Labor Laws and Social Legislation Certification Consent Run-Off

Election Election Election

I. Labor Relations
The process of Voluntarily It refers to an
determining agreed upon by election between
Right to Self-Organization
through secret the parties with the labor unions
Bargaining Unit - A “bargaining unit” has been ballot the sole or without the receiving the
defined as a group of employees of a given and exclusive intervention of two (2) highest
employer, comprised of all or less than all of the bargaining agent the Department number of votes
entire body of employees, which the collective of the employees of Labor and in a certification
interest of all the employees, consistent with in an appropriate Employment or consent
equity to the employer, indicate to be the best bargaining unit (DOLE). election with
suited to serve the reciprocal rights and duties of for purposes of three (3) or more
the parties under the collective bargaining collective choices, where
provisions of the law. bargaining. such a certified
or consent
Tests to Determine the Constituency of an results in non of
Appropriate Bargaining Unit the three (3) or
1. The Express Will or Desire of the more choices
receiving the
Employees (Globe Doctrine) - Bargaining
majority of the
units may be formed through separation of
valid votes cast;
new units from existing one whenever provided that the
plebiscites had shown the workers’ desire to total number of
have their own representatives. votes for all
2. Commonality and Mutuality Interest contending
Factor - It is the basis test of an asserted unions is at least
bargaining unit’s acceptability as to whether fifty percent
or not it is fundamentally the combination (50%) of the
which will best assure to all employees the number of votes
exercise of their collective bargaining rights. cast.
The employees sought to be represented by As to when held
the collective bargaining agent must have
substantial mutual interests in terms of After a Petition By agreement of Automatically
employment and working conditions as for Certification the unions with instituted.
Election filed by or without
evinced by the type of work they perform.
a union or participation of
employer has the med-arbiter.
Other Doctrines been granted by
1. Collective Bargaining History Doctrine - It the med-arbiter
puts premium on the collective bargaining and an election
history and prior affinity of the employees in officer is
determining the appropriate bargaining unit. designated by
However, the existence of a prior collective the regional
bargaining history is neither decisive nor director to
conclusive in the determination of what supervise the
constitutes an appropriate bargaining unit. election.
2. Employment Status Doctrine - The When and by whom instituted
determination of the appropriate bargaining
unit based on the employment status of the Ordered by the Agreement by Automatically
employees is considered an acceptable mode. DOLE. the unions instituted.
followed by a
formal order by
the Med-Arbiter
to conduct a
certification
election.
Re-Run Election - Takes place in two instances: Voluntary Recognition - The process by which
1. When one choice receives a plurality or vote a legitimate labor union is voluntarily
and the remaining choices results in a tie; or recognized by the employer as the exclusive
2. When all choices received the same number bargaining representative or agent in a
of votes. bargaining unit and reported as such to the
Regional Office.
In both instances, the No Union is also a choice.
Union Dues and Special Assessments
• The application of technicalities of procedural Requisites for Collection:
requirements in certification election disputes 1. Authorization by a written resolution of the
will serve no lawful objective or purpose. It is majority of all the members at the general
a statutory policy that no obstacles shall be membership meeting duly called for the
placed on the holding of a certification purpose;
election, and that the law is indisputably 2. Secretary’s record of the minutes of the
partial to the holding of a certification meeting; and
election. 3. Individual written authorization for check-off
duly signed by the employee concerned.
“No-union” in a certification election - A “no-
union” can win in a certification election, Agency Fees - The collection of agency fees, in
because the objective in a certification election an amount equivalent to union dues and fees,
is to ascertain the majority representation of the from employees, who are not union members, is
bargaining representative. The employees may recognized under Article 259(e) of the Labor
desire not to be represented at all by anyone, Code. The union may collect such fees even
hence, “no union” is one of the choices in a without any written authorization from the non-
certification election. union member-employees, if said employees
accept the benefits resulting from the CBA. The
• To be entitled as bargaining agent, the vote legal basis of agency is quasi-contractual.
required is majority of the valid votes cast.
• Where the petition for a certification election
in an unorganized establishment is filed be a
federation, it shall not be required to disclose
the names of the local chapter’s officers and
members.

Who may file Petition for Certification

Election?
1. Legitimate Labor Organization;
2. The Federation on behalf of its chapter; or
3. The employer, when requested to bargain
collectively.

Grounds for the Denial of the Petition for

Certification Election
1. The petitioning union is illegitimate or
improperly registered;
2. Petition was filed outside the freedom
period;
3. Failure to submit the twenty-five percent
(25%) support requirement for the filing of
the petition for certification election in an
organized establishment;
4. Filed within an existing election bar; or
5. Non-appearance of the petitioning union for
two consecutive schedules before the Med-
Arbiter.
Who May Unionize or fifteen (15) days (in cases of unfair labor
For purposes of For mutual aid and practice) before the intended day thereof;
collective bargaining protection 3. A notice of the conduct of the strike vote
must be given to the DOLE at least 24-hour
1. All persons employed 1. Ambulant workers; before the conduct of the strike vote;
in commercial, 2. Intermittent workers; 4. A report of the vote must be filed with the
industrial and 3. Self-employed;
NCMB at least seven (7) days before the
agricultural 4. Rural workers; and
intended strike. Decision to strike must be
enterprises; 5. Those without
2. Employees of definitive employers. approved by a majority of the total union
government-owned or membership obtained by secret ballot;
controlled 5. Cooling-off period has lapsed and the dispute
corporations remains unsettled despite efforts at mediation
established under the and conciliation:
Corporation Code; a. thirty (30) days for bargaining deadlock;
3. Employees of or
religious, charitable, b. fifteen (15) days for ULP, except in case
medical or of dismissal duly elected of union officers
educational (union busting);
institutions, whether 6. Union declaring it must have complied with
operating for profit or its duty to bargain collectively; and
not; 7. Strike must be staged and conducted by
4. Supervisory
peaceful means.
employees, provided
they do not join the
same union as rank- Examples of how the law regulates the use of
and-file employees; strike as a form of concerted activity:
5. Alien employees; 1. Procedural requirements should be observed,
6. Working children; namely, filing of notice of strike, observance
7. Home workers; of cooling-off period, taking of strike vote,
8. Cooperative’s and report of the strike vote; and
employees which are 2. Use of violence, intimidation or coercion and
not members or co- blockade of ingress-egress are prohibited and
owners thereof; and may also be criminally sanctioned.
9. Employees of
legitimate contractors. Illegal Strike
Instances of Illegal Strike:
• All government employees can form, join or 1. Without first having bargained collectively;
assist employees’ organization of their own 2. Without complying with mandatory
choosing for the furtherance and protection of procedural requisites, such as those held by
their interests. They can also form, in minority or illegal labor unions, or by
conjunction with appropriate government dismissed employees;
authorities, labor-management committees, 3. After the assumption of jurisdiction by the
works councils and other forms of workers’ President or the Secretary of Labor;
participation schemes to achieve the same 4. In violation of labor law rules on picketing;
objectives. 5. When it employs unlawful means in the
pursuit of its objective, such as widespread
Right to Peaceful Concerted Activities terrorism of non-strikers;
Requisites for a Valid Strike 6. When it is contrary to a specific prohibition
1. Valid and substantial grounds, recognized by of law, such as a strike by employees
law, which are: performing governmental functions;
a. Collective bargaining deadlock (political 7. When it is declared for an unlawful purpose,
strike); and such as inducing the employer to commit an
b. Unfair labor practice (economic strike); unfair labor practice against non-union
2. Notice is filed with the National Conciliation employees;
and Mediation Board (NCMB) at least thirty 8. When it is declared in violation of an
(30) days (in case of bargaining deadlocks) existing injunction, such as temporary
 restraining order, such as prohibitory be based on committing illegal acts on occasion
injunction, or order issued by the DOLE of the illegal strike.
Secretary and the NLRC;
9. When it is contrary to an existing agreement As to the instance of the barricading, the Labor
in the CBA, such as a “no strike, no lockout” Code authorizes the employer to declare the loss
clause; of employment status of any worker or union
10.General strikes, such as extended sympathy officer who knowingly participates in the
strikes or welga ng bayan; commission of illegal acts during a strike.
11.After the notice to strike has been converted
to a preventive mediation case; Forms of Concerted Activities
12.During the pendency of conciliation and Strike - A temporary stoppage of work as a
mediation proceedings between the employer result of an industrial or labor dispute.
and the labor organization before the NCMB; Picketing - A marching to and fro at the
13.Based on non-strikeable issues, such as: employer’s premises, usually accompanies by
a. Inter-union or intra-union disputes; the display of placards and other signs making
b. Simple violations of the CBA; known the facts involved in a labor dispute.
c. Based on issues already brought to Boycott - A concerted refusal to patronize an
voluntary or compulsory arbitration; employer’s goods or services and to persuade
d. Violation of Labor Standards; and others to a like refusal.
e. Legislated wage orders (wage distortion) Lockouts - The temporary refusal by an
employer to furnish work as a result of an
• Despite the validity of the purpose of a strike industrial or labor dispute which consists of
and compliance with the procedural shutdown, mass retrenchment and dismissals
requirements, a strike may still be held illegal initiated.
where the means employed are illegal. The
means become illegal when they come within Assumption of Jurisdiction by the DOLE
the prohibitions under Art. 264 (e) of the Secretary or Certification of the Labor
Labor Code. Dispute to the NLRC for Compulsory
Arbitration - When in the opinion of the DOLE
Consequence of an illegal strike - When the Secretary, the labor dispute causes or will likely
strike is held illegal, only the union officers who cause a strike or lockout in an industry
knowingly participated will be considered to indispensable to the national interest, he is
have lost their employment status. The union empowered to do either of two (2) things:
members who knowingly participated in the 1. He may assume jurisdiction over the labor
commission of illegal acts during the strike may dispute and decide it himself; or
also be held liable. 2. He may certify it to the NLRC for
compulsory arbitration, in which case, the
The Labor Code requires that a notice of strike NLRC shall head and decide it.
be grounded on either a bargaining deadlock or
unfair Labor Practice. A strike vote is also • This power may be exercised by the DOLE
necessary to be undertaken through a secret Secretary even before the actual staging of a
ballot and approved by a majority of the total strike or lockout since Article 278 (g) does not
union membership in the bargaining unit. require the existence of a strike or lockout but
Absence of these in the problem renders the only of a labor dispute involving national
strike illegal. interest.

