items of e>pense necessar$ for the laborer<s and his famil$<s e>istence
and subsistence which form part of the wage and when furnished b$ the emplo$er, are deductible therefrom, since if the$are not so furnished, the laborer would spend and pa$ for them =ust the same%
he term “s"pple!ents” means e>tra remuneration or special privileges or benefits given to or received b$ the laborers
over and above their ordinar$ earnings or wages%
"a#ilities an( su%%le&ents- (istin+uishe(. ? he benefit or privilege given to the emplo$ee which constitutes an e>tra
remuneration over and above his basic or ordinar$ earning or wage, is s"pple!ent ? and when said benefit or privilege is
part of the laborer<s basic wage, it is a facility%(s earlier pointed out, the criterion is not so much with the kind of the benefit or item 5food, lodging, bonus or sick leave6 given but its purpose%hus, free meals supplied b$ the ship operator to
crew members, out of necessit$, cannot be considered as facilities but supplements which could not be reduced having been
given not as part of wages but as a necessar$ matter in the maintenance of the health and efficienc$ of the crew personnel
during the vo$age% Moreover, facilities are deductible from wage but not supplements%
.;a+e (istortion. ? (s defined b$ law and implementing rules, “wage distortion” contemplates a situation where anincrease in prescribed wage rates results in either of the following:
% 7li!ination of the 'uantitative differences in the rates of wages or salaries? or
2%4evere contraction of intentional 'uantitative differences in wage or salar$ rates between and among emplo$ee groups inan establishment as to effectivel$ obliterate the distinctions embodied in such wage structure based on the followingcriteria:
a%skills?
b%lengthofservice?or
c%other logical bases of differentiation%
6 ele&ents of )a+e (istortion. ? he four 546 elements of wage distortion are as follows:
56 (n e>isting hierarch$ of positions with corresponding salar$ rates?526( significant change in the salar$ rate of a lower pa$ class without a concomitant increase in the salar$ rate of a
higher one?
5)6he elimination of the distinction between the two levels? and
546he e>istence of the distortion in the same region of the countr$%
"or&ula to re#tify )a+e (istortion.8n the case of Metropolitan 8ank and 9r"st Co!pany 7!ployees 6nion-6-96CP v. #RC,[A%% -o% *2@)@, &eptember *, !!)", the &upreme .ourt has given its i!pri!at"r to the following formula for
the correction of wage distortion in the pa$ scale structures:
he above formula was held to be =ust and e'uitable%
<. Re#tifi#ation of )a+e (istortion. 1age distortion ma$ be rectified as follows
% In or+ani@e( esta1lish&ents. # he emplo$er and the union should negotiate to correct the distortions%(n$ disputearising from wage distortions should be resolved through the +rie*an#e %ro#e(ure under their .( and, if it remains
unresolved, through*oluntary ar1itration%
2% In unor+ani@e( esta1lish&ents. # he emplo$ers and workers should endeavor to correct such distortions%(n$ dispute
arising therefrom should be settled through the -.M and, if it remains unresolved after ten 5*6 da$s of conciliation,
should be referred to an$ of the 7abor (rbiters of the appropriate branch of the -7.%
=. !i*isor to !eter&ine !aily Rate. Aiven a fi>ed monthl$ rate, the dail$ rate is determined through the following formula:
onthly Rate7<
No. of !ays Consi(ere(M,ui*alent !aily Rate 4!R5
Pai( in a 9ear
Choi#e of fa#torsH(i*isors is a %rero+ati*e of the e&%loyer. ? here is no law which re'uires emplo$ers to use specific
factors in the computation of emplo$ees< benefits and wage deductions due to absences% he choice of factors3divisors is a
prerogative of the emplo$er, the e>ercise of which should not be contrar$ to law, public polic$ or order%1hat wagelegislations specificall$ re'uire is that the emplo$ees be paid on all their actual working da$s and on the twelve 526 regular
holida$s even if unworked%he principles of “no work, no pay” and “e:"al pay for e:"al work” are also generall$
accepted%8t likewise follows that an emplo$er ma$ deduct a proportionate amount from the emplo$ees< wages on account
of their unworked hours3da$s%
C. RST PRIO!S.
. ;ee2ly rest (ay. ? /ver$ emplo$er is re'uired to give his emplo$ees a rest period of not less than twent$#four 5246
consecutive hours after ever$ si> 5@6 consecutive normal work da$s% 1here the weekl$ rest is given to all emplo$ees
simultaneousl$, the emplo$er should make known such rest period b$ means of a written notice posted conspicuousl$ in theworkplace at least one 56 week before it becomes effective% 1here the rest period is not granted to all emplo$ees
simultaneousl$ and collectivel$, the emplo$er shall make known to the emplo$ees their respective schedules of weekl$ rest
da$ through written notices posted conspicuousl$ in the workplace at least one 56 week before the$ become effective%
&%loyees %referen#e of rest (ay 1ase( on reli+ious +roun(s. # he emplo$er is dut$#bound to respect the preference of the emplo$ee if based on religious grounds%
<. &er+en#y rest (ay )or2. he general rule is that no emplo$ee shall be re'uired against his will to work on his scheduled
rest da$ e2cept under the circumstances provided under (rticle !2 of the 7abor .ode where work on such da$ ma$ be
compelled% (n emplo$er ma$, however, re'uire an$ of his emplo$ees to work on his scheduled rest da$ for the duration of
the following emergenc$ and e>ceptional conditions:
a%8ncaseof a#tual or i&%en(in+ e&er+en#ies caused b$ serious a##i(ent- fire- floo(- ty%hoon- earth,ua2e- e%i(e&i# or
other (isaster or #ala&ity, to prevent loss of life and propert$, or in case of force !a/e"re or imminent danger to public
safet$?
b%8n case of ur+ent )or2 to be performed on &a#hineries- e,ui%&ent- or installations- to a*oi( serious loss )hich the
emplo$er would otherwise suffer?
c%8n the event of a1nor&al %ressure of )or2 (ue to s%e#ial #ir#u&stan#es- where the emplo$er cannot ordinaril$ bee>pected to resort to other measures?
d%o prevent serious loss of %erisha1le +oo(s?
e%1here the nature of the )or2 is such that the emplo$ees have to )or2 #ontinuously for se*en 45 (ays in a )ee2 or more, as in the case of the #re) &e&1ers of a *essel to #o&%lete a *oya+e and in other similar cases? and
f%1hen the work is necessar$ to avail of fa*ora1le )eather or en*iron&ental #on(itions where performance or 'ualit$ of
work is dependent thereon%
!. 3OLI!A9 PA9HPRIU PA9.
a. Re+ular holi(ay. ? 3oli(ay %ay refers to the pa$ment of compensation to an emplo$ee during re+ular holi(ays as follows:
% For un)or2e( regular holida$ **G of an emplo$ee<s regular dail$ wage? and
2% For )or2e( regular holida$ 2**G thereof%
1. S%e#ial holi(ay. ? he rule for s%e#ial holi(ay is as follows:
% For un)or2e( special holida$ C-o 1ork, -o Pa$D applies? and
2% For )or2e( special holida$ Additional compensation of )*G of the dail$ rate on top of the basic pa$ or a total of one
hundred thirt$ percent 5)*G6%
#. Pre&iu& %ay refers to the additional compensation re'uired b$ law to be paid for work performed within the regular eight
5E6 hours on non#working da$s, such as rest da$s, regular and special holida$s%
(. Co*era+e e7#e%tions. ? Aenerall$, all emplo$ees are entitled to covered b$ (rticle !4 of the 7abor .ode, as amended, and
its implementing rules, e2cept :
% hose of the government and an$ of the political subdivisions, including government#owned and controlled corporations?
2%hose of retail and service establishments regularl$ emplo$ing less than ten 5*6 workers?
)%0omestic helpers?
4%Persons in the personal service of another?;%Managerial emplo$ees as defined in ook 888 of the 7abor .ode?
@%Field personnel and other emplo$ees whose time and performance is unsupervised b$ the emplo$er?
+%hose who are engaged on task or contract basis or purel$ commission basis?
E% hose who are paid a fi>ed amount for performing work irrespective of the time consumed in the performance thereof?!%Other officers and members of the managerial staff?
*% Members of the famil$ of the emplo$er who are dependent on him for support%
. LAVS.
. Ser*i#e in#enti*e lea*e. ? /ver$ covered emplo$ee who has rendered at least one 56 $ear of service is entitled to a $earl$
service incentive leave of five 5;6 da$s with pa$% he term “at least one year of service” should mean service within twelve
526 months, whether continuous or broken, reckoned from the date the emplo$ee started working, in#lu(in+ authori@e(
9nder the law, all ran2?an(?file emplo$ees are entitled% ana+erial emplo$ees are not entitled thereto% Iowever, there is nothing in
the law which prohibits the grant of ) th month pa$ to managerial emplo$ees%
a. 7#lusionsH7e&%tions fro& #o*era+e. ? he following emplo$ers are not covered b$ P%0% -o% E;, as amended:
% he government and an$ of its political subdivisions, including government#owned and controlled corporations, e>cept
those corporations operating essentiall$ as private subsidiaries of the government%2%/mplo$ers alread$ pa$ing their emplo$ees )th#month pa$ or more in a calendar $ear or its e'uivalent at the time of the
issuance of the evised Auidelines%
)% /mplo$ers of household helpers and persons in the personal service of another in relation to such workers%
4%/mplo$ers of those who are paid on purel$ commission, boundar$, or task basis, and those who are paid a fi>ed amountfor performing a specific work, irrespective of the time consumed in the performance thereof, e;cept where the workers
are paid on piece#rate basis, in which case, the emplo$er shall be covered b$ the Revised <"idelines insofar as such
workers are concerned% 1orkers paid on piece#rate basis shall refer to those who are paid a standard amount for ever$
piece or unit of work produced that is more or less regularl$ replicated without regard to the time spent in producing thesame%
1. A&ount of =th &onth %ay ? &hould not be less than one#twelfth 5326 of the total basic salary earned b$ an emplo$ee
within a calendar $ear% 8t is based on wage but not part of the wage%s
#.ini&u& %erio( of ser*i#e. o be entitled to )th month pa$, the emplo$ee should have served at least month in the
calendar $ear%
3. SPARATION PA9.&eparation pa$ under the law and =urisprudence:
1% *eparation pay in lie of reinstatement (in case reinstatement is not possible or feasible)+2%1hen termination is due to 5a6 installation of labor#saving devices, 5b6 redundanc$, 5c6 retrenchment, or 5d6 closing
or cessation of business operations under (rticle 2E)?
)%1hen termination is due to the disease of an emplo$ee and his continued emplo$ment is pre=udicial to himself or his co#emplo$ees under (rticle 2E4?
4%1hen resignation pa$ or separation pa$ 5or sometimes called C financial assistanceD6 is re'uired under a unilaterall$
promulgated voluntar$ polic$ or practice of the emplo$er or under an agreement such as a .(?
;%1hen emplo$ment is deemed terminated after the lapse of si> 5@6 months in cases involving bona-fide suspension of theoperation of business or undertaking under (rticle 2E@?
I. RTIRNT PA9.
. li+i1ility. ? etirement applies to:
a% (ll emplo$ees in the private sector, regardless of their position, designation or status and irrespective of the method b$
which their wages are paid ? b% Part#time emplo$ees?
c%/mplo$ees of service and other =ob contractors?
d% 0omestic workers or persons in the personal service of another?
e%9nderground mine workers?f% /mplo$ees of government#owned and3or controlled corporations organied under the .orporation .ode 5without original
charters6%
<. Retire&ent a+e. ? O%tional retirement age / Co&%ulsory retirement age F
=. A&ount. &hould be e'uivalent to one?half 45 &onth salary for e*ery year of ser*i#e- a fraction of at least si> 5@6
months being considered as one 56 whole $ear% One?half 45 &onth salary means <<.F (ays comprised of thefollowing:
5a6 F (ays salary of the emplo$ee based on his latest salary rate%PLUS
5b6 he cash e'uivalent of fi*e 4F5 (ays of ser*i#e in#enti*e lea*e?PLUS
5c6 One?t)elfth 4H<5 of the =th &onth %ay due the emplo$ee 4or <.F (ays5?PLUS
5d6 All other 1enefits that the emplo$er and emplo$ee ma$ agree upon that should be included in the computation of the
emplo$ee<s retirement pa$%
6. Retire&ent 1enefits of )or2ers %ai( 1y results. he ; da$s shall be their average dail$ salar$ 5(0&6 for the last 2
months reckoned from the date of their retirement, divided b$ the number of actual working da$s in that particular period%
F. Retire&ent 1enefits of %art?ti&e )or2ers. /ntitled to C32 month salar$D for ever$ $ear of service, computed at least in proportion to the salar$ and related benefits due them%
. Ta7a1ility. etirement benefits are e>empted from attachment, lev$, e>ecution or an$ ta> whatsoever% o be e>empted
from withholding ta>, the ta>pa$er should prove the following: 56 a reasonable private benefit plan is maintained b$ the
emplo$er? 526 the retiring official or emplo$ee has been in the service of the same emplo$er for at least ten D/E years? 5)6
the retiring official or emplo$ee is not less than fifty DF/E years of a+e at the time of his retirement? and 546 the benefit has been a*aile( of only on#e%
J. ;ON ;OR8RS.
. A#ts of (is#ri&ination un(er the La1or Co(e. ?
