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5sn 8e 8 @ollege f Asb U , - , 4 j
2011CENTRALIZEDAROPERATIONS
CHAPTER . GENERALPROVISIONS
ART.1: NAMEOFTHE DECREE
laOor CoAe of the Philippines (PD 442' as
amended)
Labcr1 Exertion by human beings of physical or
mental efforts, or both' towards the
productionof goodsand seMces2. Also means that sec{or or group In a-.
society,witich derives ts livelihood.hiefly
from rendition of worK or serylces .lnexchange for compensatio - - .Ynd"rmanagerial irection Mendoza, 001 '
ART. 2: DATEOF EFFECTIVITY
The Labor Code took effect on November 1'
1974 (six months after its promulgationon
May1, 1974).
Labor Legislation - consists of statutes'
iegutationJ and jurisprudencegoverning the
reiations between capital and labor, by
oroviding for certain employment standards
ind a legal framework for negotlailng'
aOjustinganil' administering hose standards
an-d ther ncidentsof employment'
Note: Labor standards laws and labor
relations laws are NOT mutually exclusive;
they comPlementeach other'
Labor Law - The law governinghe rightsand
Juties of employersand employees, frst withrespect to
'theterms and conditions of
em-ptoyment, nd second' with respect.lo the
labbr'
disputes arising from collective
bargaining respecting .such terms ancl
conditions.
Itsmaior divisiqts in(udQ,' , . 'r " '
1. The Law on LaborStandards
2. The Law on LaborRelations
Note: Although he distinctionbeWeen labor
J"naaros ant labor relations is useful for
"t"O"ti"purposes,hey in realityoverlap'For
instance, he grievancemachinery s a laDor
reiations matter Outvery often the subject of
the complaint is labor standards sucn as
unpaiO vertimework or a disciplinary ction'
(Azucena,2007) 4'
The Law on Labor Standards - Deals with
the minimumstandardsas to wages' hours of
work and other terms dnd conditions ofempioymenthat employersmustprovide heir
emPloYees.
The Law on Labor Relations - Defines the
slatus, rights and duties as well as the
iniiit,riionir mechanisms that gover the
inOiviOuaf nd' collec-tiventeractionsbetween
-' emPloYers, emPtoYees and their
representatives.
Note: Social legislation s broader in scope
inan tauor legisiationbecauseall laborlaws
"i" "*ilr169islationsbut not all social
legislbtions re labor aws'
EXECUTIVECOMMITIEE:EZEKIELosHUA VILLENAoverall chairperson,MINISTERMcxsES.DU chairperson or. academ'rcs'DJoANtvlEJoMAREJUNASA
chairperson or hotet operations,MARTE ICAELA rA ANA ;;.h;t;;"'fot,t',fgT: tutruretu MAVERICKUMACDERke'
chairpersonor secretaria JAcXti 1OUUt tUC vice-cnairpersoii- t"I*"' bteHR lfeH fURZOt'tvice'chairpersonor edp' JASSEN
nnip-riGi"i.*"tt"irperson
for' logistics
SUBJECTCOTUMITIEE
HAROLD HRISflAN ALLEDOubjectchak,AYLAHERAZADEALENDABssistant ubject(hair' PINKYVELOSOdp,NEOVALERIOabor
slndards,vrRRruesre*nr*oi6oir?l.ui, ,.r"ii""', ooHnn nmcrs YLADEocialesbhtion
MEMBERS:ii.;r-it'ii" oroa,Kado Diatogo va"*: Gyi.li,-lle toleen Llmblno,. KarlgnPambid' Josecarlos Torres'RamaYanaSaidamen'Josl
AngetoDaviti,FomilleDeannelagasca,Raynanlarosa l.' -'r :'
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iTi':li:,,,4:tlllx:fflgTlr"Txi^. undtr Lahr Standards (TReSH)
'. K'gnr ro secuflty oflenurez Rtght to Egcerve a tiv ng wageJ. < rg1 10 Share r l the Funs or
proouc0on, and4. Righr to work under t l umare
@ndttons
B Under Labor Rel.tions {OCEp)1 Rtght to grganrze themset;esz. Rtght to gomucl co,lectve bargaintng
_ot negotidion with management:
. r. Rtght to Engage il peacefut @Dcened
_ac[vtr6 including $rke, and
4. Rtght tO padjctpateIn policy ard
sec6ton,making ffocses
Constitutional MahdatesL A t1 .X l i l ,Sec .3
The State shall effordtutl protedion rolaw, tocal and oversees, organiz& and
:f9rSaDrtrand pfomote fuil emdoyment
.tro-eqLat;tyoi enptoyment opponjn,Lies
It shatl guarantee il.e nghts of ail workeEro.sdlorganizdion, colledtve bdrg;,nhgano negotiations and peaceful co;ededaqtvttes, including the rrgnt to stike Inaeoroance witn law They shail beemtitd to securiiy of tenuie, humane
:?lotr'9n:.ol wd end a r.ving mqe.
rney snajtal$ padicipate in F]tq a-ndoectston_m€klng proce$ affed;ng thetr
ngnF and benerits as may be provided by
Th€ Sla tr snd l ororo le tne p r inc rp ,e o ls ra .eo resoons b i t i r / oeMepr worke rs a remotoyers dnd lhe D,.ferenrial use otvotunlary -odes .1
sefl, ng dtrputFs,Inc jud ,ng Lonc , t i do^ dno sna . t eT lo .cernetr
ru tL8 ' conprar ce I l e rewth to tos te rInoustflat peace
The State shall regutate the relaronsDeMee. wo kers and e-p,oyetsrecognzr.g the rgnt o, tabor to its .u9shafe in ihe fruits of production and thenght of enterprises to fea$nable returnsor Inve$ments, and to expansion arogroMh
2. Art. il, Sec. IThe Sta te sna t p ,o ro te a jus l Jnd
oynamtc soc ia l o rde , tha l M l ,e rcu re lneprospeittv ard ndeFnde-ce of tne .aton
:lo ll:"h" peoo,e ici povedv rhrough
pot ctes thai prov,oe adequale socrals.sve, ororde fLI enployren]. a risrngsrandard ot l j v i rg ard .np roveo
qLal i lv o lrrc tor at l
3 . A r t . l , Sec .18
The Stde d1-as tabo r .s a pnmary soda leco lom c to .ce t s fa , ' o ro ted tne nqnrsor workers :nd promote therr welfare
4 Art ilt. Sec. IThe . r .gn l o i tFe reopte , i nc ,ud tng thcse
e-mployed i lhe oublc ard privae iectoreIO torf ultons assoctalions, o. societc5ror purposes not corFary to taw shalt notoe abndgd
5. Art.|il, sec.18(2)
No hvolunlary seryhLde In any form shd|ext$ excepl as : puntshmert for a crjnrewn-ereot.be pady shalt have been duty
6. Art. Xil, Sec. 12
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5 r Behs Co[eq. of llb
201 1 CENTRALIZEDBAR OPERATIONS
Rd# kws'
Ciil hde
a Art. 1700. the rclation beMen capnal
and labor are not merely @nt€dual.
They are so imprFsd with PublicinterEt that labor conhas mus yield
to the common god. Therefole, such
contracts are ilbjed to the special
lare on labol unions, collective
hrgaining, ddkes and lockouts
cl6ed shop, wages, wolking
conditions, hours of labor and similar
subjeds.
b M. 1701. Neither capnal nor labor
shall ad opprsively againS the
oiher, o|mpak the inter6t ot
@nwnience of the public
c. Art. fi02:1^ €se of doubt, all labol
legrsrailore a.d all labor @nirads
shall te con*rud in favor of thesafety and decent livng fot lhe
lamrer.
d Art. 1703. No contad which
pradicallY amounts to involuntary
srvitude, under any guise
whatsoever, shall be valid-
2 RevisedPenalCode
Art.2N. Famation, naintenance and
prohibitiil of cmbinatiffi of capital d
labor through idence or threats. - fhe
penalty of areSo mayo. and a fine not
exceeding.3oo pees shall be impo*d
upon any pereon who, for the pulP6e oi
orgarizing, maintarnrng or prevening
coalitions of capital or labor, stiike d
labotere or lock-out of empoye6, sha
employ violence or threab in such a
degree as to @mpd or for€ the labre6
or employers in the lree and legal exercise
of thef indu*ry or wo*, ifthe ad shall not
conditde a hore serious ofiense in
acmrdance wih the prcMsions of this
Code.
3 Specia/Laws
a. SSS Law
b. GSls Law
e\ Ndflohal HeAlh'tNrandAct:F$' ,1
d. Pdehit L€ve Ad
. e. Rdirement Pay Law
I Home Mutual Development Fund Lil
g Anl-Sexual Harassmeil Ac l
h. Anilchild hbr Ad
i . 1 3 ' M o n t h P a y L i lj. Migrant Workers and Overeeas
FillpinosAdol 1995 (R-A No. 8042)
k. Comprehensive Agrarian Reform Li l
L Magna Cada lor Public Health
WorkeE -
m. Umfred Podability Lil{RA 7699)
S@ial Just@ as the Aim: Social justice is
nefrher communism, nor d6porsm, nor
domism nor anarchy, but the huhaniaiion d
law and the equaliation of social and
economic forc6 by the State so that judice rn
its ratonal and obiectively secular conceFlon
mav d least be apploximatd Social justce
me;m the PROMOTION OF ilE WELFARE
of al, peope, tne adoptlon by the governmenl
of feasures €'dlaled to ensure economK
$abiltY ol all the comPoreil elements of lhe
society through the malnlenance or prooer
economrc ano soc ia l eqJ ' l i bnJr In hE
intetrelatons of the tembG oI the
@mmunitv consttutionaly thtough he
adoption of measures legally justifiable or
enr*onsfdionally, through the exerclse of
pwere undeiylng the existenc ol. a
oovernmeils, on lh; tme-honord princlple d
aalus papuli est suptffia le, lcatatangv
Wlliams. No.47no, D@b*2' 1940)
Police Power as the basis: n is the power or
the Governmeil to enad law wthln
@nditutional linits, to ptomde the order,_sfew.
health, morals and general welfare of
socleiy (People v Vqa, No 45748 AM| 5
1939)
Welfare Legislation - Provo6 'or lhe
minimum eco-nonic security of the worKer and
his femilv in case of loss of earnings due to
death, oad age, disability, dismissal injury or
It rs distnguisned from social legislaton ir
that welhre statdes are prdicated upon
employeGemployee relatiorehip; Mereas he
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LABOR A.W
LABOR TANDARDS
ART.3: DECLARATION F BAStc PoLIcY
The Stateshall: APERA)1. Afford protectiono labor,2. Promote ull employment;3. lnsure equal work opportunities
regardless f sex,ageor creed;4. legulate the relationsbetween workers
and employers; nd5. Assurethe rightof workers o: (JSSC)
a. iust and humaneconditions f woik:b. gelf-organization;
. c. gecurityof tenure;and: d. gollectivebargaining.
. lt is a sharedresponsibility imedat aconstitutional balance betweenprotection to labor and preventoppression o capital
. The protectionof the rightsof workerscannot justify disregard of relevantfacts in the constructionof the text andapplicable ules n order o arriveat a
disposition in favor an employee(Philippine Airlines, lnc. vs. NLRC.201 SCRA687)
ART. 4: CONSTRUCTION N FAVOR oFLABORr Construed n favorof labor F THERE S A
DOUBTas to the meaningof tne legalandcontractual provision. lf the provision isclear and unambiguous,t mustbe appliedin accordance with its express i6rms(Meratcov. NLRC,GR No. T8T63,Juty 12,
1eeq.o HOWEVER,not all labor disputesshouldbe resolvedin favor of labor.The law aGo
,recognizes hat managementhas rightswhich are also entifled to respect
-and
enforcementn the interestof faii plav (Sf.Luke's Medical Center Employee'i n3s'ocv. NLRC,GR No. t62OS3,March 7, 2007).
. - f ) , . { . i - ' , i t . , ' ' i r , : . , . : r ' , 2 , , 1 " ' ; . . . . . . . . 1 . .
Reasons for Affording Greaterprotectionro Empbyees1. There s greater upply
handemand orlabor;2. In accordanceith he doctrinehat hose
whohave ess n lifeshould ive more nlaw and
3. Theneed or employmenty aborcomesrom vltal,andevendesperateecessity
(Sanchez v. Harry Lyons Constructiontnc.,GR No.L-2779,Oclober 8,19ffi).
Extent of Protection to Labor: ., o anemployee who is abused either by theemployer r by the union eadership i theirrespective epresentatives.
ManagementRightsr Under the, doctrine of management
prerogative, every employer has theinherent ight o regulate,accdtding o hisown discretionand judgment, all aspectsof employment, including hiring, work
assignments,working methods, he time,place and manner of work, worksupervision,ransferof employees, ay_offof workers,and discipline,dismissal,andrecall of employees (Rurat Bank ofCantilan v. Julve, GR No. 169750.February27, 2N7).
The employerhas he right o: (CPSTR)1. Cbnductbusiness;2. lrescribe rules;.3. geled and hireemployees;
4. fransfer or dischargeemployees; nd5. Seturnof investment nd expansionof
business.,
o Managementprerogatives,however, aresubject o limitationsprovidedby (1) law,(2t contract or collective baigainingagreementsand (3) general principlesoffair play and justice (Mendoza v. RuralBank of Lucban, GR No. l\g21, Juty 7,
. 2004).
ART.5: RULESAND REGULATIONSr The rules and regulations ssued by the
R
#{*a_:fiep"e}glps, &
i"
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$en #e s @ollegeAetn2011CENTRALIZEDAROPERATIONS
powers n the enforcement hereot (pASEl v.Drilon, GR No. 81958,June 30, 1988).
However,a rule or regulationpromulgatedbyan administrative ody in excess of its rule_
'naking authority is void. An administrativenterpretation which takes awav benefitsgranted in the lary is uttra viies (CBTCEmployees lJnion v. C/ave, GR No. L-495g2.January 7, 1986).
ART.6: APPLICABIL|TY
General Rule: The Code applies to all*orkers, whether agricultural or non_
agricultural, including employees in a3overnment corporation incorporated under::e corporation code (Seeu,d.S_-e_4$siounderAtt.244).
Exceptions: (cC-FICL)'. Governmentemployees;2 Employees of government Corpoiati6ns
createdby specialor originalchartdr Jucov. NLRC, GR No. 98107, August 18,1997);
3 Foreign. governments(JUSMAG_Philippines v. NLRC, GR.A/o. 10eB1S.
December15, 1994);1 lnternational Agencies {Lasco v.
UNRFNRE, GR Nos. 1OgOgU1Og17T.February 23, 1995). employees ofrntergovernmental or internationalorganizations SEAFDEC-AeD y. NLRC.GR No. 867V3,February 14, 1992);
: Qorporate officerc / Intra-corooratedisputeswhich fall under pD 902-4 andnow fall under the jurisdiction of the
RegularCourts pursuant o the SecuritiesRegulation Code (Nacpil v. lBC, GR No.144767,March21, 2O02);and
: Local water districts (Tanjay Water Districtv. Gabaton, GR Nos. 63742 and W3OO,17 Aprit 1989) except where NLRCjurisdiction is invoked (Zamboanga City,Water Distict v. Buat, GR No. 1143gg,May 27, 1994).
Agriculturalor Farnr.w6rker3 onb employed- an agricufturalor farm entdrprise ind=slgned to perform asks which are direcflv'e ated to the agricultural activities of th6
:-Dloyer, such as cultivation nd tillageof ther: d.airying, rowing and harvestingof any3;riculturaland horticultural ommodities the-: sjng of
.livestock r poultry,and a4y activity:edormed by a farmer as an incident o or in:;: junctionwith such armingoperations.-^ere
may be, in one employer, both3,:ricultural s well as industrialworkers,
lrlole: The Labor Code applieswith or withoutemployment relationship between thedisputants,depending on the kind of issue
inyolved. The presence or absence ofemployer-employee elationship is itself alabor law question (Azucena,2O07).
CHAPTER11. MANCIPATIONOF TENANTS
{P f, 27 As Amended By R.A. 6657,Cu'nprehensive Agrarian Reform Law A.K.AG€rl.; 't"Ra 9700 Comprehensive Agrarianfufi;,i|?? Program Ertension with Reforms
{Caq;er) Extended Carl with SomeAn:*ndments
*'
1 ,trrf ll, Sec.21
lf'e State shall promote comprehensiver:;'aldevelopment nd agrarian eform.
2 F.,' Xlll, Sec.4r:,e State shall, by law, undeitake anagrarian reform program founded on the
.' right of farmers and regular farmworkers,who are landless, to own direc-tly or
. cotlectively ne lands they till or, in thecase of other farmworkers, to receive aj';st share of the fruits thereof. To this end,the State shall encourageand undertake
the ust distribution f all agriculturalands,s,.ibject o sLtchprioritiesand reasonabler::iention limits as the Congress mayp.,:scribe, aking into account ecological,cevelopqrental,or equity considerations,r:rd subject to the paymgnt of just{:.r}mpensation.n determining retentionlimits, the State shall respect the rights ofsmall landowners.The State shall furtherprcvide incentives for voluntary land-snaring.
No.te: Share tenancy has been abolishedbv R.A. 3844, as amended by R.A. 6389,f*," beingcontrary o public policy,placingin its stead a leasehold system. lt markedthe movement towards the eventualcwn UnderArt.E, the
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LABORLAW
LABOR TANDARDS
P.O.27v. CARL (R.A.665f) & CARPER
Privateagriculturallands primarilydevoted o rbeand cornundera s)tstem ofsharecrop orlease-tenanry,whetherclassified aslanded estateor not
privateagriculturallands includingother lands ofthe publicdomainsuitable foragricufture(SeediscusslonunderCARPER for
exclusrbns).
Landownermay retain anarea not morethan 7hectares ifsuchlandowner iscultivatingucharea or willnow cultivate t.
In no caseshall theretention y thelandownerexceed 5hectares.3 hectaresmaybe awarded oeaci child ofthe landowner,if he is (1) atleast 15 years
of age;and(2)aclually tillingthe land ordirectlymanaging thefarm.UnderCARPER,Provircial, cityand municipalgovemmentunits acquiringprivate
agriculturallands byexpropriationor othermodesof aiquisitionto be'used oracfual, directand exclusivepqblb...-.,'pUftGes''ttrattnot be subjectto the five (5)-hectare
retentionimit
Equivalento 21/2 times theaverageharvest of 3normal cropyearsimmediatelypreceding thepromulgationofP.D.27.
LandBankof thePhilippines(LBP) shall
compensatethe landownerin srrch mountas may beagreed uponby thelandowner ndthe DAR andl$P or as maybe finallydeterminedbythe court asjust
compensationforthe and.No tide to theland ownedbytenant-farmersunder P.D. 27shall beactually ssuedto a tenant-farmer unlessand until thetenant-farmerhas becomea
full-fledgedmember of a ulvrecognizedfarmefscooperatMe.Title o the andis nottansferableexcert byhereditarysuccession orto the
GovemmentnaccordancewithP.D.27.
Landsacqr,dredbybenefrciariesunder CARLmay not besold,transferred orconveyedor aperiod of 10
years excertthroughhereditarysuccession orwhen sold,transferred orconveyed totheGovemment,or to the LBP,or to. otherqualifiedbeneficiaies
for a periodof10years.
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San SeUu@ollcge fLcb2011CENTRALIZEDAROPERATIONS
ART. 12: POLICY"OF THE STATE (Proa-FaC-ReSl)
1. To Promote and maintain a state of fullemployment hrough improvedmanpowertraining,allocation nd utilization;
2. To >ect every citizen by securing forhim the best possible erms and conditionof employment;
3. To Facilitate a free choice of availableemploymentby persons seekingwork in
conformitywith the national nterest;4. To Facilitateand regulate he movement
of workers in conformityWith th'e'nationalinterest;
5. To Regulate the employment of aliens,including the establishment of aregistration nd/orpermitsystem,
6. To Strengthen the network of publicemployment offices and rationalize theparticipation of the private sector in therecruitment and placement of workers,locally
and overseas to serve nationaldevelopment bjectives; nd7. To lnsure careful selection of Filipino
workers or overseasemployment n orderto protect the good name of thePhil ippinesbroad.
TITLEONE:RECRUITMENT NDPLACEMENTOF WORKERS
CHAPTER . GENERALPROVISIONS
ART.13:DEFINITIONS
Worker - any member of the labor force,whetheremployed r unemployed.
Recruitment and Plrcement - any act of(CETCHUP) canvassing, enli$ing,
lransporting, gontracting, hiring, gtilizing orprocuring workers, and includes (CRAP)gontract ,services, gefeJrals,.gdvprtising . o.rpromising for bmployment, ocally'or abroad,whether for profit or not; Provided, that any
person or entity which, in any nlanner, offersor promises for a fee employment to two ormore persons shall be deemed engaged inrecruitment nd placement.
Note: The numberof personsdealt with is notan essential ingredient of the act ofrecruitment and placement of workers. Theproviso merely creates a presumgion (Peoplev. Panis,GR No. L-5ffi74-77, July 11, 1986).
Elements of engaging in recruitment and
placement activities:
1. The complainanthad a distinct mpressionthat the accused had the power to send
complainant broad or work, and
2. The complainantwas convinced to part
with his money n order o be so employed
(People v. Goce, GR No.113161'August
29, 1995).
Private Fee Charging Employment Agency- any person or entity.. ngaged_
n the
recruitment nd placementof workers or a fee
which is charged, directly or indirectly, rom
the workersor emploYers r both.License - a document issued by the DOLE
authorizing a person or entity to. operate a
privateemploYment gency.
Private Recruitment Entlty - any person or.
associationengaged in the recruitment and
placement of workers, locally or overseas'
withoutcharging,directlyor indirectly,any fee
from heworKersor emPloYers.
Authority-
documentissued by DOLE
authorizinga person or association o engage
in recruitmentand placement activities as a
private ocru tmententitY.
Seaman - any person employed in a vessel
engaged n maritimenavigation.
Overseas Employment - employment of a
worker outside the Philippinescovered by a
valid contract. (POEA Rules and Regulations'Goveming
the Recruitment and Employment
of Land'Based Overseas Workers, Feb. 42002)
OverseasFilipino Worker- refers o a person
who is to be engaged, s engagedor hasbeen
engaged n a remuneratedactivity in a state.of*hich ne or she*iffiME&EMt on' board a
OI
Emigr
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LABORLAW
LABOR TANDARDS
an immigrant isa or resident errnitor itsequivalentn hecountry fdestination.
ART.14:EMPLOYMENTROMOT|ONTo pursue its responsibility o promoteemployment pportunities,he DOLEcarriesout programs for local and overseasemployment.
Allocation of manpower resources isassigned o the:1. Eureauof Local EmploymentBLEFfor
localemployment2. PhilippineOverseasand Employment
Administration pOEA) _for overseasemployment)
. . . a . : : : . . : : , : . . ,.
. Note: RA tiT1g requires the establishment ofPublicEmployment eMce Office pESO) ncapital towns, cities anrte{hspstrategicareas
ART. 16: PRIVATERECRUITMENT
General Rule: No person or entitv shall, engage i.n he recruitmentand placementof
workers, ocallyand overseas.
lxcgptions:(p'-SpoC-MON)
1. lublic employment ffices:2. lrivate recruitmententities:
9 flrivate employnnentgencies;4. Shipping or manning agents or
representatives;5. POEA;6. Qonstruction contractors if authorized by
the DOLE and the Construction ndustryAuthority;
7. Members of the diplomatic corps (but
^ Il"S mustatsogo thiough POEA):8. Qther persons or entities
as may be^ authorizedby the DOLE Secretary;anO9. lame hirees.
ART.17: PoEA
The POEA has taken over he functionsof the
9l:p::" Emptoymento'everopmeni o;rd(OEDB).andationatseamen'gdarONSBI. ,
Prin-cipal unc{ions FpD)1. Eormulation, implementation, .
andmonitoringof overseas
employmentofFilipino orkers;2. lrotection of their rights to fair and^ equitablemploymentractices;nd3. Deployment f Filipinoworkers hrough
government_to€ovemmenthiring.
l9g_gl.tow Functircns (Rqubtic Act No.gr22)
ThePOEA halt:RF|1S) :
8
1. Regulateprivatesectorparticipationn therecruitmentand overseas placement of-workers through its licensing and
registrationsystem;2. lormulate and implement, n coordinationwith appropriateentities concerned,whennecessary, a system for promoting andmonitoring he overseas employment ofFilipinoworkers taking into consideration
. their welfareand the domesticmanpowerrequirements;
3. lnform migrant workers not only of theirrightsas workersbut alsoof thbir rightsashuman beings;
4. lnstruct and guide the workers how to
assert their rights and provide theavailable mechanisrn o redress violationof their rights;
5. In the recruitment and placement of. workers to Service the requirements e: .
trained and competent Filipino workers offoreign governments and theirinstrumentalities, and such otheremployers as public interest may require,deployonly o countries: BOG)a. where the Phil ippineshas concluded
pilateral labor agreements or
arrangements;b. QbseMng and/or complyingwith theinternational aws and standards formigrantworkers;
c. Guaranteeingo protect the rights ofFilipinomigrantworkers.
Adjudicatory Functions {AD)1. Administrativecases nvolvingviolationsof. licensing rules .and regulations and
registration of recruitment andemployment genciesor entities;and
2. Disciplinaryactioncases and other specialcases which are administrative incharacter, nvirlvingemployers,principals,
illpino migrant
i..t
8012)1 .
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San #ets €ollegeof 1. b2011CENTRALIZEDAROPERATIONS
3. Gunrunning or pos.session of deadlyweapons;
4. landalism or destroying company
property;5. Violationof the laws and sacred practicesof the host countryand unjustifiedbreachof employment ontract;
6. Embezzlement f funds of the companyorfellow worker entrusted for delivery torelativesn he phil ippines;
7. Creating rouble at the worksite or in thevessel,
8. Qambling;9. lnitiating or joining a strike or work
stoppage where the laws of the hostcountryprohibit trikesor similaractions:10. Commission of Eelony punishable
'by,*-
Philippine aws or by the host countr ;11. Theftor robbery;12. prunkenness;13. Drug ,ddictionor possession r trafficking
of prohihritedrtgs; and14. Qesertion r abandonment.
Jurisdiction Transferred to the LaborArbiters
of the National Labor RelationsCommission (NLRC) Sec.10, R.A. gO42). Claims arising out of an employer_
employeerelationshipor by virtue of anylaw or contract nvolvi,ngFilipinoworkersfor overseasdeployment ncludingclaimsfor. actual, moral, exemplary and otherformsof damages.
. Venue: Money claims or claims fordamages .should be flled before theRegional Arbitrationbranch of the NLRCwhere
the complainant esides or wherethe principal office of therespondenVemployers situated, at theoption of the complainant (2005 NLRCRulesof Procedure).
Compromise Agreementr Sec. 10, R.A. ffi42 allows resolution by
compromise f cases iledwith the NLRC.. Any compromise/amicable etflement or
voluntary aggeement on monev claimsinclusive ,of
damages flnderithis.rseaionshall be paid within thirty (30) days fromapproval of the setflement by theappropriateauthority. (Secfrbn'1A of RA8042 as amendedby RA 1m22)
Ruleon PrematureTermination of Contract1. lf terminatedon groundsother than those
that are lawfuland valid before he agreedtermination ate, he employerwill pai theworkers their salariesconespondin t6 tneunexpired portion
of the emplovmentcontract (Vinta Maritime Co. v. ruinb. OnNo. 113911,January'23, 199e.
2. lf the date of employment terminationoccurredon or after July 15, 1995, he lawto apply is R. A. 8M2 Under Sec. 70, a
worker dismissed from overseasemployment without just, valid orauthorized cause is entitled to fullreimbursementof his placement ee Wthinterestal 12o/o erannum.
Note: The clause "or for three months foreveryyearof he unexpirederm,whicheversless" in the 5- oar. of Sec. 10 of RA No. 8042is declared unconstitutionaf'Oy tne SC forviolating Sec. 1, Att. lll of the Constitution,
Sec. 18, Art. ll and Sec. 3, Art. Xlll, whichaccordall membersof the laborsector,without
:. ',,.:"distinction s to place of deployment, fullprotectionof their rights and welfare. (Serrano
. v. Gallant Maritime Services lnc. and MarlowNavigation Co. lnc., GR No. 167614 , March24,2009)
However,RA 1@22 amendingRA 8O42whichtook effect on. May 9, 2O1O, e-enacted hesaftie provision which was declared
unconstitutional y the Court in the Seranocase.
Due Process Required to TerminateEmploymqpt. Procqdural due p;ocess requires that a
seaman must be given1. Written notice of the charges against
him and2. Formal investigation where he can
defend himselfpersonally r througha
representative before .he can bedismissed and disembarked from thevessel.
. The employer is bound to furnibh-himtwo notices:1. The writtenchargeand2, The writtennoticeof dismissal(in ase
not a
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LABOR AWLABOR TANDARDS
entifled o recover s Invalid MR yardCrewUnion . pNR,GRNo. _iZAZ,,lity26,1976).
2. An agreement that diminishes theemploy_ee'sayandbenefits s containeOrn, a pOEA_approvedcontract is voio,unless such subsequent greementslpproved by pOEA (Chaviz v. Bonto_Perez,GR No. O7BOA, arch1, rn*l:
'-
{]1imum _ Emptoyment Conditions of?vef
easEmptoyment cFFJW_RAFl'F:IT"-"d ryages or regutarworkingnours ndovertime ay;
21ee ransportation'tromointof hire to
^ lte of employmentnd eturn;
r. tree emergencJ.nedical and dental. treatment nOaiiiities;
4. ,lustcausesor terminationf theservicesof theworkers;
5. Workmen's compensationbenefits and^ yar hazard rotection;6. Repatriationof worker,s remains and_ propertiesncreeof death;
':
7. Assistance on remittance of workeis^ salaries ndallcnrances;nd8
Frq:..and adequateOoarO nd todgingfacilities
rcompensatoryoodallowanfeAgenciesGiven the Duty to promote thewelfareand rightsof migrantwbrf.i"-
"'*r. uepaftmentf Foreign ffairsDFA);2. DOLE:3. POEA,4. OverseasWorkersWelfareAdministration
loYrunl_ providessociat and ;"tf;;;
services ncluding nsurance ;;;;;;-regSt assistance,placementassistariceand remittance services
to
--F-iiip;;;
overseasworkers; Under R.A. g74t. ishan provide he Fitipino i;;;j;;k";: 9 his .famity issistanje i;'- iir;enrorcementf contractualbligationsv
. l9e ies, entities nd/or heirpn"ncipais:,
u. x+rt?c€tTl€r.ltand MonitoringCenter
(.npUl- devetopsiverinoodro"gr"il';;lthe returningworkers o reintegratehe
: . J$urQlqg-njgrant <i , .,€oc1etfarid :.,. ?ftels
q'th.e,f;fiilippine.
6. NSg - tasked with the setflementoradjudicationf abordisputo.
'-'-"'1"'
"'
Classificationof OFWs1. Sea-8ased or Seamen those employed
in'
a vessel engaged in m"riiim"navigation.
2. Land-Based contractworkers other thana seaman includingworkers engaged inoffshore activities whose oCcu:pationrequires that majority of his working orgainfulhoursare spenton land.
ART.18: BAN ON DIRECTH|RINGGeneralRule: Directhiring'ofFilipino orkersfor overseasemployments not filowed.
Exceptions: Direct-hiring y: (DION)1 Membersof the
Diplomatic orps;2. [nternationalorganizations;3. Qiher employers as may be allowed by
DOLE:and4. lame hires - individualworkerswho are
able to secure contracts for overseasemployment on their own efforts andrepresentations without the assistance orparticipationof.any agency. Their hiring,nonethetess, hall pass hrough he pOEAfor processingpurposes(paft ttt, Rule il ofPAEA Rules Goveming OyerseasEmployment as amended in 2O02\.
Rationaleof the prohibition
1. To assure ine Oest possible terms andconditions f work to the employee;and
2. To assure the foreign employer that hehiresonlyqualifiedFilipinoworkers.
ART. 19: COMMTSSTONON FtLtptNOOVERSEASThe Commission n FilipinosOverseas CFO),
attached to the Deparment of Foreign Affair6,replaced the Office of Emigrant Affairs. ltassists in the formulation of policies affectingFilipinos overseas and formulates ai
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Ssn #ebs@ol[.egef ?teb2011CENTRALIZEDAROPERATIONS
Exceptions to Mandatory Remittance (URU)1. Fil ipino ervicemen orking n U.S.
militaryinstallations;2. Where the worke/s lii-rmediate amily
members,dependents, .riheneficiaries reResiding ithhimabroad, nd
3. irnmigrantsahd Filipinoprofessionals ndemployees worKing with United Nationsagenciesor specialized odies ResolutionNo. 1-83, lnter-Agency Committee forlmplementationot E.O. 857).
Effects of Failure to Remit'1. Workers who fail to comply with the
mandatoryemittanceequirementhallbesuspended or excluded from the list ofeligibleworkers or overseas mployment.Subsequentviolat ionsshall warrant hisrepatriation.
2. Employers who fail to comply shall beexcluded from the overseas employmentprogram.Privateemploymentagenciesorentities shall face cancellation orrevocationof their licensesor authority orecruit,withoutprejudice o other iabilitiesunder existing avrsand regulations Sec.
9, E.O.857, December13, 1982\.
CHAPTER I. REGUI.ATIONOFRECRUITMENT ND PLACEMENTACTIVITIES
ART.25: PRIVATESECTORPARNCTPATIONN THE RECRUTTMENT"AND PLACEMENTOF WORKERS
PrivateSectors that can participaie (pp-soc)
1. lrivate employmentgencies;2. lrivate recruitmentntities;3. Shippingr manninggencies;4. SuchQtherpersons smaybe authorized
by the Secretary of Labor andEmployment;nd
5. Qonstruction ontractorswith a dulyissued autfrority to operate private
recruitment ntities Sec. 7, RuleVll, Bookl, lmplementing Rulesof LC)
Qualifications for Participation (CCD)
1. Citizenship equirement Att.27, LC)a. Filipino it izens; rb. Corporations,partnershipsor entities
at least 75o/ool the authorized andvoting capitalstockof which is ownedand controlledby Filipino itizens.
i GapitalizationArt. 28,Lg
Private employment agency for localemploymenta. For single proprietorship or
ri..::,,:i:.i.rrr.tartnership minimum net worth oftwo (2) hundred housandpesos.
b. For corporationsa minimumpaid upcapital of five (5) hundred thousandpesos
Private ecruitment r manningagency oroverseasemployment
'a For single proprietorship or
partnership minimumcapitalization ftwo (2) millionpesos.
). For corporatio ns a minimumpaid up
capital of two (2) million pesos;Prqvided that those with existinglicehses shal within 4 years fromeffectivity hereof, increase theircapitalization r paid-upcapital,as thecase may be, to two (2) millionpesosat the rate of two hundred fiftythousand pesos (P 250,000) everyyeat.
3 fhose nof otherwisedisqualifiedby law orcthergovernment egulationso engage n
the recruitmentand placementof workersfor overseasemployment.
n
P {n
or
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LABOR AW
LABOR TANDARDS
4. Persons, partnerships or corporationswhich have derogatory ecords,subh asbut not imited o: (CPC-L)a. Those gertified to have derogatory
record or informationby the NationalBureau. f lnvestigationNBl)or by he
Anti-i l legal ecruitment ranchof thePOEA:b. Those againstwhom probable cause
or prima facle indingof guilt for illegalrecruitment or other related casesexists:
c. Thosegonvicted or illegal ecruitmentor other related cases and/or crimesinvolvingmoral urpitude; nd
d. Those agencieswhose [icenseshavebeen previouslycancelledor revoked
by POEA for violationof R.A. 8042,P.D. 442 as alnckg,ed and theirimplementing ulesand regulations swell as the Labor Code'slmplementingRulesand Regulations.
5. Qfficials or employees of the DOLE orother government agencies direcflyinvolved n overseasemploymentprogramand their relativeswithin the 4' degree ofcoi-rsanguinityr affinity; nd
6. Those whose license have beenpreviouslycancelledor revoked (Sec.
ZRule , 20A2R.ules nd Regulations n theRecruitment and Employment of LandEased Workers).
ART. 29: NON-TRANSFERAB|LITy OFLICENSEOR AUTHORTTYOPAP)1. lt may be used only by the Qne in whose
favor it was issued; hence, it cannot beassigned, conveyedor transferred o anyother personor entity.
2. lt must be used only in the Placestated n
the license.3. The recruitmentand placementactivities
must be undertaken at their [uthorizedofficial addresses.
4. lrovincial recruitmentand/or ob fairs maybe allowedonly when authorizedby FOEAin writing.
Note:.Changeof ownershipor relationship fsingile= rirpiietorbtiibti'licensedto englge 1noverseas employment shall cause the
automaticrevocationof the license.
ART.31: BONDSAll applicants or licenseor authority hall postsuch cash and suretybondsas determinedbvthe Secretary of Labor, induding escrowdeposits.
Purposes:1. To guaranteecompliancewith prescribed
recruitment procedures, rules andregulations,and terms and conditionsofemployment; nd
2. To ensure prompt and effectiverecourse
against uch companieswhen held liablefor applicants or worke/s claim (FinmanGeneral Assurancev. lnnocencio, GR No.9027?75, November 15, 1989).
Exemption rom Garnishment. Cashbond iledby applicantsor licenseor
authority s notsubject o garaishment y ajudgmentcreditorof the agency.
. Should he bond/deposit n escrowor anypart hereofbe garnished,he sameshould
be replenishedby the agency within 15days from notice rom the POEA. Failureto replenish the same within the saidperiodshall cause the suspensionof theficense (Sec. 22, Rule ll, Book ll, Rulesand Regulationson the Recruitment andEmployment of Land-based Workers).
Note: POEA has the power o enforce iabilityundercash or suretybonds.
ART.32: FEESTO BE PAID BY WORKERSr The applicant can be charged with feesonly after he has obtained employmentorhas actuall$ ommencedemployment.
r Feespaidshall alwaysbe coveredwith theappropriate receipt clearly showing theamountpaid.
POEA has the power to:1. Suspendor cancel icense;and
t. L2
2. Order he refundor reimbursementf suchillegally ollectedees(EasfernAssuranceand SuretyCorp.y. Sec. of Labor, GR
uding
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Sen Eels Gotkgeotjfdo2011CENTRALIZEDAROPERATIONS
ART. 34 AND SECTION 6, RA 8(X2:pRoHTBTTEDRACTICEStFFpt-HOFAT-W)It shall be unlawful or any indiMdual,entity,licensee,or holderof authority:
1. To charge greater amount than thatspecified n the scheduleof allowable ees( llegalexaction),
2. To furnishany false information n relationto recruitment or employment (Falseinformation);
3. To give any false notice, estimonyetc. orcommit any act of misrepresentationosecure a license or authority (Falsestatements);
4. To induceor attempt o inducea worker oquit his ob in lieu of anotheroffer unless tis designed to liberate the wofker fromoppressive terms of employment(Pirating);
5. To influenceor attempt to influenceanyoersonor entitynot to employ any workerwho has not applied for employmentthrough his agency ( nfluencing not toemploy);
6. To engage n the recruitment r placementof obs harmful o publichealth,moralityorto the dignity of the Philippines Harmful
jobs);7. To obstruct or attempt to obstruct
inspectionby the Labor Secretary or hisauthorized representatives (Qbstructinspection),
8. To fail to file reports on the status ofemployment, placement etc. and suchother matters as may be requiredby theSecretaryof Labor(failure to complywithrulesand regulations);
9. To substitute or alter employment
contracts without the approval of theSecretary of Labor (Alteration ofcontracts);
10. To become an officer or member of theBoard of any corporationengaged n themanagementof a travel agency (fravelagencyofficers ecruiting); nd
11. To withhold travel documents fromapplicant workers before departure for
. i .unagthorized'.,monilqrY ;.'consideratlQns(Withholdingrbvel documents).
See RA10022 n Social Legislation.
ART. 35: SUSPENSION AND/ORCANCELLATION OF LICENSE ORAUTHORITY
Non Licensee or Non-Holder of Authority -
any person,corporation or entitywhich has notbeen issued a valid license or authority toengage in recruitmentand placementby the
Secretary of Labor,or
whosg license o-r
authority has been suspended, revoked, orcancelledby the POEA and he Secretary.
Grounds for Revocation of License (IVEE)
1. lncurring an accumulated hree counts ofsuspensionby an agency based on finaland executory orders within the validityperiodof its license,
2. Violation/sof the conditions f license;3. lngaging in acUsof misrepresentationor
the purpose of securing a license orrenewal hereof;and
4. Engaging n the recruitlhentor placement
of workers to jobs harmful to the public
healtfi or moralityor to the dignity of theRepublicof the Philippines Sec.3,Rule ,B-p-o 1,y-;-Vl,Rules and RegulationsGbveniing OverseasEmployment).
Grounds for Suspension/ Cancellation ofLicense(PC-DDP)1. The acts grohibited under Ar1.34;2. tharging a tee before the worker is
employed-or in excess of the authorized*
annount;3. poing recruitment in places outside its
authorizedarea;
4. Qeploying workers without processingthrough he POEA; and
5. flublis[ing job announcementswithout hePOEA'S pricr approval (Sec.4, Rule ll,Baok lV, POEA Ru/es).
JurisdictionThe D9LE Secretary 4ft. 351and the POEAAdministrator (Sec. 1, Rule ll. Book VI, NewRu/es on Overseas Employment) haveCONCURRENT URISDICTIONo suspend r
cancel a license (Irans Adion OverseasCorp.y. Sec. of Labor, GR No. 109ffi3, September5, leen.
Liability of recruitmentagencyDARILY
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LABOR AWLABOR TANDARDS
of the New Civil Code(Catan vNo.77297,Aprit 15, 1988\.
of.authorityor a licensee or holder of
authority Sec.6, R.A.BO42l:1. Those prohibited practices
enumerated nderArt. 34:2. Failure o actuallydeploywithoutvalid
reasonas determinedby DOLE;3. Failure to reimburje expenses
incurredby the worker in connectionwith his documentation andprocessing for purposes ofdeployment, n cases where thedeployment does not actually takeplacewithout he workeis fault and
4. Recruitment nd placement ctivit iesof agentsor representativesappointedby a licensee, whose
appoiritmentswere not previously authorized by thePOEA shall likewiseconstitute llegalrecruitment.
Elementsof lltegal Recruitment1. The offender s a licensee/non_licenseeor
holder/non-holder f authorityung"g"d inthe recruitment nd placem.nt
"t-*J*"r";nd2. The offender undertakes either anv
recruitmentactivitiesdefined underAfticte13 (b), or any prohibited practi"e"enumerated under Arf. 34 (peopte v.Sadbsa, GR No. 1070A, Uai tS,' teSB;Sec.10,R.A.Bo42).
Qrialifying Circumstances that would makeillegal recruitment as an offens" iluolvil;economic sabotage:1. When llegalecruitments committedva
SYNDICATE,.e., f it is carriedo,rt'nV
three (3) or more personsconspirino^ .1?9/or.:onfederatingithoneanothei; r"z. wnen ltegat ecruitments committedn a
LARGESCALE, .e., it it is committeJ
NIRC, GR
Exception to Liabitity of RecruitmentAgency. Where
heworkershemselvesnsistedorthe recruitmentgencyo send hembacxto their foreignemployerdespite heirKnowtedgef its inabilityo pay theirwages, he Court.absolvedhe agencyfrom iabitity Fe1qteConstrudion Zip.,r.Gayda,GRNo. 82310, une 18, gglf
Contractby principalo Even f it was he principal f themanning
agencywhoenteredntocontract ith he
employee, he manningagent in tnuphitippinesis joinflyana soliOerUilffitewrrn_rheprincipal pgaOuttMaritimeCorp.u .Balatonga4 -GR Nos. aSOS+_5SFebruary A, 1989).
Suabilityof ForeignCorporations
unlicensed gents, ecruits ort ers in i.99y$ry naybesuedn and ound iabte yPhifippine ourts(FaoTtie"
u"nii"iurtCorp. v. De La osa GR No.L:iS;;;:s,March26,1979\.
CHAPTERIt.MISCELLANEOUSPROVISIONS
fRT. 38: TLLEGALRECRUTTMENTASATUENDED Y R.A. so42). s;;;;_d;;;hdl:"y::lol of ilesat recruitment
"ia"iirZldiv
RA 10022under he SociatLegisiaiiiiii";
ItlegalRecruitment3nyact of {CETCHUp)
? Y-1"-"tns' enlistins, id;p;;ils3l^11-rl-1t'ns:--Fid.ns,titizins, i procuririqworKers and includes (CRAP) contrajseryices,geferrals,or gdvertisinS,'r;;l;r.Ofor emptoymentbroad,wrretneiioioroi,i".iinot, when undertakenOy a non_iicd;;; ;;non-holderl authority;r-oviOeOttratny JuJnon-licenseer non_holderf authorityl;j;any.manner,offers or .promisesoi
",ieuempl'drnefi
nbroadto wo ormlre:p6ftofi]rshall be deemed so engaged. nl"o in"iuO""tnga{.ofreprocessing-ior-reisl;ililJior-derhat pertainso nonexistent oik, ;;;kdifferent rom the actualovers"a" *orf.,
-*
wo{ with a different emptoyer ;h;ih;;registered r notwith he poEA
f3*a.Jij i i"ic as amended y RA 10022)' - r-'
r lt shall ikewisencludehe commissionf
lhe
following prohibited d"ilil;;committed ya non_ticen""" r.non_tJiJJi
against.three (3) or more persons
4
license.inducedSuchact
that they
fee,
Act
par.2 of the4ft. 315,
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Ssn Sets Gollrgeof Asb2011CENTRALIZEDAROPERATIONS
Hernandez, GR Nos. 141221-36, March 7.2002t.
Venue of Cr iminal Action Arising fromlllegal RecruitmentThe complainantmay, at his option, ile at theRTCof the provinceor city:1. Where he offensewas committed:OR2. Where the offended party resides at the
time of the commission f the offense.
Summary of Rules on Prescriptive period
Note: MAXIMUMPENALry shallbe imposedf the Wrson illqally recruited s less than 18iears of age or committedby a non-licenseecr non-holder f authority.
Absence of Receipts Evidencing payment,t'lot Fatal to Prosecution's Case for lllegalRecruitmenta.s ong as the witnessescan positively how:hrough their reSpective estimonies hat theaccused is the one involved in prohibited'ecruitment, she may be convicted of theoffense despite the absence of receiotstreople v. Sagaydo, GR tVos. 124671-70,
September 29,20@).
Liability of Employee of Company Engagedin ll legalRecruitmentdr employee of a company or corporationengaged n illegalrecruitmentmay be held aseRINCIPAL,togetherwith his employer, f it is3lrown that he adively and consciouslyanticipated in illegal recruitment (peopte v.3abais, GR No. 129070,March 16,2O01).
bsuance of Searc*r Waiiant,or Warrant ofturest
. Att.38 s UNCONSTITUTTONALnasmuchas it gives the Secretary f Laborthepower o issur searchor arrestwarrants(the Secretarynot being a judge, theauthoritiesmust go through he udicialprocess).
. The EXCEPTION is in cases ofdeportationof illegal and undesirablealiens whom the president or theCommissionerf lmmigrationmay orderanested, following a final order of
deportation. Salazarv. Achacoso,GR No.81510,March14,1990).
Note: The Secretaryof Labor may orderclosure of illegal recruitmentestablishments because it is onlyadministrative nd regulatoryn nature.
TITLETWO.EMPLOYMENTOF NONRESIDENT LIENS
ART. 40: EMPLOYMENTPERMITOF NON-RESIDENT LIENS 2.
Alien Employment Permit (AEP)-
is requiredfor entry into the country for employmentpurposes and is ig;u,gJ-,.qftereterminationofthe non-availabitity of'' a person in thePhilippineswho is competent,aHe and willingat the time of application to perform theservices or which he alien s desired.
All foreign nationalswho intend to engage ingainful emplgyment in the PhilippinesshallapplyforAEP. Sec.1, D.O.97-09)
Employment Permit Required (FNAM)1. All loreign nationalsseekingadmission o
the Philippines for the purpose ofemployment;
2. All qdn-resident oreign nationalsalreadyworking n the Philippines;
3. Non-resident oreign nationalsadmitted oth'e Philippineson non-workingvisas andwho wish to seek employment; nd
4. $issionari* or religious workers whointend o engage n gainfulemployment.
Note: Employment permit should be securedregardless of the source of compensationandduration of the employment, whether theemployment s part-time or temporary (Secs. 2and 3, Reyl'sed Guidelines for lssuance of
Note:DOLE
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LABORLAW
LABORSTANDARDS
Requisite forAliens:lmmigrants and
Employment of-Resident
resident aliens are not
the issuanceof AEP and the empoyerhasnow the option to implement ransfer oftechnology.
Grounds for Suspension of EmploymentPermit(DS)1. The continued tay of the foreignnational
may result in glamage o the interest ofthe industry r the country;and
2. The employmentof the foreignnational sguspended by the employer or by theorderof the Court /bid. .
Grounds for Revocation of EmploymentPermit(Non-MSM-DerT)1. Non-compliance with any of the
requirementsor conditions or which theemploymentpermitwas issued;
2. $isrepresentation of facts in theapplication;Submission of falsified or tampereddocuments:
4. Meritorious objection, or informationagainsthe employmentf foreign ationalasdeterminedy he Regional irector;
5. Foreign ational as a derogatoryecord,and
6. Employer as erminatedhe employmentofthe oreign ational/bid..
Validity f Employment ermit. ONE (1) YEAR,unless he employment
contract,consultancy ervicesor othermodes f qngagementrovides therwise,whichshalf,n no caseexceed5 YEARS(rbid.).
. FINE orworking ithout rwithan expiredAEP: P 10,000everyyearor a fractionthereof/Did
Ruleon Nationalized usiness
General Rule: Foreignersmay NOT beemployedncertain ationalizedusiness.
Secfion2-A of the Anti-Dummy aw prohibitsthe employmentf aliens n entities ngaged
required o securea workingpermit They arerequired to secure heir A/len EmploymentRegistration Certificate (AERC) (Almodiel v.NLRC,GR No. 100641, une 14, 1993)
Exemption from PermitThe following categoriesof aliens are exempt
from securing employmentpermit in order towork in the Philippines:DIG-LATeR)
1. All membersof the diplomaticserviceandlgr-'9.4ryrr3.foreigngovernmentfficials ccredited yandwith reciprocityrrangement ith hePhilippineovernment;
2. Otficers and staff of lnternationalorganizationsf which he Philippiness amember, and their legitimatespousesdesiringo work n he Philippines;
3. Foreignnationals lectedas members fthe Qoverning oardwho do not occupy
any other position,but have only votingrights n hecorporation;
4. All foreignnationalsranted xemption ylavu
5. Owners and representativesf foreignnationals hose ompaniesregccreditedby the POEAwho come o the Philippinesfor a limitedperiodand solely for thepurpose f intervisrvingilipino pplicantsfor employmentbroad;
6. Foreign nationalswho come to the
Philippines o leach, present and/orconductresqarch tudies n universitiesand colleges as visiting, exchangeoradjunct professors under formalagreementsbetween he universitiesorcolleges n the Philippines nd foreignuniversitiesor colleges;or between hePhilippine government and foreigjn
, government; rovidedhat the exemptionis on a reciprocal asis;and
7.' Sesldent folelgn :nationdls(Oepf"rord. r'No.7O06,May 31 2006).
Grounds or Denialof Application f AEP:1. Mivepresentation of facts in the
application2. Submissionf alsifiedocuments;3. The foreign national has a derogatory
record;or4. Availabilityf a Filipino ho is competent,
ableandwilling o lhe ob ntendedor theforeign ational
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Sun Selu @ollegefLan2011CENTRALIZEDAROPERATIONS
ART. 41: PROHIBITION, AGAINSTTRANSFEROF EMPLOYMENT
' Aliensshatl not transfer o another ob orchangehis employerwithout priorapprovalof the Secretaryof Labor.
2 Non-resident alien shall not take upemployment n violationof the provisionsof the Code.
Note: Violationsof the abovementioned cts-nll subject the alien to the punishmentcrovided in Afts. 289 and 290 and to
:eportationafterserviceof sentence.
TITLE ONE: NATIONALMANPOWERDEVELOPMENT ROGRAM
CHAPTER . NATIONALPOLICIESANDADMINISTRATIVEMACHTNERY OR TFIEIR
IMPLEMENTATION
ART. 43.56:TECHNICALEDUCATIONANDSKILLSDEVELOPMENTUTHORITY
-reNationalManpowerand youth Council'.VYC) has been replaced by Technical
=lucation and Skills DevelopmentAuthoritv-SDA) createduRderR.A. No. 7796or theESDA
Act of 1994.
StaHnent of Goals and Objectives" To attain internationalcompetitiveness:i To meet demands or quality middleJevel
manpower;: To disseminate scientific and technical
knowledgebase;-1 To recognize and encourage
'the
complementaryroles of public and privateinstitutions;and
i To inculcate esirable alues.
r*riddle{evelManpower refers to those:' Who have ac-quired practical .skills: and
knotledge through formal or non_formaleducation and training equivalent to atleasta secondaryeducition br.rtpreferablva post-secondary education with ;conesponding egreeor diploma;oi
_ Skilledworkerswho have become hiohlvcompetent n their trade or craft as attejteiby industry.
TITLETWO.TRAININGAND EMPLOYMENTOF SPECIALWORKERS
CHAPTER t. TYPES OF SPECIALWORKERS ,:
1. Apprentice2. Learner3. Handicapped
ART. 57: STATEMENT OF OBJECTTVESFOR THE TRAININGAND EMPLOYMENTOF SPECIALWORKERS1. To help meet the demanf,"of he economv
for trainedmanpowe[2. To establish a national apprenticeship
program;and3. To establish apprenticesfiip.,,-standardsor
the protectionof apprentices-
ART.58:DEFINITION F TERMS
Apprenticeship - practical rainingon the jobsupplemented by related theoreticalinstruction, or .a highly skilled or technical
occtpation'fora periodof not lessthan three(3) monthsbut not more han six (6) months.
Apprentice - a worker who is covered bv awritten apprenticeship agreement with anindiMdual epployer or any of the entitiesrecognized iunder this chapter, with anapprenticeship rogramduly approvedby theDOLE.
Apprenticeable Occupation - any trade, orm
of employmentor occupationwhich requiredmore han 3 monthsof prac{ical rainingon thejob supplemented by related theoreticalinstruction.
Apprenticeship greement an employmentcontractwhereinhe emprloyerindshimselfotrain heapprenticend he apprenticen turn
by
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LABOR AW
LABOR TANDARDS
apprenticeshipprograms. (Sec 41 RuleVl, Book ll, Rules mplementing the LaborCode)
ART. 71: DEDUCTIBILITY F TRAININGcosTs
An additional eductionrom axable nc-omeof 112of the valueof labor raining xpensesincurredor developinghe productivityndefficiencyof apprenticesare granted o theperson or enterprise organizing anapprenticeshiprogram.
Requisites:DNP)1. Apprenticeship rogrammust be duly
recognizedy heDepartmpntf Labor:2. Deductionhall ot exceed10olo f direct
laborwage;and3. Employermust ay his apprenticeshe
minimum age.
ART.72:APPRENTICESITHOUTCOMPENSATIONApprentices may be hired without
compensationhereon-the-jobrainings:(SGT.B}1. RequiredytheSchool;2. Required by the lraining program
Curriculum,3. A requisiteoreraduation,r4. A requisiteor poard examination.Sec.
40, RuleVt, BooRl, Rules mplementingthe LaborCode)
Ruleson WorkingScholar
1. There is Ne employer-employeerelationship etweenstudentson onehand,andschools,olleges r universitieson the other hand, where there is'agreementbetweenhemunderwhich heformer agree to Work for the latter inexchangeor the privilegeo study ree ofcharge,provided he studentsaie givenrealopportunities,ncludinguch acilitiesas may be reasonablend necessaryofinish their chosencoursesunder suchagreement(Se,c.
-r'_4,,r,,Ru{e, BooRttt,mplementingRules).2. Under this Article, he student is not
con$ideredn employee. ut f he causesinjuryor damage o a third person, heschool-maye held iableunderArt.21gOof the Civit Code. (Fitamer Christianlnstitute . tAC,GRNo. 7St1Z August 7,1992).
CHAPTERI. LEARNERS
ART.73: LEARNERSDEFINED
Learners - personshiredas trainees n semi-skilledand other industrialoccupationswhichare non-apprenticeable nd which mav belearned hroughpractical rainingon the bb ina relatively hortperiodof time whichshallnotexceed3 months.
Learnership Agreement - enlploymentandtraining contract entered into'between theemployer nd he earner.
Note: On-the-job or practical training of a
.].ffi4pt need not be supplemented bytheoretical inetruction (Sec. 1[a], Rule Vil,Book Il, Rules lmplementing the Labor Code).
ART.74: WHENLEARNERSMAY BE HIRED
1. No experienced orkersare available;2 fq9 employment of learners being
netessary to prevent curtailment of
employment pportunities; nd3. The employmentwill neithercreateunfair
competition n terms of labor costs norimpairworkingstandards.
Employment3f rinor" as learners"A minor belowfifteen(15) years of age shallnot be eligible or employmentas a learner.Those below eighteen 18) years of age mayonly be employed in non-hazardouioccupations. (Sec 4 Rule Vll, Book ll, Rules
lmplementing the Labor Code)
ART.75: LEARNERSHIP GREEMENT
It shall nclude: NOWC)1. The lames and addresses of thd
if he
period
Rule Vll,
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San Gebs@ollege f [.ub2011CENTRALIZEDAROPERATIONS
ART.76:LEARNERSN PIECEWORK
_?arners n pieceworkor incentive-rateobs;"e to be paid in full for the work done during*e trainingperiod.
-.r less han3 months:r+dkal training n herc cutnot"morehan6
:'dical training onte job supplemented:,. related heoretical
instruction
":cornmihlent to hire
Worker s notcorsidered n
employee
Requires OLEaproval for validity
]FTAPTERII. HANDICAPPEDWORKERS
ART.78:DEFINITION ':i
' . I,:. :": '
; ' ' ; ':
-lrndicapped Workers - those whose:r.RNlNG CAPACITY s impairedby age or;r 'sical or mental deficiencyor injury,disease:r ilness.
rroG: There must be a link between the-€ciency and the work.which entites the.:rcloyer to lessen the workeis fuage.
lf ther=Lility of the person is not in any way.:ded to the work for which he was hired,hes-,r-rtd ot be so considered s a handicapped
Disability1. A physical or mental impairment that
substantially limits one or morepsycholog ca , physiolog cal or*gpato nicalfundion of an individual or activitiei ofsuch ndividual;
2. A recordof suchan impairment; r3. Being regarded as having such
impairment. Sq 4, R-A.7277)
ART. 79: WHEN EMPLOYABLE
1l Their employment is necessary o preventcurtailment of employmentopportunities;and
2. lt doe not create unfair competition nlabor cosls or impair or lower workingstandqrds.
Handicapped Workers May becomeRegulaf Employees. Subject to the provisionsof the Code,
handicappedworkers may be hired asregularworkers, apprenticesor learners Ftheir handimp is not such as to effec{ivelyimpede the performanceof job operationsin the particularoccupations or which theywere hired. (Sec. 5, Rule VllL Baok ll,Rules lmplementing the Labor Code)
. The noble objectives of the Magna Cartafor DisabledPersonsate not based merely
Those whose eamingcapacity is impaired byage or physicalor mentaldeficiencyor injury.
restriction or differentdisabilities, sa resuftofa mental, physbal orsensory impairment, operforman adivity in themanner or wihin therangeconsideredormalfor a humanbei
Practical rainingon thejob notto exceed3
months
Hrnngor personsas. tainees in semlskilled
andother ndustrialoccupationshichare
non-apprenticeablendwhichmaybe eamed
through racticalrainingon he ob in a relatively
shortperiodof ime
a commitment
employthe leamer asregularemployee f hedesiresuponcompletion
Leamer is consideredregularemployeeafter 2monthsof trainingand
dismissal s without auft' of learner
Semi-skilled/industrialoccupationnon-apprenticeable)
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LABORLAW
LABOR TANDARDS
or allorr/ancesas a oualified able-bodibdperson.
Discrimination on Employment (Sec 32,R.A.7270No entity, whether public or private, shalldiscriminate against a qualified disabledpersonby reasonof disability n regard o jobapplicationprocedures, he hiring,promotion,or discharge of employees, employeecompensation, ob training, and other terms,conditions, nd privileges f employment.
Sheftered Employment (Sec.6, R.A.72n)The State shall provideshelteredemploymentif suitableemployment annotbe found.
Duration of EmploymentNo minimum, no maximum duration.Dependenton agreementbut it is necessarythat there s a specificduration.
lncentives for Employment (Sec. 8, F*A.7277)1. Private entities that employ disabled
persons who meet the required skills orqualificationseither as regular employee,apprenticeor learner,shall be entiiled toan additional deduction from their grossincome, equivalent lo 25o/oof the totalamount paid as salaries and wages todisabled persons; Provided, that thefollowingare cornplibdwith:a. Presentation of proof certified by
DOLE hat disabledpersonsare undertheir employ;
andb. Disabledemployee s accreditedwithDOLE and DOH as to his disability,skillsand qualifications.
2. Private entities hat improveor modify heirphysical facilities to provide reasonableaccommodation or disabledpersonsshallalso be entitled o an additionaldeductionfrom their taxable income, equivalent toffia/o of the direc.t costs of theimprovementsor modifications. his doesnot apply to
improvementsequiredunder:,', B,Pa.Qg;i344s, :,,.,),4 i*tl,* * .\r.1'..;i;, . .'f; ;riu.
