ATTY. PAULINO UNGOS JR.

[LABOR REVIEW] MCLMAGHIRANG

©- memorize by heart / part of his previous exams

CHAPTER 1 – PRELIMINARY CONDITIONS How to know if there is an employer-employee relationship?

LABOR LAW – branch of law that governs and regulates the relationship between The Economic Reality Test - When a worker possesses one attribute of an employee and
employees and employers others of an independent contractor, which make him fall within an intermediate area, he
may be classified under the category of an employee when the economic facts of the
Promulgation of Labor Code : May 1, 1974| Effectivity of Labor Code: November 1, 1974 relation make it more nearly one of the employment than one of the independent
business enterprise with respect to the ends sought to be accomplished. (Sunripe
LABOR STANDARS LABOR RELATIONS WELFARE LAWS Coconut Products Co., Inc. vs CIR, etc., GR No. L-2009, April 30, 1949)
That branch of labor law That branch of labor law that These are status
that prescribes the regulates the activities of intended to provide The Control test- an employer-employee relationship is said to exist where the person for
minimum requirements labor organizations and protection to the whom the services are performed reserves the right to control not only the end result but
for hours of work, prescribes the modes and employee and his also the manner and means utilized to achieve the same.
wages, momentary machinery for the settlement beneficiaries in case of
benefits, welfare of labor disputes including disability, sickness, old What are the elements of Employer – Employee Relationship? ©
benefits and collective bargaining and the age, death and other 1. Selection & engagement of the employee
occupational health and modes and procedure for contingencies that Þ Hiring may be express or implied
safety. terminating employment results in loss of income Þ A written contract is not necessary
or financial burden. Þ There should be an understanding between the parties that one is to render
personal service for the benefit of the other
COVERED NOT COVERED 2. Payment of wages
Þ All employees in the private sector working hours apply to employees in all Þ Must be in consideration of labor
Þ For GOCC establishments and undertakings whether Þ Wage = remuneration or earning
o If created by special charter = for profit or not, EXCLUDING the following: Þ If paid in consideration of the results or finished work, the compensation is not
not covered Þ government employees; considered wages
o If organized under Corporation Þ managerial employees; 3. Power of dismissal
Law = covered Þ field personnel; Þ The person hired is subject to the rules of discipline of the employer
Þ family members of the employer who 4. Power to control the employee’s conduct (Most important element)
depend on him for support; Þ Control should be on BOTH the means and the end
Þ domestic helpers; Þ Jeepney drivers under boundary system are considered employees
Þ persons who provide personal service Þ Agents who do not observe working hours are not employees
to other people; and
Þ workers who are paid by results as © Classification of Employees (bolded words are very important)
determined by the Secretary of Labor 1. Managerial – those vested with powers and prerogatives to lay down and execute
in appropriate regulations. polices and/or hire, transfer, suspends, lay-off, discharge, assign or discipline
Þ Employee in retail establishment employees
regularly employing at least 10 2. Supervisory - those who in the interest of the employer can effectively
workers (n/a holiday pay, SIL, ) recommend managerial actions such as laying down and execution of
management policies
Recoverable regardless of the Only recoverable if the person sustained 3. Rank and File – those who are neither managerial nor supervisory.
negligence of the employer injury through the act or omission of
another Why classify?
Þ To know their eligibility to form, join or assist in the formation of labor organization
Employer-employee relationship = meat of labor law Þ To know the degree of culpability in disciplinary cases



ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

IMPORTANT NOTE: An employee who was initially hired as learner / apprentice MAY NO
©Categories of employment LONGER BE PUT UNDER PROBATIONARY EMPLOYMENT UNDER THE SAME
1. Regular employment COMPANY where he was trained.
Þ A job where the employee was engaged to perform activities necessary or desirable
in the usual business or trade CHAPTER 2 – RECRUITMENT AND PLACEMENT OF WORKERS
Þ Employment is regular depending on the nature of the job (if it is necessary and
desirable to the main business then it is regular) Recruitment and Placement – any act of canvassing, enlisting, contracting, transporting,
Þ Repeated and continuous rehiring is an indicator of a regular nature utilizing, hiring or procuring workers, and includes referrals, contract services, promising
or advertising for employment, locally or abroad, whether for profit or not.
2. Non-regular employment
Þ If the employee is engaged for a specific duration or for an activity that is not usually Essential element to be considered recruiting : act of offer or promise of employment
necessary or desirable to the business or trade Þ Money is not an essential element of recruitment and placement
Þ Project employment – there is a specific undertaking and date of completion, and Þ Recruitment and placement can exist even if only one person was recruited
tenure of project employment is coterminous with the work Þ Referral is considered as a recruitment activity – when a person refers another to an
o Q: can a project employee attain regular status? YES, if the employer illegal recruitment agency, he will be liable for illegal recruitment.
continuously hire the same work pool
o Failure to report is an indication that the job is not a project employment but Darvin v CA
regular employment DOCTRINE: merely assisting a person in securing a US VISA and airline ticket without
o A project employee is not entitled to separation pay any offer or promise of employment is not recruitment.
Þ Seasonal Employment - employment is coterminous with the duration of season.
o XPN: if the same employees are repeatedly engaged every season then they GR: ONLY PUBLIC EMPLOYMENT OFFICES CAN ENGAGE IN RECRUITMENT AND
become regular seasonal employees that cannot eb terminated without just PLACEMENT OF WORKERS
cause. The employment of the regular seasonal employees are not severed but
merely suspended XPN: The following can also engage in recruitment and placement of workers
Þ Fixed term employment – only valid when knowingly and voluntarily agreed upon 1. Private employment agency – persons or entity who recruits for a fee who charges
(there must be a written contract), BUT if the fixed term is used to circumvent the directly or indirectly against the workers or employers
right to security of tenure then the fixed term contract is VOID. 2. Private recruitment entity – person or association who recruits workers for
3. Casual employment employment without charging directly or indirectly any fee against the worker
Þ not usually necessary or desirable in the usual business or trade of employer 3. Manning agency – a person or entity who recruits and deploys seafarers for
(engaged for a specific activity only) maritime employment
o casual employees become casual regular employees if they have rendered at
least 1 year of service (12 months) whether such service is continuous or FOR LOCAL EMPLOYMENT FOR OVERSEAS EMPLOYMENT
broken. 1. Business papers (DTI/SEC) 1. Business papers
4. Probationary Employment 2. Office space 50sqm 2. Proof of financial capacity
Þ Trial period 3. NBI clearance (owners) 3. Proof of marketing capability
Þ There must be written contract of probationary employment 4. List of representatives (at 4. Clearance of BOD
Þ Employee must have been notified on the standards of regularization least college grad w/ exp in 5. Individual ITR
Þ Duration is 6 moths from the date of appointment recruitment) 6. Proof that proprietor, partner, CEO has
5. Proof that there is office degree and 3 years business experience
Þ Q: Can parties agree to a longer period? YES, it must be inwriting or stipulated in the
manager & office secretary 7. List of all official
contract, established by company policy, required by the nature of work, or when the
extension is given to give the employee the chance to improve. 6. Certificate of attendance in 8. Office space of 100sqm
o For teaching and academic non-teaching personnel probationary period are as pre-application seminar 9. Proof of publication of notice for license
7. Affidavit of undertaking 10. Certificate of attendance in pre-
follows:
§ Elementary & Secondary level = 3 consecutive school year Þ Not to collect fee from application seminar
§ Tertiary & Graduate level = 6 consecutive semesters any applicant 11. Verified undertaking
§ Tertiary level on trimester basis = 9 consecutive trimesters Þ Select qualified recruits
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Not to engage in illegal Þ Assume full responsibility Capricorn In’tl Travel vs CA

recruitment Þ Be solidarily liable for all liabilities Doctrine: Failure of a recruitment agency to pay airline tickets does not make the travel
Þ To adhere DOLE arising from the employment agent entitled for the bonds paid by the recruitment agency. Garnishment was not
standards contract proper because the matter does not involve an employment related claim. The
Þ Assume full Þ Guarantee compliance with the law garnishment of bond can only be proper for employment related claims. It is not
responsibility of its Þ Negotiate best terms for applicant applicable for breached civil obligation (contract of sale of ticket)
officers Þ Disclose full t&c of employment
Validity: 3 years from date of Þ Deploy at least 100 workers within Sunace vs NLRC
issuance 1 year from issuance of license DOCTRINE. Article 1924 of the New Civil Code states that the agency is revoke if the
Þ Provide orientation principal directly manages the business entrusted to the agent, dealing directly with
Remedy for suspension: third persons.
Þ Repatriate deployed workers if the

need arises
DOLE suspends > file with SOLE Facts: Divina Montehermozo is a domestic helper deployed to Taiwan by Sunace
Validity: 4 years from date of issuance
w/in 10 days International Management services (Sunace) under a 12-month contract. After the
Complaint? File in POEA or Sec of Labor &
expiration of the contract, Montehermozo continued her employment with her
Employment
Taiwanese employer for another 2 years when Montehermozo returned to the

Remedy for suspension: Philippines, she filed a complaint against Sunace, Wang, and her Taiwanese employer
POEA suspends > file with SOLE w/in 15 before the National Labor Relations Commission (NLRC). She alleges that she was
days underpaid and was jailed for three months in Taiwan. She further alleges that the 2-
SOLE suspends > Special civil action for year extension of her employment contract was with consent and knowledge of Sunace.
certiorari with CA Sunace, on the other hand, denied all the allegations.

Grounds for disqualification:
What is an illegal recruitment?

1. Applicant has been an employee of a recruitment agency whose license has Þ Carried out by a person who is not a holder of a license or authority
been revoked due to violation of recruitment laws Þ Carried out by a person who commits prohibited practices
2. Applicant has been convicted of crimes involving moral turpitude,
trafficking, anti-child labor laws (sabi ni sir conviction is not necessary) When is illegal recruitment qualified?
3. If applicant is a cooperative, law enforcer, employee of DOLE, or already Þ If committed in large scale (carried out against 3 or more persons)
operating a recruitment agency Þ If committed by a syndicate (carried out by a group of 3 or more person
conspiring with one another)
Grounds for disqualification or overseas employment agency:
1. Officer or employee of a govt agency What are the prohibited acts?
2. Sales agent of an airline company 1. Charging excess fees
3. Travel agency Þ Charging amount greater than allowed
Grounds for approval: Þ Requiring worker to pay more than what he actually receive as a loan or advance
Þ Recruitment agencies cannot collect from workers
1. 75% Filipino owned and controlled Þ Manning agencies cannot collect from maritime employees
2. Has the required capital (Php 1M local, Php 5M overseas) 2. Publishing false information in relation to recruitment or employment
3. Paid required bond Þ Publishing non-existent projects
Þ To secure all valid and legal claims arising from the violation of contracts of 3. Misrepresentation in securing license
employment and conditions of the grant and use of the license 4. Inducing a worker already employed to quit his employment in order to offer him
Þ If bond is garnished, it should be replenished otherwise it will cause another
suspension of license Þ Unless the transfer is designed to liberate worker from oppressive terms of
Þ This bond cannot be used as appeal bond employment
5. Blacklisting of workers
6. Recruiting workers in harmful jobs
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

7. Obstructing inspection
Þ SOLE has visitorial powers and may inspect at any time Þ Rationale for exclusion is that they perform work related to management policies
8. Failure to file required reports or general operations hence it is not feasible to provide them a fixed hourly rate
9. Substituting or altering employment contracts without approval or maximum of hours worked
10. Becoming an officer or board member of a travel agency 4. Field personnel (must be non-agricultural employees)
11. Withholding travel documents of applicant workers Þ They perform duties away from principal place of business and their actual hours
12. Failure to deploy a worker without valid reason of work cannot be determined
Þ Workers must be deployed within 60 days from the date of issuance of the Þ Rationale for excluding is that the employer has no way of knowing the number
Overseas Employment Certificate of hours they work in a day
13. Allowing a foreigner to manager recruitment agency Þ Exemption will not apply if the field personnel is constantly supervised by the
Þ Because of the requirement that it must be 75% Filipino owned employer ©
Þ Mere fact that the employer requires the field personnel to report to the office
What is the prescriptive period? before and after the field work does not indicate constant supervision, they are
1. Illegal recruitment under Labor code = 3 years only doing this requirement for attendance purposes © (Union of Filipro
2. Illegal recruitment under Migrant Workers Act Employees vs. Vivar)
Þ Simple illegal recruitment = 5 years 5. Family members
Þ Illegal recruitment involving economic sabotage = 20 years Þ Includes husband, wide, parents, children, other ascendants & descendants,
Reckoning: from the day of the commission of from discovery of violation if the commission brothers & sisters whether half or full blood
of the violation was not known at that time Þ Does not include cousins, parents in law, children in law
Þ To be exempted the family members must be dependent upon his employer for
CHAPTER 3 – GENERAL LABOR STANDARDS support
6. Domestic helpers except weekly rest day and service incentive leave
What are the prescribed working conditions prescribed by the Labor Law? Þ Any person who renders service in and about the employer’s home on an activity
1. Hours of work (includes meal periods, overtime pay, night shift differential) which are usually necessary or desirable for the maintenance and enjoyment of
2. Weekly rest day (includes premium pay on rest days and special holidays) the employer and ministers exclusively to personal comfort and enjoyment of the
3. Holiday pay employer’s family
4. Service incentive leaves Þ Rationale for exemption is that the nature of work of domestic helper and since
5. Service charges they are not employed in a business undertaking
Þ Domestic helpers are now service incentive leaves & weekly rest day are now
Who are covered in the prescribed working conditions? available for them because of Domestic Workers Act
7. Persons in the Personal Service of Another
GR: applies to all employees whether for profit or not Þ Those who minister to the personal comfort, convenience or safety of the
employer as well as the members of the employer’s household (ex. Bodyguards,
XPN: does not apply to the following: private nurse, family driver)
1. Government employees
Þ Rationale for exemption is their nature of work and their relationship with the
Þ Those employed by the National Government or GOCC with special charters employer
Þ It does not include GOCCs organized under SEC 8. Workers who are paid by results
2. Managerial employees Þ Because they are compensated on the basis of their output and not in the time
Þ Rationale is that managerial employees are not usually engaged for every hour, spent in doing their work
but their compensation is determined by their special training, experience or
knowledge which requires the exercise of discretion and independent judgement Normal work hours – shall not exceed 8 hours a day
3. Officers and members of managerial staff Þ 8 hours may be staggered, it need not be continuous
Þ Considered under this category if they work directly related to management Þ Work in excess of 8 hours within the 24-hour period is overtime
policies, they regularly exercise discretion and independent judgement, regularly
Meaning of the word “Day” – 24 hours period reckoned from the time the employee
assist a managerial employees or they can execute under general supervision
regularly starts work
specialized or technical work and special assignments
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

HOURS WORKED Can employers set a shorter meal period?

YES, meal period must be at least 20 minutes and is part of working time. This is applicable
1. Principle of No-Work-No-Pay = the time during the employee did not render service to the following:
is not compensable Þ Work does not involve strenuous physical exertion
Þ Establishment regularly operates not less than 16 hours a day
Þ IF ENGAGED TO WAIT = considered as hours worked because his time is controlled Þ Work is necessary because of actual or impending emergencies
by the employer (ex. Driver) Þ Work is necessary because of urgent work that needs to be performed on machineries
Þ IF WAITING TO BE ENGAGED = = not considered as hours worked because his time is Þ Work is necessary to prevent serious loss of perishable goods
not controlled by the employer
Þ IF ON CALL OVERTIME WORK
o If required to remain on call in the employer’s premises and he cannot use
his time effectively and gainfully for his own purpose = hours worked Þ Services rendered beyond 8 hours a day is overtime work
o If not required to leave word where he may be reached = not hours worked Þ FOR PUBLIC UTILITY VEHICLE DRIVERS & CONDUCTORS
Þ ON TRAVEL TIME – home-work-work-home travel time is not hours worked because o Max overtime = 4 hours, max hours of work = 12 hours
it is a normal incident of employment Þ FOR SEAMEN
o If employee deviates from his usual travel for the benefit of the company o Max overtime = 6 hours, max hours of work = 14 hours
then that is considered as hours worked
Þ ON ATTENDANCE AT LECTURES, MEETINGS, TRAINING PROGRAMS Can employees be compelled to render overtime work?
o If imposed as a requirement = hours worked
o If voluntarily attended and conducted outside of working hours = not paid GR: NO, because that would be involuntary servitude which is against a person’s
Þ ON ASSEMBLY TIME (eto yung flag ceremony thingy ) constitutional right
o Subject to absolute control = hours worked XPN:
o Not subject to absolute control = not hours worked (example Arica vs NLRC, Þ There is war or other national or local emergency
workers who failed to attend the assembly time were not subjected to Þ There is actual or impending disaster or calamity
disciplinary action) Þ There is urgent work to be performed on machine installations
Þ It is necessary to prevent loss/damage due to perishable goods
2. © If the work performed was necessary or it benefited the employer, or the employee Þ It is necessary to avail of favorable weather conditions
could not abandon his work at the end of the shift because he had no replacement, Þ It is necessary to complete the work started before the 8th hour
and if the work was done with the knowledge of his employer = all time spent is
considered hours worked OVERTIME PAY
Þ © Immediate superior’s knowledge is essential (not approval)
Þ Mere existence of rule prohibiting overtime work is not enough Þ An additional compensation given to covered employee for working beyond 8 hours a
day
3. Inactive by reason of interruption in his work beyond his control = hours worked Þ Important note: offsetting undertime with OT is NOT ALLOWED
Þ GR: work interruptions not exceeding 20 minutes are considered short period
Þ If interruption exceeds 20 minutes and the employees can leave their workplace to Who are not covered?
use their time at their own interest = not paid/ not considered working hours Þ Government employees and GOCC employees with special charters
Þ Rest period or coffee breaks that are 5-20 minutes are considered hours worked Þ Managerial employees + officers & members of managerial staff
Þ Field personnel
MEAL PERIODS Þ Domestic helpers
Þ Employees are entitled to at least one hour time off for regular meals Þ Persons in service of another
Þ Members of the family of the employer who are dependent for support
GR: one hour meal period is not considered as working time
Þ Task / contract basis workers who are paid a fixed amount for performing work
XPN: if the employee is not completely relieved from duties then the meal period will be
irrespective of the time consumed in the performance
part of working time



ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

DAY RATE KIND OF EMPLOYEE REST DAY

Ordinary day RW + 25% of RW Ordinary employee 24 consecutive hours every after 6 consecutive normal
Holiday or Rest day PP + 30% of PP workdays
Health personnel 24 consecutive hours
METHOD: Þ Cities / municipalities with pop = < 1M
Compute premium pay first then, compute OT pay Þ Hospital / clinics with bed capacity of < 100

Regular Wage (RW) = cash wage + fair and reasonable value of facilities customarily 48 hours
furnished by the employer to the employee Þ Cities / municipalities with pop = >1M
Þ Hospital / clinics with bed capacity of = < 100
Q: You rendered OT even if there is a NO OT POLICY, should you be paid?
A: YES, under the following grounds: Domestic workers 24 consecutive hours in a week
Þ If with knowledge by the superior
Þ If OT work is necessary Additional rules:
Þ If it benefited the company
Þ If the employee could not abandon his work at the end of his 8-hour shift GR: employers choose the rest day
because there was no substitute ready to take his place
XPN: employer shall respect the preference of the employees as to their weekly
Q: Can OT pay be included in the monthly compensation package? rest day when such preference is based on religious grounds
A: YES, provided there is a clear written agreement knowingly and freely entered into
by the employee GR: employees cannot be required to work on his scheduled rest day against his
will
Can overtime pay be waived?
GR: non-waivable because it is against public policy XPNs:
XPN: unclaimed past overtime pay can be waived (emphasis on the PAST) Þ Actual . impending emergencies
Þ Urgent work to be performed on machineries
NIGHT SHIFT DIFFERENTIAL Þ Abnormal pressure of work due to special circumstance
Þ To prevent serious loss of perishable goods
Þ The premium given to a covered employee for working between 10PM and 6 AM Þ To avail of favorable weather conditions
Þ Rate = 10% of RW per hour Þ When nature of work needs to work continuously ex. Crewmember of a ship

Who are not covered?
Þ Government employees and GOCC employees with special charters PREMIUM PAY
Þ Managerial employees + officers & members of managerial staff Þ Additional compensation given to a covered employee for working on a special
Þ Field personnel holiday or rest day
Þ Domestic helpers
Þ Persons in service of another WORKDAY RATE
Þ Members of the family of the employer who are dependent for support Working on a rest day 30% of RW
Þ Workers paid by result Working on a special holiday 30% of RW
Þ Employees of retail and service establishments employing not more than 5 workers RD + SH Working special holiday = 50%
= 4 workers only Non-working special holiday = 30%

WEEKLY REST DAY HOLIDAY PAY
Þ Premium given to an employee during regular holidays
Þ Period of inactivity of not less than 24 consecutive hours given to an employee after
rendering service for a week
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