5a6Pa$ment of a lesser compensation, including wage, salar$ or other form of remuneration and fringe benefits, to a female
emplo$ee as against a male emplo$ee, for work of e'ual value? and
5b6 Favoring a male emplo$ee over a female emplo$ee with respect to promotion, training opportunities, stud$ andscholarship grants solel$ on account of their se>es%
<. !is#ri&ination a+ainst )o&en as (efine( un(er the a+na Carta of ;o&en DR.A. No. $/ a%%ro*e( on Au+ust
6- <//$E. 8t refers to an$ of the following circumstances:
5a6 (n$ gender#based distinction, e>clusion, or restriction which has the effect or purpose of impairing or nullif$ing the
recognition, en=o$ment, or e>ercise b$ women, irrespective of their marital status, on a basis of e'ualit$ of men and
women, of human rights and fundamental freedoms in the political, economic, social, cultural, civil, or an$ other field%
5b6 (n$ act or omission, including b$ law, polic$, administrative measure, or practice, that directl$ or indirectl$ e>cludes or restricts women in the recognition and promotion of their rights and their access to and en=o$ment of opportunities,
benefits, or privileges%
5c6 ( measure or practice of general application is discrimination against women if it fails to provide for mechanisms to
offset or address se> or gender#based disadvantages or limitations of women, as a result of which women are denied or restricted in the recognition and protection of their rights and in their access to and en=o$ment of opportunities, benefits,
or privileges? or women, more than men, are shown to have suffered the greater adverse effects of those measures or
practices%
5d6 0iscrimination compounded b$ or intersecting with other grounds, status, or condition, such as ethnicit$, age, povert$, or religion%
=. Sti%ulation a+ainst &arria+e. 8t is an unlawful act of the emplo$er to re'uire as a condition for or continuation of
emplo$ment that a woman emplo$ee shall not +et &arrie( or to stipulate e>pressl$ or tacitl$ that u%on +ettin+ &arrie(- a
)o&an e&%loyee shall 1e (ee&e( resi+ne( or se%arate( or to dismiss or discriminate or otherwise pre=udice a woman
emplo$ee merel$ b$ reason of her marriage%
6. Prohi1ite( a#ts. 8n addition to the stipulation against marriage 5see above6, the following are prohibited:
a%o discharge an$ woman emplo$ed b$ him for the purpose of preventing such woman from en=o$ing maternit$ leave,
facilities and other benefits provided under the 7abor .ode?
b%o discharge such woman on account of her pregnanc$, or while on leave or in confinement due to her pregnanc$?c%o discharge or refuse the admission of such woman upon returning to her work for fear that she ma$ again be pregnant?d%o discharge an$ woman or an$ other emplo$ee for having filed a complaint or having testified or being about to testif$
under the 7abor .ode%
F. Anti?Se7ual 3arass&ent A#t 4R.A. No. 05- ? Penalies se>ual harassment onl$ in three 5)6 situations, namel$:
56 emplo#ment 5work#related6? 526 education 5education#related6? and 5)6 training 5training#related6.
8n a work#related or emplo$ment environment, se>ual harassment is committed when:
a% he se>ual favor is made a condition in the hiring or in the emplo$ment, re#emplo$ment or continued emplo$ment of said
individual or in granting said individual favorable compensation, terms, conditions, promotions, or privileges? or therefusal to grant the se>ual favor results in limiting, segregating or classif$ing the emplo$ee which in an$ wa$ would
discriminate, deprive or diminish emplo$ment opportunities or otherwise adversel$ affect said emplo$ee?
b%he above acts would impair the emplo$ee<s rights or privileges under e>isting labor laws? or
c%he above acts would result in an intimidating, hostile, or offensive environment for the emplo$ee%
. Chil(- &eanin+. ? For legal purposes, the term <child= refers to an$ person less than eighteen 5E6 $ears of age%
<. ;or2in+ #hil(- &eanin+. ? ( <!or9ing child= refers to an$ child engaged as follows:
i% when the child is below eighteen 5E6 $ears of age, in work or economic activit$ that is not “child labor=” and
ii%when the child below fifteen 5;6 $ears of age:
5a6 in work where he3she is directl$ under the responsibilit$ of his3her parents or legal guardian and where onl$ members
of the child<s famil$ are emplo$ed? or 5b6 in <public entertainment or information= which refers to artistic, literar$, and cultural performances for television
show, radio program, cinema or film, theater, commercial advertisement, public relations activities or campaigns,
=. Prohi1ition of e&%loyin+ &inors in #ertain un(erta2in+s an( in #ertain a(*ertise&ents. ? -o child below eighteen 5E6
$ears of age is allowed to be emplo$ed as a model in an$ advertisement directl$ or indirectl$ promoting alcoholic beverages,
into>icating drinks, tobacco and its b$#products, gambling or an$ form of violence or pornograph$%
L. PLO9NT O" 3OUS3LPRS 4NO; 8NO;N AS !OSTIC ;OR8RS OR 8ASABA3A95D0E
. Pre*ailin+ a%%li#a1le la). ? %(% -o% *)@, otherwise known as <4omestic /or9ers Act= or <+atas
@asambaha#= approved on Kanuar$ E, 2*)%<. !o&esti# )or2eror 8asa&1ahay ? refers to an$ person engaged in (o&esti# )or2 within an emplo$ment
relationship such as, but not limited to, the following: general househelp, nursemaid or “yaya”, cook, gardener, or laundr$
person, but shall e7#lu(e an$ person who performs domestic work onl$ occasionall$ or sporadicall$ and not on anoccupational basis% his term shall notinclude children who are under foster famil$ arrangement, and are provided access to
education and given an allowance incidental to education, i.e., “baon”, transportation, school pro=ects and school activities%=. 3ousehol( - refers to the immediate members of the famil$ or the occupants of the house that are directl$ provided
services b$ the domestic worker%6. &%loyer ? refers to an$ person who engages and controls the services of a domestic worker and is part$ to the
• Stan(ar( of treat&ent # =ust and humane manner and in no case shall the former inflict ph$sical violence upon the
kasambaha$%
• "ree 1oar(- lo(+in+ an( &e(i#al atten(an#e%
• Privac$ to all forms of communication and personal effects%
• ight to have access to the outside world through such modern modes, e'uipment and devices as the internet,
cellphones, etc%• ight to education and training 5without an$ age limitation of E $ears as provided previousl$6%
• Prohibition on disclosure b$ kasambaha$ of all privileged and confidential communication or information pertaining to
emplo$er%
• here should be a )ritten contract of emplo$ment between emplo$er and kasambaha$%
• -o more cap on duration of contract%
• Lasambaha$ cannot ac'uire regularit$ of emplo$ment%
• /mplo$ment of kasambaha$ is fi>ed#term in nature%
• he kasambaha$ cannot be re'uired to make deposits from which loss or damage to tools, materials, furniture and
e'uipment ma$ be deducted%
• he kasambaha$ cannot be placed under (e1t 1on(a+e meaning the rendering of service b$ the domestic worker as
securit$ or pa$ment for a debt where the length and nature of service is not clearl$ defined or when the value of the
service is not reasonabl$ applied in the pa$ment of the debt%• .hildren whose age is below ; $ears are now absolutel$ prohibited to work as kasambaha$%
• he emplo$er is now re'uired to report and register the kasambaha$ working for him3her in the aranga$ where the
former resides%
• !aily rest %erio( # (ggregate dail$ rest period shall be E hours per da$%
• ;ee2ly rest %erio( # (t least 24 consecutive hours of rest in a week%
• 8t is prohibited to assign the kasambaha$ to non#household work in a commercial, industrial or agricultural enterprise on
the basis of the wage rates for domestic workers%
• ini&u& )a+e on a &onthly 1asis. &hould not be less than:
4a5P<-F//.// a monthfor those emplo$ed in the -ational .apital egion 5-.6?415P<-///.// a monthfor those emplo$ed in chartered cities and first class municipalities? and4#5P-F//.// a monthfor those emplo$ed in other municipalities%
•
(ll kasambaha$ are entitled to:5a6 =th &onth %ay%5b6 F?(ay ser*i#e in#enti*e lea*e after $ear of service%
5c6 &&&, PhilIealth and Pag#88A coverage who have rendered at least month of service% 5NOT: Premium
pa$ments or contributions shall be shouldered b$ the emplo$er% Iowever, if the domestic worker is receiving a wage of P;,***%** and
above per month, the domestic worker shall pa$ the proportionate share in the premium pa$ments or contributions, as provided b$
law5.
5d6 he kasambaha$ shall be entitled to all other benefits under e>isting laws%
• Rules on ter&ination of e&%loy&ent:
56 8f emplo$ment contract is fi7e(, it cannot be terminated before its e>piration%5i6 If ter&inate( 1y 2asa&1ahay )ithout 'ust #ause, he3she forfeits unpaid salar$ due not e>ceeding the
e'uivalent ; da$s work% he emplo$er ma$ recover the deploy!ent e;penses provided that the service has been
terminated within @ months from the domestic worker<s emplo$ment%
5ii6If ter&inate( 1y e&%loyer )ithout 'ust #ause, the domestic worker shall be paid the compensation alread$
earned plus the e'uivalent of ; da$s work b$ wa$ of indemnit$%
5iii6he kasambaha$ and the emplo$er ma$ mutuall$ agree upon written notice to pre#terminate the contract of emplo$ment to end the emplo$ment relationship%
526 8f emplo$ment contract is not fi7e(, the emplo$er or the kasambaha$ ma$ give notice to end the working
relationship F (ays before the intended termination of the service%
5)6 Groun(s to ter&inate e&%loy&ent #ontra#t 1y the 2asa&1ahay. ? he domestic worker ma$ terminate theemplo$ment relationshipat any ti&e 1efore the e7%iration of the #ontra#t for an$ of the following causes:
5a6erbal or emotional abuse of the domestic worker b$ the emplo$er or an$ member of the household?
5b68nhuman treatment including ph$sical abuse of the domestic worker b$ the emplo$er or an$ member of the
household?5c6.ommission of a crime or offense against the domestic worker b$ the emplo$er or an$ member of the household?
5d6iolation b$ the emplo$er of the terms and conditions of the emplo$ment contract and other standards set forth
under this law?
5e6(n$ disease pre=udicial to the health of the domestic worker, the emplo$er, or member3s of the household? and5f6 Other causes analogous to the foregoing%
5NOT: The +roun(s are a #o&1ination of 1oth 'ust an( authori@e( #auses5.
546 Groun(s to ter&inate e&%loy&ent #ontra#t 1y the e&%loyer. ?(n emplo$er ma$ terminate the services of the
domestic worker at an$ time before the e>piration of the contract, for an$ of the following causes:5a6Misconduct or willful disobedience b$ the domestic worker of the lawful order of the emplo$er in connection with
the former<s work?
5b6Aross or habitual neglect or inefficienc$ b$ the domestic worker in the performance of duties?
5c6 Fraud or willful breach of the trust reposed b$ the emplo$er on the domestic worker?
5d6 .ommission of a crime or offense b$ the domestic worker against the person of the emplo$er or an$ immediatemember of the emplo$er<s famil$?
5e6 iolation b$ the domestic worker of the terms and conditions of the emplo$ment contract and other standards set
forth under this law?5f6 (n$ disease pre=udicial to the health of the domestic worker, the emplo$er, or member3s of the household? and
5g6 Other causes analogous to the foregoing%
5NOT: The +roun(s are a #o&1ination of 1oth 'ust an( authori@e( #auses5.
• &%loy&ent Certifi#ation. ? 8t is the dut$ of the emplo$er to issue a certificate of emplo$ment to the domestic worker
within ; da$s from the time it is re'uested%
. PLO9NT O" 3O;OR8RS.
. In(ustrial ho&e)or2er is a worker who is engaged in industrial homework%
<. In(ustrial ho&e)or2 is a s$stem of production under which work for an emplo$er or contractor is carried out b$ a
homeworker at his3her home%Materials ma$ or ma$ not be furnished b$ the emplo$er or contractor%8t differs from regular factor$ production principall$ in that, it is a decentralied form of production where there is ordinaril$ ver$ little supervision
or regulation of methods of work%
=. 3o&e means an$ nook, house, apartment or other premises used regularl$, in whole or in part, as a dwelling place, e>cept
those situated within the premises or compound of an emplo$er, contractor3subcontractor and the work performed therein is
under the active or personal supervision b$ or for the latter%
6. Pay&ent for ho&e)or2. # 8mmediatel$ upon receipt of the finished goods or articles, the emplo$er is re'uired to pa$ thehomeworker or the contractor or subcontractor, as the case ma$ be, for the work performed less the corresponding
homeworker<s share of &&&, PhilIealth and /.. premium contributions which should be remitted b$ the contractor or
subcontractor or emplo$er to the &&& with the emplo$er<s share%Iowever, where pa$ment is made to a contractor or
subcontractor, the homeworker should likewise be paid immediatel$ after the goods or articles have been collected from theworkers%
F. Prohi1itions on #ertain 2in(s of ho&e)or2. # -o homework shall be performed on the following: 56/>plosives, fireworks
and articles of like character? 526 0rugs and poisons? and 5)6 Other articles, the processing of which re'uires e>posure to
to>ic substances%
N. APPRNTICS AN! LARNRS.
!istin#tions. ? he following are the distinctions between apprentices and learners:
% Practical training. oth learnership and apprenticeship involve practical training on#the#=ob%2%Training agreement. 7earnership is governed b$ a learnership agreement? while apprenticeship is governed b$ an
apprenticeship agreement%
2%Occupation. 7earnership involves learnable occupations consisting of se!i-skilled and other ind"strial occ"pations which
are non#apprenticeable? while apprenticeship concerns apprenticeable occ"pations or an$ trade, form of emplo$ment or
occupation approved for apprenticeship b$ the 0O7/ &ecretar$%
)%Theoretical instructions. 7earnership ma$ or ma$ not be supplemented b$ related theoretical instructions? while
apprenticeship should alwa$s be supplemented b$ related theoretical instructions%4% ,atio of theoretical instructions and on*the*$ob training . For both learnership and apprenticeship, the normal ratio is one
hundred 5**6 hours of theoretical instructions for ever$ two thousand 52,***6 hours of practical or on#the#=ob training%
heoretical instruction time for occupations re'uiring less than two thousand 52,***6 hours for proficienc$ should be
computed on the basis of such ratio%;% Competenc#*based s#stem. 9nlike in apprenticeship, it is re'uired in learnership that it be implemented based on the
/&0(#approved competenc$#based s$stem%
@% 4uration of training. 7earnership involves practical training on the =ob for a period not e7#ee(in+ three 4=5 &onths? while
apprenticeship re'uires for proficienc$, &ore thanthree 4=5 &onths but not o"er si2 (8 months of practical training on the =ob%
+% ualifications% he law does not e>pressl$ mention an$ 'ualifications for learners? while the following 'ualifications are
re'uired to be met b$ apprentices under (rticle ;! of the 7abor .ode:
5a6 e at least fourteen 546 $ears of age?5b6Possess vocational aptitude and capacit$ for appropriate tests? and
5c6 Possess the abilit$ to comprehend and follow oral and written instructions%
E% Circumstances $ustif#ing hiring of trainees% 9nlike in apprenticeship, in learnership, the law, (rticle +4 of the 7abor .ode,
e>pressl$ prescribes the pre#re'uisites before learners ma$ be validl$ emplo$ed, to wit:a%1hen no e>perienced workers are available?