ART. 80: EMPLOYMENT GREEMENT
Gontents (NRTND)1. The4ames and addressesof the employer
and the handicappedworkefi2. The gate-ofpay of the handicappedworker
which shall not be less than the legalminimumwage (Seq. S, Chap.i, of nil; il
ot RA7277); )3. The gature of work to be performedby thehandicappedworker;and
4. The Qurationof the employment . Sec. 3,Rule Vlll, Book Il, Rules lmplementing heLabor Code)
ART. 81: ELIGIBILITY ORAPPRENTICESHIP
Handicapped workers are eligible foremploymentas apprentices r learners f theirhandicap s such that it does not impede heperformance f ob operations n the particulartrade or occupationwhich s the subjectof theapprenticeshi or learnership ro{tam.
Benefits Granted in Title One Book III1. Right o regularworkinghours2. Right o regularworkingdays3. Right o overtimework4. Right o regularmealperiods5. Right o night-shift ifferential ay
6. Rigfit to weekly re$periods
7. Right to additional compensation onscheduled rest day, Sunday or specialholidaywork
8. Right o compensationor holidaywork9. Right o seryice ncentiveeave10. Right to a dhare in the collectedservice
cnarges
TITLE ONE: WORKINGCONDITIONSANDRESTPERIODS
CHAPTER . HOURSOF WORK
ART.82: COVERAGE
EmployerAny person,natural or juridical,domesticor
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5ar EeIs @olteget {.eb2011CENTRALIZEDAROPERATIONS
c. Paymentofwages;3. Powerof Dismissal;and
4. Pcwerto Control.(Paciflc Consultants nternational Asia, lnc. v.Schonfetd,GR No. 166920,Feb. 19,2007\
Two-tiered Approach1. The putativeemployeis power to control
employeewith respect o the means andmethods by which the work is to beaccomolished:nd
2. The underlying conomic ealit iesof theactivity r relationship.
Economic Dependence or EconomicReality TestWhether the worker is dependent on thealleged employer for his continuedemployment n that line of business.
Contol Test - refers o the employeis powerto control or right o control he employeenotonly as to the resultof the work to be done butalso as to the rneans and methods by whichthe sdme s to be accomplished.
. The control fesf is the most important testour courts apply in distinguishinganemployee rom an independent ontractor.This test is based on the extentof controlthe hirer exercises over a worker. Thegreater the supervision and control thehirer exercise5, he more likely he workeris deemed an employee. The converseholds true as well - the less control thehirer exercises, he more likely he worker
is consideredan independentcontractor(Sonza v. ABS-CBN Broadcasting Corp.,
. GR No. 138051, une 10,2@4).. The control test merely calls for the
existence f the right o control he mannerof doing the work, not the actualexerciseof the right (Zanofte Shoes y. NLRC, GRNo.100665,February13, 1995).
Note: The issuance by the principal ofguidelines does not establish control by
principal"(Crya Cola B_cf.tlers'Pfiil.,ng,.v.Climaco, GR No. 146881,February5, 200n
r Not every form of control will have theeffect of establishing the Er-Eerelationship.The line should be drawnbetween:a. Rules hat merely serve as guidelines
towards the achievementof mutuallydesired results without dictating themeans or methods o be employed n
attaining t, These bim only to promotethe result. In such a case, NO Er-Eerelationshipexists.
b. Rules that control or fix themethodologyand bind or restrict he
party hired to the use of such means.These addressboth he resultand themeans used to achiev e t and hence,Er-Ee relationship exists (lnsuranceLife Assurance Co., Ltd. v. NIRC GRNo. 84484, November 15, 1989).
Cases Where Employer-EmployeeRelationship Exists. Jeepney drivers . on _.boundary basis
(Villamariav. CA, GR'h/o. 165881,Apfl
19.2006\r Drivers or helpers of salesmen areemployees of the company (Alhambra
lndustries v. ClR, GR No. L-15Qp 1;.:,,;October 30, 1970)
. Employees of unregistered association(Qrlando Farm Growers v. NLRC. GR No,129076, No.yember 5, 1998].
o Street-hired kargador (CaurdaneraanPiece Wor4ers Union v. Laguesma, GRNo-113542,February24,1998)
.* Workbrs in mcvie prqjects (Maraguinot v.NLRC,GR No. 120969,January 22, 199e)r Salaried nsuranceagent as distinguished
from registered agents on commissionbasis (Greaf Pacific Life Assurance Corp.v. Judico, GR No. 73887, December 21,/989)
'
r Tailors, seamstresses, seryers, basters,plantsadoras paid on piece-rate basis(Makati Haberdashery v. NLRC, GR Nos.83380-83, November 15, 1989)
o In-house awyer as distinguished rom anoutside retainer (Hydro ResourcesContractors Corp. v. Pagalilauan, GR No.L-62909, April 18, 1989)
. University professors and instructors(FEUv. ClR, GR No. L-17620, August31,1962)
. Taxi driver, barber (Citizens League ofFree No.L-21212.
drinks
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LABOR AW
LABOR TANDARDS
37790, March25, 1976)
Note: A contract of perpetual emptoyment
deprives .managementol its prerogativetodecide whom to hire, fire and promiote,andrenders inutile the basic precepts of laborrelations. An absolute and unqualifiedemploymentor life n the mold of petit ioneisconcept of perpetualemployment s contraryto public policy and good custom",
"sit
unjustly orbids he employer rom terminating.the services t an 6miloyeeoespitenEexistencef a justor validause. t'likewisecompelshe employero retainan employeedespite the attainmentof the statuioryretirement ge, even if the employeenasF:gT" a'non-performingsset" r, *or"", ,liability to the employer. (Sorreda i.Qgybridge EtectronicsCorporatioln,C R. N;.172927, ebruary11,2O1Oj
GeneralRule:Tiile , Book ll of the Laboru'Joeoeattngwlthhoursof wor( weekly estperiods, olidays,ervicencentiveeaves ndsery 99charges, overs
all employeesn ALLestablishments,hetheror proit or not.
Exceptions:GoMaFiaDoR)1 @vernment mployees;2.. M?nagerialmpioyeesncluding embers
of themanagerialtaff,
iii. They have the authority o hireor fireotheremployees f lowerrank or theirsuggestions
nd recommendationssto the hiring and firing and as to the.,, romotion or any other change ofstatus of other employees are givenparticular weight. (Sec.2[b], nite t,Book lll, Rules tmplementing theLabor Code)
b. Not coveredunder his Tifle because heyare employedby reason of their specijttraining,experience,or knowledge;
'value
of theirwork cannotbe me,isured-n terms
of hours.
4
5.
6.
eld perconnel;
Y-"Ib"q of the.Family f the emptoyerwhoaredependentnhim orsupport;Domestic helpers or persons in thepersonal
erviceof another: ndWorkers aidbyResult.
Government Employeesa. Refer.only to employeesof government
agencies, instrumentalities,or politicalsubdivisions and of gou"rnrn"nicorporations that are NOT incorporatedunder.the CorporationCode, ,.e., thos;wnlch haveoriginalcharters.
b. Not coveredunder this Tifle because,he
terms and conditionsof their ;rt;6;;i
Elements to be Considered a Member ofthe lvlanageriatStaff (PCREED/1. That his primary duty consists of the
lerformance of work direcfly related to
are governedbv Civiland Tegrllatiors: / : 9:tiff,rFr*'#lo
Managerial mployeesa. Alter-egos f their employers ho meet
thefollorving.onditions:i. Their primaryduty consistsof the
managementf the establishmentnwhich they are employedor of aoepartmentrsubdivisionhereof:
ii. Theycustomaritynd regutaityireAthe work of twctherein; nd
) or moreemPloYees
conditions,rest periodi,entitlement obenefrs)
Usedonty or purposesof Book lll (i.e. working
Used only for purposesol Book V (i.e. fomingand joining unioni,ceftification elections.col ectivebargaining)
One vhoseprimary utyconsi-stF
9fthe
management of theestablishment in whbhthey are employed or ofa deparbnent brsubdivision thereof andto othermembers f themanaqerialtaffi
powersor prerogativesto lay doriynand execute
management policiesandlor to hire, tansfer,suspend, lay-off, recall,orscnarge, assign ordiscipline mployees
One who is vested
Supervisorsre leenred
NLRC,Mudt 24, lggg\.
members of themanagerial staff(National SusarRefineries
Corp. v.
upervisors are notmembers of themanagerialtafi.
managementolicies;
20o/o
r thoseI, Book
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Ssn ffiebu@ollegr fI.sb2011CENTRALIZEDAROPERATIONS
l,i,il:[E n employeewhose ob is to supervise',- =sorers n the construction roject alls
rl-E'€t under the categoryof"off icers
or-,* - rers of a managerial staff' and isr, :-:ted from payment of overtime pay,
i,*- , in pay for holidaysand rest days and*-, :€ incentiveeavepay. (Salazarv. NLRC,,:
',c 109210, pri l17, 1996)
-eis.iof Supervisory or ManagerialStafus
-*e-ds on whether a person possesses
;, ::,:r i / that s not merely outinary r clerical' -::Jre but one that requires USE OF, -,===NDENT
JUDGMENT (ViIIuga v., -:: GR No.75O38, ugust23,1993).
:'erd Personnel, --agriculturalemployees:
; n+r^roegutarlyperform their duties away*cnr the principal place of business or:',anchofficeof the employer;AND
: r|i,ose actual hours of work in the field:annot be determined with reasonable:ertainty. (Sec. 27, Rule l, Baok lll, Rules-clementing the Labor Code)
irote: The Eight-HourLabor Law has no:;olication to the outsideservice orce or'eC sales personneland they are'not:-:fied to overtime compensationsince-*e r employerhas no way of knowing he--nber of hours he employeeworks per:a.,. (San Miguel Brewery v. Democratic-*or Union, GR No, L-18353, July 31,__rffJ
:--,LE lN CASE OF FISHERMEN: Inttercidar Fishing Corp. v. NLRC, GR No.":2574, October 8, 1998, fishermenare-:t field personnel,atthough hey perform-,rn-agricultural work away from:6ffonefs business offices. the fact-e'nains that throughout the duration of:eir work they are under the effective:dltrol and superuision of employer.-3WEVER, underthe PhilippineFishenes1a& of 7998. fishermenare considered
f ad perEo.llrelii ..:1:;1,:.,',,.",,.:.r .,,...;.11,.-,,,
;- i-E IN CASE OF DRIVERS/ BUS:SNDUCTORS: lt is of udicialnotice'that: cqg the routes that are plied,by bus:lrnpanies, there are inspectorsassigned- Sategic paces, mandatory once-a-*rE€k car barn or shop day,:'"uergconductors must be at specific]ace at specified ime, as they generally:lserye promptdeparture and arrival from
:-elr point of origin to their point of:estination. They are, therefore, under:,srsfanf supervision while in the
performance of this work and hence
cannot be considered field personnel.
(Autobus Transport Sysfemt lnc. v.Bautista,GR No. 156367,May 16, 2005).
Members of the Family of the EmployerNot coveredby this Title because he amountsgiven by the employer by way of supportmayfar exceed he benefits o which the employeeis entitledunder he provisions f lanrv.
Domestic Helpers/ Persons RenderingPersonalServices r(
a. Thosewho:i. Perform services in the employer's
home which are usually necessaryand desirable or the mainten ance renjoyment hereof;or
ii. Minister to the personal comfort,convgnience or safety of theemployer, as well as the members ofthe employels household.(Sec. 2[d],Rule l, Book lll, Rules lmplementingthe Labor Code.)
b. -,Not covered by this Title because the
terms and conditions of em$oyment aregovernedby the provisionsof Chapter ll,Title ll of the pr*ent BooK
Workers Paid by ResultSuch as on'piece rates or task basiswho arenot covered under this Title because theircompensations based on the work completedand not on the time spent n working.
lmportance of Determining Existence of
Employer-Employee Relationsh pa. Generally, abor standards and conditions
apply only if there is Er-Ee relationship.Bqt in some instances,even if there is noEr-Ee relationship, he Labor Code maystill be invoked (e.9. indirxt employefsliability, illegal recruitment and rnisuse ofPOEA
1. To
2. To
di
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LABORLAW
LABORSTANDARDS
Part-TimeWorkThe Eight-Hour Labor Law prescribes the
maxlmum but not the minimum.Therefore,part-timework, or a day's work of less than ghours s not prohibited.
Compressed Work Week (CWW)r C\AM is resorted to by the employer to
prevent serious losses due to causesbeyond his control,such as when there issubstantialslump in demand or his goodsor services or when there is lack of rawmaterials.To be an exceptiono the .eight-
hour a daf requirement,he workersmustagree to the temporary change of workscheduleand they do not sufferany oss ofovertime pay, fringe benefits or theirweekly or monthly ake-home pay (DOLEExplanatory Bulletin, July 23, 1985).
r This scheme s an alternative rrangementwherebythe normalworl<weeks reducedto less han 6 days but the total numberofnormal hours per week remains at 4ghours.The normalworkday s increased o
more than I hours withont correspondingovertimepremium.This appliesas well to40 or 44-hourworloveek irms.
Conditions of a Vatid CWWScheme(DOLEAdvisory No.02, Series ot 200411, lt is expresslyand voluntarilysupported
by majorityof the.emfloyeesaffected.2. lf work is hazardous, a certification is
needed frorn an accredited safety. organization or the firm's
safetycommittee that work beyond g hours iswithin the limits or levelsof exposuresetby DOLE's occupational safety andhealthstandards.
3. The DOLE s duly notified.
Note: REVERSION TO THE NORMALEIGHT-HOUR WORKDAY SHALL NOTCONSTITUTE DIMINUTION F BENEFITS.The reversion shall be considereda legitimate
exerciseof management prerogative,providedthat the employer.shall ive the employeesprior notice of " sucfr: . reversion rwithiil i areasonable eriodof time
Flexible Work ArrangembntsAs explained in Department Advisory No.2
9"r,.9: or 20O9 (January 29), adopiion offlexible work arrangements (fWnl isconsidered as a befter alternative than theoutright termination of the services of
employeesof the dosure of the establishrnent.The effectivity' and imptementation of "FWAshall be temporary. n addition o compressed
a. Reduction of workdays where the normalworkdays per week are reduced but
shouldnot last or more han six months.b. Rotation of Workerswhere the employeesare rotatedor alternativelyprovidedworkwithin he workweek.
c. Forced Leaye where the employees arerequired o go on leave or severaldavs ofweeks, utilizing heir leave credits f thereare any.
d. Broken-time schedule where the workschedules not continuous ut he numberof work hourswithin he daytr week s not
reduced.e. Flexi-holiday schedule where the
employeesagree to avail themselvesofthe holidaysat some otherd3ys,.,providedthat there is no diminution of existingbenefitsas a resultof such arrangement.
Twelve-HourWorkshift W OvertimeA 12-hourworkshift is validated by consentand its four-hour overtime pay becomes acontractual commitment (lnterphil Lab.Emplolees Union et al v. lrterphil Lab, lnc. etal, GR No.142824,December19,2W1).
Normal Hours of Work of Health Personnelo For health personnel in cities and
municipalitips ith a populationof at least1 millionOR in hospitalsand clinicswith abed capacityof at least100:
day for 5 days a week, or 40 hours a
week, exclusiyeof time for meals.
for 6 days or for 48 hours, but theyshall be entitled to an additionalcompensation of at least 30oloof theirregular wage for work performedonthe6'dav.
Wotk from
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Sun Fels @ollege f Aqto2011CENTRALIZEDAROPERATIONS
ir: ": Jous. t may notcoincidewith a calendar
::;
:*o€ndar Day - 24-hour period commencing
;1n- Tidnightand endingat 11:59pm. lt is
rr'*s:le for an employee to work for 2
:;ae.eat days (e.9. lf X's work schedule is- : - ' 0 p .m . o f MondaY P to 6 a .m . o f-,rslal his work day covers 2 calendar
f i f r :
ruF- 84: HOURSWORKED
*mu s tllorked lnclude:' r,il time during which an employee is-s:.iired to be on duty or to be at a
: -:scribedworkplace;
I r, t ime during which an employee is
-."-+ered r permitted o work,
I ::s[ periods of short duration during,utnrtng hours which shall not be more
:-ia1 wenty(20) minutes;andr \leai periods of less than twenty {20)
- rrutes are only a rest period of short
l--ation andare hus considered s hours* l-<eO.
a* ndples in Determining Hours Workedrs"e,c 1, Rule l, Book ll, lmplementing;lues)' r hours are hours worked which the
:-ployee is required to give to his:*cloyer, regardlessof whether or not:,-':nhoursare spent n productiveabor or-, olvephysicalor mentalexertion.
I r- employeeneed not leave he premise-s:' the workplace in order that his rest:e:od shall be counted, t being enough:ra he stopsworking,may restcompletely:.c may leave his workplace, to go:se,,vherewhether within or outside the:'rernises f his workplace.= ::re work performedwas necessary,or it:e:.efited the employer, or the employee:,:uid not abandon his work at the end of- s normalworking hoursbecausehe had-,:
replacement,all timp spent for suchrcrk shall be cqnsidered, s hours.worked- tlre work is with the knowledgeof his=-cloyer or immediate upervisor.--e
time during which an employee sractive by reason of interruptions n his*ork beyond his control shall be:r:insidered time worked either if the-rninence of the resumption of work-equiresthe employee'spresence at the:r,aceof work or if the interval s too brief to
:e utilized effectively and gainfully in the:-oloyee's own interest.
Rules on Hours WorkedA. Waiting Time
Considered s hoursworked F waiting:1. ls an integralpartof his work;2. The employee s requiredor engaged
by the employer o wait; or3. When employees requiredo remain
on call in the employer'spremisesor
so close thereto that he cannot use
the time effectively nd gainfully or his
own purpose.
not compensablebecause he isspecifically relieved fromall duty. He is merelywaiting o be engaged.
B. Working While On Call
When employee s required o remainon call in the employer'spremisesorso close thereto that he cannot usethe time etfectivelyand gainfully forhis own purpose. ,
. However, if he is not required toremain on the employer's premises
but is merely required o leaveword at
part of the job; thetime spent waiting iscompensable
dle time is not workingtime; it is notcompensable
e.g. X works as adriver. His task is todrive a truck toPampahga to loadgravel. While gravel
'rs
being loaded, heplayed mahjong andthen slept.The ime hespent playing andsleeping iscompensablebecausehe is engqged to waitfor waitirig is anintegral part of hb job.
e.g. Y works as a busdriver of Victory. Hisroute is from Manila oSantiago,eaving t 6amand arriving t 3pm.He
is completely relievedfrom duV until 9pm,when. e againgoesonduty or the retum rip toManila.His idle time is
practicedote: The
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LABOR AW
LABOR TANDARDS
consideredwaitingtime" since'thevare not
subject o the absolutecontrolof the companyduring this period, otherwise,
heir failure toreport in the assembly ime would justify thecompany to impose disciplinary measures.(Arica v. NLRC, GR No. 7B2tO,February 28,1989)
D. Travel Time
Power lnterruptions1. First20 minutess compensable.
2. Succeeding minutes notcompensable.3. lf despite the lapse of the 1"t 20
minutes, he employeesare requiredto stay in their workplaces,such time
,iscompensable.
Semestral break of TeachersCompensable hours worked apply toregular ull-time eachersonly. lt is a formof intenuptionbeyond heir 6bntrol. Univ.
of Pangasinan Faculty union v. lJniv. ofPangasinan, GR No. L-63122, Februarv20, 19U\
Lectures, Meetings,ProgramsNot countedas working ime if all thefollowingonditionsremet1. Attendance is outside of the
ernployee'segular orking ours;2. Attendances n actvoluntafy,nd
3.
-'Emplolee
does not perform anvproductive work during sucfiattendance.Sec.0 Rute , Book lt.RulesmplementingheLaborCode)
Attendancq inActivities
Labor Relations
Trainings,
H.
1. CBA Negotiations generally, notcompensable, XCEpT f:a. There is an agreement for
compensability in the parties'
GroundRules;b. There s an established racticeorpolicy allowing compensability;and
c. When it is done during regularwork hours.
Normal travelfrom home to
work which isnot work time
spent by an
employee intravel as partof hisprircipalactivity, liketravel fromjobsile tojobsite duringthe workday
Travel thatkeeps an
employeeaway fromhomeovernight
senerafiy: nolcompensablebecause t is a
normal incidentof employment
Exceptions;1. Where the
worker ismade towork on anemergencycal{ andtravel isnecessarynproceedingto theworkplace;
2. Travel isdone froughaconveyanceprovided bytheemployer;
3. Travel isdone underthe
.. +rp,eryisiot'l,'and contsol. of the
employer;and
4. Travel is.done undervexing anddangerouscircumstance
CompensabteI 0onaid-er-ea-asand must be I work timecounted as I wtren it cuts
hoursworkeci I across anI employee,s
I workdayI because it
] substitutes forI the hours that
, the employeeI should have
.I been in theI office
entitled to
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Ssn ffistu@ollegef {.sb2011CENTRALIZEDAROPERATIONS
:= , :nd the regular ightworking oursa::, but whether hey actually endered
i:-. ce in excessof saidnumber f hours.'"a: crial Shipyards nd Sfeei Corporation. l R 3 S C R A 8 9 0 [ 1 9 6 1 ] )
: , ; -85: MEALPERIODS
; - ' "s on MealPer iods: - : - d not be less han sixty 60)minutes." s non-compensable xcept: Where: - " ^
3 the so-called meal period, the:: l 'eTS are required to standbY for
:-:-gency work,or said meal hour s not
.^. of complete rest, such period is
: : ^,s'Ceredovertime(hoursworked.) (Pait:*eqcan World Airways Sysfern v. Pan:-.4can Emp;lsysssAssociation,GR No.
--",275 February 4, 1961)'?r ce less than siKy (60) minutes,but
l' ::, j not be less than twenty (20)- -ltes and the shortenedmealtimemust:* ,'rith full pay, under the following
_{ - 2 naFQ'
: Where he work is non-manual ork
.l nature or does not involvestrenuous hysical xeriion;
: ,Vhere the establishment egularlycperatesnot less than '16 hours aJ A Y ,
: 'r cases of actual or impendingernergenciesr there is urgentwork:c be performed on machineries,equipmentor installationso avoidserious loss which the employerwould' therwise uffer;
: Where the work is necessary tocrevent serious loss of perishablegoods (Sec. 7, Rule , Book lll ot theRules mplementing he Labor Code).
' ess than twenty (20) minutes, it:,.::: 'nes only a rest periodand is thus:: .-<Cered s work ime.
:{e Vlealperiodsduring overtimework isr .- ,€' to workers performingovertime or,: '::slr"r that OT work is usually or a short
:*:rc ranging rom one to three hours and tor,?:r-: 'rom the same one full hour as meal
:,i - : ' : .ay reduce he employee's T work o' : - - 1 ;
:.criened Meal Break Upon Employees'; g: i€st
i *:r tre€s may request hat heirmealperiod
:,r i-r1€fled so that they can leave work.i" : ' than the previously established, " " : -e . Such shortenedmealt ime s not
_ E X 9 t C .
Requisites:1. Employees oluntarily gree n writingand
waive he overtimepay;2. No diminutionn the salaryandother ringe
benefitsof the employeesalreadyexisting;
3. Work is not physically trenuous nd they
are providedwith adequatecoffee breaks
in the morning nd afternoon;4. Value of benefits is equal to the
compensationue hem;5. Overtime pay wil l become due and
demandablef ever they are permittedor
made o workbeyond 130Pm;and
6. The arrangements of temporary uration.
Note: The eight-hourwork period does not
include he meal break. Nowhere n the law
may it be inferred hat employeesmust ake
their meals within the company.premises.
Employees re not prohibitedroni going out
of the premises s longas they return o theirposts on time (Philippine Airtines, lnc. v
NLRC.GRNo. 132805,February2, 1999)-
ART. 86: NIGHT SHIFT DIFFERENTIAL
(NSD)
Conceptof NSDAdditional ompensation f not less han 10%
of an employee's egularwage for everyhour
of work d6ne between10:00PM and 6:@ AM,
whether or not such period'is part of the
workels regular shift.
Note: In addition o the exceptionsprovided n
Att. 82, NSD does not apply to employeesof
retail and service establishments regularlyemployingnot more han 5 workers. Sec. 1[bJ,
Rule l, Book lll, Rules mplementing the Labor
Code).
lf work done betweenoveftime work, then
10 PM and 6 AM isthe 1Oo/onight shift
ditferential overtime
.$.s.tt**: ]'t
t>
J(,/,
1982)
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LABORLAW
LABORSTANDARDS
Sample llustrations1. Without Overtime
I(0% , regularwage per hour)x no. of hours
of work performedbetween10 pm--€ aml
6:00pm-2:00am
Sfep 7: Get hourlywage rate.Daily Wage divided by number of hoursworkede . g . P 8 0 0 + 8 h r s = p 1 0 0
Step2'.Computewage between6:00 pm-2:00
am.e . 9 . , 8 h r s x P 1 0 0 = p 8 0 0
Sfep3: ComputeNSD.(1Oo/oI regularwage per hour x no. of hoursof work performedbetween 10 pm--€ am)e.g. (10o/o P 100)x 4 hrs= P 40
ht Shift Differentialvs. Overtime
Paymentorworkdoneduringhenight '10:00pm--6:00am)
Payment for the excessof the regular8-hourworK
10% of basicwage 25o/o r 30% of basicwage, e the c6e maybe
8008:00arn-S:00pm5:00 nr-12:00mn
2. With Overtime
l(1Oo/of OT wage per hour) x no. of hoursofwork performedbetween10 pm-€ aml
Sfep1:Gethourlywageate.Daily Wage divided by number of hoursworkede . g . P 8 0 0 * 8 h r s . = F 1 0 0
Step2: Computewage betweeng:00 am_5 : 0 0 p m ..g . 8 h r s . p 1 0 0 = p 8 0 0
9fgp S' ComputeOT premiumpay between5:00 m-12:00mn.
IQSy::_Yage,_perour)+ Wage,per;.hourlno.of OThoursl .g.
Sfep4: ComputeNSD.[(10o/o f OT wage per hour) x no. of hoursof
work performedbetween10 pm€ amje.g. (1O% P 125)' 2 his =p24
Note: The receipt of overtime pay wiil notprecludepaymentof nightshiftdifferential ay(NARIC v. NARIC Workers tJnion, GR ruo.e4 €I12075,May 29, 1959).
ART.87: OVERTIMEWORK
Overtime Pay - additionalcompensation orwork performedbeyondeight (8) hourswithinthe ygorkeis 24:hour workday regardlesswhether
he work covers2 calendardavs.
RationaleThe employee s given OT pay becausehe ismade to work longer than what iscommensuratelwithhis agreed compensationfor the statutoiily fixed or voluntariiyagreedhours of labor he is supposed o do (pNB v.PEMA, GR /Vo.L-30279,July 30, 1982\.
Basis for Computation of Overtime pay. Regular
Basic Wage: Includes ashwage.only, without any deductionon accountoffacifitiesprovidedby the employer Aft. 90.L V t -
o Rafes
x P 1 0 0 =
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Ssn @eis@olltge t tstn2011CENTRALIZEDAROPERATIONS
i . : : ' ,ertimeworkwas actually erformed
.:;anpan v. NLRC,GR Nos. 85122-24,
: ' : ' 28, 1991).
r:*r.,?rrld LegalBasis or Claimr'a"a' Rule:An exDressnstructionrom he
: : ,e- :snot equired.t is sufficienthat he' . r .:3 s permitted r suffered o work.
.::,: on: On restdaysand holidays, ritten' :. after office hours is required or
- - : - : to compensat ron.
, :E - ,erbal nstructiono renderovertime
:" : .a i ls overa memorandumrohibi t ing' :-r (A.L.Ammen Transpoftation o. v.t ' . : L - 17750 ,Auq1 ,1962 ) .
'q - -e Pay Integrated n the Basic Salaryi - : n' OvertimePay)" -.:3.,: iaiion between employer and
" : : ,:? that the latter's regular or basici : -:ady includeshe overtime ay s noti; agal.This s alsocalledcomposite r' t : - =ayor al l - inclusiv ealary.
:=' ,vrittenagreementknowinglyand:= , :rtered intoby employee; nd,'-:-atical result shows that agreed
:;. , ' ,,age ate and the overtimepay,*: '-:ed separately,are equal to or:-: ' : i lan the separateamounts egally
: - i
r , e' of Overtime Pay
'n:'?'2 Rule: Overtime pay cannot be, rir 1"E3xpresslyor impliedly.Any contrary
'." : ' :- rs null andvoid,as it is intended o
.. i "' a:,o'ers nd employees.
- : - r a t q '
-:- i ' le waiver s made n consideration' :e^efits and privilegeswhich may be
*:- : : -an what wi l l accrue o them in' : - . - . pay ; nd-.:rc essedworkweek.
:E =-:doyees whose positions aieli: -3. from rank-and-flleo supervisory
.., i : '31.re pay and other benefitsunder' : :.--95 Promotion produces the same
, B:-i.:aion
must be done in good faith.' .t :e.sonnel movement should not bei. ' :": io circumvent he law to deprive
- I : ,:es cf the benefits hey used o receive:l .:-T,,1'/ lncentivesAd of 1990. R.A.
Quitclaim in Relation o Overtime Pay
A quitclaimwhereby aborers gree o forego
theirbenefits uefrom heiremployers NULL
AND VOID in its entirety ince t runscounter
with Arflcle22 of the Civil Codewhich provides
againstunjustenrichment nd is contrary o
pubticpoticy. PampangaSugar Devetopme^1t'Co.lnc v. CtR, GR No. L-39387, June 29,
1982)
Sample llustrationsA. Regular WorkdaYs
fRegularbasicwage + 25q$of regularbaslc
wagel
B. Legal or Regular HolidbYs
[Holidaywage rate (20Oo/,) 30o/o f holiday
ratel
x p 1 g g l + P 1 0 0 | 1
8:00am-5:00 Pm(inclusive of t hour meal
break)
8am-5pm(8 hours)x P 1 2 5 =
Totalwaqe eamed
Sfep5:00
I
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LABORLAW
LABORSTANDARDS
9 -f"jt Daysor SpeciatHotidayslF{€st.dayr special oliday agerate 130olo)+ 30olof restdayor speciat "tid;y;;d;;i;i
Sfep7:Gethourlywage ate.
.DailyBasicWag6oivr:deOynumber f hoursworked muttiptiedOy speiiat f,"fH"V *"gJrate.
e.g. (P800+8 hrc.) 130o/o=130
|t:f,.
Computewageberween :00 am_o.uupmusing pecial oliday age ate.e .g . 8h r s . p130= p1 ,b4O
9lef 3: ComputeOT premiumpay between5:00pm-10:00pm.
It19* :NWage'per our)+ HWage erhourlx no.of OThours .g.
Step1:Gethourlywage ate.DailyBasicWagedivided ynumber f hours
workedmultipliedyrestday& speciaf oilOiywage ate.e .g . (P800+8hrs . )15Qo/o=p1S0
ltgp Z: Computewage between8:00 am_c:uupmusing pecial oliday age ate.e .g . 8h r s . p150= p1 .200
99p S, ComputeOT premiumpay between5:00 m-10:00 m[(30% HWage erhour)+ ffWageperhourJ
x no.of OThours
E. SbtreOuteaRest Day which is Also aLegal or Regular Holiday
[Restday & legal holidaywage rate + 30o/o Irestday & legal holidaywage rate (2600/0ll
D. Scheduled Rest Day whictr is also aSpecial Holidav
{l"fl.d"y & speciaihotidaywage rate (150%)+3o% frest ay&speciaih"tfi;i;;s,";:i
d:uu m 5:00 m(inclusive f t houimeal
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U' r u
&arpeila€z//e4'ed4e2OI1 CENTRALIZEDAROPERATTONS
; lr3ruble -lolidayiil rr,e r,olrdaywage rate (400o/o\ 30o/o fI ' ":: : -a; dayWage atel
- 3=. nourlywage rat'e.3r;s: Wagedividedby numberof hours
r,: -; ' i ipl ied by rest day & legal holidaya : =
E 800 * 8 hrs ) x 400o/o p 40O
- i:npute wage between8:00am-: - .s,19 speclalholidaywage rate.
: ^ns ' P400 = P 3. 200
,ll/ilr; - l:npute OT Premium pav betweenlg,ll :,r_1C 00 pm.
',, , l-{/y'3ge-per hour) + DHWageper, - : c f OThour se . g .
benefits. AsianTransmissionCorp.v. CouttofAppeals, 425 SCRA 47e [2004]). (Source:
SuggesfedAnswers to Bar Exam Questions nLabor Law and Social Legislation,UP LawCenter; 2Oa5Bar)
ART. 88: UNDERTIME NOT OFFSET BYOVERTIME. Offsettingof undertimework by overtime
work whether on the same or any otherday is prohibitedby law.
r Permission iven o the employeeo go onlearleon some other dayrbf he week shall
not exempt he employer rom paying headditional ompensation.
RationaleThe undertime hours represent only theemployee'shourly rate of pay while theovertime hours reflect both the employee'shourly rate of pay . and the 3ppropriateovertime premium such that, not being ofequal value, offsetting the undertime hoursagainst the overtime hours would result in
undLedeprivationof the employee'sovertimepremium (Nt4lSA v. NWSA ConsolidatedUnions, GR Nos. L-26894-96, February 28,1969).
The proper method should be to deduct theundertime rom the accrued eave, f any, butpay the employee he overtime pay to whichhe is entitled. This method also obviates heirregular schedule that would result if theovertime should be set off against theundertime
or that wouldplace
theschedule
forworkinghours dependenton the employee.(National Wateworks and SewerageAuthorityv. NWSA Unions 11 SCRA 766 [1964n
800
-r,-a,rrlg Kagitinganand Good Fridav aref,im,rrc he 10paid regular. holidays nder
4{ }d of the Labor Code,.How much will.w' rCoyee receive when both hotidavs:ftr' r ir]e Sameday?
xxx xxx xxx
srm[ir;ieewill receive200o/o f his regularur,me rhen both regularholidays all on
,iffirrTeay and he does not work. The lawss :ai he shall receivehis regulardailyr:r eeoh regularholiday.The employee
r{,ra'€ 10o016or Araw ng Kagitinganand
r:r tuod Friday.f he workson hatday,r: s.r3eC to 4O0% of his regular daily
April9(Araw gKagitinganat hesame imeGood
Friday)- "' .5:00 m 10:00 m'
ART.89: EMERGENCYOVERTIMEWORKGeneral Rule: Employees cannot becompelled to render overtime work against
When favorable:f€ruuse, there will be dimunitionof
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LABOR AWLABOR TANDARDS
wnereperformancer qualityof work isdependenthereon.1Sec.O,'Rute,-Book//1Ru/es mptementingne UOoi Coaei-
ART.90: COMPUTATIONF ADDITIONALCOMPENSATION
RegularWageshall ncludd ashwageonly,withoutdeductionon accountof facilitiesprovidedby the employer,or. purp*""'-otcomputing oT and other iooitiln"rremunerationsnChapter.
"-
CHAPTERI.WEEKLYRESTPERIOD
ART.91:RtcHTTOA WEEKLYRESTDAy
Durationl"i,tbt tess than twentyfour (24)consecutive hours qfter"u"rv "i"
.lotconsecutiveormalworkdays.
..
ote: ALL establishmentsand.enterprisesmay.operater open or businesi";
Sfi;;;"andnotidays rovidedhJ iil;;;;d;;"grven he weekty est dayano tfie,ilieiitspfoylt"d nderhe aw sec.2,-R;;tei'iixtll, tRRof LC\
Who Determines:The.employerdeterininesand schedules hey"Tl,::l "J_"-o subjecto ne o[owinll
"I volecttvebargaininggreement;z.
X:l-._3nd.. regulations ssued by the^
pecretaryof Labor; ndr. Emptoyee'sreferencebasedon religiousgrounds.
L:}.-yn"nsuchpreference iil prejudiceheD.usrnessperations f the empllG;;il;;
other remedialmeasrweekryJ *;;;i'f" 3li"3lilF?i13"ithee.mptoyee'shoiceor"t
t;;;itr"'il;"";monthSec. , Ruten. aooxi,-tni';;i;i"-
$lT.g $rttENtspLDyERrAyREourREWORKONRESTDAY
GeneralRule:Theemployer lay.not,rgqujretheemployeeso *ork on a restday.
Exceptions:UPANAC)1.
11""::" of Urgentworkto be performedon the machinery, equipment, oirnstallation:
2. To Preventossor.damageo perishablegoods;
3.lL-
o"u. of Actual or impendino
emergenciesausedby force^ilirri iZprevent loss of life and propl,rtv,-oiimminentangerto rnrrcvr
4. Where he Natureof the work requirescontinuousperationsnd he stoppagefwort(
may esultn rreparablenlury itossto theemployer;5. In theeventof Abnormal ressure f work
due to specialcircumstances,here heemployerannot rdinarilye expeciedoresorto othermeasures:nd
6. UnderotherCircumstancesnalogouso- the foregoing as determined6V the
Secretaryf Labor.
Note: The failure to w6rk during an
emptoyee'sest day does not justify theotsctpltnaryanction f outright ismissalromemploymentas such is so severe aconsequence,more so when justifiablgroundsexist or the said failure. RemercGarmentsManufaduring . Ministerf Gtii aEmployment,GR.No. L-56176_77,eiriar427,1985). Whenan employee olunteerso workon
hisrestdayunderother ircumstances,emay be allo\,vedo do so; providedhe€xpressesuchdesire nwritingandhe ispaid the additional compensationorworkingon hisrestday.
ART.93:COMPENSAT|ONORRESTDAy.suNDAY,Oq HOLTDAYWORK
PremiumPayor DifferentiatCompensation- additional ompensationor work renOeieJb.Vlg employee n dayswnen normatty eshouid not be working such as sp6ciJholidays ndweekly estdays.
Note: This article does not prohibit as{ipulationntheCBA orhigherOen'etits.Formula o ComputeWag-son notruavslMemorandumCircularNo.7, Senesof iOO+11. For REGULARHOLIDAYS,ne toilowirlg
rules
as
Public, and
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$sn &etrs@ollege fLab2011CENTRALIZEDAROPERATIONS
a. lf unworked No pay,unless here s afavorablecompanypolicy,practiceor
collectivebargaining greement CBA)grantingpaymentof wageson specialdayseven f unworked
b. lf workedi. 1st 8 hrs.- Plus30% of the daity
rateof 100%ii. Excess of 8 hrs. - plus 30% of
hourly ateon saiddayc. Fall ing n the employee'sestdayand
if workedi. 1st 8 hrs.- Plus50% of the daily
rateof 100%ii. Excess of 8 hrs. - Plus 30% of
hourly ateon saidday3 For those declared as SPECIAL
WORKINGHOLIDAYS,he foilowing utesshallapply:
' . For work performed,an employee sentitled only to his hssl6 rate. Nopremium pay is requiredsince workperformedon said days is consideredwork on ordinaryworkingdays.
List of Special DaysA. National
1. A/l Sarnf'sDay - November12. LastDay of the Year- December313. Ninoy Aguino Day - Monday nearest
August21 (R.A. 9492,Juty 25,2007)4. Otherdaysdeclaredby law
B. LocalThose declaredby law or ordinance e.g.
Makati Day for Makati City onty\
Note: In the event the holiday falls on aWednesday, he holidaywill be observed onthe Mondayof the week lf the holiday alls ona Sunday, he holidaywill be observedon theMonday hat follows (R.A. 9492).
CHAPTER II.HOLtDAYS, ERVICEINCENTIVE EAVESAND SERVICECHARGES
ART. 94:.RlGFlTTO HOLIDAYPAY
Holiday Pay - a day's pay given by law to an
employee even if he does not work on a
regularholiday. t is l imited o the twelve 12)
regular, also called legal, holidays listed by
law. The"employee
should not have been
absent without pay on the work,ng dayprecedinghe regularholidaY.
Note: ln addition o the exceptionsprovided n
Aft. 82, Holiday PaY does not aPPIY to
employees f retailand serviceestablishmentsregularlyemployingnot more than 10 workers(Sea 1, Rule V, Book lll, IRRof LCl.
List of Regular Holidays (NM€ALIN-
CRE'zB)as amended by RA 9492, JulY 25'
2007
Rate of Additional Compensation for Workon a Rest Day,Sunday or
Work on a scfieduledrest day
3006of regularwage
No regularworkdaysand nospecific estdays
30olo f regularwagefor workperformed nSundays ndholidaYs
Workon Sundaywhen tis his establishedestoay
30016f regularwage
Work on specialholiday 30chof regularwage
Workonspecial olidayfalling nscheduledestday
50%of regularwage
Work on regularholidayfallingon schedulecles tdav
260% of regularwage
Compensable ven
enumerated by tteLaborCodeandspeciallaws
law or ordinancemayprovideor otherspecialholidays
F
9.10.4 a
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LABOR AW
LABOR TANDARDS
Note: There must be no distinctionbetweenMuslims and non-Muslims with regard topayment of benefits for Muslim Holidavs:wagesand otheremoluments re laiddown-Oylaw and not based on faith or religion (San
t_oye corp v. CA, GR No. 14677d, taiuary30,2002).
Rylg. on.Compensability: compensable
whetherworkedor unworked ubject o certainconditions
r Legalholiday allingon a Sundaydoes notcreate an additional
workdaynor createalegal obligation or the employer o pavextra,aside from the usuatnotiOav av toits monthlypaidpmployees.
Holiday Pay ot Monthly paid EmployeesThe divisor assumes an important role indeterminingwhether or not
'hofiJayp;t ;;
alregdy inctuded in the monthlv' baiOempfoyee's salary. (producers Bank of theHnnppnes v. NLRC, GR No. 10O701,March
28,2001)a. As,a general rule, for the companywith a6-day working schedute, n"
'oiui"oiiiiq
alreadymeans hat the legal holidaysareinctuded in the montht pay ;f il;employee. The divisor is airiveO at Ovsubtracting ail Sundays from tne iot_jt
. numberof calendarOay-sn a year.b. As a generat rute for
"compin/ with a A
day working schedule, tne Oivisor mtmeans that the holiday pay is alreadv
inctudedn the monthiy'"ir"rvi-i;;employee
uJ9on Holidaypayof Teaching ersonnelPaidPerLectuie Hour
Itylvmemberspaid y the hour y virtueof
rner rcachingantracts:1. They are NOT entifled o paymentof
holiday aybecauseheyarep.i'Jonfu oiworkactually one.Since egular "fi6avsare knownto both schooi and facuitvlngmpeF.as
noclassdays.';.e11aintyh6
latter do,'not exfect payment:'for'saidunworked ays,and this-wasclearlv nInelr mindswhen they entered nto theteaching ontracts.
2. Theyare however ntifledo theirreqular 1y1tv
rat" on days dectared ""E;i;ioldaysor whenclasses re calledoffor
shortenedn account f typhoons, *0".rallies,and the tike
Oecduseni tacufiv11IF atthough orced to tafe a resiooesnotearnwhatheshould arnon thaiday. (JoseRizatCoilegeNLRCGRN;.
Double HolidayPay(i.e. Araw ng Kagitingan and Good Friday faltson same
day)1. 200o/o f the basicwagea. Entitled even if said holiday is
unworkedb. To give employeeonly 100o/o ould
reduce he numberof holidaysunderD.O.No.3
2. 400% if he worked on 2 regular holidaysfall ing n hesameday
3. 520o/o t the basicwage if he worked on 2regularholidays alling ofi the same day
and at the same ime, allingon scheduledrest day(Asran TransmissionCorporation.V. CA, GR No.144664,March 15, 2004.)
SingleHolidayRuleProvided hat the employee:1. Worked;2. Was on leavewith pqy; or3. Was'on authorizedabsence on the dav
priorto the regularholiday.
Sucesive RegularHolidaysTo be entitled o two (2) successiveholidays,the employeemust:1. Be present on the day immediately
precedinghe firstholiday;OR2. Be on leavewithpay.
o Otherwise, he must work on the firstholiday o be entitled o holidaypay on thesecond regularholiday (5ec.10, Rule lV,Book lll, IRRof LC| '
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Ssn Sebs@oltegef etD2011CENTRALIZEDAROPERATIONS
Absent
withpay
Regular
Holiday
Regular
Holiday
w/out9ay
RegularHoliday
RegularHoliday
No - Both
AbsentMoutpay
KegularHoliday
YES- ButOnly ToTheHolidayPay On
Effects of Business Closure on Holiday Pay
lf regularholidayoccursduring:1. Temporary or periodic shutdown and
temporary cessaf,bn of work of anestablishment the regularholidays allingwithin he periodshall be compensated.
2. Cessaflon of operation of an enterprisedue to lrrsiness reyerses as authorizedbythe Secretary of Labor - thc regularholidaymay not be paid by the employer(Sec. 7, Rule lV, Book lll, IRRof LC).
ART. 95: RIGHT TO SERVICE INCENTIVELEAVE SrL)
Conceptof SILFive (5) days leave with pay for everyemployeewho has renderedat least one (1)yearof service.
One {1} Year of Service - servicewithin 12months, whether continuous or broken,reckoned from the date the employee startedworking including authorized ahences andpaid regular holidays unless the number ofworkingdays n the establishment, s a mafterof practice or policy or as provided in theemployment ontract, s less han 12 months.
SIL Does NOT Apply to the following:(GoDMan-FV-Ben10)1. Employees f the pvernment;
2. Domestic helpers and persons in thepersonalseMce of another;
3. @agerial employeesas.defined n Book3 ; ' i . ' . . , " ' ' l ' : ' - ' : i l f i : : " ' r ' : , r , ' : ' . ' ' . ' : ' .
Field personnelwhose performancesunsupervisedr hosewhoarepaida fixedamountor performingork rrespectivefthe time consumed n the performancethereof;Thosealready njoyinghe said@efits;Those already enjoyingyacation leavewithpay or at east5 days;andThose emptoyed in establishmentsregularly employing less . han 10
employees; Sec. 1, Rule V, Book lll,RutesmplementingheLaborCode)
Note: Employees ngagedon task or contrad
basis or paid on purelycommissionbasis arenot automatically xempted rom the grant ofservice ncentive eave unless they fall underthe classificationof field personnel. Thephrase'other employeeswhose performance:s unsupervised y the employer', In Sec*lont(D), Rule V, Baok lll o;t the lmplementingRules and Regulations of the Labor Code,leryes as an amplificationof the definitionoffield personnelunder the Labor Qode. (AutoBus Transport Systemg Iffc v. Bautista, GRt'lo.
1ffi367,May 16, 2005)
lonversion to Monetary Equivalent....$.t,L,isOMMUTABLE..e.. convertibleo cash'
" not usedor exhaustedat the end of the year.ihe cash equivalent is aimed primarily at:rncouraging orkers o work continuously ndwith dedication o the company.
'jote:Basis of conversionshall be the salary
;te at the date of commutation. he availment,::d commutation of the service incentive
ave benefit may be on a pro-rata basis (No.Vl [C], DOLE Handbook on Workers'statutoryt.tonetaryBenefit).
r An employee,who is illegallydismissed, sentitled o seryice ncentive eave benefitscomputed one year from the date shestarted working until the date of her actualreinstatement. (lmbuido v. NLRC, GRNo.114734, March31, 2AOA)
.. Article 291 of the Labor Code is not a
prescriptionof a period of time for thecomputation of , money claims but is aprescription of filing an action uponmonetaryclaims from the time the causeof actionaccrued.'Theemployeemay usehis service incentive leave benefits asleave days or he may collect its monetaryvalue. To limit the award to three years ist o u
6.
outsidewhose
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LABOR AW
LABOR TANDARDS
their work cannotbe ascertainedwithreasonable ertaintyand thus are not
under the direct supervision of theemployerare not entifled o SIL (LaborCongressof the philippines.v. Llt-RC;
Employees with Salaries above MinimumWageThe difference between the minimum wageand the actual salary received bv theemployeescannot be deemed as their 13thmonth pay and service ncentive eave pay assuch difference s not equivalent o or'oithesame
importas the said benefitscontemplatedby faw (JPL Marketing promotions v. Ciurt ifAppeals,GR No. 151966, uty,,8.^2005)
Vacation and Sick LeaveNot statutorily required; matter ofMANAGEMENTDTSCRETTONr a procruct fcollectivebargaining greement.
General Rule: Benefits are non_cumulativeand non-commutative; ust be enjoyedby theemployeewithin 1 year, otherwise, ney
areconsideredwaivedor forfeited.
Exception: When the labor contract or theeslablishedpracticeof the employerprbvidesotherwise.
and conditionsof employmenton accountof his/herstatus.
. A change n the status or circumstance fthe parentclaimingbenefitsunder his Act.such that he/she is no longer left alonewith the responsibility f parenthood, hallterminate his/her eligibility for thesebenefits (Solo parent's Welfare Act of2000).
Note: Unutilized parentSl leave is notconvertible to cash unless otherwise
agreed.Non-complianceWth the law mavmake the employer liable for Oamagei(Azucena,2aO\.
Battered Woman Leave (RA. No. 9262 _Anti-Wolence Againsl Womq, and Their
lh-lldrc.n Actof 2d)1, March A, 2(n1,A femaleemployeewho is a victimof violence(physical,sexual or psychological)s entifledto a paid leave of TEN DAYS in addition oothdi' paid ,leaves. The leave is extendible
when he necessityarises.The employeehasto submit a certification from tie'punongbarangay, kagawad, prosecutor or clerk olfcourt that an actionunder R.A. No. 9262 hasbeen iledanfl is pending.
Maternity and paternity Leave (Seedlscussion under SSS, paternity Leave Actand Aft. 133).
ART.96: SERV|CECHARGES
ConceptAll
.service charges collected by hotels,
restaurantsand similar establishments halibe distributed s follows:1. 85o/ofor all covered employees to- equallydistributed mong hem2. 15o/otor
be
t t oand
Parental Soloparent)Leaveo Nol more than SEVEN (7) WORKTNG
DAYS EVERYYEAR is Sirjnteo-io'anvsolo.parentemployee hd has renaeieiservtce fat eastone 1)year.
. N9employerhalldiscriminateoainst nvsotoparent mployee ith espec-ioierml
Mandatoryegallyrequired nderAft. 95,
LC
from:employer,sdiscretionaryolicyor
fromCBA
Intendedo alleviateheeconomic ondition ftheworkers or it acts
as replacementorregularrrcomehat
wouldnot beearnedduring uch nstance
Intendedo.affordlaborera charrceo geta much eededesttoreplenishiswomoutenergies ndacquirenewvitalityo enable
him o effcienilyperfonnhis dutiesandnotmerelyo givehim
additionalahry
Cannot ewaived
':iE,opportrne i4e,
othenarise.ileniewouldequateowaiver,samebeinga mereconcession r actof
of
which
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5an Sela 6otlegeofLsb2011CENTRALIZEDAROPERATIONS
Distribution
The shares referred to herein shall bedistributedand paid to employees not lessthan once every 2 weeks or twice a month atintervalsnot exceeding16 days. (Sec.4 Rule
Vl, Book lll, IRRof LC )
Rule in case of Abolitionr In case the service charge is abolished,
the share of the covdredemployeesshallbe consideredntegrated n theirwages.
. The basis of the amount o be integrated
shall be the average share of eachemployee for the past 12 monthsimmediately preceding the abolition orwithdrawal of such charges. (Sec. 5 Ru/eVl, Book lll, IRRof LC)
Pooled TipsWhere an establishment does not collectservicechargesbut has a practiceor policyofpooling ips given voluntarilyby its customers,the pooled tips should be monitored,accounted for and distributed n the same
manner as . the service charges (DOLEHandbook on Workers' Statutory MonetaryBenefits,2@6 Ed.).
TITLETWO: WAGES
CHAPTER . PRELIMINARYMATTERS
ART.97:DEFINITIONS
Agriculture - includes farming in all its
branches,and, among other things, includesthe cultivationand tillage of soil, dairying, heproduction, ultivation, rowingand harvestingof any agricultural and ,. horticulturalcommodities,he raisingof livestock r poultry,
and any practices performedby a farmer on afarm as an incident o or in conjunctionWthsuchfarmingoperations,but does not includethe manufaduring or processing of sugar,coconuts,abaca, obacco,pineapples r otherfarm proclucts.
. i r - ' : .Wage- the remuneration r earnings,howeverdesignated,capable of being expressed interms of money,whether fixed or ascertainedon a time, task, piece,or commissionbasis orothermethodof calculatinghe same, which spayableby an employer o an employeeundera written or unwritten contract of employmentfor work done or to be done or for servicesrenderedor to be rendered'and ncludes hefair and reasonablevalue, as determinedbythe Secretaryof Labor, of board, lodging, orother facilities customarily urnished by theemployer o the employee.
Fair and Reasonable Value - shall not
includeany profit to the employeror to anypersonaffiliatedwith he employer.
Fair Day's Wage for a Fair Day's Labor -
("No Work,No PaYPrinciPle")lf there s no work performedby the employee'
there can be no wage or pay unless the
laborerwas able, willing, and readyto work
but was illegally locked out, suspended or
dismissed r otherwise llegallypreventedromworking (Aklan Electric Codp. v. NLRC, GR
No. 129246,January 25, 20@)
Equal Payfor Equal WorkEmployees olding he same positionand rank
are presumedto'be perfornringequal work.
The rule equal pay for equal work applies
whether the employee is hired locally or
abroad (lnternational School Alliance of
Educators v. Hon. Quisumbing, GR No.
128U5, June 1, 20O0).
Wage or Salary includes:1. Commission2. Facilities3- Commodities/Supplements
Commission - direct remuneration eceivedby an agent, salesman, executor,broker, or
workers and denote a
higher grade ofemployment
skilled or unskilledmanual abor
is not exempt fromexecution, garnishment
or attachment (Gaa v.CA, GR No. L-44169,December3, 1985).
Under Article 1the Civil Code, it b notsubject to execution,garnishment orattachment except fordebts related to food,clothing, sheher andmedicines.
se$i. Ese-forbutartithethe
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LABORLAW
LABOR TANDARDS
3. The facilitiesmust be chargedat fair andreasonable value (Mabeza v. NLRC. GR
No. 118506,Aprit 18, 1997).
Supplements - constituteextra remunerationor special privilegesor benefitsgiven to orreceivedby the laborersover and above theirordinaryearningsor wages.
6. Workers of a Barangay Micro Businessenterpr ise R.A.9179, November
132002)
Note: For a retail/service stablishmento beexempted rom the coverageof the minimumwage taw, it must be shown that theestablishments regularlyemployingnot moretnan ten (10) workers and had applied forexemptionswith and as determined by theappropriate Regional Board. (C. planasCommerciat v- NLRC, GR N;. 144619November 11, 2@5)
CHAPTER I. MINIMUMWAGERATES
ART.99: REGIONALMINIMUMWAGES
Minimum Wage - lowestbasicwage rate ixedby law that an employer can pay hisemployees.
Ability to Pay lmmaterialThe-employer cannot exempt himself from
liability to pay minimum wages because ofpoor financial conditionof the company; hepaymentof minimumwages is not dependentgl t " emptoyer'sabitity o pay (De Rachov.(unicipality .of iligan, GR
-Aio.L_2354i,
January2, 196e)
Estoppel Not ApplicableThe acceptanceby an employeeofthe wagespaid him without objec{iondoes not give ris6 toestoppel precluding him from suing for the
difference between the amount received ahdthe amount he should have received pursuantto a valid minimumwage law where it does notappear hat the employerchangedhis positionto his own prejudice.
e Foods or snacks or other convenienceprovided by the employer are deemedsupplements f they
are granted for theconvenienceof the employer. The criterionIn making a distinction between asupplementand a facility does not lie inthe kind but in its purpose. Mayon Hotel&Restaurantv. Adana. GR N;. iSl\s+, Uay16,2@5)
Gratuity - something given freely or withoutrecornpenseto reward employees who hiverendered satisfactory and efflcient service tothe company. lt does not form part
of thewage
Allowances - amounts of money, which arenot
.9art.. of wages, but are' given i;consideration of certain expenies lik;transportationand representation.
ART.98: APPLIGATIONoF TITLE
General Rule: Tifle on Wages appties o al lemployees.
Exceptions:
1 F.armenancyor leasehold;2. Householdor domestichelpers;
J .tlgqeworkers engaged n needte_work;4. Workers employed in any establishment
outy registeredwith the NationalCottaoeIndustryDevelopmentAuthority t f.fnCfOiland
5. Workers in duly registered cooperativeswhen so recommendedby the eureiu of
Cooperative Development upon approvalbythe Sec.ofLaboC
o The employer is under no obligation toimd across theboard.
When
The1. Thepolicy
Items of expensenecessary tor the
laborer's and hisfamily's existence andsubsbtence
Constihrte extraremuneration r specialprivileges or benefts
given o or receivedbvthe laborers over aniabove thejr ordinaryearnings ndwagg-f
'
Part of the wage
longperiod;
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Sun Sebe@ollegef Lelo2011CENTRALIZEDAROPERATIONS
2 The practice s consistent nd deliberate;
The oractice is not due to error in theconstruction r application f a doubtfulcl rdifficultquestionof law; andThe diminution r discontinuances done
unilaterallyy he'employer.
General Rule: Nothing in the Labor Code
shall be construed o eliminateor in any way
diminish supplements,or other employeebenefits being enjoyed at the time ofpromulgation f this Code.
Benefitsbeing givento employeescannot betaken back or reduced unilaterally by the
employer because the benefit has becomepart of the employmentcontract, written or
unwritten.
Note: The SG, in Arco Metals v. SAMARM-
NAFLU, G.R. No. 17O7U, May 14, 2008,held
that, it may be safely concluded that theproper legal bases for the invocationof theprinciple hat any benefitor supplementbeing
enjoyed by employees cannot be reduced,discontinued r eliminated y the employerare
the ollowing:i. Express terms of an employment
agreement;2. Company practice which refers to the
implied terms of an emPloYmentagreementwhich the employerhas freely,voluntarilyand consistentlyexetended o
. its employees and thus cannot bewithdrawn exceptby mutual consent of thecontracting arties;
3. The Conslitution(Sec. f 8 Art ll and $ec. 3Art.Xlll): and
4. Aft.4oftheLaborCode
Exceptions o the Non-DiminutionRule(CoNWaB RcP)1. @rrection of error2. $egotiated benefits3. Sge ordercompliance4. penefltson reimbursement asis
5. Beclassificationofposition :, j . -.
6. Contingent eneftts f conditional dnus7. Productivity ncentives
Bonus - amount granted and paid to anemployeefor his industry and loyalty whichcontributed o the success of the employer'sbusinessand made possible he realizationofprofits.
General Rule: Bonus s not demandableas amatter of right. lt is a managementprerogative, given in addition to what is
ordinarilyreceived by or strictly due to the
recipient(Producers Bank v. NLRC, GR No'
10A7U, March28,2001).
Exceptions:l When it was promised o be given without
any conditions mposed or its payment n
whichcase t is deemedpartof the wage;
2. When it has ripened nto practice Marcos
v. NLRC,GR No. 111744,SePtember8,
7995).
13th Month Pay or lts Equivalent (See
dlscussionunder 1fn-Month Pay Law)
Additionalncomebasedon wage requiredbyP.D. 851 which is equivalento 1/12 of the
total 'basic salary' earned by an employee
withina calendar ear
Note: For employees eceiving egularwage,
tfie term "basic salary" does not mean the
amountactually eceivedby an employee,but
1112 f their standardmonthlywage multiplied
by the length o-f heir service within a given
calendar ,year. The payments for sicK
vacation, and maternity leaves, nightdifferentials,holiday pay, and premiums for
work done on rest days and special holidays
are excluded rom the computationof "basic
salary". (Holda Pltils., lnc. v. Samahan ng
Malayang Nlanggagawa sa Honda, GR No.
145561, une15,2005)
. Everyemployee eceivinga commissionn
addition o a fixed or guaranteedwage or
salary s entitled o a thirteenthmonthpay'
which must E 1112of their total earnings
during the calendar year. (PhilippineAgricultural Commercial and lndustrial
Workers lJnion v. NLRC, GR No. 107994,
August14, 1995)
than December24.
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LABOR AWLABOR TANDARDS
9:1ryln..for the ptightof the working masses.(PD 851)
Pro-Rated13thMonth payAn employee who has resigned or whoseseryiceswere terminatedat any time beforethe paymentof the j3h month pay is entifledto this monetarybenefit in proportion o thelength of time he worked during the yearreckoned rom the time of his resignationorterminationromservice.
Commissions in Relation to 13thMonth pay
1. The salesmen'scommissions,comprisinga pre-determinedpercent of the sellingprice of the goodssold by each salesmanlwere properly INCLUDED in the term"basic salary' for purposesof computinqtheir '13'
month pay. (phiiippin-eDuplicators, nc. v. NLRC.GR No. t tb:OOa,February 15, 1995)
2. The so-called commissions paid to or1e9ei1ed by medical representative ofBoie-TakedaChemicalsor by the rank andfile
employees ofphilippine
Fuji Xeroxwere excluded rom the term "basicsalaMbecause these were paid
""PRODUCT]VITY BoNUSEd'. Suchbonuses closely resemble profit-snirlngpayments and have no clear, directlnecessaryrelation o the amount of work
3:ct alUdone by each ndividualemployee.-
(Boie-Takeda Chemicals, lnc. v.'Oe taSerna, GR Alo. 92174, December 1O,19e3)
Productivity Incentives1. Kind of bonus hat comes rom productivity
gain;Z
flmgto
.instituteproductivityat companylevel and the sharingof productivity'gain
^betweenemployers nd employe"";
"riO. Natureof salarybonus s proportionateoincreases in current
'productivity
(Productivity lncentives Act of'1ggT,
R.i.69711
2. Pakiaw or Takay - works awav from
the employer,s ork premises nd arenot direcfly supervised bV theemployer.
