Memory Aid - LABOR

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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAWAny form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE

CHAPTER IGENERAL PROVISIONS

ART 1. NAME OF DECREE

LABOR LEGISLATION - Consists of statutes, regulations and jurisprudencegoverning the relations between capital andlabor, by providing for certain standards of terms

and conditions of employment or providing alegal framework within which these terms andconditions and the employment relationship maybe negotiated, adjusted and administered. It isdivided into labor standards and labor relations.

LABOR STANDARDS - Are the minimumrequirements prescribed by existing laws

7.Right to Participate in Policy &Decision-Making Processes affectingtheir rights and benefits as may be

provided by law

RELATED LAWS:

1. CIVIL CODE: see Arts. 1700, 1701and 17032. REVISED PENAL CODE: Art. 2893. OTHERS: SSS Law, GSIS Law, Agrarian

Reform Law, the 13th month pay law, theMagna Carta for Public Health Workers, etc.

RATIONALE :

- The raison d’ etre of labor laws is the POLICEPOWER of the State

ART 3. DECLARATION OF BASIC



SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAWAny form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of thelaboring class.

- Reservation of essential attributes of sovereign power is read into contractsas a postulate of the legal order.

- Courts adopt a liberalapproach that favors the exercise of labor rights. The mandate under Art. 4is simply to resolve doubt, if any, in favor of labor. If there is no doubt inimplementing and interpreting the law,labor will enjoy no built-in advantageand the law will have to be applied as it

is.

MANAGEMENT RIGHTS: (CPST)

C Right to conduct businessP Right to prescribe rulesS Right to select employees

ART 6. APPLICABILITY

AGRICULTURAL OR FARM WORKER -

one employed in an agricultural or farmenterprise and assigned to perform tasks whichare directly related to the agricultural activities of the employer, such as cultivation and tillage of the soil, dairying, growing and harvesting of anyagricultural and horticultural commodities, theraising of livestock or poultry, and any activitiesperformed by a farmer as an incident to or inconjunction with such farming operations.

- There may be in one employer bothagricultural as well as industrial workers.

- PURPOSE of the provision: intended toencourage workers to seek employment inagricultural enterprises instead of migratingto already overcrowded urban areas to find



CHAPTER IIEMANCIPATION OF TENANTS(Note: not included as per SC Memo)

ART 7-11

- Share tenancy has been abolishedplacing in its stead leasehold system.

- Under Art. 8, the land covered by operation

land transfer must be private agriculturalland, tenanted, primarily devoted to riceand/or corn, and more than sevenhectares in are.

Present retention limits: - 5 hectares per landowner and 3 hectares

WORKER -any member of the labor force,whether employed or unemployed

RECRUITMENT AND PLACEMENT - any actof canvassing, enlisting, contracting,transporting, utilizing, hiring or procuringworkers, and includes referrals, contractservices, promising or advertising for employment, locally or abroad, whether for profitor not; PROVIDED, that any person or entitywhich, in any manner, offers or promises for afee employment to two or more persons shall bedeemed engaged in recruitment and placement.(CEC-TUCP) (RCPA)

-The number of persons dealt with is notan essential ingredient of the act of recruitmentand placement of workers. The proviso merelycreates the presumption.

ART 16. PRIVATE RECRUITMENT



involving employers, principals, contractingpartners and Filipino Migrant Workers

JURISDICTION TRANSFERRED TOTHE LABOR ARBITERS OF THE NLRC :

a. claims arising out of an employer-employeerelationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral, exemplary and other forms of damages.

Venue – Money claims or claims for damagesshould be filed before the Regional Arbitration

branch of the NLRC where the complainantresides or where the principal office of therespondent/employer is situated, at the option of the complainant.

Compromise Agreement - Consistent withthe policy encouraging amicable settlement of

valid any agreement to receive lesscompensation than what the worker isentitled to recover.

(MR Yard Crew Union vs. PNR)

ART 18. BAN ON DIRECT-HIRING

Direct hiring of Filipino workers by aforeign employer is not allowed.

EXCEPTIONS :

the members of the diplomatic corps;international organizations;such other employers as may be allowed by the

Department of Labor and employment1. name hirees – individual workers who are

able to secure contracts for overseasemployment on their own efforts andrepresentations without the assistance or participation or any agency



ART 22. MANDATORY REMITTANCEOF FOREIGN EXCHANGE EARNINGS

MANDATORY REMITTANCE

REQUIREMENTS:

1. Seamen or mariners: 80% of the basicsalary;

2. Workers for Filipino Contractors andConstruction Companies: 70% of the basicsalary;

3. Doctors, engineers, teachers, nurses, andother professionals whose employmentcontract provide for lodging facilities: sameas #2

4. All other professionals without board andlodging: 50% of the basic salary;

5. Domestic and other service of workers; 50%of the basic salary.

program and their relatives within the 4th

degree of consanguinity or affinity; or 6. Those whose license has been previously

canceled or revoked.

CHAPTER IIREGULATIONS OF RECRUITMENT

AND PLACEMENT ACTIVITIES

ART 29. NON-TRANSFERABILITY OFLICENSE OR AUTHORITY

- No license or authority shall be used

directly or indirectly by any person other than the one in whose favor it was issuedor at any place other than that stated in thelicense or authority, nor may such license or authority be transferred, conveyed or assigned to any other person or entity.

Li h ld f th it th i



12. Gunrunning or possession of deadlyweapons;

13. Unjust refusal to depart for the worksite after all employment and travel documents havebeen duly approved by the appropriategovernment agency; and

14. Violation of the laws and sacred practices of the host country and unjustified breach of government approved employment contractby a worker.

ART 31. BONDS - Cash bond filed by applicants for license

or authority is not subject to garnishment

by judgment creditor of agency

ART 32. FEES TO BE PAID BYWORKERS

- Suspension or cancellation of licenses mayinclude award of damages to repair the

MISCELLANEOUS PROVISIONS

ART 38. ILLEGAL RECRUITMENT (asper RA 8042 otherwise known as theMigrant Workers’ Act of 1995)

ILLEGAL RECRUITMENT - Any act of canvassing, enlisting, contracting,transporting, utilizing, hiring or procuringworkers and includes referring contractservices, promising or advertising for employment abroad, whether for profit or not when undertaken by a non-licensee

or non-holder of authority.PROVIDED that any such non-licensee

or non-holder of authority who in any manner,offers or promises for a fee employment abroadto two or more persons shall be deemed soengaged. It shall likewise include thecommission of prohibited acts whether committed by a non-licensee or non-holder of authority or a licensee or holder of authority.



F Failure to reimburse expenses incurredby the worker in connection with hisdocumentation and processing for purposes of deployment, in cases wherethe deployment does not actually takeplace without the worker’s fault

THE QUALIFYING CIRCUMSTANCESTHAT WOULD MAKE ILLEGALRECRUITMENT AS A CRIMEINVOLVING ECONOMIC SABOTAGEARE :

When committed by a SYNDICATE i.e., if it iscarried out by a group of three (3) or morepersons conspiring and confederating withone another; or

(a) When committed in a LARGE SCALEi.e., if it is committed against three (3) or more persons

VENUE OF ACTIONS ON ILLEGAL

TITLE IIEMPLOYMENT OF NON-RESIDENT

ALIENS

ART 40. EMPLOYMENT PERMIT OF

NON-RESIDENT ALIENS-Foreigners or domestic and foreign employersdesiring to employ aliens must secureemployment permit from the DOLE upondetermination of the non-availability of a personin the Philippines who is competent, able andwilling at the time of the application to performthe services for which the alien is desired.

- Foreigners may not be employed in certainnationalized business.

- a non-resident alien worker and theemployer shall bind themselves to train at least2 Filipino understudies.

PROHIBITION AGAINST



HUMAN RESOURCESDEVELOPMENT

TITLE INATIONAL MANPOWER

DEVELOPMENT PROGRAM

CHAPTER INATIONAL POLICIES AND

ADMINISTRATIVE MACHINERY FORTHEIR IMPLELENTATION

ART 45. DEFINITIONS

MANPOWER - that portion of the nation’spopulation which has actual or potentialcapability to contribute directly to the productionof goods and services.

ENTREPRENEURSHIP - training for self-

binds himself to train the apprentice and theapprentice in turn accepts the terms of training

ON-THE-JOB TRAINING – the practicalwork experience through actual participation inproductive activities given to or acquired by an

apprentice

HIGHLY TECHNICAL INDUSTRIES – trade,business, enterprise, industry or other activity,which is engaged in the application of advancedtechnology

ART 59. QUALIFICATIONS OFAPPRENTICES

Qualifications of an Apprentice

1. at least 15 years of age; provided thosewho are at least 15 years of age but lessthan eighteen may be eligible for apprenticeship only in non-hazardous



Requisites for tax deductions in caseemployers have apprenticeshipprograms:

1. Program duly recognized by the Departmentof Labor

2. Deduction shall not exceed 10% of directlabor wage

3. Pay his apprentices the minimum wage

ART 72. APPRENTICES WITHOUTCOMPENSATION

Apprentices who may be hired without

compensation:

1.those whose training on the job isrequired by the school;

2.Training Program Curriculum;3.Requisite for Graduation; or 4.A requisite for Board Examination

learner as regular employee if hedesires uponcompletion of learnership

4. In case of pretermination of the apprenticeshipagreement, theworker is notconsidered as aregular employee

4. Learner isconsidered as aregular employeein case of pretermination of contract after 2mos. of trainingand the dismissalis without fault of

learner

5. Highly technicalindustries and onlyin industrialoccupation

5. Semi-skilled /industrialoccupations



TITLE IWORKING CONDITIONS AND REST

PERIODS

CHAPTER I

HOURS OF WORK

ART 82. COVERAGE

ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP:

1. selection and engagement of theemployee

2. the payment of wages3. the power of dismissal4. the employer’s power to control the

employee (with respect to the meansand methods by which the work is tobe accomplished)

MANAGERIAL EMPLOYEES - Refer tothose whose primary duty consists of themanagement of the establishment in whichthey are employed or of a department or subdivision thereof and to other membersof the managerial staff

Note: Definition applies only to the 8-hour Labor law

FIELD PERSONNEL - Refer to non-agricultural employees who regularlyperform their duties away from the principalplace of business or branch office of theemployer and whose actual hours of work

in the field cannot be determined withreasonable certainty.