b% he emplo$ment of learners is necessar$ to prevent curtailment of emplo$ment opportunities? and
c%he emplo$ment does not create unfair competition in terms of labor costs or impair or lower working standards%
!% Limitation on the number of trainees% 8n learnership, a participating enterprise is allowed to take in learners onl$ up to a
ma>imum of 2*G of its total regular workforce% -o similar cap is imposed in the case of apprenticeship%*% Option to emplo#. 8n learnership, the enterprise is obliged to hire the learner after the lapse of the learnership period? while
in apprenticeship, the enterprise is given onl$ an <option= to hire the apprentice as an emplo$ee%
% /age rate% he wage rate of a learner or an apprentice is set at +;G of the statutor$ minimum wage%
O. PRSONS ;IT3 !ISABILIT9 DP;!sE 4R.A. No. <- as a&en(e( 1y R.A. No. $66<5.
. !efinitions of i&%ortant ter&s. ?
a%<Persons !ith 4isabilit#= are those suffering from restriction or different abilities, as a result of a mental, ph$sical or
sensor$ impairment, to perform an activit$ in the manner or within the range considered normal for a human
being% DNOT: It is not #orre#t to refer to the& as <4isabled Persons= E.
b%<Impairment= refers to an$ loss, diminution or aberration of ps$chological, ph$siological, or anatomical structure or function%
c%<4isabilit#= means 56 a ph$sical or mental impairment that substantiall$ limits one or more ps$chological, ph$siological
or anatomical functions of an individual or activities of such individual? 526 a record of such an impairment? or 5)6 being
regarded as having such an impairment%d%<-andicap= refers to a disadvantage for a given individual, resulting from an impairment or a disabilit$ that limits or
prevents the function or activit$ that is considered normal given the age and se> of the individual%
e%<,easonable Accommodations= include: 56 improvement of e>isting facilities used b$ emplo$ees in order to render these
readil$ accessible to and usable b$ persons with disabilit$? and 526 modification of work schedules, reassignment to avacant position, ac'uisition or modification of e'uipment or devices, appropriate ad=ustments or modifications of
e>aminations, training materials or compan$ policies, rules and regulations, the provision of au>iliar$ aids and services,
and other similar accommodations for persons with disabilit$%
f%<0arginalized 4isabled Persons= or more appropriatel$, <0arginalized Persons !ith 4isabilit#= refer to persons withdisabilit$ who lack access to rehabilitative services and opportunities to be able to participate full$ in socio#economic
activities and who have no means of livelihood and whose incomes fall below the povert$ threshold%
g%<ualified Indi"idual !ith a 4isabilit#= means an individual with a disabilit$ who, with or without reasonable
accommodations, can perform the essential functions of the emplo$ment position that such individual holds or desires%Iowever, consideration shall be given to the emplo$er<s =udgment as to what functions of a =ob are essential, and if an
emplo$er has prepared a written description before advertising or interviewing applicants for the =ob, this description
shall be considered evidence of the essential functions of the =ob%
h%<Co"ered Entit#= means an emplo$er, emplo$ment agenc$, labor organiation or =oint#labor management committee%
<. Ri+hts of %ersons )ith (isa1ility.
a. ,ual o%%ortunity for e&%loy&ent.
1. ;a+e rate. * **G of the applicable minimum wage%#. Sheltere( e&%loy&ent for %ersons )ith (isa1ility. # “ Sheltered Emplo#ment= refers to the provision of productive
work for persons with disabilit$ through workshops providing special facilities, income#producing pro=ects or homework
schemes with a view to giving them the opportunit$ to earn a living thus enabling them to ac'uire a working capacit$re'uired in open industr$%
(. Vo#ational reha1ilitation. # he &tate shall take appropriate vocational rehabilitation measures that shall serve to
develop the skills and potentials of persons with disabilit$ and enable them to compete favorabl$ for available productive
and remunerative emplo$ment opportunities in the labor market%e. Vo#ational +ui(an#e an( #ounsellin+. ? he 0&10 shall implement measures providing and evaluating vocational
guidance and counselling to enable persons with disabilit$ to secure, retain and advance in emplo$ment% 8t shall ensure
the availabilit$ and training of counsellors and other suitabl$ 'ualified staff responsible for the vocational guidance and
counselling of persons with disabilit$%f. Persons )ith (isa1ility are eli+i1le for a%%renti#eshi% an( learnershi%.
=. Prohi1ition on (is#ri&ination a+ainst P;!s.
6. !is#ri&ination on e&%loy&ent %rohi1ite(. ? -o entit$, whether public or private, shall discriminate against a 'ualified
person with disabilit$ b$ reason of disabilit$ in regard to =ob application procedures, the hiring, promotion, or discharge of
emplo$ees, emplo$ee compensation, =ob training, and other terms, conditions and privileges of emplo$ment% he following
constitute acts of discrimination:
56 7imiting, segregating or classif$ing a =ob applicant with disabilit$ in such a manner that adversel$ affects his work
opportunities?
526 9sing 'ualification standards, emplo$ment tests or other selection criteria that screen out or tend to screen out a person
with disabilit$ unless such standards, tests or other selection criteria are shown to be =ob#related for the position in'uestion and are consistent with business necessit$?
546 9tiliing standards, criteria, or methods of administration that:
5a6 have the effect of discrimination on the basis of disabilit$? or
5b6 perpetuate the discrimination of others who are sub=ect to common administrative control%
5;6 Providing less compensation, such as salar$, wage or other forms of remuneration and fringe benefits, to a 'ualifiedemplo$ee with disabilit$, b$ reason of his disabilit$, than the amount to which a non#disabled person performing the
same work is entitled?
5@6 Favoring a non#disabled emplo$ee over a 'ualified emplo$ee with disabilit$ with respect to promotion, trainingopportunities, stud$ and scholarship grants, solel$ on account of the latter<s disabilit$?
5+6 e#assigning or transferring an emplo$ee with a disabilit$ to a =ob or position he cannot perform b$ reason of his
disabilit$?
5E6 0ismissing or terminating the services of an emplo$ee with disabilit$ b$ reason of his disabilit$ unless the emplo$er can prove that he impairs the satisfactor$ performance of the work involved to the pre=udice of the business entit$?
provided, however, that the emplo$er first sought to provide reasonable accommodations for persons with disabilit$?
5!6 Failing to select or administer in the most effective manner emplo$ment tests which accuratel$ reflect the skills, aptitude
or other factor of the applicant or emplo$ee with disabilit$ that such tests purports to measure, rather than the impairedsensor$, manual or speaking skills of such applicant or emplo$ee, if an$? and
5*6 />cluding persons with disabilit$ from membership in labor unions or similar organiations%
6. In#enti*es for e&%loyers )ho e&%loy %ersons )ith (isa1ility. ? Private entities that e&%loy persons with disabilit$ who
meet the re'uired skills or 'ualifications, either as a re+ular e&%loyee- a%%renti#e or learner- shall be entitled to
an a((itional (e(u#tion fro& their +ross in#o&e e,ui*alent to t)enty?fi*e %er#ent 4<F5 of the total a&ount %ai( as
salaries an( )a+es to %ersons )ith (isa1ility? provided, however, that such entities could present proof as certified b$ the
0epartment of 7abor and /mplo$ment that persons with disabilit$ are under their emplo$ and provided further that the
emplo$ee with disabilit$ is accredited with the 0epartment of 7abor and /mplo$ment and the 0epartment of Iealth as to
his disabilit$, skills and 'ualifications. B1
Private entities that i&%ro*e or &o(ify their %hysi#al fa#ilities in or(er to %ro*i(e reasona1le a##o&&o(ation for
%ersons )ith (isa1ility shall also be entitled to an a((itional (e(u#tion fro& their net ta7a1le in#o&e e,ui*alent
to fifty %er#ent 4F/5 of the (ire#t #osts of the i&%ro*e&ents or &o(ifi#ations.
. A+ "" A!&* 10 o A!&* 10 o ' L#o! Co" " + *+ ,-*,/ !*+
D-!, O!"! No. 1A JNo7,#! 156 2011K. 0ob contracting is legitimate if all the follo!ing three
(7) circmstances concr
(1) The contractor mst be !/+!" !ith the 5LE and carries a "+& " "-"
#+++ and nderta"es to perform the :ob$ !or" or service o + ow !+-o+#*$$ according to +
ow ,! " ,'o"$ and !!o, &o!o* " "!&o o ' -!&-* in **
,!+ connected !ith the performance of the !or" except as to the !+*+ thereof+
() The contractor has +#+* &-* ":o! 7+,+ and
(7) The S!7& A/!, ensres compliance !ith ** the !/'+ " #+ nder Labor La!s%• So, -!&-*+ o o# &o!&/ -! D-!, O!"! No. 1A.
1% Absence of any of the foregoing re'isites ma"es it a labor#only contracting arrangement%
% Lac" of control by the :ob contractor over the ,! and ,'o" of the performance of the !or" of its
employees spplied to the principal !old amont to labor#only contracting%
7% S#+* &-* means
• or &o!-o!o+6 -!!+'-+ and &oo-!7+ P3 M**o of -"- &-* +o&+:+'!+.
• or +/* -!o-!o!+'- # P3 M**o of wo!'%
,%<S#+* &-*= and <7+, oo*+6 >-,6 ,-*,+6 ,&'!+ " wo!
-!,++=shold be treated as t!o () distinct and separate factors% The e8istence of one is sfficient to
establish legitimate :ob contracting% ailre to prove sbstantial capital or investment in tools$ e'ipment$
etc%$ !old reslt in labor#only contracting arrangement%/%enting ot the plant$ tools and e'ipment to the contractor does not prove sbstantial capitali;ation%
6% The fact that the contractor has only the principal as its single client indicates labor#only contracting%
>%5irect relationship of the :ob$ !or" or service contracted !ith the main bsiness of the principal indicates
labor#only contracting%
3% iolation of the follo!ing rights of contractors’ employees !old ma"e the principal the direct employer
(a)*afe and healthfl !or"ing conditions+
(b) Labor standards sch as bt not limited to service incentive leave$ rest days$ overtime pay$ holiday
pay$ 17th month pay$ and separation pay as may be provided in the *ervice Agreement or nder the
Labor Code+
(c) etirement benefits nder the *** or retirement plans of the contractor$ if there is any+
(d) *ocial secrity and !elfare benefits+
(e) *elf#organi;ation$ collective bargaining and peacefl concerted activities+ and
(f) *ecrity of tenre%
4% egistration of :ob contractors !ith the 5LE is no! mandatory% F*! o !/+! +'** /7 !+ o
' -!+,-o ' ' &o!&o! + //" *#o!o*$ &o!&/ %
#. D-!, C!&*! No. 0112 JM!&' 136 2012K. This issance
1% E8cepted :ob contractors in the constrction indstry from the registration re'irement nder D. O. No. 18-A,
Series of !11%
% Clarified that D. O. No. 18-A, Series of !11 BPs are not covered by the same Depart"ent Order No. 18-
Adoes not contemplate information technology#enabled services involving an entire bsiness processes (for
". T!*!* !*o+'- o# &o!&/. There are three (7) parties involved in these arrangements
(1) The principal !hoF!hich farms ot a !or"$ :ob or service to a :ob contractor+
() The /ob contractor !hoF!hich has the capacity to independently nderta"e the performance of the !or"$
:ob$ tas"$ pro:ect or service+ and
(7) The contractual worers spplied by the :ob contractor to the principal to accomplish the !or"$ :ob$ or
service contemplated in the *ervice Agreement%
B. DISMISSAL FROM EMPLOYMENT.
1. + C++. The follo!ing are the :st cases nder the la!
(a) *erios miscondct or !illfl disobedience by the employee of the la!fl orders of his employer or representative in connection !ith his !or"+
(b) 2ross and habital neglect by the employee of his dties+
(c)rad or !illfl breach by the employee of the trst reposed in him by his employer or dly athori;ed
representative+
(d) Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his dly athori;ed representatives+ and
(e)ther cases *o/o+ to the foregoing sch as
1% Gno!ingly participating by the nion officers in an illegal stri"e+
% Gno!ingly participating in the commission of illegal acts by any employee$ nion officer or ordinary
member dring a stri"e (irrespective of !hether the stri"e is legal or illegal)%
7% iolation by stri"ers of orders$ prohibitions andFor in:nctions issed by the 5LE *ecretary%,% iolation of the nion secrity clase stiplated in the CBA%
/% iolation of company rles and reglations%
6% Theft of property of co#employee%["
>% &nefficiency or failre to attain !or" 'ota%[2"
3% ailre to comply !ith !eight standards of employer%[)"
2. A'o!;" &++. The follo!ing are the athori;ed cases nder the la!
(a) &nstallation of labor#saving device+
(b) edndancy+
(c) etrenchment+
(d)Closre or cessation of bsiness operations+
(e)5isease%
3. D -!o&++. 5e process in termination of employment refers to stattory$[4" and not constittional$[;" de
process%
()Two& !>!,. efers to the re'irement that an employee !ho is dismissed for +
&+ mst be given at least t!o () notices described in #in$ of #in$s %ransport, &nc. '. (a"ac $ H2%% -o%
166.3$ 0ne 4$ ..>I$ ths
(1) F!+ written notice. # The first !ritten notice to be served on the employees shold contain the specific
cases or gronds for termination against them$ and a directive that the employees are given the
opportnity to sbmit their !ritten e8planation !ithin the reasonable period of *+ 7 (4) &*"!
"$+ from receipt of the notice to give the employees an opportnity to stdy the accsation against
them$ conslt a nion official or la!yer$ gather data and evidence$ and decide on the defenses they !ill
raise against the complaint% Joreover$ in order to enable the employees to intelligently prepare their
e8planation and defenses$ ' o& +'o*" &o "*" !!o o ' &+ "
(#) H!/@ ,/ o o--o!$ o # '!". H*ee -o% above in re #in$ of #in$s %ransport '. (a"ac I%-e! giding
principles on the hearing aspect of procedral de process have been ennciated in the en banc decision in
the ..4 case of ere v. hilippine 'eleraph and 'elephone Company$ JG.R. No. 142056 A-!* 86 2006
45 SCRA 110K$ ths
(1) <A,-* o--o!$ o # '!"= means any meaningfl opportnity (verbal or !ritten) given to the
employee to ans!er the charges against him and sbmit evidence in spport of his defense$ !hether in a
hearing$ conference or some other fair$ :st and reasonable !ay%
()A o!,* '!/ o! &o!& becomes ,"o!$ only nder any of the follo!ing circmstances
(a) <hen re'ested by the employee in )ritin$ + or
(b) <hen sbstantial evidentiary disptes e8ist+ or
(c) <hen a company rle or practice re'ires it+ or
(d) <hen similar circmstances :stify it%
(7)The <,-* o--o!$ o # '!"= standard in the Labor *ode -!7*+ over the <'!/ o!