B. As to Rate of payment
1. Those paid piece rates as prescribedin PieceRateOrdersby he DOLE.
2. Those paid output rates which areprescribedby the employerand arenotyet approvedby thqDOLf.
Benefits Payable to piece_Rate Workerswhose Work is Direcfly Supervised by theEmployer
].Applicable tatutoryminimumdaily ate,
2. Yearly service incentive leave of hve Oavswith pay;
3 Nightshiftdifferentiat ay;4. Holidaypay5. Mealand restperiods;6. Overtime pay(conditional);7. Premium pay(conditional);8. 13smonthpay;anO
9. Otherbenefitsgrantedby law, ndividual rcollective bargaining agreements orcompanypolicyor practice.
Note:The rulqs mplementinghe LaborCodeon NSDand SIL DO NOT appty o emptoyeesyh9:e time and performances unsupervisedby the employers, inctuding those who areengaged on task or contract basis, purelvcommissionor those who are paid a'fix6damount or performingwork irrespectiveof the
timeconsumed n the performancehereof.
CHAPTER tI.PAYMENTOF WAGES
ART.102:FORMSOF PAYMENT
WorkersPaidon piece-RateBasisThosewho are paid a standard mount orevery pieceor unitof work producedhat ismore
.or less regularly replicated,without:S_3fd
o the time spent in producinghesame.
Categoriesof piece-RateWorkersA. As to Presence f Control
1. Piece rate worker _ works direcflyunder the superuision of theiremployer
order
1 . C
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2OI I CE}TTRALIZEDAROPERATIONS
Necessary because of special
circumstances as determined by theSecretaryof Labor;Stipulatedn the CBA;orWhere the following conditions are met:(1PRc)a. There is a bank or other facilityfor
encashment within a radius of fkilometer from he vrorkplace,
b. The employer,or any of his agentsorrepresentatives,oes not receiveanypecuniary benefit directlyor indirectly
from he arrangement;c. The employeesare given leasonable
time duringbankinghours o withdraw
theirwages from the bankwhich time
shall be consideredas compensable
hours worked if done during working
hours:ancld. The payment by check is with the
written gonsent of the emploYeesconcerned if there is no CBAauthorizing he paymentof wages by
bpnk checks (National Federation ofLabor v. CA, October 19,2@4\.
ART.103:TIMEOF PAYMENT
GeneralRule:' At leastonce every wo weeks,or
2 Twice a month at intervalsnot exceeding
16 days.
Exceptions:
' ln case of force maieure or othercircumstances beyond the employeis
control, payment must be made
immediately after such' occurrence hasceased.
2 lf engaged o performa taskwhich cannot.
be completed in 2 weeks and in the
absenceof CBA or arbitration ward:a. Payment shall be made at intervals
not exceeding 16 days, in proportionto the amount of work completed;
b. That final seftlement is made uponcompletibnof the work
ART. IO4:PLACE OF PAYMENTGeneral Rule: At or near the place of
-rdertaking.
Exceptions: (DFA)' When payment cannot be effected at or
near the place ,of work bf reason ofg[eterioration of peace and order
conditions, or'by
reason of actual orimpending emergencies caused by fire,
flood or other calamityrenderingpayment
mPossible;
2. When the employer provides for lree
transportationo the employeesback andforth;and
3. Underany other3nalogouscircumstances-
Prohibition: No employer shall pay his
employees in any bar, night or day club,
drinkingestablishment,massageclinic, dance
hall,or othersimilarplacesor in placeswhere
games are played with stakes of money or
thingsrepresentingmoney except n the case
of personsemployed n said places. (Sec- 4'
Rule Vttt, Book lll, Rules lrfiplementing the
Labor Code)
Requisites or Payment thru Banks {WEO)1. There must be written permissionof the
majorityof the employeeS oncerned n an
establishment:2. The establishmentmust have 25 or more
gmployees;and3. The establishmentmust be locatedwithin
gne kilometer adius o the bank {Sec. ZWage Rationalization Act).
Note: Payment through an ATM is allowed,
providedhe followingconditionsare met:
(WRAP-EDeR)1. The ATM system of payment is with the
'gritten. consent of the emPloYee
. Cbncerned:2. The employee are given easonable ime
to withdraw their wages from the bank
facilitywhich, if done duringworkinghours,
shall be considered s compensable ours
worked:3. The system shall allow the employee to
receivetheir wage within the period and in
the amount prescribedunder the Labor
Code;4. There is a bank or ATM facilitywithin a
radiusof 1 km. from he workplace;
5. Upon the request of the concerned
emptoyee, the employer shall issue a
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ART. 105;DIRECTPAYMENTOF WAGES
GeneralRule: Wagesshallbe paiddirecflyothe workers o whom hevare due.
Exceptions:1. Payment through another person
a. In case of force majeure renderingsuch payment mpossible rovided aidperson s underwrittenauthoritygivenby the worker or the purpose;
b. When authorizedunder existing law.including payments for insurance
premiumsof the employeeand uniondues where the right to check-offhasbeen recognizedby the employer inaccordancewith a CBA or authorizedin writing by the individualemployeesconcerned.
2. Payment through the Heirs of theWorkerIn case he workerhasdied,employermaypay wages of the deceased worker to the
heirs of the latterwithout he necessityofintestateproceedings.
Procedure:a. Claimants shall execute an affidavit
attesting their relationship to thedeceasedand the fact that thev arehis heirs, o the exclusionof all others(Atfidavit af Nextof Kin\:
b. In case of a minor heir, affidavitshallb executed on his behalf by his
naturalguardianor nextof kin;c. Affidavit shall be presented to theemployer who shall make paymentthrough he Secretaryof Labor or hisrepresentative,
d. The representativehallac.tas refereein dividinghe amountpaidamong heheirs;and
e. Payment of wages under this Article shall absolve the emploler of anyfurther liability with respect to th6
. amount paid. (Sec. 6, Rule Vllt, Booklll, Rules lmptementing . the , Labor :Code)
3. Payment through a family member ofthe worker's famityWhere the employer is authorized inwritingby the employee o pay his wagesto a memberof his amily. Sec.5[b])
-
Summaryof Lqgal prohibitions on Wages1. Paymentof wages n non-cash orm:2.
layment of wages n nightand day clubs,barsand othersimilarplaces;
4. Non-interferencey the employersn the
employees'dispositionof theirwages.
ART. 106: CONTRACTOR oRSUBCONTRACTOR
Types of Contrac6rs under the Law1. Job Contracting or Subontracting - an
arrangementwherebya principalagrees oput out or farm out with a contractor.orsubcontrac{or the performance or
ctlmpletion of a specific job, work orseryicewithin a definite or predeterminedperiod, regardless of whether such job,work, or service is to .be performed orcompletedwithin or outsidethe premisesof the prilcipal.
Existence of Trilateral RelationshipUnder this legitimate contracting, thefollowingCONTRACTSexist:a. Contract for specific ,;ob, work or
service between he principaland thecontractorlsubcontractor; nd
b. Contraot of employment petween thecontractor/subcontractor and itsworkers.Hence, he PARTIES nvolvedare.i. Principal;
of Rules on P
Prohbited-. romissoynotes, ouchers,coupons, okens, ickets,chits,or anyotherobjectother han egal ender.9nce every tlvo weeks or twice amonth at intervals not exceeding 16
onhis
to itsfree
of
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i l l
t;t
Ssn Sebs6o[ege of ["sb
2011CENTRALIZEDAROPERATIONS
and machineries, ork premises
and othermaterials ecessaryntheconduct f hisbusiness;, c. The egreement between the
principal and contractor or'
subcontractor assures thecontractualmployeesntitlementto all labor and occupationalsafetyand health tandards,reeexerciseof the right to self-organization, ecurityof tenureand social and welfarebenefits(D.O.No. 10 of 1997;Baguiov.NLRC, GR Nos. 79004-08,October , 1991); nd
d. Must be properly egisteredas'suchin accordanceithD.O.No.1&02.
Note:The absence f a registrationnlygivesrise o the presumptionhat he contractorsengaged in labor-only contracting, apresumptionhatcan be refuted Aklan, t al v.San Miguel Corp.,BMA Philasia,nc., et al,GRNo. 168537, eember11,2008).
2. Labor Only Contracting - anarrangementwhere the contractororsubcontractor erely ecruits, upplies rplacesworkers o perform job, work orservice or a principal, nd ANY of thefollowing LEMENTSs present:a. The contractorr subcontractoroes
not have substantial capital ORinvestment hichrelates o the job,
work or service o be performed, ndthe employeesecruited,upplied rplaced by such contractor orsubcontractor are performingactivities hichare directly elatedothemain usinessf heprincipal;r
b. The contractor oesnot exerciseheright o controlover he performanceof the work of the contractualemployee.
Substantial Gapital -, gqpital.stgcks,,endsubscribed capitalization n the case ofcorporations,ools, equipment,mplements,machineriesndworkpremises,ctually nddirectly used by the contractor orsubcontrac'torcompletionof
the 'performance orjob, work or service
contradedout.
Summary f Prohibited aborContracting(LT-CrSU)1.
labor-onlyontracting;
2. Contracting that ferminates theemploymentof regular employees,orreduces heirwork 'hours,or.reducesor
splits a bargainingunit, f such contracting
out is not done in good faith and notjustifiedby businessexigencies;Contractingwith a Cabo person/s r laborgroup which, in the guise of a labororganization, supplies workers to anemployer,with or without any monetaryorotherconsideration hether n the capacityof an ageht of the employer or as anostensi le independent ontractor;Contractingwith n-houseagency;Contractingbecauseof #'$trike or lockout;
andContractinghat constitutesLP underArt.248.
prevent.rei
3.
4.R
inthe
ILYany
Noteliable
incl
The employer/principalis merely an indirectemployer,by operationof law, of hiscontracto/s employees(ftl AutonationCenter,lnc. v. NLRC, January29, 1996).
The employer/principalis treated as directemployer of thecontractor's employeesin all instances(contractor is deemed
agent of the employel(ManilaWaterCompnyv. Pefia,July 8, 2004).
Ee relationship or alimitedpurpose, e. toensure that theemployees are paidtheir wages (SMC v.MAERC lntqratedSerwbes, nc., July 10,
The statute creates anEr-Ee elationshipor acomprehensivepurpose,.e. o preventa circumventionf laborlaws (SMC v. MAERClntegrded Serwces,lnc.,July 10,2003).
The principal becomessolidarily iable with thecontrastorn the eventthe latter aits o pay heemployees'wages andfor violation of laborstandard laws. Theliability,however, doesnot extend to the
The principal ecomessolidarilyiablewith thecontractornot only forunpaidwagesbut alsofor all the rigtrfful laimsof the employees nder
abor Code and
ll$ LA\c'
/VTRC,GR
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LABORLAW
LABOR TANDARDS
. The principal shall be deemed theemployer of the contrac,tual mployee in
any of the folloring casesas declaredbvcompetentauthority:1. Labor-only ontracting; nd2. Contractingarrangementallingwithin
the prohibitions.
ART.108:POSTTNG F BONDAn employer r indirect mployermay requirethe contractor or subcontractor o furnish abondequal to the costof laborundercontract,on condition hat the bondwill answer or thewages due the employees should
thecontractoror subcontractor, s the case mavbe, ail to pay he same.
Note: Where the employer ails to require hecontractor o pos a bond,the employermustanswer for whatever liabilities he contractormay have incurred o his employees.This iswithoutprejudiceo its seeking eimbursementfrom the contractoror whateveramount t willhave to pay the said employees(Baguio v.NLRC,GR Nos. 79004-08,October4. 19911.
ART. 110: WORKER PREFERENCE NCASE OF BANKRUPTCYWorkers shall enjoy first preference asregards their unpaid wages and othermonetary claims, any provision of la,rr o thecontrarynotwithstanding.r Establishes preferenceof creditand not
a lien; (Development Bank of thePhilippinesv. Secretary of Labor,GR No.79351,November 28,1989)
rCoversnot only unpaidwages but also al lothermonetary laims;
. Applicable only to ordinary, preferredcredit, hence, must yield to specialpreferredcredits (e.9. secured creditors);
o This Article did not sweep away theoverridingpreferenceaccordedunder theschemeof the Civil Code.totax claims of
.the government.
C o n d i t i o n s ', r . . ) . i . :
1. Formal declaration of insolvency orbankruptcy;
2. General udicial liquidationproceedingsofthe employeis busihess; nd
3. Filingof claimsby workers.
Note: The worker preferences not applicablein case the employer-corporations underrehabilitation.
r The prefererrtial . right accorded toemployeesand workers under Articte110
ply.Oe.jnvgfednty uring ankruptcyrjudicialiquidationroceedingsgainst-the
employer. (Development Bank of thePhilippinesv. Secretary of Labor, GR No.
79351,November28,1989. Suspension f paymentsorderby the SEC
mandates he holding in abeyance hefil ing or the proceedings n labor casesagainst an employer who is underrehabilitationo give the employer hechance o concentrate n how to revivehisbusinessand not be distracted n tryingtodefend itself n labor cases iled against t(Rubbervvortd, tnc. v. NL?C, GR No.126773,April 14, 1999).
ART.111:AfiORNEY,S FEESRules:1. In casesof unlavfulwithholding f wages,
the culpable party may be assessedattorney's ees equivalent o 10% of theamountof wages recovered.
2. lt shall be unlawful for any person todemand or accept, in any judicial oradministrative proceedings for ther€covery of the wages, attorney's feeswhichexceed10o/o l the amountof wages
recovered.Seedrscussionsn Aft. 222.)
Concepts of Attorney's Feesa. Ordinary ; reasonablecompensationpaid
to a lawyer by his client for the legalserviceshe has rendered.
b. Extraordinary- indemnity for damagesordered by the court to be paid by thelosingparty n a litigation,and is not to bepaid to the lawyerbut to the client,unlessthey have agreed that the award shall
pertain to the lawyer as an additionalcompensation r as a part hereof TradersRoyal Bank Employees tJnion-lndependentv. NLRC,March 14, 1997).
"Union ServiceFee"
- .
10
with the
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$sn ffiebl €ollegedi[eb2011CENTRALIZEDAROPERATIONS
2.
wages (Att. 112, Non-lnterferenoe inDlsposa/ of Wages);
No employer hall orce,compel,or obligeemployees to purchase merchandise,commodities or other property from theemployer or from any other person, orotherwise make use of any store orservices of such employer or any otherperson (Nt. 112, NonJnterference inDisposa/of Wages);No employershall make any g[eductionsfrom the employee'swages except whenauthorized to do so (Arf. 113, WageDeduction);No employer shall gequire he worker tomakedeposits rgmwhich deductions hallbe made fors'reimbursementof loss of ordamage to tools, materials,or equipmentsuppliedby the employerexcept when theemployer is engaged in such businessrequiringsuch deposits as determinedbythe Secretary of Labor (4ft. 114, Deposifsfor Loss or Damage);No employer shall make any deductionfrom the employee's eposits or the actual
amount of the loss or damage unless theemployeehas been heard hereon and hisresponsibility as been clearlyshown (Arf.115, Limitations);No .employershall githhotd any amountfrom the wages unless authorized o do so(Nt. 116, Wthholding of Wages andKi ckbacks P rohi bited)No employershall nduce the employee ogive up any part of his wages by force,stealth, ntimidation,hreat or dismissalorby any other means without his (worker)
consent (Att. 116, Wthholding of Wagesand Kd<backs Prohibited);No employer shall make deductions asconsiderationof a promiseof employmentor retention of employment (Art. 117,D educti on to Ensu e Employment)
9. No employershall refuse to pay or reducethe wages and benefits or otherwisedischarge he employeewho has filed anycomplaint un{eg this"T$g,.o[.haq teslified
. or is about to testify in such proceedings
(4ft . 118, Retaliatory Measures.);and10.1{o employer shall make any gtatemeni,report or record knowing such statement,report or record o'be false in any materialrespect (Att. 119, False Repofting).
ART. 112: NON-INTERFERENCE INOISPOSALOF WAGES
Related Civil Code ProvisionsAtt. 1705.The labore/s wages shallbe paid n
legal gurrgrlcy:
Att. 1706.Withholdingof the wages,except or
a debt due, shall not be made bY
the emPloYer.Art. 1707.The laborer'swages shall be a lien
on the goods manufactured r the
work done.Att.17O8 The laborer's wages shall not be
subject to executionor attachment
except for debts incurred or food,
shelter, clothing, and medical
attendance.Att. 1709.The employershallaheithereize nor
retain anY tool or other articles
belonging o the laborer.
ART.113:WAGEDEDUCTIONS
General Rule: Wage deduction is strictlyprohibited.
Exceptions:A. With Employee's Consent in Writing
1. SSS paymentsQ.. PHILHEALTHPayments3. Contributionso PAG-IB|GFund
4. Valueof mealsand other acilities5. Payments to third Persons with. employee's onsent6. Deductlonof'absences
B. Without EmploYee'sGonsent1. Worker's insurance acquired by the
employer2. Uniondues,where he right o check-
off has been recognized bY the
employer3. Cases where the emPloYer is
' authorized bY law or regulationsissuedby the Secretaryof Labor
4. Debts of the emPloYee to the
employer hat have becomedue anddemandable
C. When
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LABOR AW
LABOR TANDARDS
considers he practiceof makingdeductions rrequiringdepositsnecessary r desira[le.
Requisites of Deduction for Loss orDamage SOFE)1. The employee is clearly ghown to be
responslbleor the lossor damage;2. The eniployee s given ampleopportunity
to show causewhy deductionshouldnotbe made;
3. The amountof the deduction s fair andreasonable and shall not exceled theactual ossor damage;and
4. The deduction rom the employee'swage
does nof gxceed 2oo/o f the employee,swages in a week (Sec. 11, Rule Vill,Book lll, Rules tmptementing the LaborCode)
Note: Arf. f14 provides for the rule ondeposits or lossor damage o tools,materialsor equipmentsupplied by the employer.Thesame does not apply to or pefiit debosits todefray any deficiency,which the taxi drivermay incur in the remittanceof his ,,boundarv'.
flr,Taxiv. NLRC,GR
No. 111474,Augist22, 1994)
CHAPTER V. WAGE STUDIES, WAGEAGREEMENTS AND WAGEDETERMINATION
Composition of Natinnal Wages andProductiviti Commission {NWPC)
-
1. Secretaryof Labor,2. Director-Generalol NEDA;3. 2 membersfrorh the employeis sector:
4. 2 members from the workeis sector; and5. Secretariat (Executive Director and two(2)DeputyDirectors).
ART. 122: CREATIONoF THE REGIONALTRIPARTITEWAGES AND PRODUCTIVIWBOARD
Who May Set the Minimum Wage1. RegionalTripartiteWggesanOprsductivitv
Bbard (RTWPB),subject o the guidelineiprescribedby the NWpC; and
2. Congress.
Composition of RTWPB1. RegionalDirectorof DOLE.2. RegionalDirectorof NEDA:3. RegionalDirectorof DTI:4. 2 membersfrom the employe/s sector;5. 2 membersfrom the workeis sec.tor:and6. Secretariat.
ART. 123:WAGE ORDER
Wage Order - an order ssuedby the RegionalBoardwhenever he conditions n the regionso warrantafter investigating nd studyingal lpertinent acts and based on the standardsand criteria prescribed by the LC. TheRegional Board proceeds to determinewhether o issue,the ameor not.
r A wage order establishes_.theinimumwage rates o be paid by effiployers n theregion, which shall in no case be lowerthan the applicable statutory minimumwage rate,s NWPC Rulesof ProcedureonMinimumWageFixing).
;;1 ,;1.i
EffectivityIt shall take effect after 15 DAYS from itscompiete publicatiori in at least onenewspaperof generalcirculation n the region(NWPC Guidelines No.OO1-95).
Note:* Public hearings and publication areMANDATORY. Wage order issued by the
Regional Wage Board without the requiredpublic hearing or consultation, nd withoutpublication in newspapers of generalcirculation hall be struckdown for violationofAtt. 123 of the Civil Code {Cagaym SugarMilling Co. y. Sec. ol Labor, GR No_ 129399.January 15, 1998).
FrequencyA wage order issued by the Board may NOTbe disturbed or a period of 12 monthsfrom itseffectlvity and no. petition for wage increaseshallbe entertained uringsaid period,
Exceptions:1. When Congress itself issues a law,
increasingwages.
rces. #rXhi #H#A
ccLLs{F* sri tarv
file witha surety
to theemployees
AS
of
Itthetheor
|itl
48
corresponding
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Ssn $eU 6ollege ofLffi2011CENTRALIZEDAROPERATIONS
increase. n the event such order is affirmed
(Sec. 5 Rule V, Sec. 7, Rules lmplementingR.A.672n.
Grounds for Appeal on Wage Order1. Non-conformitywith prescribedguidelines
and/orprocedure;
2. Questionsof law; and3. Grave abuse of discretion (Rule V,
Reyised Rules of Procedure on Min. WaoeFixing).
Doctrine of Double Indemnity
Double Indemnity - the payment to aconcerned employee of the prescribedincrease or adjustrircnfs ' n the wage ratewhich was not paid by an employer in anamountequivalent o twice he unpaidbenefitsowing o such employee.
Unpaid Benefits - the prescribedwage rateswhich the employer failed to pay upon the
effectivity of a wage order, exclusive of otherwage-related eneflts.
Note: Unpaid benefits serve as theprincipalbasis for computing he doubleindemnity Sec.? Dept. Order No. 10).
ART. 124: STANDARDS/ CRITERIA FORMINIMUMWAGEFIXING
Factors for Determining Regional MinimumWage Rates (DeW-CNN-I -FE')1. Emand for livingwages;2. \age adjustment vis-i-vis the consumer
price ndex;3. Cost of living and changes or increases
therein:4. Need6of workersand heir amilies;5. $eed to induce industries o invest in the
countryside;6. [mprovements n standardsof living;7. lrevailing wage levels;8.
Eairreturn of the capital invested and
; . ,c?ppg'Jyg.ppJ of employers; ,.._., :9. fffectb on employment generation and
family ncome; nd10. quitable distribution f incomeandwealth
along the imperatives of economic andsocialdevelopment.
Two methods of minimum wage fixing1. Floor-lrVagemethod- involves the fixing of
a determinateamount o be added to theprevailingstatutoryminimum wage rates.
2. Salary-cai: or Salary Ceiling- mbtnodwhere the wage adjustment is to beapplied to employees receiving a certain
words,workersalreadybeingpaidmore
than he existingminimum age up o acertain mount tated n theWageOrder)arealsogiven wage ncrease.
Wage Distortion - a situationwhere anincreasen prescribed age rates esults nthe eliminationor severe.contractionofintentionaluantitativeifferencesn wageorsalary ates betweenand among employeegroups n an establishments to effectivelyobliteratehe distinctions nlbodiedn such
wage structurebased on skills, length ofservice r other ogical ases fdifferentiation.
Elements f WageDistortion HSED)1. An existing lierarchyof positionswith
correspondingalary ates;2. A Significanthangeor increasen the
salary ateof a lowerpayclasswithotjtacorrespondingncreasen the salary ateofa higher ne;
3. The liminationof the distinctionetween
the wogroupsor classes; nd4. TheDistortionxistsn thesame egion fthe country (Alliance Trade Unions v.NLRC, GR No. 14A689,February17,2004).
Employer igally Obtigedo CorrectWageDistortionTheemployernd he union hallnegotiateocorrecthe distortions.f there s nounion,heemployer nd the workersshall endeavoro
correct uchd stortions.Correctionof WageDistortionA. Organized stablishment
(Establishment ith un on)1. Employerndunion hallnegotiateo
correct he d stortion.2. Any disputearising herefrom hould
be resolved through grievance
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LABOR AW
LABOR TANDARDS
Formula for Resotving Wage Distortion(MetropolitanBank and Trust Co. Employees
Union ALU-TUCPv. NLRC,GR No. 102636.Sept. 10, 1993 and Wage Order No. tV-02lssuedon 21 May 1991)
ExistingMin.
= o/oxprescribed - -D.istortionwage Increase Adjustment
Purpose: in order for the Board/Commissionto perform ts powers and functionsspeedily
Wthout regard to unnecessary nterventionsthat may tremendously ffect the wage-fixingfunctions (Poquiz,2OO5)
CHAPTER VI. ADMINISTRATION ANDENFORCEMENT
ART. 128: VISITORIAL ANDENFORCEMENTOWER
5.
Note: Before the DOLE may exercise its
powers under Afticle 128, two importantquestionsmustbe resolved:1. Does he emplcyer-employee elationship
exist?2. Are there violations of the Labor Code or
of any labor aw?
DOLE'sprerogativeo determine he existenceof Er-Ee relationships not coextensivewiththe visitorialand-'enforcement ower. Suchdeterffiinations merelypreliminary,ncidentaland collateral o the DOLE's primary unctionof enforcing abor standardsprovisions.Thedeterminationof the existence of employer-emptoyee elationships still primarily odgedwith the NLRC. This is the meaning of theclause "in cases where the relationshipofemployer-employeetill exists' n Aft. 128 b).The existence of an employer-employeerelationships a statutoryprerequisiteo and alimitationon the power of the Secretary ofLabor, one which the legislative branch isentitled to impose. (People's Broadcasting v.
Secretaryof the DOLE, G.R. No. 179652,May8,2009)
The DOLE has QuasiJudicial Power. t bearsemphasis hat the DOLE, underArticle 106 ofthe LaborCode,as amended,exercises uasi-
Sample lllustration
Existingminimumwage is P 300 perdayEmployee's ailywage s p 350Mandatddwage increase s P 25 perday
Note: Wage distortion is non-strikeable.Staginga strike or this reason s a Molationofthe mandate of R_A. 6727 providing forvoluntary negotiatioirs and arbitration insolving wage distortion problems. (ilaw atBuklod ng Manggagawa v. NLRC GR No.91980,June 27, 1991)
Previous Pay Gaps Need NOT be RestoredWhile that is the aim, it need not necessarilvbe restored to the last peso. An appreciabtedifferentidl,a substantialor significantpay gapshould suffice as correctionof the distortioh(National Federation of Labor v.
.NLRC,OA
No. 1d3586,Juty 21, 1994).
ART. 125: FREEDOMTO BARGATN
The question of minimumwage is beyord thesphere of bargainingof the parties. t is notnegotiable. In view of R.A. 6727 nowincorporated into Arf. 125, what the lawprohibits is bargaining or wages below thefloor set by law or wage order. The worker istherefore reeto bargain or higherwages.
ART. 126: PROHIBITION AGAINSTINJUNCTIONProceedings of the Commission or theRegionalBoardsare beyond he reach of theinju.nction owers of judicial or quasi_judicial
bodies. theiefrom. o
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Ssn 6e l @oltegefLeb2011CENTRALIZEDAROPERATIONS
any act,conditionr matterwhichmaybe
necessaryo determineiolationsr which
may aid in the enforcementf the Codeandofbny labor aw,wageorder,or rulesand egulations.
EnforcementPower (as amendedby R.A.ngq - powerof the Secretaryof Labor tocompel employer to comply with laborstandards upon finding of violationsdiscoverednthe course f the exercise f thevisitorial ower.
o Only claims where employer-employeerelationstillexist an'be overedo Includeshepower"tof"'
1. lssue ComplianceOrdersbased onthe indings f laboremploymentndenforcementofficers or industrialsafetyengineersmade n the courseof inspection, nd must observe7cardinal equirementsf due processin administrativeroceeding;
2. /ssue Writs of Execution for theenforcementf ordersexceptn cases
where the employer contests hefindings f the said aborofficers ndraises issues suPPorted bYdocumentary roofswhich were notconsideredn the course f nspection:
3. Order Work Sfoppage/Suspensionf' Operationshen non-complianceith
the law or implementingules andregulations osesgrave& imminentdanger o the health nd safetyof theworkersn heworkplace;nd
4. Conductheaings within 24 tours to'
determine hether:?. An order for stoppage ofworldsuspensionof operationsshallbe iftedor not and
B. Employerhallpay he employeesconcernedheir salariesn casethe violations attributableo hisfault.
1"\x:t,
11"i i ..- ' , : .r' ' ;: ;l '
;- ' ; . 1' '.' , ::
Procedute:
Complaintor Routine nsPection
ActualnsPection(lnspectorists heviolationnhis
checklist)
lnspector'sinding fViolation
lssuanceof ComPlianceOrder
In caseof non-compliance:ssuanceof
Writ of Non-Comoliance
In casepartydisagrees ithRD's
findings
(&10daysw/ Sec.ofLabor)
(certiorariwithheCAwithin 0 da
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LABOR AW
LABOR TANDARDS
ART. 129:RECOVERYOF WAGES,StMpLEMONEYCLAIMSAND OTHERBENEFITS(APER)1. The ggregate money claim of each
employeeor househelper oes not exceedP 5,000;
2. The claim is presentedby an employeeorpersonemployed n domesticor householdserviceor househelper,
3. The claim arises rom employer_employeerelations;and
4. The claimantdoesnof seek geinstatement.
Note.' In the absenceof any of the requisites,
it is the LaborArbiterwho shallhaveexclusivejurisdictionoverclaimsarising rornemployer_employee relations, except claims
-for
employees'compensation,SSS, philhealthand maternitybenefits,pursuant o Article217of the Labor Code.
.If_"
proceedings before the RegionalOffice shall be summary and non_liti-giousin nature.
Adjudicatory PowerThe Regional Director or any of his dulyauthorized hearing officer is umpowerudthrough summary proceedingand after duenotice, to hear and decide cases involvinorecovery of wages and other monetarvclaimland benefits, ncludingegal nterests.
Note: Arfs. 12&129 apply only in the contextof employmenirelationship.A regular court,not DOLE or NLRC, has jurisdictionover theclaim of an independentcontractor o adjustthe contractof lee (Urbanes,Feb. 19,2@3).
TITLETHREE:WORKTNG Oi{DtTtONsFOR SPECIALGROUPSOF EMPLOYEES
CHAPTER . EMPLOYMENT F WOMEN
Constitutional Provisions protectingWomen
Art. ll, Sec. 14",TheState recognizeshe roleof women in nation-building, nd shall ensurethe fundamental equality before the lay ofwomenand men.
Art. Xlll, Sec. 3, 1"tpar. The State shall affordfull protection to labor, local and overseas.organizedand unorganized,and promote ul lemployment and equality of employment
opportunitiesor all.
Att. Xlll, Sec. 14. The State shall protect the
/ t
.'ri,
of Labor, within10 calendardays; DecisionmaY beelevated to theCourt ofAppeals (CA)throughcertiorari
within5 calendardays
of Labor orhis dulyalthorizedrepresentativewho may or
may not be aRegional
Director or anyduly authorizedhearing ffcer ofDOTE
Vrsitorial andenforcementpowerexercisedthrough routineinspections of
maters involvingrecoveryofwage
r\eYqil 9>
existenceof Er-Eerelationship
relationship notnecessarysince
it should notincludea claimfor reinstatement
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$en Sela @ol[egefLtb2011CENTRALIZEDAROPERATIONS
Coverage
It coversALL employers,whetheroperating orprofitor not, includingcharitable, eligiousandeducationalnstituti6nsSec. 1, RuleXll, BookIII, IRRof LC).
Exclusions1 Government-owned
corporations; nd2. Employersof househelpersand those in
their personalserviceonly insofar as saidworkers are concerned. (Sec. 1, Rule Xll,
Book lll, Rules lmplementing he LaborCode
ART.131:PROHIBITIONS ,. ' : , ,
Prohibitions under Art 130Apply EU-PMS-Fo)1 ln cases of actual or
shall NOT
impending
lmergenciescausedby serious ccident,flre, lood, yphoon, adhquake,pidemic,or otherdisasters r calamity,o prevent
lossof life or property, r in caseso'f orcemajeureor imminentdanger to publicsafety;
2 In casesof Urgentwork o be performedon the machineries,equipment orinstallation,o avoid eriousosswhich heemployer ouldotherwiseuffer;
3 Where the work is necessaryo lreventseriousossof erishable oods;
I Where the woman employeeholds aresponsibleposition of flanagerial or
technicalnature, or where the womanemployee as been engaged o providehealth ndwelfare ervice:
5 Where he natureof the work requireshemanual $kill and dexterityof .women
workers and the same cannot bepeformedwith equalefficiency y maleworkers:
i Where the women employees areimmediate members of the lamilyoperating the establishment or
undertaking;nd-.U{eq. Ettpr,.analogons,oasesxemptedby the Secretary f Labor n appropriateregulations.
Exemptionof a Call Center-ne
Secretary f Labor and Employment as.;rlized'Article 3l to exempt allcentersrom::e prohibitions f Arficle13O Subjecto the:onditionshata Safe and healthfulwork conditionsand
adequate acilitiesas sleepingor restquartershallbeprovided,
: Pregnantwomen and nursingmothers
company physician shall certify to their
fitness for night work, specifying thepregnancy period when they can safelywork. (Azuena,2010)
ART. t32:FACILITIES ORWOMEN
The Secretary f Labormay requireemployersto:(STAN)1. Provide $eats proper for women and
permit hem to use'the geats when theyare free from work or dfring office hours
provided he qualityof the work will not becompromised;
2. Establish separate Toilet rooms and
lavatoriesor men andwomenand provide
at least a dressing oom or women;3. Determineappropriateminimum ,ge and
other standards for retirement ortermination n specialoccupations uch asthose of f lightattendants nd he like;and
4. Establisha lursery in the establishment.
. -if the'women are able to obtain betterterms and conditions hroughnegotiationsor voluntarygrant than what are provided
therein, he same are not prohibited Sec.
12, RuleXll, Book lll, IRR of LC).
ART. 133: MATERNITY EAVEBENEFITS
Maternity Leave UnOer the SSS Law (See
dlscussionunder SSS Law)o A femalemember,who neednot be legally
married,who has paidfor at least hree (3)monthly contributions in the 12-monthpeiod immediately Preceding thesemester of her childbirthor miscarriageshall be paid a daily matemity benefitequivalent o 100% of her average dailysalary credit for 60 days for normaldelivery or 78 days, in case of caesariandelivery;
and controlled
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LABOR AW
LABOR TANDARDS
Paternity Leave (R.A. 8187,July 5, 1996)(See dlscussionunder paternity LeaveAci.)
Purpose: To enable the husband to lendsupport to his wife during the period ofrecovery and/or in the nursing of the newlybornchild.
Conditions for Enti0ement(E-cAB-F)1. He is an Employeeat the time of the
detiveryof hischild;2. He is Cohabitingwith his spouse at the
time she gives birth or suffers amiscarriage;
3. He has Applied or paternity eavewith hisemptoyer;and
4. His wife has given pirth or suffered amiscarriage.
5. Covers only the first Four deliveries ormiscarriages.
Nbte: The term "wife" refersto the avvfulwife,which means the woman who is legahymaried to the maleemployeeconcerned.
??ttgred Woma4 Leave / BWL (tJnder RA9262, Anti Violencc Against U)or.n"iaheir Chitdren Act of 2004or AVAWC lawf
r Allows he victimof violencewhcih mav bephysical,sexualor psychological,o applyfor the issuanceof a',,protecti-onrderJ
- -
r lf the victim s an employee, he is entiileoto a paid teaveof up to TEN (t0) DnyS inaddition to other paid leaves under the
, Labor Code, other laws, and othercompanypolicies.
o The employeehas to submita certification
from the punongBarangayor rcagawaO rprosecutoror theCler[6r couri naianaction nderM No.9262 asbeeniledandpending.
. Usage f the 104ay eave s at theoptionof thewomanemployee.t shallcov"?n"ctayor dayswhenshewill have o attendto medical nd egal oncerns.
. ;,i.Leavesncrtawiled of are,ndmcumulative.anonotconvertibleo cash
.ln employer ho denies he applicationfor BWL or who prejudices
"ri'Grso;ssisling he woman- mployee i"V-0"held iable or discriminationnd violationof RA 9262or its implementingutes-anJregulations
o Enforcementf theentiflemento theBWLfails within he jurisdiction f tne bOf_Er. RegfonalDiredorunderAtticte12gof theLaborCode.
Two Month's Leave under the Magna Cartaof Women (Special Leaveor Sugical Leave)
See dr'scusslon f MagnaCartaof WomenRA971O) nder SociatLegislation af t
ART.134:FAMILYPI-ANNING ERVICES
Employerswho habituallyemploy more thantwo hundred (200) workers n any localityshallprovide ree family-planning ervices o theiremployee$ and their spouses ;yrhich shallinclude,but not limited o, the alplication oruse'of contraceptivepills and intra_uterinedevices. (Sec. 11, Rule XIl, Book \il, Rutes
lmplementing the Labor Code)
ART.135: DISCR|M|NAT|ONRoHIBITED
It shall be unlaMul for any employer todiw-riminateagainst any woman employeewith respest to terms and conditions ofemployment olelyon accountof hersex.
Reasoni Aft. llt, Sec. I of the Constitutionmandatesan equalprotection f the laws.Arf.Xlll, Sec.3 assuresFilipinoworkersof equat
work opporrunity.
Acts of Discrimination(PEHD)1. Discimination in pay - payment of lesser
compensation o a female employee asagainsta maleemplovee:
2. Discimination in Emsiloymentoppoftunity -favoringa male employeeover'a femileemptoyee with respect to promotion,assignment, transfer, trainingoplcortunities,tudyandscholarship rantisolelyon accountoftheirsexes:
3. Discimination in fljing - favoring a maleapplicantwith respect o hiringwhere theparticularob can equallybe handledby a
#i r
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5en Dels @ollagefLeb2011CENTRALIZEDAROPERATIONS
No-Spouse Employment Policy
LPolicybanningonlyspouses rom workingin the same company.
2. May not facially violate Article 136 of theLabor Code but it creates adisproportionate ffectand the only way itcould pass judicial scrutiny is a showingthat it is reasonable despite thediscriminatory albeit disproportionateeffect.
Exception:Bona Fide Occupational Qualification Rule- if the employercan prove hat the reasonabledemandsof the business equirea distinctionbased on marital status and there is no betteravailable or acceptable policy whichr.wouldbetteraccomplish he businesspurpose(StarPaper Corp. v. Simbol, GR No. 164774,Apil12,2006).
ART.137:PROHIBITED CTS
t shallbe unlaMul or an employer:PPFF):
1. To discharge ny womanemployed y himfor the purposeof preventingsuch womanfrom enjoying he maternity eave, acilitiesand other benefits provided under theCode;
Z To discharge a woman employee onaccount of . her pregnancy, or while onleave or in confinement due to herpregnancy;
-t. .To dischargeor refuse he admissionof awoman upon returning o her work for fear
that she may be pregnant;and4 To discharge any woman or child or any
other employee for having liled acomplaintor having estifiedor beingaboutto testifyunder he Code.
\ote: The employee's failure to formally.form her employer of her pregnancycannot- considered as grave misconduct directlyrnnected to her work as to constitute jusl
=use of her separation. (Lakpue Drug, lnc. v.
ART.138: CLASSIFICATIONF CERTAIN$IOMENWORKERS
-ti'rywoman who is permitted o work orzuffered to work, with or withoutlrnpensation, in any night club, cocktailEidnge,massage clinic, bar or similarsstablishment, nder the effectivecontrol ore.pervisionof the emflo;|er or a substantial
:eriodof timeas determined y the SecretaryI Labor,shallbe.considered s an"employee:r such establishment'forpurposes f labor
i
Note: Guest Relations Officers under the
effective ontrolor supervisionf the employer
may form labor organizationsor purposesofcollective bargaining. There is an Er-Eerelationship between the nightclub and theguestrelationsofflcers.
. ANTI-SEXUAL HARASSMENT ACT OF1995 (See discusslon under Anti-sexual
HarassmentLawl
CHAPTER I. EMPLOYMENIEOF INORS(See discussion under Anti-Child Labor Act,R.4.9231)
ART.139: MINIMUMEMPLOYABLE GE'
General Rule: No child below 15 shall beemployed.
Conditions of the Employment of a GhildBelow 151. When the clild works directly under the
-sole responsibilityof his/her parents or
legal guardianwho employs membersofhiVher family only under the followingconditions:a. Employment does not endanger the
child's ife,safety,healthand morals;b. Employment does not impair the
child'snormaldeveloPment; ndc. The parent/legal uardianprovideshe
child with the Primary and/orsecondary education Prescribed bYDept. of Educ.
2. Where the child's employment .orparticipation in public entertainmentorinformationhroughcinema, heater, adio,or television s essential, rovided hat:a. Employment does not involve
.advertisements or commercialspromoting alcoholic beverages,
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LABORLAW
LABOR TANDARDS
Non-H:;rardousWork or Undertaking - Onewherethe employee s not exposeOo inv rlst<which constitutesan imminentOanger
o nissafety and health.
HazardousWorkplaces (ECE_Hp)1. Natureof the work exposes he workers o
dangerous environmental elements.contaminantsr workcondit ions:
2. Workersare engaged n constructionwork,logging, fire-fighting, mining, quarrying,blasting, tevedoring,Ooct< oik, Ou"p_s"l
_ fishing,and mechanizedarming;3. Workers are engaged in the riinufacture
orhandling of gxplosives and other. pyrotechnic roducts;
4.'Workers
use or are exposed o heaw orpower-driven machinery or e{tipment;and
5. Workers use or are exposed to power_driven ools.
Hours of a Working Child1. A child beloryv 5 years of age may be
allowed o work for not more han 20 hoursa week. Thework shall not be more han 4
hoursanygivenday.2. A child15yearsof age butbelow1g vearsshall not be allowed or more han g hoursa day, and in no case beyond40 hdursaweek-. No child below15 yearsof age shail
be allonaredo work betweenl:O0 inthe eveningand 6:00 n the morningofthe folloving day and no child 15years of age but below 1g shall beallowed to work between 10:00 in theeveningand 6:00 in the morningof thefoftowingday (Sec. 3 R.A. g23i).
CHAPTER I1I. EMPLOYMENT OFHOUSEHELPERS
ART. 144-152:RTGHTS FHOUSEHELPERS
. Cost of which shall be oart ofhousehelpeds compensation,
UNLESS here is a stipulation o thecontrary
5. Contract for householdseMce shall notexceed2 years;. Renewable, however, from year to
year.
Just and humane rebtment;Right not to be required o fiork for morethan10 hoursa day;a. lf the househelper agrees to work
overtime, and there is additionalcompensation, the same ispermissible.
b. Householder annotrefuseovertime fnature of work requires overtime(compulsory vertime).
Right to four days vacation each monthwith pay. '1f
the'helper does not ask for thevacation, he numberof vacationdayscannot be accumulated,he is
entifledonly o its monetaryequivalent.
Funeral expenses must be paid by theemployer if the househelper hai norelativeswith sufficientmeans n the placewhere he headof the family ives,
10.Termination nly or a just cause;11. Indemnity or unjust erminationof service:
and12.Right to demand from the employeran
employmentcertification s to natwe and
duration of service and efficiency andconduct of the househelper uponextinguishrnent f the service elation.
4l -
2.
3.
loryassignqent o non-householdorKKeasonabteompensatiohminimumashwage)Lodging,ood,andmedical
ttendance:a. The rightof househelperso medicalattendance, exclusive' ofhospjtalization,s deemedsubject othe 'rule
of necessity,, hichmeansthat t depends pon hecircumstancessurrounding ach case. (Cuajaov.thu? Lo Tan, GR No.' tJazla,September9, 196?)
11 dT 18 V.earstd,an opportunityoretementaryducation:-liil
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Ssn frebs@ollegc f l^tu2011CENTRALIZEDAROPERATIONS
lnsuranceund.TheEmployer's bligations
merelyo payhiscounter ontributiono
theSSS.
Note: The governing aw is determinedby the
date on which the claimant contracted his
illness. Where an ailment supervenedbefore
the new Labor Code ook effect, he governing
law is the old Worhmen'sCornpensationAct, lI
it occurs after Jan. 1, 1975, he new lav/ onEmployee'sCompensationapplies (Azucena,
2010).
ART.167DEFINITION FTERMS
InjuryAny narmful change in the human organismfrom any accident arising out of and in thecourseof employment.
Conditions for Compensabilityof lnjuries1 The employeemust have been injuredat
the placewhere the work requireshim tooe:
2. the employeemust have been peiforminghis official unctions;
3. lf the injury is sustainedelsewhere, heemployee must have been executinganorder for the employer (Sec 1[a], Rule lll,Amended Rules on EmployeesCornpensafion);and
4. Theinjury was not due to the employee's
intoxication,willful ntention o injure or killhimselfor another,notorious egligence ras otherwise provided under this Title(4ft.172, Labor Code).
Note: Injuries incurred by a health workerwhile doing overtimework shall be presumed
work-connbcted (Magna Cafta for PublicHealth Workers).
Note: Under the .twenty{our-hour fluty' doctrine,'menihits,of thdtnati6napolicemby '. '
the natureof their functionsare technicallyondtfty 24 hours a day except when they are onlacation leave. Death arising from police
service, althorigh nqt in official line of dnty iscompensabf (Azucena, 2010).
SicknessAny illness accgpted as an occupationaldisease listed by the Commission or any
illne'ss aused.byerlploymentsubject o proof
that the risk: of cohtrading the same isincreasedby working conditions.
Conditions for GomPensabilitY of
Occupational Disease and Resul$ng
Disabilityor Death
1. Emplbyee's work must involve the risk
describedherein;2. The disease was contractedas a result of
the employee'sexposure o the described
risks,3. The disease was contractedwithin the
periodof exposureand undersuch actors
necessaryo contract t; and
4. Therewas no notoriousnegligence n the
partof the emPoYee. e
Note: Under Sec 1(b) Rule tll implementingPD 626, as amended, for the death to be
compensable,claimantsmust prove that (a)
his sicknesswas the resultof an occupational
disease istedunder Annex A of the Rules of
EmployeesCompensation,or (b) the risk of
coniracting he diseasewas increagedby his
working ,conditions (Banios v. Enploy??':
CompdnsationCommission' GR No. 148089'
March 24, 2006)-
"lncreased RisK'Jobs1. Peace-keePingohsi
2. Job of guardingProPertY;3. Job involving carrying of money and
valuables,4. Job eiposing employee o direct contract
with lawlesselements; 'e. bartender,bus
or taxi driver, conductor (Batangas
Transportation Co. v. Vda De Rivera, L-' 7658,MaY8, 1956);
5. Job exposing he employeeo illness;and
6. Job involvingprolongedsittingdown anoputting off urination- 8 arios v. Employee's'Compensation
Commission, GR No'
148089.March 24, 2OO6)
Test of ComPensabilitYFor increased risk theorY to apply in
int must
andrthat IclaimnotGarut
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LABORLAW
LAEOR TANDARDS
be9omesapplicable panotesv ECC, GR No.L-64802, Sepfember25, lgBS|
DeathLossof life resultingrom njuryor sickness
Disabil ityLoss or impairment f a physicalor mentalfunction esultingrom njuryor sickness.
Direct Premises RuleGeneral Rule: The accident should haveoccurred at the place of work to becompensable.
Exceptions:1-...lngess-Eg ess/proximity Rule*ne..n the injuy is sustained when theemptoyee s proceedingo or from his work inthe premises of the employer, he inlury'iscompensable.
2. Going to or Corning from WorkWhen the injury is sustatined when theemployee s proceedingo or from his work inthe premises of the employer,
the injury iscompensable;a. The act of the employeeof going to, or
coming from, the.workplace, muit haveoeen a continuingact, that is he had notbeen diverted therefrom by any otheractivity; and he had departed fiom his
,usualroute o, or from,hisworkplace;
b. An employee on a special errand thatmust have been officialand in connectionwith hiswork:
Extra Premises Rule (TheShuttte Bus Rule)The company which provides ne means-"lftransportation n going to or comingfrom theptace of work is liable o the injurysustainedby the employeeswhile on boaid iaid meansof transportation.
Special Errand RuleInjury sustained outside the companvpremises s compensable f his Oeinqoix-_icoveredby an officeorderor q {ocator"slipr;passfor officiAlbusiness. ' _ ".:
,Dual Purpose DoctrineAllcws.the compensationwhere a special riowoutd have o be madefor the
"rpl6y"rliinmployee had not combined the'se;ti; ;o;the emptoyerwithhisgoingor *ri"giiip;
'' '
Special Engagiment Rule
-lovgrs field trips, outings, intramuralsandpcntcs when initiatedand sanctionedby the
employer,
Positional and Local Risks Doctrinelf an employee by reason of his duties isexposed o a specialor peculiardanger fromthe elements, hat is, one greater nan tnat towhich other persons in the community areexposedand an unexpectednjuryoccurs, hein1urys compensable.
CHAPTERI.COVERAGE LIABILIry
ART.168COMPULSORY OVERAGE
Emptoyees'Compensationdiv (ECL) appliesto all employers,public or private,and to al l
emptoyees, ublicor private nduding casual,emergency, temporary, or substituteemployees.
An _employee ho is not over 60 yearsof ageand paying contributions o qualify for tf,eretirement or life insurance benefitadministered y the systemshall be subject ocompulsory overage.
ARL 170 EFFECTIVITY DATE OF
COVERAGE
Theemployer s coveredcompulsorilyromthefirst day of operationand the employee romthe firstday ol employment.
ART.172LIMITATIONS F LIABILITY
No Compensation if the Injury, Death orDisability is the Result of the Employee,s(rwNo)
1. lntoxication;2. Wilful ntentiono injureor kill himselfor
4.
another:Notorious egligence; rQtherwiseprovidedby the LaborCode.
work-
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$sn ffeba@olleget Lsb2011CENTRALIZEDAROPERATIONS
lnjury or Death n the Course ot AssaultRules1. When the injured was the unlawful
aggressor, NOT compensable MabuhayShipping Seruices, lnc. et al GR. No.94167,January21, 1991);and
2. When the injured was the victim of theassault and it occurred in the course ofperformance of official functions,compensable Lentejas v. ECC, GR No.89168,May 14, 1991).
Notorious NegligenceDeliberate ct of the employee o disregardhis
own personalsafety
ART. 173 EXTENTOF LtABtLlrY1 ;,. :
Ruleson Simultaneous Recovery1. Simultaneous ecor/eryunder the Labor
Code and the Civil Code cannot be made.The action is selectiveand the employeemay choose o fi le he claimundereither.But once the election is made, theclaimantcannotopt for other remedy.
2. Simultaneous recovery under the LaborCode and the SSS can be made (DOJOpinion No. I, Jan.12, 1990) since PD1921 has lifted the ban i.rrr imultaneousrecovery.
State lnsurance FundAll coveredemplolees are required o remit oa common fund a monthly contributionequivalento 1% of tlre monthly salary creditof every covered emplpyee. The employeepays no contribution to the fund. Any
agreemento the contrary s prohibited.
ART.174LIABILITYOF THIRDPARTIES
Third PartyOne upon whom no liabilitycould entail underthe law; One who is not an employer of theinjured employee or a stranger to theemployment elationship ndwho may be heldiable at common aw for his negligencewhichreq$ts,i -eqi$ ry.,to.tne$pJoyeq,,";,";,, ,.,
l-egal SubrogationWhen the disabilityor death is caused by theqrcumstancescreatinga legal liabilityagainsta third party, the disabled employee or the,dependentsn case of his death shall be paidby he System GSISor'SSS, as the case maybe). In case the benefit is paid, the Systemdrall be subrogated to the rights of theddsabled mployeeof the depenCents,n caseC his death, in accordancewith the generalaw.
Excessive RecoverYWherethe system(GS|Sor SSS, as the case
may be) recovers from such third party
damages n excess of those paid or allowedunder he law, such excessshall be delivered
to the disabled employee or other persons
entitled thereto, after deducting the cost of
proceedings nd expensesofthe System.
Double RecoveryThe injuredemployeecannotclaim payment
'twice for the same injury from both the thirdpartyand the GSIS or SSS,aas he case may
be (Albav. Bulaong,GR Nos, L-10308and L'
10385, pril8& 30,1957).
.:HAPTER . MEDICALBENEFITS
'-.C. BenefitsSummarizedl. Services
a. Medical Services, appliances and
suPPlies Nt 155and Rule Vlll, ECC
Rules)b. Rehabilitation eMces (Art. 190 and
* Rute X, Ecc Rules)
a. Temporary total disability (Ad. 191and RuleX, ECC Rules)
b. Permanent total disability (Art. 192
and RuleXl, ECC Rules)
c. Permanentpartial disabiltty Art. 193
and RuleXll, ECC Rules)
d. Death (Art. 194 and Rule Xlll, ECC
Ru/es)FunerafBenefit(Att. 194[d]and RuleXlV,
ECC Rules)
( I-IAPTER I. DISABILITYBENEFITS
i isability Categories;
1. Temporary Totallf the result of the injury or sickness, the
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LABORLAW
LABORSTANDARDS
Period of EntiflementThe income benefit shall be paidbeginning on the first day of such
disability. lf caused by an injury orsickness, t shall not be paid longer han120 consecutivedays except where suchinjury or sickness still requires medicalattendance beyond 120 days but not toexceed 240 days from the onset ofdisability, in which case, benefit fortemporary total disability shall be paid.However, the System may declare thetotal and permanentstatus at any timeafter 12O days of continuous emporarytotal disability Azucena, 2010).
RelapseAfter.,anemployeehas tully recoveredasduly certified, the period covered by anyrelapse,which results n disabilityand isdetermined o be coi-rrpensable,hall beconsidered separate from the perioocovered by the original disability (/CCResolutionNo. 1029,Aug. 10, 1978)
2. Permanent Totallf as a result of the injury or sickness, heemployee s unable o performany gainfuloccupation . for a continuous periodexceeding 120 days.
The following disabilit ies shall beconsideredoermanent otal:a. Temporary total disability for more
than 120 days, except as may
otherwise be provided;b. Complete loss of sight of both eyes;c. Loss of two limbs at or above the
ankle or wrist;d. Permanentcompleteparalysisof two
limbs;e. Brain injury resulting in incurable
imbecilityor insanity; ndf. Cases determined by GSIS or SSS,
as the case may be, and approvedbythe Commission.
. Period of Entitlement ,: r.'The full monthly income benefit shall bepaid for all compensable months ofdisability.
Suspension of lncome BenefitsMonthly ncomebenefitcan be suspendedunderANY of the followingconditions:a. Failure of the employee to present
himself or examination t leastonce ayear uponflotice by the System;
b. Failure to submit a quarterlymedicalreport certified by the attending
c. Complete of full recovery from hispermanent ecovery; r
d. Upon being gainfully employed (Sec.
2, Rule Xl Amended Rules onEmployees'Compensation).,
3. PermanentPartiallf as a result of the injuryor sickness, he
employeesuffers a permanentpartial oss
of the use of any part of his body (Abaya
v. ECC, GR No. 64255,August 1989).
Effect of Gainful EmploYmPntFor the purposeof entitlement o income
benefits or permanentpartial disability,acovered employee shall continue to
'receive the benefits provided thereunder
even if he is gainfully employed and
receiving his wages or salary (Sec. 1[b],
Rule Xll, Amended Rules on Employees'
Compensation).
Note: Benefitsdue to an employeedue to
work-related sickness shall be provided
until he becomes gainfully employed,oruntil his recovery, or death (Manioso v.
GS/S, GR No. 148323,April29, 20O5).
Distinguished f rom PermanentTotal
The test of whether an employeesuffers
from'rermanent total diability" is a
showingof the capacityof the employee o
continue performing his work
notwithstandinghe disabilityhe incurred
(Vicente v. ECC,6R No. 8ffi24' January
2s,1e91).
Earning Gapacity May Still Be "lmpaired"
Even if Earning is HIGHERAfter the Injury
Employee who receives higher wages after
injurythanwhat he earned before may still
have suffered an impairment of earning
lookedup
andshall
for theplaintiff
of
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Sm SeBa@ottege f LetD2011CENTRALIZEDAROPERATIONS
of supporting and maintaining herself inaccordancewith her station n life. A person
may be dependentalthoughable to maintain
herself without any assistance from thedecedent (Castillo v. Cadwallader GR No.41261, September26, 1934).
Dependents1. Legitimate, legitimated, and legally
adopted or acknowledgednatural child
who is unmarried, ot gainfully mployedand not over 21 years of age or over 21yearsof age provided hat he is incapableof self-support ue to a physicalor mental
defect whichis congenital or acquiredduring minority;2. Legitimate
-spousliving with tle
employee;and3. Parents of said employee wholly
dependentupon himfor regularsupport.
Benefits1. For life to the primary beneficiaries,
guaranteed or five (5) years;2. For not more than 60 months to the
secondarybeneficiariesn case there are
no primarybeneficiaries; nd3. ln no case shall the total benefitbe less.
thanP15,000.
BeneficiariesBeneficiaries hall be determinedat the timeof the employee's death (Sec. 1[a], Rule XV,Amended Riles o -, Employees'Compensation).1. PrimaryBeneficiaries
a. Dependent spouse until he or sheremarries: andb. Dependent children (legitimate,
, legitimated, natural born or legallyadopted).
2. SecondaryBeneficiariesa. lllegitimate children and legitimate
descendants;and rb. Parents, grandparents and
grandchildren.
i : . - . s t . . , . - - \ ' . . , ' .
Primary enefi iaries'stiiltavd piiority'itaim
to deathbenefits versecondary eneficiaries.Wheneverhereare primary eneficiaries,odeath benefit shall b€ paid to secondarybeneficiaries.
If herearenoprimary eneflciariest he imeof death,he deathbenefit hallbe paid o hissecondary eneficiaries.lf thedeceasedmployee asno beneficiariesat the imeof hisdeath,he deathbeneftt hallacciueo the Employees'ompensationund
(Sec. 2, Rule XV, Amended Rules on
Employees'ComPen ation).
Persons Entitledto Funeral Benefits1. Surviving pouse;2. Legitimate child who spent for funeral
services,or3. Any other Person who can show
incontrovertible roof of havingborne he
funeral expenses (Rule Xl, Amended
Ruleson Employees' ompensation).
CHAPTERVIII. PROVISIONSCOMMONTO
INCOME ENEFITS
ART.201PRESCRIPTIVEERIOD
Despite the three-year prescriptive,-period
expressly provided in Att. 201 a
compensation laim may be flled beyond-this
but'before
the lapse of the tenth year from
accrual of the cause of action, applying
Aft.1144 of the Civil Code (Manila Railroad
Co. v. Perez, GR No. L-21071, June 29,
1s:5).
The three years have to be counted rom the
time the employee gst his earning capacity,not from the timethe illnesswas discovered
(ECC v. Sanico GR No. 134A8, December
17 ,1999 )"
CHAPTER IX. RECORDS, REPORTS AND
PENALPROVISIONS
ART. 206 NOTICE OF SICKNESS' INJURY
OR DEATH
General Rule: Notice of sickness, njuryor
death shall be given to the employerby the
employeeor by his dependentsor anybodyon
his behalfwithin5 days rom he occurrence f
the contingency.
red if:
. 6 3
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LABOR AW
LABOR ELATIONS
TITLEONE: POLICYAND DEFINITIONS
Labor Relations - the interactionsbetweenthe employer and employees and theirrepresentatives nd the mechanismbv whichthe standardsand other erms and cohditions
of employmentare negotiated,adjustedandenforced. (The Labor Code with Commentsand Cases20O7,Azucena, ,tol. t, p.10)
Labor Relations Laws - define the status.rights, and duties and the institutionalmechanisms hat govern the individualandcollective interactions of employers,employees or their representatives.(Everyone'sLabor Code,Azucena,2ffi7, p.4\
Note: Absentan employer-employeeelation,there s no laborrelation o speakof. lf there sno Er-Ee relationshipbetween the parties,there s no basis or organizingor purposesofcollective argaining.
"Labar Relations" rnay be distinguished from"labor standards" n that the latter is that partof labor law which prescribes he minimumtermsand conditions f employmentwhich heemployer s required o grant o its employees.(The Labor Code of the philippines
Annotated2005,Chan, Vol. lll
CHAPTER . GENERALPROVISIONS
ART.211:DECLARATION F PoLIcY
Collective bargaining process is possible onlywhenthere s a labororganization,.e .1. Labor union; or2. Employee assocjafion.
r i ' , , ,
Labor relations policy under the LaborCode is embodied in Secffon3, ArticteXiltof the 1987Constitutionwhich guaranteesto allworkers heirright,amongothers, o:a. Self-organization;
b. Collectivenegotiations;
bargaining and
c. Peaceful and concerted activitiesincluding the right to strike inaccordancewith law; and
d. Participate in policy and decision-makingprocesses ffeSing heir rightsand benetitsas may be providedbylaw.
Parties to Labor Relations Cases -
1. Employee'sorganization;2. Management;3. The public - always to be considered in
dispute between abor and capital,and ithas been held that the rights of thegeneralpublicare paramount; nd
4. The Stde.
Note: Employerand employeesare ACTIVE
parties while the public and the state ,arePASSIVEparties. Poquiz,2006,p.3)
Principle of Non-Oppression - mandatescapital and labor not to ac't oppressivelyagainsteach other or impair he interest andconvenience f the public. The protection olaborblausen the Constitutions not designed
EIGCUTIVECO}I*IITTEE:FTEKIEL oSHUA VILLENAovenll chairperson,MINISTERmbtses ou chairperson or academks, DJoANlvlE IoMARE JUNASAchakperson or hotel operations,MARIEMICAELA tA, ANA vice-chairpersonor operationr MIKHAILMAVER|cK UMACDER ke-chairperrcn or secretariatJACKIE ou LAIVIUGke-chairpersonor finance,DIANAJEANTUAzoil vke.chairperson or edp, JASSENMLPH LEE ice.chairpersonor logistks
5UBJECT OMMITTEEHARoLD lnlsrAN TALLEDOubiectchak,AYLAHERAZADEALENDABssistant ubjectchair,plNKyvELoso edp, NEoVALERIoaborstandards,MARK ESTERAMoNDoNG abor elations,DoNNAFRANCESLADEsochi regishiion
third
the disputedisputantso
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Ssn #eDa€ollegeofAstn
2011CENTRALIZEDAROPERATIONS
Arbitration thesubmissionfa disputeo animpartialersonor determinationn he basisof evidence ndargumentsf the parties. he
arbiteisdecision r awards enforceableponthe disputants.This maybe voluntaryorcompulsory.
For 4ft. 211 (9.), see Ad. 255 for morediscussions.