WORKERS PAID BY RESULTS - Method of computing compensation based on thework completed and not on the time spentin working.



assignments, and failure on the part of theemployees to meet the requirement, imposein good faith, constitutes a just cause for hisdismissal.

- New owner/management group has no

obligation to re-employ workers whofreely and voluntarily accepted their separation pay and other benefits. Achange of ownership in a business concernis not proscribed by law.

ART 83. NORMAL HOURS OF WORK

- Shall not exceed 8 hours in a regular workingday

PURPOSE- to safeguard the health and welfare of the

laborer and in a way to minimizeunemployment by utilizing different shifts

work is with the knowledge of his employer or immediate supervisor

4. The time during which an employee isinactive by reason of interruptions in hiswork beyond his control shall be consideredtime either if the imminence of the

resumption of work requires the employee’spresence at the place of work or if theinterval is too brief to be utilized effectivelyand gainfully in the employee’s own interest.

- Only the maximum is prescribed, not minimum.Part- time work is therefore not prohibited.

ENGAGED TO WAIT - when waiting is an

integral part of the job, it is compensable

WAITING TO BE ENGAGED - idle time is notworking time, not compensable

WHEN TRAVEL TIME



than twenty (20) minutes an must be with fullpay.

3. If less than twenty(20) minutes, it becomesonly a rest period and is thus considered aswork time

NOTE: Employee must be completelyrelieved from duty. Otherwise, it iscompensable as hours worked.

- Mealtime is not compensable EXCEPT incases where the lunch period or meal time ispredominantly spent for the employer’sbenefit or where it is less than 60minutes.

- Employees may request that their mealperiod be shortened so that they can leavework earlier that the previously establishedschedule.

REQUISITES :

ART 87. OVERTIME WORK

OVERTIME PAY - Additional compensationfor work performed beyond eight (8) hourswithin the worker’s 24-hour workday.

30% of 130% if on a special holiday/rest day1. 25% of regular wage if done on a regular

workday2. 30% of 150% if on special holiday AND rest

day3. 30% of 200% if on a regular holiday

RATIONALE- employee is given OT pay because he is made

to work longer than what is commensurate withhis agreed compensation for the statutorily fixedor voluntarily agreed hours of labor he issupposed to do.

- As a rule, cannot be waived, as i t i sintended to benefit laborers and employees.



1. When the waiver stipulates higher paymentor rate of OT pay; or

2. Where the contract of employment requireswork for more than eight hours of work atspecified wage per day providing for a fixedhourly rate or that the daily wages include

overtime pay.

COMPRESSED WORKWEEK -allowableunder the following conditions:1. It is voluntary on the part of the worker 2. There will be no diminution of the weekly or

monthly take-home pay and fringe benefitsof the employees;

3. The value of the benefits that will accrue to

the employees under the proposed scheduleis more than or at least commensurate withthe one-hour OT pay that is due them duringweekdays based on the employee’squantification

4. The one-hour OT pay will become due andpayable if they are made or permitted to

k d t h d l d f k th

W 1. Country is at war or any other national/local emergency has beendeclared by the Chief Executive/Congress

N 2. Necessary to prevent loss of

life/property/ in case of actual/impendingemergency in the locality

U 3. There is urgent work to be performedon machines, installations, or equipmentin order to avoid serious loss/damage tothe employer or some other causes of similar nature

N 4. Work is necessary to preventloss/damage to perishable goods; and

C 5. where the completion or continuationof the work started before the eighthhour is necessary to prevent seriousobstruction or prejudice to the businessor operations of the employer.

N 6. when it is necessary to avail of favorable weather or environmental

diti h f lit



1. In case of actual or impending emergenciescaused by serious accident, fire, floodtyphoon, earthquake epidemic or other disaster or calamity, to prevent loss of life or property or in cases of force majeure or imminent danger to public safety

2. urgent work to be performed on themachinery, equipment or installation to avoidserious loss which the employer wouldotherwise suffer

3. abnormal pressure of work due to specialcircumstances, where the employer cannotordinarily be expected to resort to other measures

4. prevent serious loss of perishable goods

5. nature of work requires continuous operationfor seven days a week6. work is necessary to avail of favorable

weather or environmental conditions whereperformance or quality of work dependsupon them

ART 93 COMPENSATION FOR REST

ART 94. RIGHT TO HOLIDAY PAY

HOLIDAY PAY - A day’s pay given by law toan employee even if he does not work on aregular holiday. It is limited to the ten (10)regular holidays listed by law.

- employee should not have been absentwithout pay on the working day preceding theregular holiday

Art. 94(b) refers to regular holidays, specialholidays are taken care of under Art. 93.

PREMIUM PAY - Additional compensation for work performed on a scheduled rest day or

holiday.

REGULAR HOLIDAYS:

1. New Year’s Day -January 12. Maundy Thursday -Movable date3. Good Friday- Movable date



if unworked subjectto certain conditions

unworked

- limited to the 10enumerated by theLC

- not exclusive sincelaw may provide for other special

holidays

- rate is twice theregular rate if worked

- rate is 130% if worked

ART 95. RIGHT TO SERVICEINCENTIVE LEAVE

SERVICE INCENTIVE LEAVE (SIL) - Five (5)days leave with pay for every employeewho has rendered at least one (1) year of service.

BUT DOES NOT APPLY TO THOSE

considered integrated in their wages onthe basis of the average monthly share of each employee for the past 12 monthsimmediately preceding the abolition.

TITLE IIWAGES

CHAPTER IPRELIMINARY MATTERS

ART 97. DEFINITION

WAGE - the remuneration or earnings,however designated, capable of beingexpressed in terms of money, whether fixedor ascertained on a time, task, piece, or commission basis or other method or calculating the same, which is payable byan employer to an employee under a



- Are items of expense necessaryfor the laborer’s andhis family’sexistence and

subsistence

- Constitute extraremuneration or special privileges or benefits given to or received by the

laborers over andabove their ordinaryearnings wages

- part of the wage - independent of thewage

- deductible from thewage

- not wagedeductible

ART. 98. APPLICATION OF TITLE

This Title shall not apply to thefollowing:

1. household or domestic helpers

3. It is not due to an error in theconstruction /application of a doubtful or difficult question of law.

- But even in cases of error, it should beshown that the correction is being done

soon after the discovery of the error.

BONUS - A supplement or employmentbenefit given under certain conditions, suchas success of the business or greater production or output. As a rule, it is anamount granted voluntarily to an employeefor his industry and loyalty whichcontributed to the success and realization

of profits of the employer’s business.Therefore, from a legal point of view, it isnot a demandable and enforceableobligation. Unless, it was promised to begiven without any conditions imposed for itspayment, as such, it is deemed part of thewage.



CATEGORIES OF PIECE-RATEWORKERS:

1. those who are paid piece rates asprescribed in Piece Rate Orders by theDOLE

2. Those who are paid output rates which areprescribed by the employer and are not yetapproved by the DOLE

WORKERS PAID ON PIECE-RATE BASIS -shall refer to those who are paid a standardamount for every piece or unit of work producedthat is more or less regularly replicated, withoutregard to the time spent in producing the same.

BENEFITS PAYABLE TO PIECE-RATEWORKERS:

1. Applicable statutory minimum daily rate;2. Yearly service incentive leave of five days

with pay;

ART 103. TIME OF PAYMENT

WHEN TO PAY:- at least once every two (2) weeks or twice a

month at intervals not exceeding sixteen(16) days

- force majeure or other circumstances beyond theemployer’s control, payment must bemade immediately after such occurrence

have ceased.

ART.104. PLACE OF PAYMENT

WHERE TO PAY:- Shall be made at or near the place of

undertaking,

EXCEPTIONS:

1 When payment cannot be effected at or near



- wages shall be paid directly to the workersto whom they are due.

EXCEPTIONS:a. in case of force majeure/special

circumstances, payment may be made

through another person under writtenauthority where the worker has died, the

b. employer may pay the wages of thedeceased worker to the heirs of the latter,through the Secretary of Labor or hisrepresentative, without the necessity of intestate proceedings, after the heirs haveexecuted an affidavit attesting to their relationship to the deceased and the fact

that they are his heirs to the exclusion of allothers

ART 106. CONTRACTOR ORSUBCONTRACTOR

LABOR ONLY CONTRACTING - where the

standards, free exercise of the right to self-organization, security of tenure and socialand welfare benefits.

- Substantial capital need not be coupledwith investment in tools or equipment.