©HOLIDAY ©DATE SERVICE CHARGES

New Year’s Day January 1
Maundy Thursday Þ Collected by service establishments
Good Friday Þ In the new Service Charge Law, covered workers except managerial employees are
Movable date
Eidul Fitr now entitled to 100% of the service charge collected.
Eidul Adha
Araw ng Kagitingan Monday nearest April 9 FLEXIBLE WORK SCHEDULE
Labor Day Monday nearest May 1
Independence Day Monday nearest June 12 Þ Arrangement where the employee can vary his arrival and departure time without
National Heroes Day Last Monday of August affecting the core work hours as defined by the employer
Bonifacio Day Monday nearest November 30 Þ Solo parents are entitled to flexible work schedule provided they are left alone with
Christmas Day December 25 the custody of the child
Rizal Day Monday nearest December 30 o If solo parent is no longer left alone with the responsibility of parenthood
his/her right to flexible work and other benefits of a solo parent will
terminate
©HOLIDAY ©RATE
Holiday (but did not work) 100% of RDW COMPRESSED WORK WEEK
Holiday (worked) 200% of RDW
2 Regular holiday on the same date 200% Þ Normal workdays is reduced to < 6 days
Regular holiday on leave without pay Not entitled Þ Normal work hours is increased to more than 8 hours
Regular holiday on leave with pay 100% Þ Normal work hours remain48 hours
Regular holiday + Special working holiday (no work) 100% Þ Major requirement:
Regular holiday + Special working holiday (worked) 200% o Express and voluntary consent of the majority of the covered employees
Regular holiday + Special working holiday + Rest day (worked) 230% o Certification from accredited safety organization or the company’s safety
Regular holiday + Special working holiday + Rest day (no work) 100% committee
Additional rules: o Regional office of DOLE must be notified
Þ Absent without pay on RH = no pay Þ © Construction company, health services, occupation with heavy manual labor,
Þ Not reporting for work because enjoying disability benefits under SS Law = entitled occupation exposed to hazardous chemicals or noise cannot adopt CWW
Þ Temporary closure therefore no work = entitled
Þ Permanent close = not entitled WAGES
Þ Teachers during semestral vacation = not entitled
Þ Monthly paid employees = entitled Þ Renumeration or earnings payable by an employer to an employee for work done or
to be done or for services rendered or to be rendered
Who are not covered?
Þ Government employees and GOCC employees with special charters WAGES VS SALARY
Þ Managerial employees + officers & members of managerial staff Lower & less responsible Higher grade of employment
Þ Field personnel Exempt from execution & attachment Not exempt
Þ Those paid on commission basis
Þ Domestic helpers What are facilities?
Þ Persons in service of another Þ Items of expense necessary for the employees’ subsistence. (ex. Board & lodging, rice
Þ Members of the family of the employer who are dependent for support ration, subsidized meal)
Þ Workers paid by result Þ These are considered part of wages

Þ © Employees of retail and service establishments employing less than 10 workers =
Millares vs NLRC
9workers only
Doctrine: Allowances were discontinued on certain occasions on account of situations
Þ Faculty member who are paid per lecture hour
were not included in separation pay. SC held these allowances are not part of wages
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

© Principle of Non-Diminution of Benefits Þ If payment will be in a form of other medium it will not produce the effect of payment
Þ Payment must be done once every two weeks or twice a month not exceeding 16-day
Þ Benefits granted voluntarily, regularly and unconditionally cannot be reduced or intervals
withdrawn because these becomes part of the terms and conditions of employment. Þ Justification in the delay of payment (1) force majeure (2) fortuitous event
Þ Payment by mistake does not vest a right. An employer can stop a benefit which is o Wages must be paid immediate after the cause of delay has ceased
given erroneously without violating the principle of non-diminution of benefit. Þ Wages should be paid at or bear the place of undertaking
Þ Payment must be paid directly to the workers to whom they are due
NOTE: BONUS IS NOT A BENEFIT. It is given based on the liberality of the employer. o XPN: employee / law authorized the employer to pay wages to another
person
MINIMUM WAGE Þ Payment of wages in case of bankruptcy → ask first if there is a declaration of
bankruptcy or if there is an insolvency proceeding
Þ Wage-fixing is a power inherent to the Congress
Þ XPN: congress has delegated said power to the Regional Tripartite Wages and PROHIBITION REGARDING WAGES
Productivity Board (RTWPB)
Þ RTWPB cannot set a wage rate lower than that prescribed by Congress Þ Employers cannot require employees to deposit for loss or damages of tools or
Þ Courts cannot issue TROs or injunctions against RTPWB equipment (xpn: if it is an industry practice| ex. on taxi business)
Þ RTWPB has no power to promulgate rules & guidelines for the determination of Þ Employer cannot hold wages to pay for employee’s obligation to 3rd parties
appropriate min wage
o NWPC has that power Þ GR: Employers cannot make any deduction from the wage of the employees without
Þ A wage order cannot be disturbed within 12 months from effectivity any written authorization from the employee
o XPN: if there are supervening extraordinary conditions like price hike
Þ Compliance with the min wage is mandatory, otherwise employer shall suffer double XPN: some deductions are allowed
indemnity and criminal liability Þ In compliance with the writs of execution against the employee
Þ Compensation for piece rate workers may be fixed through time and motion studies Þ Deduction is due and demandable debt of an employee to the employer
conducted by DOLE Þ In compliance with a legal mandate (tax, SSS, Philhealth, Pagibig)
Þ Agency fees
WAGE DISTORTION Þ Reasonable fees to finance mandatory activities under Labor Code (ex. Labor
education seminars)
Þ A situation where an increase in prescribed wage rates results in the elimination or
severe contraction of intentional quantitative differences in wage or salary rates CONTRACTING OR SUB-CONTRACTING
between and among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure based on skills, length of Þ An arrangement whereby an employer engages the services of a contractor who
service, or other logical bases of differentiation undertakes to perform a certain work, task or job on his own account under his own
reasonability free from the control and direction of his employer in all matter except
© What are the elements of wage distortion? as to the result of the work.
1. Establishment must have an existing position classification with corresponding salary
rates Trilateral relationship :
2. RTWPB / Congress issued and order /law fixing the min wage Principal who
3. The new min wage resulted in significant increase in the salary of the lower pay class decides the job to
without an increase in the salary rate of a higher one to the point that the distinction be contracted out
between the two class has been eliminated or severely contracted
4. Resulting distortion must be in the same establishment within the region

Contractor who Workers of the
PAYMENT OF WAGES undertakes to contractor who
perform the job accomplish the job

Þ Law requires that payment of wages be in legal tender (mandatory)
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Not illegal per se because it is a valid exercise of management prerogative Þ Equivalent to 1/12 of the basic salary earned during the calendar year
Þ No employer-employee relationship created Þ All rank & file employee regardless of employment status are entitled including piece
Þ When contractor fails to pay wages, the principal becomes solidarily liable for the rate workers, domestic workers, private school teachers, govt employees working
unpaid wages part-time in a private enterprise
o Not solidary liable for back wages Þ The following are not entitled:
o Not solidary liable for separation pay o Have rendered service under 1 month
o Not liable for damages o Those paid purely on commission basis
NOTE: o Employees receiving equivalent of 13th month pay
BACKWAGES = punitive in character like if you were illegally dismissed Þ Not later than December 24 of each year
UNPAID WAGES = you worked for it na, pero di kapa binabayaran Þ Taxable if > Php 82K

Requisite: BONUS
1. Contractor must have a distinct & independent business Þ ©13th month pay ≠ bonus
2. Contractor must have substantial capital (at least Php 5M), tools, equipment, Þ Bonus is not s statutory right
work premise and other necessary materials. It must be registered with the Þ Not a demandable and enforceable obligation (except if part of contract or wages)
regional office of the DOLE where it principally operates with valid certificate of o It becomes part of wages if fixed amount is given without any condition or it
registration (2 years) has ripened into a practice
3. Contractor must undertake to perform the job free from control and direction of
the principal IN ALL MATTERS EXCEPT AS TO THE RESULTS SERVICE INCENTIVE LEAVE
Þ Available to those who have rendered at least one year service
When does sub-contracting become illegal? Þ 5 days with pay
Þ When entered into with a labor-only contractor Þ Commutable to cash if unused
Þ Principal farms out to work to a “cabo” Þ Prescriptive period: 3 years from the time the employer refuses to give payment
Þ Entered into with an in-house agency
Þ Entered into with an in-house cooperative PRENTAL LEAVE FOR SOLO PARENT
Þ Contracting was done because of impending strike or lockout Þ 7 working days every year
Þ Not convertible to cash
LABOR ONLY CONTRACTING Þ Must have rendered at least one year of service whether continuous or broken
Þ An arrangement whereby the contractor who DOES NOT HAVE SUSBTAINTIAL
CAPITAL. TOOLS, EQUIPMENT, MACHINERIES & WORK PREMISES and merely LEAVE FOR VICTIMS OF VAWC
recruits to supply workers to the principal to perform a job that is directly related to Þ Available to female employees who personally, or her child suffered from act under
the main business of the principal employer. VAWC
Þ This is not allowed by law Þ Paid leave up to 10 days
Þ Consequence of this is that the employees of the labor-only contractor will become Þ Not convertible to cash
employees of the principal entitled to all the rights and benefits accorded to a regular Þ Needs certification from Punong Barangay, prosecutor, clerk of court that a case for
employee VAWC is pending
Elements:
1. Supplies workers only GYNECOLOGICAL LEABE
2. Activities of workers are directly related to the main business of the principal Þ For female employees who undergo surgery because of gynecological disorders
3. No substantial capital (Php 5M) or investment (tools, equipment, machineries or
Þ 2 months full pay based on gross monthly compensation
work premise)
Þ Not convertible to cash

Þ Must have rendered at least 6 months continuous employment service for the at least
13TH MONTH PAY
12 months prior to surgery
Þ All rank-and-file employees in the private sector who have worked for at least one (1)

month during the calendar year are entitled to receive 13th month pay regardless of

their position, designation or employment status.

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

MEDICAL AND DENTAL SERVICES CHAPTER 4 – SPECIAL STANDARDS FOR SPECIFIC EMPLOYEES
Þ First aid medicines regardless of number of workers
Þ 10 to 50 workers = graduated first aider OVERSEAS FILIPINO WORKERS
Þ 51 to 200 = fulltime RN, Fulltime first aider, Þ Foreign employers cannot directly hire Filipino workers for overseas employment
Þ 201 to 300 = fulltime RN, part-time physician, part-time dentist, emergency clinic o XPN: name hire – a Filipino worker can apply for employment with a foreign
Þ Over 300 (non-hazardous) = fulltime RN, part-time physician, part-time, dentist, employer without the assistance and participation or a recruitment agency
emergency clinic Þ Minimum age of OFW = 18 y/o
Þ Over 300 (hazardous) = fulltime RN, fulltime physician, fulltime dentist, dental clinic, o If domestic worker = 23 y/o
emergency hospital with 1 bed capacity per 100 workers o If violated:
§ Automatic revocation of license, fine of 500K-1M, refund all fees
REQUIRED PROGRAMS paid by underage worker within 30 days from repatriation
1. Occupational health program Þ Maritime OFW = no fee shall be collected
2. Drug-free workplace policy and program Þ Land based OFW = can collect placement fee equivalent to 1 month salary +
3. Workplace policy and prevention of HIV & AIDS documentation expense
4. Workplace policy and program on Hepatitis B Þ Charging of fee should be after commencement of employment., if before employment
= grounds for suspension of license
OCCUPATIONAL HEALTH AND SAFETY Þ Workers should be deployed 60 days from the date of issuance of Overseas
Þ Safety committee is a requirement for all establishments regardless of number of Employment Certificate
workers Þ Recruitment agency should conduct pre-departure orientation seminar to newly hired
Þ Establishments housed under one building may establish a joint safety committee workers, failure = suspension of license
Þ The safety man is the principal assistant and consultant of the employer in the Þ Withholding salaries or remittances without justifiable reason is a ground for
application of safety programs in the establishment suspension of license
o Full-time safety man is not required if the employer enters into a written Þ Repatriation of OFW and transport of his personal belongings is the primary
contract with a qualified organization who shall conduct plant visits at least responsibility of the recruitment agency
4 hours a week, subject to call to conduct accident investigation and is
available on scheduled inspection of the SOLE Where can we deploy OFWs?
Þ Disabling accident or illness should be recorded and reported 1. Country with existing labor & social law protecting migrant workers
2. Has bilateral agreement with Philippines
ENFORCEMENT OF LABOR STANDARDS 3. A signatory or ratifier of multilateral conventions relating to the protection of
worker s and migrant workers
VISISTORIAL POWER ENFORCEMENT POWER ADJUDICATORY POWER
SOLE or his authorized DOLE-RD has the authority Authority given by Q: What is the country-team approach?
representative has the to issue writs of execution DOLE-RD to hear and It is a mode by which the Philippine embassies or their respective personnel operate to
authority to inspect to ensure that the decide money claims not ensure the protection of OFWs. All officers of the Philippine government posted abroad
establishments employers will abide by the exceeding Php 5K filed shall on a per country basis, act as one country-team with a mission under the leadership
Þ If a violation is compliance orders. by an employee who of the Ambassador, regardless of their mother agencies.
discovered, DOLE will have been separated
issue a compliance Remedy from orders: from service and who do AGGRIEVED OFW
order Þ Appealable to the SOLE not seek reinstatement Þ Illegally dismissed or not properly compensated OFWs may file their complaint and
Þ Compliance order within 10 calendar claims before the Regional Arbitration Branch of the NLRC
applies only to those days Remedy: What are the remedies?
who are still Þ Appealable to NLRC Þ Payment of salaries for unexpired portion of the contract
connected with the within 5 days from Þ Full reimbursement of placement fees and deduction made + 12% per annum interest
establishment receipt of decision Þ Agencies are solidary liable with the principal employer
order

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

NON-RESIDENT ALIENS o employment neither endangers his life, safety, health and morals, nor
Þ Alien Employment Permit (AEP) is indispensable (validity = 1 year) impairs his normal development
Þ If non-resident alien works without AEP o child is prescribed with primary and secondary education
o Fine / imprisonment & deportation o child’s employment in public and entertainment or information through
Þ Alien with valid AEP cannot transfer to another job or change employer without cinema, theater, radio or TV is essential:
approval of SOLE Þ On House Work:
Þ A non-resident alien who works without AEP cannot seek protection under our labor o children below 15- not more than 4 hours, but not more than 20/week
laws o children 15 but below 18- not more than 8 hours a day, but not more than
Þ Grounds for cancellation of AEP 40/week
o submitted falsified documents Þ Nightwork prohibition:
o termination of alien’s employment o children below 15- 8pm to 6am
o any meritorious objection or information against the alien o children 15 but below 18- 10pm to 6am
Þ Worst Forms of Child Labor: slavery, prostitution, pornography, illegal activities (ex.
APPRENTICES dangerous drugs), nature of work in which it is carried out in hazardous or likely to
Þ a person undergoing training for an approved apprenticeable occupation during an be harmful to health, safety and morals of children
established period assured by an apprenticeship agreement
Þ apprenticeship program must be approved by TESDA FEMALE WORKERS
Þ there must be apprenticeship agreement with the apprentice Þ There should be non-discrimination in the employment of women
Þ only highly technical industry can put up an apprenticeship program Þ Employer cannot pay a lesser compensation or fringe benefit to a female employee
Þ apprentice must be at least 14 y/o and physically fit for the occupation Þ Marriage should not be a hindrance to the employment of women
Þ compensation shall be 75% of the statutory min wage Þ The Labor Code forbids employers in dismissing a pregnant woman while on leave die
Þ duration of program should be 6 months to her pregnancy.
Þ no need to undergo proby period if to be absorbed Þ The Magna Carta for Women forbids educational institutions from dismissing
transferring, forcing unmarried women to go on leave because of their pregnancy
LEARNERS
Þ persons hired as trainees in semi-skilled or non-apprenticeable occupations Zalcita vs PAL
which can be learned through practical training on-the-job in a relatively short period Doctrine: An airline company that requires their flight attendant to be single and
not exceeding 3 months automatically terminates them once they marry is a clear violation of the Labor Code
Þ learnership program must be approved by TESDA
Þ there must be a learnership contract Philippine Telegraph & Telephone Co vs NLRC
Þ min age is 15 y/o Doctrine: Dismissing a female employee who was found to be married after declaring that
she is single in her application form is not a valid dismissal even. Their company policy on
Þ compensation shall be 75% of the statutory min wage
non-acceptance of married woman is violative of the provisions of the Labor Code.
Þ duration of program should not exceed 3 months; the employer must absorb the

learner as its regular employee
Lakpue Drug vs. Belga

Doctrine: dismissal due to concealment of pregnancy is not a misconduct as to constitute
PWD
just cause for separation.
Þ those suffering from restriction to perform an activity because of mental, physical or

sensory impairment
Cadiz vs Brent Hospital and Colleges Inc
Þ Employers of workers with disability are entitled to additional deduction from gross Doctrine: Placing a female employee who became pregnant out of wedlock on indefinite
income equivalent to 25% of the total amount paid as salaries and wages to PWDs suspension until she marries her boyfriend is coercive, oppressive and discriminatory. It
forces the employee to marry for economic reasons and deprives her of the freedom to
CHILD WORKERS choose her status including the right to freely choose a spouse and enter into marriage with
Þ GR: a person can be engaged for employment only when he is 15 years old her free and full consent.
Þ XPN: children below 15 can be employed only in the following instances:
o when the child works directly under the sole responsibility of his parent or
guardian, and only member of his family is employed therein, provided that:
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Leus vs. St. Scho Þ The employers are likewise required to provide safe and healthful working
Doctrine: Pregnancy out of wedlock is not a valid ground for dismissal because it does not conditions and adequate or reasonable facilities such as sleeping or resting quarters
constitute immorality. There is no law that which proscribes the consensual sexual activity in the establishment and transportation from the work premises to the nearest point
between two unmarried persons. of their residence subject to exceptions and guidelines to be provided by the DOLE
Þ Pregnant women and nursing mothers are only allowed to be night workers if they
DOMESTIC WORKERS have certification of fitness from a competent physician
Þ “Domestic or household service” means services in the employer’s home which is
usually necessary or desirable in the maintenance and enjoyment thereof and includes HOME WORKERS
ministering to the personal comfort and convenience of the members of the Þ Homeworkers are employees who perform industrial work in their respective homes
employer’s household, including services of family drivers. on behalf of persons who deliver to them the goods to be processed or fabricated into
Þ Minimum age = 15 y/o a finished product
Þ Maybe hired directly or thru a private employment agency Þ Industrial homework”- a system of production under which work for an employer or
Þ Employers should register their domestic workers in the barangay where their contractor is carried out by a homeworker at his home. Limitations are as follows:
residence is located o explosives, fireworks, and similar articles
Þ An employment contract is required prior to the commencement of the service o drugs and poisons
Þ Minimum wage o other articles, processing of which requires exposure to toxic substances
o Php 2,500 / mo = NCR Þ Payment for Homework must be immediately upon receipt of the finished goods or
o Php 2,000 / mo = Chartered cities and municipalities articles
o Php 1,500 / mo = other municipalities Þ Employer may require the homeworker to redo a work which has been improperly
Þ They are entitled to 13th mo, free board and lodging, daily rest period (8 hrs / day), executed without having to pay the stipulated rate again
weekly rest period (24 consecutive hours), service incentive leaves (5 days) and Þ An employer, contractor or sub-contractor need not pay the home worker for any
medical assistance in case of illness or injury work which has been done on goods or articles which have been returned for reasons
Þ If monthly wage is < Php 5,000 SSS, Philhealth & Pagibig contribution is shouldered attributable to the fault of the homeworker
by the employer
Þ If monthly wage is > Php 5,000 SSS, Philhealth & Pagibig contribution is shouldered CHAPTER 5 – WELFARE LAWS
by the employer and domestic helper with respect to provided contribution by law
Þ They are entitled to humane treatment EMPLOYEE’S COMPENSATION – benefit given to employees who suffer disability or
Þ Indemnity for Unjust Termination death arising from a work-connected injury or illness.
o If period is fixed, neither the employer nor the household helper ay
terminate, except for a just cause NOTE: if the injury/illness does not result to disability/ death then the injury /illness is
o If household helper is unjustly dismissed: he shall be paid the compensation not compensable
plus that for 15days by way of indemnity
o If household helper leaves without justifiable reason: he shall forfeit unpaid Employee’s compensation SSS Benefits
salary due him not exceeding 15days As to what Work related disability or Disability or death even if
compensated death not work related
NIGHT WORKERS As to what is Does not insure / protect Insures / protects
Þ Night worker’ means any employed person whose work requires performance of a protected employees from risks of employees from risks of
substantial number of hours of night work which exceeds a specified limit. This limit sickness or old age sickness or old age
shall be fixed by the Secretary of Labor after consulting the workers’
representatives/labor organizations and employers.” Employee’s compensation Damages
Þ Workers shall be fit to be taking up assignment as night worker As to what To mitigate the harshness & To vindicate a wrongful
Þ Suitable first-aid facilities shall be made available for workers performing night compensated insecurity of industrial life invasion of right
work, including arrangements where such workers, where necessary, can be taken As to when Recoverable regardless of the Only recoverable if the
immediately to a place for appropriate treatment. recoverable negligence of the employer person sustained injury
through the act or
omission of another
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

3. Permanent Partial Disability – when the employee is unable to continue with his
This is applicable to whom? former work because of the loss of the use of any particular anatomical part of
1. Both public and private employees his body specifically:
2. Filipinos working abroad for an employer who carries on any trade, business, a. Loss of sight on one eye
industry, undertaking or activity in the Philippines. b. Loss of one or both ears
When is the effectivity of coverage? c. Loss of hearing in one or both ears
d. Loss of one arm
For employers – 1st day of operation e. Loss of one hand
For employees – on the date of hiring f. Loss of any finger
g. Loss of one leg
What are the obligations of Employers under the Employee’s Compensation Law? h. Loss of any toe

1. To register with SSS/GSIS not later than the first day of operations When is death/disability compensable?
2. Report their employees for coverage within1 month from the date of hiring
3. Pay the contribution to the State Insurance Fund on the last day of the month 1. If occupational disease
(sole obligation meaning walang obligation si employee magbayad sa state 2. If not occupational disease BUT the risk of contracting such illness is proven by
insurance fund) SUBSTANTIAL EVIDENCE to have been increased by the working condition
4. Chronologically record in a log book the occurrence of a contingency and the
name of the affected employee and report to SSS/ GSIS What is the INCREASED RISK DOCTRINE?