CHAPTERI.DEFINITIONSART.212: EFINITIONSEmployer1. Onewho employshe services f others;
one for whom employees ork and whopays their wages or salaries (FeatiUniversityv. Bautista,GR No, L-21278December 27, 1966\ +*r-i,.-
2. Any person acting in the interest of anemployer, direetlyor indirectly.The termdoes not include a labor organizationorany of its officers and agents, EXCEPTwhen acting as an employer. The merefact that respondent s a labor union doesnot mean it cannot be considered anemployer for persons who work for it.Much less should it be exemoted fromlabor laws. (Eautistav. Inciong, GR No. L-52824, March 16, 1988)
Emptoyee includes:CED)1. Any person n the employof an employer,2. Any individualwhose work has geasedas
a result of or in connection with anycurrent labor dispute or because of anyunfair abor prdctice f he has not obtainedany other substantially equivalent and
regularemployment'3. One who has been g[ismissedrom work
but the legality of the dismissal s beingcontested in a forum of appropriatejurisdic{ion Q.A. No. 4A03, March 15,2@3).
The term shall not be limited to theemployeesof a particular mployerunlessthe code explicitly tates.
' )
1 : - '
Types of Employees under the Latnr Code1. Managerial2. Supervisory3. Rank-and-file
Labor Organization - any union orssociation of employees which exists inwhole or in part for the purpose of collectiveoargainingwith employersconcerning ermsandc-onditionsf'employment.
Legitimate Labor Organization - any labor
organization which is duly registered with
DOLE: the term includes a local/chapter
directlycharteredby a legitimate ederationor
nationalunionwhichhas beenduly reported o
the Department n accordancewith Section2,Rule Vt, Book V, IRR of LC (See notesunder
Atts. 234 and 242, LC).
Company Union - any labor organization
whose formation, function or administration
has been assistedby any act definedas ULP
under he LaborCode.
Bargaining Representatiye - means a
legitimate abor organizationwhether or not
employedby the emploYer.
Labor Dispute - includesany controversyor
matterconcerning:1. Termsor conditionsof employment;OR
2. Associationor representationof persons n
negotiating, ixing, maintaining,changing
. or arranging he terms and conditiortsoi
employment.
REGARDLESS of whether the disputants
stand in the proximate relation of employer
and employee.
Test: Depends on whether it involves or
concerns erms, conditionsof employment,or
representation (SMC Employees Union'
PTGWA v. Bersamira, GR /Vo. 87700' June
13, 1990).
Even the questionof employer-employeeEr.
Ee) relationshipcan be considereda "labor
dispute".
Types of Labor DisPutes1. LaborStandardsDisputes ComBeWo)
of theagent of
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LABORLAW
LABORRELATIONS
bargainingunit which is the majorityunion);
c. Bargaining disputes (e.9. refusal to
bargain (ULP); bargainingdeadlock;economicstrikeor lockout);d. gontract administration r personnel
policy disputes (e.9. noncompliancewith CBA provisions (ULp if grossnon-compliance with economicprovisions); disregard of grievancemachinery; violation of no strike/nolockoutagreement); nd
e. Employment tenure disputes (e.g.non-regularization of employees;
illegal termination; non-issuance ofemploymentcontract).
Parties toaPispute1. PrimaryParties
a. Employerb. Employeesc. Union
2. SecondaryPartiesa. Voluntaryarbitratorb. Agenciesof DOLE BLR,VAC)
c. NLRCd. Secretary fLabore. Officeof the President
Managerial Employee - one who is vestedwith powers or prerogatives o lay down andexecute managementpoliciesand/or to hire,transfer, suspend,. ay off, recall, discharge,assignor disciplineemployees.
Supervisory Employees - those who, in theinterest
of the employer, effec.tivelyrecommend such managerial actions if theexercise of such authority is not merelyroutinary or clerical in nature but requiresindependentudgment.
All employees not falling within any of theabove definitions are RANK-AND.FILEEMPLOYEES
Voluntary Arbitrator (ANCA)1. Any peqg Accredited.by the
Board assuch;o; ": i2. Any person Named or designated n the
CBA by the parties,to act as theirVoluntaryArbitrato[ or
3. OneQhosenWth or without he assistanceof the NationalConciliation nd MediationBoard pursuant to a selection procedureagreedupon n the CBA;or
4. fnV ofRciat hat may be Authorized by the
lecretary of Labor to act as VoluntaryArbitrator upon the wriften request andagreement of the 'parties to a labordisoute.
TITLE TWO.NATIONAL LABORRELATIONSCOMMISSION
CHAPTER I.COMPOSITION CREATION AND
ART. 213: NATIONALLABOR RELATIONSCOMMfSSION as Arnendd by R.A. 9347,July 27,2006)
NLRC - an administrativebody with quasi-judicial unctionsand the principalgovernmentagency that hears and odecides labor-managementdisputds;attached o the DOLE
for programand policycoordination nly.
Compositionc 1 Chairman; and. 23 Members.
EIGHT 8) memberseach, shall be chosenONLY from among the nominees of theworkers and employers organizations,respectively. The Chairman and theSEVEN (7) remaining members shall
-,cofir€ from the public sector, with the latter
to be chosen PREFERABLY rom amongthe INCUMBENT ABORARBITERS.
Upon assumption nto office, he membersnominatedby the workers and employersorganization shall divest themselves ofany affiliation with, or interest in thefederation or associationto which they
' belong.
Note: The compositioh of the NLRC is
trisectoral. Tipartism is representationof thethree sectors public or govemment,
employers and'the workers - in policy-making-
bodies of the government. Tripartism isobserved n numerousgovernmentagenciesor nstrumentalities
2 . F
basis, to
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other divisionwhosedocketallows headditional orkload ndsuch ransferwillnol .expase litigants to unnecessaryadditionalxpense.
Division (Eight Divisions Each W,th gMembers)1. Adjudicatory;2. Allotherpowers,unctionsndduties: nd3. Exclusiveppellateurisdictionvercases
within their respective territorialjurisdiction.
Adjudication f Cases TripleC)1. TheNLRCadjudicatesases ydivision.
A goncurrence l 2 votess neededor avalidudgment.
(Wheneverhe requiredmembershipn adivision is not complete and theconcurrenceof the commissionersoarriveat a judgment r resolutionannotbe obtained,heChairmanhalldesignatesuchnumber f additionalommissionersfrom the other divisionsas mav benecessary.
2. lt shall be mandatoryor the divisionomeet orpurposesfgonsultation.
The conclusionf a division n anycasesubmitted o It for decisionsnoutOOereachedn consultationeforehe case sassignedo a memberor hewriting f heopinion.
3. A Qertificationo thisetfect igned y hepresidingcommissionerf the divisionshall be issued(copy aftached o therecordof the caseand servedupon heparties).
Qualificationsof the Chairman and theGommissionercArt. 21e1. Must ea memberf hephilippineBar,2. Musthavebeenengagedn hepracti-e f^; l.3-_w.,Ijng.ifhitip.pinesor at eas '15 ears;3. Must':hiiVeeiperienceor exposure n
handlingabormanagementeiationsorat east5 years; nd4. Preferably resident f the regionwhere
he s o holdoffice.
Qualifications of Executive . LaborArbiters/LaborArbiters (Art.21q1. Mustbemembersf thephitipfineBa62. Musthavebeenengagedn ti"ripractice f
law.nthePhilippinesor at easi10years;and
3. Must have experience or exposure inhandling abor management elations orat least5 years.
Term of Office of the Chairman.Commissioners,and Labor Arbiters(Art.21qTheyshallhold officeduringgoodbehavioruntil they reach the AGE OF 65 unlessremovedor causesas provided y law orbecome incapacitatedo discharge thefunction f hisoffice.
A.PROVIDEDOWEVER,hat he PresidentftheRepublic f he Philippines ayextendhe
servicesof the commissioners nd laborarbiters p to the maximum ge of 70 years
";;l,1lpofrhe recommendationf the commissionenbanc.
JurisdictionExclusiveandOriginal1. Certifled ases- cases certifled o it for
compulsoryrbitrationy he Secretaryf*Labor, underArf. 263 or the President
underArt.264:
2. lnjunction asesunder Afts.218 and 264;ano3. Contempt ases
ExclusiveAppellate1. Casesdecidedby LaborArbitersunder
Att. 217[b]of the LaborCodeand Sec. 1OR.A. 8042 MigrantWorkersct);and
2. Casesdecided y the RegionalOfficeS fDOLE n the exercise f its adjudicatoryfunction nderAd. 129of the LaborCodeover monetary claims of workersamountingo notmorehanP 5,000.
Judicial ReviewFindings of facts "q[accorded he
Ahl $Rs*}$a
BarangayBarangayabor cases
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LABORLAW
LABORRELATIONS
are merely suppletory n charactervis-a-vislabordisputeswhichare primarily overnedbylabor laws (Montoya v. Escayo, GR Nos.
82211,March21, 1989).
ART. 214: HEADQUARTERS, RANCHESAND PROVINCIAL XTENSION NITS
The Commissionand its first, second, third,fourth, ifth and sixth divisionsshall have theirmain offices in METROPOLITANMANILA,and the seventhand eighthdivisions n thecities of CEBU and CAGAYAN DE ORO,respectively.
ART. 216: SALARIES, BENEFITS ANDOTHEREMOLUMENTS.. The Chairman and members of the
Commission'shalf..:havehe same rankreceive an annual salary equivalent o,and be entitled o the same allowances,retirement anci benefits as, those of thePresidingJusticeand Associate Justicesof the Courtof Appeals, espectively.
o Labor Arbitersshall have the same rank,receivean annualsalaryequivalent o andbe entitled to the same allowances,retirement and other benefits andprivilegesas those of the judges of theregionalrial courts.
CHAPTER I. POWERS ND DUTIESART.217: JURISDICTION OF LABORARBITERSAND THECOMMISSION
Exclusive and Original Jurisdiction ofL-aborArbitersEXCEPT as otherwise provided under thisCode, the Labor Arbitersshall have originaland exclusiveurisdiction o hear and decide,WITHIN 30 CALENDAR DAYS after thesubmission of the case by the parties fordecision without extension, even in theabsence of stenographicnotes, the followingcases involving all workers, whetherag i cu tural or n on-ag cultural: (UTR-DV-EeOcDo)1. ULPcases;
2 fgrmiqtigndisputes; .'3. lf''' abibmpanied with
'actaim ior
Reinstatement,hose that workers fileinvolvingwages,rates of pay, hours ofwork and other ermsand conditions femployment,
4. Claims or actual,moral,exemplary ndother ormsof Qamages rising'from r-
l Ee relations,5. Casesarising rom any Violation f Art
24, including questions involving the
legality fstrikesand ockouts;6. Except claims for Employment
Compensation,ocialSecurity, hilhealthand
{ lvr t+tntk i vihtr-no'l Fvfl,'t,
hr,l^ iYl ril,tl,(A d$rffl .o
and maternity benefits, all other claimsarising from ft@ relations, includingthose of persons n domesticor household
service, involving an amount exceedingP5,000 regardless of whetheraccompanied withreinstatement:
a claim for
7. Monetaryclaims of gverseascontractworkers risingromEr-Ee elations nderMigrantWorkersActot 1995;
8. Wageglistortionisputesn unorganizedestablishmentsot.voluntarilyettledbytheparties ursuanto RA6727;
9. Enforcementf gompromise greements
when here s non-compliancey any ofthe partiespursuanto Art. 227 of theLaborCode, samended;nd
10.Qther ases s maybe provided y aw.
Note: Although he provisionspeaks ofEXCLUSIVENDORIGINALURISDICTIONof LaborArbiters,he casesenumerated ayinstead e submittedo a voluntary rbitratorby agreement f thepartiesunderArt.262.
The law prefersvoluntaryover compulsoryarbitration.
Ihe cases hata LaborArbitercan hearanddecideare employmentelated.Whereno Er-Ee relationdhipxistsbetweenhe parties ndno ssue s nvolved hichmaybe resolved yreferenceo the Labor Code, other laborstatutes, or any collective bargainingagreement,t is the Regional rialCourt hathas urisdiction LapandayAgicultural Dev't.
Corp.v. CA, GR No. 112139, anuary31,.2000\.
The Labor Arbiter hascontroversies involving
jurisdictionoveremployers and
is a "reasonablemployees only if.causal claim
(EVtA\&i
CasesmachThe foll
disposed
be
referring
CA,X.|, -l
The q
[:abor,claimsstatutrJose1eeg).
the same tovolunta.ry rbitr
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2011CENTRALIZEDAROPERATIONS
1. Disputes on the interpretation orimplementationf CBA;and
2. Disputes on the interpretation orenforcement of company personnelpolicies.
No Jurisdiction over the Following:1. Foreign governments (JUSMAG-
Philippines v. NLRC, GR No. 108813,December 15, 1994)',except when thefunction of the foreign entity partakesofthe nature of a proprietary activity, itimpliedly divested itself of its sovereignimmunity rom suits.
2. International agencies (Lasco v.UNRFNRE GR No. 109095-109107,February 23, 1995);
3. Intra-corporate isputes which fall underP.D. 902-A and now fall under thejurisdictionof the regular courts pursuantto the new Securities Regulation Code(Nacpil v. lBC, GR 144767, March 21,2AOAi
4. Executing money claims againslgovernment (DAR v. NIRC, GR No.
104269,November11, 1993\;5. Cases involving GOCCs with originalcharters which are governed by civilservice aru, ules-or egulationsAtt- X-4,Sec.2, No. 1, 1987 Consf.),
6. Local water district (Tanjay Wabr Astidv. Gabaton, GR Nos. 63742 and U300,April 17, 1989) except where NLRCjurisdiction is invoked (Zamboanga CityWater District v. Buat, GR No. 104389,May 27, 1994);
7. The aggregate money claim does not
exceed 5,000 pesosand without claim orreinstatement{Rajah Humabon Hotel, lnc.v. Trajano, GR No. 100455 September17,1ee3);
8. Claim of employeeor cashprizeunderthe lnnovation rogram f the company,although rising rom employer-employeerelationship,s onerequiring pplicationfgeneralcivil law on contractswhich iswithin he urisdic'tionf the regular ourts(San $iguel Corp.. -1NLRC,,pR Ng. L-
80774,May31,1988);9. Cause f action s based nquasi-delictrtort whichhasno reasonable onnectionwith any of the claims'enumeratedn Art'217
ot the Code Ocheda . CA,GR No.85517,October16, 1992\,
10.Complaintarising from violationof atrainingagreementSingapoieNrlines .Pano,GR No.L47739,June22, 1983);
11.When heLaborArbiters an inconvenientForumunder he Doctineof ForumNonConveniens (Communication Materials
and Design lnc. vs CA, 260 SCRA 673,
[1ee6]).
12.Termination f membershiPn aCooperative rganizedunderRA No. 6938
otherwise known as the CooperativeCode
of the PhiliPpines.
2OOSNLRC Rulesof Procdure on Venue of
Fil ing Cases1. All cases which Labor Arbiters have
authority to decide may be filed in the
RegionalArbitrationBranch(RAB) havingjurisdiction over the fVorkplaceof the
complaina VPetitiner.
Note: WORKPLACE s understoodo be
the placeor locality here he employees.' ' ' ;regularly assignedwhen the cause of
action arose. lt shall include the place
where the employee s supposed o report
backafter a temporarydetail'assignment,
or travel.
ln case qf field employees,as well as*' ambulant or itinerant workers, their
workplace s:a. Where hey are regularly ssigned;
b. Where hey are supposedo regularly
receive heirsalariesandwages;
c. Where theY receive their work
instructionsrom,andd. Report he resultsof their assignment
to theiremPloyers.
2. Where 2 or more RABs have urisdiction
over the workplace, the first to acquirejurisdiction hallexcludeothers.
3. lmproper venue when not objected tobefore filing of position papers shall be
deemedwaived.4. Venue may be changed
agreement.of
thedifferent124193,
Service ofln the
by writtenwhen the
Miter so
valid waiver
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LABORLAW
LABORRELATIONS
judgment enderedby the laborarbiterare nulland void.
Compulsory ArbitrationThe processof settlementof labordisputesbya governmentagencywhich has the authorityto investigateand make awardbinding'on allthe parties.Labor arbiter has the authority oconductcompulsory rbitrationPAL v. NLRC,GR No. 55159,December22, 1989\.
Note: The NLRC may conduct compulsoryarbitration ONLY in national interest casesreferred o i t by the DOLESecretary.
ART. 218:POWERSOF THECOMMISSION
Powers of the NLRC (R€iE6€l)1. lule-making pover (promulgation f rules
and regulations:a. governingdispositionof cases before any of itsdivisions/regional ffices;b. pertaining oits internal functions; c. as may benecessary o carry out the purposesof thisCode )
2. Power to issue Compulsory processes
(administeroaths,summonparties, ssuesubpoenas);
3. Power to lnvestigate matters and heardisputeswithin ts urisdiction adjudicatorypower original and appellatejurisdiction);
4. Contemptpower;5. Qcular nspection Art. 219);and6. Power to issue njunctionsand restraining
orders.
Injunction or TROOrderswhich may require, orbid,or stop thqdoing of an act. The power of the NLRC toenjoinor restrain he commission f any or allprohibitedor unlawfulacts underAftide 218 ofthe Labor Code can only be exercised in alabordispute.
Note: A restraining rder s not an injunction tall but a writ to compel parties o maintain hemattersin controversy_instatus quo until the
question'of whether or not a tempoiary orpreliminarynjunctionought to be issuedmaybe determined. (BF Homes v. Reyes, March16,1971\
Who May ssue1. President (Art. 263[9]);2 Secretaryof Labor (Aft. 263[9]);and3. NLRC (Art.218);
Note: There s no law which empowersLaborArbiters o issue a TRO or Injunc.tion. ence,
[nlr,rnoh']mvrf^g ih^4rd rX,tmLft as trnil ar
0f { hth'u ruauYrQ)t tuvryld..
Labor Arbiters cannot issue a TRO or anInjunction.
Procedure for the lssuance of RestrainingOrder/ |njunction: (DVH-RFB)1. There must irst be a laborglispute.2. Filingof a yerifiedpetition.3. Hearingafter due and personalnotice has
been served, in such manner as theCommission hall direct, o:a. All known personsagainst whom the
relief s sought;and.b. Also to the chief exed€itive r other
public officialsof the provinceor city
within which the unlawful acts havebeen threatened or committedcharged with the duty to proted thecomplainantsproperty.
4. leception at the hearing of . thetestimoniesof witnesses with opportunityfor cross-examination,n support of theallegationsof the complaintmade underoath as well as testimony in oppositionthereto.
5. Finding of ac{ of the Commission o theeffect that :a. Prohibitedor unlaMul acts have been
threatened and will be committed, orhave been committed and will becontinued unless restrained, but noinjunction or temporary restrainingorder shall be issued.on account ofany threat, prohibitedor unlaurful ct,except against the persons,association r organizationmaking hethreat or committing he prohibitedorunlavvfulact or actually authorizing or
ratifying the same after actualknowledge hereof;
b. Substantiat and ineparable injury tothe complainantspropertywill follow;
thatthe
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2011CENTRALIZEDAROPERATIONS
matter in controversyand which isappropriate to the particularcircumstancesof the case. lf the
remedy s specifically rovidedby law,it is presumed o be adequate PAL v.NLRC. GR No. 120567, March 20,1998r,
e. that public officers charged with theduty to protectcomplainant's roperty
are unable or unwilling to furnishadequateprotection.
6. Postingof a ond.
Injunction from NLRC is NOT the ProperRemedy against EmployeeDismissalThe power of the NLRC to issuean injunctivewrit originates from "any labor dispufe" uponapplication by a party thereof, whichapplication f not grantedmay cause grave orirreparable damage to any party or render
ineffectual ny decision n favorof such party.
It is an essential equirementhat there mustflrst be a labor disputebetween he contendingpartiesbefore he laborarbiter. n the present
case, there is no labor dispute between thepetitionerand private espondent s there hasyet been no complaint or illegaldismissal iled
with the labor arbiter. (PAL vs. NLRC, G.R.No. 120567,March 20, 1998).
Requisites Before TRO May Be lssued ExParte (STU)1. The complainant hallallege hat, unlessa
TRO is issuedwithoutnotice,a substantialand irreparable injury to complainantspropergwill be unavoidable;
2: There s estimonyunderoath, sufficient, fsustained, to justify the Commission inissuing a temporary injunction uponhearingafternotice Affidavit f Merit);and
3. The complainant shall first file angndertaking with adequate security/bondin an amount to be fixed by theCommission sufficient to recompensethose enjoined for any loss, expenses or
_d3nage"€V9ed
by .tne improy"idpntor' 'enor{eotr:s'issuance'
bf such' brdei' orinjunction, ncludingall reasonablecosts,
together with a reasonable attorney's fee,and expense of defense against thegranting of any injunctive elief sought inthe same proceedingand subsequentlydeniedby the Commission.
Note: The TRO shall be effective for NOLONGERTHAN 20 DAYS ripon the postingofa bond, and shall become void. after theexpiration of the 20 day period.
It may be lifted or it may be upgraded o a
permanentnjunction.
The TRO takes effect upon its issuance, if abond is posted and not upon receipt of th-e
parties. (A.M. No. RTJ-9&1405' Apil 12 '
2000\
The procedural nd sub$antial equirements
of Art. 218[e]must be strictly compliedwith
before an-injunction
may issue in a labor
dispute.*.
ART.219:OCULAR NSPECTION
The Chairman, any Commissioner,Labor
Arbiteror their duly authorized epresentativesmay,at anytimeduringworkinghours:
1. ".'eorrduct an ocular inspection on any
establishment, ui lding, ship, place or
premises, including any work, material,
implement,nrachinery'appliance or any
object herein;and
2. Ask any employee, aborer,or any person
as the case may be for any information r
* date ,conierning any matter or question
relative o the objectof the investigation'
ART. ?21: TECHNICAL RULES NOT.
BINDING AND PRIOR RESORT TO
AMTCABLE ETTLEMENT
TechnicalRulesNOTBinding
Administrativeand quasi-judicialbodies like
ihe NLRC are not bound by technical rulesof
procedure n the adjudicationof cases (Ford'Phits.
SatariedEmsoyees Assoc' v' NLRC'
GR No. 75347,December 11, 1987)'
Rules of evidence are not strictly observed inthe proceedings before the NLRC (Bant9li79,
et it. v. Coca-bola BottlersPhils-, nc', GR No'
RESquasi
thepartiexplq(Uua
NLRC1. Motion
the
onover he
venue. resshopping;
subjectjudicata,
153660.une1O,
and
7t
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LABOR AW
LABOR ELATIONS
2. Motion or Billof Particulars:3. Motion or NewTrial;4. Petition for Relief from Judgment when
filed with the laborarbiter;5. Petition for Certiorari, Prohibition and
Mandamus;6. Motion to declare respondent n default;
and7. Motion or reconsideration r appeal from
any interlocutory rderof the laborarbiter.Amicable SettlementThe Labor Arbiter shall exert all efforts toarrive at an amicable settlementof a labordispute within its jurisdictionon or before its
first hearing or during the mandatoryconferencesset for the purpose (The rules forMandatory Conciliation/Mediati on Conferenceare 'provided
for under Rule ,V,.of the 2005NLRC Rules).
Approval of a Compromise Agreement by aLabor ArbiterThe c'ompromise greement hall be approvedby the Labor Arbiter, f:1. After explainingo the parties,particularly
to the complainants, the terms andconditions nd consequenceshereof;2. He is satisfied hat they understand he
agreement;3. That the samewas entered nto freely and
voluntarily y them;4. And that it is not contrary o lanv,morals,
and public policy(lbid).
ART.222:APPEARANCES ND FEES
Appearance of Non{awyers before theCommission
General Rule: ONLY lawyers can appearbefore he NLRCor a LaborArbiter.
Exceptions: Non-Lawyerscan appear ONLYin the follolving nstances:1. He represents himself as party to the
case:2. He represents a legitimate labor
org?nizationwhichis
q parfyto the casepi'wided that he shall be made to present
a verified certification from saidorganization hat he is properlyauthorized;
3. He represents memberor membersof alegitimate labor organizationexi$ing inemployeis establishment:
4. He is duly accreditedmemberof any legalaid office duly recognizedby the DOJ orIBP;
5. He is the owner or president of acorporationor establishmentwhich is, aparty to the,case. (Sec. 8, 20OS NLRCRuJesJ
Attorney's Fees1. Art.111 SimpleMonetary laim)
a. The maximum mounto be givena
lawyer for his legal assistancerendereds 10%of thetotalmonetaryaward adjudged the emPloYeesexcluding he award for moral andexemplaryamages. o demandmorethan his s unlawful.
b. The attomey'sees maybe awardedONLYwhen he withholdingf wagesis declared nlaarful.
c. Thebasisof the 10%adorney'sees stheamount fthewages ecovered.
d. Should herebe any othermonetaryawards iven n the proceedings,hesame may not be assessed or
.subjectedo the 10olo ttorney'sees.
2. Art.222a. Attorney'sees for CBA negotiations
andconclusionhallbe n the amountagreed ponby hepartieso be akenfrom the, union unds and not fromindividualnionmembers.
b. ThisArticleprohibitshe payment fattorney'seesonlywhere hesame seffected hrough orcedcontributionsfrom heworkersrom heirown undsas distinguishedromunionunds.
c. Neith'erhe lavyernor he union tselfmay requirehe individual orkersoassumethe obligation o PaY theattorney'sees rom heirownpockets.Anyagreemento thecontraryhallbenull ndvoid.
Articfe111vs. Article222
Prohibits he award ofattorney's fees whichexceeds 10o/o
#ili*Ltr
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2011CENTRALIZEDAROPERATIONS
2.J.
CHAPTER II. APPEALTO TI'IENLRC
ART.223:APPEAL
Grounds for ApPeal (FLEP)
1. lf the decision, order or award was
secured through fraud or coercion,
includingraftandcorruPtion;lf madepurely nquestionsf Law;lf seriousrrors in the indings f factsareraised which would cause grave orirreparabledamage or injury to theappellant;ndlf there sPrimaacieevidencef abuse f
discretionn hepart
of he LaborArbiter.Periods within which to APPeal1. Declsionsof the RegionalDirector - within
5 calendardays from receiptof the order(Att.129, LC - RecoverYof wages and
simple money claims of an amount not
exceedingP 5,000)2. Decisions of the Labor Arbiter - within 10
calendar days from the receipt of the
decision.
Note: Ifie Code stafes calendar, not workingdays. Hence, in counting he lGday period,
Saturday, Sunday, and Legal Holidays are
INCLUDED. (Vir-Jen Shipping and Marine
Services v. NLRC GR L-58011-12, July 20,
19821.
lf the 10s or 5h day, as the case may be, falls
on a Saturday,Sundayor holiday, he last day
to perfect the appeal shall be the first working
day following such Saturday, Sunday or
holiday.
No Motion for Reconsiderations available n
questioninghe LaborArbiteis decision 2@5NLRC Ru/es).
Period to Appeal NOi ExtendibleThe perfection of an appeal within the
slatutory/reglementaryperiod is not only
MANDATORYbut alsoJURISDICTIONAL nd
tailure; to, ;do. so render$..he ,.questioneddbcisiijn final and executoryas to deprive the
appellatecourt ofjurisdiction
o alterthe final
judgment of the RegipnalDirectorsand Labor
Arbiters (ACDA v. NLRC, GR No. 51607;
Volkschelv. NLRC, GR No. L-39686,June 28,
198O;Aboitiz Shipping EmployeesAssociationv. Trqjano, GR No. 112955. September 1,
1e971.
Requisites for the Perfec-tionof an Appeal
to the NLRG (VTP-BPC)
1. Filingof a yerifiedmemoranQum f appeal
containing,the grounds, issues raised and
argumentspropoundedand reliefssoughl
wiinin tne requiredperiodof appeal and
with a statement of the date appellant
received he appealeddecision,order orresolution,
2. In lhree legibly typewritten or printed
copies;3. Proof of payment of the requiredappeal
fee;4 In case of monetaryaward' an appealby
the employermay be perfected.onlyby the
posting of a bond (cash depositor surety
bond) equivalent ire':amount to tne
monetary award exclusive of damages
andattorneY'sees;
5 Proof of service upon the other parties;and
6 Qertificdtei+'of non-forum shopping and
verification.
Nore: Where ti ie employer ailed to post a
bsnd to perfect ts appeal, he remedy<'rihe
"n.,iou"i'is a motion fo dismiss the appeal'
Nf: ,-? petitionor mandamus'
Ti, bond is sine qua non to the perfection of
ap;:eal from the laborarbite/s monetary
cieirsion (Catubay, et al. v' NLRC' GR No'
11:.)-8g,'April
tz, 2000); property-bondac,,rptible (tJERM-Memorial Medical Center
', '-nC: GR No. 110419' March3, 1997)'
N.; ,notion o reducebondshall be entertained
e,o, pt on meritoriousgroundsand.only upon
tlr: -rostinQf a bond n a reasonable mount
in relation o the monetaryaward' The .merefilin"r of a motion to reduce bond wilnoul
ccr'-iplyingwith these requisites will not stop
tn+ 'unningofthe period o appeal'
Fai:,rre o give a
apiellee within10
insofarcoircerned
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LABOR AW
LABOR ELATIONS
There s no needfor a motion or the'issuance
of writ of executionon the reinstatement rcler
as it is self-executory (Pioneer TexturizingCorp. v. NLRC, GR no. 11651 Qctober16,
1997).
Reinstatement Pending Appeal under Art.
223 vs. Order of Reinstatement under Art
279.
Dev't. Bank v. Association of Lttzon DevT'
Bank,GR No. 120319,October6, 1995)'
1. The way to review NLRC decisions s by
special'ciit
action of certiorai, prohibition
or mandamusunder Rule65 of the Rulesof
Court.
Notel A petition for certiorarishall NOT
STAY (or suspend) the executiol 9f- 1h"assaileddecisionof the NLRC UNLESS a
TRO ls issuedby CA or SC (Sec' 10, Rule
XI, NLRCRutes,20O5)-&i '
2. Jurisdictionbelongs o SC and CA, but inline with the dodrine on hierxchy of coutts'
the petition should be initially presented to
fhe CA (Sf. Martin's Funeral Hgme .u.wmc, oh wo. 130866, SePtember 16'
1988).3. io iotion for reconsideration is allowed for
any order, decision or award of a labor
arititur. However, a Motion for
Reconsideratioruof a Labor Arbitefs
decTSion,ward or order which has all the
elementsof an appOalmay be treated asappeal.
4. Only one Motion or Reconsideration f the
decision,award or order of the commlsston
in casesappealedbefore t is allowed'
Procedure on Gases Originally Filed with
the Labor Arbiter
Options of the Employer in Complying with
an Order of Reinstatement which is
Im med ate and Self€xecutory1. He can ADMIT the dismissedemployee
back to work under the same terms andconditionsprevailingprior o his dismissal
or separation or to a substantially
equivalentposition f the formerposition s
already illeduP;OR2. He can REINSTATE he employeemerely
in the PAYROLL. with PaYment of the
accrued alaries.
Note: The exercise of one of the foregoing
options may be compelled under pain of
contempt and the empoyer may be made topay he salaryof the employeenstead.
Payroll ReinstatementOne where an employee s paid his monthly
salary without making him perform actual
work. lt applies in terminationcaseswhere the
labor court declares he dismissal llegal and
orders reinstatement f the employee,but the
employer does not want to actually or
physicallyreinstatehim and instead,at the'enptoyefs
option, merely)reirstates the
employee n the payrollpendingappeal.
Judicial Review Rules
No law allors an appeal roma decisionof the
Secretary of Labor, or the NLRC, or of a
voluntaryarbitrator.
Note: Decisions of Voluntary Arbitrators are
appeatabfe o the CA under RULE 43 OF THE
RUTES OF COURT n relation o Sec. 9 of BP
Blg. 129. Voluntary Arbitrators are to be
considered as quasi-judicial agencies whose'decisions are appealable to the CA (Luzon
An order of I On the other
reinstatement by the I order of reinstatemertLabor Arbiter
'sI under Art' 279
immediately executory Presupposeshe award
evenpending ppeal.t I thereofs
pursuanto ab similar o a return-to- final and executory
workorder .e. o restore judgment, ndnotwhilethe status quo in the I the case'.u{.9r*1.,,ijtegal
workplace for the I dismissals
pendingon
meantime. i appeal.
Appeal o the NLRC Division(lf 'appeal enied,MR;aPPeal
riom'Nnc to the sec. of Labor
abolishedunderP-D. 1391)
Court of APPeals(Certiorari under Rule 65)
SuPreme ourt
(Petitionor Review nderRule45)
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- Ssn Fets @oltegef {.ltn
2011CENTRALIZEDAROPERATIONS
5. MedArbiten and6. VoluntaryArbitratoror Panel of Arbitrator.
When Writ of Execution May Be lssuedThe foregoing persons or entitiesmay, upon
their own initiative or on motion of anyinterested party, issue a writ of executionon ajudgment within 5 years from the date it
becomes final and executory.
Atter he lapse of the said flveyear period, hejudgmentshall becomedormantand may only
be enforced by an independentactton withinthe next five (5) years.(Phil. National ailways
vs. NLRC, G.R. No. 81231, September 19,1989)
It is settled that once a decision or orderbecomes flnal and executory, t is remtvedfrom the power or jurisdictionof the courtwhich rendered t to further alter or amend it.(Scheing Employees Labor union vs NLRC,G-R.No. 118586,Sept 25,1998)except:1. When there are clericalerrorsor mistakes.2. When the amendment or conection is
meant o harmonize t with usticeand thefacts.3. When the same becomes necessary to
accomplish he aims of ustice.
4. When there are supervening eventsjustifying the amendment of correction.(Yuvs NIRC, G.R.Nos. 11181G11, une16,1e95)
Manner of Execution May Be AppealedFinalityof judgment becomesa fact upon the
lapseof the reglementaryeriodof
appealand
if no appeal is perfected. n such a si tuation,the prevailing party is entitled as a matter ofright to a writ of execr.rtion.
There is a big difference if, what is sought tobe reviewed is not the decision itself but themanner of its execution.While it is true thatthe decision has become final and executoryand so c€rnno longer be challenged, here isno question either hat it must be enforced naqgrrdanceittdh jtsterms and conqitions. The
NLRC has ar,rthoritv' o look - into thec€rrectnessof the executionof the decisionand to considersuperveningevents hat mayaffect such execution(Abbot v. NLRC,GR No.L-65173,October 27, 19861.
Remedies of a third party whose property
has- been wrongfully levied to enforce adeclsion {Gumulative)1. Motion for Exclusion/ Release of the
propefi ,wrongfully evied on executionl
2. SeMce by the third partyclaimanton theofficer making the levy and upon the
judgment creditor of an affidavit of title
fSec. 16, Rule 39, Rulesof Court)' This is
also knownas Terceria;
3. Independent ivil action o recover he titleand possessionof the propertywrongfully
levied on execution (Sec. 76, Rule 39,
Rules of Court) (See Yapangco Cotton
Mills vs. CA, et.al., G R. No' 126322,
JanuarY 16, 2002)
RTC Injunction against NLRC
Generally,not available,r;
HOWEVER,he general ule hatno courthas
the power to interfere by injunction Wthjudgments of another court with
coniunenvcoordinate jurisdiction applies
ONLY when no third-party complaint is
involved (/bid.). Therefore, if the property
under levy does not belong to the judgment
debtor in the NLRC case' it couid not be
validly levied upon by the sheriff-lor..tfqsatisfictionof the judgment herein. f the third
partyclaimantdoes not involvenor grows out
bf*a tabor diSpute, a separate action for
injundive relief against such levy maybe
miintained in court.(Co Tuan et. al. v. NLRC
and CL|JP,GR No. 117232,Apfl 22, 1998)'
TITLETHREE.BUREAUOF LABOR
RELATIONS
ART.226:BUREAUOF LABORRELATIONS
ABSORPTION Y NCMB
Pursuant o E O. 126, he NationalConciliation
and MediationBoard (NCMB) has absorbed
the conciliation, mediation and voluntary
arbitration unctionsof the BLR.
The BLR functions, as it now stancls, are
sucnof
regular
To ac{ on its
of either or both
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LABORLAW
LABORRELATIONS
2. INTER-union onflicts: nd3. OTHER RELATED Labor Relations
Disputes.
Other Related Labor Relations Disputes(Sec. 2, RuleXl D.O. /n-Wl
Shall includeany conflictbetweena labororganizationand the employer or anyindividual,entity,or group that is NOT alabor organization r worker'sassociation.This includes.a. Cancellationof registrationof unions
and workeis associations:ndb. A petitionor interpleader.
Note: E O. 251 OF 1982 removed rom thejurisdictionof the BLR all'
labor-managementdisputes. The effect of E O. 251 is to transferto the NCMB the mediation,conciliation, ndarbitrationunctions f the BLR.
The parties may, by agreement,settle theirdifferences by submitting their case to avoluntary arbitrator rather han taking the caseto the BLR.
E.O. 292 or the 1987 Administrative Codeprovides or the cunent unctionsand authorityof the BLR:
Sec.16.Bureauof Labor Relations The BLRshall:1. Set policies, tandards, nd procedures n
the registration and supervision oflegitimate abor union activities ncludingdenial, cancellation,and revocation oflaborunionpermits,
2. Set policies, standards, and proceduresrelating to collective bargainingagreements, and the examination offinancial recprds of accounts of labororganizations to determine compliancewith relevant als;
3. Provide proper orientation o workers ontheir schemes and projects forimprovement of the standards of living ofworkersand heir amilies.
- r"trio ;6t;onniabetween ndamong nionmembers,ncludinggrievances rising rom any violation f therightsandconditionsf membership,iolationgf or disagreementverany provision f theunion'sconstitution nd by,larrs,or disputesarisingromchartering r affiliation
Inter-union Disputes - referto any conflictbetween and amor\g legitimate fabororganizations involving representation
questionsor purposes f collective argainingor to any other conflictor disputebetween
legitimate abor organizationsbased on anyviolations f their rightsas labororganizations.
Coverage of Inter/lntra-Union Disputes{Sec. 7, Rule Xl, D.O. 404311. Cancellation of registrationof a labor
organization iled by its members or byany other abororganization,
2. Conductof electionof unionand worker'sassociationofficers/nullifcationof electionof unionand workeis association fficers,
3. AudiUaccountsexam.ination f union orworkeis associationundsf"
4. De-registration f CB,\
5. Validityiinvalidityof union affiliation ordisaffiliation;6. Validily/invalidity of acceptance/non-
',,a€oeptancefor unionmembership;7. Validity/invalidity of impeachmenU
expulsion of union and worker'sassociationofficers;
8. Validity/invalidityf voluntary ecognition;9. Opposition to application or union and
CBA registration;10. y'iolationsof or disagreementsover any
provision in a union or worker'sassociationconstitutionand by-laws;
11. Disagreementsover charteringregistration f labor organizationsCBAs,
12. Violationsof the rights and conditionsofunionor workels associationmembership;
13. Violationsof the rightsof legitimate abororganizationq except interpretation ofCBAs;and
14. Such other disputesor conflicts nvolvingthe rlghts to self-organization, union
membership, nd collective argaininga. Between and among lbgitimate abor
organizations;ndb. Between and among members of a
unionor worke/s association.
orand
may file the
pf
of
,tn
ln such
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t J . 4 J$eir #eDs@ollege fL^do
2011CENTRALIZEDAROPEMTIONS
be sought within the union itself, naccordancewith its constitution nd by-
lawsEXCEPT nderany of the followingcircumstances:1. Futility f ntra-unionemedies,2. lmproper xpulsionrocedure;3. Undue elay nappeal s o constitute
substantialnjustice;4. Theactions or damages;5. Lackof urisdiclionf the nvestigating\ body;
Actionof the administrativegencyspatently illegal, arbitrary, and
oppresslve;lssuespurely question f aw;Where he administrativegencyhadalready rejudgedhe case; ndWhere he administrativegencywaspracticallyiven he opportunityo ac1on the casebut t did not.
Effects of Filing or Pendencyof Inter /lntra-Union Dispqte and other LaborRefationsDisputes(Sec.3, RuleXl, Do 40-
03)1. Therights, elationshipsndobligationsfthe party-litigantsgainst achotherandother parties-in-interestrior to theinstitr.tionf the petition hallcontinueoremain uring hependencyf the petitionanduntil he dateof finality f the decisionrendered herein.Thereafter,he rights,relationshipsnd obligationsf the party-litigantsagainst each other and otherpartie+in-interesthallbegoverned y he
decision oordered.2. The filingor pendency f any inter/intra-uniondisputess nota prejudicialuestionto anypetitionor certification lection nd
. shallnotbea groundor hedismissal f apetition for certification election orsuspensionf proceedingsor certificationelection.
Appeal from Decisions of
6.
7.8.
9.
Flowchart ofMed-Arbiters
Bureauof LaborRelations ifthe case originatedrom the
Me&Arbiter/RegionalirectorSec. Of Labor - if the caseoriginatedom theBureau
RegionalOffrceor to the BLR'where he comPlaint riginated(recordsare ransmittedo the
bLR or Sec.within24 hours
from receiPt of thememorandumf aPPeal)
Med-Arbiter/Regional
Director
Appeal o BLR r to the Sec.
" of Lbbor f originatedrom
the Bureau
(Within10 daYsrom
receiptof the decision)
Appeal o the SecretarY f Labor
#*tii flff t*J\x&'1. Underoath{ ConsistoT,€ memorandum.
of appeal3. Based on either of the
following rounds;a. Grave abuse of" discretionb. Gross violation of the
rules4. \ fitr supporting rguments
andevidence
\Mtthin 0 days romreceiptofdecbion
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LABOR AW
LABOR ELATIONS
1. ForgrounolnoEiG--iorganization (LLO) meniOerls) thereof
speciallyoncemed2. For gnoundsunder Sec. 2: any_party_in_
interest
RegionalOffice hat bsued its certncateJiregistration or certificate of creation ofcharteredocal if it involvesaboruniorswithindependent egistration, hartered ocali.worke/sassociation,ts officers rmembers.urrectlywith the Bureau_ if it involvesaFederatiory' ationalUnions;/ndustryUnions,itsofficers, rmembers.
Verified nderoathContainshe ollowing verments:a. Name, address and other persor-ral
circumstanoes f the complain;nt(s)orpetitioner(s);
b. Name, address and other personalcircumstances f the responOentls; rperson(s)harged;
: Nature f hecomplaintrpetition;
d. Factsandcircumstancesurroundinghecomplaintrpetition;e. Causesof actionor specificviolations
committed;f. A statement that the administrative
remediesprovidedor in the constitr.itionand by-larvshave been exhausted;orsuch emedies re notreadily vailabli othe_complainantsr petitionershroughno fault of hiJtheir own, or complian-ewith such adminstative emediesdoes
^ ,. ot apply o complainantsr petitioners.xelrersprayedor;
$ifbae of non-forumhopping; nd
ART.227 COMPROMSEAGREEMENTS
Compromise Agreement - contractwhereby
theparties,
by making eciprocal oncessions,avoid litigationor put an end to one alreadycommenceo.
SubstantialRequirements1. Mustbe reely nterednto;2. Mustnot be contraryo law, rnorals or
4.
publicpolicy;Mustbe reasonable: ndMust be approved by the 4,rthority beforewhom the case s pending seediscussionon Article 221 - approval of Labor Arbiter
of an amicable sdtlement in a case beforehim\
FormalRequirements1. Inwriting;nd2. Signed n the presence f the regional
director or his duly authorizedrepresentative.Sec. 8, Rule ll of theRuleson Disposition f Labor EtandardsCsasesn,fheRegionalOffices)
When May CompromiseAgreementsBeEffectedIt may be effected at any stage of theproceedingsndevenwhen here s alreadyfinalexecutorfudgmentAtt.2040,N CC).
It cannot be entered nto when the finaljudgment is already in the process ofexecutionJesalva,et al. v. Bautista,GR No.L-l192&*L-19330,March24, 1959).
CompromiseAgreementsWith v, WithoutAssistanceof DOLE
Administrative unctions f the BLR1. Regulation f registration f the labor
untons;
? |:gqinS of a registry f aborunions;r. Matntenancefa fileof CBAs; nd4. Maintenancef a fileof all setflementsr. . , final,gecisionsf the supreme@urt,court or appeals,NLRCandotheragencies n
labor isputes.
CasesWhere he BLRHasNoJurisdictionThose
.arsrng from tne imptemiiatiii"ornterpretation of Collective BaroaininoAgreementswhich shal be J;j;; ;g1je.y"lg" procedure and/or utiunt"rvarbitration.
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$un Geld @ollege Lst
2011 CENTRALIZEDAROPERATIONS
Options When Compromise Agreement ls
Violated
1. Enforcecompromiseby writ of execution,or
2. Regard it as rescindedand insist upon
original emand.
Requirementsof a Valid Quitctaim(VAC)
1. The quitclaimmust be yoluntarilyarrived
at by the parties;
2. lt must be with the essistance of the
Bureau of Labor Standards, Bureau of
Labor Relationsor any representative f
the DOLE: and3. The gonsiderationmust be reasonable
(required only when enteredwithout the
assistanceof DOLE).
Note: Dire necessity is not an acceptableground or annulling he releases, specially nthe absenceof proof hat the employeeswere
forced to execute them (Veloso v. DOLE, GRNo.87297, August 5, 1951).
Waiver of ReinstatementLike waivers of money claims, a waiver ofreinstatement must be regarded as aPERSONALRIGHTwhich must be exercisedpersonally by the workers themselves (Jag
and Haggar Jeans and Spodswear Corp. v.NLRC,GR No. 105710,February23, 199q.
ART.231: REGIST.RY F UNIONSAND F]LEOF COLLECTIVEAGREEMENT
The CBA is more than a contract, t is highlyimpressed with public interest for it is an
essential instrument to promote industrialpeace (fUP v. Laguesma, GR No. 9fi13,September 1, 1994).
An Unregistered CBA does not bar
certificationelection (Contract-BarRule will not
apply in the absence of registration). See
notes under Arts. 253, 25?A and 256).
Procedure or Registration
3. The regionaloffice shall furnish he BLR
with a copyof the CBAwithin ive (5) days
from its submission4 The BLR or regionaloffice shall assess
the employer or everyCBA,a registration
fee of not less than P1 000.00 or anY
amount deemed aPProPriate bY the
Secretaryof Labor.
5. lssuanceof Certificate f Registration'
Note: Registration of the CBA is not a
requisiteor its validitY&.
The certification f the CBA by the BLRis not
requiredto put a stamp of validity.to such
contract. Once it is duly entered into and
signed by the parties, a CBA b":ot."=",.
effectiveas between the parties [€$?ICll€ss l+;rr'"t
whetheror not the same has beencertifiedby
the BLR (Libefty Ftour MiltsEmployeesv' LF^h
lnc". oi wos. 58768-70' Deember 29,
r989).
ART. 232t PROHIBITION ON
CERTIFICATION LECTION
Contract-Bar Rule - While a valid and
registered CBA is subsisting for a FIXED
PfRtOO OF 5 YEARS, the Bureau s not
allowed to hold an elec-tioncontestingthe
majority status of the incumbent union
EXbEPT during the sixty (60) day-period
immediately prior to its expiration, which
period s catted freFREEDOMPERIOD'
Note: In the absenceof such timelynoticeor
filing of petition, the contract executed during
the automatic renewal period is a bar to
certifi ationelection.
There shall be no amendment,alteration,or
of cooies f the CBA o,theaib'r Helatioid' i,tn"'resioiiat
offices of DOLE within 30 days fromexecution, ccompaniedy hefolloruing:a. Verified proof of posting in two
conspicuous laces n the place ofworKand
b. Verffied proof of ratificationby themajorily of all the workers in thebargainingnit.
2. Actionupon he applicationor registrationwithinfive (5) calendardays rom receiptthereof
six 6)
havedulY
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LABOR AW
LABORRELATIONS
2.2
It was ratifiedby the unionmembership;It is adequate or it containssubstantial
. As now amended by R.A. g4g1, Art.Zg4makes specific reference o the followingorganizations (not merely to ant
organization) hichmay register s labororganization,o wit:1. Federation2. National nion3. Industry nion4. TradeUnionCenter5. Independentnion
terms and conditions f employment;4. lt encompasses he employees in the
appropriate argai ingunit;5. lt was not prematurely xtended, he CBA
was not hastily entered nto (doctrineofpremature extension does not bar acertification lection :
6. lt is for a definitepeiioO:'7. No schismor massdisaffiliationffects he
contracting nionduring he lifetimeof theagreement;
9. The contracting nion s notdefunct;9. The contracting union is not comoanv_
dominated(see discussionsn Arts.'256-259 Petition for Certification Election).
ART.233:PRTVILEGEDOMMUNICATTON
Privileged Communication _ any statementof such privacy that the law exempts thepe9on receiving he informationrom the dutyto disclose it.
Not AvailabteAs Evidencelnformation and statements
made atconciliationproceedingsshall be treated aspnvrteged ommunication nd shall not beusedas evidence n the Commission.
Conciliators nd similarofficialsmaynot estify
l , "nVcourt or body regarding
"ny,"tt"ri
raKen up at conciliation proceedingsconductedby them.
TITLE FOUR.LABOR ORGANIZATIONS
CHAPTER . REGISTRATION NDCANCELLATION
ART.234:REQUIREMENTS FREGISTRATION
Principle.of Agency Appliedr. r.nnapal _emplovees
2. Agent- tocayihabter3. Agentof agenf-iederation
Purpose-ofFormation ot f-"Lr Unions: forsecuring air and ust wagesand goodworkino
conditions for the labbrers; jnO fo; ih;protectionof laboragainst he unjusi
"*""tion"f capital.
Modesof Acquirinoorganizationsincl
-
1. legistrationwithUnion).
Legitimacy for Labor
the BLR (lndependent
2. Ch.arteringr issuance f a federation rnational nionofa charter erflficate.
-
Any labor organEation-n Seprivate sector organized forcollective bargaining and for
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Sen Eebs@ollegeAetn
2011CENTRALIZEDAROPERATIONS
Classification of Labor Organizations1. National Union/Federation - any labor
organization with at least 10locals/chapters ach of which must be a
* duly certified or recognized collectivebargainingagent.
2. Industry Union - groupof legitimate abororganizationswithin an identified ndustry,organized for collectivebargainingor fordealing Wth employersconcerning ermsand conditions of employmentwithin anindustry or for participating in theformulation of social and employment
policies,standards,and programs n suchindustry egisteredwith DOLE.
3. Trade Union Center - groupof registerednationalunjg1g.or ederations rganizedfor the mutual aid and protectionof itsmembersand for assisting uch membersin collectivebargaining r for participatingin the formulation of social andemployment policies, standards, andprograms duly registered with theDepartment.
4. Alliance - aggregationof unions existingin one line of industry or in aconglomerate,a group of franchisees,ageographicalarea, or an industrial enter.
5. Company union-- a labor organizationwhich, in whole or in part, is employer-controlledor employer-dominated.
Requirements foi the lssuance of theCertificate of Registration of a NationalFederation, National Union or lndustry or
Trade Union. Center or .an lndependentUnion (As Amended By RA. 9481, June 15,n0n1. P 50 registrationee;2. Names of its officers, heir addresses, he
principaladdressof the labororganization,the minutesof the organizationalmeetingsand the list of the workers who participatedin such meetings;
3. In case the applicant s an independentunion, the names of all its members
comprising at least 2Oo/oof all the. employqqg-p the QarBqigrpg pi ,,yQ95_e-t
seeks' to operate '(see Art. "255- fordefinition of bargaining unit);
4. lf the applicant union has been inexistence for one or more years, copies ofits annual inancial reports; nd
5. 4 copies of the constitutionand byJaws ofthe applicantunion,minutesof its adoptionor ratification, nd the list of the memberswho participatedn it
Note: Creatign of a LOCAL CHAPTERdoesnot need subscription of at least 2oo/oof themembers. Minimum number of members
applicaHeonly to registration f independent
un ion.
The LaborCodeand its implementingulesdo
not require that the number of members
appearing on the documents in question
shouldcompletelydovetail.For as long as the
documentsand signaturesare shown to begenuineand regularand the constitution nd
by-laws democratically atified, he union is
deemed to have complied with registrationrequirements (The He.itage Hotel Manila
vs. Pinag-isang galing and elakas ng mga
manggagawa sa Heritage Manila (Piglas-Heritage),G.R. No. 177024, October 30,
2009.)
ART. 234-4: CHARTERINGAND CREATION
OF A LOCAL CHAPTER (new Provisioninsertedby R.A.94811
A duly registered ederationor nationalunion
may directly create a local chapter BY
ISSUING A -CHARTER CERTIFICATE
indicating the establishment of the localchapter. The chapter shalt acquire legalpersonalityONLY for purposes of filing a
petitionor certification lectionromthe date t
was issueda charter certificate.
Note: The chaptershall be entitled o all other
rights and privileges of a legitimate labor
organization only upon fhe subrnrssionof the
following documents in addition to its charter
certificate:
1. Names of the ctraptels officers, theiraddresses, and the principal office of the
chapter;2. Chapteis constitutionand byJaws;
3. PROVIDED, that where the chapte/s
constitutionand by-laws are the same as
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LABORLAW
LABORRELATIONS
offices, but shall be processed bv theBureau.
Note: A labor organizationmay be organizedunder the CoroorationLaw as a non-stockcorporation and issued a certificate ofincorporation by the SEC. But suchincorporation as only the effect of giving o itjuridical personalitybefore regular courts ofjustice.Such incorporation oes not grant theright and privileges of a legitimate labororganization.
Ministerial Duty of the BLR Compellable by
MandamusTo review the applicationor registration ndnot the issuance of a Certificate ofRegistration.
After a labor organization had filed thenecessary Fpers and documents forregistration, t becomesmandatory or the BLRto check if the requirements under Nticle 234have been seduiously complied wiffr. lf itsapplication for registration is vitiated byfalsification and serious irregularities,
especially hose appearingon the face of theapplicationand the supportingdocuments,alabor organization should be deniedrecognitionas a legitimate abor organization(Progressive Development Corporation-pizzaHut v. Laguesma,et. al, GR No. 115077, Apit18, 1997).
Purpose of RegistrationRegistration with the 8LR is the operative actthat gives ights to a labor organization.
1. lt is the fact of being registeredwith theDOLE that makes a labor organizationfegitimate in the sense that it is clothedwith legal personality to claimrepreentational and bargaining rightsenumerated in Afticle 242 or to strike orpicket under Article 263.
2. The requirementof regislration'is not acurtailmentof the ight fo ass6aafion. lt ismerely a condition sine qua non for theacquisitionof legal persornlity:by labororganizations, ssociations r unions andthe possession f the rightsand privilegesgrantedby law o labororganizations.
3. lt is a yalrdexerciseof policepower sincethe activities in which labor organizations,associations,or unions of workers areengaged affec.t public interest,. whichshould be protected (PAFLU y. Sec. ofLabor, GR L-2228,February27, 1969).
Federation - any labor organization with atleast 10 localJchafiers or affiliateseach of
which must be duly certifiedor recognized s
the sole and exclusive collectivebargainingagentof the employer hey represent.
Requirements Before a Federation Can Belssued a Certificate of Reg,istrationAside from the application,which must beaccompaniedwilh the requirements forregistration of a labor registration, theapplication houldalso be accompanied ythefollowing:1. PROOFof affiliation f at least10 localsor
chapters,each of which must be a dulyrecognizedsole and exclfsive collectivebargaining gent n the establishment r
industry n which it operates,supportingthe registration of such applicantfederation r national nion, ,.: . . ,-
2. RESOLUTION f affiliationof at least'ten(10) legitimate abororganization, hetherindeoendentunions or chartered localseach of which must be duly certifiedor arecognlzed bargaining agent in theestablishmentwhere it seeks to operate;and
3. flAMES, AND ADDRESSES of thecompanies where the affiliates operate
and the list of all the members in eachcompany nvolved.
Unions at Enterprise LevelA labor union at enterprise level may becreated either by:1. lndependent egistration2. Chartering
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Sen frebs@otleget:[.trtu
2011CENTRALIZEDAROPERATIONS
Application fo rregistration isfiled with and willbe acted upon bythe DOLERegional Officewhere theapplicant'sprincipal's officeb located.
Charter certifrcateissued by federationor nationalunion isfiled with theRegional Office orBLR within 30'daysafter the issuance ofthe chartercertifcate.
Affiliate1. An independently registered union that
entered into an agreement of affiliation
with a federationor nationalunion.2. Also refers to a chartered local whichapplied for and was granted anindependent regigtr:ation but did notdisaffiliate rom its mother federationor
national nion.
Affiliation of Local Union with a FederationThe procedureof affiliationwould depend onwhether he -union s independentlyegisteredor not.
Requirements of Affiliation (As AmendedBy D.O. /n43)
1. Report of affiliation of independentlyregisteredabor union;
2. Attachments:a. Resolutionof the labor union's board
of directorsapprovinghe affiliation;b. Of the general membershipmeeting
approvinghe affiliation;c. The total nurnber of members
comprising the labor union and the
names of memberswho approved heaffitiation;
d. The certificateof affiliation ssued bythe federation in favor of theindependently egistered abor union;and
e. Written notice to the employerconcerned f the affiliatingunion s the'incumbentbargaining gent.
Note: Supervisor'sunionaqd the rank and fileunion operldlng within the same es{ablishment
may join the same federation or nationalunion. (Arf. 245 amended by R.A. 9481)
DisaffiliationWhen affiliated,a local union may disatfiliatefrom he federation.
When to DisaffiliaGGeneral Rule: ,{ labor union may disaffiliatefrom the motherunion o form an independentunion only during the 60{ay freedom period
immediatelyprecedingthe expirationof the
CBA.
Exception:DISAFFILIATION Y MAJORIry'Evenbefore he onset of the freedomperiod,
disaffiliationmay still be carriedout, but such
disaffiliationmust be effected by a majority of
the unionmembersn the bargaining nit '
This happenswhen there is a substantial hift
in allegiance n ihe part of the majorityof the
members of the union. In such a case'
however, the CBA continucs to bind the
members of the new or disatfiliated and
independent nion up to the CBA's expirationdate. A consent election to determine the
unionwhich shall administerhe CBA maybe
conducted.
LimitationDisaffiliationhouldbe in accordancewith the
rulesand procedures tated n the constitution
and by-lawsof the federation.
A sohibition to disaffrliate n the Federation's
coinstitution r by-laws is valid - intended for
its own protection.
Chartered Local - created by a federation or
national nion hrougfr ssuanceof a charter'
Revocation of Charter by the Federation -
by serving he local/chapter verifiednotice,of
r&ocation, copy furnished he Bureauon the
groundof disloyalty r such othergroundsas
maybe specifiedn its constitution r by-laws'
The revocation halldivest he localchapterof
ln the Iallowed
Art.235:ACThe Bureau rs for
filing.
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LABORLAW
LABORRELATIONS
, , i.'ir:ltiiY
All requisitedocumentsand papersshall beunderoath by the secretaryorthe treasurerofthe organization, as the case maybe, andattested o by its president. :
Reas91lol T<ry period: The thirty-day
period n Art 235ensures hat anyaction akenby the BLR is made in consonincewith themandateof the LaborCode,whichspecificallyrequires hat the basis for the issuanceof acertificate f registration houldbe compliancewrth the requirements or recognitionunderArt. 234.
_ (progressive bevelopmentCorporation-pizzaHut vs Laguesma,e.h. ruo.115077,Apfl 15, 1997.)
Reason for requiring certification underoath: To ensure that the labor organizationwith which an employer s dealing i a bona_rroeorganization.
Mandamus, not Certiorari, is properrenledy. The proper remedy against refusaf oregistera labor organizationhich comolieswth all the requirementss mandamus nd notcertiorari.Certiorari s not the properremedvsince
Ih" approval of appltation i*registrations not a udicial unction.
ART.236:DENTALOF REGTSTRATION
DecisionDecisionof the Regional fice or the Bureauoenyrng ne application or registration hallDE:1. Inwrit ing;2. Stating in clear terms the reason or the
decision;and3. Applicantunionmust be furnisheda copyof saiddecision
AppealDecisions of the Regional Office shall beappeatabte o the BLR and CA. The BLR,s
*_":i:1"_* ja:es appeatedrom n"gion"i
urrector re final and not appeatableo theSecretaryf Labor.
Decisions f the BLRdenying he registrationof
.a labororganizationfedeiation"in-;fi-;;inion) s appealableo the Secretary t f_aOoi
thewithin10 calendarays rom .u"Lipi"f tn"decision, ngrounds f:1. Grave buse fdiscretion:r2. Grossncompetence.
Decisionof Secretary f LaborappealableoCourtof Appeals.
Registration of Independent Labor UnionFiled With
Registration of Federation or NationalUnion.FiledWth
-
Bureauof LaborRelations r Regional
Office(But processedby
Bureau)
Decisionof Secretaryappealableo COURT
of APPEALS
Secretaryf Labor(lfBLRdirector
denies)
Regionalofficewhere
unionoperates(Processed y LaborRelationsDivision)
Bureauof LaborRelations(lf deniedby Regional
Decisionof BLRappealableo COURTof
APPEALS
s&N Fffi*A*-1".\i*L#{"6# 3f: t-A 4r
84
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5an Sebs€ollegesf {.eio
2011CENTRALIZEDAROPfrRATIONS
of Rules
By signinga contract
notlabor organizationand herefore t woui;continueo have egalpersonalitynd trpossess ll'therightsandprivilegesf alegitimatedbororganization
valid as the labor organization car
continueadministeringhe CBA
entlded to
dues and not the federation rom whbh bt
labor organizationdisafiiliated.
of the union with thefider;don for the issuance f a chartercertificate o be submitted to the Bureau
accompaniedby the following:1. Copiesof its constitutionand by]aivs.
2. Statement of the set of offcers and
books of acounts, all of which must
be certified bY the
Secretary/Treasurerand atested to
by the President. n such case, the
unionbecomesa lobalchapterof the
Jnron
continue to be would ontinueo be
: iatterc*e, the localor chapterwill notlose its legal personality until F9
, expiration f the CBA After the CBA
, expires t will lose its legal personality
. r-rniessit
registersas an independent
iocalchapterwill not lose ts personality
until he expiration f the CBA After he')BA expires he local union loses
'rts
Federation
unlesstdues may no r b e
sollected as there would no longdr be; :ny labor union that b allowed to collect
, suchunionduesfromthe employees.