The Labor Code leaves it to the Secretary of the Nature of Assumption Order or Certification
Labor own’s sound discretion to determine the Order - The power to issue assumption or
presence of national interest. certification orders is an extraordinary authority
granted to the President and to his alter ego, the
As to the ground of illegal strike, the strike DOLE Secretary, the exercise of which is
should be declared by final judgment to be strictly limited to national interest cases.
illegal before the company can dismiss the
union officers. Dismissal of members must also
The constitutionality of the power of the The following are the justifications:
Secretary of Labor under the Labor Code to 1. A strike that is undertaken after the issuance
assume jurisdiction over a labor dispute in an by the DOLE Secretary of an assumption or
industry indispensable to the national interest certification order becomes a prohibited
has been upheld as an exercise of police power activity, thus illegal. The striking union
of the State. officers and members, as a result, are deemed
to have lost their employment status for
This is done for the promotion of the common having knowingly participated in an illegal
good considering that a prolonged strike or strike;
lockout can be inimical to the national economy. 2. From the moment a worker defies a return to
The Secretary of Labor acts to maintain work order, he is deemed to have abandoned
industrial peace. Thus, his certification for his job;
compulsory arbitration is not intended to impede 3. By so defying, the worker has forfeited his
the workers right to strike but to obtain a speedy right to be readmitted to work.
settlement of the dispute.
Right to Collective Bargaining
Requirements of a Valid Assumption Order Duty to Bargain Collectively - It is the
or Certification Order performance of a mutual obligation to meet and
1. There exists a labor dispute causing or likely convene promptly and expeditiously in good
to cause a strike or lockout; and faith for the purpose of negotiating an
2. That the labor dispute is in an industry agreement with respect to wages, hours of work
indispensable to the national interest. and all other terms and conditions of
Who may Declare a Strike - The proper party employment, including proposals for adjusting
to a strike is any certified or duly recognized any grievances or questions arising from such
bargaining representative. agreement and executing a contract
incorporating such agreements if requested by
Injunctions - The Labor Code empowers the either party, but such duty does not compel any
NLRC to issue injunctions or temporary party to agree to a proposed or to make any
restraining orders in labor disputes. concession.

Who can issue Injunctions/TRO in labor Until a new Collective Bargaining Agreement
disputes? has been executed by and between the parties,
1. President; they are duly bound to keep the status quo and
2. Secretary of Labor; to continue, in full force and effect, the terms
3. NLRC; and conditions of the existing agreement. The
4. Labor Arbiters as delegated by the law does not provide for any exception or
Commission; qualification as to which of the economic
5. Regional Directors; and provisions of the existing agreement shall
6. Med-Arbiters. remain in force and effect, therefore, it must be
understood as encompassing all the terms and
Requisites for Lawful Picketing conditions of the said agreement.
1. The picket should be peaceful;
2. There should be no attendant act of violence, Collective Bargaining Agreement (CBA) - The
coercion or intimidation; negotiated contract between a duly recognized
3. The ingress to (entrance) or egress from or certified exclusive bargaining agent of
(exit) the company promises should not be workers and their employer, concerning wages,
obstructed; and hours of work and all other terms and conditions
4. Public thoroughfares should not be impeded. of employment in the appropriate bargaining
unit, including mandatory provisions for
Effect of Defiance of Assumption or grievances and arbitration machineries.
Certification Orders - The defiance by the
union, its officers and members of the Labor
Secretary’s assumption of jurisdiction or
certification order constitutes a valid ground for
dismissal.
Contract-Bar Rule Unfair Labor Practice (ULP) of Employers
1. The Bureau of Labor Relations (BLR) may and Labor Organization
not entertain any petition for certification ULP of Labor Organizations
election which may disturb the 1. To grossly violate a CBA;
administration of a duly registered CBA. 2. To restrain or coerce employees in the
2. May apply provided that the CBA is exercise of their right to self-organization;
registered with the DOLE, assuming it has 3. To ask for or accept negotiation or Attorney’s
been validly ratified and contains the fees from employers as part of the settlement
mandatory provisions. of any issue in collective bargaining or any
• The benefits of a CBA are applicable to all other dispute;
employees regardless of their membership in 4. To cause or attempt to cause an employer to
the union, because to withhold the same from discriminate against an employee, including
non-union members would be to discriminate discrimination against an employee with
against them. respect to whom membership in such
• CBA provision, which is contractual in nature, organization has been denied, or to terminate
cannot prevail over the duty to respect the an employee on any ground other than the
workers’ constitutional right to religious usual terms and conditions under which
freedom. The latter has a preferred value in membership or continuation of membership
the hierarchy of values. is made available to other members;
5. To cause or attempt to cause an employer to
Freedom Period - It is the last sixty (60) days pay or deliver or agree to pay or deliver any
of the 5-year-lifetime of a CBA’s representation money or other things of value in the nature
aspect. It is the only time when, under the law, of an exaction for services not performed not
the majority status of the bargaining agent may to be performed, including the demand for a
be challenged by another union by filing the fee for union negotiations; or
appropriate petition for certification election. 6. To violate the duty or refuse to bargain
collectively with the employer, provided it is
The Labor Code provides in Article 268 that “at the representative of the employees.
the expiration of the freedom period, the 