What if the employers fails to pay the contribution? Non occupational disease are compensable if the employee can prove that the risk of
contracting the disease was increased by the working condition.
Employers will be held liable to pay a lump sum equivalent to the benefits which the Note: in this doctrine, it is enough that his employment had contributed even in a small
employee or his dependent may be entitled. degree to the development of the disease.

What are the requisites for an employee to be entitled to compensation benefits? When is a disability/death arising from an injury compensable?
1. Employee must contract illness/suffer injury
2. Injury or illness must be work connected 1. Employee was injured at the place where his work requires him to be
3. Work-connected injury/ illness must result in death or disability 2. Employee must have been performing his official functions
3. If he is elsewhere, the employee must have been executing an order for the
Disability – loss or impairment of a physical or mental function resulting from injury or employer
sickness which results to the loss of earning capacity.
What is the PERSONAL DISCOMFORT DOCTRINE?
Types of disability:
1. Temporary Total Disability – this is the healing time in which the employee is Disability or death suffered by an employee while ministering to his personal comfort
unable to perform any gainful occupation for a continuous period not less such as satisfaction of his thirst, hunger, or other physical demands shall be deemed to
than 120 days but not more than 240 days. have arisen out of and in the course of employment hence compensable.
2. Permanent Total Disability – disablement to earn wages in the same kind of
work that he was trained for because of: What is the COMING TO AND COMING FRIM PLACE OF WORK DOCTRINE?
a. Temporary disability lasting from not less than 120 days
b. Complete loss of sight of both eyes Disability or death resulting from an accident while the employee is commuting to or
c. Loss of limbs at or above the ankle or wrists from the workplace is compensable if the employee has not been diverted by any other
d. Permanent complete paralysis of two limbs activity or has not deviated from his usual route to or from his workplace.
e. Brain injury resulting in incurable imbecility or insanity
f. Such cases as determined by the SSS/GSIS and approved by ECC What is the SPECIAL ENGAGEMENT DOCTRINE?

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Disability or death arising from injury sustained by an employee while on recreation The employer will be liable for the lump sum penalty equivalent to 25% of the income
(outing, field trip, intramurals) sponsored by the employer is compensable. benefit of the employee concerned.
Reason: because the disabling injury arose out of employment
What are the factors that bar compensability? [WIN]
What is the SPECIAL ERRAND DOCTRINE ? 1. Willful intention to kill oneself or another – because this is not work related and
it is not caused by the employment but the employee’s own voluntary act
Disability or death from an accident while an employee is performing a special errand is 2. Intoxication – because intoxication renders the employee in cable of doing his
compensable IF THE SPECIAL ERRAND IS OFFICIAL AND IN CONNECTION WITH HIS work. It must be shown that the accident or injury sustained arose out of his
WORK. drunken condition.
Note: the special errand need not to be done only during working hours to be 3. Notorious Negligence – there is a deliberate act of the employee to disregard his
compensable. own personal safety (burden of proof is on the employer)

What is the DOING WORK AT HOME DOCTRINE? BENEFITS UNDER THE EEMPLYEE COMPENSATION LAW
MEDICAL DISABILITY DEATH FUNERAL
The disability or death arising from an injury while doing work at home upon the direct BENEFITS BENEFITS BENEFITS BENEFITS
request or direction of the employer is compensable. Þ Medicine Þ Temporary Death benefit is Funeral benefit
Þ Ambulatory disability payable to: payable to:
What is the SHUTTLE BUS DOCTRINE ? services benefit (90% Þ Primary Þ Surviving
Þ Ward service of the average beneficiaries spouse
The disability or death arising from an injury sustained by an employee is compensable during daily salary (spouse, Þ Legit child
when it happened while he is enjoying the means of transportation provided by the confinement credit up to dependent who spent for
employer. Þ Subsequent 120 days children not funeral
domiciliary only) exceeding 5) services
What is the MINGLING OF PURPOSE DOCTRINE? care Þ Permanent Þ Secondary Þ Any other
Þ Rehabilitation total disability beneficiaries person who
The disability or death arising from an injury sustained by an employee on a trip for the services benefit (legit parents, shouldered
benefit of the employer is compensable even if the employee in the course thereof (monthly legit the funeral
pursues a personal purpose. income for 5 descendants, expenses
years) illegit children
What is the 24-HOUR DUTY DOCTRINE? not 21 y/o *if there is no
Note: this benefit and not funeral services
A solider on active duty status is considered to on duty 24-hours a day thus subject to his will be suspended employed) because the body
superior officers at all times. The moment the soldier dies or sustains disabling injury it is if the employee What to get? was not recovered,
presumed that it arose out of his employment. fails to submit Þ Monthly the beneficiaries
quarterly report, income for 5 will still be entitled
72 hour period / “ON PASS” – if the soldier was unable to report himself back to work fails to present years to funeral benefits.
after the 72 hours or while on pass as he sustained injury or dies, the disability or death is himself upon Þ 10% for each
compensable. examination of dependent
SSS/GSIS, obtains child
If the disability or death arise while employee is on leave? gainful Þ Monthly
employment, fully pension not
NOT COMPENSABLE, because an employee who is on leave does not perform his usual recovers exceeding 60
duties. Þ Permanent months (for
disability secondary)
What is the consequence if the employer fails to install safety devices? benefits

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

4. Aliens employed in the Philippines 3. Employees of the PH government

Note: 5. Self-employed persons 4. Employees of foreign government or
Þ all benefits above are (1) non-transferable, (2) non table & (3) non- 6. Spouses (voluntary) international organization
garnishable except for debts payable to SSS / GSIS 7. Filipino recruited by foreign based 5. Temporary employees
Þ employee cannot simultaneously recover similar benefits under other employers (voluntary)
special laws, but if the chosen benefit is lesser, they can recover from the
state insurance fund ONLY FOR THE DIFFERENCE EFFECTIVE DATE
Þ Employee cannot avail of the compensation benefit and sue for Þ Employers – on the 1st day of operations
damages. Once the choice has been made, the employee/heir ca no longer Þ Employees – on the 1st day of employment
opt for the other remedy. Þ Self-employed – upon registration with SSS (not required to pay if
Þ Disability benefit + leave benefit is allowed member realizes no income)
Þ Notice of sickness – inform employer within 5 days of occurrence
Þ File with SSS if private employee, GSIS if public sector Notes:
Þ If both employed and self-employed he shall pay contribution for both status
What is the prescriptive period for claims? (should not exceed maximum contribution)
Þ Securing an SSS number doesn’t make you a member automatically. You need to
It must be filed WITHIN 3 YEARS FROM DISABILITY OR DEATH. (Reckoned from the time be reported by the employer and at least 1 month of contribution must be paid.
the employee lost his earning capacity) Þ SSS members cannot withdraw membership, once you are a member you will be
a member for life
What if there is error in the payment of benefit? Ex. It was given to a wrong dependent?
Employer’s obligation
The SSS/GSIS will be deemed in good faith if prior to payment there is no notice from the 1. Report employee for coverage
dependent who claims to be entitled to the compensation benefit. 2. Deduct from employee
3. Pay employer’s contribution
4. Remit the premium to SSS
Remedies
Appeal to Effect of failure to report
GSIS/ SSS Employee
Court of Appeals Supreme Court
Compensation
Commission within 30 days employer is not liable

• must be filed • file a verified

Failure to
• Appeal by
within 30 days
from decision
petition for certiorari Report employer is liable to
review within under Rule 45 SSS for damages
of SSS or GSIS after 30days
15 days from but only on equivalent to the
notice questions of benefits the employee
law is entitled


THE SOCIAL SECURITY ACT OF 1997
What if the employer fails to remit?
NOTE: The funds garnered by SSS belongs to the members and a rea merely being held in Þ Liable for contribution not remitted
trust by the Government. Þ Penalty of 3% per month from date contribution fell due
Þ Good faith is not a defense, no need from demand from the employee
COVERED NOT COVERED
1. All employers 1. Purely casual employees SSS BENEFITS
2. All employees not more than 60 2. Employees serving on an alien MATERNITY BENEFITS
years old vessel, when the vessel is outside the Þ Available for female members regardless if married or unmarried who gave
3. Domestic helper Philippines birth or has suffered from abortion
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ 100% of average salary credit enjoyable for 105 days regardless of the type Þ membership is terminated by retirement, disability, insanity, death, departure from
of delivery country
Þ Member must paid at least 3 monthly contribution within 12 months
immediately preceding the birth of the child Source of funds:
Þ Employer/SSs has been notified of the pregnancy and probable date of birth Þ For employers = 2% of monthly compensation of all employees (Php 100 pesos)
SICKNESS BENEFITS Þ For employees = 2% for those earning more than Php 1,500 (Php 100 pesos)
Þ Daily cash allowance given during confinement when he is not receiving Þ If not earning more than Php 1,500 = 1% only
wage or salary Þ Maximum total compensation is Php 5000 only
Þ 90% of the average daily salary credit
Þ Member must paid at least 3 monthly contribution within 12 months OVERSEAS WORKERS WELFARE ADMINISTRATION ACT
immediately preceding the semester of sickness
Þ Confined for more than 3 days OWWA – principal government agency that promotes the rights, interest and welfare of
Þ Exhausted company sick leave benefit OFWs
Þ Notified employer /SSS within 5 days after the start of confinement
PERMANENT TOTAL DISABILITY BENEFIT How to be an OWWA member?
Þ Monthly pension – if the member paid at least 36 monthly contribution Þ Compulsory registration upon processing employment contract with POEA
Þ Lumpsum – if member has not paid the required in 36 monthly contribution Þ Voluntary registration via electronic membership
Þ Membership commences upon payment of $25
Formula: LUMPSUM = (monthly pension x number of monthly contribution Þ Subsequent contribution shall be collected after every 2 years
paid to SSS) OR – 12 x the monthly pension
PERMANENT PARTIAL DISABILITY BENEFIT OWWA Fund – sum total of the amounts under the management and fiscal administration
Þ Percentage of the lump sum benefit if member has not paid 36 monthly of the OWWA Board and the Secretariat
contribution
Þ Monthly pension period depending on what part of the person was lost What are the benefits of an OWWA member?
RETIREMENT BENEFIT Þ Reintegration
Þ Available to member who have reached 60 years(optional) or 65 years Þ Reparation assistance
(mandatory) Þ Low-interest loan
Þ If member is Þ Assistance and on-site services
He may get: Þ Death benefits
Þ Lumpsum = total contribution paid by him on his behalf Þ Disability and dismemberment benefits (Php 2000 – Php 50,000)
OR
Þ Lifetime monthly pension NATIONAL HEALTH INSURANCE ACT
DEATH BENEFIT
National Health insurance Program – a social health insurance scheme intended as a
Þ Monthly pension – if the member paid at least 36 monthly contribution
means for the healthy to help pay for the case of the sick. It is administered by the PHIC.
Þ Lumpsum – if member has not paid the required in 36 monthly contribution

FUNERAL BENEFIT
Who are covered?
Þ Can be availed in case of death of a member, death of a member who has
All citizens of the Philippines.
been permanently disabled or one who has retired
Þ Philhealth membership takes effect upon enrolment and payment of the required

premium contribution
HOME DEVELOPMENT MUTUAL FUND OF 2009
Þ Members shall be issued a Philhealth card, however absence of the ID will not

prejudice the right of any members
Þ a mutual provident savings system for private and government employee
Þ Employers need to report newly hired employees within 30 days from hiring and to
Þ a member of good standing can apply for housing loan
report separated employees within 30 days from separation
Þ coverage is mandatory
Þ Employers are expected to remit contribution
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ To avail of the health services, the member must paid premium contribution for at Þ Member can only resign from the union only during the freedom period (60 days prior
least 3 months the expiration of the CBA)
o If he resigns outside the 60 day freedom period, he may be subject to
Contributions dismissal
Þ Members in the formal economy = 5% of basic monthly salary o An authority to dismiss must be specified in the union security agreement
Þ Members of informal economy = depends on household earning and assets para pwede idismiss si employee in case they violate the union security
Þ Sponsored members agreement
o PWD = covered by DSWD Þ Cannot be enforced against:
o House helpers = covered by employer o Those who are already members of another union at the time of signing of
o Barangay workers = covered by LGU the CBA
o Indigents = fully subsidized by the National Government o Those who refused admission by the union itself without any reasonable
o Unenrolled women about to give birth = covered by LGU ground (a union cannot invoke the union security agreement to cause the
Þ Retired members = no need to pay dismissal of an employee whom it refused to accept as member)
o Those who are members of a religious sect which prohibits members from
CHAPTER 6 – UNFAIR LABOR PRACTICES joining a union
Þ If a member fails to maintain good standing – he may be subject to dismissal. The
RIGHT TO SELF ORGANIZATION union may submit recommendation for dismissal to the employer
Þ An entitlement given to all employees to form, join or assist in the formation of a labor
union or worker’s association UNFAIR LABOR PRACTICE
Þ Accorded to all kinds of employees who are working in any type of establishment Þ Refers to acts listed in Art 259 and 260
Þ Implication of Right to Self-Organization Þ These are acts that violate the right of employees to self-organization
o To abstain from joining a union – right to abstain Þ ULP are not only violation of civil rights but are also criminal offenses against the state
o To choose which union to join – right to choose CAN BE COMMITTED AGAINST CANNOT BE COMMITED AGAINST
o To cancel membership with the union – right to resign An employee who is not connected in
any labor organization
UNION SECURITY AGREEMENT An employee who has not assisted or
An employee who exercises or has
Þ A stipulation in the CBA which requires employees covered by the collective contributed to the formation of the
exercised his right to self-organization
bargaining unit to join the contracting union and maintain their union membership in labor organization
good standing as a condition for continued employment Employees who are disqualified from
Þ Types of Union security agreement forming or joining a labor organization
1. Closed Shop – employers binds himself to hire members of the contracting Þ Only officers or agents of the business entity and the union officers, members or
union only who must maintain their union membership in good standing. agents who have participated in the unfair labor practice
A.K.A. “magmember ka muna bago kita tanggapin” Þ Criminal prosecution may commence only AFTER the final judgement in the
2. Union Shop – employers can hire non-members of the contracting union on administrative proceeding. YOU CANNOT FILE THE ADMIN AND CRIM CASE
the condition that they should join the union within a specified period and SIMULTANEOUSLY.
maintain their good standing. A.K.A. “sige tatanggapin kita pero mamaya Þ The final judgement in the administrative case is NOT binding in the criminal case
magmember kana” o You cannot used the decision in the administrative case as proof of guilt in
3. Maintenance of membership- agreement which requires those who are the criminal case because the degree of proof is different
members of the contracting union at the time of the execution of the CBA to Þ Only substantial evidence is required in the administrative proceeding
maintain their membership in good standing during the lifetime of the CBA Þ Prescriptive period is 1 year from the commission of the ULP
4. Preferential hiring – an arrangement where the members of the contracting
union are given preference in engagement UNFAIR LABOR PRACTICE OF EMPLOYERS
5. Agency shop – agreement which does NOT require membership but only Þ Happens if the employer has engaged in the co duct which reasonably tends to hinder
support from the employees within the bargaining unit in the form of agency the free exercise of the employee’s right to self-organization
fees

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

1. Interference, Restraint or Coercion of Employees o Employer advised the union president to withdraw the complaint otherwise
Þ Test: whether the employer has engaged in a conduct which reasonably tends to his brother will be dismissed
hinder the free exercise of the employee’s right to self-organization 7. Violation of the duty to bargain collectively
Þ Example of punishable acts: Þ Obligation to bargain must exist
o dismissed an employee who collected signatures for the formation of union o The union which seeks to bargain collectively must be a legitimate labor
o attempting to bribe the strikers so they would abandon the strike and organization
return to work o Union must be composed of the employees of the employer
o subjecting employees to a series of questioning regarding their union o Union must be chosen or designated by the majority of the employees within
membership or union activities the bargaining unit as their collective bargaining representative
o Union who seeks to bargain must be certified by the DOLE as the collective
2. Requiring an employee not to join a union or to resign from a union bargaining agent (underwent SEBA certification or certification election)
Þ Also known as yellow dog contract – making an employee sign an employment Þ Punishable acts:
contract which obliges him to refrain from joining a union or to withdraw his o Employer negotiating with an individual employee despite the existence of a
membership or to quit employment upon joining a union certified bargaining agent employer who declares a lockout without first
Þ Example of punishable acts: negotiating
o Refusing to accept seasonal workers unless they sever their membership o Employer who presents a counter proposal on a take it or leave it basis
with the union o Ignoring the CBA proposal of the certified collective bargaining agent
o Dismissing union members without just cause during the pending of the
3. Contracting out services of functions being performed by union members petition for certification election
Þ To contract out services or functions being performed by union members when such
will interfere with restrain or coerce employees in the exercise of their right to self- 8. Paying negotiation or attorney’s fees to union
organization Þ To pay negotiation or attorney’s fees to the union or its officers or agents as part of
Þ Example of punishable acts: the settlement of any issue in collective bargaining or any other dispute
o Company contracted out the work done by the union members causing
their termination in order to avoid giving counterproposal 9. Violation of Collective bargaining Agreement
Þ Violation of the CBA must be gross (flagrant or malicious refusal to comply with the
4. Organizing or assisting in organizing a union economic provisions)
Þ To initiate, dominate, assist or otherwise interfere with the formation or Þ Economic provision means anything that has to do with money
administration of any labor organization including giving financial support
Þ Company dominated union or company union happens when the organization or UNFAIR LABOR PRACTICES OF LABOR ORGANIZATION
formation of it was done through the initiative of the company 1. Restraining or coercing employees in the exercise of their right to self-organization
Þ Example of punishable acts:
5. Discrimination o Labor organization which recommends the dismissal from employment of
Þ Discrimination in itself is not ULP an employee who resigned from the union during the freedom period
Þ But discrimination in order to encourage/ discourage membership in any labor o Expelling a union member who initiates a petition for audit of union funds
organization is ULP o Suspends union members who petitioned to DOLE to audit the finances of
Þ Example of punishable acts: the union
o Separating active from less active unionist based on their militancy or lack it
on the picket lines 2. Causing an employer to discriminate against an employee
Þ Example of punishable acts:
6. Dismissal of employees who gave testimony o Causing or attempting to cause an employer to discriminate against an
Þ Testimony should related to cases involving exercise of right to self-organization employee
Þ Example of punishable acts: o Discriminating against an employee whose membership in the union has
o Asking the union member not to testify in the hearing of the certification been denied
election case so that his termination will not push through o Expelling a union member on any ground other than the usual terms
3. Violation of duty to bargain collectively
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Obligation to bargain must exist Craft union Composed of workers in a particular trade or
Þ Duty to bargain collectively attaches only when it has been certified as the collective occupation of a kind that requires skill and
bargaining agent training
Þ It cannot declare a strike without first negotiating a collective bargaining agreement Company-type union Composed of employees in the same company
Þ If CBA has already been executed, the certified union cannot terminate the CBA before Trade Union Center Group of registered national unions or federations
the 60 day period prior to its expiry for the purpose of giving mutual aid and
protection of its members
4. Causing an employer to pay for services which were not performed
Þ Causing or attempting to cause an employer to pay in cash or in kind for services not Þ © Only rank-and-file employees and supervisory employees can form, join or assist in
rendered the formation of a labor organization
Þ Demanding a fee from the employer as consideration for the CBA negotiation
Þ Example of punishable acts: QUALIFIED TO JOIN UNION NOT QUALIFIED TO JOIN UNION
o Stand-by bands in unions in radio industry 1. Rank-and-file employees – these 1. Managerial employees – those
are not managerial and not vested with powers of prerogative
5. Asking or accepting negotiation fee or attorney’s fee from employers supervisory employees that may to lay down and execute
Þ Asking or accepting for negotiation fees or attorney’s fees be daily paid or monthly paid management policies and/or hire,
transfer, lay-off, recall, discharge,
6. Violation of the collective bargaining agreement 2. Supervisory employees – those assign or discipline employees.
Þ Refusal to comply with the economic provisions of the CBA who can EFFECTIVELY 2. Confidential employees who have
Þ Refusal must be flagrant and or malicious RECOMMEND managerial actions access to labor relations matters
(Key word: effectively (example ni sir, pano kapag taga
CHAPTER 7 – LABOR ORGANIZATION recommends) accounting department? Hindi sila
disqualified kasi wala naman sila
Þ © An association of employees created for the purpose of collective bargaining or NOTE: © supervisory and R&F access labor relations
dealing with employers concerning terms and conditions of employment employees cannot lump into a single information)
Þ A labor organization (intended for collective bargaining) is not the same as workers union because they do not share the 3. Employee-members of
organization (intended for mutual aid and protection) same interest. They can only affiliate cooperatives
with the same federation. 4. Government employees
KINDS DEFINITION 5. Employees of GOCC with original
Local Union Union operation at the enterprise level charters (determine their manner
National Union or Federation Has at least 10 local chapters or affiliates, each of of formation: kapag under corpo
which must be a collective bargaining agent law yes, they can join union, if
Ex. Federation of Free workers special charter, no di pwede)
Independent Union Operating at an enterprise level but acquired legal 6. Workers who are ambulant,
personality through independent registration. Not intermittent, itinerant and those
affiliated with a federation. without definite employers