I Note: Follow the principle of agency
i between ederationand local.
:Principal emPloYees
, Agent - locaUchaPterof aoent- federation
CANCELLATION OF
The
Modes of AppealDenialor Cancellation y:1. Transmit records within 24 hours from
receipt of Memo of Appeal2. BUREAU decides within 20 days from
receiptof records3. COUiTTOF,APPEALS.RUIC 5' _
; " r i , ' . . : _ , , , ' r . , . ; .: : r \ . , ; . : 1 . , : : . , ,1 , , t . r .i ' i -
Bureau1. Transmit ecordswithin 24 hours romreceipt f Memo f appeal
2. SEC. OF DOLE decideswithin20 daysfrom receiptof records
3. COURTOF APPEALS Rule65
Note: Appealby memoof appealwithin 10days romreceipt f notice.
Grounds1. Graveabuseof discretion2. Violation f rules samended
ART. 238.REGISTRATION
SPEC
ART.CANC
2. ln ,asesn? lju:r anda;-rF.'priate
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LABOR AW
LABOR ELATIONS
Legitimateindividual abor
union
RegionalDirector who
has jurisdictionover the placewhererespondentprincipallyoperates (30days todecide).
Any party-in-interest, if
grounds:1. Failure ocomplywithany oftherequirements underArts. 2U,237 and238,LC.
2. Violationof anyprovision
under Arf.239,LC.
Ghartered ocal
association
Federations BureauDirector (30days o decide)
Only themembersofthe labororganizationcorcerned ifgroundsareactionsinvolvingviolations f4tt .241,subject to the30% rule.
National orindustry unionsTrade unioncenters
Effectof Cancellatioh f Registrationn theCourseof ProceedingsWherea laborunions a party na proceedingand later t loses ts.registrationermitn thecourseor during he pendency f the case,suchunionmay continue s a partywithoutneed of substitutionof parties, subjecthowevero the understandinghat whateverdecisionmay be rendered hereinwill be
bindingonlyuponthosemembersof the unionwhohavenotsignifiedheirdesireo withdrawfromthe casebefore ts trial and decisiononthemerits
lPriqginte.of Agencyapptied--theemployeesare theprincipals,and the abororganizationsmerelyan agAft of the farmer,consequentty,the cancellationof the union's registrati6nwould not deprive the consentingmember-employeesd their ight to cdntinue fie 6aseas theyareconsidereds fhe pincipals).
ART.239:GROUNDSORCANCELLATIONOFUNION EGISTRATIONasamended yR.4.94811
Grounds:1. Misrepresentation,alse statement or
fraud n connection ith the adoption rratificationf heconstitr.rtionndby-lavrs
2. Or amendmentshereto. he minutesofratiflcation,nd he list of members hotookpart n he ratification:
3. Misrepresentation,alse $atements orfraud n connection ith fre electionofofficers.minutes f the election fofficers,
and he istof voters: nd4. Voluntaryissolutiony hemembers.
Note: Failure to submit reportorialrequirements s no longer a ground forcancelldion utshallsubjectheerringofficersor memberso suspension, xpulsion rommembership,r anyappropriateenalty.Art.242-4,newprovisionnserted y R.A.9481)
ART239-A:VOiUTTNNVCANCELLATIONOF REGISTRATIONNewProvision
inserted y R.A.94811
The registration of a legitimate labororganization, may be cancelled by theorganizationtselfPROVIDED:1. At least 2/3 of its generalmembership
vofes, n a meeting uly called or thatpurposeo dissolveheorganization;
2. An applicdion to canel registration issubmitted y he board f he organization,attestedo by hepresidenthereof.
Note:A pronouncements to the illegality fthe strike s notWthinhe meaning f Art.239of the Code,whichprovidesor thb groundsforcancellationfunion egistration.
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Ssn Sebe@otlegefLsb
2011CENTRALIZEDAROPERATIONS
b. The collective argaininggreement,and abor avls.
3. RightsOvermoneyMatters the rights f
the members:a. Againstmpositionfexcessiveees,b. Rightagainstunauthorizedollection
of contributionsor unauthorizeddisbursements;
c. To require adequate records ofincome ndexpenses;
d. Toaccessinancialecords;e. Tovoteonofficers' ompensation;f. Tovoteonspecial ssessment;S. To bededucted special ssessment
only with the membefs writtenauthorization.4. lolitical right the right o vote and be
voted or, subject o lawfulprovisionsnqualificationsnddisqualifications.
Note:Any violation f the above ightsandconditions f membershiphallbe a groundfor cancellationof union registrationorexpulsionf an officerromoffice, hicheversappropriate.t least30%of all the membersof the unionor any member r membersspecifically. oncernedmay report suchviolationo heBureau.
UnionMembershipAny employee,whether employed or a,definiteperiodor not, shall,beginning n hisflrst day of service, be consideredanemployeeor purposes f unionmembership.(Att.277)
Note: The relationship f the union and
members is governed by their mutualagreement,he ermsandconditionsf whichare set forth n the unionconstitutionnd bylawsand binding n the members s wellasthe organizationtself. Poquiz,2@Q quotingAng Malayang Manggagawang Ang TibayEnterprises,t al. v. Ang Tibay,et al., GR No.L-8259,December 3, 1957).
Who Are Prohibited From BecomingMqmbers/O.t.ficersf a f.abor Organization
(Seehofes inddrA,ft.243 on personswh6 arenotgranted he ght to self-organization)1. Non-employeesArt.241[c]);2. Subversives or those engaged in
subversivectivitiesArt.241[e]) and3. Personswho have been convictedof a
crime nvolving oralurpitudehallnotbeeligibleor elec-tions unionofficeror forappointmento any positionn the union(4tt.241[t]).
Note: n general, union s freeto select tsownmembers,ndno person asan absoluterightomembershipn a union.
Who areentitled o vote:Onlymembers f the unionhave he eligibilityto takepart n the election f unionofficers.Eligibilityo votemaybe determinedhroughtheuseof theapplicableayroll eriod nd hestatus f the employeesuring he applicableperiod.This pertains o the payrollof themonthnext pr:ecedinghe labordispute, ncase of regularemployeeS'nd the payrollperiod tor near hepeakof operation,n case
of employeesn seasonalndustries.Tancinovs PuraFerrer-Calleia, .R.No. 78131,Jan.24,1988).
.". , . . . ; . - .
Limitations (See nofes on union securityarrangementsunder Art. 248)1. The labor organization annot compel
employeeso becomemembers f theirlabor organizationf they are alreadymemberJa RIVAL NION.
2" The.personsmentionedn Aft. 241[e](SUBVERSIVES)f the Labor Code areprohibitedrombecoming member f alabor rganization.
3. The members of RELIGIOUSORGANIZATIONho5'e eligion orbidsmembbrshipn labor organizationouldnotbecompelledntounionmembership.
Levy of SpecialAssessmentsorExtraordinary ees Art.24tNI)
Requirements:RAMM)
1. Theremustbe a writtenesoltttion;2. The resolution usthavebeen pproved
by a majority f allthemembers;nd3. The approvalmust be at a general
&embershipmeetingduly called or that
be att€b&chfi@ffi
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LABORLAW
LABORRELATIONS
amounts due to the union for fees. fines orassessments.
Nature andPurposeof Gheck-OffUnion dues are the lifebloodof the.union.Al l
unions are authorized o collect reasonablemembership ees, union dues, assessmentsand fines and other contributions or laboreducation and research, mutual death andhospitalizationbenefits,welfare fund, strikefund and credit and cooperativeundertakings(Art.277[a)
RequiremenG With Regard to Check-Offs(4rt.241[o])
General Rule: NO special assessment,attorney's ees, registrationees or any other ,- ,..,extraordinaryfees may be checked off from--'any amount due an employee without anindividual witten authorization duly signed bythe employee
The authorization houldspecifically tate he:1. Amount;and2. Purpose and the beneficiary of the
deducdion.
Exceptions:1. For mandatoryaotivitiesprovided under
the Code,and2. When non-membersof the union avail of I
the benefitsof the CBA:a. Said non-merirbersmay be assessed
union dues equivalent o that paid bymembers;
b. Only by a board resolution approvedby majority of the members in ageneral meeting
called for thepurpo6e.
Note: The individualwrittenau(horization ulysigned by the employee is an additionalrequirement to RAM) in order that a specialassessment may be validly checked-off. lncase of check-off another requisite isnecessary n addition o the requirementsorspecial assessment,enumeratedabove andthis is, indiWual written authorization forcheck-off duly signed by the employee
concerned. (Eduardo J. Marifio, Jr. d al. vs.Gil Y. Gamilla,et al., G,R. No. 149763,July T,2009.)
Ju risdiction over Gheck-Off DisputesBeing an intra-unionconflic*, t'he RegionalDirectorof DOLE has jurisdictionover checkoff disputes.
dues,'ho or
and
tn
Req4
2.J.
He s
By writtenresolutionapproved bymajority of allthe membersat a meetingduty called orthat purpose
(Union ues)By obtainingheindividualwrittenauthor2ationduly signed bythe employeewhich mustspecifi amount,purpose andbeneficiary.
No exception;writtenresolution is
rmandaior atall nstances.
Not necessary:1. formandatoryactivitiesprovidedunder theCode; nd2. whennon-membersofthe unionavail of thebenefrts of
the CBASaid non-memoersmay beassessedagency eesequivalentto that paidby membersonly by aBoardResolution
approved ya majority fthemembersna generalmeeting
DuesSd$it#ffifrFffily
He
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Ss$ Gebs@ollegef j[sb
2O1ICENTRALIZEDAROPERATIONS
Note: Individual rittenauthorizations notnecessaryor he collectionf agencyees.
Note: Agency fee cannotbe imposedonemployees lready n the serviceand aremembers f anotherunion. f a closedshopagreementannotbe appliedo them,neithermayan agency ee,as a lesserormof union
security,be imposed o them. Paymentby
non-unionmembers f agencybes doesnotamount to an unjust enrichment asicallybecausehe purpose f suchdues s to avoiddiscriminationetweerf nionand non-unionmembers NABAILU . San MiguelBreweryInc.,GR No.18170,August 1, 1963).
Employee-Membersf another Union NOTGonsidered reeRidersWhen the union bids to be the bargainingagent,t voluntarilyssumeshe responsibility
of representingall employees in theappropriateargainingnit.
CHAPTER IT. RIGHTS OF LEGITIMATEI.ABORORGANIZATIONS
ART.242RIGHTSOF LEGITIMATEABORORGANIZATIONS
Rightsof A LegitimateLabor Organization(USERFOE)il,;,:Unaertir<e.l'activities
-'for. benefit of
members;2. $ue andbe sued;3. fxclusive epresentativef all employees;4. lepresentunionmembers;fn c6fl-)5. fumished by employers of addited
financial tatements;6, $rn properties; nd7. Exemptedrom axes.
ART.242-A:REPORTORIALREQUf EMENTSNewProvision n*rted
by R.A.94811
Reportorialequirementso be submitted y
the egitimateabororganization:1. C6nstitutionnd byJaws, r amendments
thereto,minutes f ratification,nd he ist
of memberswho took Part in the
ratificationf the constitutionnd by-laws
within 0 days romadoptionr ratiflcation
of the constitutionand by{aws or
amendmentshereto;q
2. Listof officers,minqtes f the election f
officers, nd listof voterswithin30 daysfromelection;
3. Annualinancialeportwithin 0daysafter
thecloseof every iscalYear; nd4. List of members t leastonc€a yearor
wheneverequiredY heBureau'
Note: Failure o complywith the above-
mentionedequirementshallnotbe a ground
for cancelldion f union registraticn ut shall
su6ject he erring officersor members o
sus-pension,xpulsionrom membership' rany appropriateenalty.As nserfed y Sec'
7,R.A.9481)
TITLEFIV.E. OVERAGE
ART. 243:COVERAGE ND EMPLOYEES'RIGHT OSELF-ORGANIZATION
Eitent ot the Right o Self'Organization1. To form, join and assist labor
organizationsor the purpose f collective
baigaininghroughepresentativesf theirownchoosing;nd
2. To engagen laMulconcertedctivitiesor
the samepurpose r for theirmutualaid
andprotec'tion.Art' 246)
Members f a union orthe payment of uniondues
May not be deductedlMay e deductedromfrom the salaries of the lthe salary of employees
union memberswithoutlwithout their writtenthe written consentoflconsent
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LABORLAW
LABORRELATIONS
Persons/EmployeesEligibte to Join a LaborOrganization for Purposes of CoilectiveBargaining
1. All persons employed in gommercial,lndustrial and ggricultural (ClA)enterprises, including employees ofGovernment-owned or controlledcorporation without original chartersestablished under the CorporationCodeancl
2. In leligious, gharitable, medical orgducational (RCME) institr.rtions hetheroperating or profitor not.
Persons/Employees eligible to join a labororganization for mutual aid and protection:(AlRStW)1. Ambulant; (Walkingor Mobile Workers)2. lntermittent (lrregularworkers)3. Sural;4. gelf-employedpeople5. ltinerant workers ( Working or a short ime
in vaious flaces); and6. Workerswithoutany definiteernployers.
Persons/Employeeswho are NOTgrantedthe
i ght to self-organizafion; (HEMACENGA)1. High-level or managerial governmentemployees Sec.3; E.a. 150\;
2. Employees of internationalorganizations'withimmunities /CMCv. Calteja,GR No.
85750, September2A, 1990\,3. [anagerial employees
a. Whose functions are normallvconsidered as policy+naking ormanagerial;
b. Whose duties are of a highlyconfldential or highly technical innature (Aft.212, LC\;
4. Members of the grmed Forces of thePhilippines, including police officers,policemen, iremenand ail guards Sec.4,E.O. 180);
5. Gonfidential employees (Metrolab/ndusfnes lnc. .v. Confesor. GR No.108855,February 28, 1996);
6. lmployees of cooperativeswho are at the- ,-., ?tn€ lrme,its;,membe6 {genguet Etec.
Coop. v. Ferrer-Calleja, GR No. 79025.December
29, 1989\; However, they mayform a workeds association WEEC1Employees' Assoc- v. NLRC, GR No.116066,January 24,'2000).
7. Non-Employees (Rosario Bros. v. Ople,
- GR No.L-53590, uty31,1984)8. Qovernment Employees, including
Government-owned and controlledcqrporations with original charter (Arizalav. cA, 189 SCRA5W)
9. f,liens without valid working permits; orAliens with valid working pelniits but are
nationalsof a countrywhich do not grantFilipinos to exercise the right of self-organization nd to join or assist labor
organizations. (Article 269, Labor Code;Deparlment Order Na. I [1997], Rule ll,Sec.2.l
Eligibil i ty of Foreigners to Form LaborOrganizationAliensworking n the countrywith validpermitsissued by DOLE, may exercise the right toself-organization nd join or^,assist labororganizationsof their own
*choosingfor
purposes of collective bargaining;provided,that said aliens are na tionals of a country
.which grants the same or similar rights toFilipinoworkers. Att. 269) This embodies.thePRINCIPLE F RECIPROCIry.
ReligiousObjectorsThe righis of the members of the lglesia niKnsfo sect not to join a labor union fcr beingcontrary o their religiousbellefs does not barmembersof that sect from forming heir ownunionl The recognitionof the tenets of thatsect should not infringeon the basic right to
self organization rantedby the Constitutionoworkers regardless of religious affiliation.(Kapatiranv. Calleja, GR No. 82914, June 20,1988) .
In fact, they can vote for "No-Union" n acertificationelection in the exercise of theirright to self-organization.(Reyes v. Trajano,GR No. A$3, June 2, 1992)
ART. 244: RIGHTSOF EMPLOYEES N THEPUBLICSERVICE
governed
Code canwith the
lHn
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5un EeM @ollege ["elr
2011CENTRALIZEDAROPERATIONS
the terms andconditions of
employment.hus, hey
have unlimitedbargainingights.
Can orm,oin,orlabor organization orpurposes fCBA,etc.
they can(through collective
negotiation greementsor MOA) with thegovemmenton thosetermsandconditions femployment hich arenot fixedby law. Thus,they have limited
only orm, oin orassist labororganization forpurposesnot cor,traryto law
Forming,Joining,or AssistingEmployee'sOrganization ,. ,,ri.".GeneralRule: ALL government mployeescan form, join or assist emPloyees:organizationsf their own choosingor theturtherbnce nd protectionof their interests.They can also form labor-managementcommittees,ork councils nd other ormsofworkers' articipationchemeso achievehesameobjectivesSec.1, E.O.180).
Exceptions:1. High-levelmployees hose unctions re
normally onsidereds policy-makingrmanagerialr whoseduties reof a highlyconfidentialatureSec. , E.O.180);nd
2. Membersof the Armed Forcesof thePhilippines, ncluding police officers,policemen,iremen nd ailguards Sec.4,E.O.180)
Nob: Employees f governmentorporationsincorporatednder he Corporation odeandregisteredwith SEC are governed by theLaborCodenotbyE O. 180.Theyarealloledto organizeor:1. They are not involvedn publicservice;
and2. Termsof employment re not ixedby aw.
Protection f the Right o Organize1. Governmentemploveesshall not be
, discrimfin*d iagiini by reason''of heirmembershipn employees' rganizationsor participationn the normalactivitiesoftheirorganizationSec.5, E.O.1ffi).
Z Theiremploymenthall not be subjectothe condition hat they shall not join orshall relinquishheir membershipn theemployees' rganizdions/bid .
3. Government uthorities hall not interferein the establishnrent, unctioning or
administrationf governmentmployees'organizationshrough acts designed oplace uchorganizationsnderhe control
of government uthority Sec 6, E'O
1ffi\.
Terms and Conditionsof Employment n
GovernmentServicesGeneralRule: The termsand conditions f
employmentr improvementsn governmenl
servicesmay be the subjectof negotiations
between duly recognized emplcyees
organizations nd appropriategovernment
authoritiesSec.13,E.O.1ffi).
Exception:Those terms agd conditions f
employmenthatare ixedby aw/bid')'
Negotiable Terms and Conditions of
Em-ployment n GOCCS with Otiginal
Charter1. Schedulefvacation ndothereaves;
2. Workassignmentf pregnant omen'
3. Personnelrowth nddevelopment;4. Communication ystem - lateral and
vertical:5. Provisionor protection ndsafety;
6.*Frovision for facilities orhandicapped
personnel;7. itrovisionor first-aidmedical ervicesor
married omen;8. AnnualmedicaUphysicalxamination;nd
9. Recreational,ocial,athleticand cultural
activities and facilities (Rules
lmplementing .O. 180\
The Following are considered NOT
Negotiable
1. Those which require appropriationf
funds. uchas:a. Increa6en salary molumentsnd ..
Other allowance not Presentlyprovidedor bY aw;Facilitiesequiingcapital utlays;
Carplan;b.
d.
e.
Extemal
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LABORLAW
LABORRELATIONS
To sum up, governmentemployeescoveredby EO. No. 180mayorganize, ven unionize,and negotiateemployment onditions ot fixedby faw but they cannotstrike. (Azucena,2007)
Registration of Employees' Organization
Wrcre fo RqgrsferGovernment employees' organizationsshallregisterwith the CivilServiceCommission ndDOLE.
The applicationshall be filed with the Bureauof Labor Relations BLR),which shall process
the same in accordancewtth the provisionsofLC.
,.::t:-1i..':r.,5itX
Applicationsmay also be filed with theRegional Offices of DOLE, which shallimmediatelyransmithe saidapplicationsotheBureau f LaborRelations ithinhree 3)days rom eceipthereofSec.Z E.O.1ffi).
lssulmce oi Rqi stration CertifiateUponapproval f theapplication, registration
certificatehallbe issuedo the.organizationrecognizingt as a legitimateemployees'organization ith the right to representtsmembers nd undertake ctivitieso furtheranddefendts interest.
The certificatesf registrationhallbe oinflyapproved y he Chairmanf the CivilServiceCommission nd Secretary f Labor Sec.8,E.O.18O).
VoluntaryRecognitionA duly registeredemployees'organizationshallbeaccorded oluntaryecognition:1. upona shoving hatno otheremployees'
organizations registered r is seekingregistration,. ased on records of theBureau f LaborRelations;nd
2. the said organizationhas the majoritysupportof the rank-and-file'mployeesntheorganizationalnit Sec.11,E.O.1B0).
certlficadoii-Etii:uon
'j*:
"t lWhere here are two or moreduly registeredemployees' rganizationsn the appropriateorganizationalnit,' he BLR, upon petition,shall:1. Order the conduct of a certification
election; nd2. Certify the winner as the exclusive
representative of the rank-and-fileemployeesn saidorganizationnit(Sec.12,E.O.1W).
JurisdictionAny dispute which remains unresolvedafter
exhausting all available remedies unclerexisting aws and proceduresmay be jointlyreferred by the parties to the Public SectorLabor-ManagementGouncil for appropriate
action.
Likewise, he PSLMC has jurisdiction o hear
charges of ULP filed bY government
employees against their employer. lt ig
composedof the following: "q.1. Chairman CivilSeMce Commissioner;2. Vice-Chairman Secretaryof Labor;and
3. Members'.a. Secretary f Financeb. Secretaryof Justice
. c. Secretary of Budget (Sec. 15, E.O.
1W).
ART. 245: INtsLIGIBILITYOF MANAGERIALEMPLOYEES TO JOIN ANY I.ABOR
ORGANIZATION:RIGHTOF SUPERVISORYEMPLOYEES
1. Managerial Employees - thosewho arevested with powers or prerogatives o lay
down and execute managementpolicies
and/or to hire, transfer, suspend, lay-ofirecall, discharge, assign or disciplineemployees.
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2011CENTRALIZEDAROPERATIONS
to be on he sideof the employero act asits representatives,nd o see o it that tsinterests rewellprotected.heemployer
is not assured f suchprotectionf theseemployeesreunionmembers.
In hesamemanner,he abor nionmightnot be assured f their oyaltyo the unionin view of the evident onflict f interest.The unioncan also becomecompany-dominated with the presence ofmanagerial employees in unionmembershipBulletinPublishingCo. lrrc.v. Hon.Sanchez,GR No. 74425,October
7, 1986).
Note: Art. 245 does not absolutelydisqualify rirahagerial mployeesfi${inlr':
exercisingheir rightof association. hatit prohibitss merelyhe right o oin labororganizations.
2. SupervisoryEmployees thosewho, nthe interestof the employer, ffectivelyrecommenduchmanagerialctionsf the
exerciseof such authority s not merelyroutinary or clericat n nature but requiresthe useof ndependentudgment.
Supervisory Employees May Form,Assist,Join A LaborOrganizationOn theirownand NOTwith he rank-and-file employeesR.A.6715as amended yR.4.e481))
lf their responsibilitieso not inherentlyrequire the exerciseof discretionandindependent judgment, (or merelyroutinary/clericaln nature)hen hey mayjointhe unioncomposed f the rank-and-file employees.
Note: lt is the natureof the employee'sfunctions ndnot he nomenclaturer itlegiven o his ob whichdetermineshetherhe hasa rankand ileor managerialtatus(EngineeringEquipme.nt,nc.- v. NLRC,
The rank and file union and thesupervisors' niorl operating. ithin thesame establishmentmay jcin the samefederationor nationalunion(As Amendedby R.A.9481).
Separationof UnionsDoctrineHowever, n the caseof AflasLithographicSeryices nc. vs. Laguesma, G.R. No.96566,January 6, 1992)a supervisor's
union and a rank-and-filenion in the
same company cannot affiliate with the
same ederation f the followingconcur:
a. The rank-and-file employees are
directlY under the authoritY ofsupervisorY mPloYees;nd
b. The national federation is ac{ively
involved in union activities in the
company.
3. Confidential Employees - A confidential
employee s one entrustedwith confidence
on deiicate matters,or with the custody,
handling, or care and protection of the
employer'sProPertY.
By the very natureof their functions, hey
til assist and act in a confidential
capacity, (2) to persons who formulate,
deiermine,' nd effec'tuatemanagement
policies n the fieldof laborrelations'
ThETWO CRITERIAARE CUMULATIVE'
and both must be met if an employee s to
be considereda confidentialemployee-
* e.9., ,the-confidential
relationship must
eii"i between the emPloYee and his
SUPERVISOR,and the supervisormust
handle the prescribed responsibilities
relating to labor relations.As such, the
rationa-le behind the ineligibility of
managerialemployees o form, assist or
join a labor unionequallyapplt-eso them''(PtDt
v. NLRC, GR No. 88957, June 25'
1992) Under the doctrine of necessary
imptication, confidential employees are
similarfy disqualified' (NATU-Republic
Planters Bank v' Torres, GR No' 93468'
December 29, 1994).
Note: The Phrase'lN THE FIELD OF
LABOR RELATIONS' is imPortant' lt
stressesabornexus,.e.confidentialityf
the' oosition-isrMn&Jhked to labor
relati
IS
notr havingof the
not every
managerial,
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LABORLAW
LABORRELATIONS
he may be a supervisoryor eve.narank-and-file mployee.
ART. 245-A: EFFECT OF INCLUSIONASMEMBERSOF EMPLOYEESOUTSIDETHEBARGAININGUNIT(new provision inserted
by R.A.9481)
The inclusionas union membersof employeesoutside he bargaining nit shall NOT be aground for the cancellationof the registrationof the union.Said employeee re automaticallydeemed removed rom the list of membershipof saidunion.
Reason: After a certiflcate of registration isissued o a union, ts legal personality annot
be subject to a collateralattack lt may bequestionedonly via a petition or cancellation,under he grounds, rovided or irrArt.239.
ART. 246: NON-ABRIDGEMENTOF THERIGHTTO SELF-ORGANIZATION
It Shall Be Unlawful For Any Person to:(RcDr)1. fiestrain;2. Qoerce;
3. Qiscriminategainst; r4. Unduly lnterfere with employees andworkers in their exerciseof the right toself-organization.
Note: Any act intended to weaken ordefeat the right.is regardedby law as anoffense, which is technically called"UNFAIR ABORPRACTICE'.
TITLESIX.UNFAIRLABOR PRACTICES
CHAPTER . CONCEPT
ART.247:UNFAIRLABOR PRACTICES
Unfair Labor Practice1. Any unfair labor practice as expressly
definedby the Code.2- Any act intendedor directed o weaken or
defeat he worker's ight o self-organize rto engage in lawful concerted activities
' ' ' . ( A z u i eha , , 20o7 ) ., ' - , '
Natureof UnfairLaborPractices:1. Ciminaloffenses gainsthe State;2. Violations f civil rightsof both abor and
management;3. Violate he constitutionalight of workers
' andemployeeso self-organization;4. Are inimicalto the legitimafe nferesfs of
both labor and management,ndudingtheir right to bargaincollectively nd
otherwise deal with each other in an
atmosohere of freedom and mutual
respect;5. Disrupt ndustial peace, and6. Hinder he promotionof healthyand stable
labor-managementelations and mutual
respect (unstable labor-managernentrelations).
Elementsof Unfair Labor Practice1. Employer-employeeelationshipbetween
the offenderand he offended;and
2. Act done is expresslydefined n the code
as an act of unfair aborPractice.
Note: Prohibitedacts"r" "ff
related to the
workers' self-organizational ight and the
observance of a CBA, except Att. 248[t],dismissing or prejudicing an ernployee for
giving estimony nder he Code.. '1"telement of ULP does not apply to
yellowdog condition. ULPhasa technicalmeaning.r lt is a practiceunfair o labor,althoughhe
offendermay either be an employeror a
labororganization.o Jt refer$ o dcts opposed to workers' right
to organize (Anti-unionism acfs). Withottt
this, the act, no matter how unfair, s notULP.
e lt commonly onnotesanti-unionism.r lt also refers to gross violation of CBA
provisions. Gross means the act is
malicious nd lagrant.e ULP cases are not, in view of the public
interest nvolved^ ubject to compromise.
(See CLLC E.G. Gochuangco Worker'stJnionvs. NLRC, G.R. No. 67158,30 May
1980:AFPMutualBenefit Association, nc.
vs. AFP-MBAI-EU, 97 SCRA 715, 732t1e80l)
o However. n the case of ReformistUnion
94
-ry
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2011CENTRALIZEDAROPERATIONS
Aspects of Unfair Labor Practice
1. Oficersandagenbofemployer; r
2. Labor organization,ofiicersand agents.
1. Agents and ofhcerswho pafticipated
authoized or rdifiedthe act and
2. Agents,representatives,members of thegovemment board,including ordinary.members.Att. 289 &
Att.249)
MTC/RTC, as thecase may be (Art.288)
substantial vidence beyond reasonabledoubt (subject toprosecution andpunishment)
. one year from theaccrual fthe ULPact(Art 290), however,twill be suspendedonce theadministrative casehas been filed andwould only continuerunning once theadminbtrative case
has attainedinality.. Final udgment n the
administrativeproceeding findingthat ULP has beencommitted is aprerequisiten filing acriminal ase or ULP.
Note: Final udgment nthe administativeproceedingshall not be
biFqlns n,the.criminalc6e hor 'shall - beconsidered as anevidence of guilt butmerely as a proof ofcompliance of therequirements rescribedby he Code.
one year from theaccrual of the ULP act(Att. 290\
itiri*. :;j+j)ril+
CHAPTERII. UNFAIR LABOR PMCTICES
OF EMPLOYERS
' ART.2€: ULP THAT MAY BE COMMITTED
BY AN EMPLOYER
1. lnterferenceTo interfere with, restrain or coerce
employeesn the exerciseof their right o
self-organization.
Test: whether he employerhas engaged
in c-onductwhich, it niey reasonablybe
said, tends to interfere with the free
exercise of the employees' right and it isnot necessary that there be direct
evidence hat any employeewas in facti:"':::\ 'r'
intimidatedor coerced by the statements
of threats or the employer if there is a
reasonablenterferencehat the anti-union
conduct of the employer does have an
adverse effect of self-organlzation and
collective bargaining. (The lnsular Life
Assurance-NATtJ v. The lnsular Life
* Assu.rancbCo., Lld., No.L-25291 January
30, 1971)
Totality of Gonduct DoctrineThe culpability f employe/s emarkss to
be evaluatednot only on the basis-of heir
implications, ut against he baclgroundof
and in conjunction with collateral
circumstances. b d.\
Examples:a. Outrightand unconcealedntimidation
b. In order that interrogationwould notbe deemedcoercive:i. The emPloYermust communicate
to the emPloYee.he PurPoseof
questioningii. Assure him that no reprisalwould
i i i .
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LABOR AW
LABOR ELATIONS
interests of the company reasonably
demand t. Unless hereare circumstances
which directlyrcint to interference y the
companywith the employees' ight o self-organization,he transferof an employee
shouldbe considered s within he bounds
allowedby law (e.9.despite ransfer o a
lower position,his original ankandsalary
remained undiminished) (Rubberworld
Phits., v. NLRC, GR No. 75704, JulY 19,
1989).
2. Yellow Dog ConditionTo requireas a condition or empoyment
that aperson
oran employee hallnot oin
a labororganization r shallwithdraw rom
oneto which he belongs.
Yeltow Dog Contract - a promiseexactedfrom workers as a condition of
employment hat they are not to belong o,
or attempts to foster, a union during theirperiod of employment. t is null and voidbecause:a. lt is contra4y to public policy tor it is
tantamounto involuntary ervitude.
b. lt is entered into withoutconsiderationfor employees n waiving heir right oself- organization.
c. Employees are coerced to signcontracts disadvantageous to theirfamily.
Note: One of the cases of ULP that maybe committed in the absence of an Er-Eerelationship.
3. Gontracting OutTo contract out services or functionsbeing- performed by union members when such
will interfere with, restrain or coerceemployees n the exerciseof their right oself-organZation.
Does M. 248[c] mean that an employercannot contract out work?NO. Contracting out services is not ULP
"..pet s9r [t i-s,UlrP ,only,wQenthe.foilowing' '"cbnditiori5'exist
1. The service contractedout are beingpefiormed by unionmembers;and
2. Such oontracting out intefferes with,resfrains, or coerce employees in theexercise of their ight to seff-organization.
HOWEVER, when the contracting out isbeing done for business easonssuch asdecline in business, inadequacy ofequipment'or to reduce cost, then it is a
valid exerciseof managementprerogative.
RunawaYShoP - an industrialPlantmovedby its ownersromone ocationo
another o escape abor regulations r
state lawsor to discriminateagainst
employees t the old plant becauseoftheirunion ctivities.
4. CompanY-Dominationf Union
To initiate, ominate, ssistor otherwse
interfere with the formation or
administrationf any labororganization,
includinghe'giving f financial r other
supporto it or tsorganizerg.'orfficers'
GompanyUnionism/Gaptivenionism
ConsiOereds a ULPbecausehe officerswillbebeholdeno theemployersnd hey
will not ookafter he nterest fwhom hey
represent.
Forms.'a. . Initiation f the coinpanyunion dea
by:i. Outrightormation y employer r
hisrePtesentatives;ii. Ehployee formationon outright
demand r influence Yemployer;and
iii. Manageriallymotivated ormation
bYemPloyees-i
b. Financialupporto theunion y:
i. Employerefrays nion xpenses'
ii. PaYs attorneY's ees to l ''"attorneY who drafted the
Constitutionor bY lavs of the
union;
c. EmPloYer encouragement andassistance lmmediately rantingof
exclusive ecognition s bargainingagentwithout etermininghetherhe
giority of the
legesunder
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5uu Sele @ollege t {.slo
2011CENTRALIZEDAROPERATIONS
directed o encourage r discourageunionmembershio.
Three Components f Discrimination:a. lt prohibits iscriminationn termsand
conditionsof employment n order toencourageor discouragemembershipin the union;
b. lt gives validity to union securityagreements; nd
c. lt allolllsan agencyshop arrangementwhereby agency fees may becollected rom non-unionmembers.
Discrimination Distinguished fromClassificationWhile discrimination s consideredan unfairlabor practice,classifications not because tmerely differentiates the employees inaccordance with their respective obs andaccords hem the appropriateevels of pay orbenefitsdue them by reason hereof.
6. Discrimination because of TestimonyTo dismiss, discharge or otherwiseprejudice
or discriminate against anemployee or havinggiven or being aboutto give testimony under this Code (Iheonly ULP ad which s not anti-unionism\.
Subject Matter of Testimony: can beanythinguncjerhe Code.
What is ULP is the employer's etaliatoryact regardless f the subjectof employee'scomplaint or testimony. In effect, if aretaliatoryact is done under Arf. 1'l8, theconsequence is ULP under Art. 248[fl(Mabeza v. NLRC,'GR No. 118ffi6, April18,199n.
7. Violationof Duty o BargainTo violate he duty o bargain ollectivelyas prescribedy hisCode.
The fottowingacts are held to constituterefusal o bargain:a. Alesing hat he-unions rresponsible;
;' jI b') i'Tibnsferring,opi:ration'io 'elude theunion;Run Away hop);
Run-AwayShop - is an unfair aborpractice f.managementhichusuallytakesplaceby effectinghe transferofownership, he plant itself, or itsequipment, r by temporarily losingits businesspurposely o bust theunion or. to evade he paymentoflegitimate bligations.
c. Delaying negotiations by discussing
unrelatedmatters;d. Refusalo accept equestso bargain;
e. Rejectinga union's offer to prove itsmajority laim;
f. Shutdowno avoidbargaining; nd
S. Engagingn surface argaining.
'Surface Bargaining- going through
the motionsof negotiatingwithout any
legal ntentto reach an agreement. t
involveshe questionof whetheror not
the employeis cQnductdemonstrates
an unwill ingnesso bargain n good
faith or is merelY hard bargaining(Standard Chartered Bank v. Hon.
Confesor,GR No. 114974'June 16,.i:',.-.'":i:. 2004June 2AA4).
8. Paid NegotiationTo pay negotiation r attorney'sees to the
unionor its officersor agentsas partof the
settlement of any issue in collective
bargaining r anYotherdisPutes.
t Vi6tation of cBAThe violation must be gloss; flagrant
and/ormalicious efusal o complywith the
. economicprovision f the CBA (Art' 261)'
Note:GROSSLYVIOLATE" hrase s an
amendmentbY R.A. 6715. Nence, if the
violation s not gross, it is not ULP but a
grievanceunder he CBA
Note: All the aforementioned cts (Nos, '1-9)
must have a relation to the employees
exerclseof their right o self-organization nti-union or anti-organizationmotive must beprovedbecause t is a definitionalelement of
ULP.
Theburden shouldersof
asa S&b*t#effiSd
ofunion
on
where
exercisingmployer
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LABORLAW
LABORRELATTONS
discharge,and the employeequitsas a resultof the prohibition.
Security Arrangements-
stipulations n theCBA requiringmembership n the contractingunion as a condition for employment orretention f employmentn the company.
Principles of Union SecurityClauses/Arrangements1. Protection - to shield union members
from whimsical and abusive exercise ofmanagement rerogatives.
2. Benefits - an additionalmembershipwill
insure additionalsource of income to theunion in the form of union dues andspecialassessment.
3. Self-preserv3tioft-.:r,-,it:.strengthenstheunion hroughselectiveacceptance f newmemberson the basis of commitmentandloyalty.
Different Kinds of Unircn SecurityArrangements (Exceptions to ULP onlnterference on the Employees' Right to Self-
Organ zat on) (CUMM PA-BE)
1. Closed-ShopAgreement. The employer undertakes not to
employany individualwho is not amember of the contractingunion andthe said individual once employedmust, for the duration of theagreement, emain a member of theunion n good standingas a conditionfor continued mployment.
r Does not have any retroactivity.r Appliesonly o nsv hires
Exceptions:a. Employeesbelonging o any religious
sect whicfr prohibitaffiliationof theirmemberswith any labor organizationare not covered by such agreement.The free exerciseof religiousbelief ssuperior to contract rights (Vidorianov. Hizalde Rope Workers, No. L-
1... 25246,.Septemberf2, 9741.b.'::'Membeisof the rival tlnion are not
coveredby such arrangement.c. Confidentialemployees excluded from
rank and ile bargaining ni td. Employeesexcludedby express erm
' of the agreement
Semi-Closed Shop Agreement - theprospectiveemployee must be a memberof the unionas a conditionof emfloyment
' and has no requirementor the employeeto remain as member of the contracting
union in good standing as a condition or
continued mployment.
2. UnionShop AgreementStipulationwhereby any person can be
employed by the employer but onceemployedsuch employeemust, within a
specificperiod,becomea memberof thecontracting nionand remainas such ingood standingfor continuedemploymentfor the durationof the CBA. (Takenote of
the exceptions n the precedingnumber.l
3. Maintenance of Mef,iOersnip Shop
AgreementThe agreementDOES NOT require non-
memberso join the contracling nion BUTprovides that those who are membersthereofat the time of the executionof the
CBA and those who maY thereafter,on
their own volition,becomemembersmust
fo;'the durationof the agreementmaintain
their membership n good standing as a
condition or continuedemploymentn the
< company or the durationof the CBA.
4. lreferential Shop AgreementAn agreernent whereby the employer
merely agrees to give preference o the
members f the bargaining nion n hiring,promotion r filingvacanciesand retention
in case of lay-off.The employerhas the
right o hire from the open market f union
membersare not available.
5. f,gencyShopAgreement
An agreementwhereby employeesmusteither oin the unionor pay o the unionas
. exclusivebargaining genta sum equal o
thatpaidby the members.
Note: This is directed against "FREE
RIDER" fromunion
tr
thejoin
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Ser SeDe olleged [.s16
2OII CENTRALIZEDAROPERATIONS
7. fxclusive Bargaining ShopThe union is recognizedas the exclusivebargaining gent or all employeesn thebargainingunit, whether union membersor not.
8. Eargaining or MembersOnlyThe union s recognized s the bargainingagent only for its own members.
Requirements or a Valid Termination'bythe Employer of the Services Closed-ShopAgreement1. The agreement must be expressed n a
CLEAR AND UNEOUIVOCALway so asnot to leave room for interpretationbecause t is a limitationo the exerciseofthe right o self-organization.
2. Any doubt must be resolvedagainst theexistence of a closed-shopagreement.
3. The agreement can only havePROSPECTIVE APPLICATION andcannot be applied retroactively.
4. lt can only be exercised by giving theemployeehis rightto DUE PROCESS.
a. The employerhas the right to satisfyhimself hat there are sufficientbasesfor the requestof the union.
b. The terminationof the servicesof theemployee is not automatic upon therequestof the union.
5. lt CANNOT BE APPLIED to employeeswho are already MEMBERS OF THERIVAL UNIONor to the employees asedon theirRELIGIOUS ELIEFS.
CHAPTER II. UNFAIR LABOR PRACTICESOF LABOR ORGANIZATIONS
ART. 249: UNFAIR LABOR PRACTICESOFI-ABOR ORGANIZATIONS
1. To restrain or coerce ernployees in theexercise of their right to self-organization.However,a labor organization hall havethe right to prescribe its own rules withrespect to the acquisition or retention of
Notq INTERFERENCEby tabororganizations not ULP as long as theinterference oes not amount o restraintor coercion.
2. To causeor attemgto causean employerto disciminate againg an employee,including discriminationagainst anemployee with respect to whom
membership n such organization asbeendeniedor to terminate n employeeon anyground ther han he usual erms
and conditionsunder which membership
or continuationof membership s made
availaUe o othermembers;
Note: A union member may not be
expelled rom the union,and consequently
from his job, for personal or impetuous
reasons or for causes foreign to the
cfosed-shopagreement. (Manila Mandarin
Employees lJnion v- NLRC, No' L-76989'
September29, 1987)
3. To violate the duty orgpfuse to bargain
coltedively with the employer provided
that it is the representative of theemployees;
4. To causeor attempt o causean employer'
to payrir:deliveror agree o pay or deliver
any money or other hingsof value, n the
nature of an EXACTION, for services
which are not Performedor not to be
performed, ncluding he demand or a fee
for union negotiations.
- Featherbddding (make-work activities) -
refers to the practiceof the union or itsagents in causing or attempting o cause
an employer o pay or deliveror agreeto
pay or deliver money or other things-ofvaiue, in the nature of exaction, for
serylceswhich are not performedor not to
be performed,as when a union demands
thai the employer maintain personnel n
excessof the latte/s requirements'
. Note: lt is not featherbedding f the work is
performed no matter how unne@ssaryoruseless t may be.
5. To ask for or accept negotiation or
attorney's fees from employers as part of
the settlement of any issue in collective
sar*mm.me
dispute.
Resulting substantiallyontrac{' -
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LABORLAW
UIBOR RELATIONS
and whose benefitsare far below hose thatare providedby law.
Blue-Sky Bargaining - is definedas makingexaggerated or unreasonable proposals.
Whether or not the union s engaged n blue-sky bargaining s determinedby the evidencepresented by the union as to its economicdemands. Thus, if the union requiresexaggerated or unreasonable economicdemands, it is guilty of ULP (StandardChartered Bank v. Hon. Confesor. GR No.114974,June 16 2004).
T]TLESEVEN.COLLECTIVEBARGAININGAND ADMINISTRATION F AGREEMENTS
ART. 250: PROCEDURE N COLLECTIVEBARGAINING
Collective Bargaining - obligation o meetand convene promptly and expeditiously ngood faith for the purpose of negotiatinganagreement Wth respect to wages, hours ofwork arid all other terms and conditions ofemployment ncludingproposals or adjustingany grievances or questions arising undersuch agreement
and executing a €ntractincorporating uchagreementsf requested yeitherpartybut suchdutydoes not compelanyparty to agree to a proposalor to make anyconcession. Art- 252)
General Rule: Ng court or administrativeagencyor officialshall havethe power o setor fix wages, rates of pay, hours of work .orother terms and conditions of employmentexcept as otherwise providedunderthe LaborCode.
Purpose to encourage a truly democraticmethod of regulating he relationsbetween heemployers and employees by means ofagreements freely entered into throughcollec'tive argai ing.
Exceptions.'1. National Wages and productivity
Commission and Regional TripartiteWage6and Productivity-Board- s to wage
fixing (Arfs. 99 and 122)2. NationalConciliation nd MediationBoard
and the National Labor RelationsCommission- as to wage distortions (Art124)
3. Secretary of -Labor and Employment an<jPresident of the Philipprines-as tocertification and assumption powers overlabor disputes (Art. 263[9])
Ju risdictional Precond tions {D-PPE)1. mployer-employee elationship2. lossession of the status of majority
representation by the employees'representativen accordancewith any of
the means of selection or designationprovidedor by the LaborCode;
3. Proof of majority representation(Certification of the BLR that therepresentativeof the employees s thesole and exclusive bargaining agenthavingwon in a certification lection); nd
4. pemand to bargain under Afticle 250[a]otthe LaborCode (KlokLogv. NLRC,No. L-54334, January 22, 1986):
Note: Wherea majority epresentativeasbeen designated, t is an ULP for theemployer, as a refusal of collectivebargaining, o deal and negotiatewith theminority representative o the exclusion ofthe majorityrepresentative.
Collective Bargaining Agreement (CBA) - acontract executed upon request of either theemployer or - the exclusive bargainingrepresentative f the employees,ncorporating
the agreement, eachedafternegotiations ithrespect o:1. Wages;2. Hoursof work;and3. All other terms and conditions of
employmentn a bargaining nit, ncludingproposals or adjustingany grievanceorquestion under such agreement. Davao
lntegrated Port Stevedonng Serubes v.Abarquez, GR no. 102132, March 19,
1993) (i.e. mandatory provisions forgrievances nd arbitrationmachineries)
Zipper Clause - a stipulation in a CBAindicating that issues that could have been
in a CBAhave beenin the CBA
maybe
oflfencour
100
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2011CENTRALIZEDAROPERATIONS
5. lf not resolved, he parties may go towhere they want and lesort to any otherlavvfulmeans (either o settle the dispute
or submit t to a voluntaryarbitrator).
Note: During he conciliation roceedingnthe Board, he partiesare prohibited romdoingany act which may disruptor impedethe early settlementof the disputes(Art.250[d] LC).
Kinds of Bargaining1. Single Enterprise Bargaining - involves
negotiation between one certified labor
unionandone employer.2. Multi-employer bargaining involvesnegotiation between and among severallabor unionsand employers.
Stages in the Negotiation for a CollectiveBargaining Agreement (PreNEP-RRAI)1. Preliminary Process - written notice for
negotiation which must be clear andunequivocal.
2. NegotiationProcess.3. lxecution Process - signing of the
agreement.4. Publication for at least 5 days before
ratification.5. $atification by the majority of all the
workers n the bargainingunit representedin the negotiation not necessary n caseof arbitral award)
6. EegistrationProcess.a. requisitesor registration:b. mandatory rovisions;c. paymentofP1,000;
d. 5 copiesof CBA; ande. proof of ratification.
7. {dministrationProcess the CBA shall bejointly administeredby the managementand the bargaining gent for a periodof 5years.
8. lnterpretationand Application Process.
Mandabry Provisions of the CBA1. Wages,2. Hours of work:
, 5s*.'bii6ia6ce:m"bnineh4. Voluntaryarbitration;5. Familyplanning;6. Rates of pay;and7. Mutual observanceclause.
ln addition, he Bureaurequires hat the CBAshould include a clear statement of the termsof the CBA.
Note: Employer'sduty to bargain s limited oMANDATORYBARGAININGSUBJECTS:as
to othermatters,he is free to bargainor not to
bargain.
ART. 252: MEANING OF DUTY TOBARGAINCOLLECTIVELY
Where NO CBA Exists
The performance f a mutualobligation:'
1. To MEETAND CONVENEPromPtlYnd
expeditiouslyn good faith or the purpose
of negotiatingan agreementwith respect
to wages, hours of work and all other
terms and conditiqrs of employment
including proposals for adjusting any
grievances or questions arising unclersuch agreement; nd
2. TO EXECUTE A CONTRACT
incorpolating . such agreements if
requested YeitherPartY.
Limitations1. The duty to bargaincollectivelydoes not
compelanYPartYo:a. ,\gree o a ProPosal;b. Makea concession; r
c.' Make room for "take it or leave it "
Posture.2. The parties cannot stipulate terms ancl
conditions f employmentwhich are below
the minimum requirementsprescribedby
law,
Where CBA Exists (See lVofes under Art.
253)Note: Collective argainingdoes not end with
the execution of the agreement. lt is .acontinuous process. The duty to bargain
imposeson the partiesduring he term of theiragreement he mutualobligation o meet and
conferpromptlyand expeditiously nd in good
faith for the purpose of adjusting any
grievances or question arising under s_uctl
agreement v. ClR,
whichlonger
Collective261, Labor
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LABORLAW
LABORRELATIONS
Economic Exigencies Do NOT JustifyRefusal to BargainAn employer has been held not guilty of
refusal o bargainby adamantly ejecting heunion's economic demands where he isOPERATINGat a loss,on a low profitmargin,or in a depressed industry, as /ong as hemntinues to negotiate.But financialhardshipconstitutesno excusefor refusing o bargaincolleclively.
Ac{s NOT DeemedRefusal o Bargain1. Adoption of an adamant bargaining
position n good aith;
2. Refusal to bargain over demands forcommission f ULP;3. Refusal o bargainduringperiodof illegal
strike;4. There s no request or bargaining;5. Union seeks recognition for an
inappropriatelyargeunit;6. Union seeks to representsome persons
who are excluded rom he Code;7. The rank-and-file unit includes
supervisors;
8. The demand for recognition andbargaining is made within the yearfollowinga certificationelection n whichthe clearchoicewas "no union"and no adinterimsignificant hangehas taken placein the unit; and
9. The union makes unlaMul bargainingdemands'
Bargaining b the Point of Deadlock orlmpasse
1. Over a MANDATORYSUBJECT-
partymay insist on bargainingand will not beconstrued s bargainingn badfaith.
Reason: Duty o bargain equiresmeetingand convening on the terms andconditions of employment but does notrequire assent to the other part/sproposals.
2. OveT a NON-MANDATORYSUBJECT -party qay not insist on bargaining o the
: polnt of inipasse, othendse;'he will beconstrued s bargainingn badfaith.
Example: The employels insistence hatthe union shouJd change its negotiatorbefore bargaining can proceed to theemployees' wage and benefits is aninstanceof bad faith bargainingbecausethe composition f the negotiating anel snot a mandatory ubjectof bargaining.
Hence, if Party A insistson first setfling anon-mandatory ubject.beforetaclding a
mandatory ubject, Party B may complainthat Party A's posture s just an excuse oavoid bargaining on the mandatory,
essential subjects of bargaining; thus,Party B can charge that Party A isbargaining n bad faith or is evadingbargaining on terms and conditions ofemployment - in short, Party A iscommittingULP.
Note: What the rule forbids s the postureof making settlementof a non-mandatorysubjecta pre-conditionB he discussion rsettlement f a mandatory ubject.
Deadlock - synonymouswith impasse or astandstillwhich presupposes easonable ffortat good faith bargaining but despite nobleintentionsdoes not conclude an agreementbetween he parties.
/n case of a deadlock in the renegotiation 6the CBA, the pafties rnay exercise thefoltowing'1* Call upon the National Conciliationand
MediationBoard (NCMB)to intervene orthe purpose of conducting conciliationpreventivemediation;
2. Refer he matter or voluntaryarbitration rcompulsory rbitration;
3. Declare a strike or lockout uPoncompliance f the legalrequirements. hisis the remedyof last resort.
ART.253:DUTY TO BARGAINCOLLECTIVELY HENTHEREEXISTSA
COLLECTIVEBARGAININGAGREEMENT
GeneralRule: When here s an existingCBA'the dutyto bargaincollectively hall also meanthat neither pafi shall TERMINATE norMODIFYsuch agreementduring ts lifetime. tis the duty of
expl
orthe
partiesas
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2011CENTRALIZEDAROPERATIONS
What may be done during the 60dayfreedom period
1. A taborunion MAY DISAFFILIATE ROMTHE MOTHERUNION o form a local orindependentunion only during he 60-dayfreedomperiod mmediatelyprecedingheexpiration of the CBA (Take note of thelimitation - see dlscussionson registrationof labor unions.)
2. Either party can serye a writtennotice oTERMINATE OR MODIFY THEAGREEMENTat least 60 days prior o itsexpiration period. (on re-negotiable/non-representational as-ped of the CBA -
see drscussionon Art. 253.13. A PETITION FOR CERTIFICATION
ELECTIONmay be filed.
Absorption doctrine- Otherwise known asAccretion Doctrine', applies when there isabsorptionand integrationby one entityof oneor more establishments aving he same kindand line of business having their respectivecol ec'tiveba gaining agreementswith differentlabor unions existing herein.Example s when
one company s sold to another; n which case,the duty to bargainwhich originallydevolvesupon the selling pady is transJerred o thebuying ntity.
Successor.lnlnterest Doctrine - When anemployerwith an existing CBA is succeededby anotheremployer, he successor-in-interestwho is a buyer in good faith has no liabilig tothe employees n continuingemploymentandthe colledive bargainingagreement because
these contracts are in personam.
Except:1. When the successor-in-interestxpressly
assumes he obligation;2. The sale is a device to circumvent he
obligation;or3. The sale or transfer s made n bad aith.
Substitutionaryoccurs a shift
Doctrine - where therein the employees' nion
employeescap ehange heir agent (the laborunion) but the collective bargainingcontractwhich is.still subsisting continues o bind theemployees up to its expiration date. They may,however, bargain for the shortening of saidexpiration date.
The employees cannot revoke the validlyexecuted collective bargaining contract with
theirepployer
:bythe simple expedient of
changing their bargainingagent. The newagent must respect,the contract (Benguet
Consolidated, lnc. v, Employees' and Workers'
lJnion-PAFLtJ,No.L-24711,Apfl 30, 1968)'
Limitation as to its APPlicationIt cannot be invoked o support he contention
that a newly certified collective bargaining
agent automatically ssumesall the personal
undertakings f the formeragent- like he "no
strike clause" in the CBA executed by the
latter (lbid).
CBA Proposed by Union may be imposed
LOCK, STOCK AND BARREL on emPloYer
who refused o negotiatea CBA: Under this
situation,he employerwhich violates he dutyto bargaincollectively,oses its statutory ight
to negotiate or renegotiatethe terms and
conditions of the draft GBA:proposed by the
union.Hence, he proposalsof the unionmay
be adopted as the CBA and, consequently'
imposed on the employer, lock, stock and
barrel.
ART. 253.A: TERMS OF A COLLECTIVE
BARGAINING- AGREEMENT (CONTRACT
BAR RULE}
Duration of the CBA. With respect o the representation,aspect,
the same asts or 5 YEARS.
. With respect o otherprovisionseconomic
and non-economic),he same may last or
a maximumPeriodof 3 YEARS after the
executionof the CBA.
Note: While the partiesmay agree to extend
the CBA's original five-year erm despite.anagreement for a CBA with a life of more than
five years, the bargaining.union's -exclusiveoargiining status is effectiveonly for five years
and can be challengedwithin sixty (60) daVs
prior o the expiration f the CAng r-qt-Lv^e
sA** sffi$e
1 .2.?
4.
5.
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LABORLAW
LABOR ELATIONS
z.
Effectivity and Retroactivity of other
Economic Provisions of the CBA
1. lf CBA is the VERY FIRST for the
bargainingunit, he partieshave o decidethe CBAs effectivitYdate.
Those made within 6 monthsafter the date
of expiry of the CBA are subied to
automatic retroaction to the day
immediatelyollorving uch dateof exptry.
Example:CBA expired on December31.
New CBA concludedon March 31. The
effectivitydate is January1.
Those NOT MADE WITHIN 6 MONTHS,the parties may agree.on the date of
retroaction.
This rule applies ONLY if there is an
existing agreement. lf there is no existing
agreement, there is no retroactive effect
because he date agreedup6n shall be the
start of the period of agreement.
Note: Ar.tlcle 259A on retroac{ion does
not apply if the provisionswere imposedby the Secretary of Labor by virtue of
arbitration. t appliesonly if the agreementvubsvoluntarily made by the pafties.
ART.234: o INJUNCT|ONULE
GeneralRule: NO temporary r petmanent
injunction r restraining rder n, any case
iivoNingor growing utof labord/Sputeshall
be ssued yanycourtor otherentity'
Execption:As otherwise rovided.lll1ti"/:t-.+21.&..iPowersf the CommissionAllRC) nd
=264 FrohiOiteddivitles) f hisCode'
Rationde: lnjundion contradicts the
constitudonalr"ference or voluntarymodes
of disPute ettlement.
The following are authorized to issue
injunctFons r restraining orders-
1.' NLRC r anydivision'Art' 218)
2. President.n case of labor disputein
industrieswhich are indispensibleo
nationalnterest.Art-263)3. Secretary. n case of labor dispute ln
industriei which are indispensibleo
national interest, the Secretarymay
assumeurisdiction ver the disputeor
certify th-esame to the Commissionor
compulsory rbitration'Such assumption
or certificition shall have the effect of
automaticallynjoininghe intended. r
impendingtrike-f one'has lreadyaken
place,allkrikingor locked ut employeesshall mmediatelyeturn o work and he
employer shall immediatelyre-admit
emPloYeesndresume Perations'
holdingcertiftcationelection
particularlyhenon-representationaspect(ECONOMIC
PROVISIONS aYbe renegotiatedotlater than three
apec{ of theCBA shall befor a tenn of
toe (5). Apetition for
certificationeledion may beentertained anda cqrtificationelection may becondrrctedwithin the 60-day periodimmediatelyprior' to theerpiratbn of$. CBA,
The notice ofintention toterminate, amendor alter thepiovbions of theCBA shall be filed
within the 60-dryperiod, mmediatelyprior to theepiration of theCBA.The economicprovbions,however, may berenegotiated notlater han tkee (3)
:Ye.gfF-,,.ii ...Ihq:9tffilii{ij"'i :;,,."':provbions entered
within 6 monthsfrom the expiry oftheir term as fixedin the CBA shallretoact to the dqyimmedatelyfollolring rch date,if beyond6 monthsthe etrectidrtyb byagreemefr of the
Note: third
parties securea
*;
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August17, 1967).Seenofesunder Afts.26jand 264\.
ART. 255: EXCLUSIVEBARGATNTNGREPRESENTATIONAND WORKER'SPARTICIPATION IN POLICY ANDDECISION-MAKING
Extentof the Workers'Right to ParticipateIn Policyand Decision-Makingrocesses
Such right refersONLY to participationngrievance roceduresndvoluntarymodesof
settlingdisputes nd NOTto formulation fcorporaterogramsndpolicies.
Note: An employermay solicit questions,suggestionsnd complaintsrom employeeseven hough he employees re representedbya union, rovided:1. The collective argainingepresentative
executes n agreement aivinghe rightto be presenton any occasionwhenemployee rievancesre beingadjustedby he employefi
nd2. Employer cts$rictlywithin he termsofthiswaiveragreement.
One-Union, One-CompanyPolicy - theproliferationf unions n an employer nit sdiscourageds a matterof policyunless hereare compellingeasonswhichwoulddenyacertainclassof .employeesthe right o self-organization for purposes of collectivebargaining.
Exceptions:1. Supervisorymployees'whore allowed
to form theirown unions.apartrom the. rank-and-filemployees;nd2. The policyshouldyield to the right of
employeesoformunionsor purposesotc-ontraryo law, self-organizationnd toenter into collec.tive bargainingnegotiations.a. Twocompaniesannotbetreatednto
a singlebargaining nit even f theirbusinessesrerqlated.'-'6. "Su6idiaries or' ibrporations ormedout of formerdivisions f a motheicompany ollowinga reorganizationmay constitute separate argainingunit.
Labor Management ouncll dealswith heemployer n mattersaffecting he employee'srights,benefits ndwelfare.'
Purposes re to:1., Promote ainful mployment;2. lmproveworking onditigns;nd
3. Achieve increased productivity (R.4.6971).
ARTS. 256-259r PETITION FORCERTIFICATION LECTION
Bargaining Unit - a group of employeesof agiven employer,comprisedof all or less thanall the entire body of the employees,which,consistentwith equity o the employer,ndicate.to be best suited to serve the reciprocal rightsand duties of the partiesunder the collectivebargaining rovision f the pw.
BargainingUnit v. Union
Certification Year - refers to the period
wherein collectivebargaining should begin,
which is within 12 months following thedeterminationand certificationof employeesexclusivebargaining epresentative.
Four Factors in Determining theAppropriate Bargaining Unit (G-CHE) (Sfa,
Thevotersare heCBU,whetherunion r non-unionmembersArfs.255 and 256).
Thevotersare heCBU, otjusttheunionmembers(Aft.231\.
ooaffis${r,s&ffi&"irrbffiil&s$s {}F L'Av{
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LABORLAW
LABORRELATIONS
4.
5.
6.
7.8.o
. beasonat;ano
. Probationaryemployee.
Things to Gonsider ln Determining theGommunity of InterestDoctrine1. Similarity n the scale and manner of
determiningarnings;2. Similarityn employment enefits,hoursof
work and other terms and conditions ofemployment;Similarity n the kindsof work performed;Similarity n the qualifications, kills andtrainingof the employees;Frequency of contract or interchange
among he employees;Commonsuoervision nd determination flabor-relationsolicy;Historyof previous ollective argaining;Desires of the affec'ted mployees;andExtentof unionorganization.
Methods to DetermineBargaining UnitA. Certification Election - the process of
determiningby secret ballot he sole andexclusive bargaining agent of the
employees n an appropriatebargainingunit, for purposesof collectivebargaining(employeesn the 3 payrollperiod prior othe certification lectionmay vote).
Certification Election Not Necessarywhen:1. Employer voluntarily recognizes the
saidunion;and2. Employees esignate he unionas the
bargai ing representative.
