2.

  Promote full employment

I.     Introduction 3.  Ensure equal work opportunities
A.  Constitutional and Statutory Basis regardless of sex, race, or creed
·   Sec. 3, Art. XIII The State shall afford full 4.  Assure the rights of workers to
protection to labor, local and overseas, self-organization, security of
organized and unorganized, and tenure, just and humane
promote full employment and equality of conditions of work, participate in
employment opportunities for all. It shall policy and decision‐making
guarantee the rights of all workers to processes affecting their right and
self‐organization, collective bargaining benefits
and negotiations, and peaceful concerted 5.  Regulate the relations between
activities, including the right to strike in workers and employers
accordance with law. They shall be The basic rights of workers guaranteed
entitled to security of tenure, humane by the Constitution:
conditions of work, and a living wage. 1.  Security of tenure (No employee
They shall also participate in policy and can be dismissed from work except
for a just or authorized cause)
decision‐making processes affecting their
2.  Receive a living wage
rights and benefits as may be provided
3.  Humane working conditions
by law.
4.  Share in the fruits of production
The State shall promote the principle
5.  Organize themselves
of shared responsibility between workers
6.  Conduct collective bargaining or
and employers and the preferential use
negotiation with management
of voluntary modes in settling disputes,
(reach agreement)
including conciliation, and shall enforce
7.  Engage in peaceful concerted
their mutual compliance therewith to
activities including strike
foster industrial peace. The State shall
8.  Participate in policy and decision-
regulate the relations between workers
making processes
and employers, recognizing the right of
·  Sec. 9, Art. II The State shall promote a
labor to its just share in the fruits of
just and dynamic social order that will
production and the right of enterprises to
ensure the prosperity and independence
reasonable returns to investments, and
of the nation and free the people from
to expansion and growth. – balancing of
poverty through policies that provide
interests bet workers right &
adequate social services, promote full
management sanctioned pre
employment, a rising standard of living,
 The aim and reason and,
and an improved quality of life for all.  
therefore, the justification of
·  Sec. 10, Art II The State shall promote
labor laws is SOCIAL JUSTICE.
social justice in all phases of national
 Social Justice – the
development.
humanization of laws and the
·  Sec. 11, Art II The State values the
equalization of social &
dignity of every human person and
economic forces by the State
guarantees full respect for human rights.
so that justice in its rational &
·  Sec. 13, Art. II The State recognizes the
objectively secular conception
vital role of the youth in nation‐building
may at least be approximated.
and shall promote and protect their
 If there is doubt, it is
physical, moral, spiritual, intellectual,
construed in favor of labor.
and social well‐being. It shall inculcate in
The State policy on labor: the youth patriotism and nationalism,
1.  Afford full protection to labor
 and encourage their involvement in ·   Sec. 14, Art. XIII The State shall protect
public and civic affairs. working women by providing safe and
·  Sec. 14, Art. II The State recognizes the healthful working conditions, taking into
role of women in nation‐building, and account their maternal functions, and
shall ensure the fundamental equality such facilities and opportunities that will
before the law of women and men enhance their welfare and enable them
·  Sec. 18, Art. II The State affirms labor as to realize their full potential in the
a primary social economic force. It shall service of the nation
protect the rights of workers and B.  General Principles in Labor Law
promote their welfare. 1.  Existence of Employer-Employee
·  Sec. 20, Art. II The State recognizes the Relationship
indispensable role of the private sector, -    The existence of employer-employee
encourages private enterprise, and relationship, as explained in Book III,
provides incentives to needed is determined by the presence of the
investments. following elements, namely:
·  Sec. 1, Art. III No person shall be a.  selection and engagement of the
deprived of life, liberty, or property employee;
without due process of law, nor shall any b.  payment of wages;
person be denied the equal protection of c.   power to dismiss; and
the laws. d.  power to control the employee’s
·  Sec. 4, Art. III No law shall be passed conduct
abridging the freedom of speech, of *NOTE: the power to control is
expression, or of the press, or the right of the most important element
the people peaceably to assemble and 2.  Liberal Interpretation of labor laws
petition the government for redress of The Labor Code declares that all
grievances. doubts in the implementation
·  Sec. 8, Art. III The right of the people, and interpretation of the
including those employed in the public provisions of the Code, including
and private sectors, to form unions, its implementing rules and
associations, or societies for purposes regulations, shall be resolved in
not contrary to law shall not be favor of labor.