Local Chapter or Chartered No independent federation, legal personality is
Local derived from mother union (anak to ng NOTE: © do not be misled by the title!
federation) Example accounts manager – hindi ito
managerial employee since the nature
Affiliate Independently registered union attached to a
of their job is sales. The determining
national union or federation
factor is the position title but the
Industrial Union Labor organization composed of workers in a
function
particular industry
Ex. textile industry union Þ Aliens can form or join a union if they have valid working permits and if their country
grants the same rights to Filipino workers
Þ An employee may join a union on the first day of his employment even if proby sila
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

REGISTRATION OF LABOR ORGANIZATION Þ BLR has 30 days to act on the application for registration
Þ © Registration is necessary to acquire legitimacy and legal personality due to incomplete
Þ Registration should be with DOLE registration (reemdy:
refile)
Þ © Incorporation only gives it legal personality, but it does not give it the right and REGISTRATION Denied by DOLE
(appeal /in 10
privileges accorded by law to legitimate labor organization DENIED days with BLR)
other grounds
Þ Registration is a valid exercise of police power, it is not unconstitutional Denied by BLR
(appeal within
Registration Procedure for Registration Procedure for 10 days with
INDEPENDENT UNION FEDERATION OR NATIONAL UNIONS SOLE)

Application for registration should be file Application for registration should be file Þ Grounds for denial
with DOLE Regional Office with Bureau of Labor Relations o Non-compliance with the certification and attestation requirements
1. Statement indicating: 1. Statement indicating: o Falsification or serious irregularities
Þ Name & principal address of the Þ Name & principal address of the o Failure to complete the registration within 30 days from notice (remedy:
labor union labor union refile with complete supporting documents)
Þ Name and address of the officers Þ Name and address of the officers Þ If all requirements are complied with, registration becomes a ministerial duty
Þ Number of employees in the Þ Number of employees in the Þ © A union can become a legitimate labor organization without undergoing the normal
bargaining unit bargaining unit registration process by affiliating with a duly registered federation (keyword: DULY
Þ That it is not reported as local Þ That it is not reported as local REGISTERED). They just need to submit the following to the BLR
chapter of any federation chapter of any federation o Charter certificate
2. Minutes of organizational meeting 2. Minutes of organizational meeting o Principal office of the chapter
3. List of employees who participated in 3. List of employees who participated in o Names & address of the officers of the local chapter
the meeting the meeting o Constitution and by law of the local chapter
4. Name of all its members comprising 4. Name of all its members comprising
at least 20% of the employees in the at least 20% of the employees in the When do they acquire legitimacy and legal personality?
bargaining unit bargaining unit Þ Independent union = upon issuance of certificate of registration
5. Annual financial report if existing for 5. Annual financial report if existing for o They may submit petition for certification election while waiting for
at least 1 year unless it has not at least 1 year unless it has not approval of registration as long as the documents are complete
collected any amount from the collected any amount from the Þ Local chapters = upon submission of the required documents to the BLR
members members o Local chapter can also file petition for certification election prior submission
6. Constitution and by-laws 6. Constitution and by-laws of the required documents because mere issuance of the charter certificate
7. Proof of payment of registration fee 7. Resolution of affiliation of at least 10 qualifies the local chapter to file a petition for certification election (pero
legitimate labor organization hindi pa sila pwede makipag bargain collectively)
8. Proof of payment of registration fee AFFILIATION
SUPER IMPORTANT REQUIREMENT NA LAGI LUMALABAS SA EXAM: Þ An independent union may affiliate with a federation
Þ It becomes subject to the constitution and by-laws of the federation
© All supporting documents must be Þ If an independent union affiliates with a federation, it does not lose its legal
1. certified under oath by the secretary or treasurer AND personality
2. attested to by the union president
Example: FEDERATION & LOCAL UNION
Þ attested by the President not certified under oath by the union sec/treasurer = Þ Relationship between a federation and a local union is that of a principal-agent
fatal to the acquisition of legitimate status o Principal = local union
Þ certified under oath by the president, attested by the secretary = fatal to the o Agent = federation
acquisition of legitimate status because baliktad DISAFFILIATION
Þ Local union may only disaffiliate during the freedom period
NOTE: if these two are not complied with, the union WILL NOT acquire legitimate Þ May be done at the onset if there is substantial shift in the allegiance
status. Meaning the registration is defective. Þ It severs the relationship between the local union and mother federation

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Federation dues can no longer be collected

Þ Disaffiliation DOES NOT disturb the CBA Change name of a Changing name DOES NOT affect the legal personality of the labor
union organization.
CANCELLATION OF REGISTRATION Notice of change of name should be filed with DOLE (independent
Þ Can only be done through direct action (petition), it cannot be attacked collaterally union) / BLR (federation/national union)
Þ It requires notice, hearing and proof of substantial evidence Requirements:
Þ Grounds 1. Notice of change of name
o Misrepresentation, false statement or fraud ratification of by constitution 2. Amended constitution and by-laws
and by-laws or election of officers 3. Proof that the change of name was ratified
o Violation of the rights and condition of union members
Þ Any party in interest can file petition for cancellation of registration UNION OFFICERS
o If ground is violation of rights and condition of union membership siyempre Þ The union officers must be elected by the members (1) directly (2) by secret ballot (3)
yung member lang ng union ang pwede magfile ng petition for cancellation at interval of 5 years
o Violation affect general membership = may be filed by at least 30% of all Þ If the 5 years already expired and no election has been made, a petition for election of
union members officers may be filed by at least 30% of the union members
o Violation affects only a member = hindi na required yung 30% Þ Candidates must be
Þ Only a final order of cancellation can strip a legitimate labor organization of its right o Employed in the company where the union operates
Þ Where to file petition for cancellation o A member in good standing
o Free from conviction of any crime involving moral turpitude
§ If convicted = must be granted with ABOSLUTE PARDON
independent union DOLE appeal to BLR Þ Only members of the union are qualified to vote in an election of union officers
Petition for
Þ Union officers are entitled to compensation only when authorized by the constitution
cancellation appeal to
federation BLR and by-laws
SOLE
Þ The BLR (or DOLE as the case may be) has the power to expel a union officer
o Has the power to hear and decide any reported violation and mete out
Þ If BLR issues an order in the exercise of its appellate jurisdiction it is no longer appropriate penalty
appealable
Þ Remedy from order of cancellation is appeal within 10 days from receipt of order INTER-UNION OR INTRA-UNION DISPUTES
Voluntary Requirements: INTRA-UNION INTER-UNION
cancellation of Any conflict between and among union Any conflict between and among
registration 1. General membership meeting called for that purpose (dapat members legitimate labor organization
yun yung paguusapan sa meeting)
2. 2/3 of the general membership must concur
3. Application to cancel registration should be filed with DOLE
member

/ BLR
vs
4. Application to cancel registration should be signed by the member
UNION 1 vs UNION 2
BOD and attested by the union president
Merger or Merger – one organization absorbs the other
consolidation of Notice of merger should be filed with DOLE (independent union)
labor organization / BLR (federation/national union)
Note: pendency of an inter-union or intra-union dispute is not a prejudicial question to
Requirements: a petition for certification election
1. Minutes of convention
2. List of respective members who approved
3. Amended constitution and by-laws and minutes of
ratification
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

independent union,
Þ Imposition must be reasonable
DOLE local chapter, workers appeal to BLR Þ Collection should be done only by person duly
association
authorized by the constitution and by-laws
Dispute
trade union, federation,
national union, workers LEVY OF SPECIAL ASSESMENTS
BLR appeal to SOLE
assoc working in more
than1 region
Þ In levying assessments, the requirements must be complied:
o General membership meeting must be called for the purpose
Þ Decisions of the BLR in the exercise of its appellate jurisdiction are NOT appealable to o Majority of the union members must adopt a written resolution approving
the SOLE. It can only be challenged through a special civil action for certiorari of the levy
o Minutes of the meeting should be recorded by the secretary and attested to
LEGITIMATE LABOR ORGANIZATION by the president (list of all members present, votes cats, purpose of the
Þ to be considered LEGITIMATE you need to be REGISTERED special assessment, recipient of the assessment/fees)
Þ © A duly registered labor organization has the right to do the ff (keyword: duly Þ Failure to comply with the requirements will INVALIDATE the assessments
registered)
RIIGHTS DETAILS CHECK-OFF OF FEES AND ASSESMENTS
Act as the collective © A certificate of registration does not automatically give Þ The process where the employer on agreement with the collective bargaining agent
bargaining right act of collective bargaining representative. The union and on prior authorization from the employee deducts union dues and assessments
representative of its must have been issued a SEBA Certification OR proclaimed as from the latter’s wages and remits them directly to the union
member collective bargaining agent in the certification election Þ To be valid:
To be certified as the Certification is through o Supported by an INDIVIDUAL written authorization
exclusive collective 1. SEBA Certification o Duly signed by the employee
bargaining agent of or o Specific as to the amount, purpose and beneficiary of deduction
employees in an 2. Certification election Þ Right to check off union dues and agency fees subsist during the pendency of petition
appropriate CBU for certification election and even during inter0union and intra-union disputes
To request for Can be requested only during Þ No need for check off authorization for:
employer’s audited Þ The collective bargaining negotiation o Agency fees from non-union members who accepts benefits under the CBA
financial statements Þ The freedom period o Reasonable fees to finance mandatory activities (ex. labor seminars / labor
To own real and education activities)
personal property Þ Withdrawal of check-off authorization may be done COLLECTIVELY
To sue and be sued in GR: a legitimate labor organization can file a suit only on
its registered name behalf of its members UNION BOOK OF ACCOUNTS
Þ GR: Union members are entitled to full and detailed reports from their officers
XPN: if it has been certified as the collective bargaining agent, Þ XPN: © bawal during the freedom period or within 30 days preceding the election of
it can file suits on behalf of the employees who are covered by union officers
the bargaining unit Þ The TREASURER is obliged to render accounting of union funds
o At least once a year within 30 days after the closed of its fiscal year
Note: suits should be brought in the union’s own registered o When required by resolution of the majority of the members
name and NOT in the name of the President o Upon vacating his office (for transparency purposes)
To undertake activities Þ If union does not give a report, 20% of the union members can file petition with DOLE
designed for the to examine the books
benefit of the
organization
To levy/collect fees What to collect: membership fees, union dues, other special
and assessments assessments

Limitation:
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

CHAPTER 8 – COLLECTIVE BARGAINING Þ Two corporations cannot be treated as a single bargaining unit even if their businesses
are related and even if some employee of the corporation are the same ones manning
COLLECTIVE BARGAINING UNIT the other corporation
Þ A group of employees who share mutual interests within a given employer unit
Þ Comprised of COLLECTIVE BARGAINING AGENT
o All or less than all of the entire body of employees Þ ©Legitimate labor organization designated or selected by the majority of the
o Occupational grouping within such employer unit employees within the bargaining unit and certified as such by the DOLE to represent
o Geographical grouping within such employer unit them in negotiating a collective bargaining agreement with their employer
Þ Appropriate collective bargaining unit = if shares substantial mutual interests in Þ ©An unregistered labor union cannot be a bargaining agent
wages, hours of work, working conditions and other subjects of collective bargaining Þ To become a legitimate labor organization:
o Example of NOT appropriate = mixture of R&F and Sup because they don’t o SEBA Certification (SEBA means Sole and Exclusive Bargaining Agent)
share the same interest or
Þ Fundamental factors: o certification election
o Will of employees (globe doctrine)
o Community of employees’ interest SEBA CERTIFICATION
o Similarity of employment status Þ only a legitimate labor organization can request for a SEBA certification
o Prior collective bargaining history Þ © available lang to if there is ONLY ONE legitimate union, pag2 or more union hindi to
applicable
Globe Doctrine o Establishment should be unorganized (walang union)
Þ Main consideration in fixing the appropriate collective bargaining unit is the express o There is no other legitimate labor organization within the bargaining unit
will or desire of the employees Þ How to get the certificate
o File request for SEBA certification
Community of Interest Rule o Certificate of registration of the union (para nga malaman kung legitimate
Þ A.K.A. substantial interest rule labor organization siya)
Þ Main consideration in fixing the appropriate collective bargaining unit is the affinity o List employees
and unity of the employees’ interest o Name & address of the requesting union, name and address of the company
where it operates, bargaining unit sought to be represented, approx. number
Similarity of Employment Status Rule of employees
Þ Main consideration in fixing the appropriate collective bargaining unit is the status of o Statement as to non-existence of other union
employment Þ Must be posted in two conspicuous places in the establishment
o Non regular employees be treated separately from regular employees Þ SEBA certification qualifies the union to act as the collective bargaining representative
Þ © It also bars the filing of a petition for certification election for a period of one year
Prior Collective bargaining History FROM THE DATE OF ISSUANCE OF THE SEBA CERT – SEBA Certification Bar Rule
Þ A determining factor BUT not a decisive factor tawag dito

One Company-One Union Policy CERTIFICATION ELECTION
Þ GR: one company, one union Þ The process of determining through a secret ballot the sole and exclusive collective
Þ XPN: bargaining agent of the employees in an appropriate bargaining unit
o when supervisors forms a different unit separate and distinct from R&F Þ A petition for certification election can be filed by
o where employer unit needs to give way to other bargaining unit like craft, o A legitimate labor organization (again, dapat duly registered)
plant, subdivision etc. o A duly registered federation or national union on behalf of its local chapter
o when a certain class of employees are excluded from the coverage o An employer when requested to bargain collectively

Separate bargaining units for every corporation

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

PETITION FOR CE IN UNORGANIZED PETITION FOR CE IN ORGANIZED o When the CBA negotiation are ongoing, or a deadlock has been submitted
ESTABLISHMENT ESTABLISHMENT Þ Employers participation is limited to receiving notice and submitting the list of
Can be filed anytime Can be filed only during the freedom employees to the pre-election conference
period (60 days prior the expiry of CBA)
Mere filing of the petition is enough to Need to file verified petition with at least THE CERTIFICATION PROCEEDING
hold the certification election. the consent of the 25% of all employees in Þ Filing of a petition should be with the DOLE Regional Office who issued a certificate of
No need for the 25% consent the bargaining unit registration
Þ Party may move for the dismissal of the petition on the ff grounds
GROUND FOR DISMISSAL DETAILS
Order granting the conduct of a If supported by 25% = mandatory to order Lack of employer-employee Company and members of the petitioning union has
certification election is NOT APPEALABLE certification election relationship no employer-employee relationship
If less than 25% = discretionary to order Lack of legitimacy on the part Þ Not listed in the registry of Legitimate Labor
certification election of the petitioning union Organization
If totally unsupported by the 25% = Þ Its registration has been cancelled with finality
petition for CE should be dismissed Lack of written consent of Applicable only in organized establishment
Withdrawal made before filing = Med 25% of the bargaining unit
Arbiter cannot order conduct of Bargaining unit sought to be Appropriate collective bargaining unit = if shares
certification election represented is no an substantial mutual interests in wages, hours of work,
appropriate bargaining unit working conditions and other subjects of collective
Withdrawal made after filing = Med bargaining
Arbiter can still order conduct of
certification election Petition was filed within 1 Þ From issuance of SEBA Certification
year Þ From actual valid election, consent election or
run-off election
Þ If filed by a FEDERATION
o Only a duly registered federation can file a petition for certification election ©Petition is barred Þ There is a duly registered CBA
on behalf of its local chapter
Þ There is ongoing CBA negotiation
o Failure to submit charter certificate is a ground for dismissal
Þ There is a bargaining deadlock which is under
Þ If filed by EMPLOYER
conciliation, arbitration or the subject of a valid
o Only when it requested to bargain
notice
o Consent of the 25% of the employees is not required


Failure of a local chapter or
By Stander Principle
federation to submit the
Þ GR: An employee is considered a mere by-stander in a certification proceeding
charter certificate upon filing
because certification election is the sole concern of the workers
the petition
Þ XPN:
Failure of petitioner to appear
o The relationship of employer-employee does not exist
for 2 consecutive scheduled
o When the petitioning union is not listed in the Registry of Legitimate Labor
conference before the Med-
Union or when the registration has been cancelled with finality Arbiter
o When the bargaining unit sought to be represents by the petitioning union is

not an appropriate bargaining unit
o When the petition is not supported with the required 25% (applies only to
organized establishment)
o When there is a duly registered collective bargaining agreement
o When petition was filed within one year from certification as bargaining
agent – election year bar rule tawag dito
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Dismissed employees whose complaints have not yet been decided with finality
prior decision of
unorganized
Med-Arbiter
can vote