&o!&=re'irement in its i"ple"entin$ rules and re$ulations%
C. RELIEFS FOR ILLEGAL DISMISSAL.
1. R+,. &t means restoration to a state or condition from !hich one had been removed or
separated% The person reinstated assmes the position he had occpied prior to his dismissal or$ if no longer
available$ to a sbstantially e'ivalent position%
. P"/ --* (A!&* 2236 L#o! Co"). This relief applies o*$ to orders of reinstatement issed
by L#o! A!#!+ " o o o'! % The employee need not file a motion for the issance of the !rit of
e8ection since the Labor Arbiter shall thereafter "otuproprio isse the !rit% Ths$ if ordered by the -LC$
CA or *C$ the same is not immediately e8ectory since it is not covered by the rle nder Article 7+ hence$there shold be a !rit of e8ection to effect reinstatement%
[N!"#$ %ee more discussion on this to&ic in 'AR" 8 entitled PROCEDURE AND
JURISDICTION” of (a)or Ar)iters.
#. S-!o -$ * o !+,. The follo!ing circmstances :stify the a!ard of separation in
lie of reinstatement
1%<here the contined relationship bet!een the employer and the employee is no longer viable de to
the strained relationsand antagonism bet!een them%
%<hen reinstatement proves impossible$ impracticable$ and hardly in the best interest of the parties%
7%<hen there has been long passage of time from the date of the incident to the final resoltion of the case
or de to certain realities of the sitation%
,%<here the dismissed employee’s position is no longer available at the time of reinstatement for reasons not
attribtable to the falt of the employer%
/% <here the employee decides not to be reinstated as !hen he does not pray for reinstatement in his
complaint or position paper%
6% <here the employee e8pressly prayed for the a!ard of separation pay instead of reinstatement thereby
effectively foreclosing reinstatement as a relief%
>%&n case the establishment !here the employee is to be reinstated has closed or ceased operations%
3% <here the company has been declared insolvent%
4%<hen$ by reason of compassionate :stice or long years of service or lac" of bad records in the past$ an
employee is granted by the cort separation pay in accordance !ith his entitlement nder the la!$ or
nder the CBA or company rles or practice$ !hichever is higher$ althogh there !as a finding of legality
five (/) years becase of the good faith of the employer% <hile petitioner’s argment that respondent had already
abandoned his :ob in 144, !as not pheld$ the Cort conceded that petitioner$ given the particlar circmstances of this
case$ had sfficient basis to reasonably and in good faith deem respondent resigned by 1443%
D. PREVENTIVE SUSPENSION.
Preventive sspension$[E"!hich is o -*$$ may be imposed only in cases !here an employee is ndergoing
an investigation for committing a +!o+ offense and his contined presence in the company premises dring the
investigation poses a serios and imminent threat to the life or property of the employer or of his co#!or"ers% <ithot this
threat$ preventive sspension is not proper% Ths$ an employee’s absences and tardiness or failre to !ear proper niformor to attend a meeting called by his spervisor are not valid gronds to impose preventive sspension%
• So, -!&-*+ o -!77 ++-+o.
1% (a+i"u" eriod of pre'enti'e suspension # 30 "$+% After the lapse thereof$ the employer is re'ired to
reinstate the !or"er to his former position or to a sbstantially e'ivalent position% 5ring the 7.#day period$
the !or"er is not entitled to his !ages and other benefits%
% /+tension of period "ust be justified. &t may only be e8tended if the employer failed to complete the
investigation !ithin the 7.#day period de to :stifiable gronds% nce e8tended$ employee mst be paid his
!ages and benefits dring the e8tension% &n sch a case$ the !or"er is not bond to reimbrse the amont
paid to him dring the e8tension if the employer decides to dismiss him after the completion of the
investigation%
7% &ndefinite preventive sspension amonts to constrctive dismissal%,% Preventive sspension does not mean that de process may be disregarded%
/% Preventive sspension$ by itself$ does not signify that the company has already ad:dged the employee gilty
of the charges for !hich she !as as"ed to ans!er and e8plain%
E. CONSTRUCTIVE DISMISSAL.
Constrctive dismissal contemplates any of the follo!ing
1% An 7o*!$ !+/o resorted to !hen contined employment is rendered impossible$ nreasonable or
nli"ely+
% A ",oo in ran" andFor a dimintion in pay+ or
7% A clear "+&!,o6 ++#*$ o! "+" by an employer !hich becomes nbearable to the employee
that it cold foreclose any choice by him e8cept to forego his contined employment%
T+ o &o+!&7 "+,++*. The test of constrctive dismissal is !hether a reasonable person in theemployee’s position !old have felt compelled to give p his position nder the circmstances% &t is an act amonting to
dismissal bt made to appear as if it !ere not% &n fact$ the employee !ho is constrctively dismissed may be allo!ed to
"eep on coming to !or"% Constrctive dismissal is$ therefore$ a "+,++* "+/+% The la! recogni;es and resolves
this sitation in favor of the employees in order to protect their rights and interests from the coercive acts of the employer%
The employer’s prerogative to discipline incldes the follo!ing rights
1% To dismiss+
% To promlgate disciplinary rles and reglations+
7% To determine !ho to pnish+
,% To impose proper penalty nder the <R+o#* P!o-o!o*$ R*= !hich means that infractions
committed by an employee shold merit only the corresponding sanction demanded by the circmstances%The
penalty mst be commensrate !ith the gravity of the offense$ the act$ condct or omission impted to the
employee and imposed in connection !ith the employer’s disciplinary athority%
B. TRANSFER OF EMPLOYEES.
A transfer means a movement
1%rom one -o+o to another of e'ivalent ran"$ level or salary$ !ithot a brea" in the service+ or
%rom one o& to another !ithin the same bsiness establishment%
• So, -!&-*+ o !+! o ,-*o$+.
1% The transfer of an employee may constitte &o+!&7 "+,++* !hen it amonts to an involntary
resignation resorted to !hen contined employment is rendered impossible$ nreasonable or nli"ely+ !hen
there is a demotion in ran" andFor a dimintion in pay+ or !hen a clear discrimination$ insensibility or disdain by
an employer becomes nbearable to the employee leaving him !ith no option bt to forego !ith his contined
employment% Jore specifically$ the follo!ing '! (3) &o"o+ mst concr in order for the transfer to be
considered as constrctive dismissal
(a)<hen the transfer is nreasonable$ inconvenient or pre:dicial to the employee+(b)<hen the transfer involves a demotion in ran" or dimintion of salaries$ benefits and other privileges+ and
(c)<hen the employer performs a clear act of discrimination$ insensibility$ or disdain to!ards the employee$
!hich forecloses any choice by the latter e8cept to forego his contined employment%
% Even if the employee is performing !ell in his present assignment$ management may reassign him to a ne!
post%
7% The refsal of an employee to be transferred may be held :stified if there is a sho!ing that the transfer !as
directed by the employer nder 'estionable circmstances% or instance$ the transfer of employees dring
the height of their nion’s concerted activities in the company !here they !ere active participants is illegal%
,%An employee !ho refses to be transferred !hen sch transfer is valid is gilty of insbordination or !illfl
disobedience of a la!fl order of an employer nder Article 3 of the Labor Code% Fo! ?,-*% The
dismissal of a medical representative !ho acceded in his employment application to be assigned any!here in
the Philippines bt later refsed to be transferred from Janila to a provincial assignment$ !as held valid% The
reason is that !hen he applied and !as accepted for the :ob$ he agreed to the policy of the company
regarding assignment any!here in the Philippines as demanded by his employer’s bsiness operation%["
/% efsal to transfer de to parental obligations$ additional e8penses$ inconvenience$ hardship and angish$ held
not valid%An employee cold not validly refse la!fl orders to transfer based on these gronds%
6% efsal to transfer by reason of -!o,oo is valid%
C. PRODUCTIVITY STANDARDS OR UOTA.
The employer has the prerogative to prescribe the standards of prodctivity !hich the employees shold comply%
The prodctivity standards may be sed by the employer as
damages+ P1..$... as e8emplary damages+ and /N of the total amont de pls P1$... per consel’s cort appearance$
as attorney’s fees% Petitioner contered that the non#involvement clase !as nenforceable for being against pblic order or
pblic policyirst $ the restraint imposed !as mch greater than !hat !as necessary to afford respondent a fair and
reasonable protection% Petitioner contended that the transfer to a rival company !as an accepted practice in the pre#need
indstry% *ince the prodcts sold by the companies !ere more or less the same$ there !as nothing pecliar or ni'e to
protect% Second $ respondent did not invest in petitioner’s training or improvement%At the time petitioner !as recrited$ she
already possessed the "no!ledge and e8pertise re'ired in the pre#need indstry and respondent benefited tremendosly
from it% %hird $ a strict application of the non#involvement clase !old amont to a deprivation of petitioner’s right to engage
in the only !or" she "ne!%
&n pholding the validity of the non#involvement clase$ the trial cort rled that a contract in restraint of trade is
valid provided that there is a *,o -o '! , o! -*&% &n the case of the pre#need indstry$ the trial cort fond
the t!o#year restriction to be valid and reasonable%
n appeal$ the Cort of Appeals affirmed the trial cort’s rling%&t reasoned that petitioner entered into the contract
on her o!n !ill and volition%Ths$ she bond herself to flfill not only !hat !as e8pressly stiplated in the contract$ bt also
all its conse'ences that !ere not against good faith$ sage$ and la!% The appellate cort also rled that the stiplation
prohibiting non#employment for t!o years !as valid and enforceable considering the natre of respondent’s bsiness%
&n affirming the validity of the -on#&nvolvement Clase$ the *preme Cort ratiocinated as follo!s
?Petitioner avers that the non#involvement clase is offensive to pblic policy since the restraint imposed ismch greater than !hat is necessary to afford respondent a fair and reasonable protection%*he adds that since the
prodcts sold in the pre#need indstry are more or less the same$ the transfer to a rival company is
acceptable%Petitioner also points ot that respondent did not invest in her training or improvement%At the time she
:oined respondent$ she already had the "no!ledge and e8pertise re'ired in the pre#need indstry%inally$ petitioner
arges that a strict application of the non#involvement clase !old deprive her of the right to engage in the only !or"
she "no!s%
?espondent conters that the validity of a non#involvement clase has been sstained by the *preme
Cort in a long line of cases%&t contends that the inclsion of the t!o#year non#involvement clase in petitioner’s
contract of employment !as reasonable and needed since her :ob gave her access to the company’s confidential
mar"eting strategies%espondent adds that the non#involvement clase merely en:oined her from engaging in pre#need
bsiness a"in to respondent’s !ithin t!o years from petitioner’s separation from respondent%*he had not beenprohibited from mar"eting other service plans%
?As early as 1416$ !e already had the occasion to discss the validity of a non#involvement
clase%I &erraini v. 6sell 6 J+-!K w +" ' +&' &*+ w+ !+o#* !+! o !" "
(a) the legitimate spose dependent for spport pon the member or pensioner+
(b)the legitimate$ legitimated$ legally adopted child$ inclding the illegitimate child$ !ho is nmarried$
not $ainfully e"ployed $ not over the age of ma:ority$ or is over the age of ma:ority bt incapacitated and
incapable of self#spport de to a mental or physical defect ac'ired prior to age of ma:ority+ and
(c) the parents dependent pon the member for spport%
#. B&!+.
There are "inds of beneficiaries nder the 2*&* La! as follo!s
1% rimary #&!+ O The legal dependent spose ntil heFshe remarries and the dependent children%
% Secondary #&!+ O The dependent parents and$ sb:ect to the restrictions on dependent children$
the legitimate descendants%
C. LIMITED PORTABILITY LAW(R.A. No. 8).D<E
. P!-o+ o ' *w + o +#*+' !$ +o&* +&!$ +$+,. # &t is the declared policy of the *tate to
institte a scheme for o*;o and -o!#*$ of social secrity benefits !ith the vie! of establishing !ithin
a reasonable period$ a !$ social secrity system%
#. To*;o6 "". &t refers to the process of adding p the periods of creditable services or contribtions
nder each of the *ystems$ for the prpose of eligibility and comptation of benefits%&. Po!#*$6 "". &t refers to the transfer of fnds for the accont and benefit of a !or"er !ho transfers from
one system to the other%
". A--*&#*$ o *," -o!#*$ +&',. # The benefits provided nder %A% -o% >644 apply
to &7 or &7members of either *ystem (2*&*F***) as of the date of its effectivity on Jay .$ 144,%
. Co7!/. # The la! applies to ** !or"er#members of the 2*&* andFor *** !ho transfer from the pblic sector
to the private sector or 'ice-'ersa$ or !ho !ish to retain their membership in both *ystems% [)"
. C!"#*$ " o*;o o &o!#o+ " #+ SSS " GSIS. # A covered !or"er !ho
transfers employment from one sector to another (i. e.$ from private sector to pblic sector$ or 'ice 'ersa)$ or is
employed in both sectors$ shall have his creditable services or contribtions in both *ystems (2*&* and ***)
credited to his service or contribtion record in each of the *ystems and shall be totali;ed for prposes of old#
age$ disability$ srvivorship and other benefits in case the covered member does not ualify for such benefits ineither or both Syste"s )ithout totali2ation provided$ ho!ever$ that overlapping periods of membership shall be
credited only once for prposes of totali;ation%
/. L," -o!#*$ o "+. # The processes involved in the prompt payment of money benefits to eligible
members are the :oint responsibility of the 2*&* and ***% The *ystem or *ystems responsible for the payment
of money benefits de a covered !or"er shall release the same !ithin fifteen (1/) !or"ing days from receipt of
the claim$ sb:ect to the sbmission of the re'ired docments and availability of complete employeeFemployer
records in the *ystem or *ystems%
'. To*;o o &o!#o+ " #+@ 'ow -!o&++".