employer shall continue to recognize the ULP of Employers - No criminal prosecution
majority status of the incumbent bargaining for unfair labor practice may be made without a
agent where no petition for certification election prior final judgment in an unfair labor practice
has been filed or pending. administrative case (filed before the Labor
Arbiter of the NLRC pursuant to Article 224(a)
Automatic renewal clause of Collective (1), LC). And even so, the final judgment would
Bargaining Agreements - Although a CBA has not be binding in the criminal case. Neither
expired, it continues to have legal effect as would such final judgment be considered as
between the parties until a new CBA has been evidence in the criminal case. At best, it could
entered into. only serve as proof of compliance with the
requirement of prior exhaustion of
Substitutionary Doctrine - A new collective administrative complaint.
bargaining agent cannot repudiate an existing It shall be unlawful for an employer to commit
collective bargaining agreement, because the any of the following unfair labor practices:
existing collective bargaining agreement must 1. To interfere with, restrain or coerce
be honored by a new exclusive bargaining employees in the exercise of their right to
representative because of the policy of stability self-organization;
in labor relations between an employer and the 2. To require as a condition of employment that
workers. a person or an employee shall not join a labor
organization or shall withdraw from one to
• Workers are allowed to negotiate wage which he belongs;
increases separate and distinct from the 3. To contract out services or functions being
legislated wage increases. performed by union members when such will
interfere with, restrain or coerce employees
in the exercise of their right to self-
organization;
4. To initiate, dominate, assist or otherwise What needs to be proven in the termination of
interfere with the formation or administration the employment of an employee based on a
of any labor organization including the union security clause:
giving of financial or other support to it or its 1. The union security clause is applicable;
organizers or officers; 2. The union is requesting for the enforcement
5. To discriminate in regard to wages, hours of of the union security provision in the CBA;
work, and other terms and conditions of and
employment in order to encourage or 3. There is sufficient evidence to support the
discourage membership in any labor unions decision to expel the employee from
organization; the union.
6. To dismiss, discharge or otherwise prejudice
or discriminate against an employee for These requisites constitute just cause for
having given or being about to give terminating an employee based on the CBAs
testimony; union security provision.
7. To violate the duty to bargain collectively;
8. To pay negotiation or attorney’s fees to the In order to violate a CBA that will constitute
union or its officers or agents as part of the ULP, the violation must be of its economic
settlement of any issue in collective provisions.
bargaining or any other dispute; and
9. To violate a collective bargaining agreement. A closed shop clause requires all employees to
be members of the bargaining union at the time
Runaway Shop - A “runaway shop” is defined of the hiring and must remain to be members of
as an industrial plant moved by its owners from good standing. While, the maintenance of
one location to another to escape union labor membership clause requires all employees who
regulations or state laws, but the term is also are union members at the time of the execution
used to describe a plant removed to a new of the CBA to maintain their membership as a
location in order to discriminate against condition of continue employment.
employees at the old plant because of their
union activities. Union dues are union funds paid by union
members, normally through check-off by the
• A runaway shop is not automatically an unfair employer on the basis of an individual written
labor practice. authorization duly signed by the employees.

 While, an agency fee is a reasonable fee
Nature of ULP - Unfair labor practices violate equivalent to the dues and other fees paid by
the constitutional right of workers and members of the recognized bargaining agent.
employees to self-organization, are inimical to
the legitimate interests of both labor and Unfair Labor Practice in Collective
management, including their right to bargain Bargaining
collectively and otherwise deal with each other CBA-Related ULPs:
in an atmosphere of freedom and mutual respect, 1. To violate the duty to bargain collectively as
disrupt industrial peace and hinder the prescribed in the Labor Code;
promotion of healthy and stable labor- 2. To pay negotiation or attorney’s fees to the
management relations. union or its officers or agents as part of the
settlement of any issue in collective
Union Security - “Union security” is a generic bargaining or any other dispute; and
term, which is applied to and comprehends 3. To violate a CBA.
“closed shop,” “union shop,” “maintenance of
membership,” or any other form of agreement Bargaining in bad faith
which imposes upon employees the obligation • The law expressly mandates that both
to acquire or retain union membership as a employers and labor organizations should
condition affecting employment. There is union bargain collectively in good faith.
shop when all new regular employees are • There is no per se test of good faith in
required to join the union within a certain period bargaining. Good faith or bad faith is an
as a condition for their continued employment. inference to be drawn from the facts. The
effect of an employer’s or a union’s actions
 individually is not the test of good-faith Casual/Temporary Employment - It is where
bargaining, but the impact of all such the employment has been fixed for a specific
occasions or actions, considered as a whole. project, the completion of which has been
• An adamant insistence on a bargaining determined at the time of the agreement of the
position to the point where the negotiations employee.
reach an impasse does not establish bad faith. Casual Employees: A casual employee is an
• It is not obligatory upon either side of a labor employee who is engaged to perform an activity
controversy to precipitately accept or agree to not usually necessary or desirable to the course
the proposals of the other. of business of the employer or merely incidental
to the business and is hired under the terms of
Refusal to bargain - Where an employer casual employment and for a definite period
suspends collective bargaining negotiations with only.
the union and placed the union funds in escrow Seasonal Employment - It is one where work
considering the intra-union dispute between two during a particular season on an activity that is
factions within the union, the employer had usually necessary or desirable in the usual
committed the unfair labor practice of refusal to business or trade.
bargain. Project Employment - It is one where work is
fixed for a specific project or undertaking the
Surface Bargaining - It is the “going through completion of which has been determined at the
the motions of negotiating” without any legal time of engagement of the employee. The period
intent to reach an agreement. Whether or not a is not the determining factor, so that even if the
party has engaged in unlawful surface period is more than one (1) year, the employee
bargaining is a question involving the latter’s does not necessarily become regular.
intent, which can only be inferred from the
totality of the challenged party’s conduct both at Probationary Employment
and away from the bargaining table. More GR: Probationary employment shall not exceed
specifically whether or not an employer’s a period of six (6) months.
conduct demonstrates an unwillingness to EXC: When it is covered by an apprenticeship
bargain in good faith or is merely hard agreement covering a longer period.
bargaining.
• If probationary employee is allowed to work
Blue-Sky Bargaining - It is the “unrealistic and beyond six (6) months, he/she becomes a
unreasonable demand in negotiations by either regular employee by operation of law.
or both labor and management, where neither • An employer may determine if the employee
concedes anything and demands the is qualified for possible inclusion in the
impossible.” regular force.