When to file motion
Step 4: Challenging of votes
for intervetion
within freedom Þ Grounds to challenge a vote before a ballot is deposited in the ballot box:
organized
period o He is not an employee of the company
o Has resigned or has been dismissed from service
Þ Legitimate labor union with substantial interest in the certification election can o Not a member of the bargaining unit
intervene in the certification proceeding Step 5: Handling of challenged votes
Þ Incumbent collective bargaining agent is an automatic intervenor Þ Election officer shall do the ff
Þ Certification proceedings may be suspended if a participating union has been charged o Place the challenged votes in an envelope
with UKP for being a company union o Indicate the voter’s name on the envelope, party challenging the voter
Þ Preliminary conference will proceed if no motion to dismiss/suspend is filed and the ground
o During the preliminary conference the parties may agree to a consent o Sign the sealed envelope
election o Record all challenges
o In a consent election the Med arbiter will no longer decide on the merits of o Consolidate all envelopes
the petition and the parties will now agree to the mechanics of the election Þ Sealed envelopes will be opened only when the number of segregated voters will
materially alter the results of the election
Step 6: Proclamation of Election Results
unorganized not appealable Þ The Med-Arbiter will proclaim the election results and certify the winning union
as the collective bargaining agent
Appeal from cert
o If there is no election protest within 5 days from the close of election
election order
SOLE within 10 days
and no challenge or eligibility issue was raised
organized
from receipt
ELECTION PROTEST
Þ Only a party-in-interest may file a protest
CONDUCT OF ELECTION Þ ©Union who did not partake in the election may not file protest
Þ Protest not raised are deemed waived
Step 1: Pre-election conference Þ Protest must be filed within 5 days after the close of the election proceeding
Þ Purpose is to discuss the mechanic of the election
Þ In case of disagreement over the eligibility – all contested voters will be allowed FAILURE OF ELECTION
to vote but their ballots will be segregated in individually sealed envelopes Þ When votes casts is less than the majority of the number of eligible voters and there
Step 2: Notice of Election are no material challenged votes
Þ This is a mandatory requirement that cannot be waived Þ A motion of immediate holding of a re0run election may be filed within 6 months from
Þ Must be posted at least 10 days before the actual date of election ion 2 the declaration of the election
conspicuous places in the company premises
Þ Notice of Certification election must contain: TIE VOTES
o Date & time of election Þ If there tie between contending unions, or tie between no union and one union
o Names of all contending unions Þ Re-run election must be conducted within 10 days from posting of notice of re-run
o Description of the bargaining unit election
o List of eligible and challenged voters
Step 3: Voting proper RUN-OFF ELECTION
Þ All employees covered by the bargaining unit are eligible to vote Þ ©Conducted when, in a certification election with at least 3 choices, nobody obtained
Þ Probationary employees are qualified to vote a majority of the valid votes cats and the total number of votes for all the contending
Þ Striking employees are also qualified to vote unions is at least 50% of the total number of votes
Þ Memebers of religious sects can vote
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Only the two labor organization can participate, yung “no union” di na yun option sa o CBA will be deemed ratified if the majority of the employees covered by the
voting bargaining unit approve of it
Þ Will use the same voter’s list Þ Registration of the CBA
Þ If the second highest number of votes is a tie between two or more unions, a RE-RUN o CBA should be submitted to the DOLE for registration
ELECTION between the tied union shall be conducted o This is necessary for stable and undisturbed administration
o Must be submitted to DOLE within 30 days from the execution of the CBA
VALID ELECTION o A duly registered CBA will bar a petition for election – tawag dito Contract
Þ Valid when at least majority of all eligible voters in the bargaining unit were able to Bar Rule
cast their votes § Meaning a petition for certification election may only be filed
Þ A valid election will bar any union from filing a petition for certification election during the freedom period (60 days before expiry)
WITHIN ONE YEAR from the holding of the election – tawag dito Election Year Bar • Note that a petition for certification election filed outside
Rule of the 60 day period prior the expiry of the 5 year term of
o Note that the election year bar rule is not applicable if there is failure of the CBA will be dismissed
election kasi technically speaking walang election na naganap § A duly registered CBA means it has complied with all the
requirements of registration
COLLECTIVE BARGAINING NEGOTIATIONS § If the CBA has deficiencies but was still registered, hindi yun
Þ Collective bargaining agent must initiate the collective bargaining negotiation by considered na duly registered CBA – hindi magaapply ang contract
sending its collective bargaining proposal bar rule sa hindi duly registered CBA
Þ Employer will submit counter proposal • Example ng deficiency: not posted in 2 conspicuous
Þ Parties will then sit down to negotiate places
Þ © If a certified collective bargaining agent started to negotiate a CBA within one year Þ The term of the CBA in so far as representation is concerned is 5 years reckoned from
from the election/ granting of SEBA certification, filing of certification for election is the date of effectivity
barred o This means that during the 5 year period no other union may file a petition
o Tawag dito Negotiation Year bar Rule for certification election except kung freedom period na
o © Reckoning period is start of negotiation o © Parties may re-negotiate the term of the CBA during the 5 year BUT NOT
o © If nagexpire na yung one year period, pwede na magfile ng petition for LATER THAN 3 YEARS AFTER ITS EXECUTION
certification election (Kampil vs Trajano)
Þ Minutes of the meeting do not form part of the CBA unless those promises are formally EFFECTIVITY OF RE-NEGOTIATED CBA
incorporated in the CBA
DEADLOCK WHEN AGREEMENT TOOK PLACE EFFECTIVITY DATE
Þ If parties are unable to agree on the terms of the collective bargaining agreement Came into an agreement within 6 Effectivity shall retroact to the day
Þ The following are the remedies: months from expiry of the 3rd year of immediately following the expiry of the
o Bring matter to NCMB for conciliation the CBA 3rd year
o Submit matter for arbitration Agreement arrived at after 6 months Parties has the discretion to fix the
o Declare a strike or lock out from the expiry of the 3rd year effectivity date
Þ Filing of any petition for certification election is barred 6 months have lapsed, and the Effectivity date shall be when the
negotiation resulted in a deadlock and arbitrator rendered his final decision
SUCCESSFUL NEGOTIATION the matter was submitted for
Þ Signing of CBA means the parties have come to an agreement on the terms of it arbitration
Þ Posting of the CBA will ensue
o This is mandatory and cannot be waived FREEDOM PERIOD
o CBA shall be posted for 5 days in at least 2 conspicuous place Þ 60 day period prior the expiration of the CBA
Þ Ratification of CBA Þ Union members may validly resign from the union
o 5 days after the posting the CBA shall be submitted to the employees covered Þ A local union may disaffiliate from its mother federation
for ratification Þ The majority status of the incumbent collective bargaining agent can be challenged
o This is mandatory and necessary through a petition for certification election
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ The parties can seek the termination or modification of the existing CBA NOTE: even if there is an existing collective bargaining agent, the employer may still
entertain individual grievances, intervention of the bargaining agent is not required if the
UNREGISTERED CBA following are met:
Þ © Still binding between the parties 1. the grievance is individual in nature
Þ © But it will not bar the filing for certification election 2. the adjustment of the grievance does not contravene the CBA
3. the bargaining agent must be given opportunity to be present during the
SUBSTITUTIONARY DOCTRINE adjustment
Þ Employees cannot revoke a validly executed cba by the simple expedient of changing
their bargaining agent. The new collective bargaining agent is obliged to respect the DUTY TO BARGAIN
CBA Þ grievance handling is part of duty to bargain
Þ The new agent is not obliged to assume the personal undertaking of the former Þ collective bargaining does not end with the execution of CBA because it is a
collective bargaining agent continuous process.
Þ CBAs have mandatory provision for grievance machinery, otherwise without which
HOLD OVER PRINCIPLE it will not be registered
Þ In the absence of a CBA the parties must maintain the status quo and must continue to
observe the terms and conditions of the existing agreement What are the only grievance cognizable by the grievance machinery?
1. Those arising from the interpretation or implementation of their CBA
COVERAGE OF CBA 2. Those arising from the interpretation or enforcement of company personnel
Þ ©CBA shall apply to and is binding on all employees covered by the collective policies
bargaining unit whether union members or not Þ Violations of CBA are no longer treated as unfair labor practices (except those which
are gross in character)
SUSPENSION OF CBA
Þ The right to free collective bargaining includes the right to suspend it GRIEVANCE PROCEDURE
Þ The right of the employee to participate in the policy and decision making is confined Q: for sir, if shop steward says invalid yung grievance? What will the employee do?
only to processes that directly affect their rights, benefits and welfare. 1. Employee presents his grievance to the shop steward, then the shop steward
o It does not include matters concerning business operations, management of determines the validity of the grievance
business, provisions of the CBA, traditional areas of CBA 2. If valid, the shop steward will bring the matter to the employee’s immediate
Þ Companies may share the with the union its prerogative of formulation the code of supervisor who shall exert effort to settle the grievance
discipline 3. If no settlement is reached, the grievance shall be referred to the grievance
o Why? Because the code of discipline is related to an employee’s security of committee
tenure and is not purely business oriented. 4. If still not settled with the grievance committee, it shall be automatically
referred to voluntary arbitration
CHAPTER 9 – GRIEVANCE HANDLING AND ARBITRATION
VOLUNTARY ARBITRATION – a system whereby the parties agree to refer their dispute
GRIEVANCE – a dispute or controversy between an employer and the collective to an impartial third person for a final and binding resolution.
bargaining agent, individual employee or group of employees, arising from:
1. interpretation or implementation of the CBA COMPULSARY ARBITRATION – a third party appointed by the government
2. interpretation or enforcement of company personnel policies

Who are the parties? How does voluntary arbitration acquire jurisdiction over grievance cases?
Þ employer vs bargaining agent Þ Upon receipt of the agreement
Þ employer vs employee
Þ employer vs group of employees

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Dispute must first be brought to grievance Þ Voluntary arbitrators have the power to issue WRIT OF EXECUTION. (they may
machinery for resolution requires the sheriff of the NLRC to execute the arbitration award
Þ If the termination dispute pertains to interpretation of the company policy / cba
provision = jurisdiction of arbitrator
The grievance machinery failed to resolve the
dispute Þ If termination


The parties must agree to submit the dispute for
voluntary arbitration How to appeal decisions or awards of voluntary arbitration?

Þ Appealable to CA under Rule 43
FINALLY, the voluntary arbitrator receives the
Þ NOT through special civil action
submission agreement duly digned by the parties
Þ Appealable within 15 calendar days from the receipt
Þ Gwagwa national college
Can a dispute be submitted to voluntary arbitration without availing of the grievance
machinery?

YES, only if matters did not arise from the interpretation or implementation of the CBA or
company personnel policies. VOLUNTARY Appeal (Rule 43) Court of Appeals
Example: the dispute is about the violation of the company code of discipline particularly ARBITRATION
the provision on immoral conduct.

How to select voluntary arbitrators?
Þ May be designated in advance
Þ CBA can stipulate the procedure for selection Grounds for approval:
Þ If the parties cannot agree on the selection procedure, the National Conciliation and
Mediation Board shall designate kapag di sila magkasundo kung sino arbitrator ang 4. 75% Filipino owned and controlled
pipiliin 5. Has the required capital (Php 1M local, Php 5M overseas)
6. Paid required bond
JURISDICTION OF VOLUNTARY ARBITRATORS (original and exclusive) Þ To secure all valid and legal claims arising from the violation of contracts of
employment and conditions of the grant and use of the license
1. Unresolved grievance arising from interpretation or implementation of CBA or Þ If bond is garnished, it should be replenished otherwise it will cause
interpretation or enforcement of company policies suspension of license
2. Wage distortion disputes in ORGANIZED establishment Þ This bond cannot be used as appeal bond
Þ If NOT ORGANIZED, there is no voluntary arbitration
3. Disputes arising from interpretation or implementation of the productivity
incentive program Capricorn In’tl Travel vs CA
4. Other labor disputes not under the original and exclusive jurisdiction of Doctrine: Failure of a recruitment agency to pay airline tickets does not make the travel
voluntary arbitration (termination, complaint for ULP, deadlock) – as long as agent entitled for the bonds paid by the recruitment agency. Garnishment was not
parties agree to submit the matter to voluntary arbitration proper because the matter does not involve an employment related claim. The
Þ Example: San Miguel case – there was no clear, equivocal and express garnishment of bond can only be proper for employment related claims. It is not
agreement that the parties agree to submit to voluntary arbitration applicable for breached civil obligation (contract of sale of ticket)

Þ © The specific dispute to which the parties agree to submit for voluntary arbitration Sunace vs NLRC
must be EXPRESSLY IDENTIFIED. DOCTRINE: Article 1924 of the New Civil Code states that the agency is revoke if the
Þ Cost of arbitration must be shared equally by the parties principal directly manages the business entrusted to the agent, dealing directly with
third persons.
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Facts: Divina Montehermozo is a domestic helper deployed to Taiwan by Sunace What is the prescriptive period?
International Management services (Sunace) under a 12-month contract. After the 3. Illegal recruitment under Labor code = 3 years
expiration of the contract, Montehermozo continued her employment with her 4. Illegal recruitment under Migrant Workers Act
Taiwanese employer for another 2 years when Montehermozo returned to the Þ Simple illegal recruitment = 5 years
Philippines, she filed a complaint against Sunace, Wang, and her Taiwanese employer Þ Illegal recruitment involving economic sabotage = 20 years
before the National Labor Relations Commission (NLRC). She alleges that she was Reckoning: from the day of the commission of from discovery of violation if the commission
underpaid and was jailed for three months in Taiwan. She further alleges that the 2- of the violation was not known at that time
year extension of her employment contract was with consent and knowledge of Sunace.
Sunace, on the other hand, denied all the allegations. CHAPTER 10 –STRIKES, LOCKOTS AND PICKETING

What is an illegal recruitment? STRIKE – any TEMPORARY STOPPAGE OF WORK by the concerted action of employees
Þ Carried out by a person who is not a holder of a license or authority because of a labor dispute.
Þ Carried out by a person who commits prohibited practices © Key words: dapat may CONCERTED ACTION, TEMPORARY STOPPAGE OF WORK MUST
ARISE FROM A LABOR DISPUTE
When is illegal recruitment qualified?
Þ If committed in large scale (carried out against 3 or more persons) STOPPAGE OF WORK
Þ If committed by a syndicate (carried out by a group of 3 or more person Þ Must be concerted (ex. walk-out, mass leave, slowdown, sit down) –
conspiring with one another) Þ Must be temporary (must NOT be permanent like a mass resignation)
Þ Must arise from a labor dispute – a labor dispute includes any controversy or matter
What are the prohibited acts? concerning terms and conditions of employment or the association or representation
14. Charging excess fees of persons in negotiating, fixing, maintaining, changing or arranging the terms and
Þ Charging amount greater than allowed conditions of employment, regardless of whether the disputants stand in the
Þ Requiring worker to pay more than what he actually receive as a loan or advance proximate relations of employer employee
Þ Recruitment agencies cannot collect from workers o There need not to be a direct employment relation between the parties in
Þ Manning agencies cannot collect from maritime employees order that controversy can be considered as a labor dispute
15. Publishing false information in relation to recruitment or employment Examples:
Þ Publishing non-existent projects 1. Joined mass demonstration n Malacañang – NOT a strike because there was no
16. Misrepresentation in securing license labor dispute
17. Inducing a worker already employed to quit his employment in order to offer him 2. Joined the welgang bayan about oil price hike – NOT a strike because there was
another no labor dispute
Þ Unless the transfer is designed to liberate worker from oppressive terms of
employment Who can declare a strike?
18. Blacklisting of workers Þ Only a CERTIFIED collective bargaining representative can declare a strike
19. Recruiting workers in harmful jobs
20. Obstructing inspection
Þ SOLE has visitorial powers and may inspect at any time What if there is no certified collective bargaining representative?
21. Failure to file required reports Þ A legitimate labor organization
22. Substituting or altering employment contracts without approval Þ On the ground of unfair labor practice only
23. Becoming an officer or board member of a travel agency
24. Withholding travel documents of applicant workers MANDATORY REQUIREMENTS OF A STRIKE
25. Failure to deploy a worker without valid reason 1. Notice of strike
Þ Workers must be deployed within 60 days from the date of issuance of the 2. Strike vote
Overseas Employment Certificate 3. Strike vote report
26. Allowing a foreigner to manager recruitment agency Þ ©Failure to comply with these requirements would render the strike illegal
Þ Because of the requirement that it must be 75% Filipino owned Þ ©The issue must be strikable
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Q; Is it possible for medical institutions to strike?

NOTCE OF STRIKE A: it is discouraged, but should the strike be inevitable, the striking union must provide
and maintain an effective skeletal workforce
if ground for strike is based on ULP - 15 days before intended Note: the SOLE shall assume jurisdiction or certify the same for compulsory arbitration
date of strke
within 24 hours
File wth

NCMB EMPLOYMENT STATUS OF STRIKERS
if based on CBA deadlock - 30 days before intended date of strke

Þ Strikers do not lose their employment status during strike because they are not
Purpose: to provide a cooling-off period in order for the parties to settle their disputes in a considered to have abandoned their employment
peaceful manner Þ Strikers are not entitled to their wages during period of strike (no work no pay)
Þ If the union strikes before the lapse of the cooling period, the strike is illegal
Q: What happens if there is an improved offer from the employer?
When cooling-off period need not to be observed?
Þ When the dispute pertains to ULP involving DULY ELECTED union officers to the point Þ NCMB shall conduct a referendum by secret balloting among the union members
that the existence of the union is threatened Þ If offer is acceptable and majority of the union members votes to accept the improved
o Duly elected means election was done within the required process of by- offer, then the strike ends.
laws. Hindi appointed.
o Even if they can forego with the cooling off period, the union is still required INJUNCTION AGAINST STRIKES
to file a notice of strike, conduct a strike vote, submit strike vote report and
observe the 7-day strike ban GR: Strikes may not be enjoined
STRIKE VOTE XPN:
Þ Union must first conduct a referendum to determine if the union members are in favor 1. If declared against an industry indispensable to national interest
of a strike (pero kailangan muna niya mag file ng notice of strike 24 hours in advance 2. If staged by employees who are NOT accorded the right to strike (ex. managerial
of the referendum) employees)
Þ Done through secret ballot 3. If staged on other non-strikable issues (ex. intra-union / inter union dispute,
Þ Needs majority of the TOTAL UNION MEMBERSHIP, otherwise strike will be illegal correction of wag distortion)
o ©Note: hindi majority ng voters, majority dapat ng total union membership 4. Illegal acts committed during strikes may be enjoined

STRIKE VOTE REPORT Who can issue injunction against strikes?
Þ Result of the strike vote should be reported to NCMB at least 7 days before the SOLE – in strikes against an industry NLRC – for other exceptional cases
intended strike indispensable to the national interest
Þ Meaning within 7 days the union cannot yet strike Who can remove illegal blockade?
IN PUBLIC PROPERTIES – local IN PRIVATE PROPERTIES – blockage in
WHEN TO DECLARE TO STRIKE government egress and ingress may only be removed
Þ The two period should lapse in accordance with proper injunctive
o Cooling off period (15 or 30 days) AND order from NLRC
o 7 day strike ban Who is a STRIKE-BREAKER?
Note: these two requisites must concur Þ A person who obstructs, impedes or interferes with by force, violence coercion,
Example: threats or intimidation any peaceful picketing by employees during a labor
Filed notice of strike: June 15 controversy.
Cooling off period end: June 30 Þ Strike-breakers are PROHIBITED under the Labor Code
Filed strike vote report: June 30
Strike day should be: July 7 onwards ESCORTING REPLACEMENTS
Þ PNP / AFP are prohibited to escort any person who will replace the strikers
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ If the person being escorted will NOT REPLACE the strikers, then it is allowed (ex. NOTICE OF LOCKOUT
person being escorted are non-striking employees who were subjected to violence by
the striking employees)
if ground for lockout is based on ULP - 15 days before
intended date of lockout
STRIKE AREA File wth
Þ The establishment, warehouse, depots, plants or offices, including the sites or
NCMB
premises used as run-away shops of the employer, as well as the immediate vicinity if based on CBA deadlock - 30 days before intended
used by strikers in moving to and from before all points of entrance date of lockout
Þ Basically, kung saan sila nagsstrike yun yung strike area
Purpose: to provide a cooling-off period in order for the parties to settle their disputes in a
ROLE OF POLICE peaceful manner
Þ Has limited role of enforcing laws and legal order, maintaining peace and order, and Þ Observance of cooling period is mandatory
protection of life and property Þ Employer cannot declare a lockout prior the expiration of cooling period
Þ They should not be stationed in the picket or confrontation line
Þ They should stay 50 meters away from the picket line LOCK OUT VOTE
Þ Role is only supportive. Service of lawful orders or writs is the primary concern of the Þ Employer must first conduct a referendum among the BOD or partners to know
representative of DOLE whether they are in favor of the lockout
Þ This is a mandatory requirement
ARREST OR DETENTION OF UNION OFFICERS OR MEMBERS Þ Employer should notify the NCMB 24 hour in advance
GR: union officers / members cannot be arrested or detained for union activities without Þ NCMB may supervise the referendum
previous consultation with the SOLE Þ Voting should be done through secret ballot.
XPNs: Þ If majority of BOD / partners votes in favor, then lockout may be declared
1. On the grounds of national security and public peace
2. In case of commission of crime LOCKOUT VOTE REPORT
Example: If there is a person who possesses deadly weapon Þ Employer should report the results of the lockout voting to NCMB at least 7 days
Þ If criminal case shall be filed, clearance must first be obtained from DOLE before filing before the intended lockout
a criminal case arising out of a labor dispute
Þ An injunction order issued in the labor case = compliance with the clearance WHEN TO DECLARE A LOCKOUT
requirement Þ The two period should lapse
o Cooling off period (15 or 30 days) AND
LOCKOUT – temporary refusal of an employer to furnish work to union members because o 7 day strike ban
of a labor dispute Example:
Filed notice of strike: June 15
LEGAL GROUNDS FOR DECLARING A LOCKOUT Cooling off period end: June 30
1. Collective bargaining deadlock Filed strike vote report: June 30
2. Unfair labor practice Strike day should be: July 7 onwards
LOCKOUT IN MEDICAL INSTITUTIONS
MANDATORY REQUIREMENT OF LOCKOUT Þ Lockouts in hospitals, clinics and similar institutions are STRONGLY DISCOURAGED
1. Notice of lockout Þ Should a lockout be declared employer must provide an effective SKELETAL
2. Lockout vote WORKFORCE
3. Lockout vote report Þ SOLE may immediately assume jurisdiction over the dispute within 24 hours from
knowledge of lockout
Þ Contending parties must strictly comply with the order, prohibitions and/or
injunctions issued by SOLE

REFERENDUM ON REDUCED OFFER
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Even if there is a declaration of lockout, the NCMB is still obliged to continue mediating Þ SOLE has the power to (without the need of prior notice/hearing):
and conciliating 1. Assume jurisdiction over the dispute and decide it
Þ A reduced offer from the union means that the NCMB shall conduct a referendum 2. Certify the dispute to the NLRC for compulsory negotiation
among the BOD / partners to determine if the reduced offer is acceptable Þ ©Actual strike or lockout is NOT necessary for the exercise of SOLE’s power
Þ If the offer is acceptable, the lockout ends. Þ Authority of SOLE includes and extends to all questions and controversies arising
therefrom including all cases over which the Labor Arbiter has exclusive jurisdiction
LIMITATIONS ON THE RIGHT TO LOCKOUT Þ SOLE certifies the dispute to NLRC for compulsory arbitration