NatureA certification election is NOT ALITIGATION ut merelyan investigation fa non-adversarial act-finding character inwhich he Bureauof LaborRelationsplaysthe part of a disinterested investigatorseeking merely to ascertain he desires ofthe employeesas to the matter of theirrepresentation. Airline P/ofs Assn. of fhePhilippinesv. ClR, 76 SCRA274)
":' aAiliialTor Dismissalor he pefitionfor Certifr ationElectionD.O.40-03)1. Petitioner s not tisted in the
. depaftment's registry of legitimatelabor unions. or that its legalpersonality has been revoked orcancelledwith fi nality.
2. Petition was liled before or after thefreedom period of a duly registeredCBA; providedthat the 60-day period
. based on the originalCBA shall NOTbe affected by any amendment,extension,or renewalof the CBA.
3. Petition was filed within 1 Yearentry of voluntary recognition or 'a
valid certification, onsent, or run-off
electionand no appealon the results
thereof s pending.
A duly certifiedunionhascommencedand sustained negotiationswith the
employeror there existsa bargaining
deadlockwhich had beensubmitted o
conciliation or arbitration or had
become he subjectof a validnoticeof
strike or lockout to which an
incumbent or certi[fed bargaining
agent s a party
In caseof an organized stablishment,failure to submit the 25% suqqort
requiremeit lor the filing of the petition
for certification lection.
Consent Election - voluntarily agreed
upon by the parties with or without the
inter,'ention f DOLE
Note: Cedifcation election and consentglectio4 are separate and distinct from
each other.
El
Certification v. Consent Election
bythe
To determinehe issueofmajorityepresentationfall the workers in theappropriate collectivebargainingnitmainlYorthe purpose ofdetermining the
adminbtrator f the CBAwhen the contractingunion suffered massivedbaffiliationbut not forthe purpose ofdetermining thebargaining agent for
of collective
To determine. he sole
and exclusive bargainingagent of all the
employees in anappropriate bargainingunit for the purpose of
collectivebargaining.
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2011CENTRALIZEDAROPERATIONS
Summaryof the Procedure n VoluntaryRecognition D.O.4U03)1. When and Where o file: 30 days rom
such ecognition,mployerndunion hallsubmit'a noticeof voluntary ecognitionwith he RegionalOfficewhich ssuedherecognized abor union's certificateofregistration r certificateof creationof acharteredocal.
2. Requirements:Original nd 2 duplicatecopies f:a. Joint statement under oath of
voluntaryecognition;b. Certificate f posting f ointstatement
for 15 consecutiveays n at least2conspicuous places in the" establishmentf thebargainingni{.
c. Approximateumber f employeesnthe bargaining nit and he namesofthosewho supportedhe recognition;and
d. Statementhat the laborunion s theonly legitimate labor organizationoperating ithinhebargainingnit.
All accompanyingocumentsf the notice
for voluntaryecognitionhallbe certifiedunder athby he employerepresentativeand presidentof the recognizedabor'union.
3. Action on the notice by the RegionalOffice, through the Labor RelationsDivision, ithirr 0days rom ecei$of henoticeof voluntaryecognition.f there sinsufficiency f requirements,t must becomplied ithwithin10 days rom notice,otherwise, t shall be disrnissedwithoutprejudiceo its re-submission.
4. Effect bars the filing of a petition orcertification election by any labororganizationor a periodof 1 yearfromdateof entryof voluntary ecognition.
Effect oJ Voluntary Recognition by theEmployerThrough voluntary recognition by theemployer,he labororganizations recognizedby the employer s the exclusive argaining
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LABORLAW
LABORRELATIONS
Distinctions
Purpose s to determinehe sole andexclusivebargainingagent of all theemployeesn anappropriateargainingunit for the purpose of collectivebargaining
Requires a petition for certificationelectioniledby a unionor employer.Med-Arbiter rants he petitionand anelection officer is designatedby theRegionalDirector to wpervbe theelection
Note: Me&Arbiter may determine fthere s employer-employeeelationshipand f hevoters reeligible.
sufferedmassive isaffiliationndNOTfor the purpose of determining hebargaining agent for purposes ofcollective argaining
Purpose s to determinehe issueofmajority represertation of all theworkep in the appropriatecollectivebargaining nit mainly or the purposeof deterqininghe adminbtrator fCBA when the contracting union
Heldby agreementf theunions ithorwithout the participation f the Med-Arbiter
Takes place between the unions whoreceived the two highest number ofvotes h a certification electiorr withthree (3) or more choices, where notone of the unions obtainedthe majorityof the validvotes ca$, provided hat thetotal union votes is at least 50% of thevotes c6t
Takesplacentwo nstances:if onechoice eceives plurality f voteand he remaininghoicesesuhsn atie:orif allchoices eceivedhe samenumberof votes.In both instances,he NO UNION salsoa cfioice.
. yponttetitinffinbor organizationncludinga nationaluiion orfederationwhich hc atreaOyssued a
"f,"rt",erti-ficateo ils localchaptei participaing n-hecertifrcation lectionor a iocalcfraptbr Fi"t n""begn egged a charter cefiificate6v ne national: unionor feder?fori,que$io'ning:trenajority
statusoTne Incumbent argaining gentwithin he 6Gory reedom period eforeheexpiration f a CBA.
r The petl$on must be supported by the wrifienoonsentof at east25olo fall heemployeesn heappropriateargainin nit.
r Theemployer annot ile a petition or certification
:lil o",; onty a tesitimatbhbor organ-aiion,nationalunion or federdion which hal alreadybsugd a charter,certifpate o lts tocai
"t"ot",articipatingn the certifrcationlectionol. ii""fghaptervhichhas been ssueda charter ertiticateby .thenationalunionor federation an file such applicable n this
whenres o
b y aed to; and
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Fsn Getre@ollrgeot &
2011CENTRALIZEDAROPERATIONS
iffi=u6Fart;wever to the
ftle a petitionorcertificationlectionwithin he60
day reedom eriod CONIRIACT-BARUIE)2. \Nhen therd ls no CBA, then the labor
organization an file a petition or -cef{9{taoneljction at any time,subjecto the DEADLOCK
Requisites before a LSor Union can be
Declareda Winner @ouble Majority RuleJ
1. Majority of the eligible voters cast their
votes:AND2. Majorityof the valid votescast is for such
union.
How to Detefmine the Double Majority Rule
1. In determininghe eligible otescast (Firsf
Majortty), nclude spoiledballots.
2. In determining valid votes (Second
Majority), eliminate spoiled ballots but
includechallenged otes.
Run-Off ElectionA run-off election is proper if the following
conditionsexist,namely:
1. Valid Election ook place becausemajorityof the CollectiveBargainingUnit members
voted fFlrst Maiortty]2. The said electionpresentedat least fhree
choices (e.9., Union One, Union Two, and
No Union);
Note: "No Union' shall not be a choice n
the run-offeledion
3. Not one of the choices obtained the
majority (50%+1-sectnd majority)'of thevalid votes cast;4. The tofal votes for the unions is af /east
SP/ool the votes cast,5. There is no unresolved challenged votes
or election protest which if sustained can
materially lter he results;and
6. The two choices which garnered the
highest vates will be voted and the one
which garners he highestnumberof votes
will be declared he winn.erprovided hey'get the;iirejodty voteslof ,the ,total votes
cast.
Who Participates in the Run-Off Election:
The unions receiving-he highestand second
highestnumber of votes cas{.
ART.258.A: EMPLOYER AS BYSTANDER(New,Provisioh nserted by R.A. 94811
In all cases, whether the petition for
certificationeledion is filed by an employer or
a legitimate abor organization,he employer
BqKotldwyrlt.+ 6;1i.a.W iqa'rrwrn̂k,
shattnotbe considereda party thereto.with-a
concomitant right to oppose a peutton tor
certificati n eledi on.
The employer's participdtion in such
proceedings hall be limited o:
i. e"i"g"n"tified or informedof petitionsofsuch nature;and
2. Submittinghe list of employees uring.the
ore-electionconferenceshould the Meo-
Arbiter ac{favorablyon the petition'
Rules Which Prevent the Holding of a
Certification E ec'tion'
Contract - BarRulewnifu
"
v€lid and registered CBA of a fixed.
Ort"tion is subsisting,he BLR is not allowedto hold an election contesting the majority
"i"tu.ot the incumbentunion during the ftve
year erm of the CBAexceptduring he9041Y.
period immediatelyprior to the expirationof
the CBA.
Requirements in order to invoke Contract-
Bar Rule:1. Agreement is in witing and signed by all
contractingParties;
2. lt musl co-ntainhe terms and conditionsol
employment;CovereOemployees n an appropriate
bargainingunit;It is fora reasonableerid orduratlon;4.
5.o-
lt mustberatified',It must and
election n
LL#{}S S$.$ ...41tu
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LABOR AW
LABORRELATIONS
1 . The CBA is unregistered,.e. not certifiedby the BLR or not registered by theRegionalOffice.
The CBA is nadequdeor incomplete,.e.,it does not contain all the substantialdemands on terms and conditions andleaves out matters which should havebeen stipulated, where the stipulationbecomesa sweetheartcontract.DOCTRINE OF PREMATUREEXTENSION - the CBA was hastilyentered nto, .e., he renewalor extensionof the agreement was premature,frustrating he right of the employees o
petition for a certification lectionat theproper ime.Withdrawal of affiliation from thecontracting nionbroughtabout by schismor massdisaffiliation.Contract where the identity of therepresentative s in doubt (ALU v. Ferrer-Callela, GR No. 8fi85. November 6,198e)CBA entered into.between he employerand the union during the pendencyforcertification election (Vassar lndustiesEmployees Union v. E*rella, GR No.46562,March 31, 1978\CBA concludedbetween he employer ndthe union incumbent argaining gent) snot a bar to a certification lection iled byanother union and said CBA can berenegotiatedat the option of the newbargainingagent (AfU v. Hon. Noriel,No.L- 48367,January 16, 1979\.
A CBA registeredwith falsifiedsupportingdocuments (Sec. {bJ, RuteXVt, Book V,Rules lmplementing the Labor Code\.CBA was concluded in violation of anorder enjoining he partiesfrom enteringintoa CBA until he issueof representationis resolved:and
10.Petitions filedduringhe 60dayfreedomperiod.
DeadlockBarRule
A petitionor certificationlection annotbeentertainedf,.before,the.filingf the petitionfor certificationlection, bargdiningeadlockto whichan incum6entr certified argainingagent s a party,had.beensubmittedoconciliationr arbitrationr had becomehesubjectof a validnoticeofstrikeor ockout.
Deadlock ,ariseswhen here s an impasse,whichpresupposeseasonable ffortai gooOfaith bargaining which, despite nobleintentions,didnot concluden an agreementbetweenhe parties.
Indications of a Genuine Deadlock1. The submission f the deadlocko a third
partyconciliator r arbitrato[ and
2. The deadlock is the subject of a validnoticeof strikeor lockout.
Negotiation Bar RuleA oetition or certification lection cannot beentertained f, before he filing of the petition
for certification lection, he duly recognized rcertified union has commenced negotiationswith the employer n accordancewith Art. 250of the Labor Code. &i
CertificationYear RuleNo petition or certificationelection may befiled within one year from the date of a validcertirrcation, con$entibi run-off election orfrom he dateof voluntary ecognition.
Examplesof Bad Faith Bargaining1. Surface Bargaining - occurs when
employerconstantly hanges ts positions
over he agreement.2. Boulwarism - bccurs:
a. When the employerdirectly bargainswith the employee disregarding heunion.
b. The aim was to deal with the unionthrough the employees, rather thanwith he employeeshrough he union.
c. Employer submits its proposalsandadopts a 'take it or leave it" stand.This is not negotiation because thetake it or leave tf" stand implies
threat.
TITLE SEVEN.A.GRIEVANCEMACHINERYAND VOLUNTARYARBITRATION Asfncorporated by R.A. 671q
ART. 260: GRIEVANCE MACHINERYAND
4.
Nature of
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agreement an be registered n the absenceofsuchprocedure.
It is a part of the continuous process ofcollective bargaining ntended to promote afriendly dialogue between labor andmanagement as a means of maintainingindustrialpeace.
Note: Waiver of grievance machineryprocedure does not amount to arelinquishment f employee's ight to avail ofvoluntaryarbitration Apalisokv. RPN,May29,2003).
Voluntary Arbitration contractualproceedingsherepartieso a disputeSelecta judgeof their own choiceand by consentsubmit their controversv to him fordetermination.
Note: All grievancesot settledwithin7 daysfrom the date of its submission o thegrievancemachinery hall automaticallyereferredo voluntary rbitrationrescribedn
theCBA.Althoughhe provisionmentionspartiesto acollective argaining greement,"t doesnotmean hat a grievancemachinery annotbeset up in a CBA-less nterprise.n any workplacewheregrievancean arise,a grievancemachinery regaldlessof name) can beestablished.
ln a unionized ompany,Att. 255 allowsan
employee hetherunion member r not, toraise grievanceirectlyo theemployer.
Arbitration maybe initiated by:1. Submissiongreementwhere heparties
definehe disputeso be resolved,r2. Demandor Notice nvoking collective
agreerlentarbitrationlause.
Distinguished rom MediationA mediator s a disinterested 'o party whohelps.. ettle disputes nvolving erms andconditionsf.a OBA;lHe iBessignedand paidby he Stateand s not selected y he parties.He renders o final and binding ecision, utmerely uggestsolutions.
Effect of Mergerand Gonsolidation:
WileyDoctrineIt states hat, a duty o arbitrate rising rom acollectivebargaining_greement urvives heemployeis ceasing to do business as a
separate entity Bfter its merger with asub$antially arge corporation, o as to be
bindingon the larger corporation,whererelevant imilaityandcontinuity f operations
across he changen ownerships evidenced
by the wholesale transfer of smallercorporation'semployees to the larger'corporation's
Plant.
ART.261:JURISDICTIONFVOLUNTARYARBITRATORS OR PANEL OFVOLUNTARYRBITRATORS
ArbitrableDisputes1. Contract-negotiationisgutesdisputess
to termsof CBA.
2. Contract-interpretationisputes disputesarisingunderan existingCBA' involvingsuch mattersas the interpretationndapplication f the contract,or allegedviolationf tsProvisions.
Jurisdiction f VoluntaryArbitrators
1. All grievances arising from*
interpretationor implementationCBA:2. Thosearising rom the interpretationr
enforcement of company Personnelpolicies;
3. Hearand decidewage distortionssuesarising rom he application f anywageordersn organizedstablishments;nd
4. Unresolved rievances rising rom theinterpretationnd irndementationf theproductivityncentiverogramsnderR.A.
6071.Note: lt is the Labor Arbiterand not thegrievancemachinerywhich has jurisdiction
overdismissalsursuanto the union ecurityc|ause.
ExclusiveOriginalby Law
Jurisdiction Conferred
the
of the
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A personaccredited bythe Board assuch or aperson namedor designated,inthe CBA by theparties o act astheir VoluntaryArbitrator r oneciosen with or
without theassistarice ofthe NCMB,pursuant to aselectionprocedureagreedupon nthe CBA,or anyofficialauthorized bythe Sec. ofLabor o acl c
VoluntaryArbkator uponwritten requestand agreementof parties to alabordispute.
A disinterestedparty,usuallyagovernmentemployee whohelps n settlingdisputes-involving termsand conditionsof a CBA and sNOT selectedby the parties,
but is usuallyassigned andpaid by theState.
Regularourb.
lnformalproceedings;Arbitratordetermineswhat b
admissibleevidence.
A mediatorrendercno finaland bindingdecision andmerely
suggestssolutions. Heusuallysuggests thatparties submilthe issueto anarbikator.
Formalproceedings,Rules of Cciurtand the Ruleson Evidence
apply.
Arbitrators arenot obliged tofollowprecedents set
by otherarbkations insimilar ases.
Judges arerequired toobserve s{aredecr'sis.
appdiit6'trtffiCA under Rule43 of the Rulesof Court.
Appeal is to ahigher. courtunder he Rulesof Court andB.P. 29.
Distinctions monga VoluntaryArbitrator,Mediator. and a Court of Law
JudicialReview
Grounds:(JADES)'1. Lackof urisdidion;2. Graveabuseof discretion;
4. Erroneousnterpretation f the law;and
5. Denialof substantialustice. ,
CertiorariApplicableA voluntary arbitrator is a "quasi-judicial'
instrumentalitySec.9, B.P. 129,as amended
by R.A. 7902). lts decisions are therefore
appealableo CA under Rule43 of the Rules
of Coutt.Hence,a petition or certiorariunder
Rule 65 of the Rules of Court will lie ONLY
where a grave abuse of discretionor an act
without or in excess of jurisdiction of the
voluntary arbitrator s shown, which may be
filedwith he Courtof Appeals.q
TITLE EIGHT. STRIKES AND LOCKOUTS
AND FOREIGN NVOLVEMENT N TRADE
UNIONACTIVITIES,.,.
CHAPTER . STRIKESAND LOCKOUTS
ART.'263: STRIKES, PICKETING AMLOCKOUTS
Concerted Activi{-
one undertakenby twoor moft employeesor by one on behalfof the
others.
Strike - any temporarystoppageof work by
the concertedaction of employees as a resu/f
of an industrial or labor disPute.
kbor dispute - includesany controversyor
matter concerning terms or conditions of
employment or the association or
representation of persons in negotiations,flxing,maintaining, hangingor arranging he
terms and conditions of employment,
regardless of whether or not the disptrtants
$and in the proximaterelationof empoyers
and employees (Gold City lntqrated Port
Service, nc. v. NLRC,245 SCRA627).
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Law mayprohibitstrike but not the right toself-organization. A law may be passedprohibitingselectedsectors of labor from
resortingo strikes.However, law cannotbepassedprohibitingelected ectorsof laborfromorganizingnions.
Lockout- meanshe emporaryefusal f anemployero furnishwork as a resultof anindustrial r abor ispute.
Note: Strikeand lockoutare similar n thesense hat they connote emporary toppageof work.Thedifferences that stnke sdoneby
employeesor laborunion whileockout s doneby the employer.
Boycott - an attempt,by arousinga fear ofloss, to coerceothers,against heir will towithholdrom onedenominatedunfriendlyolabor"heirbeneficia usinessntercourse.
Slowdown - a method by which one'semployees,without seeking a completestoppage of wor( retard productionand
distributionn an effort o compel omplianceby he employer ith he abor emandsmadeuponhim. -
vl4drw l ioorporwr-rro-$41lftiad
Picketing- act of marchingo and fro theemployer's remises,usuallyccompaniedythe display f placardsndother ignsmakingknown he facts nvolvedn a labordisoute.This is an exerciseof
'one'sfreedomof
speech.
. Article2M(e) ot the LaborCodeprohibitsany person engaged in picketingfromobstructinghe free ngresso and egressfrom the employer'spremises(Jackbiltlndustries,nc. Vs. Jackbilt EmployeesWorkers Union-Naflu-KMU, G.R. No.
. 17161&19, arch 3,2@9.)
Note:Thepicketing f a privatehome n aresidential district is generally heldimproper,even when the picketers redomestic ervants. his s on
theqrounds
' 1,:."atfa,'honleiis nlt'an iriaustri-al,orbusiness nterprise,hat it is not acquiredor maintainedor pecuniaryainor profit,but rather, hat t is an institution sedandmaintaineds a placeof abode,and hatan enterprise ot conducted s meansoflivqlihood,or for profit, does not comewithin he ordinarymeaning f such ermsas business
'trade',or'industry'.Stafe .Cooper,205 Mlnn. 333, 285 N.W. 903,122A.LR.77)
Moreover, he right to peaceful picketing
shouldbe exercise{ by the workerswith
due respect or the rightsof others.Hence,
commission y any picketingemployeeofany act of violence, coercion or
intimidation is prohibited. Similarly'
stationary icketand he use of means ike
placingof objects o constitutepermanent
btocka?e or to effectively close points of
entry or exit in company premises are
likewisenot allowedbY aw
Strike-Breaker- any pefson who obstrucis,
impedes or interfered 6y force, violence,
coercion. threats or intimidation with anypeaceful picketingby employeesduring any
labor controversyaffecting wages, hour or
conditionsof work or in the exercise of the
right to self-organization or collective
bargaining.
Strike Area - the establishment,warehouse,
depots,plantsor offices, ncluding he sitesor
premises used as runaway shops of the
*employer $ruck against, as well as the
lmmeOiate vicinityactuallyused by picketingstrikers n moving o and ro beforeall pointsof
entranceo and exit romsaid establishment.t
also includes he area immediatelybefore he
points of entranceand exit of establishment
struck against.However, he ingressto and
egress from the establishment truck against
aie not part of the strike are, and may not be
blockednor picketed.
Types of Strikes
1. Economic strikes-
used tosecure the
economicdemandssuch as higherwages
and better working conditions for the
workers. t futland n fu kalts t funcUo-ul.rnruya*,t
2. ULP strike - protest against ULP of
management.
ms of
I no rl . 'J thY1
V(. flr,,{ill,a.ri?rhrl
> wf o.r,l,tl,rr
l&t"frs,&lrt
thatnot
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LABOR AW
LABOR ELATIONS
lllegal: Fails to complywith certainrequirementsf the law, o wit noticeofstrike, ote,and eport n strike ote.
3. Sympathetic trikes workstoppagestworkers fonecompanyo make omrnoncause with other strikers of othercompanies, without demands orgrievancesof their c^/n against theemployer.
lllega :Becausehere s no abor isputebetweenhe workerswho are oining hestrikers nd he atte/semployei.O otwnn ol c'te -c'arru,f
4. Primary Strike - refers to a strikeconducted y the workersagainst heiremployers involvinga labor disputedirecfly ffectinghem.
Legal: Becausehere s a labordisouteinvolved.
5. SecondaryStrikes- areworkstoppagesof workers of one company to eiertpressure n their employer
o that thelatterwill in turnbringpressure pon heemployer f another ompany ithwhomanothernion asa labor isoute.
lllegal:becausehere s no labordisputeinvolved. strikecan validly afe jtaceonly nthepresencef and n relationo alabor dispute between employerandemployee.
6. Cause OrientedStrikes
-to make astandoncertain ationalssues.r,o;cieJ1p6g;
.1:lg:.ng..t"yan" lilegat:A,,Wetga gb3lan" is iilegatbecauset is a pJtiticalstrike and thereforehere is n"itn"i-
"arg.ainingeadlock or any ULp. t is apoliticalally.
7. QuickieStrikes briefandunannouncedtemporary orkstoppage.,
a.lr.a. ti4ht' in4 t$kg-il , ':,1',3i 4qryt,dJrrdiiinaf ...: .1 .
Thecolleciive argaininagentof the appropriag,bargaining unit candeclare an economicstike.
Either:l- Collectivebargaining
agent;or2. The legitimateabor
organizationn behatfof its members.
ngoris
Er-Eeand he
Economic v. Political Strike
A voluntary strikebecause the employeewill declare a strike tocompet managementtogrant its demands.
An involuntaryslrike; thelabor organization isforced to go on strikebecause of the ULPcommited against themby the employer. lt is anact of self-defensesincethe einployees are beingpushed to the wall andtheirnonly remedy is tostage a stike.
30daysftom he ilingofthf notice
of strikebefore he intended ateof actual trikesubjectothe7-daystrikeban.
15 daysfrom he ilingof
the notice of strikesubject to the 7-daystrike an.
No exceptionmandatory.
Cooling-off eriod maybe dispensedwith, andthe union may takeimmediate ction n caseof dismissal from
employment of theirofficers duly elected inaccordance with theunion'sconstiMionandbyJars, whlch mayconstltute unlonbusting where the
person/s strike s called;
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2. The exlsfence of a disptle between thepartiesand the utilizationby labor of theweapon of concerted efusal o work as a
means of persuading or coercingcompliance with the working men'sdemands:
3. The contentionadvaneedby the workersthat afthbugh the work ceaseq theemployment relation ls deemed tocontinue albeit in a state of belligerentsuspension;
4. There s work stoppage,whichstoppage stemporary;
5. The work stoppage is done through the
concerted action of the empoyees, and6- fhe striKng group is a legitimate labor
organization,and in case of bargaining'.'.:.i :deadlock, is the employees' sole
barga ning representative.
Non-Strikeable lssues (NlLAW)(Article 263 1b); Dept. Order no. 9, Rule 12,Sec.2)1. Violationsof CBA which are aot gross in
character shall be resolved via the
GrievanceMachinery;2. lnter-unionor lntra-uniondisputes;3. Labor standards cases such as wage
orders (Guidelines governing LaborRelations [19 Oct. 1987] issued by Sec.Drilon;see also Article261, LC);
4. Those issues which had already beenbrought to . voluntary or compulsory
3rloitration.5. lssues nvolvinggage distortion ausedby
legislatedwage orders.
Procedural Requisites (GF-SARC-7)1. lt must be based on vatid and factual
ground; a strike or lockout must be basedon eithera. Collective Bargaining Deadlock
(economic)b. UnfairLaborPractice political)
l, iyrttrr&t r,tnirn Yuytin0
Purposes: {a) to inform the NCMB of the
intentof the union to conducta strikevote;
(b) give he NCMBample ime to decideon
whetheror not there is a needto supervisethe conductof the strikevote to preventany
acts of violence or irregularities ttendant
thereto; and (c) should the NCMB decide,
motu proprio or upon the request of any
interestedparty including he employer, o
supervise he strike vote, to give it ample
time to prepare or the deploymentof the
requisitepersonnel,ncludi g peaceof icers
4. A strike vote must # t"r"n where a
majorityvote of the membersof the unionmust Spprove t, obtained'bysecret ballot
in a meetingdulycalled or the purpose;or
a lockout vote must be taken where a
majorityvote of the members of the Board
of Diredorsof a corporation r association
.orpartners n a partnership,must approve
it, obtainedby secret ballot in a meeting
duly called or the PurPose;5. A strike or lockout vote leport should be
- submittecf o the NCM-DOLE at least
seven davs before the intendeddate ofstrike or lockout * du. trrwl+pralrsvrakot
i/ninor'rh M/irdPurpose: The evident ntentionof the law
in requiringhe strikeor lockoutvote report
as mandatory requirements is to
reasonably egulate he right to strike or
lockout, which is essential to the
attainmentof legitimatepolicy objectives
embodied n the law.
6. Except in cases of union busting' thegooling off periodprescribedby law should
be fully observed7. The 4ay waiting period or strike ban i ttYl
after submissionof strike or lockoutvote to lvtithe NCMB-DOLE houldbe fully observed I f.in ALL
2.
Inr,nlrVtI
rrh ndtf
rrk t{.i'}.1,
A noticeof strikeor lockor.rt ustbe filedwithNCMB-DOLE;rrgicyrflJcMs)
?.At
Jq,st3Q daysr rom tlle intended
' 'date'thereof, if the ;issues nvolvedarose from a collectivebargaining
At least 15 days from the intendeddate, if the..issues raised are in thenatureof unfair labor practices.
rdrnlr.rn deadlock.
,g.nq Wrr .
I
oi{lF
, rh(r{,3. A notice must be gerved to the NCMB-;i'rrdl DOLE at least 24 hours prior to the taking
of stfike or lockoutvote by secret balloting,informing said office of the decision to
conduct a strike or lockout vote, and the, date, placeand timethereof;
b l,{ -w*r fkr[-tt[TnC6 lrl,,f
strike s a
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LABORRELATIONS
Labor Code - the constitutionalpreceptsof due process mandate that the otherparty be notified of the adverse action of
the opposinS party (Filipino Pipe andFoundry Corporationv. NLRC, 3tB SCRA6q.
b. Coolingoff Period before theintendeddateof actualstrikesubjectto the 7{ay strikeban.
a. Bargaining eadlock 30 daysb. ULP 15daysc. Union Busting - cooling-off
period NEED NOT BE
OBSERVED and the unionmay take action immediatelyafter the strike vote isconducted and resultssubmittedo regionalbranch
It is that period of time given theNCMB to mediate and conciliate heparties. lt is that span of time allottedby law for the parties to setfle theirdisputes n a peacefulmanner,before
staging a strike or lockout. lt isreckoned from the time when thenoticeof strikeor lockotrt s filed Wththe NCMB, a copy of said noticehaving been served on the other partyconcemed. Otherwise, he mere filingof the noticewith the NCMBwithout aproof of vatid service thereof to theother party concernedwill not triggerthe runningof the cooling-off eriod.
c. Strike Vote - a requirementwhereinthe decision o declare a strike mustbe:i. Approvedby a MAJORTTY f the
TOTAL UNIONMEMBERSHTPnthe bargaining nit concerned notof the whole bargaining nit);and
ii. Obtainedby SECRETBALLOT nMEETINGS OR REFERENDAcalled or the purpose.
Purpgse: to ensure-that he intendedstrike 16a majoritydebsion.
d. 7-Day Strike Ban - the 74ay waitingperiod before he date of the purportedstrike withinwhich he union ntendingto conduct a strike must at leastsubmit a report to the Department asto the result of the strike voteiintended to give the DepartmentanopportunityTO VERTFYwhether theprojected strike really carries theimprimaturof the majorityof the union
members n addition o the cooling-offperiodbeforeactualstrike. l
Should the strike vote be takenwithin or outside the coolingoffperiod?The law does not specify but NCME'sPrimer on Stike, Picketingand Lockoutstates that if the strike vote is filedWthin the cooling-offperiod, he 7-dayrequirement "SHALL BE COUNTEDFROM THE DAY FOLLOWINGTHEEXPTRATTONF THE .COOLING-OFFPERIOD." In effect, the 7 daYs are
added o the 15 or 30 days.
Note: The7-daywaitingperiodor strikeban applies n€H:cilses,ncludingunionbusting. What the law comPletelYdisregards in cases involving unionbusting s only he cooling-off eriod.
3. Means EmployedTest - a strike ma'y belegal at its inception but eventually be
leclared itlegal if the strike is
accompanied by violence which iswidespread, pervasive and adopted as amatter of policy and not merely violencewhich is sporadicwhich normallyoccur in
a strike area. (See prohibited activities
under Art. 264.\
Note: The 3 tests must concur. Non-compliancewith any of the aforementionedrequisites enders he strike llegal.
Good Faith Strike Doctrine - a strike may beconsidered egalwhere he unionbelieved hat
the company committed ULP and the
circumstanceswarranted such belief in good
faith, althoughsubsequently uch allegationsof ULP are found out as not true (Bacus v.
Ople, GR N.9
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t)
8.o
5. Declared in violation of an existinginjundion;As a general rule, injunction
cannot beissued against the conduct of picketingexcept:a. Where picketing s carriedout through
illegalmeans,b. Where picketing nvolves he use of
violenceand other llegalactsc. Where injunctionbecomes necessary
to protectthe rights of third parties.Likewisenjunction annotbe issued
Note: Strikes or lockouts cannot beenjoined except when illegal acts arecommitted or if the strike or lockoutappears o be illegal n nature.
: - : r - r i i r ' : : i r '
Strike n" violation of assumptionorcertificationrder.Gontraryo an existing greement,uchas a no strike clause or conclusivearbitrationlause.
Note:The right o strike s notabsolute.thasheretoforeeenheld hata no-strike,no-lockout rovisionn the CBA s a validstipulation tthoughhe clausemay beinvoked y an employer nlywhen hestrike s economicn nature r onewhichis conducted o force wage or otherconcessionsrom the employerhat arenot mandated.to e grantedby the lawitself butnotULPcases).
Strike taged ya minority nion.Strikestagedby a unionwhich is notlegitimate
10. PrematureStrike-Astrike is illegal ifstaged without giving the employerreasonableime o considerndacton hedemandsmadeby the union Almeda s.ctR,96 Phit306) l
ConversionDoctrine Involvesonversionfstrike romeconomico ULP,andviceversa.
A strikeor lockoutmaystartas an economicstrikeor lockoutbut ateron, because f theadtuation,:of\he'parties,he sameimay biconvertedo an unfair abor practice ULp)strikeor lockout,or vice versa.Under hissituation,heconversionoctrinehallapplynwhichcase he requirementsor theconvert€dstrikellockoutto economicromULp,or viceversa,as the casemaybe) hallbe observed.(See Conso/idated-abor Associa&bnof thePhils.Vs.Marsmanand Co., 11 SCRA589,
5e3)
When can the Secretary of Labor Assume
Jurisdiction over a Strike ( Rj$ vl0iiru n4n()
When there existsa labor disputecausingor
likely o causea strikeor lockout n an industryindisoensable o the national interest. Thepower of assumption of jurisdiction or
certification y the Secretaryof Labor s in the
natureof a policepowermeasure.
The secretary of Labormay either: / [l'6';*1. Assumeurisdiction nddecide t, or2. Certify the same to the NLRC for
compulsory rbitration. *
Note: A labordisputemay be assumedby the
Secretaryor certified o the NLRCeven beforethe actualstagingof a strikeor a lockoutsinceArticle 263of the Labor Codedoes not requirethe existenceof the strike but only of a labor
dispute nvolving ational nterest.
Note: What constitutes "INDISPENSABLEINDUSTRY' s based upon the discretionof
the Secretary of Labor. However, the
Prgsident of the Philippines shall not beprecl ded'fromdetermi ing industrieswh ch in
his opinion are indispensableo the national
interest.
Effects of the Assumption of Jurisdictionof the Secretary1. AUTOMATICALLYNJOINS hc iNtCNdCd
or impending trikeor lockoutas specifiedf
in the assumlptionr certification rber;
2. lf one has already aken placeat the time
of assumption r certification, ll strikingorlocked-out employees shall
IMMEDIATELY ETURNTO WORK;ANd3.. The employer shall immediatelyresume
operations and RE-ADMIT ALL
WORKERS under the same terms andconditionsprevailingbefore the strike or
{F-Kffi#qSFr+uon
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3. Secretaryf Labormaysubsume endinglaborcasesbeforeLaborArbiterswhichare involvedn the disputeand decideeven issues allingunder he exclusiveand originalurisdictionf LaborArbiterssuch as the declaration f legalityorillegalityof strike lnt'tpharmaceuticalsv.Sec.of Labor,GR No.92981-8, January9, 19921.
4. Power fSecretaryfLabors plenary nddiscretionarySf.Luke'sMedicalCenter .Torres,GRNo.99395, une29,1993\.
Entitlemento StrikeDuration ay
GeneralRule:Strikers renotentifledo theirwagesduringhe period f a strike,EVEN FTHESTRIKESLEGAL.
Reason:Nowor( nopay,ora fairday'swagefora fairday's abor
Remedy:A workerwhoabsents imselfromwork as a result of a strike, must seekreimbursement f his wagesfrom his union
whichdeclaredhe strike,OR he mighthavehis absence rom workchargedagainsthisunused acationeaves
Exceptions:1. Incaseof a ULPSTRIKE,nthediscretion
of the authority ecidinghe case (Seetable for more distinction betweenEconomic ndULpsfnke.)
2. Where he strikersVOLUNTARTLYNDUNCONDITIONALLYOFFERED TORETURNTO WORK,but the emptoyerrefused o accept he offer (e.g "we wittreturn tonono$' and NAT "witting toreturn provided\.
Note Theyareentifledo baclorrragedromthedate he offerwasmade.
3. Where there is RETURN-TO-WORKORDER and the employees aredisciminatedagainst.
Fff""t They are entifled to backwagesfroni hedatdofdiscrimination.
4. Whereheemployeesidnotparticipatenthe strikebut were practicallyoc(ed_outby heemployer.
5. When einstatementsno onger ossible.
Ruleon Reinstatement f StrikingWorkers
9*fl"tRule:Striking
mptoyeeslre ntifledto reinstatement,egardless f whetheror notthe strike was the consequericeof theemploye/sULP.
Reason: Because while out on strike. thestrikersare not consideredo have abandonedtheiremployment, ut ratherhave onlyceasedfrom heir abor.
The declarationcrfa strike is nof a renuncidionof employment elation.
Exceptions.'The folloving strikers are NOT entitled toreinstatement:1. Union officerswho knowinglyparticipaten
an illegalstrike;and2.' Any siriker/unionmembef who knowingly
participates n the commissionof illegalacts during he strike.
Note: Those union members pgg*[.qiped anillegal trikebut have not committddaii ittegalact shall be reinstated but without anybackwages.
Rules in Strikes in Hospitals1. lt shall be the dutyof strikingemployees r
locking-out employer to provide and
Araintain an effective SKELETALWORKFORCE f medicaland other healthpersonnel or the durationof the strike orlockout.
2. Secretary of Labor may immediatelyassurne jurisdidion within 24 hours lromknowledge fthe occurrence f suchstrikeor lock-outor certify t to the Commissionfor compulsory rbitration.
ART.264:PROHIBITED CTIVITIES
Labor OrganizationsNO labor organization or employer shalldeclarea $rike or lockout1. Without irst having bargainedmllectively
in accordancewith Tifle Vll of this Book
nrsts$d#
Third
or interfereimpede
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nU r rj rJ
1. Any peaceful picketingby employeesduring any labor controversy r in theexercise f therightof self-organizationr
collectiveargaining,r2. Shall aid or abet such obstruction r
interference.
EmployersNO employershall use or employ any
/ STRIKE-BREAKERor shallanyperson e( employeds a strikebreaker.\-r c.lr.or'FIN(
PublicOfficialor EmployeeNO public official or employee, ncluding
officersand personnel f the New ArmedForcesof the Philippines r the IntegratedNational olice, r armed ersons:1. Shall diiiff',ff4j ntroduceor escort n any
manner, a scab or) any,individual hoseeks to replaceslrikers n enteringorleavinghe prernises f a strikearea,orwork n place f he strikers,
Scab - is an employee ho refuses ojoin a strikeor a union memberwho
refuse o strike or who returns o workbefore .strikes ended r settled.
2. The policeforce shall keep out of thepicketinesunless ctual iolence r othercriminal ctsoccur herein:
PROVIDED,thatnothing erein hill beinterpretedo preventany publicofficersfrom akinganymeasure ecessaryo:a. Maintain eace ndorder;b. Protectife andproperty; ndlorc. Enforcehe aw and egal rder.
PersonsEngaged n PicketingNOperson ngagedn picketinghall:1. Commitany act of violence,'coercion'r
intimidation;r2. Obstructhe free ngresso or egressrom
the employeis premises for laMulpurposes;r'
3. Obstrudpublichoroughfares.; . . ;
Rirlri?on'oifian#l
o}-Asiumpt'rbn 'orCertificationOrderor Return-to-WorkOrderpursuant thereto issued by the DOLESecretaryor'the NLRG
Generat Rule: Non-compliance ith theassumption or certification order of theSecretary of Labor and Employment, r areturn-to-wprk rder issuedpursuant heretoby the Secretaryof Laboror by NLRC,towhicha labordispute s certified,s considered
an illegalact committedn the courseof theslrikeor lockout.
Effect In case of non-compliance f strikers,
they may be subject o immediatedisciplinary
action, including dismissal or loss of
employment status and even to criminalprosecution. (San Juan De Dios Education
Foundation Employees union-AFW vs. San
Juan De Dios Foundation lnc, G.R. NO'
143341,Ma 28, 2004). Moreover, he strike
becomes llegal because of the disregardof
the return-to-work order issued by the
Secretary (Jnion of Filipro Employees us
Nesf/ePirlls., G.R.A/O.88710,Dec 19, 1990)
*(
Rule on Hiring of RePlacements
The hiring of replacements or the stnkersduring a strike s NOT an unfair aborpractice
act of the employer.Such hiringmay even be
done on a permanent basis in case of an
economic strike. An employer is entitled to
carry out his business.But in an unfair abor
practicestrike,such replacementsmay noi be
permanentlyemployed. n case of defianceof
a return-to-work order, or a certificatlon or
assumption rder,a hearing s not required or
tne employer-o validly hire replacement or
workerswho committedhedefiance.
Liability of Persons Committing Prohibited
Acts under Art. 264:Any personviolatingany
of the provisionsof AtL264 shall be punished
by a fine of not lessthan Pl,000.00 nor more
than P10.000.00and/or imprisonmentor not
less than 3 months nor more than 3 years or
both at the discretionof the court. f the person
so convicted is a foreigner' he shall be
subjected o immediatesummarydeportation
and will be permanently barred from re-
entering the country without the specialpermissionof the Presidentof the Philippines.
lf the act at the same tirne is a violation of the
RevisedPenal Code, a prosecution nder he
unionoffer,retum
Reduced referendumthe purpose f
sameact undversa,
conductedby
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LABORRELATIONS
determininghether r not he reduced fferof the union s acceptableo the boardofdirectors,rustees r partners. henat eastamajority f the boardof directors r trustees r
the partners oldinghe controllingnterestnthe partnership, ote to accept he reducedoffer, he workers hall mmediatelyeturn oworf
.gnd the employer hall thereuponreadmithemupon igning f heagreement.
ART. 66:ARREST NDDETENTTON
GeneralRule:A police fficer annot rrest roetarna unionmember or unionactivitiesWthout previous consultationswith theSecretary f Labor.
Excepton grounds f:1. Nationalecuritv:2. Public eace, nd3. Commissionfa crime.
An arrest can be laMully made in thefollowing ases:a. Any personwhoobstructshefreeand
lawful ingressand egressfrom ineemployeispremisesr whoohstructs
. pubticthoroughfares.b. Any personwho shall have in his
possession deadly weapons in. - viotatiol.ol B:p. Bt9.:g ancjRrearms
and.explosives Guideiinesor thecondud of pNp/AFp personnel inLaborDisputes)
TITLEONE. ERMINATIONF
EMPLOYMENT
ART.279: ECURITYFTENURE
Securityof Tenure the constitutionalightgrantedhe employee,hat he employerhallnot terminatehe servicesof an employeeexcept or ust causeor when authorized ylaw. t extendso regular pergranent)s wellas non-regular (temporary)employment(Kiamcov. NLRC,GR No. 129449, une 29.
1ege)
Note:Security f tenureclauseqno.$ggnfinedto casesof terminationf employef:employeerelationshiplone. t is also ntended,tohieldworkers rom unwarranted nd unconsentedDEMOTIONndTRANSFER.
ReliefsAvailable o an lllegallyDismissedEmployee1. Reinstatement;ncl/or
2. Payment f baclarrlages.
Reinstatement restorationf the employeeto the state romwhichhe has beenunjusilyremoved r separatedwithout ossof seniorityrightsandotherprivileges.
Formsof Reinstatement1. Actualor PhysicalReinstatement the
employeehallbe admittedacko work.2. PayrollReinstatementthe employees
merelyeinstatedn thepayroll.
What ls the Effect of the Reversatof LaborArbitels Decision to the ReinstatedEmployee?lf the is later
that thethen
ha$S*l 8S&g
thethe
isfor
actualrefund
need of142732-
1. To determinewhether or not
theimproved ofGr of theEMPLOYER isacceptableo the unionmembers.2. To ascertainhe realsentimentof the silentm4onty of the unionmembers nstike.
1. To determinewhether
or not the lmprovedd tfie UNION isacceptable to board,trustees ndparhers.2. To ascertainhe realsentimentof the silentmajonty of the unionmembers nsffike.
On or before the 30bday of the strike.
On or before the 30n davof the lockout
33,
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2011CENTRALIZEDAR9PE AT|eNS
2. That t would be inimical o the employers
Mav A Court Orderfhe Reinstatementof,,a
#iltJE; ptoy"'" venf thePrayer f the"C;;i;t
rt Ji ' Nt InctudesuchRetif?
YES. So longas tnere s a finding hat the
;;i";;'iva"s illegallvdismissed'he court
""tioio"t the reinstatementf an employee
;;;"j;ih" iomptaint oesnot nclude prayer
ioi"rein=tatembnt,nless'9f. "o1lll:tl?
emptoyee has waived nls r g''t-- ::
i"i'i"tj'tlt"nt. By law, an employee.*ho -':u-niu"tfv i"rnissebs entitledo reinstatement'
;iffi; ;idt. rhe mere ract that the
ilripi"ini-oio notpray or reinstatemerrtil l
iii'"pt"iuoi." the' employee'
,b--"""1"-:i"lnnii"iiti"" of law and procedut"-:t:iio*n"J uponn abor roceedingsPhe1c.n'e11
);;;ib;'rl vr4tdaez'GRNo' 1161158'
MaY ,2O05)
What happensf there s an ordgr-ojiiiittii"tr{irtbttt he positions no tonger
available?
The employee should be S-'v^91.-"suisrnrtrTu(LLYouIvALENTostTloN'
;- NO' suOstantiatty quivalent.p-"-='1:",1,-'tavailable,einstatementhould otbeordereo
ffift; inai-wouron erfect"?Iq:J^'thu
;;;t;' io do the imPossiblell -1Y.:n,sitJati6n,he employeehouldmerelyDe
i'i"*' srpnpnrror'r PAYconsistilq-of,:.|"Y""iiinZiii'r* ""ry
vear rservice-(t1)''iiriiii"i-trtitnc"v''tu' on No 83523'
'August31, 1989)
Doctrineof StrainedRelations
fr]l*t-in" employer an nolonger rust he
tpi"vt" and vice-versa'or there were
itti"t-r:ti"." of bad faith to each other'
t"ii"i"t""'"nt couldnot effedivelyserve.asa
il;y. T# doctrine pplies nly o posrtions'iiiin'rrq,i'"
trust aid confid'ence'-(GIobeiiiii"iJ.t'tnc. GR No'82511'March '
1e92).
Under the circumstanceswhere the
Jmpfoyt"nt relationship.as .become,'o
f,ilniO.
to*'pr"d,r5e..'"arqnoniorlgorkin$
relationship,"ni=-1i"i'- lltt'
nbpes atreconciliation re nil after reinstatement't
would be more beneficial o accord the
"tpfoy""backwages ndseparation ay'
SeparationPay n Lieuof Reinstatement
Proceeds'rom an ittegaldismissalwierein
ieiniiatement s ordered'but annotbe carried
;rt as in the ollowing ases:
;.'H.init"t"tn"nt
clnnot be effected n view
of the longp"""'g" oJ ime or because f
the rbalities fthesituation;
J .
(
67
interest;Reinstatementayno.tonoere easibte;
ii;ll';;i *rve the besiinterestor the
partiesnvolved;iil;;;; will be PreiudicedbY the
fl}ilXT,Tl)L" PruoenturPose;nd-^il"irh;;;;" a resultanttrainedelations
Note:Underpresentawsand urisprudence'
."-*irtion paymaybeviewedn ourwaYs:^^,
i: "il ii;; li'reinslatement n i legaldismssar'
;;; *n"'" the emPlofed s ordered
iJtti"t"obut reinstatement is nor
feasible;2. n.'liliiov"r" stalutoryblisation'i:3-:''
"i
-r"s"rterminationue to' authorlzeo
Iru"-u1-rno"trt'283 nd284: - -:^,3. ;ilffiil assistance'sanact3f:?::l
iustice ndeven n caseof legaldismtssat
under4rf .2SZ4. As employmenteneflt lfll* in CBAor
"o*-P*VPolicYPoqulz'2006)
eJkwagestf-':f
1 slt":*?ra:il1,1;f:to compensateim.or,tosrl-1^i'i^t^"^I"" ["o"'oeriod f hisdismrssal't presupposesllega
termination'
Note:Entitlemento bact<wagesf he llegalty
dismissedmployeelows rom awive:{'1e
il"iJ;;k ior.t, t t"v begiven-ll" r,?'l^:"
toclaimbaclovages.n'[riu"o'pt"intforil|egdismissals a mer"'piocedural?ry" S::h;";;;i- dereat?",nilln,3ii"'i,0,*;i o?substantiveaw' 1s
i;ffi;* io' rtbiao'December' 2001)
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LABORRELATIONS
2. Vacation or service incentive eave andsick leave;and
3. 13* monthpay.
Note: Facilities such as uniforms, shoes,helmetsand ponchosshould NOT be includedin the computation f backwages.
Reason: said items are givenfree, o be usedonly during official our of duty not for privateor personaluse.
Note: The award of backwages is computedon the basis.of a 30-day month (JAM Trans
Co. v. Flores, GR No. L-68555, March 19,1egs).
Monetary awards to illegally dismissedOFWs.OFWsarenotentitledo reliefsunderArt 27gof the LaborCode.This s so becauseOFWsare contractual mployeeswhoserights andobligationsare governed primarityby theRulesand Regulationsf thepOEA.
WhichTakesPrecedencen ConflidsArisingBetweenEmployer'sManagementPrerogativeand the Employees'Right to Secuity oftenure?The employee's ight to securityof tenure.Thus,an employer's anagementrerogativeincludeshe right o terminatehe seMcesofthe employee but this managementprerogatives limited y he LaborCodewhichprovideshat the employer an terminate nemployeeONLYFOR A JUST CAUSEORWHENAUTHORIZEDYLAW.This imitationis becauseno less than the Constitutionrecognizesndguaranteesmplofee'sight o
securityof tenure(Aft. 279,LaborCode;Aft.Xlll, Sec.3,Constitution)
ART. 280: REGULAR AND CASUAL,..EM'LO'MENT
---- --ri:l i:**
FourKindsof Employees nder Aft. 2801.Regularmployment2. Casual mployment3. Project mployment4. Seasonalmployment
Other orms of employmentunder BooRVI5. Fixed-Periodmployment6. Probationary
1. Regular mploymentEmploymentarrangementwhere theemployee:a. Has been engaged to Perform
activitieswhichare usuallynecessaryor desirablen the usualbusiness r
tradeof heemPloYer;rb. Hasrendered t leastone(1) yearof
service, whether such service iscontinuous r broken,with respect otheactivitynwhichhe s employed.
Restoresthe employeewhg was unjustlydismissedo the positionfrom which he wasremoved.e. to hb statusquoantedismbsal.
Allows the sameemployee o recover romthe employer that whichhe had lost by way oiwages as a resuft of hisdbmissal.
The awardof reinstatements not inconsbtent iththe awardof bac-kwages.
Separationpay b paidreinstatement nopossible.
Backwages b paid forthe compensation whichotherwise heshould have earned hadhe not .been illegallydismissed.
employee'sengthComputedrom he imeof illegaldismissal p to
'reinstatement.orreinstatementb no
longerpossble,until heof the decision.
Paid as a wherewithalassistance during the
that an employee
Paid for the losseamings during theperiod between illegaldismissal andreinstatement.
b not inconsistentseparationay.
oetwe6SAdtiffiffi*ftivity
at theto the
the
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2011CEI.ITRALIZEDAROPERATIONS
b. Period of Serv'ce Iest-Whether or notthe employee has rendered at least
oneyear
of service. An employee,who is allowed o work for at leastoneyear, whether the same is continuousor broken,shall be considered egularemployee.
c. Probationary Employme;nt lesf-Whether or not he employee isallowed o work after he lapseof theprobationary eriod.An employeewhois allowed to work after the lapse of
.the probationary period shall be
considered regularemployee.
tjasual EmploymentEmployment ,arrangement where anemployee is effga(ied to perform activitieswhich are not necessaryor desirable inthe usual trade or business of theemployer.a. The status of regular empoy4ent
attaches o the casual employeewhohas renderedat least one (1) year of'
service, whether such service iscontinuousor broken,with respect othe activi$ in which he is employedand his employmentshall continuewhile such activityexists.
b. A casual employee s only casual forone year,and it is the passageof timethat gives him a regular status(KASAMMA-CCO v. CA, GR No.159828,April19,2006\
Purpose: to give meaning to theconstitutional guarantees of security oftenure and right to self-organization(Mercado v. NLRC, GR No. 79869,September5, 1991).
Project EmploymentEmployment has been flxed for a specificproject or undertaking, he completionorterminationof which has been determinedat the time of engagement of the
employee.^ t . . , - \
WhEie - the'-;mploytit:ht ' bf i piojec'temployees s extended ong af ter thesuppced projecthas been inished, heemployees re removedrom hescopeofproject mployeesndconsideredegularemployees. \
When may a project employeebecomea regularemployee?
1. There s continuousehiring f projectemployeesvenafter he cessation fa projecdor the same asksor natureoftasks:and
2. The tasks performedby the alleged
projectemployeeare vital, necessary
andindisPensable to the usual
business r tradeof the emPloYer.
r PROJECT has reference to a
particularob or undertakinghat may
or may not be within the regular or
usual businessof employer. n either
case, the Project must be distinct,
separate and identifiable from the
main businessof the employerand its
dufation must ber determined or
determinable.
Note: Membersof a work Pool from
which a constructioncompanydraws
its project employees, if considered
emPloYees of the construction
companywhile in the work Pool' are
non-projectemployeesci employees
for an indefiniteperiod. lf they are
employed n a particularproject, he
completion f the projector any phase
thereofwill not mean severanceof E-
E relationship.
UNLESS, he workers n thework Poolare free to leave anY time and offer
theirservices o otheremployers' L'L
Datu & Co., Inc. v. NLRC, GR No'
113162,February9, 1996r'
Note: Project emPloYees are .not
regular emPloYees, their serylces
being needed onlY when thereare
projects o be undertaken.
Requirements: (Policy lnstrudion No' 20
and D.O. No. f 9. Seriesof 1997)
a. Specific project phase thereof stated
specified
As
ale
orwhichare
engagedor that
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LABORRELATIONS
Entitlemento Separation ayGeneralRule: Projectemployees re NOTentitled to separationpay if they are
terminateds a result f thecompletionf theprojector any phase hereof n which heyhavebeenemployed.
Exception: f theprojectsheyareworking nhave not yet been completedwhen theirservicesare terminated; rojectemployeesalsoenjoy ecurity f tenure uring he imitedtime of their employment.De Ocampov.NLRC,GRNo.81077, une6, 1990)
4. SeasonalEmploymentEmploymentarrangementwhere anemployees engagedo work duringaparticular easonon an activity hat isusually ecessaryr desirablen he usua.businessr radeof heemployer.
During off-season,he relationship femployer nd employees not severed;the seasonal employee is merely
considercdon leave of absencewithoutpay.
When are seasonal employeesconsidered s regular mployees?1. When here s reasonableonnection
between the particular activityperformedy he employeen relationto the usual radeor business f theemployer;nd
2. Seasonal orkerswhoare repeatedlyengaged o perform he same tasksfor more than one season. (SeeHacienda Fatima ys. NationatFederation of Sugarcane Workers-Food and GeneralTrade G.R. NO.14944, 8 Jan 2003)
Note: One-year urationon the job ispertinentn decidingwhethera casualemployee asbecomeegular r not,but
it is NOT pertinento a seasonalorprojectemployee. assage f timedoesnot makea seasonalworker egularor
I ,'
:Perffianent(Mercadon pq6,.:cR l/o.79869,September, 1991).
When he business stablishments soldwhich effectively. terminates theemploymentf the seasonal mployees, tthe latterwouldbe entifledo separationpay-
5. Temporary orEmployment
Fixed-Period
projector undertaking hich is psuallynecessaryor desirable n the usuAlbusiness r trade of the employer,he
completionf whichhas beendeterminedat the time of the engagement f theemployee.
A flxed-periodmployeeoesnotbecomea regular employee because hisemployments co-terminus itha specificperiod f time.
Reason for validity of fixed-periodemployment Freedoin of parties tocontracto ongas hestipulationshereofare not contrary o law, morals,goodcustoms,ublic rder ndpublic olicy
.,. ,
Note: lt doesnot necessarilyollow hatwhere he dutiesof the employee onsistof activitiessually ecessaryr desirablein the usualbusinessf the employer,he'parties
are forbiddenrom agreeing n aperiod f time or heperformancef such
activities. here s nothingcontradictorybEtween"a efiniteperiodof employmentand the natureof the employee'suties.(See Pangilinan vs. General MillingCorporation,G.R. No. 149329, 12 July2W4).
However,n the following ases,workersemployedor a fixed-termereconsideredas regular mployees:a. The employees ereallowedo work
beyond he fixed-termwithout thebenefitof a newcontract Viemesvs.NLRC,G.R.No.108405,4 Pr2049;'
b. The employeeswere allowed o workfor more hanoneYearand here s areasonable onnection etween heparticularactivity performedby the
the usual
oli s athethe
usual
lnc.
F#lldszza,1
7, 14
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Ssn ffebs@ottege{.tr
2011CENTRALIZEDAROPERATIONS
the partieswithoutany force,duress, rimproper ressure eingbroughto bearupon he employee nd absent nyother
circumstancesitiating isconsent;r2. lt satisfactorilyppearshat he employerand he employee ealtwitheachother nmoreor less equal ermswith no moraldominancexercisedythe formeror thelatler (BrentSchoo/ .'Zamora,GRNo. L-4U94, February , 1990).
GeneralRule: Fixed-Period mploymentsvalidso long as the criteriaabovementionedarecomplied ith.
Exception:While the SupremeCourt hasupheldhe legality f flxed-term mployment,where rom the circumstancest is apparentthat the periods have been imposed opreclude cquisition f security f tenurebythe empioyee,hey shouldbe struck ownordisregardeds contraryo publicpolicy. SeeManila Water Co. lnc. vs. Pena. G.R. No.158255,8 July 2004; Magsalinvs. NationalArganization of Working Men, G.R. No.
14U92,9 May 2003)
SpecialGroupsof Employees1. OFWs and Seafarers cannot be
considered s regularemployees. heiremployments governed y the contractstireysign every ime heyare rehired ndtheiremployrnents terminated hen hecontractexpires.Their ernploymentsfixed or a cerlain eriod f ime.For a privateschool eacher o acquire
permanentstatus in employment,hefollowing equisitesmust concur: 1) theteacher s a full:time eacher; 2) theteacher must have rendered threeconsecutiveearsof service; nd(3)suchservice must have been satisfactory.(Spouses Alwyn Ong Lim and EvelynLukang'Um Vs, LegazpiHope ChristianSchoo/, t al., G.R. No.172818,March31,2009.)The employmentof househelperss theonlv kind n the LaborCde wherea fixedtein i|t gpnEssly\PRo vtDED FoR.UnderAd. 142 of the LaborCode, heoriginal ontrac-tor domestic ervice hallnot astmore han 2 years, enewableorsuchperiods s .maybe agreeduponbythe partiesand subject o reviewevery3yearswith heend n viewof mprovinghetermsandconditionshereof.Piece-rateworkersmay attainregulaity ofemployment. ayment y the piece s justa methodof compensationnd does not
define he essence f compensation.orpiece ate workerso be regularized:1)
their work must be necessaryor desirat[e
in the usual businessof the employer, 2)
they worked for lhe employer hroughout
the year, their employment notbeing
dependent n a specificprojector season,
and (3) they worked for more than one
year.
ART.281 PROBATIONARY MPLOYMENT
ProbationaryEmPloYmentExists where the emPloYee, upon nls
engagements madeto und;:rgoa trial period
during which the employer determinesnls
fitnesl to qualify or regularemployment ased
on reasonable tandardsmade known to him
at the imeof his engagement.
Note: ln all cases piobationaryemployment,
the employer shall make kncurn to the
employee he standardsunde:'whichhe wil l
quatityas a regularemployeeat the time of his
engagement.Where no standardsare maoe
fn6w-n o the employeeat that time, he should
be*regardeds a regularemployee'
Characteristics of ProbationarY
Employrnent1.
'ltis an employmentor a trialperiod;
2. lt is a temporaryemploymentstatus prlor
to regular mPloYment;3. lt aiises through a contract with the
followingelements:a. ThJemployee must learnand work at
a ParticulartYPef work;
b. Such work calls for a certain
qualificationsi
c. The Probations fixed
d. The employer reserves he power to
terminateduring or at the end of the
trial Period; nd
z-
by
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LABOR ELATIONS
Example:The probationary eriodset forprofessors,nstructorsnd teachers s three(3) consecutiveyears of satisfactoryseNicepursuanto DOLEManual f RegulationsorPrivate chools.
Extension f ProbationThe employer nd employeemay extendbyagreement the probationary period ofemploymenteyond ix(6)months.
Note: By voluntarily greeing o such anextension,he employee aivedany benefitattachingo the completionf the periodf hestill ailed o make hegrade uring heperiod
of extension MariwasaMfg., lnc. v. Hon.Leogardo,GRNo. 74246, anuary26, 1989).
Double or Successive Probation NOTAllowedThe evil sought to be prevented s todiscourage chemingemployersrom usingthe systemof doubleor successiye robationto circumventhe mandateof the law onregularizationnd make t easier or them odismiss heiremployeesHolidaynn Manila .
NIRC,GRNo. 109114, eptember4,1993).
Termination f Probationary mploymentProbationarymployeesre protected y theSECURITYOF TENUREorovision f theConstitrJtion.
'HOWEVER, probationarymployeemaybeterminatedt any ime beforehe expirationftheprobationaryeriodon fwo(2)grounds:1. Justcause; nd2. Failure to meet the
standardsfor
qualificationsor a regular mployment.
Note:Theprobationarymployees entiiledoPROCEDURALDUE PROCESSorior todismissalrom heservice.
The power of the employerto terminateprobationary mployeess suhject to thefollowingimitations:irst, his powermustbeexeros-gdn .accordanaewithr..the, pecificrequirementsof the contrad. Seccind,the
dissatisfactionn the part of the employermustbe realand n good aith,not eigned oas o circumventhe contract r the larrrr.hird,theremusl E nounlaMul iscriminationn hedismissal. Davao ContradorsDevelopmentCooperative (DACODECO) ys. MaritynA. Pasawa,G.R.No. 172174,uty9, 2009)
Llmitations o Terminationof Probation1. The employels power to terminatea
probationarymploymentontractmustbe
exercised n accordancewith the specificrequirementsof the contract;
2. lf a particular time is prescribed, the
terminationmustbe within such ime and f
formal notice is required, hen that formmust be used;
3. The employer's dissafisfactionmust be
real and in good faith, not feignedso as to
circumventhe contractor the law and
4. There must be no unlavtful disciminationin he dismissal.
RegularStatus after ProbaticinargPeriodlf the probationaryemployee is allowed to
work beyond the period of 6 months or the
agreed probationary period, said employeebecomesa regularemployeeby operationof
law"i;l''4r'i
ART.282:TERMINATION Y EMPLOYER
Gurdelines to Determine the Validity of
Termination:1. Gravityof the offense;2. Position occ-upied y the employee,3. Degreeof damage o the emPloYer'
4. Previous nfractionsof the same offense;and5. Lengthof service.Totalityof Infractions DoctrineIt is the totality,not the compartmentalizationof company nfractionshat the employeehad
consistently committed, wttich justifies thepenaltyof dismissal e.9. numberof violations
committedduring the periodof employment).(Manita Eledic Company v. NLRC, GR No.