This is clear from the use of the conjunction“or”.

JOBCONTRA

CTING

LABOR ONLYCONTRACTING

1. No E- Erelationship existbetween

l d h

1. Employer is treatedas direct employer of the person

i d i ll



scheme of the Civil Code to tax claims of thegovernment.

- just a preference, must yield to specialpreferred credit, e.g. secured creditors

- The formal declaration of insolvency or bankruptcy or a judicial liquidation of theemployer’s business is a condition sinequa non to the operation of the preferenceaccorded to workers under Art. 110.

CHAPTER IVPROHIBITIONS REGARDING WAGES

ART 112. NON-INTERFERENCE INDISPOSAL OF WAGES

In relation to the Civil Code:

Art 1705 The laborer’s wages shall be paid in

ART 113. WAGE DEDUCTION

ALLOWABLE DEDUCTIONS:

WITH EMPLOYEES CONSENT:

1. SSS Payments2. MEDICARE3. Contributions to PAG-IBIG Funds4. value of meals and others5. payments to third persons with employees

consent6. deduction of absences

W/OUT EMPLOYEES CONSENT:

1. Worker’s insurance acquired by the employer 2. Union Dues, where the right to check-off has

been recognized by the employer 3. Cases where the employer is authorized by

law or regulations issued by the Secretary of Labor



1. Regional Tripartite Wages and ProductivityBoard

2. Congress

MINIMUM WAGE - The lowest wage rate fixed

by law that an employer can pay hisemployees.

ART. 123 WAGE ORDER

WAGE ORDER – an order issued by theRegional Board whenever the conditions in theregion so warrant after investigating andstudying all pertinent facts and based on the

standards and criteria prescribed by the LC, theRegional Board proceeds to determine whether to issue the same or not.

EFFECTIVITY of a wage Order – it shall takeeffect after 15 days from the its completepublication in at least one newspaper of general

distinctions embodied in such wage structurebased on skills, length of service or other logicalbases of differentiation.

CORRECTING WAGE DISTORTION

Unionized Establishment

1. Negotiate to correct the distortion.2. Any dispute arising therefrom should be

resolved through grievance procedure under their CBA.

3. If the dispute remains unresolved, throughvoluntary arbitration.

Establishments without Unions

1. The employers and workers shall endeavor to correct the distortion.

2. Any dispute arising therefrom shall besettled through the NCMB and

3. If it remains unresolved after 10 days of f C



REQUISITES :

1. The claim is presented by an employee or person employed in domestic or householdservice or househelper;

2. The claim arises from employer-employee

relations;3. The claimant does not seek reinstatement;

and4. The aggregate money claim of each

employee or househelper does not exceedP5, 000.00

- Access to employer’s records andpremises

→ the day/night whenever work is beingundertaken therein

→ includes the right to copy therefrom,to question any employee & investigateany fact, condition or matter which maybe necessary to determine violations or which may aid in the enforcement of the

1. Visitorial andenforcementpower of theSecretary of Labor /his duly

authorizedrepresentativesexercised throughroutineinspections of establishments

1. Power of theRegional Director or any duly authorizedhearing officers tohear and decide

matters involvingthe recovery of wages, uponcomplaint of anyinterested party

2. requires theexistence of E-E

Relationship

2. E-E relationship notnecessary since it

should not include aclaim for reinstatement

3. No limit as toamount of claim

3. Aggregate claim of each complainantdoes not exceed



ART 131. EXCEPTIONS

1. Actual/Impending Emergenciescaused by serious accident, flood,typhoon, epidemic or other disasters or calamity, to prevent loss of life or

property, or in cases of force majeure or imminent danger to public safety

2. Urgent work to be performed onmachineries, equipment or installation, toavoid serious loss

3. Work is necessary to prevent serious loss of perishable goods

4. Where she holds a responsible position of managerial/technical nature/engaged to

provide health and welfare service5. Nature of the work requires the manual skilland dexterity of women workers & cannot beperformed with equal efficiency by maleworkers

6. Where women workers are immediate familymembers of the family operating the

1. Employee notified her employer of her pregnancy of the probable date of her childbirth

2. Full payment be advanced by the employer within 30 days from the filing of the maternity

leave application3. That payment of daily maternity benefits

shall be a bar to the recovery of sicknessbenefits

4. That the maternity benefits shall be paidonly for the first four (4) deliveries or miscarriages

5. That the SSS shall immediately reimbursethe employer of 100% of the amount of

maternity benefits advanced to theemployee by the employer 6. That if an employee member should give

birth or suffer a miscarriage without therequired contributions having been remittedfor her by her employer to the SSS, or without the latter having been previously

f f f



CONDITIONS :

1. he is an employee at he time of the deliveryof his child;

2. he is cohabiting with his spouse at the timeshe gives birth or suffers a miscarriage;

3. he has applied for paternity leave ; and4. his wife has given birth or suffered a

miscarriage

- Paternity leave, if not availed of, is notconvertible to cash.

WIFE - refers to the lawful wife which means thewoman who is legally married to the male

employee concerned.

- Where the male employee is alreadyenjoying the paternity leave by reason of any law, decree, executive orders or anycontract, agreement or policy betweenemployer and employee and the existing

2. the above acts would impair theemployee’s rights or privileges under existing labor laws or

3. The above acts would result in anintimidating, hostile, or offensiveenvironment (Sec. 3[a], RA No. 7877)

ART 136. STIPULATION AGAINSTMARRIAGE

- it shall be unlawful for an employer to requireas a condition for employment or continuation of employment that a woman employee shall notget married, or to stipulate expressly or tacitlythat upon getting married a woman employee

shall be deemed resigned or separated, or toactually dismiss, discharge, discriminate or otherwise prejudice a woman employee merelyby reason of her marriage.

ART 138. CLASSIFICATION OF



2. Where the child’s employment or participationin public entertainment or information throughcinema, theater, radio, or television is essential,provided that:

a. employment does not involve

advertisements or commercialspromoting alcoholic beverages,intoxicating drinks, tobacco and its by-products or exhibiting violence;

b. There is a written contract approvedby the DOLE; and

c. The conditions prescribed for theemployment of minors {above stated}are met.

NONHAZARDOUS WORK OR UNDERTAKING

– one where the employee is not exposed to anyrisk which constitutes an imminent danger to hissafety and health.

HAZARDOUS WORKPLACES:

sufficient means in the place where the headof the family lives.

12. at least elementary education13. employment certification

CHAPTER IV

EMPLOYMENT OF HOMEWORKERS

INDUSTRIAL HOMEWORK - a system of production under which work for an employer or contractor is carried out by a homeworker at hishome.

INDUSTRIAL HOMEWORKER - a worker who is engaged in industrial homework

BOOK FOURHEALTH, SAFETY AND SOCIAL

WELFARE BENEFITS

TITLE I



breach of contract or for tort.

WORKMEN’SCOMPENSATION

ACT

EMPLOYEESCOMPENSATION

LAW

1. There is apresumption of compensability

1. no presumption of compensability

2. there is a

presumption of aggravation

2. no presumption of

aggravation

3. there is a need for the employer tocontrovert theclaim within 14

3. no need for theemployer tocontrovert

Conditions for an occupationaldisease and the resulting disability or

death to be compensable :

1. The employee’s work must involve the riskdescribed therein

2. The disease was contracted as a result of the employee’s exposure to the describedrisks;

3. The disease was contracted within a periodof exposure and under such other factors

necessary to contract it;4. There was no notorious negligence on the

part of the employee

DEATH - Loss of life resulting from injuryor sickness



an office order or a locator slip or a pass for official business.

5. DUAL PURPOSE DOCTRINE – allowscompensation where a special trip wouldhave to be made for the employer if the

employee had not combined the service for the employer with his own going or comingtrip.

6. SPECIAL ENGAGEMENT RULE – coversfield trips, outings, intramurals and picnicswhen initiated or sanctioned by the employer

7. POSITIONAL AND LOCAL RISKS

DOCTRINE – If an employee by reason of his duties is exposed to a special or peculiar danger from the elements, that is, onegreater than that to which other persons inthe community are exposed and anunexpected injury occurs, the injury iscompensable

2. Willful intention to injure or kill himself or another;

3. Notorious negligence; or 4. Unless otherwise provided by the LC

NOTORIOUS NEGLIGENCE –deliberate act

of the employee to disregard his own personalsafety.

Is death through suicide compensable ? As a rule NO. However as held in NAESSvs. NLRC, the supreme court ruled that a self inflicted death could be compensable if :

1. by agreement of the parties2. The suicide/death is caused by a work

related or compensable illness or disease.

ART 173. EXTENT OF LIABILITY

- Simultaneous recovery under the Labor C C C



permanent partial loss of the use of any part of his body.

DEATH BENEFITS- The System shall pay to the primary

beneficiaries upon the death of the covered

employee an amount equal to his monthlyincome benefit, plus ten percent thereof for each dependent child, but not exceedingfive, beginning with the youngest andwithout substitution. The income benefitshall be guaranteed for five years.

DEPENDENTS:

1. the legitimate, legitimated, legally adopted or acknowledged natural child who isunmarried, not gainfully employed and notover 21 years of age or over 21 years of age provided that he is incapable of self-support due to a physical or mental defectwhich is congenital or acquired during

LABOR RELATIONS LAW - Concerned withthe stabilization of relations of employer and

employees and seeks to forestall and adjustgrievances through - the encouragement of collective bargaining and the settlement of

labor disputes through conciliation,mediation and arbitration.