Yellow Dog Contract - To require as a Grounds for terminating a probationary

condition of employment that a person or an employee:
employee shall not join a labor organization or 1. For just and authorized causes, like regular
shall withdraw from one to which he belongs. employees; and
2. For failure to qualify as a regular employee
II. Termination of Employment in accordance with the standards
communicated at the time of engagement.
Employer-Employee Relationship
Job Contracting
Kinds of Employment When is there permissible “job contracting”?
Regular Employment (Independent contracting)
1. Involves activities which are usually 1. When the contractor carries on an
necessary or desirable to the usual trade or independent business and undertakes to
business of the employer. or contract work on his own account under his
2. Where any employee has rendered at least own responsibility according to his own
one (1) year of service. manner and method, free from the control
and direction of his employer or principal in
all matters connected with the performance
 of the work, except as to the results thereof; Misconduct - Misconduct is defined as a
and transgression of some established and definite
2. When the contractor has substantial capital rule of action, a forbidden act, a dereliction of
or investment in the form of tools, duty, willful in character and implies wrongful
equipment, machineries, work premises, and intent and not mere error in judgment.
other materials which are necessary in the
conduct of his business. • Failure to observe the required standards of
work due to inefficiency constitutes just cause
Four-Fold Test in Determining Employer- for dismissal.
Employee Relationship • Dismissal while eating at work is too harsh a
1. Selection and engagement of employee; penalty.
2. Payment of Wages; • Prolonged absence with leave due to illness
3. Power of Dismissal; and duly established by the presentation of a
4. Power of Control. medical certificate is not justified.
Control Test - The so-called control test is
commonly regarded as the most crucial and Authorized Causes
determinative indicator of the presence or 1. Installation of labor-saving devices
absence of an employer-employee relationship. (automation);
Under this test, the employer controls or has 2. Redundancy (superfluity in the performance
reserved the right to control the employee not of a particular work);
only as to the result of the work to be done but 3. Retrenchment
also as to the means and methods by which the a. That the retrenchment is reasonably
same is to be accomplished. necessary and likely to prevent business
losses which, if already incurred, are not
The power of control determines an employer- merely de minimis, but substantial,
employee relationship. serious, actual and real or, if only
expected, are reasonably imminent as
The Social Security Law coverage is perceived objectively and in good faith by
compulsory upon all employees not over 60 the employer;
years of age and their employers. b. That the employer served written notice
both to the employees and to the
Dismissal From Employment Department of Labor and Employment at
Just Causes least one month prior to the intended date
1. Serious misconduct or willful disobedience; of retrenchment;
2. Gross and habitual neglect by the employee; c. That the employer pays the retrenched
3. Fraud and willful breach by the employee of employees separation pay equivalent to
the trust reposed in him; one (1) month pay or at least one-half
4. Commission of a crime or offense against the (1/2) month pay for every year of service,
person of his employer or any immediate whichever is higher.
member of his family or his duly authorized d. T h a t t h e e m p l o y e r e x e r c i s e s i t s
representative; and prerogative to retrench employees in good
5. Other causes analogous to the following. faith for the advancement of its interest
and not to defeat or circumvent the
Gross Negligence vs Habitual Neglect - Gross employee’s right to security of tenure; and
negligence connotes want of care in the e. That the employer used fair and
performance of one’s duties. Habitual neglect reasonable criteria in ascertaining who
implies repeated failure to perform one’s duties would be dismissed and who would be
for a period of time, depending upon the retained among the employees, such as
circumstances. On the other hand, fraud and status efficiency, seniority, physical
willful neglect of duties imply bad faith on the fitness, age, and financial hardship for
part of the employee in failing to perform his certain workers.
job to the detriment of the employer and the 4. The closing or cessation of operation of the
latter’s business. establishment or undertaking and not for the
purpose of circumventing the provisions of
the Labor Code; and
5. Illness 2. A written notice of termination must be
a. If illness is incurable within six (6) served on the employee indicating that upon
months; due consideration of all the circumstances,
b. Deleterious to his health or his co- sufficient grounds have been established to
employees; and justify his termination.
c. Certification from public health officer
that illness is incurable within six (6) • The separation from work of an employee for
months. a just cause does not entitle him to the
termination pay.
• Management cannot be denied recourse to
retrenchment if it can prove the existence of Process in the dismissal of a rank-and-file
the following factors: employee for loss of confidence:
a. Substantial losses which are not merely 1. Loss of confidence should not be simulated;
de minimis in extent; 2. It should not be used as subterfuge for causes
b. Imminence of such substantial losses; which are improperly illegal or unjustified;
c. Retrenchment would effectively prevent 3. It may not be arbitrarily asserted in the face
the expected additional losses; and of overwhelming evidence to the contrary;
d. Alleged losses and expected losses must and
be proven by sufficient and convincing 4. It must be genuine, not a mere afterthought
evidence. to justify their action.
• While serious business losses generally
exempt the employer from paying separation The quantum of evidence in the commission of a
benefits, it must be pointed out that the crime is proof beyond reasonable doubt while in
exemption only refers to Article 297 of the dismissing an employee only substantial
Labor Code which is the payment of the stated evidence is required.
separation pay therein.
Two-Notice Rule
A buyer corporation is generally not bound to 1. The notice stating the particular acts or
absorb the employees of the selling corporation. omissions constituting the grounds for his
It will only be liable to the displaced employees dismissal; and
if the change of ownership is done in bad faith 2. The notice of the decision to dismiss him,
or is used to defeat the rights of labor. stating clearly the reasons thereof; the
employee must also be afforded the
The “successor employer” doctrine pertains to a opportunity to be heard and defend himself
sale of a corporation that is done in bad faith or with the assistance of his representative.
is intended to defeat the rights of labor. Thus, if
there have been no changes in the employer- Reliefs for Illegal Dismissal
employee relationship between the seller and its Prescriptive period for filing action for illegal
employees, the buyer entity becomes a dismissal - An action for reinstatement by
“successor employer” and is obliged to absorb reason of illegal dismissal must be brought
the displaced employees. within four (4) years from the time of dismissal
pursuant to Art. 1146 of New Civil Code.
Due Process
Security of Tenure Twin remedies rule - An illegally dismissed
GR: Employees may not be terminated from employee is entitled to the following twin
their regular employment. remedies:
EXC: When the ground for termination is for a 1. Full backwages and monetary benefits; and
just cause or when authorized by law. 2. Reinstatement without loss of seniority
rights.
Process to be observed in terminating the
employment on the ground of just causes: Reinstatement - Reinstatement restores the
1. A written notice must be served on the employee who was unjustly dismissed to the
employee specifying the ground or grounds position from which he was removed, that is, to
for termination and giving him reasonable his status quo ante dismissal, while the grant of
opportunity within which to explain his side; backwages allows the same employee to recover
from the employer that which he had lost by An employee may be placed under preventive
way of wages as a result of his dismissal. suspension only if her continued employment
would pose a serious and imminent threat to the
Forms of reinstatement life or property of the employer or his/her co-
Actual or Physical Payroll reinstatement employees.
reinstatement
Preventive Suspension - An employee may be
The employee shall be The employee is merely placed under preventive suspension only if her
admitted back to work; reinstated in the payroll. continued employment would pose a serious and
and
imminent threat to the life or property of the
employer or of his/her co-employees which is