1. Co!#o+. All contributions paid by sch member personally and those that !ere paid by his employers
to both *ystems (2*&* and ***) shall be considered in the processing of benefits !hich he can claim from
either or both *ystems$ provided$ ho!ever$ that the amont of benefits to be paid by one *ystem shall be in
proportion to the nmber of contribtions actally remitted to that *ystem% The term ;contributions< refers to
the contribtions paid by the employee or !or"er to either the 2*&* or the *** on accont of the !or"er’s
membership%
2. C!"#* +!7&+ o! -!o"+ o &o!#o+. All creditable ser'ices or periods of contributions made
continosly or in the aggregate of a !or"er nder either of the sectors shall be added p and considered for
prposes of eli$ibility and comptation of benefits% The term <&!"#* +!7&+= insofar as the pblic
sector is concerned$ refers to the follo!ing
1% All previos services rendered by an officialFemployee prsant to an appointment$ !hether permanent$
provisional or temporary+
% All previos services rendered by an officialFemployee prsant to a dly#approved appointment to a
position in the Civil *ervice !ith compensation or salary+
7% The period dring !hich an official or employee !as on athori;ed sic" leave of absence !ithot pay not
e8ceeding one (1) year+
,%The period dring !hich an official or employee !as ot of the service as a reslt of illegal termination of his
services as finally decided by the proper athorities+ and
/%All previos services !ith compensation or salary rendered by elective officials%
The term <-!o"+ o &o!#o+= for the private sector refers to the periods dring !hich a person
renders services for an employer !ith compensation or salary$ and dring !hich contribtions !ere paid to
the ***% A <+*,-*o$" -!+o= is considered an employee and employer at the same time% The
term <*/#*$= means that the !or"er has satisfied the re'irements for entitlement to the benefitsprovided for nder %A% -o% >644%
3. B+. All services rendered or contribtions paid by a member personally and those that !ere paid by
the employers to either *ystem shall be considered in the comptation of benefits !hich may be claimed
from either or both *ystems%=o!ever$ the amont of benefits to be paid by one *ystem shall be in proportion
to the services rendered or periods of contribtions made to that *ystem% The benefits are
a%ld#age benefit+
b%5isability benefit+
c%*rvivorship benefit+
d%*ic"ness benefit+
e% Jedicare benefit$ provided that the member shall claim said benefit from the *ystem !here he !as last a
member+ andf% *ch other benefits common to both *ystems that may be availed of throgh totali;ation%
. To*;o@ w' --*&#*. # Totali;ation applies in the follo!ing instances
a%if a !or"er is not 'alified for any benefits from both *ystems+ or
b%if a !or"er in the pblic sector is not 'alified for any benefits from the 2*&*+ or
c%if a !or"er in the private sector is not 'alified for any benefits from the ***%
or prposes of comptation of benefits$ totali;ation applies in all cases so that the contribtions made by the
!or"er#member in both *ystems shall provide ma8imm benefits !hich other!ise !ill not be available% &n no
case shall the contribtion be lost or forfeited%
. E& wo!! + o >*" ! o*;o. # &f after totali;ation$ the !or"er#member still does not 'alify
for any benefit$ the member !ill then get !hatever benefits correspond to hisFher contribtions in either or both
*ystems%
. E& wo!! >*+ o! #+ #o' S$+,+.# &f a !or"er 'alifies for benefits in both
*ystems$ o*;o +'** not --*$%
*. E& o o7!*--/ -!o"+ o &!"#* +!7&+. # verlapping periods of creditable services or
contribtions in both *ystems shall be credited only once for prposes of totali;ation% +;verlappin of
periods- refers to the periods dring !hich a !or"er simltaneosly contribtes to both *ystems%
D. EMPLOYEE9S COMPENSATION COVERAGE AND WHEN COMPENSABLE.
. G!* &o7!/. The follo!ing shall be covered by the Employees’ Compensation Program (ECP)
1%All employers+
%Every employee not over si8ty (6.) years of age+
7% An employee over 6. years of age !ho had been paying contribtions to the *ystem (2*&*F***) prior to agesi8ty (6.) and has not been complsorily retired+ and
,% Any employee !ho is coverable by both the 2*&* and *** and shold be complsorily covered by both
*ystems%
#. S&o!+ o ,-*o$+ &o7!" #$ ' ECP. # The follo!ing sectors are covered nder the ECP
1% All pblic sector employees inclding those of government#o!ned andFor controlled corporations and local
government nits covered by the 2*&*+
% All employees in the private sector covered by the ***+ and
7% verseas ilipino !or"ers (<s)$ namely
a% ilipino seafarers complsorily covered nder the ***%
b% Land#based contract !or"ers provided that their employer$ natral or :ridical$ is engaged in any trade$
d%&n the /o7!, +&o! $ the follo!ing are o eligible to form employees’ organi;ations
a% =igh#level employees !hose fnctions are normally considered as policy#ma"ing or managerial or !hose
dties are of a highly confidential natre are not eligible to :oin the organi;ation of ran"#and#file government
employees+
b% Jembers of the Armed orces of the Philippines+
c% Police officers+
d% Policemen+
e% iremen+ and
f% 0ail gards%
3. B!// . &t refers to a grop of employees sharing mtal interests !ithin a given employer nit$
comprised of all or less than all of the entire body of employees in the employer nit or any specific occpational
or geographical groping !ithin sch employer nit% &t may also refer to the grop or clster of :obs or positions
!ithin the employer’s establishment that spports the labor organi;ation !hich is applying for registration%
() T++ o "!, ' &o+&$ o --!o-! #!// . There is no hard and fast rle to
determine the valid formation of a bargaining nit% =o!ever$ the follo!ing o! (5) "o&!+ may be sed to
determine its validity
(1) S#+* ,* !+ "o&!% # The employees soght to be represented by the collective
bargaining agent mst have sbstantial mtal interest in terms of employment and !or"ing conditions
as evinced by the type of !or" they perform% &t is characteri;ed by similarity of employment stats$ same
dties and responsibilities and sbstantially similar compensation and !or"ing conditions%
() G*o# "o&!. # The determination of the bargaining nit is based on the w** o ' ,-*o$+% &t is
called 2lobedoctrine becase this principle !as first ennciated in the Knited *tates case of G*o#
M&' " S,-/ Co.6J3 NLRB 25 (138)K !here it !as rled$ in defining the appropriate
bargaining nit$ that in a case !here the company’s prodction !or"ers can be considered either as a
single bargaining nit appropriate for prposes of collective bargaining or as three (7) separate and
distinct bargaining nits$ the determining factor is the w** o! "+! of the !or"ers themselves%
(7) Co**&7 #!// '+o!$ "o&!. # This principle pts premim to the prior collective bargaining
history and affinity of the employees in determining the appropriate bargaining nit% =o!ever$ the
e8istence of a prior collective bargaining history has been held as neither decisive nor conclsive in the
determination of !hat constittes an appropriate bargaining nit%
(,) E,-*o$, ++ "o&!. # The determination of the appropriate bargaining nit is based on theemployment stats of the employees% or e8ample$ casal employees and those employed on a day#to#
day basis do not have the mtality or commnity of interest !ith reglar and permanent employees%
=ence$ their inclsion in the bargaining nit composed of the latter is not :stified%
5. B!// /. The sole and e8clsive bargaining agent is chosen throgh any of the follo!ing modes
. Vo*!$ !&o/o. &t refers to the process by !hich a legitimate labor nion is volntarily recogni;ed
by the employer as the e8clsive bargaining representative or agent in a bargaining nit% &t is proper only in
cases !here there iso*$ o */, *#o! o!/;o e8isting and operating in a bargaining nit% &t
cannot be done in case there are t!o or more nions in contention%
#. C!&o *&o. &t refers to the process of determining throgh secret ballot the sole and e8clsive
bargaining agent of the employees in an appropriate bargaining nit for prposes of collective bargaining
negotiations% A certification election is condcted only pon the order of the Jed#Arbiter of the Brea of Labor elations (BL)%
() I o!/;" +#*+',. &n case of a petition filed by a legitimate organi;ation involving
an unoranied establishment$ the Jed#Arbiter is re'ired to immediately order the condct of a
certification election pon filing of a petition for certification election by a legitimate labor organi;ation% The
t!enty#five percent (/N) minimm spport of the employees in the bargaining nit !hich is re'ired in
?organi;ed establishments@ is not necessary in the case of ?norgani;ed establishments%@
() I o!/;" +#*+',. The Jed#Arbiter is re'ired to atomatically order the condct of a
certification election by secret ballot in an organi;ed establishment as soon as the follo!ing re'isites are
flly met
1% That a petition 'estioning the ma:ority stats of the incmbent bargaining agent is filed before the
&n pholding this reversal of his earlier resoltion by the 5LE *ecretary$ the *preme Cort ratiocinated$ ths
?&t is clear from this$ that !hat the 5LE *ecretary considered in reversing its earlier rlings !as not the petition
of the employer bt the letter#appeals that the employees sent to his office denoncing the irreglarities committed dring
the Agst .$ 1434 certification election%The petition of private respondent !as simply the occasion for the employees to
voice their protests against the election% Private respondent =P& attached to its *pplemental Appeal filed on *eptember /$
1434 the affidavits and appeals of more or less >3, employees !ho claimed that they had been disfranchised$ as a reslt
of !hich they !ere not able to cast their votes at the Agst .$ 1434 election% &t !as the protests of employees !hich
moved the 5LE to reconsider its previos resoltion of ebrary 1,$ 1441$ pholding the election%
888
?&n this case$ petitioner maintains that private respondent did not ma"e any protest regarding the alleged
irreglarities (e%g%$ massive disfranchisement of employees) dring the election% =ence$ the appeal and motions for
reconsideration of private respondent =P& shold have been dismissed smmarily%
?The complaint in this case !as that a nmber of employees !ere not able to cast their votes becase they !ere
not properly notified of the date% They cold not therefore have filed their protests !ithin five (/) days% At all events$ the
*olicitor 2eneral states$ that the protests !ere not filed !ithin five (/) days$ is a mere technicality !hich shold not be
allo!ed to prevail over the !or"ers’ !elfare% As this Cort stressed in L- Pictres$ &nc% v% Phil% Jsicians 2ild$ H1 *CA
17 (1461)I$ it is essential that the employees mst be accorded an opportnity to freely and intelligently determine !hich
labor organi;ation shall act in their behalf% The !or"ers in this case !ere denied this opportnity% -ot only !ere a
sbstantial nmber of them disfranchised$ there !ere$ in addition$ allegations of frad and other irreglarities !hich pt in
'estion the integrity of the election% <or"ers !rote letters and made complaints protesting the condct of the election% Theeport of Jed#Arbiter Pra !ho investigated these allegations fond the allegations of frad and irreglarities to be tre%
?&n one case (citing *onfederation of *iti2ens Labor =nions '. Noriel, 0.. No. L->?@!. Septe"ber 1, 1@8,
11? S*A ?@)$ this Cort invalidated a certification election pon a sho!ing of disfranchisement$ lac" of secrecy in the
voting and bribery% <e hold the same in this case% The !or"ers’ right to self#organi;ation as enshrined in both the
Constittion and Labor Code !old be rendered ngatory if their right to choose their collective bargaining representative
!ere denied% &ndeed$ the policy of the Labor Code favors the holding of a certification election as the most conclsive !ay
of choosing the labor organi;ation to represent !or"ers in a collective bargaining nit% &n case of dobt$ the dobt shold be
resolved in favor of the holding of a certification election%@
<R!= *&o "+/+'" !o, <*!= o *&o. &n !! *&o$ there !as a valid
certification election bt becase of certain circmstances$ the election is nllified and another one is ordered
to trly reflect the !ill and sentiment of the electorate#employees in the choice of their bargaining
representative% &n *! o *&o$ the nmber of votes cast in the certification or consent election is less
than the ma:ority of the nmber of eligible voters and there are no challenged votes that cold materially
change the reslts of the election%[;" Conse'ently$ a motion for the immediate holding of another
certification or consent election !ithin +? () ,o'+ from the date of declaration of the failre of election
may be filed%[@"
. Co+ *&o. &t refers to the process of determining throgh secret ballot the sole and e8clsive
representative of the employees in an appropriate bargaining nit for prposes of collective bargaining or
negotiation% &t is volntarily agreed pon by the parties$ !ith or !ithot the intervention of the 5epartment of
Labor and Employment%
• Co+ *&o " &!&o *&o6 "+/+'". A consent election is one mtally
agreed pon by the parties$ !ith or !ithot the intervention by the 5LE$ its prpose being merely to
determine the isse of ma:ority representation of all the !or"ers in an appropriate collective bargaining nit+
!hile a certification election is one !hich is ordered by the 5LE and is aimed at determining the sole
and e8clsive bargaining agent of all the employees in an appropriate bargaining nit for the prpose of
collective bargaining% rom the very natre of consent election$ it is a separate and distinct process and
has nothing to do !ith the import and effect of a certification election% &n fact$ a &o+ election may be
condcted even dring the pendency of a &!&o election by mtal agreement of the contending
nions% Conse'ently$ the Jed#Arbiter is not allo!ed to isse a formal order calling for the condct of a
certification election% &nstead$ he shold enter the fact of the agreement in the mintes of the hearing !hich
shold then be signed by the parties and attested to by the Jed#Arbiter% The reslts thereof shall constitte
a #! to the holding of a certification election for o (1) $! from the holding of sch consent election%
<here an appeal has been filed from the reslts of the consent election$ the rnning of the one#year period
is sspended ntil the decision on appeal has become final and e8ectory%
4. A*o o ' *o&* o w' ,o'! o. Affiliation !ith a federation or a national nion is principally
for the prpose of strengthening the collective bargaining leverage of the *% An <*= refers to (a)
anindependent union affiliated !ith a federation or a national nion+ or (b) a local chapter (formerly "no!n as
?chartered local@) !hich has been sbse'ently granted "-" !/+!o bt did not disaffiliate from
the federation or national nion !hich created it% Technically$ a local chapter created throgh chartering nder
Article 7,#A of the Labor Code cannot be properly called an <*= of a federation or a national nion if it
has not ac'ired any "-" !/+!o of its o!n%
• So, -!&-*+ o *o.
1% The relationship bet!een the affiliate nion (independent nion) and the mother nion (federation or
national nion) is that of -!&-*/ !*o+'-% T' * o + ' -!&-* " '
,o'! o6 ' /. This principle applies in the case of a local chapter created by a federation or a
national nion%
% Affiliation does not give the mother federation the license to act independently of the affiliate nion% &t only
gives rise to a contract of agency$ !here the former acts in representation of the latter%
7% The appendage of the federation’s acronym to the affiliate nion’s name in the registration !ith the Brea
of Labor elations does not change the principal#agent relationship bet!een them% *ch inclsion of the
acronym is merely to indicate that the local nion is affiliated !ith the federation or national nion at the
time of the registration% &t does not mean that the affiliate nion cannot independently stand on its o!n%
. D+*o o ' *o&* o !o, ' ,o'! o. The right of the affiliate nion to disaffiliate from its
mother federation or national nion is a constittionally#garanteed right !hich may be invo"ed by the former
$ ,% An affiliate nion is a separate and volntary association free to serve the interest of all its members #
consistent !ith the freedom of association garanteed in the Constittion%
• So, -!&-*+ o "+*o.