- Absent an employer-employee relation,there is no labor relations to speak of.

PARTIES TO LABOR RELATIONSCASES:1. The employee’s organization,

2. management, and3. the public

- The public is always to be considered indisputes between labor and capital, and itahas been held that the rights of the

general public are paramount.



MANAGERIAL EMPLOYEE - is one who is

vested with powers or prerogatives to lay downand execute management policies and /or tohire, transfer, suspend, lay-off, recall, discharge,assign or discipline employees.

SUPERVISORY EMPLOYEES – are thosewho, in the interest of the employer, effectivelyrecommend such managerial actions if theexercise of such authority is not merely routinaryor clerical in nature but requires the use of independent judgment.

WORKER’S ASSOCIATION - any

association of workers organized for the mutualaid and protection of its members or for anylegitimate purpose other than collectivebargaining.

INDEPENDENT UNION - any labor organization operating at the enterprise level

a) organizational right dispute/unfair labor practice (coercion, restraint or interferencein unionization efforts)

b) representation disputesc) bargaining disputes ( refusal to bargain )d) contract administration or personnel policy

disputes (noncompliance with CBAprovisions)e) employment tenure disputesf) ( non regularization of employees)

PARTIES TO A DISPUTE:1. Primary Parties – employer, employees,

union2. Secondary Parties – voluntary arbitrator,

agencies of DOLE (BLR, NLRC, VAC, Sec.Of Labor, Office of the President)

CONSULTATION ON POLICIES OFMANAGEMENT AND OF THE EMPLOYER- What is needed is only consultation or

participation. The employees need not



1. Choice of the Sec. Of Labor comingfrom the public sector

2. labor 3. employer and management sector

QUALIFICATIONS OF THE CHAIRMANAND THE COMMISSIONER

1. must be a member of the Philippine Bar;2. must have been engaged in the practice of

law in the Philippines for at least 15 years;3. must have experience or exposure in

handling labor management relations for atleast 15 years; and

4. preferably a resident of the region where heis to hold office.

- The Chairman and Commissioners of theNLRC are not subject to confirmation by theCommission on Appointments

THE QUALIFICATIONS OF EXECUTIVE

2. Cases decided by the Regional Officesof DOLE in the exercise of itsadjudicatory function under Art 129 of the Labor Code

THE NLRC ONLY SITS EN BANC FOR

PURPOSES OF:

1. promulgating rules and regulationgoverning the hearing and disposition of cases before any of its divisions andregional branches, and

2. formulating policies affecting itsadministration and operations.

- The Commission may only sit en banc for the determination of policies and NOT for purposes of adjudication.

- Petitions for certiorari against decisionsof the NLRC should henceforth be



absence of stenographic notes, the followingcases involving all workers, whether agricultural or non-agricultural:

1, Unfair labor practice cases;2. Termination disputes;

3. If accompanied with a claim for reinstatement, those cases thatworkers may file involving wages,rates of pay, hours of work andother terms and conditions of employment;

4. Claims for actual, moral,exemplary and other forms of damages arising from employer-employee relations;

5. Cases arising from any violationof Art 264 of this Code, includingquestions involving the legality of strikes and lockouts; and

6. Except claims for EmployeesCompensation, Social Security,M di d t it b fit

a. Rule-making power b. Power to issue compulsory

processesc. Power to investigate matters

and hear disputes within its

jurisdictiond. Contempt power e. Power to issue injunctions and

Restraining Orders

REQUISITES BEFORE RESTRAININGORDER/ INJUNCTION MAY ISSUE:

1. filing of a verified petition

2. a hearing after due and personal notice hasbeen served in such manner as theCommission shall direct, to all knownpersons against whom the relief is soughtand also to the Chief Executive or other public officials of the province or city withinwhich the unlawful acts have been



1. The complainant shall allege that, unless aTRO shall be issued without notice, asubstantial and irreparable injury tocomplaint’s property will be unavoidable;

2. There is testimony under oath, sufficient, is

sustained, to justify the Commission inissuing a temporary injunction upon hearingafter notice ;

3. The complainant shall first file anundertaking with adequate security in anamount to be fixed by the Commissionsufficient to recompense those enjoined for any loss, expenses or damage caused bythe improvident or erroneous issuance of such order or injunction, including allreasonable costs, together with areasonable attorney’s fee, and expense of defense against the granting of anyinjunctive relief sought in the sameproceeding and subsequently denied by theCommission; and

O ff

for any information or dateconcerning any matter or question relative to the object of the investigation

ART. 221. TECHNICAL RULES NOT

BINDING AND PRIOR RESORT TOAMICABLE SETTLEMENT

- An amicable settlement of a labor disputeshould be approved by the labor arbiter before whom the case is pending after being satisfied that it was voluntarily enteredby the parties and after having explained tothem the terms and consequences thereof.

PURPOSE: for the employee’s protection for thelabor arbiter before whom the case is pendingwould be in a better position than just any labor arbiter to personally determine the voluntarinessof the agreement and certify its validity.



CHAPTER IIIAPPEAL

ART. 223. APPEAL

GROUNDS FOR APPEAL:

1. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter or Compulsory Arbitrator;

2. If the decision, order or award was securedthrough fraud or coercion, including graftand corruption;

3. If made purely on questions of law;4. If serious errors in the findings of facts are

raised which would cause grave or irreparable damage or injury to theappellant.

PERIODS WITHIN WHICH TO APPEAL:

- Where the employer failed to post a bond toperfect its appeal, the remedy of theemployee is not a petition for mandamus bya motion to dismiss appeal.

- The intention of the lawmakers is to make

the bond an indispensable requisite for theperfection of an appeal by the employer.

- Tardiness of an appeal form the decision of the labor arbiter may be considered as amere procedural lapse.

EXECUTION PENDING APPEAL:- the decision of the labor arbiter ordering the

reinstatement of a dismissed or separatedemployee shall immediately executoryinsofar as the reinstatement aspect isconcerned and the posting of an appealbond by the employer shall not stay suchexecution. There is no need for the arbiter toissue a writ of execution on the



ART 224. EXECUTION OF DECISIONS,ORDER, OR AWARDS

- The decision of the Secretary of Labor, theCommission, the Bureau or RegionalDirector the Labor Arbiter, the Med-Arbiter

or the Voluntary Arbitrator shall be final andexecutory after 10 calendar days fromreceipt thereof by the parties.

- The foregoing may upon its own initiative or on motion of any interested party, issue awrit of execution on a judgment within 5years from the date it becomes final andexecutory.

- The immediate execution of judgmentshould be undertaken only when themonetary award had been carefully andaccurately determined by the NLRC andonly after the employer is given theopportunity to be heard and to raise

INTER- UNION DISPUTES - refers toquestions involving or arising out of arepresentation disputes between or among the different unions.

- It also includes all other conflicts whichlegitimate labor, organizations may haveagainst each other based on any violation of their rights as labor organizations.

DETERMINATION OF EMPLOYER-EMPLOYEE RELATIONSHIP:

- since the BLR has the original and exclusive

jurisdiction to decide inter alia, all disputes,grievances or problems arising from or affecting labor-management relations in allworkplaces. Necessarily, in the exercise of this jurisdiction over labor-managementrelations, the Med-Arbiter has the authority,original and exclusive, to determine the



ART. 227. COMPROMISEAGREEMENTS

REQUIREMENTS OF A VALIDQUITCLAIM:

1. The quitclaim must be voluntarily arrived atby the parties;

2. It must be with the assistance of the Bureauof Labor Standards, Bureau of Labor Relations of any representative of theDOLE; and

3. The consideration must be reasonable.

- if the compromise agreement was entered

into without the assistance of DOLE, it isvalid and binding between the parties butthe parties can still go to the NLRC andrepudiate the agreement.

- if the compromise agreement was enteredinto with the assistance of DOLE, it shall

CHAPTER IREGISTRATION AND

CANCELLATION

ART. 234. REQUIREMENT OFREGISTRATION

LABOR ORGANIZATION- A labor organization is any union or association of employees which exists in whole or in partfor the purpose :

- of collective bargaining or - of dealing with employers concerning the

terms and conditions of employment.

PURPOSE OF FORMATION OF LABORUNIONS: for securing a fair and just wages andgood working conditions for the laborers; and for the protection of labor against the unjustexactions of capital



application for registration is filed duringthe last 60 days of the agreement.

MANDAMUS is the proper remedy for theunjustified refusal of the Bureau in approving theapplication and the corresponding issuance of a

certificate of registration, it being a ministerialduty.

REASON FOR REQUIREMENT OFREGISTRATION – it is a condition sine qua nonfor the acquisition of legal personality by labor organizations, associations or unions, and thepossession or the rights and privileges grantedby law to legitimate labor organizations

FEDERATION is an association of nationalunions.

REQUIREMENTS BEFORE AFEDERATION CAN BE ISSUED ACERTIFICATE OF REGISTRATION:

2. Statement of the set of officersand books of accounts, all of which mustbe certified by the Secretary/Treasurer and attested to by the President.

Can a union of supervisory

employees affiliate with a national federation of labor organizations of rank and file employees ?

YES, provided that:a. The federation is not actively

involved in union affairs in thecompany and

b. The rank and file employees are not

directly under the control of thesupervisors

EFFECTS WHEN A LOCAL UNIONDISAFFILIATE:



- On the other hand, if the labor union is notindependently registered, then union duesmay no longer be collected as there wouldno longer any labor union who is allowed tocollect such union dues from the employees.