Backwages not present in this problem.
Period covered by the payment of backwages
- From the date of dismissal of the employee up III. Labor Standards
to the date of actual reinstatement or the finality
of the decision (if payment of separation pay is Hours of Work
awarded in lieu of reinstatement). General principles in determining if time is
considered as hours worked:
How computed - Based on dismissed 1. All hours are hours worked/in the workplace,
employee’s salary at the time of dismissal, regardless of whether such hours are spent in
unless there is proof of automatic adjustment of productive labor or involve physical or
the salary rate. mental exertion;
2. An employee need not leave the premises of
Inclusions in the computation of backwages: the work place in order that his test period
1. Allowances and other benefits granted and shall not be counted, it being enough that he
received by the employee; stops working, whether within or outside his
2. Emergency living allowance and monetary work place;
equivalents of leaves mandated by law; and 3. If the work performed was necessary, or it
3. 13th month pay. benefitted the employer, or the employee
could not abandon his work and had no
Circumstances that prevent award of replacement, if the work was with the
backwages: knowledge of his employer or immediate
1. Death of the employee; supervisor; and
2. Physical and mental incapacity; 4. When employee is inactive by reason of
3. Business reverses; interruptions in his work beyond his control
4. Closure of business; and either:
5. Reinstatement of dismissed employee. a. If the employee’s presence at the place of
work is required; or
Constructive Dismissal b. If the interval is too brief to be utilized
When constructive dismissal is an e ff e c t i v e l y a n d g a i n f u l l y i n t h e
involuntary resignation: employee’s own interest.
1. Continued employment becomes impossible,
unreasonable, or unlikely; Overtime Work, Overtime Pay - An additional
2. There is a demotion in rank or diminution in pay for work rendered or performed in excess of
pay; or eight (8) hours a day by employees covered by
3. Clear discrimination, insensibility or disdain the Eight-hour Labor Law.
by an employer becomes unbearable to the
employee. The Labor Code is equally applicable to non-
profit institutions. A covered employee who
Floating status of an employee - It should last works beyond eight (8) hours is entitled to
not more than the legally prescribed period of overtime compensation.
six (6) months. If it exceeds, he may be
considered to have been illegaly dismissed from
service. He is then entitled to corresponding
benefits for his separation.
Overtime on ordinary working day - Regular Under-time not offset by overtime - Under-
wage plus at least twenty five percent (25%); on time work on any particular day shall not be
a holiday or rest day plus at least thirty percent offset by overtime work on any other day.
(30%). Permission given to the employee to go on leave
on some other day of the week shall not exempt
Computation of additional compensation - the employer from paying the additional
For purposes of computing overtime and other compensation.
additional remuneration, the “regular wage” of
an employee shall include the cash wage only, Normal Hours of Work
without deduction on account of facilities GR: The normal hours of work of any employee
provided by the employer. shall not exceed eight (8) hours a day. The law
prescribes a maximum and not a minimum.
Emergency overtime work Thus, part-time work, or a day’s work less than
When overtime work may be required of an eight hours, is not prohibited.
employee by the employer: EXC: Health personnel in cities and
1. The country is at war or other national or municipalities with a population of at least one
local emergency declared by the National million (1,000,000) or in hospitals and clinics
Assembly or the Chief Executive; with a bed capacity of at least one hundred (100)
2. Necessary to prevent loss of life or property shall hold regular office hours for eight (8)
or imminent danger to public safety due to hours a day, for five (5) days a week, exclusive
impending emergency in the locality caused of time for meals, except where the exigencies
by serious accidents, disaster or calamity; of the service require that such personnel work
3. Urgent work is needed to be performed on for six (6) days or forty-eight (48) hours, in
machines, installations, or equipment, to which case, they shall be entitled to an
avoid serious loss or damage to the employer additional compensation of at least thirty percent
or similar nature; (30%) of their regular wage for work on the
4. Necessary to prevent loss or damage to sixth day.
perishable goods; or
5. Completion or continuation of the work This shall include resident physicians, nurses,
started before the eighth hour is necessary to nutritionists, dietitians, pharmacists, social
prevent serious obstruction or prejudice to workers, laboratory technicians, paramedical
the business of the employer. technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.
• Overtime pay does not preclude night
differential pay and overtime rate based on • Medical secretaries are also considered clinic
regular wage. personnel.
No waiver of overtime pay
GR: The right to overtime pay cannot be Compressed Work Week
waived. Conditions when a “compressed work week”
EXC: When the waiver of overtime pay is in schedule may be authorized:
consideration of benefits and privileges which 1. The employee voluntarily agrees to it;
may be more than what will accrue to them in 2. There is no diminution in their weekly or
overtime pay. monthly take home pay or fringe benefits;
3. The benefits are more than or at least
Composite or Package Pay is not per se illegal commensurate or equal to what is due the
- Composite or “package pay” or “all-inclusive employees without the compressed work
salary” is an arrangement where the overtime week;
pay is already built-in. 4. Overtime pay will be due and demandable
when they are required to work on those days
A change in work schedule is considered as a which should have ceased to be working
management prerogative. The Labor Code in days because of the compressed work week
Article 97 likewise does not guarantee a certain schedule;
number of hours of overtime work. 5. No strenuous physical exertion, or that they
are given adequate rest periods;
6. It must be for a temporary duration as • If waiting is an integral part of his work or the
determined by the Department of Labor. employee is required or engaged by the
employer to wait.
Compensable Hours of Work • Required to remain on-call in the employer’s
1. All time when employee is required to be on premises or so close thereto that he cannot use
duty or to be at a prescribed workplace; and the time effectively and gainfully for his own
2. All time when an employee is suffered or purpose.
permitted to work.
Compensable working hours “while on call” -
Night Work, Night Shift Differential (RA If the employee cannot use the time he is
10151) required to be on call, effectively and gainfully
Night Worker - A person whose work requires for his own purpose, he is considered working
the performance of a substantial number of and therefor he should be for such hours.
hours of night work which exceed a specified
limit. This limit shall be fixed by the Secretary Part-Time Work - Hours of work and
of Labor. substantially shorter than those considered as
normal in the establishment.
GR: There shall be an additional compensation
of ten percent (10%) of an employee’s regular Exclusions - This excludes those forms of
wage for each hour of work performed between employment which, although referred to as part-
10:00 pm and 6:00 am. time work, are in particular, irregular, temporary
EXC: or intermittent employment, or in cases where
1. The government and GOCCs; hours of work have been temporarily reduced
2. Retail and service establishments regularly for economic, technical or structural reasons.
employing not more than five (5) workers; The wage and benefits of a part-time worker are
3. Domestic helpers and persons in the personal in proportion to the number of hours worked.
service of another; Part time workers are entitled to a service
4. Managerial employees as defined in Book incentive leave.
Three;
5. Field personnel and other employees whose Contract for a Piece of Work - If the goods are
time and performance is unsupervised by the to be manufactured especially for the customer
employer or on contract basis, purely and upon his special order, and not for the
commission basis, or who are paid a fixed general market, it is a contract for a piece of
amount for performing work irrespective of work.
the time performance.
Piece-rate employees - Those who are paid by
Rest days (night-off) - Every employee is result or other non-time basis. As such they are
entitled to a weekly night off (usually Saturday not entitled to overtime pay for work done
evening) or a weekly rest period of twenty-four beyond eight hours if the piece rate formula is
(24) hours beginning at the start of the night an accord with the labor department’s approved
shift. rates.