1% 5isaffiliation shold be approved by the ma:ority of the nion members%
% 5isaffiliation does not divest an affiliate nion of its legal personality%
7% 5isaffiliation of an affiliate nion is not an act of disloyalty%
,% 5isaffiliation for prposes of forming a ne! nion does not terminate the stats of the members thereof as
employees of the company%
/% 5isaffiliation terminates the right to chec"#off federation des%
6% 5isaffiliation does not affect CBA% &t does not operate to amend it or change the administration of the
contract%
8. S#+o!$ "o&!. A $ , "!/ ' 4$! *, o ' CBA6 the bargaining agent may
lose its ma:ority stats as !hen there e8ists a o +&'+, o! +-* !hich completely changes the sitation of
the employer and the bargaining agent in terms of the latter’s membership$ strctre and others% To determine
ma:ority spport of the members of the bargaining nit being represented by the bargaining agent$ a petition for
certification election may be filed to determine !hich of the nions has the ma:ority stats% The nion certified as
the ne! sole and e8clsive bargaining agent !ill ths +#+ the previos one as a party to the e8isting
CBA% This is allo!ed nder this doctrine%
. Uo "+ " +-&* ++++,+. All nions are athori;ed to collect reasonable amonts
for ,,#!+'- +6 o "+6 ++++,+ " + % This is done throgh <&'&o= !hich is themethod of dedcting by the employer from the employee’s pay at prescribed periods$ of any amont de for
sch fees$ fines or assessments%
R>!,+ o! 7*"$. To be valid$ the follo!ing re'isites shold be complied !ith
(1) Athori;ation by a w! !+o*o o ' ,o!$ o ** ' ,,#!+ at a general membership
meeting dly called for the prpose+
() *ecretary’s !&o!" o ' ,+ of said meeting+ and
(7) I"7"* w! 'o!;o+ for chec"#off dly signed by the employees concerned%
The la! strictly prohibits the chec"#off from any amont de an employee of any special assessment$ attorney’s
fees$ negotiation fees or any other e8traordinary fees w'o ' "7"* w! 'o!;o dly signed
by the employee% *ch athori;ation mst specifically state the amont$ prpose and beneficiary of the
dedction% The prpose of the individal !ritten athori;ation is to protect the employees from n!arranted
practices that diminish their compensation !ithot their "no!ledge or consent%
. A/&$ +. This term refers to the reasonable des and other fees that may be collected by
the #!// /from o,,#!+ !ho availed of the benefits from the CBA !hich
said / sccessflly negotiated and conclded !ith the employer% &t is called ?/&$ fee@ becase it is paid
to sch ?bargaining /@ of !hich they are not members bt !hich represented them in the CBA negotiations%
The */* #++ of the bargaining agent’s right to agency fees is '! &o!&* o! +o!$6 # >+
&o!&*$ deriving from the established principle that non#bargaining nion employees may o +*$
!&' ',+*7+ by benefiting from employment conditions negotiated by the bargaining agent%
• So, -!&-*+ o /&$ +.
1% -o individal !ritten athori;ation is re'ired to chec"#off agency fees% The fact of acceptance by the non#
bargaining agent members is all that is re'ired to :stify sch chec"#off of agency fees%
% Employer has the dty to chec"#off agency fees%
7% -on#members of the bargaining agent need not become members thereof% Their acceptance of the benefits
flo!ing from the CBA and their act of paying the agency fees do not ma"e them members thereof%
B. RIGHT TO COLLECTIVE BARGAINING.
1. D$ o #!/ &o**&7*$. The dty to bargain collectively means the performance of a ,* o#*/o
o , and convene promptly and e8peditiosly /oo" ' for the prpose of /o/
/!, !ith respect to !ages$ hors of !or" and all other terms and conditions of employment incldingproposals for ad:sting any/!7&+ or 'estions arising nder sch agreement and e8ecting a contract
incorporating sch agreements if re'ested by either party # +&' "$ "o+ o &o,-* $ -!$ o
/! o -!o-o+* o! o , $ &o&++o.
() W' '! + #+& o CBA. &n the absence of an agreement or other volntary arrangement
providing for a more e8peditios manner of collective bargaining$ it shall be the dty of employer and the
representatives of the employeesto#!/ &o**&7*$ in accordance !ith the provisions of the Labor
Code%
(#) W' '! + CBA. <hen there is a CBA$ the dty to bargain collectively shall mean that neither party
shall terminate nor modify sch agreement dring its lifetime% =o!ever$ either party can serve a !ritten
notice to terminate or modify the agreement *+ +?$ (0) "$+ -!o! o + ?-!o " % &t shall be
the dty of both parties to "eep the ++ >o and to contine in fll force and effect the terms and
conditions of the e8isting agreement dring the 6.#day period andFor ntil a ne! agreement is reached by
the parties% The said 6. days is called the <!"o, -!o"=becase it is the only time !hen the la! allo!s
the parties to freely serve a notice to terminate$ alter or modify the e8isting CBA% &t is also the time !hen the
ma:ority stats of the bargaining agent may be challenged by another nion by filing the appropriate petition
for certification election%
2. Co**&7 B!// A/!, (CBA). &t refers to the negotiated contract bet!een a
dly !&o/;" or &!" e8clsive bargaining agent of !or"ers and the employer concerning !ages$ hors
of !or" and all other terms and conditions of employment in the appropriate bargaining nit$ inclding mandatory
provisions for grievances and arbitration machineries% 5ring its lifetime$ the CBA is considered the *w
#w ' -!+ # the collective bargaining agent and its members$ on the one hand$ and the employer$ on
the other%
. M"o!$ -!o7+o+ o CBA. The follo!ing are mandatorily re'ired to be embodied in the CBA
(1) G!7& P!o&"!. &t refers to the internal rles of procedre established by the parties in their CBA
!ith volntary arbitration as the terminal step$ !hich are intended to resolve all isses arising from (1) the
interpretation or implementation of their CBA or () the interpretation or enforcement of company
personnel policies% &t is that part of the CBA !hich provides for a peacefl !ay of settling differences and
misnderstanding bet!een the parties%
(2) Vo*!$ A!#!o. &t refers to the mode of settling labor#management disptes in !hich the parties
select an impartial third person called <Vo*!$ A!#!o!= !ho is tas"ed to decide on the merits of the
case and !hose decision is final and e8ectory%
(3) No S!No6 Lo&o C*+. &t is a clase in the CBA !hich indicates the respective commitments of
the parties thereto not to stage a stri"e$ on the part of the nion$ and not to condct a loc"ot$ on the part
the !or"ers’ representative shold be elected directly by the employees at large+ !hile those in the
2C are nominated solely by the bargaining agent%
4% ?A--*+.= 9 Any decision made by the LJC is not ?appealable@ to any office or athority+ !hile the
decision of the 2C shold be elevated to volntary arbitration if not resolved !ith finality by the 2C%
#. D!o o CBA. A CBA has a lifetime of 4 $!+ rec"oned !o, ' &7$ o ' CBA% The
follo!ing principles are !orthy of note
1% As far as the right of the bargaining agent to represent the employees covered by the bargaining nit
(representation aspect of the CBA) 9 4 $!+.
% A** o'! -!o7+o+ of the CBA (#o' &oo,& " o&oo,& -!o7+o+) 9 *hold be re#
negotiated$ ?&- +" !-!+o +-&6 after the lapse of the !+ 3 $!+ o ' 4$!
*, thereof% *ch re#negotiation$ ho!ever$ shold only pertain to the terms and conditions of theparties’ relationship for the *+ !,/ 2 $!+ of the CBA’s /#year term%
7% F!"o, -!o" 9 refers to the *+ 0 "$+ ,,"*$ -!&"/ ' ?-!$ " o ' 4$! !,
o ' CBA !hen the ma:ority stats of the e8isting bargaining agent !hich conclded the CBA may be
challenged by another nionFs by filing a petition for certification election%
3. Uo +&!$ &*+. &t is a stiplation in a CBA !hich re'ires mandatory membership in the sole and
e8clsive collective bargaining agent !hich sccessflly negotiated said CBA as a condition for contined
employment% The-!-o+ of a nion secrity arrangement is to garantee the contined e8istence of the nion
throgh o!&" ,,#!+'- for the benefit of the !or"ers% A** ! '!+ (w ,-*o$+) are
mandatorily re'ired to :oin the bargaining agent as a condition for their contined employment%
1% Employees !ho$ at the time the nion secrity agreement ta"es effect$ are bona-fide members of
a !*/o+organi;ation !hich prohibits its members from :oining labor nions on religios
gronds JR*/o+ O#&o!+K.
% Employees already in the service and *!"$ ,,#!+ o o o'! ' ' #!// / at the
time the nion secrity agreement too" effect%
7% Co"* ,-*o$+ !ho are ?&*"" from the ran"#and#file or spervisory bargaining nit%
,% Employees ?&*"" from the nion secrity clase by ?-!++ terms of the agreement%
C*++&o o o +&!$ /!,+.
1% C*o+" +'o- /!, &t is a scheme in !hich$ by agreement bet!een the employer and its employees
or their representatives$ no person may be employed in any or certain agreed departments of the enterprise
nless he or she is$ becomes$ and$ for the dration of the agreement$ remains a member in good standing of
a nion entirely comprised of or of !hich the employees in interest are a part%
% Uo +'o- /!, There is nion shop !hen all ne! reglar employees are re'ired to :oin the nion
!ithin a certain period as a condition for their contined employment% The role of a Knion *hop provision is to
compel the membership of those !ho are not yet nion members% Knder this scheme$ the employer is given
the freedom to hire and employ any person !ho is not a member of the bargaining agent% nce sch person
becomes an employee$ he is re'ired to become a member of the bargaining agent and to remain as sch
member in good standing for the !hole period of the effectivity of the CBA as a condition for his contined
employment%
7% Mo"" o +'o- /!, Employees nder this arrangement !ho are not nion members at the
time of the signing or e8ection of the CBA are not re'ired to :oin the bargaining nion% =o!ever$ any and all
!or"ers hired or employed after the signing or e8ection of the CBA are re'ired to :oin the bargaining nion%
,% M& o ,,#!+'- /!, There is maintenance of membership shop !hen employees$
!ho are nion members as of the effective date of the agreement$ or !ho thereafter become members$ mst
maintain nion membership as a condition for contined employment ntil they are promoted or transferred
ot of the bargaining nit$ or the agreement is terminated%
5. U! L#o! P!&& (ULP) Co**&7 B!//.
(1) B!// #" '. Bad faith is a 'estion of fact the determination of !hich !ill depend pon the
circmstances of each case% 2ood faith bargaining re'ires that claims made by either bargainer shold be
honest claims% &t !old not be far#fetched to reach the conclsion that bargaining lac"s good faith !hen an
employer mechanically repeats claim of inability to pay !ithot ma"ing the slightest effort to sbstantiate the
claim% nce proved$ the bad faith of the party !ill ma"e it liable for KLP% &t mst be noted that
a%Parties have no obligation to precipitately agree to the proposals of each other%
b% Ja"ing a promise dring the CBA negotiations$ not an indication of bad faith%
c% Adamant stance reslting in an impasse$ not an indicim of bad faith%
d% Allegations of bad faith !iped ot !ith the signing of the CBA%
(2) R+* o #!/. The employer’s refsal to sbmit an ans!er or reply to the !ritten bargaining
proposals of the certified bargaining nion is KLP% <hile the la! does not compel the parties to reach an
agreement$ it does contemplate that both parties !ill approach the negotiation !ith an open mind and ma"e
a reasonable effort to reach a common grond of agreement%
E?,-*+%
G!* M**/ Co!-o!o 7. CA6 JG.R. No. 15826 F#!!$ 116 2005K # The *preme Cort fondthe petitioner gilty of KLP for refsing to send a conter#proposal to the nion and to bargain ane! on the
economic terms of the CBA%
Co*/o " S " L! 7. A++o&o o E,-*o$+ " F&*$ o L!6 JG.R. No. 1515816
S-,#! 16 2000K The petitioner school !as declared gilty of nfair labor practice !hen it failed to
ma"e a timely reply to the proposals of the certified bargaining nion more than a month after the same
!ere sbmitted to it% &n e8plaining its failre to reply$ the school merely offered the feeble e8cse that its
Board of Trstees had not yet convened to discss the matter% Clearly$ its actation sho!ed a lac" of
sincere desire to negotiate the CBA thereby rendering it gilty of an nfair labor practice%
(3) I"7"* #!//. The employer’s act of negotiating !ith individal members of the bargaining agent
is KLP% This is so becase once a bargaining agent has been recogni;ed or certified$ the employer shold
bargain only there!ith and not !ith the individal members thereof%
(5) B* +$ #!//. This means ma"ing e8aggerated or nreasonable proposals% This "ind of KLP can
only be committed by the #!// /%
(4) S!& #!//. This means ?going throgh the motions of negotiating@ !ithot any legal intent to
reach an agreement% This "ind of KLP can only be committed by the ,-*o$! %
4. U! L#o! P!&&. -ot all nfair acts constitte KLP% The act complained of as KLP mst have a
pro8imate and casal connection !ith the e8ercise of the employees’ !/' o +*o!/;o " &o**&7
#!// o! o ' o#+!7& o CBA. *ans this connection$ the nfair acts cannot be considered KLP%
() N! o ULP. &t is both &7* and &!,* in natre% &ts civil aspect incldes claims for actal$ moral ande8emplary damages$ attorney’s fees and other affirmative reliefs% The Labor Arbiters have :risdiction over
the civil aspect+ !hile the reglar corts have :risdiction over the criminal aspect%
(#) ULP+ o ,-*o$!+. The follo!ing are the KLPs of employers nder Article ,3 of the Labor Code
(a) To interfere !ith$ restrain or coerce employees in the e8ercise of their right to self#organi;ation+
(b) To re'ire as a condition of employment that a person or an employee shall not :oin a labor organi;ation
or shall !ithdra! from one to !hich he belongs ( YELLOW DOG CONTRACT)+
(c) To contract ot services or fnctions being performed by nion members !hen sch !ill interfere !ith$
restrain or coerce employees in the e8ercise of their rights to self#organi;ation
(CONTRACTUALIATION)+
(d) To initiate$ dominate$ assist or other!ise interfere !ith the formation or administration of any labor
organi;ation$ inclding the giving of financial or other spport to it or its organi;ers or
spporters (COMPANY UNION)+
(e) To discriminate in regard to !ages$ hors of !or" and other terms and conditions of employment in order
to encorage or discorage membership in any labor organi;ation (DISCRIMINATION) %
-othing in this Code or in any other la! shall stop the parties from re'iring membership in a
recogni;ed collective bargaining agent as a condition for employment$ e8cept those employees !ho are
already members of another nion at the time of the signing of the collective bargaining
agreement (UNION SECURITY)%
Employees of an appropriate bargaining nit !ho are not members of the recogni;ed collective
bargaining agent may be assessed a reasonable fee e'ivalent to the des and other fees paid by
members of the recogni;ed collective bargaining agent$ if sch non#nion members accept the benefits
nder the collective bargaining agreement ro'ided,that the individal athori;ation re'ired nder
Article /. H,1I$ paragraph (o) of this Code shall not apply to the non#members of the recogni;ed
collective bargaining agent (AGENCY FEE)
(f) To dismiss$ discharge or other!ise pre:dice or discriminate against an employee for having given or
being abot to give testimony nder this Code (THIS IS THE ONLY ULP WHICH NEED NOT BE
CONNECTED TO THE EXERCISE OF THE EMPLOYEES OF THEIR RIGHT TO SELF
ORGANIATION AND COLLECTIVE BARGAINING)+
C4#!097#'93 <7s:
(g) To violate the dty to bargain collectively as prescribed by the Labor Code+
(h) To pay negotiation or attorney’s fees to the nion or its officers or agents as part of the settlement of any
isse in collective bargaining or any other dispte+ or
(i) To violate a CBA bt only !hen the violation is </!o++= in character !hich means flagrant andFor
malicios refsal by the,-*o$! to comply !ith the &oo,& provisions of the CBA%
(&) ULP+ o *#o! o!/;o+. Knder Article ,4 of the Labor Code$ it shall be nfair labor practice for a
labor organi;ation$ its officers$ agents or representatives
(a) To restrain or coerce employees in the e8ercise of their right to self#organi;ation% =o!ever$ a labor
organi;ation shall have the right to prescribe its o!n rles !ith respect to the ac'isition or retention of
(b) To case or attempt to case an employer to discriminate against an employee$ inclding discrimination
against an employee !ith respect to !hom membership in sch organi;ation has been denied or to
terminate an employee on any grond other than the sal terms and conditions nder !hich
membership or contination of membership is made available to other members+
(c) To violate the dty$ or refse to bargain collectively !ith the employer$ provided it is the representative of
the employees+
(d) To case or attempt to case an employer to pay or deliver or agree to pay or deliver any money or other
things of vale$ in the natre of an e8action$ for services !hich are not performed or not to beperformed$ inclding the demand for fee for nion negotiations (ANTIFEATHER BEDDING)+
(e) To as" for or accept negotiation or attorney’s fees from employers as part of the settlement of any isse
in collective bargaining or any other dispte+ or
(f) To violate a CBA bt only !hen the violation is </!o++= in character !hich means flagrant andFor