- A union can affiliate anytime but disaffiliationcan be done only during the freedom period.If not within the freedom period, can be doneonly with the consent of the majority of theworkers. Provided it is independentlyregistered otherwise it loses its personality.The exception will only apply if it is notprohibited by the constitution and by-laws of the federation of national union.

ART 236. DENIAL OF REGISTRATION;APPEAL

Decisions of the BLR denying the registrationof a labor organization is appealable to theSecretary of Labor within 10 calendar days from

- within 30 days from adoption or ratification of the constitution andby-laws or amendments thereto.

3. Misrepresentation, false statement or fraudin connection with the:

- election of officers,

- minutes of the election of officer andthe list of voters, or failure to submitthese documents together with

- the list of the newlyelected/appointed officers and their postal addresses

- within 30 days from election4. Failure to submit the annual financial report

to the Bureau

-within 30 days after the closing of every fiscal year andmisrepresentation, false entries andfraud

- in the preparation of the financialreport itself;

5. Acting as a labor contractor or engaging in



ART. 241. RIGHTS AND CONDITIONSOF MEMBERSHIP IN ALABOR ORGANIZATION

REQUIREMENTS IN MAKING SPECIALASSESSMENT

Art. 241(n). No special assessment or other

extraordinary fees may be levied upon the

members of a labor organization:

- UNLESS authorized by a written resolutionof a majority of all the members at a generalmembership meetings duly called for thepurpose.

- The secretary of the organization shallrecord the minutes of the meeting including:

- the list of all members present,

- The law does not require individual writtenauthorizations from the employees when itcomes to fees for mandatory activities under the Labor Code.

CHECK-OFF is a method of deducting from

an employee’s pay at prescribed period, theamounts due to the union for fees, fines or assessment.

In Special Assessment, there must be a writtenresolution authorized by a majority of themembers at a general meeting called for thepurpose.

- Check-off – there must be individual written

authorization of the members.

PERSONS WHO ARE PROHIBITEDFROM BECOMING MEMBERS OF ALABOR ORGANIZATION UNDER THELABOR CODE:



- to facilitate the collection of dues necessaryfor the union’s life and sustenance.

GENERAL GROUPINGS OF THERIGHTS OF THE UNION MEMBERS:

(Under Art. 241)

1. Political right is the right of the members tovote and be voted for, subject to lawfulprovisions on qualifications anddisqualifications.

2. Deliberative and Decision-Making Right isthe members right to participate indeliberations on major policy questions and

decide them by secret ballot.3. Rights Over Money Matters is the right of the members:

a. against excessive feesb. against unauthorized collection of

contributions or unauthorizeddisbursements

EFFECT OF CANCELLATION OFREGISTRATION IN THE COURSE OFPROCEEDINGS;

- Where a labor union is a party in aproceeding and later it loses its registration

permit in the course or during the pendencyof the case, such union may continue still asa party without need of substitution of parties, subject however to theunderstanding that whatever decision maybe rendered therein will only be bindingupon those members of the union who havenot signified their desire to withdraw fromthe case before its trial and decision on the

merits.

TITLE VCOVERAGE

ART. 243. COVERAGE AND



However, they cannegotiate with thegovernment onthose terms andconditions of employment whichare not fixed by law.Thus, they have alimited bargainingrights.

and conditions of their employment.Thus, they have anunlimited bargainingrights.

3. Can only form, join or assist

labor organization for purposes notcontrary to law.

3. Can form, join or Assisi labor

organization for purposes of CBA,etc.

- appointments- promotion- assignments/details- reclassification/upgrading of position- revision of compensation structure

-penalties imposed as a result of

disciplinary actions- selections of personnel to attainseminar, trainings. Study grants- distribution of work load- external communication linkages

- Government employees and employees of government-owned and controlledcorporations with original charters may

bargain, however, such bargaining power is limited.

RATIONALE : GOCCsINCORPORATED UNDER THE CORP.CODE ALLOWED TO ORGANIZE:



- whose functions are normallyconsidered as policy-making or managerial- whose duties are of a highlyconfidential or highly technical in nature( EO 180, sections 3-4)

3. Government employees occupying highpositions

4. Employees of international organizationswith immunities

5. Confidential employees6. Cooperative members who are also

employees

- Foreigners validly working in thePhilippines can form labor organizations,

provided, the same right to form, join or assist in the formation of labor unions is alsogiven to Filipinos in their country of origin.This embodies the principle of reciprocity.

E t t f th Ri ht t S lf

Any act intended to weaken or defeat theright is regarded by law as an offense, which istechnically called “unfair labor practice.”

TITLE VIUNFAIR LABOR PRACTICES

CHAPTER ICONCEPT

ART. 247 UNFAIR LABORPRACTICES

NATURE OF UNFAIR LABORPRACTICES:



OF EMPLOYERS

ART 248. ULP THAT MAY BECOMMITTED BY ANEMPLOYER

1. To interfere with, restrain or coerceemployees

- in the exercise of their right to self-organization;

2. To require as a condition for employmentthat a person or an employee

- shall not join a labor organization or - shall withdraw from one to

which he belongs;3. To contract out services or functions beingperformed by union members

- when such will interfere with,restrain or coerce employees in theexercise of their right to self-organization;

YELLOW DOG CONTRACT: Apromise exacted from workers as acondition employment that they are not tobelong to, or attempt to foster, a unionduring their period of employment.

- It is contrary to public policy for it istantamount to involuntary servitude.

- It is entered into without consideration for employees waive their right to self-organization

- Employees are coerced to signcontracts disadvantageous to their family.

Does Art. 248 (c ) mean that an

employer cannot contract out work?

NO. Contracting out services is not ULPper se. It is only ULP when the followingconditions exist:

1. the service contracted- out are being



to the union in the form of union dues and specialassessment.

3. Self-preservation. Itstrengthens the unionthrough selective acceptance

of new members on the basisof commitment and loyalty.

DIFFERENT KINDS OF UNIONSECURITY ARRANGEMENTS:

1. CLOSED- SHOP AGREEMENT - theemployer undertakes not to employ anyindividual who is not a member of thecontracting union and the said individualonce employer must, for the duration of theagreement, remain a member of the union ingood standing as a condition for continuedemployment.

union activities without contributing tounion support to prevent a situation of non-union members enrichingthemselves at the expense of unionmembers.

THE REQUIREMENTS FOR A VALIDUNION OR CLOSE SHOP AGREEMENT(SO THAT THE EMPLOYER CAN TERMINATE THE EMPLOYEE FOR VIOLATION OF SAID AGREEMENT):

1. It must be expressed in a clear andunequivocal way so as not to leave room for interpretation because it is a limitation to theexercise of the right to self-organization.

- Any doubt must be resolved against close-shop.

2 It can only have prospective application and



not performed or not to be performed,including the demand for a fee for unionnegotiations;

e. To ask for a accept negotiation or attorney’sfees from employers as part of thesettlement of any issue in collectivebargaining or any other dispute; or

f. To violate a collective bargainingagreement.

NOTE: Violation must be gross with respect toeconomic provisions of the CBA.

PERSONS CIVILLY LIABLE FOR ULP:

1. Officers and agents of employer

2. Labor organization, officers and agents

PERSONS CRIMINALLY LIABLE FORULP:

1. Agents and officers who participated or

4. If not settled NCMB may intervene andencourage the parties to submit the disputeto a voluntary arbitrator

5. If not resolved, the parties may go to wherethey want and resort to any other lawfulmeans.

COLLECTIVE BARGAININGAGREEMENT- (CBA) – negotiated contract between a legitimate

labor organization and the employer concerning :

- wages,

- hours of work and

- all other terms and

-conditions of employment in abargaining unit, includingmandatory provisions for grievancesand arbitration machineries.

MANDATORY PROVISIONS OF THECBA:



- seasonal, and

- probationary employee

THINGS TO CONSIDER INDETERMINING THE COMMUNITY OF

INTEREST DOCTRINE:

1. similarity in the scale and manner of determining earnings

2. similarity in employment benefits, hours of work and other terms and conditions of employment

3. similarity in the kinds of work performed4. similarity in the qualifications, skills and

training of the employees5. frequency of contract or interchange among

the employees6. common supervision and determination of

labor-relations policy7. history of previous collective bargaining8. desires of the affected employees

showing that the labor organization issupported by at least a majority of theemployees in the bargaining unit.

CERTIFICATIONELECTION

CONSENTELECTION

1. aimed atdetermining thesole andexclusivebargaining agentof all theemployees in anappropriatebargaining unitfor the purposeof collectivebargaining;

1. an agreed one,its purposebeing merely todetermine theissue of majorityrepresentation of all the workers inthe appropriatecollectivebargaining unit



- The petition must be supported bythe written consent of at least 25%of all the employees in theappropriate bargaining unit.

NOTE: In case the establishment is organized,the employer cannot file a petition for certification election; only a legitimate labor organization can file such petition.

WHEN MAY A LABORORGANIZATION FILE A PETITION FORCERTIFICATION ELECTION:

1. Where the establishment is not

organized, it can file a petition for certification election at any time, subjecthowever to the ONE-ELECTION-PER-YEARRULE.