114129,October24, 1996)
Just Causes1. Serious Misconduct
MISCONDUCThas been defined as the
transgressionof some established and
[,"tffis# #ffr l-J\w
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Sun Gebc@otlegt Aeto
2O1ICENTRALIZEDAROPERATIONS
Examples:a. Sexual arassmentb. FightingWthin ompanyremises
c. Uttering obscene, insulting oroffe.nsiveordsagainst superior
d. Falsificationf ime ecordse. Grossmmorality
Willful Disobediencer InsubordinationRequisitesa. The employee'sssailedonduct as
been wilfful or intentional, hewillfulness eingcharacterizedy a"wrongfuland perverse ttitude";and
b. Theorder iolatedmusthave een:i. Reasonablend awful,ii. Madeknown o the employee;
andiii. ln connection to the duties
which he had been engaged odischarge (Acesite CorPoration,et. al v. NLRC, GR No. 152308,January 26, 2005).
Note: There is no law that comPels an
employee to accept a promotion for thereason hat a promotion s in the natureof
a gift or reward,which a personhas theright o refuse.Hence, he exerciseby theemployee of the right to refuse apromotioncannot be consideredn law asinsubordination, r willful disobedience fa laMul order of the emPloYet(PT&TCorp. v. CA, September 29, 2a0Q.
Gross and HabitualNeglectof Duties
In order to constitutea just cause for theemployee'sdismissil, he neglec{,of utiesMUSTNOT ONLY BE GROSSBUTALSOHAB1TUAL.o Gross nqlect means an absence of
that diligence that an ordinarilYprudent man would use in his ownatfairs (Depaftment of Labor Manual,Sec. 4343.01[27]).
o Habitual .nqlect implies repeatedfailure to perform one'sdutiesover'a
NLRC, GR No. 110388'
SePtember 4' 1995)
Note: The filing of the complaint orillegal dismissal (with a prayer
.forreinSatement)s inconsistentwith the
charge of abandonment Kams lnt'l'
lnc. v. NLRC. GR No' 128U6'
Se1tember28, 1999)'
HOWEVER, the rule has no
application where the complainant
dobs not PraY tor ginstatement and
asks for separationpay instead' (Jo'
et. al v. NLRC, GR No' 121605'
.February2,2000).
4. Fraud or Willful Breach of Trust
Fraud or dolo - consists n the conscious
and intentionalproposition o evade the
normal fulfillment of an obiigation
Commission of fraud bY an emPtoYee
against he employerwill necessarilyesult
* irithe.latter'sostof trustand confidencen
the former.
Requisites or Fraud:
a. Fraud must be committed AGAINST
the employer or his representative;
andb. lN CONNECTION ith he employee's
work (DePartment of Labor Manual'
Sec. 4s53.01[3]).
ExamPles
1. falsificationof time cards2. theftof comPanyProperty3. unauthorizeduse of vehicltil
Willful Breach of Trust - Breach of trust
or confidencemust be willful'A breach s
(ependinguponthe(JGB and'AsSodiateqlnc.v. NLRC,GRNo.10939, arch ,1ee6).
Formsof Nqled of Dutya. Habitualardinessndabsenteeism;b. Abandonment
i. Failure to report for work orabsence ithout alidor ustifiablereason;
ii. Clear intention s sever Er-Eerelationshipeing manifested ysomeovert acts.(Laboret., al. v.
#gh$rbttSFHHtPloYer{*il -:i$ir [-&1*V
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LABORLAW
LABOR ELATIONS
d. Must be genuine, not a mere
afterthought o justify earlier action
taken n bad aith:and
e. The emPloYee involved holds a
Position ftrust andconfidence.
Note: Generally,employersare allowed
wider latitudeof discretion n terminating
the employmentof managerialpersonnel
or those who, while not of similar ranK,
perform functionswhich by their nature
iequire the employer's full trust ?ndconfidence. (Coca-Cola Bottlersv. NLRC'
GR No. 825W, APril25, 1989)
5. Commission of a Crime or Offense
Refers to an offense by the employee' r.:i"'altainstthe prson of his employeror any
immediatememberof his amilyor his duly
authorized representative and thus, the
conviction of a crime invoiving moral
turpitude is not analogous heretoas the
element of relation o his work or to his
employer s lacking.
Note: The CONVICTIONof an employee
in a criminal case is NOT necessary o
warranthis dismissal y hisemployer.
6. Analogous CausesMust be due to the voluntaryand/or wiltful
act or omission of the employee(Nadura
v. Benguet Consolidated, GR No. L-
17780, August 24, 1962).
Examplesa. Violation of company rules and
regulationsb. Drunkennessc. Gross nefficiencyd. lllegallydivertingemployeisproducts
Other Just Causes Recognized under Other
provisions of the Labor Code1. Unionofficerswhoknowingly articipaten
an illegalstrike.
2. Any employee, union officer or mere' ;. ffiembet,yvhgkncningly parti.cipatesn the
commi#ibn of illegalads during' a strike.
3. Strikers who violate orders, prohibitions
and/or injunctions as are issued by the
Secretaryof Laborand Employment r the
NLRC.4. Molation of union s'ecurity clause
stipulated in the CBA pursuant to Art
24.8[eJ.
. Doctrine of IncompatitritityWhere the employeehas donesomething hat
is contrary or incompatible with the faithful
just cause for terminating ls 9mpl.oy.T9nt(ManilaChauffels League . BachrachMotor
Co., 0o.G.159lr.
Due Process to be observed bY the-,
employerin" foifo*ng standards f dueprocess hall
Oe substantially bserved or terminationof
employmentased n ustcauses:
1. Notice TwinNoticeRule) the employer
is requiiedo furnish nemploy-eeho is
to be dismissedwith two P) written
notices efore uch ermination:
a. Pre'Notice a writtennoticeservedon the emPloYeesPecifYing he
ground rgroundsor ermination,nd
liUng to laid emPloYeeeasonable
6pportunityithinwhicho explain is
side;b. Posf-Nofice - a written notice of
terminaiionseryedon tfre employeeindicatinghatupondueconsidcration
of all hecircumstances,rounds ave
heen established to juSifY
-li"terminaiion.whichcomesonly afterthe emPloYees given reasonableperiod rom eceiptof hefirstnotice.to
answerhecharge, eerequirement
below) PePsi-Cola. NLRC'GR No'
909A, February 0' 1992)
2. Hearingor Gonference a hearingor-confere-ncehouldbe held duringwhich
the emPloYeeconcemed, with the
assistance f counsel, f theemployee o
desires, is given the oppot'tunityo
resPond to the charge, Present .fti:evidence r rebut he evidence resented
against him (Lavadorv. "J"'Marketing
Clorparationnd Soyao'GR No' 157757'
June28, 2005).
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Ssn SeDs@ollegefAeb
2011CENIRALIZEDAROPERATIONS
tnc. v. NLRC, GR No. 89876, November 13,
1se2).
Note: In Agabon v. NLRC, GR No. 158693,
Nov. 17, 20M, when dismissal s for just or
authorized cause but due process was not
observed, the dismissal should be upheld.
However, he employershould be held liable
for non-compliance with the procedural
requirements f due process t.e.damages).
The above rulingwas modifiedby JAKA Food
Processing v. Pacot, GR No. 151378, March
28,2005:1. lf basedon a just cause (Art. 282) but the
employer ailed to complywith the noticerequirement,he sanction o be imposed
upon him shouldbe temperedbecause he
dismissalprocesswas, in effect, nitiated
by an act imputaHe o the employee;and
2. lf basedon an authorized ause(Art.283)
but the employer ailed o complywith the
noticerequirement,he sanction hould besfiffer becausethe dismissal process was
initiatedby the employer'sexerciseof his
management rerogative.
The ruling n the JAM case was also modified
in lndustrial Timber Corp., et. al. vs. Ababan,
et. al., GR No. 164518,March 30,2O06.This
case subdivided he dismissal or authorized
causes nto 1) due to lossesand 2) not due to
losses. f the authorized ause hat terminates
employmentarisds rom losses, he penalty o
the employerwho disregardeddue process
may be lighter han f the ai:thorized ause has
no relation o losses.
The Court also mentioned other fad,ors to
ansider tn assessing the penalty to the
employer such as:1. The authorizedcause invoked, whether
retrenchment or cessation of operati.on
due to seriousbusiness osses;The number f employeeso be awarded;The inancialapacity f heemployer,Theemployer'srantof other erminationbenefits; nd
Wtrethefhelew3s a{ona fideattemS o
compli'wlth' the' noticerequirement sopposedo givingno noticeat all.
Prevqntive uspensionAn employeemaybe placed nderpreventlvesuspension, f his continuedemploymentposesa seriousand imminenthreat o life orpropertyof the employer r his Co-workers.tshall be for a ma><imumeriodof 30 dqys,during which periodthe employeeplacedunderpreventive uspensions not entitled o
anywages.
1. However,when there is a companypolicy-
or a CBA provisionmandatingpaymentof
wages during said 3O-days preventive
sus.-pension,uch paymentshallbe F.d?,2. Preventive uspensionshould not last for
more than thirty (30) days' The employee
shouldbe mad'e o resume his work after
30 daYs.3. However, the same can be extended
orovided the emPloYer PaYS the
suspendedemployeehis wagesand other
benefits.8:
Note: After he lapseof the 3Gday period' he
employer is required to reinstate the
"t'pfoy"".lf the employerdecides o extend
the' period of preventive suspensions for
iustiniOte easons,he is obligatdd o pay the
"r"g""and other benefits due to the
suspendedworker.
Offers to reinstate the worker made after the
nfingof a complaint or illegaldism.issal ould
notva
t Oatean otherwisearbitraryd sm ssal'
Requirements or Termination1. 'substantive Due Process-The employer
shall not terminate the services of an
employeeexcept or a just calse (Art 282)
or when authorizedby law (Arts' 283 and
284).When there s no showingof a clear'
validand legalcause or the termination f
employment,he law considers he case a
matterof illegaldismissal'
2. ProceduralDue Process
a. For terminationbased on just causes
underArt. 282'
Procedural
due
Process means comPliancewith the
following:i. A written notice
served on the
specifYing the
(first notice)emPloYee
ground for
2.3.4.
5. ofso, t o
his
theduethe
havejustrfy
his
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San Felu @otleged {^ffi
2011CENTRALIZEDAROPERATIONS
precluded from adopting a new policy
conducive to a more economical and
effectivemanagement,and the law does
not require that the employershould besuffering financial losses before he can
terminate he servicesof the employeeon
the ground of redundancY (Dole
Philippines,nc., et. alv. NLRC,et. al).
3. Retrenchment(Downsizing)a. reductionof personnelusuallydue to
poor financial returns so as to cutdown on costs of operationsn termsof salaries and. wages to Prevent
bankruptcyof the comPanY;b. linked with losses, it is a cost-cutting
measuremade immediately ecessaryby business reductionor reverses.. +:.,:;..i...*:
Note: The phrase "TO PREVENTLOSSES' means that retrenchmentortermination from the service of sorneemployees s authorized o be undertakenby the employer sometime before thelosses anticipatedare actuallysustained
orrealized.Evidently,actual osses need
not set in prior to retrenchment Caiucom
Vllv. TPI PhilippinesCementCorporation,et. al, GR No. 149@0, February 11.
2005).
There is NO need for investigation n('
hearing before an employee may bedismissed due to retrenchment or
redundancy.The employeecan however, .controvert the grounds for termination
before'the DOLE.
General Standards of Retrenchment(srNS)1. The lossesexpected re substantial
and notmerelY eminimisn extent;2. Theapprehendedubstantialossare
reasonablY lmminent, can beperceivedbjectivelynd ngood aithby heemPloYer;
3. Retrenchmentmust.lleggFsary.o pf€vent
;ir.,",,tos3eCfbnO
be reasonablythe expected
4. Expected or actual losses must beprbved by'gufficient and convincingevidence (Central Azucarrera dela
Carlota v. NLRC, GR No. 10@92,December29, 1995).
Requirementsfor Valid Retrenchment1. Retrenchment is REASONABLY
NECESSARY and likely to Preventbusiness losses, which, if already
. incurred, are not merelv ce minimis,but substantial, serious, ..:tual and
real, or if onlY expected' .ar :
reasonablY imminent as Percelveoobjectivelyand in good faith by the
employer;2. Th; emPloYer served WRITTEN
NOTICEboth o the emPloYees nd to
the DOLE at Ieastone (1) month prior
the intendeddate of retrenchment;
3. The employer pays the retrenched
emPloYees SEPARATION PAY
equivalent o one month PaY or at
least one-half month PaY for every
year of service; +4. ine emPloYer exercises its
prerogativeo retrenchemployees N-
booD FAITHfor the advancement f
its interest and not to defeat or
circumvent the employees' right to
securitY f tenure;and
5. The emPloYer used FAIR'AND
REASONABLE CRITERIA in
ascertainingwho would be dismissed
and who would be retainedamorg the
employees,such as status, efflciency,
seniofiiY, PhYsical itness, age and
financialhardship or certainworkers
(Asian Ncohol CorP-v. NLRC, GR No'1311O8March25, 1999),
Note: The employerbears the burden to
prove such ground with clear and
satisfactory evidence, failing which.-.the
dismissalon such ground is unjustified'(Bio Quest Marketing lnc and/or Jose L'
Co tzs.Edmund ReY, G.R' No' 181503'
SePtembei 18,2009-)
"Last ln, First Out" Rule (LIFO)It applies o terminationof employmentn the
same ineof work.What is contemplatedn the
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LABORLAW
LABORRELATIONS
Hobson's Choice - Meansno choiceat all; achoice between acceptingwhat is offeredorhavingnothing at all. For example, n Asufrin,
Jr. vs. San Miguel Corporation, (G.R. No.156658, 10 March 2004), the employeesweregiventhe choiceeither o voluntarily etire,beretrenched with benefits or be dismissedwithoutreceiving ny benefitat all.
Retrenchmentvs. Redund
4. Glosure or Cessation of Operation ofthe Establishmentor Undertaking
Regufsrfesa. The decision to close or cease
operationsshould bg made in good
faith.b. The purpose should not be to
circumvent the provision of Title IBook Six of the Labor Code (Rules onTermination of Employment
c. There is no other option available othe employerexcept o close or ceaseoperations.
d. The notice requirementunder Art. 283shouldbe compliedwith.Separation ay under he law (when
notdue.to erious usinessosses) rcompanypolicyorrCBA or similarcontract,when appropriate ust'bepaid o theaffected mployees.
Rules;a. Where closure is due to serious
businessosses, oseparationay srequired; NorthDavaoMining Corp.v. NLRC,GR No. 112546, arch13,1996)
b. Whereclosures NOTdue o seriousbusinessosses.workersare entifledto separation ay;
c. Where closurewas due to an act ofthe government,he workers are notentitled to separation pay (National
Federation of Labor v. NLRC, GR No.127718,March2,200O).
Note: Article 283 includes both thecomplete cessation of all businessoperation of an establishmentand thecessation of only part of a company'sbusiness (Cheniver Deco Pint TechnicsCorp. v. NLRC, GR No. 122876,February17,2000). &r
5. Bisease
Requisites:a. The employee is suffering from a
orseaseHis continued employment is eitherprohibited by law, prejudicial o hishealthor prejudicialo the healthof hisco-employees.There s a certification y a competentpublichealthauthority hat the disease
is of suchnatureor at such stage hat itcannot be cured within a periodof sixmonths even with proper medisaltreatment.Notice of termination based on thisground should be served to theemployee concerned and the
b.
, : : r i l r j j , i r ,
Employerreducds' henumberof its personnelin order to preventfurther losses in hisbusiness perations.
\Nhen for purposes ofeconomy a company
decides to reorganize tsdeparhrenE by imposingon employees of onedepartment the dutiesperformed by theemployees of the otherdeparfnent, thusrendering unnecessarythe job of the latter, theservices of theemployees whosefunctions are now being
performedby the former,may be validlyterminated on the groundof REDUNDANCY.
Does notrequireproof ofactual orirnminentloss
Does notrequireproof ofacfual orimminentloss
Requiresproof ofactual orimminentloss
Does notreqlireproof ofactual orimminentloss
must be
refers
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Ssn BeDe@oltegef Leb
2011CENTRALIZEDAROPERATIONS
The requirementor a medical ceftificateunderarticle2A of the aborcodecannotbe dispensedwifh; otherwise,t wouldsanction the unilateral and arbitrarydeterminationy the employerof thegravity r extent f theemployee'sllnessand thus defeat he publicpolicy n theprotection f labor (Sy, et. al v. CA, GRNo.142293,ebruary7,2003).
Note:Discriminationn any orm rompre-employmento post-employment,ncludinghiring, romotionr assignment,ased nthe actual,perceived r suspectedHIV
status of an individual s prohibited.Terminationromworkon he solebasis factual,perceivedr suspected IVstatusis deemedunlavvfulSec.35, R.A. 8504,H|V/AIDSAW.
OtherAuthorizedCauses:1. Total and permanent disability of
employee;2. Validapplicationf union ecurity lause;3. Expiration of period in term of
employment;4. Completion of project in projectemployment;
5. Failurenprobation;6. Relocationf businesso a distant lace;7. Defiance f return-to-workrder;8. Commissionf llegal cts na strike;9. Violation foontractualommitment;nd10.Retirement
Totalityof InfractionsDoctrine
Where he employee as been ound o haverepeatedlyncurred everalsuspensions rwarningson accountof violations f companyrulesand regulations,he law warrantsheirdismissals t is akin o "habitualelinquency'(Villeno . NLRC,251 SCRA 94).
ProceduralStepsRequired1. Written notice o DOLE30 days prior to
the ntended ateof ermination;
Purpose:to enable t to ascertainhe
. ,'terdiotthbCatrse,OflerminatiOrf,+*r1',,r;-' i ' -
2. Writtennoticeo employee oncerned 0days prior to the' intended date oftermination;
Note:When erminationf employments'broughtby the failure of an employeeomeet the standardsof the employer ncaseof probationary mploymen ,t shallbe suffioienthata writtennotice s served
the employeewithina reasonableimefrom heeffective ateof termination.
When erminations brought boutby he
completionof the contract or Phasthereof, opriornotices required.
3. PaymentfseParationaY.
Ruleson t o f
Equivalento one monthPaYor at leastone-halfmonthPaYfor every Year of seryice,whichevers higher, frrtionof six 6)monthssconsideredas one 1)whole ear
Equivalent o at least one
month PaYor at least one
monthpay for everyYear of
service,whichevbrs higher'a
ftactionof six (6) months s
considereds one (1) wholeyeal
Equivalento one monthPaYor at leastone-halfmonthPaYfor every Year of service,
whichevers higher,a fractionof six (6)monthss consideredas one 1)whole ear..lf due to severe buslnesslosses or financialreverses'
no separationPaYdue(North
Dava Mining& DeveloPmentCoeoration v. NLRC, 254
scw721).
Equivalent o at least one-
m6nthsalaryor to 7z month
salary for every Yea( of
sewice,whichevbrs greater'a fractionof at least6 months
shall be considefed ne (1)
rvhole ear
*e$ sffi#e{}$Lt-#$s {}*i LAw
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LABORLAW
LABORRELATIONS
Dismissal or Just Causevs. Terminationfor AuthorizedCause
The employee isdismissed for causeswhich are attributabletohis faultor culpability.
The employee isdismissed' for causesindependentof his fauftor culpability.
A s a r u l e , a d i s m i s s e demployees not entifledto separation ay.
An employeeerminatedfor authorized ause isentitled to separationpay.
Beforean employee sdismissedor ustcause.
he mustbe givenampleopportunityo be heardand o defend imself; :
Employermust givetheemployee to beterminated a writtennoticeat least 1 monthbefore he intendeC ayof ermination.
ART.28$: ERMINATIONYEMPLOYEE1. Without Just Cause - Oy servinga
WRITTENNOTTCEn the'emptoyei tleastonemonthn advance.e lmftoyeruponwhom no suchnotiie was servec
may hold the employee iable fordamages.
2. With Just Cause An employeemayputan enctto his employmentWITHbUTSERVTNGNy NOTiCE n the emptoveri9l .ny of the foilowing;ust cJusli:(sucA)a. gerious nsirltby the employer r his
representative n the honor andperson f theemployee;
b. Inhumanand unbearable reatmentaccorded the employee by theemployerr his epresentative;
c. Qommissionf a CrimeOr Offense vthe emplciyeror his representativ6againsthe person f theemployeeranyof the immediate embers f hisfamily; nd
d. Other auses nalogouso anyof theforegoing.
Dismissal Terminationfemploymentythe,9mPoyer., , ,. : . . , : \
'
Resignation Terminationf employmentytheemployee.
VoluntaryResignationueflnedas the actof an employee, ho iridshimselfn a situationnwhicAri Uefi"vesnaipersonaleasonsannot esacrificedniavoiof theexigencyf theservice;
hus,he frasnoolnerchoicebut to disassociateimselfromhieemploymentAtfaro . CA,GR tto. iioieii,Augusl28,Z0O1).
Theemployeemustservea writtennotice nthe employer t least one (1) month nadvance.
Once accepted,cannot be withdrawnwithoutthe consent of the employer (tnteftrodMaritime,'lnc.v.,VLRC, GR No. 810gT.June1e ,1991) .
An employee who voluntaily resigns is notentitled to separationpay unless stipulated inan emptoyment ontractor CBA or sanctionedby established employer pffictice or policy(tbid.).
Note: lf resignations not voluntary, he samecan be deemed o be a constructive ismissal.
Voluntary esignationand illegaldismissatareadversely opposed modes of terminatingemployment elations, n that the presenceofone precfudes hat of the other (Alfaro v. CA,ibid).
lntention to Resign
An employee may be deemed to haveresigned from his position, and such'resignation"
may be accepted and madeeffective by the management,although threemployeedid not mention the word .resign,'
and/ or 'resignation".This happened to the
chlef investigative eporter of the philippineStar.He sent a "Memorandumor File'to theChairman{EO expressing his frustrationsand disappointmentsn the office. (philippinesToday nc., et al v.
NLRC,G.R. No. 112965,January 30, 1997)
Constructive DismissalDefined as quitting because continuedemployment is rendered impossible,
if, o riso
itto
June
to hisbeyond
Taxi
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5en Feba@ollegef {.rtu
2O1ICENTRALIZEDAROPERATIONS
lnc. v. Catinoy, GR No. 143204, June 26,2001.)
Temporary Lay-OffThere is no specific provisionof law whichtreats of a telnporary retrenchment or lay-off'and provides or the requisites n effecting t or
a period of duration therefore. Theseemployees cannot however be forever"temporarily"aid-off.
To remedy his situation,Article286 may be
applied but only by analogy to set a specificperiod hat employeesmay remain emporarilv
laid-offor in a floating status(while businesr'
operationsare suspended) or only a periodoisix months.
ART. 286: WHEN EMPLOYMENT NOT
DEEMEDTERMINATED
When Employment NOTTerminated:1. Bona ide suspensionof the operationof a
busines or undertaking or a periodnoiexceeding six (6) months;or
2. Fulfillmentby the employeeof a militaryor
civic duty.
Floating StatusThe "floatingstatus" of an employee shouldlast only for a legallyprescribed eriodof time.When the floatingstatus of an employee asfsfor more than , six months, he may beconsidered to have been constructivdydismlssed from service. Thus, he is entitled tothe corresponding benefits for separation(Agro Commercial Secuity Services Agency,
lnc. v. NLRC, GR Nos. 8282924, July 311989).
Notice RequiredSerious business losses do not excuse theemployer from complyingwith the clearance or-report required under Arfible 283 of the LaborCode and its . imptementing rules beforeterminating he employmentof its workers:' nthe absence of justifying circumstances, thefailure of the employer to observe thepocedural-i-eqqlrgrnents'setout.und6:'Mide
284. aints heiractuations ithbhd aith. f thelay-off was temporary but then seriousbusiness ossespreventedhe reinstatementof respondents,he employer hould havecompliedwith the' requirementsof writtennotice.
TITLE TWO. RETIREMENT FROM THE
SERVICE
ART.287:RETIREMENT
Concept of RetirementIt is the resultof a bilateralact of the parties,a
voluntary agreement between the employer
and the employeeswhereby the latter, after
reaching a certain age, agrees and/or
consenti to sever his employmentwith the
former (Brion v. SPUM of the Seventh Day
AdventistChurch, GR No.o,135136,May 19,
leee).
Goverage l Art.287Applieso all employeesn the private ector'
regiardtessf their positiondesignationtatus
an? irrespective f the methodby which heir
wages are paid, except those specifically
exempted.
HOWEVER. tt.287doesnotaPPlYto:
1. Employees f the NationalGovernment,
anit its political subdivisions,ncluding-
GOCC's if they are coveredby Civil
ServiceLaws;2. Employeesf retail, ervice ndagricultural
esiabiishments r operations egularly
employtngotmorehan10employees'
Kindsof Retirement chemes:1. compulsoryndcontributoryn nature;.,2.' one set up by agreement etween he
employer nd the employeesn CBA. r
other-agreements
between hem (other
applicablemPtoYmentontract);
3: ohe that is voluntarilygiven by the
employer, xpressly s in an 9nl9.unc*company olicy r impliedlys n failure-to
contest the emPloYee's claim for
, GR NO,
ASelF$'#ffirs
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5sn Sels @ollegeof Affi
2011 CENTRALIZEDAROPERATIONS
TITLETWO.PRESCRIPTION F
OFFENSES ND CLAIMS
ART.291:MONEYCLAIMS
Periods of PrescriPtion
Note: The period of prescriptionmentioned
under Article 292 of the Labor Code refers to
and s LIMITED O MONEYCLAIMS, l lo ther
cases of injury to rights of a working man
being governed by the Civil Code. Hence,
REINSTATEMENT rescribesn 4 years.
Venue: The Regional Arbitration Branchwhere the workplace s located(NLRC Rules
of Procedure).
3 years from the accrualofthecausesof action
Dearfrom theaccrual f the
4 years from the accrual ofthe cause of rction
s&f* ffiH#t\*{}t;**f {sg {}tr l*,,'l"lsd
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APPEALDecisions f the NLRCmay be elevated torREVIEWo the CourtofAppealsby a Petition orCertiorariunderRule65ofthe 1997 Rulesof Courtwithin 0 days romnoticeof judgment, order orresolution ought to beassailedAsamended)
1. nttirpretationnd mplementationf CBAprovisions;nd
2. lnterpretationndenforcementfcompany ersonnelolicies.
Note:Giievancemachinerys resortedo for purposes f settlement. nresoMedrievances
arebrough toheVoluntary rbitrator.
hdo
I
ffi -?\"derpretationr mplementatidhf he CBA;
2. Thosearisingrom he interpretationr enforcementf company ersonnel olicies;
a n d . .s. upon agreementf the parties, thor abordisputesncluding LP and bargaining
deadlocks.
nfoteil:nfotherdisputes" nderArt. 262nay includeerminationisputes, rovidedhat
the acireementetweenhe parties tates n unequivocalanguagehat hey conform o
the Sirbmissionf termination isputesand ULP to voluntaryarbitration. his is so
becauseerminationisputes regenerally ithin he-exclusivendoriginalurisdictionfLabor$rbitersyexpress rovisionf aw Vlvero .CA, 344SCRA 68' 2000)'
tffi3. v'ft4. Err
the5. De
jurisd;tS&it [*tr;f discretisa; "e-b&ffi:'
w
ffitrilffi{ffi
ffi:ffiffi::ffiffi
wray be€VIEW tof Appealsofthe 1997f within15tice of therent, finalution or of
the motionfial or
t .
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1. Inter-uniondispttre;2. Intra-unionisptute;nd3. Other elatedabor elations isputes.
NOTE:E.O. 251 OF 1987removed rom the jurisdiction f the BLR "all" labor-managementdbputes.heeffect f E.O.251 s o transfer.tohe NCMB he mediation,conciliation.ndarbitrationunctions f he BLR.NOTE:However,he partiesmay by agreement,ettle heir differences y submittingtheircase o aVoluntary rbilratornstead f akinghe case o the BLR.Petitionsor c{lrcellation f union egistrationmaybe filedwith the RegionalOfficeordirectly ith he BLR,
Directorare appealableothe Secretary of Labor
5 days from receipl
Casesnvolvingecovery f wagesand othermonetarylaimsandbenefits,ncludingegalinterest rovidedfiat he claimb presented y anemployee r person mployedn domesticor householdervice, r househelper,heclaim risesiomEr-Eeelations,he'claimantoesnot seekreinstaterqentnd he aggregatemoney laimof each employee r househelperdoesnotexceed ,5,000.
-NOTE:The urisdictionalimitationmposed y Art. 129 on the visitorial nd enforcementpowersof he Reglonal irector nderArt. 128[b]of the LC has been epealed y R. A. No.7730. notherwords, heP 5,000 imit n Art.129doesnot apply o the exercise f power
underArt. 128[b] 6uicov. Sec. f Labor,GR No. 131750,November6' 1998)'
ln oetitions for
cancellation of unionregistration, if filed with
the Regional Office, theappeal b with the BLR
Director whose decisionshall be final andexeclrtory.lf the oetition forcancellation is fileddirectly with the BLR, theappeal b with theSecretary of Labor whosedecisionshall be final and
executor
Pima : facie evidence ofabuseof discretion:lf the decision, order orawarowas
%tlrbtsti'iiA*iihel
orand
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Power o inspecqemployer'sremises nd recordb,ssue
EXCLUSTVErui,OnrCuar-lf there existsa la6or dispute ausingor likely o causea strikeor lockout n
indispensableo thqptional interest7' . ' , .
THE SECRETARYiOF ABoR MAY:assumeur:isdiction:dndecidet; orcertify he same o theNLRC orcompulsoryrbitration.
: i
APELLATE :Cancellationf regislrationf ederationr National nionby he BLR;Denial f applicatio-n-ofegistrationf ederation r national nionby he BLR;Dec'rsionf BLR n nter/lntranion ispute;ndDecision f Me&Arbitern Petitionor Certificationlection.
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SOCIALEGISLATION
DECLARATIONFPOLICYTo establish,evelop, romote nd perfectsoundand viable ax-exemptocialsecurityservicesuitableo the needsof the peoplethroughouthePhilippineshich hallpromotesocial justice and provide meaningfulprotectiono members nd heirbenefiiiariesagainst he hazardsof disability, ickness,maternity, old age, death, and othercontingenciesesultingn loss of incomeorfinancial urden. owardshis end. he State
shall endeavor o extend social securityprotectionoworkers nd heirbeneficiaries.
DEFINITIONFTERMS
Employer Any person, aturalor juridical,domesticor foreign,who carrieson in thePhilippines, ny trade, business, ndustry,undertakingr activity f any kind and usesthe services f anotherpersonwho is underhisorders s regardshe employmentxcept
the Government nd any of its politicalsubdiMsions,ranchesor instrumentalities.includingorporatioiswnedor controlled vtheGovernment
Employee - Any person who performsseryicesor an employern whicheitherorbothmental ndphlsicalefforts re usedandwho receives ompensationor suchservices.where there is an employer-employeerelationship:Provided,That a self-employed
person hallbe bothemployee nd employerat thesameime.
Self€mployed - Any personwhose ncomeis notderivedromemployment;hallbe theemployerndemployeet hesame ime.
i j . . , ' . . . r - ' :' \ .
DependentsSCP)1. The legal Spouse entitledby law to
receive upportrom hemember;
2. The legitimate, egitimatedor legallyadoptedand illegitimateChild who isunmarried,'notainfullymployedndhasnot reached 1 years.of ge or il 21 yearsof age,he is congenitally4ncapacitatedrwhilestill a minorhas beenpermanentlyincapacitated nd incapableof self-support, hysicallyndmentally; nd
3 The larent who is receiving egular'' supportrom he member.
Compensation All actual emunerationoremployment,ncluding he mandated ost-of-livingallowance,s well as the cashvalle ofany remunerationaid n any mediumotherthancashexcepthatpartof the remunerationin *cess of the maximum alarycredit asorovided nderSec.78.
Employment Any serviceperformed y anemployeeor his employer, xcept^ExcludedEmploymentnderSec.8(J);(CAG'T)
. Employmenturelygasual nd not or hepurpose f occupation r business f the
connectionemployer,
. Serviceswithan
Philippir$dlfi Skitljt
EXE€UNVECOMMIITEE:FTFKIEL OSHUAVTLLENA verall chairperson,M|NISTIR MotSESDU chairperson or academks, DJoANVTE oMARE JUNASAchakperson for hoter operations, MARIEMTCAELA IA ANA vice.chairperson for operations, MTKHATL AVERICK UMACDER ke.<ftairperrcn or secretatia JACKIE ou LAMUGvke-chairpersonor finince, otRnn jrnru ruAZoN
"t*J"i*"*ror eap, tRsseN
RALPH EE ice<hairpenon or logistks
SUB'ECTCOIIIIITTEE l'ARotDcFRlSItANTALLEDOubjectchair,AYLA'HERAZADEALENDAB ssistanrsubjectchair,tNKyvEloso edp, NEoV/rLERtoaborstandard'MARKLE5TERTAMoNDoNG|aborre|ations.DoNNAFRANCE5YtADEsociili|egishtion
MEMBERS:
lnonl {artn flUa,KarloDalogo, VanessaGuinto,KayeCohen Lamhrino, arlonPambid, oseCarlosTones,Ramayana aidamen, ose
AngeloDavH,KamilleDeanne agasca, aynanLarosa
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Sen 0eXo6otlegeof Lnt
2011CENTRALIZEDAROPERATIONS
Beneficiaries (SC+D) - The dependent
$pouse until he or she remarries, thedependent legitimate, legitimated or legally
adoptedand illegitimate hildren who shall bethe PRIMARY benefrciaiesof the member:o Provided that the dependent illegitimate
children shall be entitled o 50% of the
share of the legifimate, legitimated orlegallyadoptedcfrildren;
c Providd, furtts, in the absence of the
dependent egitimate, egitimated hildren
of the member, his/her dePendenlillegitimatechildren shall be entitled to100% of the benefits;
t In their absenc*, the dependent parentswho shall be the secondary benefrciaries,and
t ln the absence of all of the foregoing,
any other person Pesignated bY the
covered employee as secondarybeneficiary.
Contingency The retirement, death,disability, injury or sictness and maternity ofthe member.
COVERAGEA. Compulsory (Sec. 9) (ADS)
1. All employeesnot over 60 Yeas ofage and heir employers, nd
2. pomestichelperswith monthly ncomeof not ess han P1,000a month.
3. Coverage in the SSS shall also becompulsory upon such $elf-employedpersonsas may be determined by theCommission,ncludingbut no ltlnitedto the following: Sec.9-A): (P'ffF)
a. All self-emPoyed flrofessionals;b. lartners and singleproprietors;c. {ctors and ac{resses, directors,
scriptwriters and newscorrespondents who do not fallwithin the definition of the termemployee in Secfion 8[dl of this
. Act;d. Professional Athletes, coaches,
trainers,and ockeys;ande. lndividuatFarmersand fishermen.
, ", . , ao : . . .i { , J r i t i . t 4 : { . r i , ' t : l} * , . r : . :
. - i . . T1 ,
Limitations:EECEO)1. Any benefit garned by the employees
underprivatebenefit$ans existingat thetime of the approvat f the Actshallnotbediscontinued, reduced or othenriseimpaired;
2. Privateplans which are gxistingand inforceat the time of compulsory bverageshall'be integrated ith the plan of theSSS n sucha way where he employer'scontributiono his private plan is more
thanthat required f him in this Act, he
shall pay to the SSS only the contribution
requiredof him and he shall continuehis
contributiono such privateplan less his
contribution to the SSS so that theemployeis total contributiono his benefit
olan and to the SQSshall be the same as
his csntribution o his privatebenefitplan
beford he compulsory overage'
Any ghanges,adjustments,modifications'
eliminations or improvements in the
benefitsof the remainingprivateplan after
the integration shall be subject to
agreementsbetweenlheemployersand
the emPloYeesoncernbd; nd
The privite benefit dan which the
employershall continue or his employees
shall remain under the gmPloYer's
managementand control unlesg here is
an existingagreemento the contrary'
Nothing n tnis nA shallbe construedas a
limitationon the right of employersand
employeeb o agree on and adopt benefits
whicn are gver and above hose provided
under his Act.
Vofuntary (SASS)
1. Spoubes who devote full time toilanaging the householdand famitY
atfairs (Sec. 9(b));
2. Filipinos employed f,broad recruited
by foreign-based emPloYers(Sec' 9
(c));3. FJrsons leparated from employment
to maintain his right to full benefits
(Sec. 11);arrd
4. $elf-emPloYed, who realizes no
income or a certainmonth (Sec' 11-
A).
By Agreement (Sec. I fi] t4ilAhy loreign government, international
B.
organization, or their wholly-ovned
instrumentalitY workers n the
Ph
Effects(sec.11)
143
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LABORLAW
SOCIAL EGISLATION
Effects of tnterruption of Business orProfessional IncIndividual
Dme of Self_Employed
1. He shail nol.,
b: required to pay^ contributionsor that month-
r
2. HOWEVER,he may be allowed tocontinue paying contiibutionsuno"i tnu
:1"rutes applicabte to
" "upir"t"O coveredemployeemember.
J. rr,toretroactive payment of contributionsshal bearowed inernan""-#Jrii"onder ec.22_A
BENEFITSA.
fr-tonthtypension (S€r-. 2)
.yo1t JVensionhail e tl HrcHESr rthe follo,rring:1. p
.300 plus 20%o f averagemonthtysalary credit ptus zzo o-i ;;;;"monthlysalarycredit or each ;;;;;;year of servi
. ORce In excessof 10 years;
Z._40% of monthly alarycredit;OR3. p1,ooo,proiiaea hattG'inlnir,r"
pensionhall nnocaseo" p",o ol"naggregatemount f ess.than0
a.ro,' ,"*uH"tl,i* ., reast oyears credited service, theminimumensionfraffOe-pfZdi;and
b. For memberswith at least 20years credited service--
tieminimumensionnaffOe
-pZ,aOOl
A-1. Dependent's ension (Sec.12_Al1. Equivatento 1o"/" i ;;n-ryl6n"ion^ 9r
p 250,whichevershigheri2. payable
on account"'oi death.permanent,total \is"o,1titv""1?retirement no
3. payable to each dependentchildconceived nor beforen" o"t" oiihJcontingencybut. not"*;;;i"g
.';;
be..ginningith.. he yorng""i'""n;
without substitution;witn plr"fur"ncon legitimatehildren
B-1. RetirementBenefits Sex-.12_B)
1. A memberwno. ai-Jaiaa]t
-rJast
rzomonthty contributions;ril-i;' fi;
seme$erof retirement hall be3 ti "0 o monthtyensions ong sne ttves,provided hat.a. He has reached the age of
60years and is already separatedfrom employmentor nas ceasedto be self--employed;r
b. He has reached the age of 65years.
Note: Member has the option toreceivehis 1n 1g monthtypensionsiilump sum at a. preferentialrate ofInrerestas determined,by he SSS.
A coveredmemberwho is sixty (60)years old but was not abje' to
,.3n]r Pulg at teast 120 montniy,"eontributionprior o the semester fhisretirementhall tillbe entifledo;lump. um benefitequal o the totalpT1gulo1tspaidby himand on his,Tl"'t PROV|DED, e is separat;rroT.
.employment and is notcontinul4g ayment f contributionsotheSSSon hisown.
2.
?
Em,ployee'sbligation o contribute easesat the end of the monthof separation,But said
,employee hall be'creditedWtnalt contributionspaid on his OefrafianJentitled to benefits
according to theprovisionsof thisAct.
ll^e_1aV,.owevei, continue o pay the total
contributionso maintainnis'rijnt to-ilribenefit
4.
Upon Death of Retired Member (Sec.12-B[Dil1.
fig nlmaV beneficiariess of thedateof hisretirement haltbe entitieJ
^ to receivehemonthly ension;nJ--
2. lf he hasno primary eneficiaiies;ndhedies60 monthsiom hestartof ni imonthlY pension, secondarvoenettciarieshall be entifled o atumpsum benefit
equivalento 1netotalmonthly ensionsorrespondinoro the balance of the
'$_yea;
qy3l"nl""d. period, exctuding'theqependents'ension.
is less
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.5sn SeUe otlegeof lb
2011CENTRALIZEDAROPERATIONS
Death or of PermanentTotal DisabilityPensionerr His primary eneficiarieshallbe entitled
to the monthty ension;r. lf he hasno primary eneficiariesnd he
Cieswithin60 monthsrom he startof his
monthly pension, his secondarYbeneficiarieshall be entitledo a lumpsum benefit quivalento the otalmonthlypensions orrespondingo the balance fthe S-yearguaranteed eriodexcludingthedependents'ension.
The Following are Deemed PermanentTotal Disabilities: ELPIS)1. Completeossof sightof bothgyes;2. Lossof two imbsat or above he ankleor
wrists;3. Permanent complete paralysis of two
limbs;4. Brainnjury esultingo incurablembecility
or [nsanity; nd5. Suchcasesas determined nd approved
by he$SS.
C. FunerafBenetits Sec.1 B)A funeralgrantequivalento P 12,000shall b6 paid n cashor in .kind o help
itil''defray'the-cod f uheril expenses.
D. Sickness Benefits Sec.14)A dailysickness enefitequivalento 90o/oof his averagedaitysalarycreditshall bepaid by his employer r by the SSS, ifunemployedr self-emploYed.
Requlrements:1. A membermusthavePaidat least3
monthly contributionsn the 12'monthperiod mrnediatelyrecedingthe semester f sici-;nesar injury
2. Confinedor more han hreedays n a
hosPitat or elsewhere with the
aPProval fthe SSS; and
3. Att'sict<eavesof absencewith full payto the creditof the employeememDer
shallhavebeenexhausted'
Note: Sick leavesof absencemust be 3
daYsor more.
Conditions:1. ln no case shall the daily sickness
benefitbe paid lo4gerthan 120 days
in 1 calendarYear;
2. Nor shall any unusedportion of the
120 daYs of sickness benefit be
carried bnrarO and added to the total
number of comPensable daYs':=r'
allowablen the subsequentYear;
3. The dailysicknessbenefitshallnot be
Paid for more than 240 daYs or''
accountof the same confinement; nd
4. The employeemembershall notify.his
employeror tfre SSS if unemployed r
.seti"emptoyea,. f the fac-t of his
sicknesi 6r injury within 5 calendar
days after the start of his confinement'
Note: The following are exceptions o the
requirementof notifl ation:
. Confinements in the hospital;and
r Becamesick or was injuredwhile working
or within he premisesof the emptoyer'
E. MaGrnity Leave Benefits {as amehded
bYR.A.73221CLvereO emale member is entitled to--a
J"iiV m"t"rn,ty benefit equivalent,to1 00o/oof her averagedaily salary credtt tor.ou
daYs or 78 daYs in case of c?esarlan
delivery.
maternitY
reclvery
L45
equalto the monthlY
Pensiontimes the number of monthlyconfribrltbns aid to SSS or '12
times the monthlY Pension,
Requirements:
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LABORLAW
SOCIAL EGISLATION,
of sickness benefits for the samecompensable eriodof 60 days or thesame childbirth, abortion, ormiscarriage,
or 78 days in case ofcaesarian elivery;4. That the maternitybenefitsprovided
under this Sectionshall be paid onlyfor the first 4 deliveries ormiscarriages.
5. That the SSS shall immediatelyreimburse he employer of 100o/o fthe amount of maternity benefitsadvanced to the employee by theemployerupon receiptof satisfactory
proof of such payment and legalitythereof;and6. lf an employeeshould give birth or
suffer abortionor miscarriagewithoutthe required ontributions aving beenremited for her by her employer o theSSS, or without he latterhavingbeenprevionslynotified by the employer ofthe time of the pregnancy, theemployer shall pay to the SSSdamages equivalent to the benefits,
which said employeewould otherwisehave been entitled o, and the SSSshall n turn pay such amount o theemptoyee oncerned.
Non-Transferability of Benefits (Sec. i5)General Rule: The SSS shall prompflypaythe benefits provided to persons Entifledthereto in accordancewith this Act.
'Restrictions:
o The SSS shallpay he retirement enefitsonthe day of contingencyo qualifiedmemberswho have submitted the necessaryDocumentsat least6 monthsbefore.
r The beneficiarywho is a national of aForeign Country which does not extendbenefrts o a Filipinobeneficiary esiding nthe Philippines, r which is not recognizedby the Philippines, hatt not be entifled toreceiveanybenefitunder his Act.
o Where the Eesf lnterestof the SSS will be, . served, -the Commission mav direct
paymentS withoui regard- o nati6nalty orcountryof residence.
. lf the recipient is a Minor or incapable ofadministering his own affairs, theCommissionshall appointa representative.Such appointmentshall not be necessary incase the recipient s undei the custody of orliving Wth the parents or spouse of themember in which case the beneflts shall bepaid to such parents
or spouse, asrepresentativepayee of the recipient.o Such benefits are Nof Transferableand no
power of'aftorney
or other document
executedby those entitled hereto in favor ofany agent, attorneyor any other personforthe collectionhereofon their behalfshallbe
recognized, xceptwhen they are physicallyunable o collectpersonally uch benefits:o In case of death benefits, f no beneficiary
qualifiesunder this Act, said benefitsshallbe paid to the legal Helrs in accordancewiththe laryof succession.
Exemptions from Tax, Legal Frocess andLien1. The SSS and all its asselpand properties,
all contributionsollected-and ll accruals
theretoand incomeor investment arningstherefrom as well as all supplieqequipment,papersor documentsshall beexempt ,frsmi,:anytax, assessment, fee,charge,or customsor importdut[ and
2. All benefit payments made, by the SSSshall likeryise e exemot from all kinds oftaxes, fees or charges,and shall not beliable to attachments,garnishments,evyor seizure by or under any legal or
*equitable "process whatsoever, either
before or after receipt by the person orpersonsentitled hereto,except o payanydebt of the member o the SSS.
Rem ttance of ContributionsThe contributionsmposedunder his Act shallbe remitted o the SSS withinthe first ten (10)
days of each calendar month following themonth for which they are applicableor withinsuch ime as the Commissionmay prescribe.
Self-employed members shall remit theirmonthlycontributions uarterlyon such dates
and schedules as the Commission mayorescribe.
#ff {}*a L&\ftf
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5sn frelg @ofuge I.elo
2011CENTRALIZEDAROPERATIONS
Duties of the EmPloYer1. To pay employer's contribution in
accordancewith the scheduleprovided n
thisAct;2. To deduct and to remit employees'
contributions;3. To immediately report to the ssS the
names,'ages,
civil status, occupations,
salaries and dePendents of all his
employeeswho are su$ect to compusory
coverage;4. To keep true and accuratework recorcls
for such period and containing such
information as the Commission may
prescribe;5. To require,m a condition o employment,
the presentationof a'registrationnumber,'',,:';'securedby the prospective mployee rom
the SSS in accordance with suchprocedureas the SSS mayadopt;
6. To notify the SSS oi the confinement-
within 5 calendardays after receiptof the
notification rom the employee member;
and7. To advance in two equal monthlY
installments he maternity leave benefitswithin 30 days from the filing of the
maternityeaveaPPlication.
Liabilities of thg EmPloYer:1. The emploYer shall PaY to the SSS
damagesequivalent o the benefits,which
said employee member would otherwise
have been entitled to, for his failure to
remit he required ontributions'
To pay,besideshe contribution,penalty
thereon f 3%permonthrom hedate hecontributionalls due until paid, or hisfailureo deduct nd emit ontributions;To pay o theSSSdamages quivalentothebenefits, hich aidemployee emberwouldhavebeenentitledo hadhisnamebeenreported n time by the employero
the SSS,for his failure o reportmattersrequired ponhim;andTo pay o the SSSdamages quivalentothe differencebetween he amountof
I rbe[gfits;.towhich,theemployee"ember:"f
' or hiJo6nLfiCiiry oitd havebeeiientitledto had the proper contributionsbeenremitted o the SSS, and the amountpayableon the basis of contributionsactually emitted;or hismisrepresentationof the true date of employmentof the
,emptoyeemember r for remittanceo theSSScontributionsess han hose equiredin this Act or for failure to remit any
' contributionsdue prior to the date ofcontingencY.
Note: The right of the emPloYee..toinstitute he netessaryactionagainst he
' emplover ho refuses rneglectso remlt
Ioriiti6rtion"may be commenced ithin20 years rom he time hedelinquencys
knownor theassessments madeby the
SSS,or from he ime hebenefit ccrues'as the case may be' The prescripttve
oeriod does not commencewhen the
obligationo pay the premiums ccrues
(Lo v. cA [1e9e]).
Settlementof DisPutes Sec'5)
JurisdictionSocialSecurity ommlsston'
Cases Coverd: Any disputearisingunder
thisActwith resPecto: (CBCPA)
1. Qoverage;2. Qenefits;3. 9ontributions;4. Penalty;And5. AnYmatters elafedhereto'
Procedure,i
'-F;l;;. determination no settlement.of
oi=bii"" shall be governed.bYle ru]::
anO regulations romulgated y,tne
commission;2. Shallbe eard Y:
a. Thecommission;b. AnYof tsmembers;r
;. Helringofficers ulyauthorizedy he
commission;3. Snatt-Oeecidedwithin wenty 20).days
afterhesubmissionf evidence;no
4. sn"if-0" nna andexecutoryf no.appeal
within fifteen{15)days from nottceor
judgment.
A
7.N o eN o l
staythe
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LABOR AW
SOCIALEGISLATION
COVERAGEMembership n the GSIS shall be compulsoryfor all employees eceiving ompensation hohave not reached the compulsory etirementage irrespective f employment tatus.
Excegtions to the Compulsory Coverage(APC')o Members of the Armed Forces of the
PhillppinesAFp),subject o the condition
that they must setfle first their financialobligationwith the GStS.r Members f the philippineNational oiice
(PNP), subject to the condition hat thevmust setfle flrst their financial obligationwith he GStS.
o Gontractualswho have no employerand. employee relationshipwith the agenciestheyserve;and
. PurelyCasualemployees.
Note: All membersof the GSIS shall have ifeinsurance, retirement, and all other socialsecurity protections such as disability,surviv.orship, eparation, and unemploymenibenefits.
Exception: Members of the Judiciary andConstitutional Cornmissionsshall have lifeinsurance nly.
Computation of Service
Computed from the date of originalappointmenUelection,including periodj ofservice at different times undei one or moreemployers, hose performedoverseas underth€,authority f the Republicof the philippines,and those that may be prescribeOby tneGSIS.
All servicecredited or retirement, esignationor separation or which corresponding enefitshave been awarded shall be'excluO-eJn ine
comp"utation oJ servicq in case ofreinstatementin'the servici of an employerand
. subsequent retirement or separationwhich s.compensable nder his Act.
*Effectof Separation from Service (Sec_ ) -The membershall continueo be
"'ru*06r,nd entitled to whatever benefits he hasqualified to in the event of any contingencycompensableunderthis Act.
DEFINITION F TERMSEmployer - The national government, itspolitical subdivisions,branchds,agencies or
rnstrumentalities ncluding GOCCs andfinancial nstitutionswith originalcharters, hdConstitutional ommissions nd the Judiciary.
Employee/ Member - Any person receivingcompensation while in the service of anemployer,whetherby elecdion r appointment,irrespectiveof the status of appointment,includingbarangayandSanggunian fficials.
Dependents(SCP)1. The legitimate Spouse dependent for
supportupon he membq;or pensioner,2. The egitimate,egitimated,egally dopted
Child, ncludinghe il legitimate hildwhois:a. Unmarried, otgainfullyemployed,not
over he age,of:majority; Rb. ls over the age of majority but
incapacitated and incapable of self-support due to a mental or physicaldefect acquired prior to age ofmajority;
3. Parentsdependentupon the member for* suppo.rt.
Primary Beneficiary- The legal dependentSpouse untll he/she remarries and thedependent hildren.
Secondary Beneficiary - The dependentParentsand, subject o the restrictions n thedependent children, the legitimateDescendants,
Compensation - The basio pay or salary
received by an employee, pursuant to hiselection/appointment, xcluding per diems,bonuses,overtimepay, honoraria,alloruancesand anyotheremoluments eceived n additionto the basicpay which are not integrated nto
mentionedn
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Sen Fela €olteged1e
2011CENTRALIZEDAROPERATIONS
Temporary Total Disabililt - Accrues orariseswhen mpaired hysical nd/ormentalfacultiescan be rehabilitated ncUorestoredto theirnormalundiors
Permanent Partial Dis$ility - Accruesorarises pon he rrewcablecs or impairmentof certainportiorVsf the physicalaculties,despitewhich hemembers able o pursuegainful ccupation.
BENEFITS
GeneralRule:All members f the GSISshallhave ife insurance,etirement,nd all othersocialsecurityprotecdionsuch as disability,survivorship,eparation, nd unemployment'benetits.
Exception:Members f the Judiciary nd heConstitutional ommissionshall be entitledonly o life nsurance enefrts.
A. MonthlyPensions Sec.9)
1. 37.5o/oof the re-valuedaverage. monthlyompensation;lus2, 2.5o/oof said re-valued average
monthly ompensationor eachyearof service n 'excessof 15 YearsPROVIDEDhat the basic monthlYpension hallnot exceed90% of theaveragemonthlyompensation.
3. The basic monthlypensionmaYbeadjusted pon he recommendationfthe PresidentndGeneralManager f
the GSIS and approved bY thePresident of the PhiliPPines naccordancewith the rules andregulationsrescribedy heGSIS;
PROVIDED:a. The basicmonthlypension hall
notbe ess hanP1,300.00 ndb. The basic monthlYPension or
thosewho have rendered t least20 years of service after the
' : effectivity f this Act shall not be' ;'tu)i:i,.,ffi$l,i?4,{180-99yonthr'B. Separation enefits Sec.11)
1. Cashpayment quivalento 100%of. theaveragemonthly ompensationor
each year of service he Paidmntributions, but not less thanPl2,000;
c. Has rendered t leasl three (3)
Yearsbut less than fifteen(15)
Years fservice. R
2. Cashpayment quivalento eighteen(18) imeshis basicmonthly ension
at the time of resignationor
separation, lus an ol6-agepenslon
benefitequal to the basic monthlYpension.
Conditions:a. PaYablemontlf,Y Ponreaching
theageof sixtY60)Years;b. He has resignedor separatecl
fromservice;ndc. Hasrendered t least ifteen 15)
Years fservice.
Note:A member eParatedromthe
service hall ontinueo bea member,and shall be entitled o whateverbenefitshe has qualified o in the
event of any contingency
comPensablenderhisAct
C. UnemPloYment or lnvoluntarYSeparationBenefits Sec' 12)Monthly ashpayments f equivalento
50% of the average monthlY
comPensation.
Conditions:1. Employees separatedrom -service
due to the abolition f his officeor
position usuallY resulting fromreorganization;nd
2. He has been PaYing integratedcontributionsor at least1 yearprior o
seParation..
D. Retirement enefits Sec.13)
Conditions:'a, "Payapleupon reaching he age ofsixty (60) years;
b. He has resighed or separated
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LABORLAW
SOCIAL EGISLATION
lf he is in serviceand has paid atotal of at least 180 monthlycontributions, e shall
receiveanadditional cash payment of 1gtimes his basic monthly pension;andMember cairnot enjoy monthlyIncome benefit and the old-ageretirement imultaneouslv.
2. Cash paymentequivalent o 100% ofhis avera(;emonthlycompensationoreach
year of service but not lesS hanP12,000.
.-:".,,,,,, . Spg-cificConditions\ . , ,a..Member does not satisfv the
conditions under the precedingnumber;and
b. Has rendered at least 3 years ofseMce at the time of Cisanitity.
Note: Retirement is compulsory uponreaching65 yearsof age with at least 15years of service.BUT if he has renderedless
than 15 yearsof service,he may beallowed o completehe said period.
E. Permanent Total Disability Benefits(Secs. 1*16)
GeneralConditions:Employeesuffersdisabilitynot due to his:(MisNlK)a. Gravemisconduct,b. Notoriousgegligence;
c. Habitualntoxication; ndd. Willful intention to kill himself oranother.
1. Monthly ncomebenefit or life eoual othe basicmonthlypension.
Specific Gonditions:a. Effective from the date of
disabitity;b. He is in service at the time of
disabitity;c. lf he is separated rom service, he
has paid at least 36 monthlvcontributionswithin the S-vearperiod immediately precedingdisability, r has paid a total of atIeast 180 monthly contrlbutionsprior o the disability;
Suspensionof Disability Benefits1. He s re-employed;2. He recovers romdisability; r
3. He failed to present himself formedical examinationwhen requiredby he GSIS.
F. Temporary Total Disability Benefits(sec.18J75o/o f the currentdaily compensationoreach day or fraction hereof of temporarydisability.
Conditions:d(
1. Such benefit shall not exceed 120days n one calendaryear.
2. Employeehas exhaustedall his sickleavecre,jits and cq{eeJiye,Qargainingagreementsick leave benefits;
3. He is in service at the time of hisdisability; r
4. lf separateC, e has ;enderedat least3 years'ofserviceand paid at least6monthlycontributionsn the 12-monthperiod immediately preceding thedisdbility;
5. Membercannotenjoy temporary otaldisabilitybenefit and sick leave paysimultaneously;
6. lf the disability requires moreextensive reatment that lasts beyond120 days, the payment of thetemporary otal disabilitybenefit maybe extendedby the GSIS but not toexceeda total of 240 days; and
7. Such benefit shall not be less thanP70a day.
G. Survivorship Benefits (Sec.20)When a member or pensionerdies,beneficiaries shall be entifledsuwivorship enefits:
trdRffidts€
heyearsof
of his death
e. theto
is
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Sun FebsGotlege f Agto
2O1ICENTRALIZEDAROPERATIONS
within tte $year periodimmediatdy preceding his death;ot:
c. lf separatedfrom service, he hasPaida total of at least180 monthlYcontribx.rtions rior to his death.OR
2. Survivorship Pension plus cashpayment equinalent o 100% of his
average monthly compensation foreveryyear of service.
Conditions:
a. Employee was in service at thetime of death: and
b. Has rendered at least three years- of serviceOR , 'i:--::
3. Cash p-yment equivalent o 100% ofhis averagemonthlycompensationoreach year of seMce he paidcontributions, hJt not less thanP12,000.
Conditions:.a. Employeehas renderedat least 3
yearsof serviceprior o his death;but
b. He failed to qualifyunder items 1and 2 mentionedabove.
Note: The survivorship ensionshall be paidas follows:o When the dependentspouse is the only
survivor. he/she shall receive the basic
survivorship ension or life or until he/sheremarries;
. When only dependent children are thesurvivors, they shall be entitted to thebasicsurvivorship ensionas long as theyare qualified, plus the dependentchildren's pension equivalent o 10% ofthe basic monthly pension for everydependentchild not exceeding5, countedfrom the youngest and withoutsubstitution,
r . When the survivors are the dependent- ..,,jspougd'iiiio'tne'cede'naentctrltitien,''the' :''dependent
spouse hall eceivehe basicsurvivorshipensionor lifeor untilhe/sheremarries,and the dependentchildrenshall receive he dependentchildrenpensionmentionedn the. immediatelypreceding aragraph hereof.
lf there are no primary beneficiaries,secondary eneficiariesre'entitledo:
r Cashpayment quivalento 100%of hisaverage monthlycompensationor eachyearof sbMce he paid contributions, nt
not less hanP12,000PROVIDEDhat the
memberwas in service at the time of his
deathand has renderedat least3 yearsof
service;ando ln the absenceof secondarybeneficiaries,
such benefitsshall be paid to his legal
heirs.r For purposesof the survivorship enefits'
legit imateclt i ldrenshall include legally
adoptedand legitimated hildren.
H. Funeral Benefits (Sec.23)
In an amount lxed by the GSIS rulesand
regulationsbut should not be less than
P12,000, to be increased to at least18,000 after 5 Years, PaYableuPon the
deathot1. An activemember;or
2. A memberwho has been seParated
from the service, but who may be
entitled o futurebenefit;or
3. A pensioner; r4. A retiree who at the time of his
retirementwas f pensionable ge'
tl lite insurance Benefits lsec- 24)Compulsoryupon all employees except
membersof the AFPand the PNP.
J. LoanGrants*. so)GSIS undsmaYbe invested:
1. In direct housing oans to members
and group housing projects securecl
by first mortgage,givingpriority o the
low ncomegrouPs;and
2. ln short and medium-term oans to
members such as salary, PolicY,educational, emergency stock
purchaseplanand othersimilar oans'
Adjudication of Claimsand Disputes
Ju
GSISJURI
1997the
. APPeal
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LABOR AW
SOCIALEGISLATION
. Appealshall not staythe executionof theorder or award unless ordered by theBoard,by the Court of Appeals,or.5y tn"SupremeCourt;ano
o Appeal shall be without prejudice o thespecial civil action of certiorari whenproper.
Execution (Sec.32). Any decisionor awardshallbe executed n
the samemanner s in he RTC,o The Boardhas the power to issueto the
city9r provincialsheriff or its appoinieO
sheriff writs of execution iortheenforcement f suchdecisionor award.
. Any personwho failsor refuses o comolvafter being equired o do so sn"ri-u6iappticationby the GS|S, Oe punisneJ-toicontempt.