© When a strike / lockout cannot be declared? LEGAL EFFECT OF ASSUMPTION / CERTIFICATION ORDERS
1. Without first having bargained collectively Þ A strike / lockout is AUTOMATICALLY enjoined
2. Without filing a notice of strike / notice of lockout Þ Imposition of sanction against the strikers pushes through and is not affected by the
3. Without conducting a strike vote/lockout vote and submitting a report thereto certification
4. After assumption of jurisdiction of SOLE Þ SOLE cannot prevent the company from imposing sanction / disciplinary actions
5. After certification or submission of dispute to arbitration against the illegal strikers because that would be a denial of due process
6. During the pendency of cases involving the same grounds for the strike or lockout
7. On inter-union and intra-union disputes DEFIANCE OF ASSUMPTION / CERTIFICATION ORDERS
Þ Assumption / certification orders automatically carries with it a RETURN-TO-WORK
©When to know if there is an illegal strike or lockout? order even if it is not expressly stated
1. Violation of specific prohibition of the law Þ Workers must return to their work even if they filed a motion for recon, otherwise
Ex. nagstrike or lockout yung hospital without effective skeletal workforce they will be liable for illegal acts under the labor code
2. Violation of specific requirement of the law Þ © The moment a striker defies a return to work order, they are deemed to have
Ex. no notice of strike or strike vote abandoned their job
3. Conducted for unlawful purposes
Ex. lockout to discourage employees from joining a union PICKETING
4. Conducted through unlawful means Þ Marching to and from before the premises of an establishment involved in a dispute,
Ex. strike / lockout carried out through violence generally accompanies by the carrying and display of a sign, placard or banner bearing
5. Violation of an existing injunction statements in connection with the dispute
Ex. when SOLE has assumed jurisdiction Þ Picketing is not the same as strike
6. Violation of an existing agreement PICKETING STRIKE
Ex. declared strike/lockout notwithstanding no-strike-no-lockout provision in Focuses on publicizing the labor dispute to Focus on stoppage of work
the CBA inform the public what is happening in the
What are the consequences for illegal strike? company
Þ Dismissal of union officers who participated and committed illegal
Þ Local union will be liable for damages, not the mother federation Can injunction be issued against picketing?
Carried out through the use of illegal Remedy:
What are the consequences for illegal lockout? means
Þ Employers will be liable for back wages and the workers terminated shall be entitled Carried out through the use of violence a Picketing can be enjoined (file of
to reinstatement and other illegal acts injunction)

If there is a need to protect the rights of 3rd

parties and innocent by standers
NATIONAL INTERESTS DISPUTES


What is the innocent by stander rule?
Þ Industries indispensable to the national interests are under the unlimited discretion
Þ Picketers may be enjoined from picketing establishments with whom they have no
of the SOLE
employment disputes (hindi naman pala sila employee nung pinipicket nila tapos
Þ Courts cannot review the declaration made by SOLE because the latter has the sole
sumali sila sa picket)
prerogative to determine what industries are indispensable to the national interests

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

CHAPTER 11 –TERMINATION OF EMPLOYMENT Employer temporarily assigned its sales supervisor to Sorsogon NOT
because the salesman has been AWOL. Employee refused the constructive
SECURITY OF TENURE - employer cannot dismiss an employee without just cause and temporary assignment and said that it was a constructive dismissal dismissal
authorized cause Þ © Reinstatement is not a relief in constructive dismissal, separation pay is an
Þ It does not guarantee perpetual employment appropriate relief
Þ It does not vest the employee an absolute right to their positions to the extent of
depriving employer of its prerogatives © ILLEGAL DISMISSAL – situation where an employee was dismissed without just cause
Þ It protects the employees who are holding regular employment or authorized cause or where the dismissal is too harsh a penalty
Þ Employees holding non-regular employment are also entitled but in a QUALIFIED
manner 3 types of illegal dismissal:
o Probationary – can only be dismissed for failure to qualify for regular 1. Dismissed for no valid cause
employment 2. Dismissal does not commensurate the offense
o Casual employees who rendered at least one year of service whether 3. Dismissal brought about by the harsh, hostile and unfavorable conditions set by
continuous or broken– employment cannot be terminated w/o valid or the employer amounting to dismissal
authorized cause if the activity they perform still exists
o Managerial employees – subject to stricter norm of discipline than ordinary Þ Illegal dismissal is not a criminal offense, meaning not penal in nature
R&F Þ © Remedy for illegally dismissed employees is to FILE A COMPLAINT FOR ILLEGAL
Þ Protects employees against dismissal without just cause and personnel actions DISMISSAL with the Labor Arbiter. Injunction is NOT a relief.
Þ Complaint for illegal dismissal must be filed within the following period:
Just Cause Authorized Cause o If praying for reinstatement: 4 years from date of illegal dismissal
Employee has committed for infraction Employee is not at fault, but dismissed for o If praying for separation pay without reinstatement: 3 years from date of
(may kasalanan) economic reason (walang kasalanan) dismissal
No relief for employee Entitled to separation pay o Pero pag ang tanong lang is action for reinstatement – 4 years
Employer is obliged is obliged to give the Employer is required to give 30 day notice o NOTE: Criminal complaint does not interrupt the running of the prescriptive
employee to give the opportunity to to employee and DOLE period
explain
What are the reliefs for illegal dismissal?
CONSTRUCTIVE DISMISSAL FOR OFWs FOR LOCAL WORKERS Other awards
Þ © Involuntary resignation brought about by the harsh, hostile and unfavorable 1. Salaries for the 1. Reinstatement without 1. moral and exemplary
conditions set by the employer amounting to dismissal, aka “dismissal in disguise” unexpired portion of loss of seniority rights damages
Þ Test of constructive dismissal: whether a reasonable person in the employee’s employment 2. Separation pay – if 2. attorney’s fees
position would have felt to give up his position because of harsh, hostile and 2. Reimbursement of reinstatement is no
unfavorable conditions set by the employer placement fee with longer possible
Þ Not every act of an employer that drives an employee to resign or quit his employment 12% interest per 3. back wages
can be considered as constructive dismissal annum
Þ Employee is not required to give one-month advance notice if constructively
dismissed REINSTATEMENT
Examples: Þ A restoration to a state from which one has been removed or separated. Return to the
Immediate superior discriminated employee without reason by not position from which he was removed.
Constructive Þ Employee cannot order reinstatement to a position he never occupied
submitting performance review as basis for merit increase,
dismissal Þ © Reinstatement is a relief separate and distinct from back wages. They are not
diminishing supervisory status, and withholding benefits.
Employer transfers employee to another position or location due to NOT complements. An employee may be awarded reinstatement without back wages or
business demands constructive back wages without ordering reinstatement.
dismissal Þ An employee who has eventually obtained employment elsewhere cannot be denied
Employer demoted her from 14 years in production recorder to picker Constructive the right to reinstatement (reason: a dismissed employee cannot be expected to
dismissal remain idle while his claim is pending adjustment)
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Proper only if the employee is dismissed, otherwise if the employee is NOT dismissed SEPARATION PAY AS ALTERNATIVE TO REINSTATEMENT
reinstatement is not proper Þ The purpose of separation pay is to provide the employee money during the period
Þ If employee reaches the compulsory retirement age, he can no longer be reinstated when he will be looking for another employment
Þ Separation pay is awarded if reinstatement is no longer possible:
What is the Doctrine of Strained Relations? 1. When position vacated no longer exists and there is no substantially equivalent
Þ Under this doctrine, reinstatement should not be ordered if the relationship between position
the parties has become so strained and ruptured as to preclude a harmonious working 2. When the relationship between employer and employee has been severely strained
relationship. 3. When supervening events have occurred (ex. establishment has closed, ownership
Þ Mere filing of a complaint for illegal dismissal does not itself justify the application of transferred, employee because incapable)
Doctrine of Strained Relations Þ The amount should be at least 1 month salary or 1 month salary for every year of
service, whichever is higher, a fraction of 6 months being considered as one year
BACKWAGES Þ Separation pay and back wages can be awarded simultaneously because the purpose
Þ A relief that RESTORES THE INCOME THAT WAS LOST BECAUSE OF UNLAWFUL of the reliefs are different
DISMISSAL. This is the compensation which an employee would have earned had he Þ If an employee is dismissed for JUST CAUSE, he is NOT ENTITLED to separation pay,
not been unjustly dismissed but employers may award this is he was dismissed for a cause other than serious
Þ Back wages is not a cause of action but a relief misconduct or offenses reflecting his moral character
Þ Back wages and unpaid wages are not the same. Unpaid wages are compensation for
services already rendered but withheld by employer MORAL AND EXEMPLARY DAMAGES
Þ Full back wages are NOT automatically awarded for every illegal dismissal. Þ Reliefs required by the Civil Code
Þ Earnings derived by the employee elsewhere during the period of illegal dismissal MORAL DAMAGES EXEMPLARY DAMAGES
should not be deducted from the computation of back wages Should prove that his dismissal was Should prove his dismissal was affected in
Þ Computation of back wages of irregular workers (ex. piece-rate / seasonal workers) attended by fraud, or constituted an act a wanton, oppressive or malevolent
should be determined on the amount as to what these workers would have normally contrary to morals, good customs or public manner
earned had they not been dismissed. policy, and that he suffered social
When and what kind of back wages to award? humiliation, wounded feelings, grave
anxiety and similar injuries resulted
LIMITED NO AWARD OF therefrom.
FULL BACKWAGES
BACKWAGES BACKWAGES
1. When employee is dismissed 1. If penalty of 1. Employer acted
without any cause dismissal is not in good faith in ATTORNEY’S FEES
2. When dismissal is prohibited commensurate to dismissing the Þ Ordinary concept: Reasonable compensation paid to a lawyer by his client for legal
by law the offense employee services rendered.
Þ Dismissal of employee who committed 2. If the cessation of Þ Extraordinary concept: an item of damages paid to the client (the winning party)
filed a complaint or testified in 2. If there is delay in employment is Þ Attorney’s fees are not awarded every time a party wins a suit. The award for this must
a complaint for non-payment / filing the not brought be factual, legal and equitable.
underpayment of wages complaint for about by neither
Þ Dismissal of a female employee illegal dismissal dismissal nor LIABILITY OF CORPORATE OFFICERS
because of her pregnancy abandonment
Þ Dismissal of an employee who 3. If cessation of Þ GR: Corporate officers cannot be held personally or solidary liable with the
reported to work within 1 employment was corporation for back wages, damages or other money claims of employees even if they
month from the resumption of caused by are impleaded
operations of his employer or employee’s Þ XPNs:
his relief from military duty refusal to work. o If the corporate officer acted in bad faith
o If corporation is no longer existing and the employee can no longer run after
Look for computation of back wages in the labrel book the company

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ In order to be solidarily liable it must be shown that the officers deliberately or Þ Employer can change work schedule of its employees whenever the exigencies of the
maliciously designed to evade the financial obligation to the employee service so requires.
Þ Must be exercised for the advancement of the employer’s interest and not for the
Ransom Labor Union vs NLRC purpose of circumventing the employee’s rights
Doctrine: Solidary liability is imposed upon the highest and most ranking officer of the
corporation such as the President or Administrator. In this case, since there was bad faith PREROGATICE TO ABOLISH A DEPARTMENT OR SECTION
on the part of the company in closing down to evade responsibility of paying back wages, Þ If the employer decides to abolish a department or section, such action may not be
the President should be directly responsible to pay the back wages due to the dismissed questioned particularly where it was impelled by economic reasons
employees.
PREROGATIVE TO ORGANIZE AND ABOLISH POSITION
MANAGERIAL PREROGATIVES Þ Reorganization springs from the employer’s right to conduct its own business affairs
Þ Exercise of managerial prerogatives belong exclusively to the employer Þ Affected employees cannot validly insist in their old position and ranking because that
Þ NLRC or Labor Arbiters are not authorized to interfere with or substitute judgement would render the reorganization ineffectual
for that of the employer in the conduct of business. They can only inquire if the actions
of the employers are tainted with bad faith or grave abuse of discretion PREROGATIVE TO REDUCE PERSONNEL
Þ Employer cannot be compelled to employ a number of persons that his business do
PREROGATIVE TO CHOOSE WHO TO HIRE not require
Þ The right to select and appoint employees is the exclusive prerogative of the Þ No business can be required to continue operating at a loss just to keep the
employers employment of its workers
Þ Limitation on the prerogative to choose whom to hire is subject to the limitation of
Anti-Age Discrimination in Employment Act PREROGATIVE TO TRANSFER BUSINESS OWNERSHIP
DISALLOWED LIMITATION ALLOWED LIMITATION Þ Employers are free to merge or consolidate its business with another
1. Job advertisements which suggests are 1. If age is a bona fide occupational Þ Labor contracts being in personam, are no enforceable against a transferee or buyer
preference qualification of business enterprise
2. Requiring an applicant to declare his 2. If done in observance of seniority Þ A labor contract do no create a real right that should be respected by third parties
age or birthday system Þ Transferee or buyer is not legally obliged to absorb the employees of the transferor or
3. Discriminating because of age 3. If done in observance of bona fide seller, if they do so, the absorbed employees shall be considered new employees and
4. Denying opportunity for training and retirement plan will be placed on probationary status.
promotion because of age 4. If action is certified by the SOLE Þ If the transfer or sale was done in bad faith, the liability should be shared by both the
5. Laying off because of age transferor and transferee
6. Imposing early retire because of age
PREROGATIVE TO PROMULGATE COMPANY POLICIES, RULES AND REGULATIONS
PREROGATIVE TO PROMOTE Þ Company rules and regulations are generally valid and binding on the parties unless
Þ It is a management prerogative to promote employees shown to be grossly oppressive or contrary to law
Þ Promotion is a nature of gift or reward to which a person has the right to refuse this Þ Non-compete clause – valid if there is limitation in the type of business and
an employee cannot be subjected to disciplinary action if he refuses the promotion time/duration of prohibition
Þ Anti-nepotism policy – prohibits spouses from working in the same company
PREROGATIVE TO TRANSFER EMPLOYEES o Validity should be tested along the business necessity rule
Þ Management can transfer employees from one position to another or from one
location to another Duncan Association vs. Glaxo (love and marriage prohibited if with an employee of the
Þ Employers are free to move the employees in the business operations in order to competitor company)
ascertain where they will function with maximum benefit to the company Doctrine: The prohibition against personal or marital relationships with employees of
Þ If the employee refuses to transfer, he can be validly dismissed on the ground of willful competitor companies is reasonable because relationships of that nature might
disobedience compromise the interest of the company. It is a legitimate practice to guard business
confidentiality and protect a competitive position by even-handedly disqualifying from
PREROGATIVE TO CHANGE WORK SCHEDULE jobs employees or applicants for employment who are married to a competitor.
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

o If father of child is unmarried – woman will not be liable for disgraceful and
PREROGATIVE TO DISCIPLINE EMPLOYEES immoral conduct
Þ Employers has the inherent right to discipline his employees o If the father of the child is married to another woman – there is a cause for
Þ Employer can impose sanction lighter than those specifically prescribed by the rules administrative sanction against the father and mother
Þ Certain factors must be considered:
1. Nature of offense - serious offenses deserves supreme penalty of dismissal SEXUAL HARRASMENT
but minor infractions should not be meted with the penalty of dismissal Þ © Act of demanding or requesting any sexual favor by a person having authority or
2. Position of employee – managerial employees, supervisory and other moral ascendancy over another, regardless of whether the demand or request is
occupying higher position are subject to stricter norms accepted or not
3. Degree of damage – if the offense has not caused serious damage then
dismissal may be too harsh. But sometimes damage is not a determining DISOBEDIENCE TO ORDER OF EMPLOYER
factor (ex. employee has been neglectful of his duties warrants dismissal) 1. Must be willful – done intentionally without justifiable excuse
4. Past records of the employee- if previous disciplinary actions do not reform 2. Order must be reasonable and lawful – reasonable depends upon the peculiar
the employee, it is appropriate to impose a harsher penalty circumstances of each case
5. Length of service – the longer an employee stays in the service, the greater 3. Order must be known to the employee – because how can you expect the employee to
is his responsibility for knowledge and compliance with the employer’s code comply if the order is not known (ex. if employee is being made to comply with an
of discipline unwritten policy)
6. Overall consideration – all other factor will be overshadowed by the 4. Order must pertain to the duties which the employee had been engaged to discharge
seriousness of the offense
NEGLECT OF DUTY
JUST CAUSES FOR DISMISSAL Þ Failure to give proper attention to a task expected of an employee because of
1. Serious misconduct or willful disobedience by the employee of the lawful orders carelessness or indifference
of his employer or representative in connection with his work Þ A person has not done that which it was his duty to do
2. Gross and habitual neglect by the employee of his duties Þ To constitute a ground for dismissal, neglect must be (1) GROSS (2) HABITUAL
3. Fraud or willful breach by the employee of the trust reposed in him by his Þ Damage is not necessary to be proven by the employer, it is enough that the employee
employer or duly act tends to damage or prejudice the employer
4. Commission of a crime or offense by the employee against the employer or any
immediate member of his family or duly authorized representative FRAUD
5. Other causes analogous to the following Þ Knowing misrepresentation of the truth or concealment of a material facts to induce
another to act to his or her detriment
MISCONDUCT Þ To constitute a just cause for dismissal, the fraud must be (1) WORK-CONNECTED (2)
Þ A wrongful intent, willful in character COMMITTED AGAINST THE EMPLOYER
Þ To validly constitute as a just cause, the misconduct must be SERIOUS, and WORK Þ
CONNECTED. If serious lang, not work connected it will not warrant dismissal.
Þ Series of irregularity if taken in totality may constitute serious misconduct BREACH OF TRUST
Þ Fighting within the company premises is considered serious misconduct Þ Employee must hold a position of trust and confidence
Þ Employees picking fights, belligerent or hard to deal with constitutes serious Þ To constitute a just cause for dismissal, the breach of trust must be (1) WILLFUL (2)
misconduct RELATED TO THE PERFORMANCE OF EMPLOYEE’S FUNCTIONS
Þ Harassing co-employee within the company premises even after office hours is a Þ Employee positions of trust and confidence
work-related misconduct o Managerial employees
Þ Engaging in sexual intercourse inside company premises is serious misconduct o Those who regularly handle significant amount of money
Þ Willfulness is shown by arrogance and hostility
IMMORALITY Þ Must be work related – dishonesty, corrupt interest, rendering service to a rival
Þ A conduct which do not conform to what society views as moral /competitor
Þ Pregnancy out of wedlock may be immoral from the religious perspective, but not Þ Dishonest falls within the category of willful breach of trust
necessarily immoral from the public and secular viewpoint Þ Misappropriation of company funds is also a breach of trust
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ Employee engaging in corrupt practices such as accepting money from contractors Þ To give employee the chance to explain his side and present evidences if necessary
Þ Employers have the right to guard its trade secrets, manufacturing formula, marketing Þ Employee can have the assistance of a counsel if he desires
strategies and other confidential programs from competitors. Þ © Hearing is NOT a matter of right in disciplinary proceedings because these are
summary in nature
Doctrine of loss of trust and confidence
Þ The treatment of rank & file employees differ from that of managerial employees 3. Serve a written notice of dismissal
Þ In the case of rank & file employees, dismissal due to loss of trust and confidence Þ Indicate the justification
requires a higher proof of involvement in the questioned acts
Þ For managerial employees, mere existence of the basis of believing that there was a DISMISSAL WITHOUT DUE PROCESS
breach of trust and confidence is enough to justify dismissal Þ If validly dismissed, lack of statutory due process does not nullify the dismissal or
Þ Proof beyond reasonable doubt is not required render it illegal. It just makes the employer liable for nominal damages

BREACH OF NON-COMPETE AGREEMENT
reinstatement with
Þ A contract by which an employee is prohibited from engaging in a business (or Illegal dismissal backwages
employment) competitive with that of his employer after the term of his employment Employer did
for a given period is valid not observe
Þ Limitation on this kind of contract must either be TIME or PLCE due process
o ALLOWED: prohibiting employee from engaging in a similar or competitive Valid Dismissal nominal damages

business for a period of 5 years after the term of his employment

o NOT ALLOWED: prohibition from getting employed in any establishment
anywhere in the Philippines for a period of 5 years BURDEN OF PROOF
Þ Validity of dismissal = rests upon the employer
COMMISSION OF A CRIME Þ Fact of dismissal = rests upon the employee
Þ Crime must be committed against the:
o Employer DEGREE OF PROOF
o Immediate member of the employer’s family Þ SUBSTANTIAL EVIDENCE showing some basis that the employer had reasonable
o Authorized representative of the employer ground to believe that the employee is responsible for the misconduct
Þ Crimes referred are crimes against persons Þ Labor Arbiter cannot require proof higher than substantial evidence
Þ For other crimes, it will constitute valid cause for dismissal but under SERIOUS
MISCONDUCT PROBATIVE VALUE OF PERSONAL FILES OBTAINED FROM COMPANY ISSUED
COMPUTER
ANALOGOUS CAUSES Þ Any adverse personal communication or data that may be discovered by the employer
Þ Must have an element similar to those found in the specific just cause enumerated in a company issued computer (with or without the consent of the employee) can be
under Art 297 of the Labor Code used against such employee without violating the constitutional right to privacy of
o Example: communication
§ theft committed by an employee against a co-employee
§ Attitude problem gross inefficiency EFFECT OF ACQUITTAL OR CONVICTION
§ Inflicting physical injury against any person Þ The right of an employer to dismiss an erring employee is NOT DEPENDENT upon a
PROCEDURAL REQUIREMENT FOR DISMISSING AN EMPLOYEE FOR JUST CAUSE verdict of guilt or innocence in a criminal case
Þ Never dismiss an employee outright without giving proper due process Þ Acquittal in a criminal case does not invalidate the dismissal of an employee