2. In an organized establishment –a. when there is a CBA, the labor

organization can file a petition for

b. The election results in none of thechoices received the majorityvotes(50%+1) of the valid votes cast

Run-off shall be conducted:

a. Between the labor union receivingthe two highest number of votes

b. Provided that the total number of votes for all the contending unions isat least 50% of the total votes cast

RULES WHICH WILL PREVENT THEHOLDING OF A CERTIFICATION

ELECTION:

1. Contract-Bar Rule2. One-Year Bar Rule3. Deadlock Bar Rule



7. The violation of the contract bar rule or theexistence of a duly registered CBA must bespecifically impleaded as a defense.

EXCEPTIONS TO THE CONTRACT-BAR RULE:

1. CBA is not registered.2. CBA deregistered.3. CBA was hastily concluded way ahead of

the freedom period4. CBA is incomplete in itself 5. CBA does not foster industrial peace

because of schism6. CBA was concluded in violation of an order

enjoining the parties from entering into a

CBA until the issue of representation isresolved.

EFFECT OF AN INVALID ANDUNREGISTERED CBA:

for the purpose of negotiating an agreement withthe respect to

- wages,

- hours of work and

- all other terms and conditions of employment, including

-proposals for adjusting anygrievances or questions arisingunder such agreement and

- executing a contract incorporatingsuch agreements if requested byeither party.

- When there is a collective bargainingagreement, the DUTY TO BARGAINCOLECTIVELY shall mean that neither partyshall terminate or modify such agreementduring its lifetime.

- However, either party can serve awritten notice to terminate or modifythe agreement at least 60 days prior to its expiration period.



ART 253 – A. TERMS OF ACOLLECTIVE BARGAININGAGREEMENT

DURATION OF THE CBA:

1. With respect to the representation aspectthe same lasts for 5 years.

2. With respect to other provisions, the sameshall last for a maximum period of 3 yearsafter execution.

RULE ON RETROACTIVE EFFECTS OFAGREEMENT PROVISIONS:

- Any agreement on such other provisions of the CBA if made within 6 months after thedate of expiry, there is AUTOMATICRETROACTION to the day immediatelyfollowing such date of expiry.

If not within 6 months the parties may

No temporary or permanent injunction pr restraining order in any case involving or growing out of labor disputes shall be issuedby any court or other entity, except as otherwiseprovided in Articles 218 and 264 of this Code.

ART 255. EXCLUSIVE BARGAININGREPRESENTATION AND WORKER’SPARTICIPATION IN POLICY ANDDECISION-MAKING

IN DETERMINING THE APPROPRIATEBARGAINING UNIT THE FF. MUST BECONSIDERED:

1. Will of employees2. Affinity and unity of employee’s interest3. Prior collective bargaining history4. Employment status, such as temporary,

seasonal and probationary employees.

ONE-UNION, ONE-COMPANY POLICY- the



employer invokes the grievance machineryprovision for the adjustment or resolution of suchdispute or controversy.

- both parties must resort to grievancemachinery

ART 261. JURISDICTION OFVOLUNTARY ARBITRATORS OR PANELOF VOLUNTARY ARBITRATORS

JURISDICTION OF VOLUNTARYARBITRATORS:

EXCLUSIVE ORIGINAL JURISDICTIONCONFERRED BY LAW

a) interpretation or implementationof the CBAb) interpretation or enforcement of company personnel polices

- It is the labor arbiter and not the

- it is the most effective weapon of labor inprotecting the rights of employees toimprove the stems and conditions of their employment.

STRIKE-BREAKER- any person whoobstructs, impedes or interferes by force,

violence, coercion, threats or intimidation withany peaceful picketing by employees during anylabor controversy affecting wages, hour or conditions of work or in the exercise of the rightto self organization or collective bargaining

STRIKE AREA – the establishment,warehouse, depots, plants or offices, includingthe sites or premises used as runaway shops of

the employer struck against, as well as theimmediate vicinity actually used by picketingstrikers in moving to an fro before all points of entrance to and exit front said establishment

LOCKOUT - means the temporary refusal of l t f i h k lt f



wit, notice of strike, vote, and report on strikevote.

Is a “welga ng bayan” legal?NO. A “welga ng bayan” is illegal

because it is a political strike and therefore thereis no bargaining deadlock nor any ULP. It is apolitical rally.

PICKETING - is the marching to and fro theemployer’s premises, usually accompanied bythe display of placards and other signs makingknowing the facts involved in a labor dispute.This is an exercise of ones freedom of speech.

ECONOMIC

STRIKE

ULP STRIKE

1. Voluntary strikebecause theemployee willdeclare strike to

1. Involuntary :labor organization isforced to go on

where the existence of the union isthreatened, the 15-day cooling-off periodshall NOT apply AND the union may takeaction immediately.

- the cooling off periods and seven-daystrike ban is mandatory otherwise thepurposes for which they have been imposedwould not be achieved

EXCEPTION TO THE COOLING-OFFPERIOD:

- In case of dismissal from employment of union officers duly elected in accordancewith the union constitution and by-laws,

which may constitute union busting wherethe existence of the union is threatened, he15-day cooling-off period shall NOT applyAND the union may take actionimmediately but they must still observe themandatory 7 day period before they can



EFFECT OF GOOD FAITH OFSTRIKERS ON LEGALITY OF STRIKE: - A strike may be considered legal where the

union believed that the company committedULP and the circumstances warranted suchbelief in good faith, although subsequentlysuch allegations of ULP are found out as nottrue.

WHEN CAN THE SEC. OF LABORASSUME JURISDICTION OVER ASTRIKE?

1. there exists a labor dispute causing or likelyto cause a strike or lockout in a industryindispensable to the national interest,

2. the Secretary of Labor and Employmentmay assume jurisdiction and EITHER:

- decide it or - certify the same to the

- -the history of theparticular employer’s labor relations of anti-union bias or

- -because of their connection with an established collateralplan of coercion or interference.”(Rothenberg)

ISSUES THAT THE SECRETARY OFLABOR CAN RESOLVE WHEN HE ASSUMESJURISDICTION OVER A LABOR DISPUTE:

1. Only issues submitted to the Secretary maybe resolved by him. (PAL vs. Sec. of Labor, 23 January 1991)

2. Issues submitted to the Secretary for

resolution and such issues involved in thelabor dispute itself. (St. Scholastica’sCollege vs. Torres, 29 June 1992)

3. Secretary of Labor may subsume pendinglabor cases before Labor Arbiters which areinvolved in the dispute. (Int’l



Would depend on the authority deciding(discretionary).

GENERAL RULE:- Strikers are not entitled to their wages

during the period of a strike, even if thestrike is legal.

EXCEPTIONS:

1. Where the strikers voluntarily andunconditionally offered to return to work,but the employer refused to accept theoffer.

- -They are entitled tobackwages from the date the offer was

made- -e.g. of Unconditioned

offer: “we will return tomorrow” and NOT“willing to return provided…”

2. Where there is return-to-work and the

b. AFTER certification or submission of the dispute to compulsory or voluntary arbitration or

-DURING the pendency of casesinvolving the same grounds for the strike or lockout.

b) NO person all obstruct, impede or interferewith OII by force, violence, coercion, threats or intimidation FVCTI

- any peaceful picketing byemployees

- during any labor controversy or in the exercise of the right of self-organization or collective bargainingor shall aid or abet such obstruction

or interference.

c) NO employer shall use or employ anySTRIKE-BREAKER

- nor shall any person be employed as astrike-breaker.



REASON: because while out of strike, the strikers are not considered to have

abandoned their employment, but rather haveonly ceased from their labor.- -The declaration of a strike is NOT a

renunciation of employment relation.

EXCEPTIONS: The following strikers areNOT entitled to reinstatement:

1. union officers who knowinglyparticipates in an illegal strike;and

2. any striker/union member whoknowingly participate in the

commission of illegal acts duringthe strike.

TITLE ITERMINATION

OFEMPLOYMENT

ART 279. SECURITY OF TENURE

SECURITY OF TENURE is the constitutionalright granted the employee, that the employer shall not terminate the services of an employeeexcept for just cause or when authorized by law.

An employee that has been dismissed illegally isentitled to:

a. Reinstatement

b. Backwages

ART 280 REGULAR AND CASUAL



Is it necessary that probationary employmentbe for a period of 6 months?

No. Provided that the followingrequisites concur:

1. it is done before the lapse of 6months;

2.employee must be advised of such extension;

3. employee must agree.

EFFECT IF PROBATIONARY EMPLOYEEIS ALLOWED TO WORK BEYOND 6MONTHS:

If the probationary employee is allowedto work beyond the period of 6 months or theagreed probationary period, said employee

become a regular employee by operation of law.Under the Labor Code, “an employee

who is allowed to work after a probationaryperiod shall be considered a regular employee.”(Art. 281.)

ART. 282. TERMINATION BY

b. deleterious to his health or his co-employees.

c. certification from public heath officer that illness is incurable within 6months.

STANDARDS UNDER WHICH AN

EMPLOYER MAY RETRENCH:

1. Losses expected should be imminent andsubstantial.2.It must be reasonably necessary and likely toeffectively prevent the expected losses3. Alleged losses if already incurred, and theexpected imminent losses sought to beforestalled, must be proved by sufficient and

convincing evidence.