Work on special days - Entitles an employee to Wages

the premium pay on special days and holidays. 1. A remuneration or earning, however
designated, expressed in terms of money;
Overtime pay - It is given for overtime work 2. Fixed or ascertained on a time, task, piece, or
done during day or night while night commission basis, or other method of
differential: given only for work done between calculating;
10:00 pm and 6:00 am. 3. Payable by an employer to an employee;
4. Written or unwritten contract of employment
Waiting Time - It is considered as working time for work;
if waiting is an integral part of employee’s work 5. Fair and reasonable value, determined by
or the employee required or engaged by the Secretary of DOLE, of board, lodging, or
employer to wait. other facilities customarily furnished by the
employer to employer;
6. Fair and reasonable value - not include any Issue of wage distortion raised in a notice of
profit to the employer, or to any person strike - Any issue involving wage distortion
affiliated with the employer. shall not be a ground for a strike or lockout. The
legislative intent is to solve wage distortion
The law requires that compensation must be in problems through voluntary negotiation or
legal tender. arbitration.

No Work, No Pay Principle Procedural Remedies in Wage Distortion

GR: A fair day’s wage for a fair day’s labor or Disputes
no work, no pay. Organized Unorganized
EXC: Laborer was able, willing and ready to Establishment Establishment
work but was illegally locked out, suspended or
dismissed, or otherwise illegally prevented from Follow the grievance Employer and workers,
procedure as provided for with the aid of the NCMB
working.
in the CBA, ending in shall endeavor to correct
voluntary arbitration. the wage distortion, and if
Equal work for equal pay - If an employer they fail, to submit the
accords employees the same position and rank, issue to the NLRC for
the presumption is that these employees perform compulsory arbitration.
equal work.
EXC:
1. Farm tenancy or leasehold; • The practice of directly deducting payments
of debts from the employees’ wages is not
2. Household or domestic helpers, including
allowed. The Labor Code absolutely prohibits
family drivers and other persons in the
the withholding of wages and kickbacks. It
personal service of another;
provides for no exception.
3. Homeworkers engaged in needlework;
4. Workers in registered cottage industries who
Grounds when a wage order may be reviewed
actually work at home;
on appeal by the National Wages and
5. Workers in registered cooperatives when so
Productivity Commission:
recommended by the Bureau of Cooperative
1. Grave abuse of discretion;
Development upon approval of the Secretary
2. Non-conformity with prescribed guidelines
of Labor;
and/or procedures; or
6. Workers in registered barangay micro
3. Questions of law.
business enterprise.
GR: The minimum wage prescribed by law for
Wage Distortion
persons with disability is the wage that the
Elements:
parties agreed upon, depending on the capability
1. An existing hierarchy of positions with
of the disabled.
corresponding salary rates;
EXC: If the employee is qualified to work and
2. A significant change or increase in the salary
the disability has nothing to do with the work,
rate of a lower pay class without a
the employee is entitled to 100%.
corresponding increase in the salary of a
higher one;
Leaves
3. The elimination of the distraction between
Service Incentive Leave (SIL) Pay
two groups or classes; and
GR: Every employee who has rendered at least
4. The distortion exists in the same region of
one (1) year of service shall be entitled to a
the country.
yearly service incentive leave of five (5) days
with pay.
How is wage distortion settled? Any dispute
EXC:
arising from wage distortion shall be resolved
1. Government employees, including GOCC
through the grievance procedure as provided for
employees;
in the applicable collective bargaining
2. Domestic helpers and persons in the personal
agreement and, if the dispute remains
service of another;
unresolved, then through voluntary arbitration.
3. Managerial employees as defined in Book 3
of the Labor Code;
4. Field personnel or contract basis, purely Maternity Leave
commission basis, or those who are paid a Coverage - Every woman in the private sector,
fixed amount for performing work whether married or unmarried, is entitled to
irrespective of the time spent in its maternity leave.
performance; Those already enjoying the
benefit herein provided; Conditions for Entitlement:
5. Enjoying vacation leave with pay of at least 1. A female employee employed at the time of
five (5) days; or delivery, miscarriage or abortion;
6. Establishments regularly employing less than 2. She has paid at least three (3) monthly
ten (10) employees. contributions in the 12-month period
immediately preceding the semester of her
• Teachers of private schools on contract basis childbirth, or miscarriage; and
are entitled to service incentive leave; and 3. Employee notifies employer of her
• Piece-rate workers are not entitled to service pregnancy and the probable date of her
incentive leave. However, the Supreme Court childbirth, which notice shall be transmitted
held that petitioners are entitled to service to the SSS.
incentive leave. The Court looked at several
factors which led them to conclude that Maternity Leave Benefits - Equivalent to
petitioners, although compensated on a per 100% of her average daily salary credit for:
piece basis, were regular employees of private 1. Sixty (60) days for normal delivery; or
respondents. 2. Seventy-eight (78) days for caesarean section
delivery.
Meaning of “one year of service” - Service for
not less than twelve (12) months, continuous or • This benefit shall not be included in the
broken, from the date the employee started computation of 13th month pay.
working, including authorized absences and paid
regular holidays unless the working days in the Availment - The Social Security Law, which
establishment, as a matter of practice or policy, administers the Maternity Benefit Program does
or that provided for in the employment contract, not require the relationship between the father
is less than twelve (12) months, in which case and the mother of the child to be legitimate. The
said period shall be considered as one year. law is compensating the female worker because
Entitlement - The Service Incentive Leave shall of her maternal function and resultant loss of
not be made a subject of arbitration or any court compensation. The law is morality free.
or administrative action.
Other Conditions:
The Service Incentive Leave is commutable to 1. Employer shall advance the payment subject
its money equivalent if not used or exhausted at to reimbursement by the SSS within thirty
the end of the year. (30) days from filing of leave application;
2. Availment shall be a bar to the recovery of
If the employee wishes to accumulate his leave sickness benefits provided by the SSS law
credits and opts for its commutation upon his for the same period for which daily maternity
resignation or separation form employment, his benefits have been received; and
cause of action to claim the whole amount of his 3. Employee may only avail of benefit for the
accumulated service incentive leave shall arise first four (4) deliveries or miscarriages.
when the employer fails to pay such amount at
the time of his resignation or separation from Under the SSS Act, the employee is required to
employment. report to its employer about a pregnancy and at
least paid three monthly contributions during the
SIL on piece-rate workers - Piece-rate workers 12-month period immediately preceding her
are not entitled to SIL pay because, as piece-rate miscarriage. The fact that she got pregnant
workers being paid at a fixed amount for outside wedlock will not bar her claim since the
performing work irrespective of the time SSS act does not distinguish.
consumed in the performance thereof, they fall
under one of the exceptions stated in Section
1(d), Rule V, Book III, IRR of Labor Code.
Sanctions: from the expected date of delivery by his
1. That if the employee should give birth or pregnant spouse; and
suffer miscarriage without the required 4. His wife has given birth or suffered a
contributions having been remitted for her by miscarriage.
her employer to the SSS; or
2. Without the latter having been previously • In case of miscarriage, prior application for
notified by the employer of time of the paternity leave shall not be required.
pregnancy, then the employer shall pay to the
SSS damages equivalent to the benefits Non-conversion to cash - If not availed of, it
which said employee member would shall not be convertible to cash and shall not be
otherwise have been entitled to. cumulative.

Paternity Leave Crediting of existing benefits - If the existing

Coverage and Purpose - Granted to all married paternity leave benefit under the CBA, contract,
male employees in the private and public or company policy is greater than seven (7)
sectors, regardless of their employment status calendar days the greater benefit shall prevail.
(e.g. probationary, regular, contractual, project
basis). The purpose is to lend support to his wife Where a company policy, contract, or CBA
during her period of recovery and/or in nursing. provides for an emergency or contingency leave
without specific provisions on paternity leave,
Benefits: the employer shall grant to the employee seven
1. Applies to the first four (4) deliveries of the (7) calendar days of paternity leave.
employee’s lawful wife with whom he is
cohabiting; Parental Leave - Leave granted to a solo parent
2. It shall be for seven (7) calendar days, with to enable him/her to perform parental duties.
full pay, consisting of basic salary and
mandatory allowances fixed by the Regional Coverage - Any solo parent or individual who is
Wage Board, if any, provided that his pay left alone with the responsibility of parenthood
shall not be less than the mandated minimum due to:
wage; and 1. Giving birth as a result of rape or other
3. Availment should not be later than sixty (60) crimes against chastity;
days after the date of delivery. 2. Death of spouse;
3. Spouse is detained for at least one (1) year;
• Cohabiting means the obligation to live 4. Physical and/or mental capacity of spouse;
together. If the spouses are not physically 5. Legal separation or de facto separation for at
living together because of the workstation or least one (1) year; provided, that he/she is
occupation, the male employee is still entitled. entrusted with the custody of the children;
6. Declaration of nullity or annulment of
Usage of the benefit - Usage must be after the marriage as decreed by a court or by a
delivery, without prejudice to an employer’s church; provided, that he/she is entrusted
policy of allowing the employee to avail of the with the custody of the children;
benefit before or during the delivery, provided 7. Abandonment of spouse for at least one (1)
that the total shall not be more than seven (7) year;
days for each covered delivery. 8. Unmarried father/mother who has preferred
to keep and rear his/her child instead of
Conditions for entitlement - A married giving them up to a welfare institution;
employee is entitled to paternity leave benefit 9. Any other person who solely provides
provided that he has met the following parental care and support to a child or
conditions; children provided that:
1. He is an employee at the time of the delivery a. said person is duly licensed as a foster
of his child; parent by the (DSWD); or
2. He is cohabiting with the mother of his child; b. said person is a duly appointed legal
3. He has applied for paternity leave with his guardian by the court; and
employer within a reasonable period of time 10.Any family member who assumes the
responsibility of head of family as a result of
 the death, abandonment, disappearance, or gross monthly compensation following surgery
prolonged absence of the parents or solo caused by gynecological disorders.
parent; provided, that such abandonment be
for at least one (1) year. Gynecological disorder - Disorders that would
require surgical procedures such as, involving
Conditions for entitlement: female reproductive organs such as the vagina,
1. Rendered at least one (1) year of service, cervic, uterus, fallopian tubes, ovaries, breast,
continuous or broken; adnexa and pelvic floor, as certified by a
2. Notified his/her employer that he/she will competent physician. It shall also include
avail himself/herself of it, within a hysterectomy, ovariectomy, and mastectomy.
reasonable period of time; and
3. Has presented to employer a Solo Parent Gross monthly compensation - The monthly
Identification Card, which may be obtained basic pay plus mandatory allowances fixed by
from the DSWD office where he/she resides. the regional wage boards.