1. Serve a written notice to the employee AUTHORIZED CAUSES FOR TERMINATING AN EMPLOYMENT
Þ Specify the act
Þ Give the employee ample opportunity / reasonable period to explain his side 1. Installation of labor Saving Device
Þ Employers have the right to follow economic policies that would ensure profit to itself
2. Conduct a hearing if necessary and for this purpose to mechanize or modernize its business and its processes.
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ This is an inherent prerogative of the government

Þ Example: installation of digital machineries as rendering the employment of the PROCEDURAL REQUIREMENTS FOR AUTHORIZED CAUSES
employee unnecessary (case in point: PLDT case). Dismissal is valid. 1. Written notice must be served at least one month in advance to the (1) affected
employee (2) DOLE (note: dalawang notice di pwedeng isa lang)
2. Redundancy 2. Notice must be served personally (mere posting in the bulletin board is not substantial
Þ A situation where the services of an employee are in excess of what is reasonably compliance
demanded by the actual requirements of the enterprise Þ If employer did not observe the notice requirement, the employer will be liable for
Þ Employer cannot be compelled to give employment to a greater number of persons nominal damages
than the economic operations of his business requires Þ “garden leave” – when employees are no longer required to report for work during
Þ To be valid, company must comply with the following requisites: the 1 month period, but their salaries are paid
o Abolition of redundant position must be in good faith
o Fair and reasonable criteria must be used in ascertaining what positions SEPARATION PAY
are to be declared redundant (ex. efficiency, seniority or preferred status) Þ Employees terminated due to authorized causes are entitled to separation pay
Þ Characterization of a position to be redundant cannot be questioned or reviewed by Þ Separation pay is dependent on the length of service
the courts because it is the employer who identifies this based on his business Þ A fraction of 6 months is considered as one whole year
requirements Þ No separation pay if closure is due to serious business losses
Þ Even if the employee is the only one occupying the position, the position may still be Þ Basis of computation is the latest salary
deemed redundant. o Salesmen paid by commission = average commission earned during the past
Þ Principle of last in first out is not applicable year
Þ Losses is not a requirement in redundancy because what is looked into is the necessity o Seasonal workers = ½ of average monthly pay during the last season times
of the position and not the financial position of the company no. of years they rendered
Þ Usually, a result of reorganization or over hiring of workers o Piece-rate workers = specially prescribed wage rate for piece rate workers
or the ordinary minimum wage rates prescribed by the RTWPB
3. Retrenchment
Þ Reduction of personnel by an employer to prevent or minimize business losses Installation of labor-saving one month pay for
Þ Usually adopted when there is lack of work, seasonal fluctuation, reduction in the device every year of service

volume of business, recession etc.

Þ 3 basic requirements for valid retrenchment: Employee was Retrenchmnent to prevent at least 1 month pay
o Retrenchment is necessary to prevent losses ( losses must be reasonably terminated due to losses or closure of
establishment
or 1/2 month pay for
every year of service
imminent, actual losses must be substantial, audited financial statement authorized causes
must prove expected or actual loss) Closure due to serious business
o Fair and reasonable criteria must be used in identifying who would be losses or due to an act of govt
w/o fault on the part of
no separation pay
dismissed and who would be retained employer

o Retrenchment must be restored to as a measure of last resort and after Can an employee be entitled to both separation pay, and retirement pay?
less drastic means have been tried and found insufficient YES, if there is a CBA and the CBA says so.
Þ The principle of last in first out usually applies. Temporary employees should first be
dismissed before the regular employees
Þ Business still continuous bet there is reduction in man power etc. DISEASE AS A GROUND FOR EMPLOYMENT
Þ Not confined to communicable diseases, not communicable diseases are covered (ex.
4. Closure of Establishment stroke
Þ Closure may be permanent closure which could be total or partial Þ Conditions must be complied with before terminating the services of an employee on
o Example: plant relocation the ground of illness
Þ initiated by the employer, not the government
o if done or initiated by the government, employer is not obliged to give o Continued employment of the sick employee is prohibited by law or is
separation pay prejudicial to his health or to the health of his co-employees
Þ there is a complete closure of business cessation
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

o © A competent public health authority must certify that the disease is such FULFILLMENT OF A MILITARY OR CIVIC DUTIES
of a nature or at as such stage that it cannot be cured within a period of 6 Þ Employee who is called upon to perform a mandatory military or civic duty does not
months even if with proper medical treatment. (di pwedeng private forfeit his employment
hospital) Þ Even if the duty exceeds 6 months
o Medical certificate is an indispensable requirement otherwise the Þ To keep his employment employee must signify his desire to resume to work not later
termination is illegal than 1 month after his military / civic duties
§ It should indicate that the illness cannot be cured within 6 months
§ Employer must be the one to get the medical certificate ABANDONMENT OF EMPLOYMENT
Þ HIV/ AIDS and Hepatitis B is not a ground for termination of employment Þ Deliberate unjustified refusal of an employee to resume his work
Þ Pregnancy related illness cannot be a ground for dismissal Þ Akin to voluntary resignation but there is no formal resignation letter
Þ A voluntary act of the employee akin to a resignation (quits his job without notice)
LAY-OFF Þ Elements of abandonment of employment:
Þ Temporary separation of an employee from service brought about by bona fide o Absence without notice, permission or justifiable reason for a reasonable
suspension of operation or fulfillment by an employee of a military or civic duty. period
Þ Legal effect of suspension of operations o Intent to sever the employment relationship
o If done in GOOD FAITH Þ How do you prove intent?
§ Employment status is merely suspended not terminated o Send letter to the employee that he is required to report for work, if the
§ Suspension of operations done in good faith for a period NOT employee still not reports for work then that shows intent not to report for
exceeding 6 months = employment is merely suspended work
§ Suspension of operation EXCEEDS 6 months = relationship Þ Mere absence does not indicate abandonment, it must be shown that the employee
automatically terminates, entitled to separation pay unless closure does not want to work anymore
of business is due to serious business losses Þ Intent to abandon can be seen in moonlighting, accepting work elsewhere and failure
o If done in BAD FAITH to report within a reasonable time
§ Employment relationship will deemed uninterrupted, employees Þ A notice to report for work must be sent to the employee’s last known address, if
are entitled to their wages during the period of suspension despite notice he fails to report for work it is indicative of his intent to abandon
§ If employer does not resume operations within 6 months, Þ If employee reports for work after receiving notice, then he may be charged of AWOL
permanent closure ensues = employment relationship will be Þ Intent to abandon is negated by the immediate filing of an action for reinstatement
deemed uninterrupted hence making employee entitled to their o Not applicable to cases where the complaint for illegal dismissal does not
wages during the period of suspension + separation pay pray for reinstatement but only for separation pay
§ Note that even if there is bad faith nobody can compel the employer Þ Burden of proof in proving abandonment of employment rests upon the employer
to continue its business
Þ NEW RULE: Can the 6 months period of temporary closure be extended? – in case of Abandonment Absence without official leave (AWOL)
declaration of war, pandemic or national emergencies the employer and the
No intention to return to work There is intention to return to work
employees may agree in good faith to extend the closure for another 6 months

o If they agree, it must be reported to the DOLE
VOLUNTARY RESIGNATION
o If during the extension period, the employer reduces personnel, the affected
Þ Formal renouncement or relinquishment of a job by the employee
employees are entitled to separation pay (length of service should include
the 1st 6 months of temporary suspension) Þ Elements of voluntary resignation
o It must be unconditional
Þ If the employer resumes operation, the employees retrenched will be given priority in
o There must be intention to relinquish the job
hiring
o There must be an actual act of relinquishment

TEMPORARY OFF / FLOATING STATUS Þ Indication of voluntariness in the resignation letter:
Þ Lay-off should not exceed 6 months, otherwise employment relationship shall o Expression of gratitude
automatically terminate Þ One month notice may be waived by the employer
Þ Example: security agencies / janitorial services Þ Employer may disregard the entire 30-day period or allow the employee a shorter
period before his resignation becomes effective
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Þ For voluntary resignation to take effect, it must be accepted or approved by the Average monthly pay during the last season multiplied by the
Seasonal employees
employer no. of years of service
o Once accepted by the employer, it cannot be withdrawn without the Employees paid Average commission earned during the past year of
consent of the employer purely on employment (not entitled to service incentive leaves and 13th
o If the employer does not approve of the withdrawal, the employee cannot commission basis month pay)
claim illegal dismissal because the employer has the right to determine who
his employees will be
Þ Resignation is NOT deemed accepted if the employee was still required to report for
work and explain his unauthorized absences
Þ GR: An employee who voluntarily resigns is NOT ENTITLED to separation pay
o XPN: employee is sanctioned by established company policy, stipulated in 50 y/o- for underground and surface mine
the contract or collective bargaining agreement Optional employees
retirement age
RETIREMENT 60 y/o - for ordinary employees
Þ Withdrawal from office, employment or occupation, upon reaching a certain number Retirement age
of years of service 55 y/o - for professional race jockey
o If there is a retirement plan, CBA, or employment contract an employee can
retire or be retired upon reaching the criteria established in the retirement Compulsary 60 y/o - for underground and surface mine
plan, CBA or employment contract. The criteria should be AGE or NUMBER retirement age employees
OF YEARS OF SERVICE
§ Retirement pay will depend upon the plan, CBA, or contract but it 65 y/o - for ordinary employee
should not fall below the limits set by the Labor Code
o If there is NO retirement plan, CBA, or employment contract an employee
may retire upon reaching the retirement age prescribed by the Labor Code
§ No plan, CBA , or contract then follow retirement pay under Labor
Code (22.5 days for every year of service) CHAPTER 12 –CUMPOLSARY ARBITRATION
§ 22.5 days is composed of = 15 days salary + cash equivalent of 5
days service incentive leaves + 1/12 of the 13th month pay NLRC
§ Yung 22.5 days, yun yung sinasabi na ½ month salary for every Þ 24-man tripartite body composed of representative from the public sector, workers
year of service sa Labor Code sector, and employee’s sector.
Þ Employee must have served for at least 5 years in the establishment Þ Has 8 division, each composed of 3 members, exercises quasi-judicial powers
Þ “for every year of service” – actual service o Division 1-6 = handles cases from Luzon
o Division 7 = handles cases from Visayas
Þ © GR: All employees regardless of position, designation, status and irrespective of the
o Division 8 = handles cases from Mindanao
methods by which they are paid are entitled to the retirement benefits under the
Þ Presence of at least two Commissioners of a Division shall constitute a quorum
Labor Code (now including domestic helpers, persons in service of another)
o XPN: the following employees are not entitled to retirement benefits Þ Chairman can designate a commissioner from other division if the required
§ Those who have not rendered at least 5 years of service membership in a division is not complete and the concurrence of at least 2
§ Employees of retail, service, and agricultural establishments commissioners cannot be obtained
employing not more than 10 employees

Þ Optional retirement can only be exercised by the employee, it cannot be

initiated or pressed upon by the employer


How about for employee who do not have fixed wages?
Average daily salary for the last 12 months reckoned from the NLRC sits en banc on the Promulgation of rules governing the
Employees paid by following hearing and disposition of cases
date of retirement divided by actual working days in the
results
period
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Formulation of policies affecting its o Termination of corporate officers – regular courts

(the presence of the majority of its administration and operations o Those arising in the interpretation of CBA or personnel policies – belongs to
members is necessary to constitute a Granting of temporary authorization for a voluntary arbitration
quorum) particular division to hear and decide o Money claims of corporate officers – determine muna the nature of the
cases of another division money claim (discussed extensively in a topic below)
Þ Excluded from the jurisdiction of the Labor Arbiter
How to be an NLRC Commissioner? o Claims for employee compensation benefits
1. Must be a member of the Philippine Bar o Claims for SS benefits & maternity benefits
2. At least 15 years in the practice of law o Claims for Philhealth benefits
3. At least 5 years in the field of labor management relations o Pure money claims not exceeding P5K
4. Preferably a resident of the region where they shall hold office Þ Decision of the Labor Arbiter is automatically executory
Þ Can hold office up to 65, max age is 70 Þ Note that BOND is not a substitute for reinstatement
Þ © Same rank. Salary, and allowance as with the Presiding Justice and Assoc. Justice of Þ VOLUNTARY ARBITRATORS can hear and decide ULP and other labor disputes upon
the CA agreement of the parties
Jurisdiction of NLRC
Original & Exclusive Appellate Jurisdiction REASONABLE CAUSAL CONNECTION DOCTRINE
Þ Cases certified by SOLE pursuant to Þ Cases decided by the Labor Arbiter Þ ©There must be an employer- employee (EE) relationship otherwise the NLRC &
art 278 of Labor Code – those labor Þ Cases decided by the DOLE RD under Labor Arbiter cannot acquire jurisdiction
dispute causing or likely to cause a Art 129 of LC Þ For the labor arbiter to acquire jurisdiction, the claim must have reasonable causal
strike or lockout in an industry connection with the EE relationship
indispensable to national interests Þ The principal relief sought can be resolved under the Labor Code and not the Civil
Þ Injunction cases under art 225 & 279 Code
of the LC Example:
Þ Complaint filed by the employer against employee for sum of money arising from
REGIONAL ARBITRATION BRANCHES loan = NOT COGNIZABLE, involves debtor-creditor relationship
Þ Handle the compulsory arbitration of cases Þ Action filed by employer for the recovery of car issued by company = NOT
Þ Manned by Labor Arbiters & headed by an Executive Labor Arbiter COGNIZABLE because not a labor dispute
Þ Complaint for separation pay of security guard filed by a security agency against
How to be a Labor Arbiter? its principal = NOT COGNIZABLE, no EE relationship between Security Agency
1. Must be a member of the Philippine Bar and guards
2. At least 15 years in the practice of law
3. At least 5 years in the field of labor management relations UNFAIR LABOR PRACTICES
Þ Can hold office up to 65, max age is 70 Þ Allegations in the complaint will determine whether the suit is an unfair labor practice
Þ © Same rank. Salary, and allowance as with RTC judges case
Jurisdiction of Labor Arbiter
Original & Exclusive (all workers, whether agri or non-agri) TERMINATION DISPUTES
Þ ULP cases Þ Claims for damages arising from Þ If the termination dispute is just in the interpretation or implementation stage =
Þ Termination disputes employer-employee relationship cognizable by labor arbitrator
Þ Money claims regardless of Þ Legality of strikes & lockouts Þ If there is an actual termination = cognizable by the Labor Arbiter
amount if there is a prayer for Þ All other claims arising from employer-
reinstatement employee relationship except claims for 1. Arising from implementation of CBA or Personnel Policies
Þ Money claims > P5k employee compensation, social security, Þ Jurisdiction is vested with voluntary arbitrators
Medicare & maternity benefits Þ Disciplinary rules(punitive) is not the same as personnel polices (non-punitive),
Þ If termination arose out of enforcement of disciplinary rules , jurisdiction = Labor
Þ Not all termination disputes fall under the jurisdiction of the Labor Arbiter Arbiter

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Example: SC said that NLRC has no jurisdiction because the matter involves an intra-corporate
Þ Employee dismissed because of falsifying official documents – labor arbiter has dispute between the stockholder and the corporation.
jurisdiction because termination is due to enforcement of disciplinary rules
2. Money Claims of Employees
2. Involving Corporate Officers Þ Complaint prays for reinstatement regardless of the amount involved= within the
Þ Corporate officers refer to President, VP, Sec, Treas and other officers created by jurisdiction of Labor Arbiter
charter, by-laws or by the BOD Þ Complaint does not pray for reinstatement, determine the amount
Þ Labor arbiter DO NOT have jurisdiction over termination of corporate officers because o Php 5000 or less = DOLE Regional Director
this is not a labor dispute, it falls under jurisdiction of the RTC o Php 5000 up = labor arbiter
Example: Þ Money claim must have causal connection with EE relationship
Þ Exec VP was considered resigned from service for loss of trust and confidence, filed
with Labor Arbiter a complaint for illegal dismissal = labor arbiter has no jurisdiction Examples:
because the position is a corporate officer under the amended by-laws Þ Employee’s total separation package was not released in full because the balance was
Þ Medical directors and hospital administrators relieved from services prompted to file withheld for tax purposes hence employee filed for illegal deduction before the Labor
with the Labor Arbiter for illegal dismissal = SC says Labor arbiter has no jurisdiction Arbiter. Employer questioned the jurisdiction of the Labor Arbiter, SC held that it is
because these are corporate officers under the company by-laws within the jurisdiction of the Labor Arbiter because the issue of deduction for tax
purposes is intertwined with the main issue of whether the benefits have been fully
3. Disputes in Electric Cooperative given to the employee.
Þ Termination disputes of employees under electric cooperative are under the Labor Þ Notarial and legal counsel filed complaint with the Labor Arbiter for unpaid notarial
Arbiters fees against the company. SC held that Labor Arbiter has jurisdiction because the claim
is based on his employment as notarial officer.
MONEY CLAIMS Þ In-house legal officer filed a complaint for unpaid attorney’s fee, SC held that Labor
1. Money claims of Corporate Officers Arbiter has jurisdiction because it arose out of EE relationship
Þ To know jurisdiction, use the reasonable causal connection doctrine
o Money claim involves perquisites of the corporate position = labor arbiter 3. Money claims of Employers
has NO jurisdiction Þ Labor arbiter has jurisdiction if the money claim of employers against employees has
o Money claims pertains to the corporate officer’s compensation or benefits as reasonable causal connection with EE relationship.
an employee = labor arbiter has jurisdiction because of its reasonable causal Example:
connection with employment relations (ex. his compensation as an Þ Company filed complaint against employee for a recovery of a car under a car loan
employee0) police. SC held that this is not a labor dispute
Examples: Þ Company filed complaint against employee for a sum pf money arising from unpaid
Þ ©A CPA designated as an Administrative Manager and member of the BOD who wasn’t loan, SC held that this is a civil controversy, considering it involves a debtor-creditor
given his salary differential and other unpaid benefits and files for a complaint is relations
within the jurisdiction of the Labor Arbiter. This is because the claim pertains to
compensation or benefits as an employee hence it is a labor dispute and not an intra- 4. Money claims of OFW
corporate controversy. It is true that a director of a corporation is not an employee, Þ Labor Arbiters have original and exclusive jurisdiction over claims of migrant workers
but a director may become and employee if so designated, or if he accepts duties that arising from EE relationship, including actual, moral, exemplary and other forms of
make him an employee. damages
Þ ©Company failed to pay the President of the corporation’s compensation and per diem
for attendance in board meetings. He complaint with the labor arbiter but the SC held CLAIMS FOR DAMAGES
that the Labor Arbiter DOES NOT have jurisdiction because the claim pertains to Þ “DAMAGES” in the Labor Code does not necessarily refer to those filed by employees
perquisites of his corporate position and therefore interlinked with his relationship against their employer
with the corporation. o Includes claims / counterclaims filed by employers against employees
Þ President and General Manager who resigned was not given his lasts alary because it provided that it has reasonable causal connection with EE relations
was applied to his unpaid stock subscription, he questioned the validity of the set-off.