ART. 285. TERMINATION BYEMPLOYEE

TERMINATION BY THE EMPLOYEE



c) RETRENCHMENT TO PREVENT LOSSESand CLOSURES OR CESSATION OFOPERATIONS (NOT due to seriousbusiness losses or financial reverses)

- The separation pay shall be equivalent toone (1) month pay or at least ½ month payfor every year of service, whichever is

higher.d) In the case of ILLNESS- separation pay equivalent to at least one

month salary or to ½ month salary for everyyear of service, whichever is greater, afraction of at least 6 months shall beconsidered one (1) whole year.

NOTE: If CLOSURE is due to severe financial

losses, it is still debatable whether or notseparation pay should be given.- I f you are able to prove that such portion of

capital (10%) investment has been impaired,the employer should be exempt for thepayment of separation pay.

establishments or operations employing NOTmore than ten (10) employees or workers.

BOOK SEVENTRANSITORY AND FINAL

PROVISIONS

TITLE IIPRESCRIPTION OF OFFENSES AND

CLAIMS

ART. 291. MONEY CLAIMS

PERIODS OF PRESCRIPTION

A. MONEY CLAIMS-The prescriptive period is3 years from the accrual of the cause of action.

B. ULP -The prescriptive period of filing a casefor ULP is 1 year from the accrual of the



1. written notice to apprise the employee of theparticular acts or omission for which hisdismissal is sought and is herebyconsidered as the proper charge;

2. ample opportunity to be employee to beheard and if the employee so decides, withthe assistance of counsel; and

3. written notice informing the employee of theemployer’s decision to dismiss him.

“Under the so-called ‘WENPHILDOCTRINE” if just or authorized cause exist butthe affected employees right to due process hasbeen violated, the dismissal is valid but theemployee is entitled to damages by way of indemnification for the violation of the right.

On Jan. 27, 2000, the SC in the case of SERRANO vs. ISETANN et. al. Disregardedthis WENPHIL DOCTRINE and ruled that if theemployee’s right to due process is violated, hisdismissal becomes illegal regardless of theexistence of a just and authorized cause.

5. Doctrine of Strained Relations-When theemployer can no longer trust the employeeand vice-versa, reinstatement could noteffectively serve as a remedy. Applies onlyto positions which require trust andconfidence; or

Under the circumstances where the

employment relationship has become sostrained to preclude a harmonious workingrelationship, and that all hopes at reconciliationare nil after reinstatement, it would be morebeneficial to accord the employee backwagesand separation pay.

BACKWAGES-Relief given to an employee tocompensate him for lost earnings during the

period of his dismissal.

How computed: Under existing law,backwages is computed from the time of theillegal dismissal up to time of actualreinstatement.



discontinued, reduced or otherwise impaired andshall continue to remain under the employer’smanagement unless there is an existingagreement to the contrary

Filipinos recruited by foreign basedemployers for employment abroad may becovered by the SSS on a voluntary basis

Compulsory upon such self- employedpersons as may be determined by theCommission including but not limited to thefollowing:

1. all self employed professionals2. partners and single proprietors3. actors and actresses directors4. professional athletes, coaches,

trainers

5. individual farmers and fishermen

EFFECTIVE DATE OF COVERAGE:

Shall take effect on the first dayof the operation with respect to the

l d th t f th l

Any person who performsservices for an employer in which either or both mental and physical efforts areused and who receives compensationfor such services, where there is anemployer- employee relationship.

BENEFICIARIES

The dependent spouse until he or sheremarries, the dependent legitimate,legitimated or legally adopted andillegitimate children who shall be theprimary beneficiaries of the member,PROVIDED that the dependent

illegitimate children shall be entitled to50% of the share of the legitimate,legitimated or legally adopted children

In the absence of thelegitimated, legally adopted or legitimatechildren, illegitimate children shall be

titl d t 100% f th b fit



condition that they must settle first their financialobligations with the GSIS and contractuals whohave no employer and employee relationshipwith the agencies they serve.

Except for the members of the Judiciaryand constitutional commissions who shall have

life insurance only, all members of the GSISshall have life insurance, retirement and all other social security protection such as disability,survivorship, separation and unemploymentbenefits.

COMPUTATION OF SERVICE

The computation of service for thepurpose of determining the amount of benefitspayable shall be from the date of the originalappointment/ election including periods of service at different times under the authority of the Republic of the Philippines and those that

b ib d b th GSIS i di ti

2. If separated from service, he haspaid at least 36 monthlycontributions within the 5 year period immediately preceding thedisability or has paid a total of atleast 180 monthly contributions prior to the disability

Unless the member has reached theminimum retirement age, disability benefits shallbe SUSPENDED when:

1. he is reemployed2. he recovers from his

disability as determined bythe GSIS, whose decision

shall be final and binding3. he fails to present himself for medical examinationwhen required by the GSIS

TEMPORARY DISABILITY BENEFITS



All employees except members of theAFP and the PNP shall be compulsorily coveredwith life insurance.

PRESCRIPTION OF CLAIMS

Claims for benefits under the Act except

for life and retirement shall prescribe after 4years from the date of the contingency. JURISDICTION

GSIS shall have the exclusive andoriginal jurisdiction to settle any dispute arisingunder the Act and any other laws administeredby the GSIS.

RA 8042: "MIGRANT WORKERS ANDOVERSEAS FILIPINOS ACT 0F 1995"

Approved on 07 June 1995 and took

effect on 15 July 1995. As indicated in its title,

1. Money Claims.-, the Labor Arbitersof the National Labor Relations Commission(NLRC) shall have the original and exclusive

jurisdiction to hear and decide, the claims arisingout of an employer-employee relationship or byvirtue of any law or contract involving Filipinoworkers for overseas deployment including

claims for actual, moral, exemplary and other forms of damages.

LIABILITIES

The liability of the principal/employer and the recruitment/placement agency for anyand all claims under this section shall be joint and several . The performance bond to be filed

by the recruitment/placement agency, asprovided by law, shall be answerable for allmoney claims, or damages that may be awardedto the workers. If the recruitment/placementagency is a juridical being, the corporate officersand directors and partners as the case may be,h ll th l b j i tl d lid il li bl



for three (3) months for every year of theunexpired term, whichever is LESS .

VENUE

A criminal action arising from illegalrecruitment shall be filed with the RTC of the

province or city where the offense wascommitted or where the offended party actuallyresides at the time of the commission of theoffense. The court where the criminal action isfirst filed shall acquire jurisdiction to theexclusion of other courts.

PRESCRIPTIVE PERIODS

Illegal recruitment cases under this Actshall prescribe in five (5) years; provided,however, That illegal recruitment cases involvingeconomic sabotage as defined herein shallprescribe in twenty (20) years. (Sec. 12, R.A.8042)

agencies of the government, includinggovernment- owned or controlled corporationsWITH original charters

All government employees can form, join or assist employees’ organizations of their own choosing for the furtherance and protectionof their interest. They can also form in

conjunction with appropriate governmentauthorities, labor- management committees,works councils and other forms of workers’participation schemes to achieve the sameobjectives.

High- level employees whose functionsare normally considered as policy- making or managerial or whose duties are of a highlyconfidential nature shall not be eligible to join the

organization of rank and file governmentemployees.

PROTECTION OF THE RIGHT TOORGANIZE

1 G t l h ll t b



3. Cash bonuses



X. SOCIAL WELFARE LEGISLATIONCOMPARATIVE CHART

SSS (RA 1161)) GSIS (RA 8291 ECC (PD 626)

STATEMENT

OF POLICIES

To establish, develop, promote and perfect a

sound and viable tax exempt social securitysystem suitable to the needs of the people whichshall provide employees and their beneficiariesprotection against the hazards of disability,sickness, old age, death and other contingenciesresulting in loss of income or financial burden.

EMPLOYER Employers in private sector All government agencies andinstrumentalities , including GOCCs All employers (private or public)

COVERAGE

COMPULSORY 1. Employees not over 60 years of age and their employers.

2. 2. Domestic helpers whose monthly incomeis not less than P1,000.00.

3. Self-employed persons as determined by theCommission : a) self-employed professionals;b) partners and single proprietors; c) actorsand actresses, directors, etc; d) professional

athletes, coaches, trainers, etc. and e)individual farmers and fishermen.

1. Compulsory for all employeesreceiving compensation who have notreached compulsory retirement ageirrespective of employment status.

*Including barangay and sanggunianofficials

Any person compulsorily coveredby GSIS or SSS

Any person employed as casual,emergency, temporary, substituteor contractual



VOLUNTARY 1. Spouses who devote full time to managing of household and family affairs, UNLESS they

are also engaged in other vocation or employment which is subject toMANDATORY coverage.

2. 2. Filipinos recruited by foreign-basedemployers for employment abroad.

3. Employees separated from employment bypaying TOTAL contribution (meaning : bothemployer and employee’s share)

BY-ARRANGEMENTAny foreign government, internationalorganization or their wholly owned instrumentalityMAT enter into agreement for the inclusion of their employees EXCEPT those covered by their

own respective civil service retirement systems.

EXEMPTED

EMPLOYMENT

1. purely CASUAL and not for purpose or occupation of the employer.

2. Performed in an alien vessel by an employeeif he is employed when such vessel is outsideof the Philippines.

3. By the government of the Philippines or instrumentality or agent thereof.

4. Foreign government of internationalorganization.

1. AFP2. PNP3. Contractuals who have no employer

and employee relationship

* Members of the judiciary and theConstitutional Commissions – lifeinsurance only



BENEFITS 1. Monthly pension2. Dependents’ pension

3. Retirement4. Death Benefits5. Permanent Disability benefits6. Funeral7. Sickness8. Maternity

1. Life Insurance2. Retirement

3. Disabil ity4. Survivorship5. Separation6. Unemployment

* Life insurance for the members of the judiciary and constitutional commissions.