malicios refsal by the*#o! o!/;o6 + o&!+6 /+ o! !-!+7+ to comply !ith
the &oo,& provisions of the CBA%
C. RIGHT TO PEACEFUL CONCERTED ACTIVITIES.
1. Fo!,+ o Co&!" A&7+. There are three (7) forms of concerted activities$ namely
() S! means any temporary stoppage of !or" by the concerted action of the employees as a reslt of an
indstrial or labor dispte% &t encompasses slo!do!ns$ mass leaves$ sitdo!ns$ overtime boycott$ attempts to
damage$ destroy or sabotage plant e'ipment and facilities and similar activities and +-o!/ #$ 'wo!!+ o &*o+*$ &!o--" '! o! &**$ +'7 '"+ ! '! o *" o& o +! +
!+* o CBA ""*o&.D$E
(#) Lo&o means the temporary refsal of an employer to frnish !or" as a reslt of an indstrial or labor
dispte% &t consists of shtdo!ns$ mass retrenchment and dismissals or the employer’s act of e8clding
employees !ho are nion members%
(&) P&/ means the act of !or"ers in peaceflly marching to and fro before an establishment involved in
a labor dispte generally accompanied by the carrying and display of signs$ placards and banners intended
to inform the pblic abot the dispte%
2. W'o ,$ "&*! +! nly a dly recogni;ed or certified #!// / may declare a stri"e% A
minority nion can never declare a stri"e% &n o!/;" establishments$ any legitimate labor organi;ation in
the establishment may declare a stri"e bt only on the grond of KLP%
3. W'o ,$ "&*! *o&o The employer can declare a loc"ot%
5. R>++ o! 7*" +!. The follo!ing are the seven (>) procedral bt ,"o!$ re'isites
1+ !>+ # &t mst be based on a valid and factal grond+
2" !>+ # A notice of stri"e mst be filed !ith the -CJB#5LE+
3!" !>+ # A notice mst be served to the -CJB#5LE at least t!enty#for (,) hors prior to the ta"ing of
the stri"e vote by secret balloting$ informing said office of the decision to condct a stri"e vote$ and the date$
place$ and time thereof+
5' !>+ # A stri"e vote mst be ta"en !here a ma:ority of the members of the nion obtained by secret
ballot in a meeting called for the prpose$ mst approve it+
4' !>+ # A stri"e vote report shold be sbmitted to the -CJB#5LE at least seven (>) days before the
intended date of the stri"e+
' !>+ # E8cept in cases of nion#bsting$ the cooling#off period of 14 "$+$ in the case of ! *#o! -!&&+$ or 30 "$+$ in the case of &o**&7 #!// ""*o&$ shold be flly observed+ and
8' !>+ # The 8"$ w/ -!o" o! +! # rec"oned after the sbmission of a stri"e vote report to
the -CJB#5LE shold also be flly observed in all cases%
4. R>++ o! 7*" *o&o. The follo!ing are the seven (>) procedral bt ,"o!$ re'isites
1+ !>+ # &t mst be based on a valid and factal grond+
2" !>+ # A notice of loc"ot mst be filed !ith the -CJB#5LE+
3!" !>+ # A notice mst be served to the -CJB#5LE at least t!enty#for (,) hors prior to the ta"ing of
the loc"ot vote by secret balloting$ informing said office of the decision to condct a loc"ot vote$ and the date$
place$ and time thereof+
5' !>+ # A loc"ot vote mst be ta"en !here a ma:ority of the members of the Board of 5irectors of the
corporation or association or of the partners in a partnership$ obtained by secret ballot in a meeting called for the
prpose$ mst approve it+
4' !>+ # A loc"ot vote report shold be sbmitted to the -CJB#5LE at least seven (>) days before the
intended date of the loc"ot+
' !>+ # The cooling#off period of 1/ days$ in the case of nfair labor practices$ or 7. days$ in the case of
collective bargaining deadloc"$ shold be flly observed+ and
8' !>+ # The >#day !aiting period or loc"ot ban rec"oned after the sbmission of the loc"ot vote report
to the -CJB#5LE shold also be flly observed in all cases%
. R>++ o! *w* -&/. The only re'isite for the la!fl condct of pic"eting is that it shold bepeaceflly carried ot% There shold be no violence$ coercion or intimidation attendant thereto% This is so
becase it is flly garanteed nder the freedom of speech and of e8pression and to peaceably assemble to air
grievances nder *ection ,$ Article &&& (Bill of ights) of the constittion$ nli"e stri"e !hich finds its constittional
basis in the grant to !or"ers of the right to condct peacefl concerted activities nder *ection 7$ Article &&&
thereof% T' !>++ o! ' &o"& o 7*" +! ! '!o! o --*&#* o *w* -&/.
W' -& #&o,+ +!. &n distingishing bet!een a pic"et and a stri"e$ the totality of the
circmstances obtaining in a case shold be ta"en into accont%
E?,-*+%
L$ Go'!,* Pow! P!o/!++7 E,-*o$+ UoALUTUCP 7. P'*-- No* O* Co,-$ E!/$ D7*o-,Co!-o!o6 JG.R. No. 1803416 M!&' 306 2011K Petitioner nion contends that there !as no stoppage of !or"+ hence$ they did not stri"e%
Ephemistically$ petitioner nion avers that it ?only engaged in pic"eting$@ and maintains that ?!ithot any !or" stoppage$ Hits officers and
membersI only engaged in 888 protest activity%@ The *preme Cort$ ho!ever$ rled that it !as a stri"e and not pic"eting or protest activity that
petitioner nion staged% &t fond the follo!ing circmstances in spport of sch finding
1% Petitioner nion filed a -otice of *tri"e on 5ecember 3$ 1443 !ith the 5LE gronded on respondent’s prported nfair labor
practices$ i.e.$refsal to bargain collectively$ nion bsting and mass termination%’ n even date$ petitioner Knion declared and staged a stri"e%
% The 5LE *ecretary intervened and issed a etrn#to#<or" rder dated 0anary ,$ 1444$ certifying the labor dispte to the -LC for
complsory arbitration% The rder indicated the follo!ing facts (1) filing of the notice of stri"e+ () staging of the stri"e and ta"ing control over
respondent’s facilities of its Leyte 2eothermal Pro:ect on the same day petitioner nion filed the notice of stri"e+ (7) attempts by the -CJB to
forge a mtally acceptable soltion proved ftile+ (,) in the meantime$ the stri"e contined !ith no settlement in sight placing in :eopardy the
spply of mch needed po!er spply in the L;on and isayas grids%
7% Petitioner nion itself$ in its pleadings$ sed the !ord ?stri"e%@
,% Petitioner nion’s asseverations are belied by the factal findings of the -LC$ as affirmed by the CA ths ?The failre to comply !ith the
mandatory re'isites for the condct of stri"e is both admitted and clearly sho!n on record% =ence$ it is ndispted that no stri"e vote !as
condcted+ li"e!ise$ the cooling#off period !as not observed and that the >#day stri"e ban after the sbmission of the stri"e vote !as not
complied !ith since there !as no stri"e vote ta"en%@
&n fine$ petitioner nion’s bare contention that it did not hold a stri"e cannot trmp the factal findings of the -LC that petitioner nion indeed
strc" against respondent% &n fact$ and more importantly$ petitioner nion failed to comply !ith the re'irements set by la! prior to holding a
stri"e%
S Ro+ Co&Co* P*E,-*o$+Uo 7. Co&Co* Bo*!+P'*+.6 I&.6 JG.R. No+. 15302036 !$ 256 2008K #Petitionerscontendthat!hattheycondcted!as a mere pic"eting and not a stri"e% &n disagreeing to this contention$ the =igh Cort emphasi;ed
that it is not an isse in this case that there !as a labor dispte bet!een the parties as petitioners had notified the respondent of their intention
to stage a stri"e$ and not merely to pic"et% Petitioners’ insistence to stage a stri"e is evident in the fact that an amended notice of stri"e !as
filed even as respondent moved to dismiss the first notice% The basic elements of a stri"e are present in this case 1.6 members of petitioner
Knion$ !hose respective applications for leave of absence on *eptember 1$ 1444 !ere disapproved$ opted not to report for !or" on said
date$ and gathered in front of the company premises to hold a mass protest action% Petitioners deliberately absented themselves and instead
!ore red ribbons and carried placards !ith slogans sch as ?ME* GAJ& *A *T&GE$@ ?PTE*TA GAJ&$@ ?*A=5$ GAAPATA- -2
JA-22A2A<A &PA2LABA-$@ ?CBA#’<A2 BABM&-$@ ?*TP K-&- BK*T&-2%@ They marched to and fro in front of the company’s
premises dring !or"ing hors% Ths$ petitioners engaged in a concerted activity !hich already affected the company’s operations% The mass
concerted activity obviosly constittes a stri"e% Joreover$ the bare fact that petitioners !ere given a Jayor’s permit is not conclsive
evidence that their actionFactivity did not amont to a stri"e% The Jayor’s description of !hat activities petitioners !ere allo!ed to condct is
inconse'ential% To repeat$ !hat is definitive of !hether the action staged by petitioners is a stri"e and not merely a pic"et is the totality of the
circmstances srronding the sitation%
8. A++,-o o !+"&o #$ ' S&!!$ o L#o! o! C!&o o ' L#o! "+- o ' NLRC
o! &o,-*+o!$ !#!o. <hen in the opinion of the 5LE *ecretary$ the labor dispte cases or !ill li"ely
to case a stri"e or loc"ot in an indstry indispensable to the national interest$ he is empo!ered to do either of
t!o () things
1% =e may assme :risdiction over the labor dispte and decide it himself+ or
%=e may certify it to the -LC for complsory arbitration$ in !hich case$ it !ill be the -LC !hich shall hear
and decide it%
This po!er may be e8ercised by the 5LE *ecretary even before the actal staging of a stri"e or loc"ot
since Article 67 HgI does not re'ire the e8istence of a stri"e or loc"ot bt only of a labor dispte involving
national interest%
. N! o A++,-o O!"! o! C!&o O!"!. &t is in the natre of a -o*& -ow! measre% This is
done for the promotion of the common good considering that a prolonged stri"e or loc"ot can be inimical to the
national economy% The 5LE *ecretary is mandated to act to maintain indstrial peace% Ths$ his assming
:risdiction over a labor dispte or his certification thereof to the -LC for complsory arbitration is not intended
to impede the !or"ers’ right to stri"e bt to obtain a speedy settlement of the dispte% &t is confined only in labor
disptes involving "+!+ "+-+#* o ' o* !+% A prolonged stri"e or loc"ot in sch
indstries can be inimical to the national economy and$ therefore$ the sitation is imbed !ith pblic necessityand involves the right of the *tate and the pblic to self#protection%
• E&+ o &!&o o *#o! "+-+ o ' NLRC6 +,*! o 'o+ ++," "!&*$ #$ ' DOLE
S&!!$. The follo!ing are the effects of both assmption or certification of labor disptes
. O "" o! ,-"/ +! o! *o&o. Kpon assmption or certification$ the intended or impending
stri"e or loc"ot is atomatically en:oined$ not!ithstanding the filing of any motion for reconsideration of the
certification order or the non#resoltion of any sch motion !hich may have been dly sbmitted to the
ffice of the 5LE *ecretary%
#. O &* +! o! *o&o. &f a !or" stoppage has already ta"en place at the time of the assmption or
certification$ all stri"ing or loc"ed#ot employees shall immediately retrn to !or" and the employer shall
immediately resme operations and readmit all !or"ers nder the same terms and conditions prevailing
before the stri"e or loc"ot%&. O &++ *!"$ *" o! ,$ # *". All cases bet!een the same parties$ e8cept !here the
assmption or certification order specifies other!ise$ the isses sbmitted for arbitration !hich are already
filed or may be filed and are relevant to or are proper incidents of the certified case$ shall be considered
sbsmed or absorbed by the assmed or certified case$ and shall be decided by the 5LE *ecretary or$
in certified cases$ by the appropriate 5ivision of the -LC%
". O o'! -"/ &++. The parties to an assmed or certified case$ nder pain of contempt$ are
re'ired to inform their consels and the 5LE *ecretary or -LC 5ivision concerned$ of all cases
pending !ith the Labor Arbiters and olntary Arbitrators relative or incident to the assmed or certified
case before it%
. E& o "& o A++,-o o! C!&o O!"!+. The defiance by the nion$ its officers and
members of the 5LE *ecretarys assmption of :risdiction or certification order constittes a valid grond for
dismissal% The follo!ing are the :stifications for the defiant employees’ dismissal
1% A stri"e that is nderta"en ! the issance by the 5LE *ecretary of an assmption or certification order
becomes a prohibited activity and ths illegal% The stri"ing nion o&!+ and ,,#!+$ as a reslt$ are
deemed to have lost their employment stats o! '7/ ow/*$ -!&-" **/* +!%
% rom the moment a !or"er defies a retrn#to#!or" order$ he is deemed to have #"o" '+ o#%
7% By staging a stri"e after the assmption or certification for complsory arbitration$ the !or"ers o! '!