abridged.   Philippine jurisprudence has
·  Sec. 1, Art. XIII The Congress shall give long applied a rule that any
highest priority to the enactment of doubts in the interpretation
measures that protect and enhance the of law, especially the Labor
right of all the people to human dignity, Code, will be resolved in
reduce social, economic, and political favor of labor and against
inequalities, and remove cultural management.
inequities by equitably diffusing wealth 3.  Protection of the rights of management
and political power for the common 4.  Balancing of interests
good.  To balance the conflicting interests
To this end, the State shall regulate of labor and management, not to tilt
the acquisition, ownership, use, and the scale in favor of one over the
disposition of property and its other, but to guarantee that labor
increments. and management stand on equal
·  Sec. 2, Art. XIII The promotion of social footing when bargaining in good
justice shall include the commitment to faith with each other.” (Unicorn
create economic opportunities based on Safety Glass, Inc. v. Basarte, G.R No.
freedom of initiative and self‐reliance. 154689, 25 November 2004)
 5.  Coverage of the Labor Code (7) the degree of dependency of the
a.  Covered employment worker upon the employer for his
-    All employees in all continued employment in that line of
establishments business.
b.  Excluded employment
1.  Gov’t employees Under the economic realities test, the
2.  Managerial employees standard of economic dependence is
3.  Field personnel whether the person is dependent on the
4.  The employer’s family members prospective employer for his continued
who depend on him for support employment in that line of business.
5.  Domestic helpers and persons in
the personal service of another, B.  Jurisdiction over EER; Effect when no EER
and exists
6.  Workers who are paid by results  The Economic Reality Test is used in
as determined under DOLE determining whether an employer-
regulations employee relationship exists
II.     Employer-Employee Relationship – between the parties
determined by LAW, not contract o The economic realities prevailing
A.  Tests to Determine Existence of EER within the activity or between the
1.  Four-fold Test (SPaDisCo) parties are examined, taking into
a.  selection and engagement of the consideration the totality of
employee; (power to hire) circumstances surrounding the
b.  payment of wages; true nature of the relationship
c.  power to dismiss; and between the parties. This is
d.  power to control the employee’s especially appropriate when, as
conduct in this case, there is no written
*NOTE: the power to control is the agreement or contract on which
most important element to base the relationship.
2.  Economic Reality Test C.  When EER does not exist
 considers the whole economic 1.  Independent Contractor/Valid Job
activity, some circumstances that can Contracting
be considered are:   the arrangement whereby
(1) the extent to which the services contractors or subcontractors
performed are an integral part of the supply workers to perform work
employer’s business;  for the principal.
(2) the extent of the worker’s  an arrangement whereby a
investment in equipment and principal outsources a job, work,
facilities;  or service to the contractor who
(3) the nature and degree of control performs these through its
exercised by the employer;  deployed personnel, otherwise
(4) the worker’s opportunity for known as the contractor’s
profit and loss;  workers.
(5) the amount of initiative, skill, 2.  Labor-Only Contracting
judgment or foresight required for  the contractor is a mere agent of
the success of the claimed the principal
independent enterprise;  D.  Management Prerogative
(6) the permanency and duration of  The inherent right of the employer to
the relationship between the worker regulate all aspects of employment.
and the employer; and 
 o “every employer has the
inherent right to regulate,
according to his own
discretion and judgment, all
aspects of employment,
including hiring, work
assignments, working
methods, the time, place and
manner of work, work
supervision, transfer of
employees, lay-off of workers,
and discipline, dismissal, and
recall of employees.”
 Two limitations:
o Good faith
 with due regard to the
rights of labor—verily,
with the principles of
fair play at heart and
justice in mind.
o Employee rights
3. Kinds of Employment
4. Termination of employment