BENEFICIARIES

PRIMARY 1. Dependent spouse until remarriage2. Dependent legitimate, legitimated or legally

adopted and illegitimate children

1. Legal, dependent spouse untilremarriage

2. Dependent children – defines as thelegitimate, legitimated, legallyadopted child, including theillegitimate child, who is unmarried,not gainfully employed, not over theage of majority, or is over the age of majority but is incapacitated andincapable of self-support.

SECONDARY 1. In the absence of primary beneficiaries,dependent parents

1. Dependent parents2. Legitimate descendants subject to the

restrictions on dependent children,the legitimate descendants



CONTRIBUTIONS 1. Employer’s contributions2. Employees’ contribution3. Government contribution

1. Employer’s contribution2. Employee’s contribution

MODEOF COLLECTION

1. For those with employees – Employeecontribution shall be deducted by theemployees based on an approved schedule.Employer shall remit BOTH EMPLOYEE ANDEMPLOYER contribution to the system.

2. For self-employed – Self-employed shall payBOTH EMPLOYER AND EMPLOYEEcontributions to the system.

3. For government contribution – remitted to theSSS within the first 10 days of each calendar month following the month got which they areapplicable.

* Contributions under this Act in case where anemployer refuses or neglects to pay the sameshall be collected by the SS in the same manner as taxes are made collectable under the NationalInternal Revenue Code.

1. The employer shall deduct eachmonth from the salary or compensation of each employee the contribution payment.Employer shall remit to the system within10 days the Employer-Employeecontributions.



PENALTIES 1. False statement or misrepresentation as toany compensation as to any compensation

paid or received or whoever makes or causesto be made any false statement of a materialfact in any claim for any benefit payableunder this Act – Art. 172 of the RPC(falsification be private individuals andfalsified documents)

2. Obtaining or receiving any money or checkwithout being entitled thereto with intent todefraud any covered employee, employer or SSS – fine of P5,000.00 to P20,000.00 andimprisonment of 6 years and 1 day to 12years or both.

3. Buys, sells, offers for sale, uses, transfers,

takes or gives in exchange, or pledges or give in pledge, except as authorized in thisAct – fine of P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to 12years or both.

4. Makes, alters, forges or counterfeits anystamps, coupon, ticket or other deviceprescribed by the Commission, or uses, sells,lends or in his possession any such altered,forged, or counterfeited materials, or makes,uses or sells or has in his possession anymaterials used in the manufacture of suchstamp, coupon, ticket or book – fine of

P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to 12 years or both.

1. Participating directly or indirectly incommission of fraud, collusion,

falsification or misrepresentation inany transaction of the GSIS – Article172 of the RPC (Falsification byprivate individuals and use of falsifieddocuments)

2. Receiving money or check involvingprovision of this act, without beingentities with intent to defraud – fine of P5,000.00 to P20,000.0 or imprisonment of 6 years and 1 day to12 years or both.

3. Refusing to comply with theprovisions of this Act – fine of

P5,000.00 to P20,000.00 or imprisonment of 6 years and 1 day to12 years or both.

4. Failure to include in the annualbudget corresponding employer contributions by finance officers,treasurers, cashiers, etc. – 6 monthsand 1 day to 6 years imprisonmentand a fine of P3,000.00 to P6,000.00and absolute perpetualdisqualification from holding office.

5. Misappropriation or taking of fundsand property of the GSIS for

purposes other than authorized in thisAct – Article 217 of RPC



5. Fails or refuses to comply with the provisionspromulgated by the Commission – fine of P5,000.00 ot P20,000.00 or imprisonment of

6 years and 1 day to 12 years or both.6. Misappropriation of funds – penalties under

Article 217 of the RPC.7. Failure to remit the said deductions to the

SSS within 30 days from date they becomedue – Article 315 of the RPC (Estafa).

(Malversation of public funds or properties).

6. For head of officers who fails or

refuses payment or remittance of GSIS payments within 30 days fromthe time its demandable –imprisonment of 1 year to 5 years andfine of P10,000.00 to P20,000.00 andaboslute perpetual disqualification.

ENTITLED TORETIREMENTBENEFITS

Member has reached age of 60 or 65. OPTIONAL. Member meets the ff :1. has worked for at least 15 years.2. Is at least 60 years of age at time of

retirement, and3. Is not receiving monthly pension

benefit from permanent total disability

COMPULSORY. Member is 65 yearswith at least 15 years of service (if service is less than 15 years, he may beallowed to continue in accordance withCivil Service Rules and Regulations.)

DISABILITIES DEEMEDPERMANENT TOTAL

1. Complete loss of sight in both eyes.2. Loss of two limbs at or above the ankle or

wrist.3. Permanent complete paralysis of two limbs.4. Brain injury resulting in incurable imbecility or

insanity.5. Other cases determined by SSS.

1. Complete loss of sight in both eyes.2. Loss of two limbs at or above the

ankle or wrist.3. Permanent complete paralysis of two

limbs.4. Brain injury resulting in incurable

imbecility or insanity5. Other cases determined by GSIS.

1. Temporary total disability lastingover 120 days.

2. Complete loss of sight in botheyes.

3. Loss of limbs at or above the ankleor wrist.

4. Permanent complete paralysis of two limbs.



5. Brain injury resulting in incurableimbecility or insanity.

6. Other cases determined by

Medical Director of SSS

DISABILITIES DEEMEDPERMANENT PARTIAL

Complete and permanent loss of use of adigit, limb, ear (or both ears), hearing in one or both ears, or sight in one eye.

Complete and permanent loss of adigit, limb, ear (or both ears), hearing inone or both ears, or sight in one eye.

Complete and permanent loss of use of a digit, limb, ear (or both ears),hearing in one or both ears, or sight inone eye.

SYSTEM EXCUSEDFROM LIABILITY

For permanent disability in the ff. cases :1. grave misconduct2. notorious negligence3. willful intent to kill self or another 4. habitual intoxication

For all contingencies in the ff. cases :1. intoxication2. willful intent to injure or kill one’s

self or another 3. notorious negligence

AMOUNT OF FUNERALBENEFITS

P12,000.00 P12,000.00 (to be raised to P18,000.00in year 2002)

P10,000.00

WHO PAYSREMITTANCES?

Employer and EmployeeEmployer And Employee Employer

COVERAGE Occurrence of contingency whether or notwork-connected.

Occurrence of contingency whether or not work-connected.

Work-related illness or injury.

NOTICEREQUIREMENT

Employee to notify employer within 5 daysfrom injury or illness(unless no longer

necessary under the exceptions)

Employee to notify employer within5 days from injury or illness (unless

it is no longer necessary under the



Employer to notify SSS within 5 days fromnotice.

exceptions)

Employer to record the same inlogbook within 5 days from notice.

Employer to notify SSS or GSISwithin 5 days from recording inlogbook.

EFFECT OFERRONEOUSPAYMENT

Legal And eligible claimant may stilldemand benefits, without prejudice toright of GSIS to sue improper claimant.

SSS absolved unless notified of other claim prior to payment.

DISPUTE SETTLEMENT 1. File claim with SSS.2. Appeal to Social Security Commission.

3. Appeal to CA.4. Appeal to SC

1. File claim with GSIS.2. Appeal to GSIS Board.

3. Appeal to CA.4. Appeal to SC.

* Appeals shall be governed by Rules 43and 45 of the 1997 Rules of CivilProcedure

1. File claim with SSS and GSIS.2. Appeal to ECC.

3. Appeal to CA4. Appeal to SC

EXCLUSIVENESS OFBENEFITS

May Apply for same benefits in EC, if inprivate sector.

May not receive benefits for samecontingency under GSIS offers more (he maythen receive deficiency)

Whenever other laws provide similar benefits for the same contingencies,members who qualifies has option tochoose. If benefits chosen are lessthan under GSIS, he may get thedifference.

However, with respect to work-

May apply for the same benefitsunder SSS, if in the private sector.

May apply for same benefits under GSIS, if in public sector (applyingMazo Sugar Central vs CA case.



connected illness and injuries, hemay also recover in full under ECC,applying the Mazo Sugar Central vs

CA case.

PRESCRIPTIVEPERIODS

10 years from the time the right of actionaccrues.

4 years from date of contingencyexcept life and retirement benefits

XI. CHART ON JURISDICTION

Bureau Of Labor Relations

Grievance Machinery Voluntary Arbitration Labor Arbiter

(UTRCCC-M)NLRC

1. Inter-union dispute

2. Intra-union dispute

3. Labor ManagementRelations exceptinterpretation or implementation of theCBA

1. Interpretation or implementation of theCBA

2. Interpretation or enforcement of company personnelpolicies

1. Unresolved Grievances

2. Agreement on other labor dispute(Bargainingdeadlock, ULP)

1. ULP

2. Termination Disputes

3. Reinstatement-withcases involving wages

4. Claims of damagesarising from E-Erelationship

5. Cases involvingprohibited acts in strikes

1. Appellate jurisdictionover Labor Arbiters

2. Injunction

3. Contempt



(ART. 264)

6. Claims arising from E-E

relationship includingthose of domesticservice, involvingamount exceedingP5,000.0

7. Migrant Worker Cases

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