Exemption from Tax, Legal process andLien
]h9,GS.IS, ts assets, revenuesand benefits
paid shall be exempt from"ff
-i"*"",
assessments, ees, charges or duties of at lkinds.
imprisonment rperpetuas mposed;
death or reclusion
\ . .' i i . . ^ i
*{}i;.Ltr {S'ff1*$ i"-;AW
752
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Sen SeM GoUegef [nlo
2011CENTRALIZEDAROPERATIONS
SOCIALSECURITYACT ANdGOVERNMENTSERVICE NSURANCESYSTEMACT
1. Employer' Ndional overnment'ts
potiiicai subdivbiors, branches,
Loencies or instrumentalities,influding government-owned r
controlledorporations ith original
charters.EmploYee- AnY Person ecevlng
compensationhile n heserv'pe.ol
an emploYer as defined herein'
whether by election or apPointment'
including barallgaY and
officials.
his orders as regard theEXCEPT HOSEUNDER HEGS. Employee - AnY Personwho
servicesfor an emPloyerwhocompensation for such servlces,
there'E
an employer
relationship.3. Self4.mlpoyed - considered as both
1. Employer Anyperson,whocarneson In
the Philippinesany trade, business,
industry, undertaking, and usesservicesof anotherPersonwho b
1. Legalspouse entitled or suppo(
2. Cnid,'whether.
legitimate, legitimated,
legaltyadopted oi ineditimate;and3. Paents deoendentfor suPPort
1. Unmanied;2. Not gainfultYemPloYed;
1. Notoverageof majoriV; r1. Hasnotreached1Yearsof ge;or
CbmpulsoryAllemployeeseceivingompensation*ht d"i not reacfredhe comPulsory
retirement age, inesPective of
.physically r mentally rior o 2'l yearsofor majority ge,as he casemaYbe.
1. Incapable f supporting irneelf
t Members fAFPandPNP;
2. Contr*tual emPloYees, who have
no emploYer-employeeelatiot
with he agencYheY erve;and
. Members. of Judiciary ancl
Constitutional Commission, who
shall be covered onlY bY life
insuranceoverage.. PurelYasualemPloYees.
1. Employmenturelycasualand not orpurposeof occupation r businessofemployer;
2. Services performed on or in connection
with an alienvessel by an employee f he
employedwhensuchvessel s outsidePhilippines;
3. Serviceperformed n the employofPhilippinegovemment,nstrumentalityagency hereof;
. Service performed in the employ offoreign governmem,organization, or lheirinstrumentality;nd
5. Services performed bYemployees, which may be excluded
regulat'rionf the Commission.
All acfrral . emuneration forincluding the mandated
as well. 6 the cash value
ationpaidtin any.medtum
iash excefr thatpart
of theexcess rfhe maximum alary redit
1. Employer'scontributionon hisceases:
. Employee'sobligation o contributeceases at the end
-ofthe mon
separation;and3. Employee'shalf be credited with
contibutions paid on his behatfentitled to beneftts according toprwisionsof thisAct.
Note: He may continue o pay thecontbutions to maintain his rigttt to
' bbneft
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LABOR AW
SOCIAL EGISLATION
EmployerReport immediately o SSS theinformationon all his covered employees:1. Names:
3. Civil tatus;4. Occupations;5. Salaries: nd
Self{mployedReport o SSSwithin hirty(30) days tomfirst dayof his operationhe ollowing:1. Name:
2. Age;3. Civil tatus;. Occupation;, Averagemonthly et ncome; nd
to GSIS the followingall his covered employees:
Salaries;nd5. Such other matterdeterminedy heGSIS
. Rertirementenefits:
. Permanentisability enefrts;
1. Sickness enefrts:2. Maternityeavebenefits; nd3. Dependents'ension.
1.Temporary isability enefrts;2. Separationenefits;3. UnemploymenUinvoluntar
separation enefits;4. Survivorshipenefits; nd5. Life nsurance enefrts.
', assets,andrevenue of the GSISand SSSare all exempt rom axes,and allpaidby SSSor GSISshall ikewise e exempt romtaxes,assessments,ees,and duties of all kind.
1. Coverage;2. Benefits:3. Contibutiors:
5. Anymaters elatedhereto.
SocialSeorrityCommission
Mandatory-periodf twenty(20)submbs'ronf evidence
- Que$ions of law and facts (Rule- Questionsf lawonly Rule45)
DisputeArising From:disputearising under his Act andlaws administeredby the GSIS.
**Lffi{S.tr S"|*AW
10 YEARSfrom the time the right of
Employer'sontributions;ndEmployee's/Member'sontributions
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5sn FeUa€ollegeof fstn
2011CENTRALIZEDAROPERATIONS
An Act institutingLtmrtedPortability Scheme nthe Social Seanrity lnsr.tnnce Systerns by
TOTALIZING THE WI3.RKERS'CREDITABLESERY/CES OR COA/TRIEUIIOA/SN EACH OF
IHE SYSTEMS.
Policy of the StaE: (PtT)
1. lromotion of workers' welfare by realizing
their efforts n productiveendeavors;2, lmprovement of workers' conditions by
providingbeneftts for their long years of
contributiono nationaleconomy;ancl3. Totalization nd portatrility f socialsecurity
benefits with the vierryof establishingwithin,a reasoneble erioda unitarysocial securitysystem.
Note: lt includes contributions paid by theemployee or worker on account of the worker's
membership to the system, either theGovernmentSeMce InsuranceSystem (GSIS)
or the SocialSecuritySystem SSS). r
Totalization - refers o the processof addingup the periods of . creditable services orcontributionsunder each of the systems, forpurposes of eligibility and corhputation of
benefits.
Portability - refers o the transfer of funds for
the account and beneflt of a worker whotransfers rom one system to the other.
Who are the covered workers? (TE)'1.
Those who fransfer employment rompublic
to privatesector or vice-versa;or2. f,mployed in both privateor prublic ectors
The creditable services or contributions inboth systems shall be:1. Creditedto heirserviceor contributionecordin each of the systems;and be2. Totdized for purposes of old-age, disability,$urvivorshipand other benefits in case thecovergd membe.rdoes,not qualify for SSS orGSIS'benefits'in ither or both systemswithout
totalization.
Note: In case of overlapping periods ofmembership,t shall be creditedonly ONCE forpurposesof totalization
ProportionalitY of Benef ts :Benefits to be paid by the system shall be inproportion. to the number of contributions
ACTUALLYREMITTED o that sYstem.
Note: Atl cohtributions paid by such member
personally, and those that were paid by his
employers o both systems (SSS and GSIS)
shallbe consideredn the processing f benefits
whichhe can claim romeitheror bothsystems'
Policy of the State:Promotion of a tax-exempt employees'
compensation rogramwherebyemployeesand
their dependents, in the event of work-
connecled disability or Qpath, may promptly
secure adequate incomel medical or related
benefits.
Primary purPose:
+o proviOe ompensationor disabilityor death
resulting rom occupationalnjuriesor diseases'
or accidientalnjury o, or deathof, employees' t
is for the Oenetitof injured employeesand not
for the injuredemPloYers.
Workmen's ComPensation and State
lnsurance Fund (SlF)
Workmen'sCompensation - genbral term
applied to those laws providing for
compensation rom loss resulting from injury'
disahement, or death of workmen through
industrial accident, casualty or disease' The
amount of compensation is generally
determined in accordance with a definite
schedule,basedupon the LOSS OF EARNING
POWER.
Two classes of source of compensation:
1. Direct Payment Statr.rtes - payment of
compensationby the employer directly tothe emPloYee
2. lnsurance-Statutes (SlF) - require the
emplover o take out insurancebureau
operated by the state or with private
type.t o aequicreditpayState
1. Builtbased
2 . C
oyees.bompensation
not required.
company
orfr&rffi#ffir$ation
' b yt h e
155
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LABORLAW
SOCIALEGISLATION
Opposition by the employers s likewisediscarded.
3.lresumption
of compensabilityn favor ofthe workmen is abolished.EXCEPT n thecase of policemen and members of theAFP, the presumption arises from thenature of their work provided thatevidentiarydetails of injury or death arecfearlyestablished.Quebecv. GS/S)
4. Ruleon gggravation f illness s removed.5. Employers'gluty is only to pay the regular
monthly remiumso the scheme.6. Emplclyees' Compensation Commission
(ECC)settles the claim from fund towhether or not compensationmay be paid
under ts exclusive ontrol.
EMPLOYEES'COMPENSATIONCOMMISSION
A. Structure:1. Chairman DOLESecretary)2. Ex-Officio Members (SSS Adminislrator,
GSIS President,ECC ExecutiveDirector,
MedicareChairman)
B. Thrust of ECC Program:1. PreventiveThrust.- o minimizeand control
hazards n the workingenvironment.2. Compensative Thrust - ECC through SSS
and GSIS pays benefitso the workerswhosufferwork-conqectedonti gencies.
3. Curative Thrust - treats the sickness orinjury hat a workermaysuffer.
Compulsory Coverageupon:1. Allemployers;2. Theiremployeesnot over60 yearsold;or3. Employeesover 60 years old and paying
contributions: nd4. Filipino employees employed abroad
subject o prescribedECC regulations
Covered Employees:1. Personscompulsorily overedby GSIS or
SSSi
2. Those employed as casual\ emergency\r' : I ;' tempofiry;:r,,,', ubgtitute)* or . .,,qontrac{ualemployees;and
3. fiiembers oiine A-FF.
Qualified Dependents.:1. Legitimate, egitimated, egally adopted or
acknowledgednatural chib who isa. Unmanied,b. Notgainfully mployed; ndc. Not over21 yearsold or
d. Qver 21 years old provided that he isincapacitated and incapable of self-
' s{rpport due to a physical or mental
2. Legitimatepouseivingwith he employee,and
3. Parentsof said employeewhollydependentupon him or regular upport.
Qualified Beneficiaries1. Primary
a. Dependent spouse until heremarries; nd
b. Dependent hildrenc. Dependent acknowledged natural
child onlv when there are noother deoendeni childfen who arequalified and eligible or monthlyincome benefit.
2. Secondarya. Dependentparents;
b. lllegitimate childrenandc. Legitimate descendants ubject to the
restrictions imposed on dependentchildren
Liability of Third PartiesWhen the disability or death is caused by
circmri'stanceSreatinga legal iabilityagainstathird party, the disabled employee or thedependentsn case of his deathshall be paid.
The system shall be subrogatedo the rights ofthe disabled employee or the dependents ncaseof hisdeath as against hirdpady.
Note: Where the system recovers rom suchthird partydamages n excessof those paid oralloned under this Title, such excess shall bedelivered to the disabled employee or other
personsentitledhereto,afterdeducting he costof proceedings nd expensesof the system.
Coverageof Compensability: (ISDD)1. lnjury2. $ickness3. Qisability4. Death
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5ffi SeDs @ollegeof {.eto
2011 CENTRALIZED AROPERATIONS
Injury - any harmful change in the human
organism rom any accident1. Arisingout of, and
2. In the courseof emSoyment.
"Arisingout of refersto the origin or cause of
the accident.ln the @ursr- of Employment"
refersto injurythat takes placewithin the period
of employment, at the place where the
employee reasonably may be, and while is
fulfllling his dr.rtiesor is engaged in doing
something incidental hereto. (llcilo Dock and
EngineeringCo. v. WCC, et al. GR no L-26341
November27, 1968)
Note: Employmentndudes not only the actual
doing of the worl( btrt also a reasonablemargin
of time and space necessary to be used in
passing o and from the placewhere the work is
to be done, where the latter is expressly,or
impliedlyncluded n the terms of employment.
RELEVANT DOCTRTNES1. Proximate Cause Doctrine
Proximateegalcause s one acting irstand
producing he injuryeither immediatelyor
by settingothers n motion.They constitute
a natural and continuouschain of events,
each havinga close casualconnectlonwith
its immediatePredecessor.
Where Primary injury is shown to have
arisen n the course of employment,every
natural consequence hat flows from the
injury ikewisearisesout of the employment'
unless it is the reSult of an independent'- interveningcause attributable o claimant's
own negligence or misconduct. (Belarminov. Employees''Compensation Qommission,
GR no. 90104,MaY 11, 1994)
GeneralRule: Proximatecauseresulting o
injury is an injury arising out of the
emPloYment.
Exception: When independent ntervening
cause ensues attributable to claimant's
' , . l ' ,? .u t , r . . . . . , . - . ;1; , , \ ; ; :€ i . . i r1r . . , : .s i i . .
2. 24.Hours DutY DoctrineGeneral Rule: Soldiers, policemen and
firemen by the nature of their work may be,
c.onsidered on duty round-the-clock. lt
relaxes the workplace tador but still
requires work-connectian. (Hinoguin v.
ECC, GR no. il40, APril17, 1989)
Exception: Moonligfrting here the injury s
not work-connected.
Notq The Z4-hourdufy doctrine should notbe sweepingly applied {o all
.acts and
circumstancesausinghedeathof a police
officer utonly o thosewhich,although ot
on official ine of duty, are nonetheless
basically olice ervicen character'GS/Sv. Atlegre, Rno. 128524,April 0, 1999)
3. DirectPremisesDoctrineGeneral Rule: Accident should have
occurred at the Place of work to be
compensable.
ExcePtions:Wnen njurysCOMPESSABLEvenwhen
it did NOT occur at the Placeol worK
(Going to, Comingfrom/ lngress' Egress
Rule) (PPENSS)^, f*t't" - PremisesRule - where the='='ernployetis roceedingo or fromhis
woit< n hepremisesf hisernploye6.b. froximity Rule - where employees
l-Oouto enteror leave he premises f
hisemployerywayof theexclusiver
customary means of ingress and
egress;itoiloOocX& Engineein?co^Y
tricc; aR no' L-26341'November27'
loaeYc. Speiiat work-relatedrrand [ule. ..-
where he employees chargedwhile
on his waY to or from his Placeot
emPloYmentr at his homeor during
his' emPloYment ith some duty .orspecial
'eirand connectedwith ^his
uiiPfoYt"nt (Enaov' ECC' 135SCRA
t57
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LABORLAW
SOCIALEGISLATION
e. Shuttle Bus Doctrine - where theemptoyer,as incident to employmentprovides he meansof transportationoandfrom place
of employment.f. Special Engagement Rule - whereemployee s injuredwhile at recreationduring a temporarycessationof work,atso clvers fleld trips, intramurals,outingswhen initiatedor sponsoredbyemptoyer.
Test Whether the recreationwas forthe employee's exctusive benefit orwhether the employer had someinterestn the
activity.Note: In the absence of specialcircumstancesenumerated_bove, anemployeenjured n,going o,'orcomingfrom, his place of work is NOTCOMPENSABLE.
4. Incidents of Employment DoctrineActs which are reasonablyncidental o theemploymentare deemedarisingout of suchemptoyment, thus
COMPENSABLE.(MCBEG)a. Acts of personalMinistration;b. Slight deviation from work from
Curiosity;
9 Acts for the Benefit of the employer;d. Acts n fmergencies,e. Acts done to. urther he Goodwillof the
business;
Acts of Ministration (M)Injuriesduring an intermission
or break forrest or refreshment arises in the course ofthe employment.re compensable.
a. S/eeping
c. Union MeetingInjury receivedat union meeting is NOTcompensable,not an injury arising out of
and n the courseof employment.
Acts for the Benefit of Employer (B)Injury arising out of and in the course of hisemployment is compensable becauseemployee'sact enhances the prestigeof theemployerand results n increasedpatronageofthe serviceof his employer.(Versozav. Vda.Dela Cruz, GR no. L-7305,December 1953)
Doing Work at Home'r t
Compensablewhen injury is sustained fromwork at homedone pursuant o the terms of thecontract,expressor implied,or pursuanto thedirectionor requestof the emptoyer,EXCEPTwhen work at home is done voluntarilyby theemployee or his own convenience.
Acts during Emergency(E)Injurysustainedwhile doing an act outside hescope of his usual duties where such act wasreasonably necessary or incidental to his
regular wor( particularly if an emergencyexisted, and although no emergency orreasonable necessity existed calling for {heperformanceof such act, workman is alloryedcompensationf it was done in the furtheranceof the employer'sbusinessor pursuant o habitor custom.
5. Dual Purpose and Mingling of PurposesDoctrineCompensable when injury is sustained
while on a trip undertaken or the benefitofthe employereven in the course hereof heemployeepursuesalsoa personalpurpose.
Test lf the work of the employee ends tocreate necessity for travel, employee isdeemed n the courseof employment, lbeit
t ime some
Rlsksof hisbe at
andone
thereof his
arising ut
Ilr.e fagt that an employee nintentionallyfallsasleepwhilehe is resting t a propertimeandplace oesnotnecessarilyepiivellim of the right to compensationoi aninjury eceived hileso sleeping, XCEPTwhen his dutiesare of such natureas torequire im o remain wake,
s n hecase' o f a w a t c - h m a n ., : , , \ . _ : , , , ' .
O. uncn -:
Compensablehen injuryorcunedduringlunchperiodwhere he eatingof the luncion employeis premiseswas with theemployeis knowldge and consent.express r implied, XCEPT hen t resultfrory an independent ct of the employeehayngnoconneclion ithhisworkoi meal,or f theemployeet the imewas na placewherehe hadno right o oe. emof
Maj$ffi{ ffiffi*e
injured.rs so
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$en @ebs@ollege f [.sb
2011CENTRALIZEDAROPERATIONS
7. AssaultCompensable f assault against employee
arising out of the employment, althoughresulting rom a deliberate ct of the slayer,is considered an accident or unforeseeninjury and act of which the injured party is
not legally esponsible.
8. Violation of the RuleGeneral Rule: Ads within the sphere of
employmentbut carried out in violation of
the rulesare compensable here: (CSl)
a. Violationof the rule itself did nof bringabout he gauseof the accident;
b. There is serious doubt that prohibitionwas known to the emPloYee niured;and
c. Violationwas not ntentionaland due to
negligence r carelessness.
Exception: Not compensable hen injury s
caused by: (WlN-Law)a. Willful ntentiono injureor kill himself
or another;b. lntoxication y emPloYee;c.
lotoriousnegligence;d. Otherwise excluded from coverage ofLaw.
B. SICKNESS ANDDISEASE
OCCUPATIONAL
Sickness - any llnessdefinitelyacceptedas:
1. OCCUPATIONALDISEASE listed by the
Commission, r2. CAUSED BY EMPLOYMENT, subject to
proof that the risk of contracting the same isincreasedby wqrking conditions.
Theory of Increased Risks - if the ailment s
not included n the listof occupational iseases,
the claimanthas the burdenof proving hat the
nature of the work increased the risk of
contracting the disease. The degree of proof
required s merelysubstantialevidence.
.C: qtSABtUTtf ;.: ';'r,i''::"-' l f ''',''' 11'.,.'r'1t'.11ri";1t;,'
There is disability when there is a loss ordiminutionof earningpower becauseof actual
absence from work due to the injury or illness
arising out of anb in the course of business.
Basis is the REDUCTION OF EARNING
POWER.
Categoriesof Disabil ty:1. Temporary Total DisabilitY
As a result of injury or sickness; theemployee s unable o perform any gainful
occupationfor a continuous period NOT
EXCEEDING120 DAYS.
Amount of Benefits:lncome benefit equivalent to 90% of hjs
average daily salary credit subject to
following:a. genefit shall not be less than P 10 or
more than P 2OO,nor Paid lower than
120 daYs UNLESS injury or sickness
requiresmore extensive reatment hat
lasis beyond120days not exceeding
240 daYs romthe onset oI
disabiliiY,n which casehe shall
be Paidbenefit or temPorary totll
disabilityduringex'tbnded eriod'(Pl9 -
P200P6rdaY,maximum 120 days)
b. Benefitshall be suspended f emfloyeefailed to submit monthlymedical repart
certifiedbYattending PhYsioan'
Note: Relapse after recovery from illness
shall be considered ndependentol ?Mseparate from the period covere{ OV.tfe
originaldisability.Such period shallnot be
adled to the original disahility period'
Where -after period of temporary total
disability had ceased, he is found to.be
sufferinil from a permanent partlal
disability,he shall be entitled o an a\Marcbaseduponpermanentpartialdisability'
2. PermanentTotal DisabilitY
As a result of the injury or sickness.the
emptoyee s unable to perform any gainful
o"Jup"tion for a continuous period
EXCEEDING 12O DAYS' excePt as
otherwiseprovidedby commission;or any
of the folloring:a. Complete oss of sight of both eyes; . ,
b. Loss of twolimbsat or above he anKle
or wrist:c. Permanent complete paralysis of two
d.
limbs;Brain injuryimbecilitYrSuch
resulting in incurable
the
1s9
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LABORLAW
SOCIAL EGISLATION
Loss of workor inabilitvto perform usualwork
Loss of the use of anvparticular anatomicalPgrtof his body
2. Permanent otalDisabil ity3. Permanent artialDisabiitv4. Death
C. FuneralBeneflts
EXCLUSION FROM EMPLOYEES,COMPENSATTON:
This act does not cover disability or deathoccasioned y the employee,s:WN_Law)
1. [illful intention o injure or kil himsetforanother
D.DEATH
Death lossof ife esultingrom njury rsickness.
DeathBenefitsPaid n he ormof cashmonthly ension:1. For life to the primary'Oenenciaries,^ guaranteedor5 years;
2. Fornot more han60 monthso secondarybeneficiaries:3. Totalbenefltshalioeat teast 15.000.
Beneficiaries:1. Primary eneficiaries:
3Dependentpouse ntil emarries;
b. Dependent children (legitimate,tegitimated, natural borri,
-Ieg;it
adopted)2. SecondaryBeneficianes;
3 iltegitimatechitdren;b. Legitimateescendants:c. Parents, randparents/children
Suicide, provokeddeath or attributable o
one's own aggression s not compensable.Suicide s compensable nly when it results
.,._.,, frofi insanity resulting from compensablework injury; or occurs during deliriumresulting romcompensable isease.
2. lntoxicationThere is impairment of judgment, acts,words and conduct; or one is not entirelyhimself.
3. lotorious negligenceIt signifiesa deliberateact of the employeeto disregard his own personal safety.Disobedience o rules or prohibitiondoesnot in itself constitutenotoriousnegligenceif no intention can be attributed- o tfreinjured o end his life. (paez v. CWW GRNo.L-l8438, March 30, 1963)
4, Otherwiseprovidedby Law.
Note: Liabitityof the ECC through SSSiGS|Sshall be exclusive and in place of all otherliabilitiesof the employer o the employee,hisoependents or anyone otherwise entifled toreceivedamageson behalf of the employeeorhisdependents.
. ; . , . . . , : l j r " . r . \ ; - , .
^eylt-qte_rs;oru'perusArroNENEF|TSSUMMARIZED:A. SeMces
1. Medical e;vices2. Rehabilitationseryices
a. physicatrehabilitatione.g.physical. therapy)
b. Vocational assessment (e.ovocationalducation)
c. Vocationalplacem6nt (e.g. job
placement)B. Cash ncome enefitsof pensiondue o:1. TemporaryotalDisabitity
Loss of use.of part of the body@artia0
inabilityoperformwork
(totat)
hasforhisthe
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Ssn Febs Gollegeof Aarn
2011 CENTRALIZEDAROPERATIONS
3. Only for the first four (4) deliveries oflegitimate spo{rse wrth whom he iscohabiting;and
4. Notifyhis employerof the pregnancyof hislegitimate pouseand tne expecteddate ofsuchdelivery.
Note: "Delivery'shall inor.rdechildbirth r anymiscarriage.PatemrtyLeave Benefitsshall notbe convertibleo cash in case it is not availedof.
COVERAGE1. All employeesn the private ector;?. Part-time mpoyees;3. Employeesof seMce and other job
contractors;rd5. Domesticelpers r personsn he personal
service fanother.
Note:The awdoesnotcover mployeesf:1. Retail, seMce and agricultural
es'tablishmentsr operationsmploying otmorehan en 10) mployees;nd2. Governmentnd its political uMivisions,
includingGOCC's,f they are coveredbythe CivilService awand tsregulations.
WHEN ORETIRE1. Upon reaghing the retirement age
establishedn the CBA or anv otherEmploymentontract.
RetirementBenefits - as he may haveearnedunderexistingawsand any CBAandotheragreements,rovidedhal.a. lt shall not be less than those
prescribed y the Retirement ay Law;and
b. lf suchbenefits re ess, he employershall pay the difference etween heamountdue the under he RetirementPay Law and that provided nder heCBAor retirementlan.
2,:il0 :$e'€b6ence. f rbtiremerfplan';or.:CBAregarding retirement, employee uponreachinghe age of 60 yearsor moreandhas servedat least 5 years n the saidestablishment.Optional etirementi
Retirement enefits equivalento at least- 1n month alaryor every earof service;
fraction of at least 6 months beingconsideredsonewholeyear.
Note: Unless parties provide for broadeiinclusions,he term "1/2 MONTHSALARY"shall mean 15 days+ 2.5 days representing
one-twelfth 1t12)of the 13* monthpay and the
cash equivalentof not more han ive (5) days of
service lncentive leaves,or a total of 2.5 days
for everyyearof service.
3 Upon reachinghe age of 65. (Compulsory
Retirement)
RETIREMENT LAN VIS-A-VISRETIREMENT
PAY LAWA retirementplan in a companypartakesof the
nature of a contract,with the employerand the
employeeas the contractilgparties.R.A. No.7641onlyappliesn a situation here:
At . There is no CBA or other aPPlicable
employment contract providing forretirementenefitsoran employee;r -There is a CBA or other aPPlicableemployment contract providing forretirementenefitsaran employee,ut t isbelow he requii-ementset or by aw.
Even f the company oesnot nclude13'monthpay and service ncentiveeaveas
partbf the salarybase,R.A No.7641doesnot applywhere he employeeeceiveslump sum of 1% month'spay per yearofservice. he company lready rantso itsretiring mployeemore hanwhat he lawgiveswhich is % monthsalary or everyyear of service. (Oxales v. UnitedLaboratories,nc., G.R. No. 152991,July21,2008)
DECLARATIONOF POLICYThe State shall: D2H2)1. Value he Dignityof every ndividual:
2. Enhance the development of its fluman
2.
t :
woRK,
1 .
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LABORLAW
SOCIAL EGISLATION
4. fmployer5. Employee,6. leacher;
7. lnstructor;8. lrofessor,9. Coach;10. Trainor; nd11. Any other person who, having guthority,
influenceor gqoralascendancy AlM) overanother.
12. Any personwho glirectsor inducesanotherto commitany act of sexualharassmentasherein defined, or who cooperates n thecomrhission thereof by another, without
which it would not have been committed.shallalsobe held iable nder hisAct.
WHEN Sexual Harassment punishable:. (wET)
1. flork-related;2. lducation-related;and3. fraining-relateo.
WHERE Committed:In a work or trainingor education nvironment.
HOWCommitted:General Rule: Demands, equestsor otherwiserequires any sexual favor from the otherregardlessof whetherthe demand, requestorrequirement or submission s acceptedby theobject of said ac.t.
Specifically:A. In a work-related or emolovment
environment, sexual harassmeni iscommitted
when: (GRIJHO)1. The sexual favor 6 made as agondition:
?. tn thd hiringor in the employment;b. Re-employment or continued
employment f said ndividual; rc. In grantingsaid individualavorable
compensation, terms, conditions,
_ promotionsor privileges.2. The gefusal to grant thl sexual favor
B. ln an education or training environm6nt,sexual harassment is committed: (CEC-rHo)
1. Against one who is under the Gare,custodyor supervision f the offender;
2. Againstone whqse ducation, training,apprenticeship r tutorship s entrustedto the offender;
3. When the sexual favor is made aConditionto the giving of a passinggrade, or the granting of honors andscholarships,or the payment of astipend, allowancd or*other benefits,privileges r consideratidns;nd
4. When the sexual advances esult n anlntimidating, lostile or QffensiveenMronment or the result, trainee orapprentice lHO).
Duty of the Employer or Head of Office in aWork-Related, Education. or TrainingEnvironment (Pre-Pro2Com-Ois)It is the dutyof the employeror headof office na work-related,education r trainingenvirqlnment:
1. To prevdntor deter the commissionof actsof sexualharassment;2. To gide the procedures for the
resolution, ettlementor prosecution f actsof sexualharassment:
3. Promulgate appropriate rules andregulationsn consultationwith and jointlyapprovedby the employeesor studentsortrainee, through their duly designatedrepresentatives, rescribing he procedurefor the investigation f sexual harassment
cases and the administrativesanctionstherefonCreate a ggmittee on decorum andinvestigation of cases on sexualharassmento-increase nderstandingndpreventncidents f sexualharassment;ndThe employeror head of office,educational
Slt*'t ##$&
orhead of
IS
4.
orof
er tlposta l lq
results. in limiting, segregatingor
.crassttytnghe empJoyeehich n anviray i would disbrimliiat'e;deprive ;idiminishemployment pportuhities rotherwise adversely affect saidemployee;The above acts would lmpair theemployee'sightsand privilegesnderexlstingabor aws;andThe above acts would result in anlntimidating, flostile or effensiveenvlronmentor heemployeelHO).
2
4.
Sha
partyand
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5er $e e Goll.egef Leb
2011CENTRALIZEDAROPERATIONS
Independent Action for DarnagesNothing n this Act shall preclude he victim ofwork, education or training-+elated sexualharassmentfrom inditutrg a separate andindependentaction for damages and otheraffirmativeelief.
PenaltiesAny personwho violates he provisionsof thisAct shall, upon corviction, be penalized byimprisonment f not less han 1 month nor morethan 6 months, or a fine of not less thanP10,000nor more than P20,000,or both suchfine and imprisonmentat the discretionof the
coun.
PrescriptionAny action arising from the violation of theprovisions of this Act shall prescribe in 3YEARS.
POLTCYPSR)It is hereby declared o be the policy of the stateto:
1. Provide special lrotection to childrenfrom all forms of abuse, neglect, cruelty,exploitationand discrimination and otherconditionsprejudicial o their developmentincluding hild aborand its worst forms;2. Provideganc-tionsor their commissionand carry out a program or preventionanddeterrence of and crisis intervention insituationsof child abuse, exploitationanddiscrimination:nd
3. Protect and Rehabilitate childrengravely threatened or endangered bycircumstances which affect or will affecttheir suMval and normaldevelopmentandoverwhich hey have no control.
DEFINIT|ONOF TERI,/ISD.O.6&U)
Child - Any personunder 18yearsof age.
Child Labor - Any wo-rkor economic activityperformedy a cfiito lat'subjd&shirh/iier6
'-
any drmof exploitationr is harmfulo his/herhealth and safety or physical, mental orpsychosocial evelopment.
Working ChildAworking child is:1. A childwho is below eighteen 18) yearsof
age, and is engaged n a work or economicactivity that does not constitute child laboras defined in the immediatelyprecedingsub-paragraph, nd
2. A child below ifteen 15) yearsof age:
a. Who is engaged n a workwherehe/she
is directly under the responsibilityof
his/her parents or legal guardian and
where onlY members of the child'sfamilYare emPloYed; r
b. Whose ParticiPation in Publicentertainment or information is
essential.
Collective Needs of the FamilY
Such basic needs as food, shelter' light and
water, clothing, education, medical,
transportation and cither4.expenditure tems
necessary or the survivalbf the family of the
child.
Work PermitThe permit securedby the employer,parent or'
guardian rom the DOLE for any childbelory15
years of age in any work alloryedunder R'A'
9231
Alternative Learning SYstem
A parallel and comparable learning
rarhich provides a viable altemative
existing ormaleducation ystem.
Forced Labor and SlaverY
Generalof age
Exceptions:1. \Men a
systemto the
The extraction of work or seryices from any
person by means of enticement, violence,
intimidationor threat, use of force or coerclon,
including deprivation of freedom, abuse of
authorityor moralascendancy, ebt bondageor
deceotion.
Normal DeveloPmentof the Child
The physical, emotional, mental, and spiritual
growtfr of a child withih a safe and nurturingenvironmentwhere he/she is given adequate
nourishment, care and protection and the
opportunityo perform asks appropriate t each
stage of development-
of the
the sole
or legal
153
When State
I
responsibilitY
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LABORLAW
SOCIAL EGISLATION
guardianand where only membersof his/her amilyare employed.
Conditions:a. That his/ her employment neither
endangershis life, safety, health andmorals, nor impairs his normaldevelopment, nd
b. That he parentor legalguardian hallprovide the said minor child with theprescribed primary and/or secondaryeducation.
2. Wherb the child's employment orparticipation in public entertainment
orinformation hrough cinema, heater, radio,television or other forms of media isessential.
Conditions:a. That the employment contract is
concludedby the child'sparentsor legalguardianwith the expressagreementofthe childconcerned, f possible,and theapprol/alof he DOLE.
b. That the following requirement n al linstances re stricflycompliedwith:i. The employer shall ensure the
protection, health, safety, moralsand normal development of thechitd;
i i . The employer shall institutemeasures to prevent the child'sexploitationor discriminationakingintoaccount he systemand levelofremunerationand the durationand
... anangementof working ime; and
iii. The employer shall formulate andimplement,subject o the approval
"nqsupervision of -competent
authorities, continuing rogram ortrainingand skillsacqriisitioir t thechitd.
iv. The child is provided with at leastthe mandatory elementary orsecondaryeducation.
Note: In the above+xceRttonal cases. theemptoyer
shall r i st, secure,\efcire'
-engaging
such child, A WORK pERMtT FROM 5O"fi,which shall ensure observance of the aboverequirements.
For..purposes f this Article, he te;m ,,CH|LD,,shall apply to all persons under eighteen11S;years of age.
Hours of Work of a Working Child1. A child below ifteen(15j years of ase mav
b_e llowed to work toi n6t moretnan"twenl'v(20)hours weekandmoreha; fd;iii
hours tany iven ay.
164
A child ifteenwho is (15) yearsof age andbeloweighteen 18) shall not be allo,vedo
work for more than eight (8) hours a day,and in no case beyond forty (40) hours aweek;and
No child below fifteen (15) years of ageshall be allowed to work between eighto'clock n the eveningand six o'clock n themorningof the followingday and no childfifteen 15)yearsof age and beloweighteen(18) years of age shall be jllowed to workbetween en o'clock n the eveningand six
o'clock n the morningof the followingday.
Ownership, Usageand Administration of theWorking Ghild's ncome1. The wages, salaries, earnings and other
incomeof the workingchild shall belong ohim/hern ownership nd shallbe set asideprimarily or his/her support, educationorskills acquisition and secondarily to thecollec{ive eedsof the family.
Condition: that not more than 20Yoot thechild's income
may be used for thecollective eedsof the family.
2. The incomeof the workingchild and/or hepropertyacquiredthrough the work of thechildshall be administered y both parents.In the absence or incapacity of either
Hours of Work of a Worki
Not morethan 8hours -
u p aTHEand
to
ll have fullor the
control
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Ss't Gels @oltegef1[ab2OI1CENTRALIZEDAROPERATIONS
Prohibition against Worst Forms of ChildLabor"Worst
forms of dtild labof shall refer o anv ofthe following: Sec 3)1. All forms of slavery,as defined under the
"Anti-Traffrckingof persons Act of 2003,'orpractices imilar o slaverysuchas sale andtraffickingof chibren, debt bondage andserfdom and forced or compulsory abor,including ecruitment f children or use inarmedconflid;or
2. The use, procuring,offeringor exposingofa.childfor prostitution,or the production f
pornography or for pornographicperformances; r3. The use, procuring,offeringor exposingot
a child or il legal r i l l iotactivrties,ncludingthe pi6ductionand traffickingof dangerousdrugs and voldile substances pronibiteOunderexistingaurs, r
4. Work which, by its nature or thecircumstanc€sn which it is carriedout. ishazardousor likely to be harmful to thehealth, safety or morals of children.such
that it :a. Debases,degrades or demeans theintrinsicworthanddignityof a childas ahumanbeing, r
b. Exposeshe child o physical,emotionalor sexualabuse,or is found o be highlystressful psychologically or ."Vprejudicemorals:or
c. ls performedunderground, nderwater,or at dangerousheights;or
d. lnvolves the use'
of dangerous
machinery, quipmentand tools suchas power{riven or explosive power_actuated ools: or
e. Exposes the child to physical dangersuchas but not limited o the dangerousfeats of balancing, physicatstrerigtn oicontortion, r which requireshe manualtransportof heavy oads;or
f. ls performed in an unhealthvenvironment exposing the child
't6
hazardous working conditions,elements, substances,
co-agents or, _ processes involvirlg ionizing, radiation,fire,' flammable sDbstan'ces. hoxiouscomponentsand the like,or to extreme
. temperatures, noise levels, orvibrations: r
g. ls performed.underparticularlydifficultconditions; r
h. Exposes he child to biologicalagentssuch as bacteria, fungi, viruses,protozoans, nematodes and otherparasites;or i
i. InVolveshe manufacture r handling,of
.explosives and other pyrotechnicproducts.
Access to Education and Training forWorking Children
No child shall be deprived of FORMAL ORNON-FORMAL EDUCATION. n all cases ofemployment allowed in this Act, theEMPLOYER hall providea workingchildwithaccess o at leastPRIMARYand SECONDARYEDUCATION.
Prohibition on the Employment of Childrenin Certain AdvertisementsNo child shall be employed,psa model in anyadvertisement, irectly or iiiUirectly,promoting
a coholicbeverages,ntoxicati g drinks, obaccoand its by-products,gambling or any form ofviolence r pornography.
TRUSTFUNDFROMFINESAND PENALTIESThe fine imposedby the court shall be treatedas a Trust Fund, administeredby DOLE anddisbursedexclusively or the needs, indudingthe cost of rehabilitation nd reintegration ntothe mainstream of society of the workingchildrenwho are victims of violationsof this Act.
ant for the programs and projects that willpreventacts of child abor.
WHO MAY FILE A COMPLAINTON CASESOF UNLAWFUL ACTS COMMITTEDAGAINSTCHILDREN Sec.8)1. Offendedparty;2. Parents r guardians;3. Ascendantsor collateral elativeswithin he
third(3'd)degreeof consanguinity;4. Officer,social worker or representative f a
I censedchi d-+aring nstitution;Officeror socialworker of DSWD:.Barangay hairman of the placewhere theviolation occurred, where the child isresidingor employed;orAt least three (3) concerned, responsiblecitizenswhere he violationoccurred.
o-
date of
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$an Eets @ollege f{.sb'2011CENTRALIZEDAROPERATIONS
paid a standard amornt for every pieceor unit of work prodrced that is more or
less regularly reflicated without regardto the time spent in producing he same.
Piece-rde wskers are dassified into'.i. Piece<ate $orkers working inside
the work prenises of the employerand are under he direct supervisionof the employer, hus entitled o 13tnmonthpay and
ii. Piece-+ate workers who work' outside the work premises of the
emfloyer \Yhce hours spent in theperfonnanceof ttpir work cannot beascertained v/ith reasonablecerpl'*y and are not under thedirect superyisionof the employer,thus NOT entitled o 13fr month pay(Labor Congress of the PhilippinesY. NL"C).
b. EmployeesGeneral Rule: All RANK-ANHILEemployees regardless of the amount of
basic salary that they reeive in a month, iftheir employers re not otherwiseexemptedfrom paying the .13h month pay. Suchemployees are entitled to the 13'' monthpay regardless of their designation oremployment tatus, and irrespectiveof themethod by. which their wages are paid,PROVIDED hat they have worked for atleast 1) one monthduringa calendar ear(Revised.Guidelineson the lmplementationof the 1f-Month Pay Law).
Exceptions: (H-CR€)1. Household elpers2. Employeespaid purelyon Qommission
basis3. Employees already Receiving 13th
monthpay4. $overnmentemployees
Note: Part-Umeemployees are entitledto13t monthpay.
. r " . 1 : r - 1 . , . , , y . : , - i 1 r. ' ; '
1 . . , \ i ' ; " , i ' .: ' ; ' . ' ' r i 1 : r . - . r . . r
Manageribl employees may receive 13nmonth pay if such payment has been acompanypractice.
Time of Payment'
Shall be paid not later than December 24 ofeach year. An employer, however, may give tohis employees ne half (112) f the required13'month pay before the opening of the regularschool year and the other half on or beforeDecember.24of every year. The frequency ofpayment may be subjectto agreement betweenemployerandthe collectivebargainingagent ofthe employees.
Nonlnclusion in RegularWage
The benefitsgranted under this issuanceshall
not be creditedas part of the regularwage ofthe employees for purposes of determining
overtimeand premiumpay, fringe benefits,as
well as oremium contributions o the State
lnsuranceFund, social security,Medicareand
privatewelfareand retirementplans.
Rules on CertainTypes of Employees
1 . Employees Paid bY Rpults
Employeespaid on piecework basisare by
law entitled o the 13thmonth.pay.
Employeespaida fixed or guaranteedwage
olus commissionare also entitled to the
mandated13th month pay, based on their
total earningsduring he calendaryear, i-e.'
on both their fixed or guaranteedwage and
commission.
Those with MultiPleEmPloYers
Governmentemployeesworking part time in
a p'rivate enterprise, including private
educational institutions, as well asemployeesworking in two or more private
firms,whetheron full or part time basis,are
entitled o the required13thmonthpay from
all their prtvate employers regardless of
their total earningsfrom each oi' all their
employers.
Private School Teachers
Private school teachers, induding faculty
membersof universitiesand colleges,are
entitled to the required 13th month pay'
regardless of the number of months they
teich or are paidwithina year; if they have
renderedseryice or at least one (1) month
withina year.
4. Resignedorlf resigned
Generalonly inwork;servicethe worker
2.
before
[2005]).
L67
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LABORAW
SOCIALEGISLATION
earnd are entiiled o 13hmonth pay OasLO-cn
PilL earninss- (phitippine
'esiiittriu,r
vommercial and lndustrial Workers -Unionv.
NLRC,247 SCRA 256, 1sssl)
Adjudication of Glaims, Non-paymentof 13frmonthpay shall be treated
as money c/ams cases.
ll:te;jiff_eTnceof opinion,onhow to compute
:1,y,i
.monrnpay is non_strikeable nd asrflKenetd on that qround is illegal(tsalamaMachine Works Corplv. NLRC,
ngiin14thMonth payThe granting of 14dn month pay is a
llT:g:i9.t ,prerosativend is noi legatryoemanctable.t is basicallya bonus
"nii,gratuitousn nature Kanayapoini-uiiit ,.
NLRC,[1989]
39nt1ory Emptoyees ho are paid aguaranteedminimum wage or commissionsthe country of destination of the misrantworkers, NO permit for deploymentshaii be,.":u9d. y the philippineOverseasEmploymentAdministrationpOEA).The members of the pOEA governingboardwno actuallyvoted n favor of an order ttowingthe.deployment f migrantworkerswithoutanyof the aforementioned uaranteesshall sufferthe penalties of removal or dismissal fromservice with disqualiflcation to hold anvappointive ublicoffice or5 years.
The State shall also allow thddeployment ofoverseas Filipino workers to:
1. Vessels navigating he foreign seas or tolnstallations ocated offshore or on highseas whose ownervemployers arecompliant with international laws and -standards hat protect he rightsof migrantworkers.
2. Companies and contractors withinternational operations: provide4, Thatthey , are compliant with standardsconditionsand requirements, s embodieJirrthe ernployment ontractsprescribedbvthe POEA and
in accordance withinternationall-accepted tandards.
Terminationor Ban on DeploymentIn pursuit f the NATIONALNTEREST r whenPUBLIC WELFARE so requires, he pOEAGoverning Board, after consultaiionwitn ineOepartment f ForeignAffairs,may,at any ime,terminate r impose banon the depoymentoimigiantworkers.
lllegal.Recruitment (See Arf. 3AJ(CEC_TUH_PRP-A)
DEFINITION F TERMS
Overseas Filipino WorkerHersonwho is to be engaged, is engaged or1T-b"9n 9?SaSedn a remunerated c'tivilvlnastate of which he or she is not a citiz;;';;'"n
::1r1 1vesse navigating tne ro eig 's;;; ;;"r.rnana governmentshipused or mlilt"ryot.non_
::Ilgr"i9l.purposes or on an instatration
pg1 g offshoreor on the high seis; i" O" r""oINTERCHANGEABLY witn UlenarrrrWORKER.
Deployment of Migrant WorkersI he State shall deploy overseas Filipinoworkers only in countrieswhere the rignil :otFilipino migrant workers are protected. The11t:-.lg arerecognizeos a gr;a;;t";;" il" .1I _ol
h"_l:ceivi
g country oitne prot"Jionorgvelnas Fitipinoworkersir-C$ttilt ,.,- , .
'
1.
. lt"q.
existingtaoor andsociat Laws., pd1llg therights f migrantwork"rs-"
z. tr ts. stgnatoryo multilateralonveniionsdeclarationsr resolution. "f"ting-io h-;
^protectionf migrant orkers;
r. rr has concluded .bilateral{greementorarrangement with the-government
l:oL"^"lnSthe rights of oversjas iiripino
worKers; nd4. lt is takingpositive,concrete[easures toprotectherightsof migrantwofters.
-- --
_oh,.'.T he_ bsence f .a clearshowinghatanyof the aforementioneduarantees xists n169 )
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Sffi Eels 6ottege of Lsto
2011 CENTRALIZEDAROPERATIONS
or'to make a worker pay or acknowledgeany amount greater than that actuailyreceivedby him as a loan or advance;
2. To furnish or publishany false notice orinformation or document in relation torecruitment r employment;
3. To give any false notice, testimony,informationor documentor commit any actof misrepresentation for the purpose ofsecuring a license or authority under heLabor Code, or for the purpose ofdocumentinghired wokers with the POEA,
.which include the act of reprocessingworkers hrough a job order hat pertains o
nonexistentwork, work different from theactual overseas work, or work with adifferent employer whether registeredor notwith the POEA
4. To induce or attem$ to induce a workeralreadyemployed o quit his employment norder to offer him another unless thetransfer
'sdesigned to liberate a worker
from oppessive terms and conditions oiemployment;
5. To influence or attempt to influence anyperson or entity not to employ any worke:
who has not applied for employmenithrough his agency or who has forme.;joined or supported,or has contactedcrsupported by any union or workersorganization,
6. To engage n the recruitmentor placemi''-'of workeri in jobs harmful to publichea:rr,or moralityor to the dignityof the Repi:l,rof the Philippines;
7. To fail to submit reports on the status ctemployment, placement vacancir.s
remittance of foreign exchange earningrseparation rom jobs, departuresand siirt-iother matters or information as ffi?) l;i:required by tlie Secretary of Labor a:rcEmployment;
8. To substitute or alter to the prejudice :'the worker, employmentcontracts appro 'e,:,
. and verified by the Department of Laborand Employment rom the time of actuasigning thereof by the parties up to an':
.includingthe_perio{ of lhe expirafion of th*same withont the approval of thr
Department f Laborand Employment;9. For an officer or agent of a recruitmento'
placementagencyto become an officer ormember of the Board of any corporatior.engaged n travel agencyor.to be engagecdirectlyor indirectly n the management >itravelagency; ,,
10. To withhold or deny travel documentsfrom applicantworkers before departuref*rmonetaryor financialconsiderations, r forany other reasons, other than thosr
. authorized under the Labor Code and it$implementingulesand regulations;
11. Failure to actually deploy a contracted
worker Wthout valid reasonas determinedby the DePartment of Labor and
Employment;12. Failure to reimburse expenses incurred
by the worker in connection with his
documentation nd processingor purposes
of deployment, in cases where the
deploymentdoes not actually ake place
without he worker's ault. lllegal ecruitment
when committedby a syndicateor in large
scale shall bs. considered an offense
involvingeconomicsafbotage; nd
13. To allow a non-Filipino citizen to head or
manage a licensed recruitmenVmannirgagency.(See Sec. 6 of RA 8042)
ln aCdition to the acts enumerated above' it
shall atso be unlaMul fot any person or
entity to commit the follouving prohibibd
acts:1. Grant a loan to an overseasFilipiro worker
with interest EXCEEDING eight percent
(8%) pgr annum, which will be used for
baymeni of legal and allowableplacement
ie& and make the migrant worker issue,
either personallyor through a guarantororaccommodation party, postdated checks in
relation o the said loan;
2. lmpose a .compulsory and exclusive
arrangementwhereby an overseasFilipino
worker is required to avail of a loan only
from specificalty designated institutions'
entitiesor Persons;3. Refuse to condone or renegotiate a toan
incurredby an overseas Filipinoworker after
the latter's employment contract has been
prematurely terminated through no fault of
his or her orvn:4. lmpose a -compulsory and exclusive
arrangementwhereby an overseasFlllplno
workJr is required to undergo health
examinationsdesignated
es or
princi
o.
7.
Foragencyactivityworkers'For a. 9 r a
pass on the
from speciflcailY
69
foreign Princi
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$ar Eela @ollege f LstD
2011CENTRALIZEDAROPERATIONS
officers, irectors, r partners hall.beointlyandSOLIDARILYiablewith he agency.
2. POEARetains ORIcINAL and EXCLUSIVEjurisdictiono hearanddecide:a. All cases which are administrative n
character, involving or arising out ofviolations of rules and regulationsrelating o licensingand registration frecruitment nd employment genciesor entities;and
b. Disciplinay action cases and other
specialcases,which are administrativein character, involving employers,principals, contracting partners andFilipinomigrant orkers.
Venue: POEAAdjudicationOfficeof DOLEor POEARegionalOfficeof the placewherethe complainant ppliecl r \ /as recruiteC, tthe OPTIONOF THECOMPLAINANT.
3. RTC
Criminal action arising from illegalrecruitmentshall be filed with the RTC ofthe provinceor city where the offensewascommitted or where the offended partyactually resides at the time of thecommission f the offense.The courtwherethe criminal ction s first i ledshallacouirejurisdictiono the exclusion f othercourts.
Effects of Termination of Overseas
,Employment WTHOUT Just, Valid orAuthorized CauseThe worker shall be entitled to the fullreimbursementof his placement ee and thedeductions made with interest at 12o/oplannum, plus his salaries for the unexpiredportionof his employmentcontractor for threemonths for every year of the unexpired erm,whichever s less. Sec. 10 ot RA 8042)
Note: The phrase, "plus his salaries for theunexpiredportionof his employment ontractorfor three months or everyyear of the unexpiredterm,',whichever'.is'fess' ias already.beendeclared UNCONSTITT|ONAL in Serrano ys.
Gallant Maritime Serylces, lnc. (C.R. No.167614, March 24, 20O9), or being violative ofthe equalprotection lauseand he due processclauseof the Constitution.This means that anOFW who is illegallydismissed rom work isnow entitled o monetary benefitsequal to hisbasic salary multipliedby the entire unexpiredportionof
his employmentcontract.IN CaSe of a FINAL AND EXECUTORYJUDGMENT against a foreign
from participating n the PhilippineOverseas
EmploymentProgram and from recruitingand
hiring Filipinoworkers until and unless t fullysatisfies he udgmentaward.
RepatriationGeneral Rule: (Sec. 15)Repatriationof the worker and the transportof
his personal belongingsshall be the primary
responsibility f the agency,which recruitedor
deployed he worker overseas The repatnation
of remains and transoort of the personal
belongingsof a decease?worker and all costs
attendant heretoshall be borneby the pnnctpaand/or he local agency.
Exceptions:1. lf the termination f emdoyment ts due sole
to the fault of the worker. the principaU
employer r agency hallnd in anymannerbe responsible for the repotriation of the
formerand/prhis belongings; nd2. In cases of war, epridemiq disaster or
calamities,naturalor man-made,and other
sirnilarevents, and where the principalorrecruitment gencycannotbe identified,he
Overseas Workers Welfare Administration(OWWA), in coordinationwith appropriate
internationalgencies, hall ake chargeof
the repatriation.
Mandatory Repatriationof Underage Migrant
Workers (Sec.16)Upon discovery or being informed of thepresenceof migrant workers whose ages fall
below the minimum age requirement foroverseasdeployment,he responsible fficers n
the foreign seryice shall WITHOUT DELAY
REPATRIATE said workers and advise the
Department of Foreign Affairs through the
fastest means of communicationavailaHe of
suchdiscoveryand other relevant nformation.
lq500,
theby
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LABORLAW
SOCIAL EGISLATION
the mandatoryrepatriationas provided for inthisAct.
National Reintegration Center for OverseasFilipinoWorkersA National ReintegrationCenter for OverseasFilipinoworkers (NRCO) s herebycreated nthe Departmentof Labor and Employment orreturning Filipino migrant workers which shallprovidea mechanism or their reintegrationntothe Philippine society, serve as a promotionhouse or their ocalemployment, nd tap theirskil lsand potentialsor natonaldevelopment.
Policy of the State (PEDEAA)1. Affirm he roleof women n nationbuilding;2. Ensure the substantiveequalityof women
andmen;3. Eromote empowerment of women and
pursueequalopportunitiesor women;4. lnsure equal access to resources and to
development esultsand outcome:
5. {bolish the unequal structures anopracticeshat perpetuate iscrimination ndinequalities;
6. Qevelop plans,' policies, programs,measures, and mechanisms to addressdiscrimination and inequality in theeconomic,political,social, and cultural ifeof womenand men
Principles of Human and Rights of Women(ut1
Human ights re:1. Universal nd nalienable;2. lndivisible;3. lnherent to the dignity of every human
being;4. lnterdependent nd interrelated.
DEFINITION F TERMS
Women Empowerment - provisionsof the lawmaking opportunities, ervicesand observance
of human rights available and accessible owomen. These enablewomtn'to'participate tothe political, economic, social and bulturaldevelopment f the nation.
DiscriminationAgainst Women - (GAFI)1 Any Gender-basd distindion, exclusibn, orrestriction which impairs the exerclses bvwomen of human rights and fundamentjlfreedoms; .2..Aly.Ad or ornlssron,ncludingby law; policy,administrativemeasure,
or pradice, that directiyor indirectfyexcludesor re,stids women in therecognitionand promotion of their rights andtheir access to and enjoyment of opportunities,
3. When a measure or practice of generalappfcation fails to provide for mechanisms o
orTset or address sex or gender-baseddisadvantages or limitations of women, orwomen, more than men, are shown to havesuffered the greater adverse effects of thosemeasuresor oractices.4. Discrimination lntersecting with orcompounded by other grounds, status, orcondition,such as ethnicity, age, poverty, orreligion.
Marginalization a conditiondVhere whole
categoryof people s excluded rom usefulandmeaningful articipationn political, conomigsocialandculturalife.
Marginalized - refers to the disadvantaged rvulnerablepersonsor groups, who are mostlyliving n povertyand have little or no access oland and other resources, basic social andeconomic ervi€s.
These include,but are not limited o, women in
the t6itowing[ ectors and groups: (SFU-WWM-rMc-sDs)1. $mallFarmers nd RuralWorkers2. fisherfolk3. lrban Poor4. Workers n the FormalEconomy5. Workers n the InformalEconomy6. MigrantWorkers7. lndigenous eoples8. SoroL Qhildren
10. SeniorCitizens11. Disabled erson12. Solo Parents
Substantive Equality - full and equalenjoyment of rights and freedoms. ltencompassesde ure and de facfo equality andalsoequality n outcomes.
Gender for making
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Ssx EeDs@ollegef Asb
2OI1CENTRALIZEDAROPERATIONS
womenand men benefitequallyand inequalityis not perpetuated.
Temporary Special Measures - measuresaimed at accelerating he de facto equalityofwomenandmen.
/Vofe; t is temporaryonly. The measuresshallbe abolished nceequalitys achieved.
Violence Against Women - any act of gender-based violence that results in, or is likely toresult n, physical, exual,or psychological armor suffering o women, ncluding hreatsof such
acts, coercion,or arbitrarydeprivation f liberty.whether occuning n publicor in private ife. ltincludespphysical,sexual, psychotogical, ndeconomic iolenceoccuning n the family withinthe general community, perpetrated orcondonedby the Sfafe,wherever t occurs:anoRA 9208and 9262.
Women in the Military - women in the militarywhether performingcombat ancl/ornoncombatfunctions.
Social Protection- policies and programsreducing poverty and vulnerability aimed atenhancing the social status and rights of allwomen.
HUMANRIGHTSOF WOMENAll rights in' the Constitution and underinternational instruments duly signed andratifiedby the Philippines.
Riglts of EveryWoman to: (VEEDDS-HSMD)
1. Protection from all forms of Violence.includinghosecommittedby the State;2. lqual treatment before the law, including
the State's review and when necessaryamendmentor repeal of existing aws thjtare discriminatoryo women
3. Equal access and elimination ofdiscrimination gainstwomen in fducation,scholarships nd training.
4. Protectionand security n times of Disaster,calamitiesand otheF-qrisis i{uatiors; .
5. Participation nd equitable epresentation fwomen in the Qecision-making nd policy-makingprocesses,
6. Participation f women and girl-children ncompetitiveand noncompetitivegports
7. Comprehensive, culture-sensitive, andgender-responsive Health services andprograms covering all stages of a woman,slife cycle and which addresses the majorcausesof women'smortalityand morbidity
8. Women in the gilitary, police, and othersimilar seryicesshall be providedwith the
same right o employmentas men on equalcondit ions
9. Nondiscriminatory and nonderogatoryportrayal f women n $edia and film
'10. Equal rights in all matters relating to
$arriage and family relations
RIGHTSOF WOMEN N THE MARGINALIZEDSECTORS FHEW-CRISP-WeGs)To guarantee al civil, potitical, social, andeconomic ights recognized, promoted, andproteded under existing laws.1. food security and resources for food
production, nclu{ing-. qual r ights in thetitling of the lan# and issuance ofstewardship ontractsand patents;
2. Localized, accessible, secure andaffordableHousing;
3. lducation, livelihood, credit, capital and'
technology;4. Decent[ork, skills, raining,scholarships;5. Recoghition and preservationof Qultural
identityand integrity not discrirninatory owomen;
6. Representation nd participation n policy-
makingor decision-mak ing odies;1. Access o lnformation egardingpolicieson
women, including programs, projects andfundingoutlays hat atfect hem;
8. $ocial protection;9. leace and development;10. Services and interventions or women in
especialty ifficultcircumstances r WEDC;11. Protectionof Girl-childrenagainstall forms
of discrimination n education, health and' nutrition, nd skillsdevelopment; nd12. Protection f women$enior citizens.
Women in Especially Difficttlt Circumstances
- (WEDC) victims and survivors of sexual andphysicalabuse, illegal recruitment,prostitution,
trafficking,armed conflict,women in detention,victims and survivorsof rape and incest.
National Commission of Filipino
last12
Benefit:her
women
Women inAcf (Republic
Women (
Note: Filipredude tremediesany of thethose recently
and children
surgery
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LABORLAW
SOCIALEGISLATION
Act No. 7192), the Speaa/ protedion ofChildren Against Child Abuse, Exploitation andDisciminationAcf (RepubticAct No. 7610). he
Anti-SexualHarassmentAct of 1995(RepublicAct No. 7877), the Anti-RapeLaw of 1997(Republic Act No. 8353), the Rape VictimAssisfanceand Protection Act of 1998 RepublicAct No. 8505), the Anti-Traff,cking n personsAct of 2@3 (RepublicAct No. 9208) and theAnti- Violence Again$. Women atnd TheirChildrenAct of 2004 (RepubticAct No. 9262). fviolencehas been proven o be perpetratedbyagentsof the State ncluding,but not limited o,extrajudicialkillings,enforced disappearances,torture,and internaldisplacements, uch shallbe considered aggravating offenses withcorresponding penalties depending on theseverityof the offenses.
APPLICABILITY:Personswithdisabilitywho are Filipino itizens
Persons with Disability
Those suffering from restriction or differentdisabilities, s a result of a mental,physicalorsensory mpairment,o performan activitv n themanneror within he rangeconsidered ormalfor a humanbeing
Proof for entiflement to privileges:1. ldentificationCard issued Oy tne mayor or
barangay captain where the diiabledperson esides;
2. Passport;or3. Transportation
discount fare lD issued bvNationalCouncil or the Welfareof DisabledPersons NCWDp).
PRIVILEGES ND INCENTIVES
A. Of Persons with Disability: (20-SEGE)
1. At least20%discount or the exclusiveuseor.qnjoymentof personswith disabilityrom:(Ha ejQ) .a.' lotel and' similar )oOging services,
restaurantsand recreationcenters:b. {dmission fees from theater, cinema,
concerthalls and other placeof culture,leisureand amusement;Prrchaseof Medicinesn all drugstores;Medical and dental seMces in allgovernm"ent facilities, and privatehospitals and , medical facilities(including professional ees of doctors)subject to DOH and pHtLHEALTt-iguidelines;
e. Qomestic air and sea travel,..publicrailways,skywaysand bgs fares
2. Special discounts n special programsonpurchaseof basic commoditiessubject toDTI andDA guidelines;
3. lducational assistance, as well asvocational r technicaleducation,n publicand private schools through scholarships,grants, financial aids and other incentives,including support for books, learningmaterialanduniformallot/ance:
4. Qontinuanceof the SSS, GSIS and PAG-lBlG beneflts; nd
5. Provision f fxpress lanes n all commercialandgovernment stablishrnents;n absencethereof,priority hall be given o them.
Non-Entitlementof Privileges:The privileges may not be claimed if the
personswith dlsabilityclaims a higherdiscountas may be granted by the commercialestablishment nd/or under other existing awsor in combinationwith otherdiscountprogram.
B. lndividual Persons Caring for and Livingwith Personswith Disability.
Persens with disability shall be treated asdependents under Sec 35(A) of the National
lnternatRevenueCode, and as such, individualtaxpayerscaring or them shall be accorded heprivileges rantedby the code insofaras havingdependents under the same section areconcemeo.
C. Individuals or Nongovernmentallnstitutions establishing Hornes, ResidentialComrnunities or Retirement Villages solelyto suit the needs of Persons with Disability:{HR)
1. Realty tax Holiday for the first 5 years ofoperation; nd
2. Priority in buildingand/or maintenanceofprovincial or municipal Roads leading tosaidhomes.
d .
writing
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5an frebs @olbqeof lalr
2OT CENTRALIZEDAROPERATIONS
2, Delitrerancefrom VilificationNo indMdual, group or communityshall
executeany of these acts of ridiculeagainstpersonswith disability n any time and placewhich could intimidateor result in loss ofself-esteemof the latter-
Vilification (1) any utterance ofslanderous and abusive statementsagainsta person with disability; or (2) adivity inpublic whictr incites hatred towards serious
. contem$ for, or severe ridicule of personswith disabilig-
0i ' , t l . l