!/' o # !"," o wo!$ having$ in effect$ abandoned their employment%
• So, -!&-*+ o "& o ' ++,-o:&!&o o!"!.
1% All defiant stri"ers$ regardless of !hether they are officers or ordinary members$ are deemed dismissed%
% The assmptionFcertification order may be served at any time of the day or night%
7% The refsal to ac"no!ledge receipt of sch orders and other processes is an apparent attempt to frstrate
the ends of :stice$ hence$ invalid% The nion cannot be allo!ed to th!art the efficacy of the assmption
and retrn#to#!or" orders issed in the national interest throgh the simple e8pediency of refsing to
ac"no!ledge receipt thereof%
,% Period of defiance$ not material+ defiance of less than one (1) day$ sfficient to effect termination of defiant
stri"ers%(U7!+$ o S A/+ E,-*o$+9 UoFFW 7. T' CA6 JG.R. No. 1326 M!&' 26
200K$ the period of defiance !as from %54 .,. o 4%24 -.,. on S-,#! 16 2003)%
10. I**/* S!. &n case of illegal stri"e the liabilities are as follo!s
(1) L#*$ o o&!+ o ' o+. The mere finding or declaration of illegality of a stri"e !ill reslt in thetermination of all nion officers !ho "no!ingly participated therein% &t is not re'ired that the officers shold
commit an illegal act dring the stri"e%
(2) L#*$ o o!"!$ wo!!+. The mere finding or declaration of illegality of a stri"e !ill not reslt in
termination of ordinary nion members% or an ordinary nion member to sffer termination$ it mst be
sho!n that he has committed illegal acts dring the stri"e% Liability for illegal acts shold be determined on
an "7"* #++% &n all cases$ the erring stri"ers mst be identified individally and the specific illegal
acts they each committed shold be described !ith particlarity%
(3) L#*$ o ,-*o$!. The employer is liable to pay bac"!ages$ damages and other affirmative reliefs$
inclding criminal prosection in case of defiance of retrn#to#!or" order%
(5) W7! o **/*$ o +!. The employer may !aive e8pressly or impliedly the illegality of the stri"e%
An employer may be considered to have !aived its right to proceed against the stri"ing employees for alleged commission of illegal acts dring the stri"e !hen$ dring a conference before the Chairman of the
-LC$ it agreed to reinstate them and comply flly !ith the retrn#to#!or" order issed by the 5LE
*ecretary%[*"
11. I&o+. The rle is o temporary or permanent in:nction or restraining order in any case involving or
gro!ing ot of labor disptes shall be issed by any cort or other entity$ ?&- as other!ise provided in
Articles 13 (referring to the in:nction po!er of the -LC) and 6, (referring to the prohibited activities dring
a stri"e or loc"ot) of the same Code%
() R>++ o! L#o! I&o+. A preliminary or permanent in:nction may be granted only after
hearing the testimony of !itnesses and !ith opportnity for cross#e8amination in spport of the allegations
of the complaint or petition made nder oath$ and testimony by !ay of opposition thereto$ if offered$ and
only after a finding of fact by the Commission (-LC)
(a) That prohibited or nla!fl acts have been threatened and !ill be committed and !ill be contined
nless restrained$ bt no in:nction or temporary restraining order shall be issed on accont of any
threat$ prohibited or nla!fl act$ ?&-against the person or persons$ association or organi;ation
ma"ing the threat or committing the prohibited or nla!fl act or actally athori;ing or ratifying the
same after actal "no!ledge thereof%
(b) That sbstantial and irreparable in:ry to petitioners property !ill follo!+
(c) That as to each item of relief to be granted$ greater in:ry !ill be inflicted pon the petitioner by the
denial of relief than !ill be inflicted pon respondents by the granting of relief+
(d) That petitioner has no ade'ate remedy at la!+ and
(e) That the pblic officers charged !ith the dty to protect petitioners property are nable or
n!illing to frnish ade'ate protection%
C ' +! +* # o" ! &n some cases$ in:nctions issed to en:oin the condct of the stri"eitself and not only the commission of illegal or prohibited acts in the corse thereof$ !ere held to be valid%
S M/* Co!-o!o 7. NLRC6 JG.R. No. 11236 106 2003K% # The *preme Cort rled that
in:nction may be issed not only against the commission of illegal acts in the corse of the stri"e bt
against the +! +* % &n this case$ the notice of stri"e filed by the nion has been converted into a
preventive mediation case% =aving been so converted$ a stri"e can no longer be staged based on said
notice% Kpon sch conversion$ the legal effect is that there is no more notice of stri"e to spea" of% <hen the
-CJB ordered the preventive mediation$ the nion had therepon lost the notice of stri"e it had filed%
=o!ever$ the -CJB !hich effected the conversion has$ nder the la!$ no coercive po!ers of in:nction%
Conse'ently$ petitioner company in the instant case soght recorse from the -LC% The -LC$
ho!ever$ issed a T only for the free ingress to and egress from petitioner’s plants$ bt did not en:oin
Joney claims arising ot of employer#employee relationship or by virte of any la! or contract$ involving
ilipino !or"ers for overseas deployment$ inclding claims death and disability benefits and for actal$ moral$
e8emplary and other forms of damages as provided by *ection 1. of %A% -o% 3.,$ as amended by %A% -o%
1..+ and
. U"! ' 2011 NLRC R*+ o P!o&"!%
ther cases as may be provided by la!%["
() 7!++ R/o* D!&o!. This refers to t!o () sitations
(1) Contested cases nder the e8ception clase in Article 13(b) of the Labor Code+ and() <hen the threshold total amont of monetary claims is P/$...%.. or less$ the :risdiction belongs to the
egional 5irector%
• Other issuesH#ases fallin+ un(er the 'uris(i#tion of the La1or Ar1iters. ? Per =urisprudence, the following issues
fall under the =urisdiction of the 7abor (rbiters:
1%&sses involving employees in government#o!ned andFor controlled corporations !ithot original
charters+
%&sses involving alien parties+
7%&llegal dismissal cases involving priests and ministers+
,%Jonetary claims of domestic !or"ers or "asambahay e8ceeding P/"+
1. !+"&o. The -LC e8ercises t!o () "inds of :risdiction
1%;riinal !+"&o over the follo!ing cases
a%I&o o!"!$ *#o! "+-+ to en:oin or restrain any actal or threatened commission of any or
all prohibited or nla!fl acts or to re'ire the performance of a particlar act in any labor dispte !hich$ if
not restrained or performed forth!ith$ may case grave or irreparable damage to any party%
b%I&o +!+ o! *o&o+ nder Article 6, of the Labor Code%
c%Labor disptes casing or li"ely to case a stri"e or loc"ot in an "+!$ "+-+#* o ' o*
!+$ certified to it by the *ecretary of Labor and Employment for complsory arbitration nder Article
67(g) of the Labor Code%%9xclusive appellate !+"&o over the follo!ing cases
a%All cases decided by the Labor Arbiters%
b%Contempt cases decided by the Labor Arbiters%
c%Cases decided by the 5LE egional 5irectors involving recovery of !ages$ simple money claims and
other benefits nder Article 14 of the Labor Code%
2. E& o NLRC !7!+* o L#o! A!#!9+ o!"! o !+,. The follo!ing are the effects
1% n #&w/+ # The employer$ as a $eneral rle$ has to pay the so#called <!+, w/+= of the
employee from the time he !as ordered reinstated by the Labor Arbiter ntil the reversal by the -LC of sch
reinstatement order% The e+ception is !hen there e8ists :stifiable reason for not effecting actal or payroll
reinstatement pending appeal$ as ennciated nder the 6arcia "o&!%[+"
% n !+, 9 &f the employee !as$ pending appeal$ reinstated either to his former positionFsbstantiallye'ivalent position or in the payroll$ the reversal of the reinstatement ordered by the Labor Arbiter !ill not
affect sch reinstatement if the employee elevates his case to the Cort of Appeals or sbse'ently$ to the
*preme Cort% =o!ever$ if the employee no longer elevates the case to the Cort of Appeals or to the
*preme Cort$ the reversal shall mean the end of the litigation$ hence$ the reinstatement of the employee
shold cease as a matter of corse pon the finality of the reversal decision of the -LC%
3. R,"+. The follo!ing are the remedies from the decision$ order or a!ard of the -LC
Fo! ' *o+/ -!$%
a% iling of a motion for reconsideration !ithin ten (1.) calendar days from receipt thereof+ and
b% iling of a le 6/#petition for certiorari !ith the Cort of Appeals !ithin si8ty (6.) days from receipt of the
denial of the motion for reconsideration% (D&+o+ o ' NLRC ! o * "!/ ' -"&$ o
&!o!! -o. A*'o/' + o ' ! o --*6 &!o!! +'o*" # !" + #/
+,*! o ' &o&- o --*)%[E"
Fo! ' w/ -!$%
a% iling of a motion for the issance of a !rit of e8ection !ith the Labor Arbiter o o!/ to enforce the
monetary a!ard or effect reinstatement ordered by the Commission (-LC) on appeal%This is so becase
a petition for certiorari !ith the Cort of Appeals or the *preme Cort shall not stay the e8ection of the
assailed decision nless a restraining order is issed by said corts% [!"Conse'ently$ sch petition shall not
stop the *heriff from enforcing the assailed decision nless a restraining order is issed by the Cort of
Appeals or the *preme Cort%[*"
5. C!" &++. These refer to o* !+ &++ certified to the -LC by the 5LE *ecretary for
prposes of complsory arbitration nder Article 67(g) of the Labor Code%
C. BUREAU OF LABOR RELATIONS MED ARBITERS
1. O!/* !+"&o. The BL has oriinal " exclusive over the follo!ing casesa%I!o o! !-!+o "+-% 9 &t refers to a petition for certification election filed by a dly
registered labor organi;ation !hich is see"ing to be recogni;ed as the sole and e8clsive bargaining agent of
the ran"#and#file employees or spervisory employees$ as the case may be$ in the appropriate bargaining
nit of an establishment%
b%I!o "+-. &t refers to any conflict bet!een and among nion members$ inclding grievances
arising from any violation of the rights and conditions of membership$ violation of or disagreement over any
provision of the nion’s constittion and by#la!s or disptes arising from chartering or affiliation of a nion%
2. A--** !+"&o. The follo!ing are the rles on appeals !ith respect to the BL
a% &n !o "+-+ # 5ecisions of the Jed#Arbiter in inter-union disptes 4certification elections6 are not
appealable to the BL bt to the 5LE *ecretary%
b% &n !o "+-+ # 5ecisions of Jed#Arbiters in intra-union disptes are appealable to the BL%
c% The BL e8ercises appellate :risdiction over ** cases o!// !o, the 5LE egional 5irector
involving the follo!ing isses
1% Knion registration+% Cancellation of certificates of nion registration+ and
7% Complaints for e8amination of nion’s boo"s of acconts%
d% As far as &&**o o o !/+!o is concerned$ in case the decision is rendered by the BL
5irector in the e8ercise of his oriinal :risdiction$ the same may be appealed to the ffice of the 5LE
*ecretary by any party !ithin the same period of ten (1.) days$ copy frnished the opposing party%
3. A",+!7 &o+. &n addition$ the BL has the follo!ing administrative fnctions
a%egistration of labor nions+
b%Geeping of registry of labor nions+
c%Jaintenance and cstody of the files of Collective Bargaining Agreements (CBAs) and other related
agreements%
d% ecords of settlement of labor disptes+ ande% Copies of orders and decisions of olntary Arbitrators%
D. NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)
1. N! o -!o&"/+. The -CJB is o a >+"&* /&$.DE Conse'ently$ its proceedings are
non#litigios in natre% &t does not render decisions in cases broght before it% &ts fnction is confined to the
condct of conciliation and mediation% &t accredits olntary Arbitrators to !hom it refers cases for volntary
arbitration prposes%
2. Co&*o 7+. M"o. &n both conciliation and mediation$ there is a third party called Conciliator (in case
of conciliation) or Jediator (in case of mediation) to !hom the parties sbmit their disptes for prposes of
reconciling their differences or persading them into ad:sting or settling their dispte% The distinction lies on the
e8tent of the po!er and athority granted to the netral third party%
&n ,"o$ there are t!o () classifications1% F&*7 M"o !here the Jediator does not ma"e or offer any opinion+ or
% E7*7 M"o !here the Jediator offers an opinion !hich is o binding on the parties%
&n &o&*o$ the Conciliator is given more po!er and athority in that he may not only offer an opinion on the
isses at hand bt may actally ma"e a bindin$ opinion thereon provided the parties stiplate in advance to this
effect% =is opinion is based on the facts and the la! involved in the controversy before him%
3.P!77 ,"o. Althogh this is not provided in the Labor Code$ the la