Availment - Additional benefit which shall be An aggregate service of at least six (6) months
for seven (7) working days every year, with full within a 12-month period prior to surgery is
pay, consisting of basic salary and mandatory sufficient to entitle her to avail of the special
allowances. leave benefit.

Grant of flexible work schedule Conditions for Entitlement of Special Leave -

GR: The employer shall provide for a flexible Applies to any female employee, regardless of
working schedule for solo parents. age and civil status, where:
EXC: 1. She has rendered at least six (6) months’
1. The same shall not affect individual and continuous aggregate employment service
company productivity; and for the last twelve (12) months prior to
2. Any employer may request exemption from surgery;
the above requirements from the DOLE on 2. She has filed an application for special leave;
certain meritorious grounds. and
3. She has undergone surgery due to
Termination of the benefit - A change in the gynecological disorders as certified by a
status or circumstance of the parent claiming the competent physician.
benefit shall terminate his/her eligibility for this
benefit. Application for Special Leave
Application before surgery - The employee
Leaves for Victims of Violation of Ra 9262 must file her application for leave with her
Coverage and purpose - Granted to women employer within a reasonable period of time
employees who are victims of violence as before the expected date of surgery.
defined under RA 9262. They are entitled to
take a paid leave of up to ten (10) days, which Application after surgery - Prior application
covers the days that the employee has to attend for leave shall not be necessary in cases
to medical or legal concerns. requiring emergency surgical procedure,
provided that the employer shall be notified
Requirement for entitlement - The only verbally or in written form within a reasonable
requirement is for the victim-employee to period of time.
present to her employer a certification from the Period of entitlement - The two (2) months’
barangay chairman or barangay councilor or special leave is the maximum period of leave
prosecutor or the Clerk of Court, as the case with pay that a woman employee may avail of
may be, that an action relative to the matter is under RA 9710. The special leave shall be
pending. granted to the qualified employee after she has
undergone surgery.
Special Leave Benefits for Women - A female
employee’s leave entitlement of two (2) months
with full pay from her employer based on her
Frequency of Availment - A woman employee one whole year, if his/her separation from the
can avail of the Special Leave Benefit for every service is due to ay of the following authorized
instance of surgery due to gynecological causes:
disorder for a maximum total period of two (2) 1. Retrenchment to prevent losses;
months per year. 2. Closure or cessation of operation not due to
serious losses or financial reverses; and
Non-commutation of the benefit - The Special 3. Employee is suffering from a disease not
Leave Benefits shall be non-cumulative and curable within a period of six (6) months and
non-convertible to cash, unless otherwise prejudicial to his/her health or to the health
provided in the CBA. of co-employees.

Separation Pay - It is an amount that an • In no case shall an employee gets less than
employee receives at the time of his severance one (1) month separation pay if the separation
from service and is designed to provide for him is due to the above stated causes and he/she
during the period that he is looking for another has served for at least six (6) months.
employment.
One-month pay per year of service - An
GR: If dismissed for cause as defined therein, employee is entitled to separation pay equivalent
not entitled to separation pay. to his/her one-month pay for every year of
service, a fraction of at least six (6) months
There is no obligation to pay separation pay if being considered as one whole year, if due to
the closure is not a unilateral and voluntary act any of the following:
of the employer. 1. Installation of labor-saving devices;
2. Redundancy;
If the closure or cessation of operation of an 3. Impossible reinstatement of the employee to
establishment is due to serious business losses his former position not attributable to the
or financial reverses, the employees are not fault of the employer, as when the
entitled to separation pay. reinstatement ordered by a competent
authority cannot be implemented due to
EXC: An employee who voluntarily resigns is closure or cessation of operations of the
not entitled to separation pay, unless stipulated establishment/employer, or the position to
in the employment contract or the collective which he/she is to be reinstated no longer
bargaining agreement or is sanctioned by exists and there is no substantially equivalent
established practice or policy of the employer. position in the establishment to which he/she
can be assigned.
Award - Instances when an illegally dismissed
employee may be awarded separation pay in lieu Notice of termination - Notice must be a
of reinstatement: written notice to the employee and the DOLE,
1. In case the establishment where the through its regional office having jurisdiction
employee is to be reinstated has closed or over the place of business, at least one (1) month
ceased operations; before the intended date thereof.
2. Where the company has been declared
insolvent; Computation of separation pay - Basis shall
3. If the former position no longer exists at the be on the employee’s latest salary rate. It should
time of reinstatement for reasons not not just the basic salary but also the regular
attributable to the fault of the employer; and allowances that an employee has been receiving.
4. Where the employee decides not to be
reinstated as when he does not pray for Employment of Minors (Labor Code, RA
reinstatement in his complaint or position 7678, RA 923)
paper. Constitutional Bases
1. The State recognizes the vital role of the
Amount - An employee is entitled to receive youth in nation-building and shall promote
separation pay equivalent to one-half (1/2) and protect their physical, moral, spiritual,
month pay for every year of service, a fraction intellectual, and social well-being;
of at least six (6) months beings considered as
2. It shall inculcate in the youth patriotism and Hazardous workplaces:
nationalism, and encourage their 1. Exposure to dangerous environmental
involvement in public and civic affairs. elements, contaminants;
2. Construction work, deep sea fishing, and
GR: Children below fifteen (15) years shall not mechanized farming;
be employed. 3. Handling of explosives and other pyrotechnic
EXC: products;
1. Child workers directly under the sole 4. Exposure to use of heavy power-driven
responsibility of his parents or legal guardian machinery; and
and where only members of the employer’s 5. Exposure to or use of power-driven tools.
family are employed, provided that:
a. His employment does not endanger his Maximum working hours
life, safety, health and morals; Age Bracket Daily Max Weekly Max
b. I t d o e s n o t i m p a i r h i s n o r m a l
development; and Below 15 years
4 hours 20 hours
c. It shall provide the said minor child with old
the prescribed primary and/or secondary 15 to below 18
8 hours 40 hours
education; years old
2. Child’s employment of participation in
public entertainment or information through Night work prohibition
cinema, provided that:
Age Bracket Prohibited Hours
a. Employment does not involve as or
commercials, promoting alcohol, tobacco Below 15 years old 8 pm to 6 am
and its by-products or violence; 15 years old to below 18 10 pm to 6 am
b. The employment contract is concluded by years old
the child’s parent or guardian, with the
express agreement of the child, if
possible, and approved by the DOLE; Retirement Pay
c. The employer shall ensure the protection, Retirement Pay Law (RA 7641, amending Art
health, safety and morals of the child; 302 of the Labor Code)
d. The employer shall institute measures to Rationale - Enacted as a labor protection
prevent the child’s exploitation or measure and as a curative statute that - absent a
discrimination; and retirement plan devised by, an agreement with,
e. The employer shall formulate and or a voluntary grant from an employer - can
implement, subject to the approval and respond, in part at least, to the financial well-
supervision of competent authorities, a being of workers during their twilight years
continuing program for training and skill soon following their life of labor.
acquisition of the child.
Requisites for retroactivity:
1. The claimant for retirement benefits was still
• In the exceptional cases, the employer shall in the employ of the employer at the time the
first secure a work permit from DOLE.
statute took effect; and
Employment of children from 15 to 18 years 2. The claimant had complied with the
of age - Allowed but restricted to non-hazardous requirements for eligibility for such
undertakings. retirement benefits under the statute.