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Examples: Þ Parties can enter into compromise not only in controversies involving labor standards
Þ Damages for slanderous remarks by the employer against the employee = NOT but also on labor disputes
COGNIZABLE by the Labor Arbiter Þ Employee cannot waive his right contrary to law, public order, public policy, morals
Þ Damages for malicious prosecution filed by employee against employer = NOT or good customs
COGNIZABLE by the Labor Arbiter o Unwaivable statutory benefits: min wage, OT pay, night shift diff, premium
Þ Complaint for damages arising from negligence of a co-worker = NOT COGNIZABLE by pay, holiday pay, service incentive leave
the labor Arbiter because no reasonable causal connection o Unpaid statutory benefits can be waived because what is being waived is not
Þ Complaint of damages filed by employer for breach of contract of employment falls the right but the unpaid (past) benefits
within the Civil Law, here the breach refers to post employment relations Þ Parties can enter into a compromise even if judgement has already been rendered
Þ Complaint of damages filed by employer for breach of training agreement falls within Þ A compromise agreement is conclusive and binding even if not submitted for judicial
the civil law hence RTC has jurisdiction over the matter approval
o XPN: if the consideration for the compromise was very much less than the
CASES ARISING FROM VIOLATION OF ART. 279 OF THE LABOR CODE amount which the employee was entitled, it may be set aside for being
Þ These are controversies involving validity of strikes and lockouts contrary to law, morals or public policy. In here only the employee and NOT
Þ Labor Arbiters are vested with original and exclusive jurisdiction his counsel can impugn the consideration of the compromise being
unconscionable
WAGE DISTORTION DISPUTES Þ Union can only assist employees in entering a compromise agreement but cannot
Þ Falls only under the jurisdiction of the labor arbiter only when establishment is decide for them
unorganized Þ A lawyer cannot enter into a compromise agreement with the opposing party without
Þ Any dispute shall be settled through the NCMB, and if not resolved within 10 days it a SPA or express consent of the client
shall be referred to the appropriate branch of NLRC Þ If the compromise agreement is violated, the aggrieved party may rescind the
compromise and pursue original claim.
CLAIMS AGAINST INT’L ORGANIZATIONS Þ
Þ Labor Arbiter does not have jurisdiction over disputes between and int’l organization Olaybar vs NLRC
and its employees DOCTRINE: when NLRC rendered its decision, it unknowingly adjudicated a case which is
Þ International agencies enjoy diplomatic immunity hence beyond jurisdiction of PH already closed by a compromised agreement terminated by the parties themselves when
courts they agreed on a settlement. This shows the rule that compromise settlements and
agreements have the effect and conclusiveness of res judicata upon the parties.
PRE-ARBITRATION CONCILIATION/MEDIATION
Jag & Hagger jeans vs NLRC
1. Prerequisite to compulsory arbitration DOCTRINE: Waiver of rights is a personal right which must be exercised personally by the
Þ Dispute must first undergo conciliation or mediation under Single Entry Approach employees themselves. Non signatories in such compromise agreement are not bound by
(SENA) system the amicable settlement, employees who did sig such are not bound by it.
Þ All issues arising from labor and employment shall be subject to mandatory
conciliation mediation 3. Quitclaim
Þ © Pre-arbitration conciliation/mediation is NOT a pre-requisite to voluntary Þ A document whereby a person relinquishes to another a claim to a right or property
arbitration Þ Once an employee executes a quitclaim in favor of the employer, he is hereby estopped
from filing any further claims against the employer
Þ Not all quitclaims are invalid as against public policy
Submission of the dispute to the Lupong Tagapamayapa NOT A PREREQUISITE o If the agreement is voluntarily entered and if it represents a reasonable
Þ PD No. 1508 requiring submission of disputes before the Brgy. Lupong Tagapamayapa settlement, then it is valid
prior the filing with the court or other government officers are not applicable to labor o
cases o If the person making the waiver did so voluntarily with full understanding of
what he was doing
2. Compromise Þ Requisites for a valid quitclaim:
Þ Compromise is a mode of settling labor disputes is encouraged by law o There was no fraud or deceit on the part of the parties
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

o Consideration for the quitclaim was credible and reasonable § If filed by locally employed workers = within 30 calendar days after
o It is not contrary to law, public order, public policy, morals, good customs or the case is submitted for decision
prejudicial to a third person with a right recognized by law § If filed by OFW = within 9- days after filing of complaint
§ Note that prescribed periods are mandatory BUT decisions
COMPULSARY ARBITRATION PROCESS rendered after the prescribed period are still valid. (Labor Arbiter
Þ This does not embrace the whole adjudicatory process will just be subjected to administrative sanctions)
Þ Confined to the proceedings before the Labor Arbiter Þ Proper remedy from an adverse decision of the Labor Arbiter is to appeal to the NLRC
Þ Proceedings before the labor arbiter are non-litigious in nature o Motion for reconsideration is not proper
Þ Procedural due process must still be observed o If order is not appealable such as interlocutory orders, file with the NLRC a
o Right to hearing petition for annulment of order
o Evidence presented must be considered
o Decision must have something to support it REINSTATEMENT
o Supporting evidence must be substantial (NOTE: the Labor Arbiter / NLRC Þ Decisions of the Labor Arbiter ordering reinstatement are immediately executory
cannot require proof higher than substantial evidence) even pending appeal.
o Decision must be rendered based on evidence presented o No need for writ of execution
o Tribunal must act on its own independent consideration o Employers must comply with reinstatement
o Render its decision in a manner that the parties to the proceeding § Physical reinstatement – admitting back to work
Þ Steps § Payroll reinstatement – not physically back to work but employee
o Start with filing of a complaint with the regional Arbitration Branch having would be receiving his salary
jurisdiction over the workplace o Employer alone has the right of choice whether to reinstate physically or in
o Within 2 days from receipt of complaint the Labor Arbiter shall issue the payroll
required summons (valid service of summons is required so that the Labor o A bond is not a substitute for reinstatement. Posting a bond during the
Arbiter will have jurisdiction over the person of the respondents) pendency of the appeal cannot stay the order of reinstatement
o Lawyers should appear before the Labor Arbiter Þ If order of reinstatement was reversed on appeal:
§ If non lawyers will appear, he should be representing himself or o Reinstatement was carried out – employer can put an end to such
representing a union or its members reinstatement
§ If non lawyers appears without written proof that he is authorized § As per College of Immaculate Concepcion vs. NLRC, the Labor
to appear, his statements cannot bind the client Arbiter did not require the employee to refund the salaries he
§ Permission for non-lawyers to represent a party does not entitle receive while on payroll reinstatement. Sa kanya na daw yun.
him to attorney’s fees – wala naman atty-client relationship tsaka o Reinstatement was not carried out because of:
di naman siya atty hello § Employer’s refusal to comply without justifiable reason – employer
o Mandatory conciliation will be scheduled will pay the salary
o If no amicable settlement was reached, parties will now file their respective § Employee’s refusal – employer is not liable to pay
verified position paper § Employee did not vigorously pursue his reinstatement – employer
o Reply may be filed by any party within 10 calendar days from the receipt of is not liable to pay salary because employee is deemed to have
the position paper of the adverse party forfeited his right to reinstatement
o Labor Arbiter will now motu proprio determine whether there is a need for • Test: (1) order of reinstatement was not executed prior
a hearing its reversal on appeal (2) failure to execute was not due
§ Trial type hearing is not required, the LA can decide on the case to employer’s unjustified act or omission
based on the submitted position papers and it may not be § Labor Arbiter did not act on the employee’s motion for issuance of
demanded by the parties writ of execution – employer is still obliged to pay because hindi
o If hearing or clarificatory conference is deemed necessary, the Labor Arbiter nga kailangan ng writ of execution at the first place. Order of
may determine the order of presentation of evidence, examine the parties reinstatement is self-executory.
and ask questions for clarifying points of law or fact involved in the case § Supervening event (ex. position was abolished, closure of
o Decision of cases establishment) – employer is not liable to pay because
reinstatement became impossible
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

§ Corporation was placed under rehabilitation receivership – Þ Not applicable if the appeal questions only the award of damages or
employer is not liable to pay because failure pay reinstatement atty’s fees and if there is no monetary award
salaries was justified by the exigencies of the corporate Þ May be in the form of cash or surety bond
rehabilitation. If natapos na yung rehabilitation, di parin entitled si Þ Real estate bond substantially complies with the requirement (UERM
employee sa reinstatement salaries die to the nature of corporate Memorial Medical Center vs NLRC)
rehabilitation. Þ Surety bond must be issued by a reputable bonding company duly
Þ Reinstatement is a valid exercise of police power accredited by the NLRC
Þ There must be a joint declaration by the employer and the bonding
APPEAL TO THE NLRC company, indemnity agreement and proof of security deposit
Þ Has exclusive appellate jurisdiction over Þ In the computation of appeal bond, moral and exemplary damages are
o Cases decided by the Labor Arbiter excluded
o Cases decided by the DOLE Regional Director concerning recovery of wages, Þ Appeal bond may be reduced by filing a motion to reduce appeal bond
simple money claims and other benefits citing meritorious ground for reduction
Þ Periods: o Substantial monetary award even if it runs into millions is not
o Decision or order of LA – 10 calendar days from receipt of decision a meritorious ground for reduction of appeal bond
o Decisions or order by DOLE RD – 5 calendar days from receipt of decision Þ Appeal bond shall be valid and effective from the date of posting until
Þ Reckoning period is on the date of receipt by the counsel or representative on record the case is finally decided and the award is satisfied.
Þ Period to appeal is non-extendible. Failure to file appeal makes the decision final and
executory by operation of law 4. Proof of service to the adverse party
Þ Frivolous or dilatory appeal – an appeal from a judgement awarding back wages which Þ Appellant should furnish the other party a copy of the memorandum of
the employer deliberately filed without an appeal bond appeal and a certified true copy of the surety bond
o Show insincerity of the employer in perfecting the appeal Þ Failure to furnish is not a fatal defect but a mere formal lapse
o Labor arbiter may impose reasonable penalty
Þ Decisions of the NLRC may be subject of a motion for reconsideration CHAPTER 13 – EXTRAORDINARY REMEDIES
o MR is a requisite for the filing of a special civil action for certiorari
o Only one motion from the same party shall be entertained Þ Available only for orders issue by the LA that are NOT APPEALABLE (ex. interlocutory
Þ Decisions of the NLRC are subject to judicial review by means of special civil action for orders)
certiorari Þ Party must file petition for annulment not later than 10 calendar days
o Must be filed within 60 days from the notice of judgement Þ LA must be impleaded as a public respondent, and adverse party as private
Þ Requisites for the perfection of appeal: respondent
1. Memorandum of appeal Þ Mere filing of the petition DOES NOT STOP the proceedings before the LA
Þ Must have statement of the state when the appellant received the Þ Filing of restraining order or writ of injunction to enjoin the LA is necessary
decision
Þ Grounds for appeal (prima facie evidence of abuse of grave discretion, CHAPTER 14 – INJUNCTION
fraud, coercion, graft and corruption in decision, pure questions of law,
serious errors in findings of fact) Þ Injunction in labor disputes are not favored
Þ Relief prayed for Þ It is only issued in cases of extreme necessity based on legal grounds clearly
Þ Verification of the appellant established
Þ Certificate of non-forum shopping Þ Grounds to issue injunction:
2. Appeal fee o Labor disputes likely to cause a strike or lockout in an industry indispensable
Þ It is an essential requirement to the national interest
Þ Should be paid before the expiration of the reglementary period to o When the necessary to require the performance of a particular act which if
appeal not restrained or performed may cause irreparable damage
3. Appeal bond o There is actual or threatened commission of prohibited or unlawful acts (ex.
Þ Required only when an employer appeals a monetary award strikers obstruct the entrance/ exit of premises)
Þ Must also be posted within the reglementary period
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Kind of labor dispute Who may issue injunction

Labor disputes likely to cause a strike or lockout in an CHAPTER 15 – EXECUTION OF LABOR DECISIONS
Only the SOLE
industry indispensable to the national interest
Ordinary labor disputes or in cases arising from any Immediately executory orders
violation of Art 279 (public official / employee / Þ Reinstatement
Only NLRC
police who shall bring in any individual who seeks to Þ Order of the SOLE assuming jurisdiction over a labor dispute or certifying the same to
replace strikers in entering or leaving the premises) the NLRC for compulsory arbitration
Þ Order directing strikers to return to work
Þ NLRC may only exercise injunctive power ONLY if there is a labor dispute
Þ Injunction is not proper if purpose is to restrain an employer from conducting When do orders become executory?
disciplinary proceedings against an erring employee Þ After the period to appeal – no appeal was perfected
Þ Ordinary courts cannot issue injunction in cases involving a labor dispute Þ If the case has been decided with finality on appeal – if appeal was perfected
Þ Facts needed to be established in injunction:
o Prohibited or unlawful acts have been threatened and will be committed and EXECUTION PROCESS
will be continued unless restrained 1. Motion for issuance of writ of execution
o Substantial and irreparable injury to complainant’s property Þ Losing party does not voluntarily comply with the final and executory judgement
o Greater injury will be inflicted if relief is denied than granted Þ Must file motion before the lapse of 5 years from the date it becomes final
o Complainant has no adequate remedy at law
o Public officers charged with the duty to protect are unable and unwilling to 2. Issuance of writ of execution
furnish the adequate protection Þ Issued only when an entry of judgement has already been made
Procedural requisites for injunction Þ Effective for a period of 5 years from issuance
Þ Injunction on labor disputes cannot be issued ex parte
3. Service of writ of execution
Verified petition must allege acts which if not restrained or performed Þ Sheriff will serve the writ upon the losing party
may cause irreparable damage
Þ May be served from 8AM to 5PM but not on Sat, Sun and holidays

4. Levy and garnishment
Personal notice must be served to all known persons against whom Þ Sheriff will conduct a levy on the properties of the losing party by service a
relief is sought NOTICE OF LEVY
Þ If properties are in the possession of a third party the sheriff shall serve a NOTICE
OF GARNISHMENT
Hearing must be conducted where the testimony of witnesses for both Þ Garnishment or levy shall be done in the following manner (1) cash (2) bank
parties shall be taken deposits (3)surety bond
Þ Personal properties may be levied or garnished , if not enough, sheriff may levy
Temporary restraining order
real properties
Þ A directive to maintain the status quo until the hearing of an application for temporary
injunction. This may be issued ex parte 5. Motion for issuance of break-open order
Þ Conditions Þ This is a remedy to be filed if the losing party refuses or prohibits the sheriff from
o Petition should allege that substantial and irreparable injury to petitioner’s entering the place where the property subject for execution is located or kept
property will be unavoidable
o Present testimony under oath or affidavits to prove such irreparable 6. Motion to quash
o Cash bond in the amount of no less than P50K or higher as determined by Þ When to file motion to quash?
NLRC o Writ was improvidently used
Þ Writ of preliminary injunction or TRO becomes effective ONLY upon posting of the o Writ was issued against the wrong party
required CASH bond o Judgement debt has been paid
Þ Has a non-extendible life of 20 days o Writ was issued without authority
ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

o Controversy was never submitted to the judgement of the court Þ The winning party can be purchaser in the execution sale – no need to pay the amount
o Writ varies or tends to vary the tenor of judgement of bid if it does not exceed the amount of judgement
o Judgement is not clear enough that there remains room for Þ A sheriff CANNOT be a buyer of an execution sale
interpretation Þ Proceeds of the sale shall be deposited by the Sheriff to the cashier of NLRC
o Writ of execution was issued before the judgement has become final and
executory What if the property levied belongs to a third party?
o Supervening events have rendered execution unjust, inequitable or Þ Remedy for the third party is to file a 3rd party claim with Labor Arbiter
impossible Þ Should be filed within 5 days from the last day of posting
§ Example: transfer of business ownership, business reverses, Þ Affidavit should state supporting evidence of ownership and should post cash deposit
abolition of position making reinstatement impossible, of P20K if the claim is for a real property
closure of business, incapacity of employee, attainment of Þ Filing of a 3rd party claim automatically suspends the execution proceedings
retirement age, conviction in criminal case
Þ Mere filing of motion to quash WILL NOT STAY the execution proceedings What if the buyer refuses to pay the bid price?
Þ Motion to quash shall be resolved by the Labor Arbiter within 10 working days Þ Sheriff may again sell the property to the highest bidder
from submission Þ Labor Arbiter may issue writ of execution and punish for contempt if he disobeys the
What are supervening events that will forestall the running of back wages? order
1. Death 4. Permanent closure of establishment How to convey sold property?
2. Physical / mental incapacity 5. Temporary closure of establishment Personal property Deliver the property to the purchaser together with the
3. Attainment of retirement age 6. Confinement in prison CERTIFICATE OF SALE upon payment of price

Real property Issue certificate of sale containing description, price for each
REMEDY FOR DENIED MOTION TO QUASH
distinct lot, and the whole price paid by him
Þ Order of denial is NOT APPEALABLE
Þ Certificate of sale is not an absolute transfer of property
Þ File petition for annulment of order with NLRC Þ Transfer is not perfected until the execution and
Þ Mere filing of petition does not stop the proceedings, you need to file TRO / Injunction delivery of the DEED OF CONVEYANCE
to enjoin the LA or any person from continuing with the execution
Þ Deed of conveyance is issued only if no redemption is
o No TRO/injunction within 15 days = money collected shall be released and
made within 12 months after the sale
property levied shall be sold by public auction


REDEMPTION
EXECUTION SALE
Þ Paying back or satisfying a party’s indebtedness rather than buying back or
Þ Notice of sale shall be posted in 3 public places (note: dapat 3 public places, hindi 3
repurchasing
parts of a building kasi one place lang yon pag ganon)
Þ It may be redeemed by the losing party, successor in interest or by a redemptioner
o Personal properties = municipality / city where sale is to take place
o A redemptioner is a creditor having lien by attachment, judgment or
o Real properties = municipality / city where property is located
mortgage on the property sold subsequent to the judgement under which
o If assessed value is >P50K notice of sale must be posted once a week for 2
the property was sold
weeks in a newspaper of general circulation
Þ Property may be redeemed any time within 12 months after the date of registration
Þ Duration
of the sale
o Perishable personal properties = for such period as the sheriff may deem
Þ A property redeemed by a redemptioner may again be redeemed by another
reasonable
redemptioner within 60 days after the last redemption
o Non-perishable personal property = 5-10 calendar days
o Real properties = 20 calendar days Þ Written notice of any redemption must be given to the sheriff who made the sale and
a duplicate filed with the register of deeds of the province or city
Þ Requirements concerning the posting of notice of sale must be strictly followed
otherwise it will invalidate the notice and render the sale at least voidable Þ Certificate of redemption shall be issued, filed and recorded with the Registry of Deeds

Þ A sheriff who sells a property without notice of sale shall be held liable for damages
How much to be paid in redemption?
Þ Execution sale shall be done between 9AM -5PM at a public auction, to the highest
Þ Amount of purchase + interest of 1% per month up to the time of redemption
bidder
Þ Assessment or taxes + interest at a rate of 1% per month
Þ Real property consisting of several lots shall be sold separately

ATTY. PAULINO UNGOS JR. [LABOR REVIEW] MCLMAGHIRANG
©- memorize by heart / part of his previous exams

Petition for revival of judgement ACTION PRESCRIPTIVE PERIOD IMPORTANT NOTES

Þ after the lapse of 5 years the judgement can no longer be enforced by motion Recruitment violations 3 years from the time the cause of Involves land-based
Þ you need to file an independent action for the revival of judgement involving overseas action accrued Filipino workers and
workers or seafarers seafarers
What are the liabilities of a sheriff? Disciplinary action 3 years from the time the cause of
Þ A sheriff may be held administratively or be held liable for damages if he: cases against Overseas action accrued
o Enforced execution on property belonging to a third party Principals or workers
o Selling property of the losing party w/o notice Criminal offenses GR: 3 years Only those violations
o Unduly releasing the property attached under the Labor Code XPN: 1 year if ULP which the Labor Code
o Enforcing execution on properties which are exempt from execution declares to be unlawful
o Negligence in carrying out execution or penal in nature are
o Failure to submit the return of a writ considered as criminal
o Failure to submit sheriff’s report offenses

CHAPTER 16 – PRESCRIPTION *illegal dismissal is not
an offense within the
Þ Unfair labor practices prescribe ONE YEAR FROM ACCRUAL of such unfair labor contemplation of the
practice Labor Code
Þ For the criminal aspect of ULP, it will begin to run only when a final judgement is
rendered in the administrative proceeding LACHES
Þ Failure or neglect for an unreasonable and unexplained length of time to do that which
ACTION PRESCRIPTIVE PERIOD IMPORTANT NOTES by exercising due diligence could or should have been done earlier
Action for 4 years reckoned from the date the Filing of a criminal case Þ Negligence or omission to assert a right within a reasonable time
reinstatement employee was illegally dismissed does not interrupt the Þ Elements:
running of the o Conduct on the part of the defendant or one under whom he claims, giving
prescriptive period rise to the situation of which complaint is made and for the complainant
Money claims arising 3 years from the time the cause of Covers all money seeks remedy
from employer- action accrued claims from o Delay in asserting the complainant’s right
employee relations employer=employee o Lack of knowledge or notice on the part of defendant that the complaint
relationship would assert the right on which he bases this suit
Action for accounting 3 years from the date of o Injury or prejudice to the defendant in the event relief is accorded
of union funds submission of the annual financial CRIMINAL LIABILITY OF OFFICERS OF JURIDICAL ENTITIES
report to DOLE and from the date Þ Only those who committed the unlawful act, authorized the commission, ratified or
the same should have been conspired in the commission may be held criminally liable
submitted as required by law,
whichever comes first
Claims from 3 years from the time the cause of Reckoned from the
employees action accrued time the employee lost
compensation his earning capacity
Criminal action for Local employment – 3 years
illegal recruitment
OFW simple illegal recruitment – 5
years

OFW illegal recruitment involving
economic sabotage – 20 years