RA 10361 known as the Kasambahay law Eligibility - All employees in the private sector,
defines “Domestic Worker” as one that does not regardless of their position, designation, or
include children who are under foster family status, and irrespective of the method by which
arrangement, and are provided access to their wages are paid. The only exceptions are:
education and given allowance incidental to 1. Employees covered by the Civil Service
education. Law;
2. Domestic helpers and persons in the personal
service of another; and
3. Employees in retail, service and agricultural (1/2) month salary for every year of service, a
establishments or operations regularly fraction of at least six (6) months being
employing not more than ten employees. considered as one whole year.

Coverage - All employees in the private sector, For the purpose of computing retirement pay,
regardless of their position, designation, or one-half month salary shall include all of the
status, and irrespective of the method by which following:
their wages are paid. 1. Fifteen (15) days salary based on the latest
salary rate;
Exclusions: 2. Cash equivalent of five (5) days of service
1. Employees covered by the Civil Service Law incentive leave; and
and its regulations; 3. One-twelfth (1/12) of the 13th month pay.
2. Domestic helpers and persons in the personal (1/12 x 365/12 = .083 x 30.41 = 2.52).
service of another;
3. Employees in retail, service and agricultural Thus, one-half month salary is equivalent to
establishments or operations regularly 22.5 days.
employing not more than ten (10)
employees; and EXC:
4. Employees in an establishment that grants 1. Retail, service and agricultural establishment
more than what the Labor Code grants. or operations employing not more than ten
(10) employees or workers who are
Retirement Pay Law vis-a-vis Retirement exempted from the coverage of the provision
Plan - A retirement plan partakes the nature of a on retirement benefits in the Labor Code; and
contract Retirement Pay Law only applies when: 2. Where there is a retirement plan of the
1. There is no collective bargaining agreement employer that grants more than what the
or other applicable employment contract Labor Code grants.
providing for retirement benefits for an
employee; or Retirement Benefits under a CBA or
2. There is a collective bargaining agreement or Applicable Contract - Any employee may
other applicable employment contract retire or be retired by his/her employer upon
providing for retirement benefits for an reaching the age established in the CBA;
employee, but it is below the requirements Provided, that such retirement benefits shall not
set by law. be less than the retirement pay provided under
RA 7641.
Age of Retirement
1. Where there is a CBA or other applicable Retirement benefits of workers who are paid
employment contract (or a retirement plan): by results - The basis for the determination of
Any employee may be retired upon reaching the salary for fifteen (15) days shall be their
the retirement age established therein; or average daily salary (ADS). The ADS is derived
2. Where there is no CBA/retirement plan: by dividing the total salary or earnings for the
a. Optional Retirement: An employee, upon last twelve (12) months reckoned from the date
reaching the age of 60 years or more (but of retirement by the number of actual working
not beyond 65 years), who has served at days in that particular period, provided that the
least five (5) years in the said determination of rates of payment by results are
establishment, may retire. in accordance with established regulations.
b. Compulsory retirement: Upon reaching
the age of 65 (compulsory retirement Retirement benefit of part-time workers -
age). Part-time workers are also entitled to retirement
pay of one-month salary for every year of
Mining Employee - Required to have rendered service after satisfying the following conditions
at least 5 years of service in order to be entitled precedent for optional retirement:
to retirement benefits. 1. There is no retirement plan between the
employer and the employee; and
Amount of retirement pay - The minimum
retirement pay shall be equivalent to one-half
2. The employee has reached the age of sixty transportation, school projects and school
(60) years, and has rendered at least five (5) activities.
years of service. • A househelper or a laundry woman, as well as
a gardener, driver, or a houseboy who work in
Taxability the staff house of a company are not
GR: Any provision of law to the contrary househelpers. The criterion is not the nature to
notwithstanding the retirement benefits received the work but the personal comfort and
by officials and employees of private firms, enjoyment of the family of the employer in
whether individual or corporate, in accordance the home of said employer.
with a reasonable private benefit plan
maintained by the employer: Benefits of househelpers
1. Shall be exempt from all taxes; and 1. Compensation - Minimum wage:
2. S h a l l n o t b e l i a b l e t o a t t a c h m e n t , a. NCR - P2,500.00 a month;
garnishment, levy or seizure by or under any b. C h a r t e r e d c i t i e s a n d f i r s t c l a s s
legal or equitable process whatsoever. municipalities - P2,000.00 a month; and
EXC: c. Others - P1,500.00 a month.
1. to pay a debt of the official or employee 2. Leave Benefits - A domestic worker who has
concerned to the private benefit plan; and rendered at least one (1) year of service shall
2. to pay a debt arising from liability imposed be entitled to an annual service incentive
in a criminal action. leave of five (5) days with pay: Provided,
That any unused portion of said annual leave
Reasonable private benefit plan - A pension, shall not be cumulative or carried over to the
gratuity, stock bonus or profit sharing plan succeeding years. Unused leaves shall not be
maintained by an employer for the benefit of convertible to cash.
some or all of his officials and employees, 3. SSS, PhilHealth, PAG-IBIG - A domestic
wherein contributions are made by such worker who has rendered at least one (1)
employer or officials and employees, or both, month of service shall be covered by the
for the purpose of distributing to such officials Social Security System (SSS), the Philippine
and employees the earnings and principal of the Health Insurance Corporation (PhilHealth),
fund thus accumulated, and wherein it is and the Home Development Mutual Fund or
provided in said plan that at no time shall any PAG-IBIG, and shall be entitled to all the
part of the corpus or income of the fund be used benefits in accordance with the pertinent
for, or be diverted to, any purpose other than for provisions provided by law.
the exclusive benefit of the said officials and
employees. Premium payments or contributions shall be
shouldered by the employer. However, if the
Househelpers domestic worker is receiving a wage of Five
Employment of Househelpers has been repealed thousand pesos (P5,000.00) and above per
by RA 10631, otherwise known as Domestic month, the domestic worker shall pay the
Workers Act or Batas Kasambahay. proportionate share in the premium payments or
contributions, as provided by law.
Domestic worker or “kasambahay” - Any
person engaged in domestic work within an Rights and Privileges
employment relationship such as, but not limited 1. Standard of treatment: The employer or any
to: general househelp, nursemaid or “yaya”, member of the household shall not subject a
cook, gardener, or laundry person, but shall domestic worker to any kind of abuse nor
exclude any person who performs domestic inflict any form of physical violence or
work only occasionally or sporadically and not harassment or any act tending to degrade the
on an occupational basis. dignity of a domestic worker;
2. Board, lodging and medical attendance:
• The term shall not include children who are Basic necessities to include at least 3
under foster family arrangement, and are adequate meals a day and humane sleeping
provided access to education and given an arrangements; appropriate rest and assistance
allowance incidental to education, i.e. “baon”, in case of illnesses and injuries sustained
during service (without loss of benefits);
3. Privacy of communication and personal connection with the domestic worker’s
effects; work;
4. Access to outside communication: Costs to b. Gross or habitual neglect or inefficiency
be borne by the domestic worker (unless in the performance of duties;
waived by the employer); c. Fraud or willful breach of the trust
5. Right to education and training: An reposed by the employer on the domestic
opportunity to finish basic education and worker;
may allow access to alternative learning d. Commission of a crime or offense by the
systems and, as far as practicable, higher domestic worker against the person of the
education or technical and vocational employer or any immediate member of
training; the employer’s family;
6. Rest period: Aggregate daily rest period of 8 e. Violation of the terms and conditions of
hours per day, and at least 24 consecutive the employment contract and other
hours of rest in a week. standards set forth under the law;
f. Any disease prejudicial to the health of
Employment Certification - Upon the the domestic worker, the employer, or
severance of the employment relationship, the member/s of the household; and
employer shall issue the domestic worker within g. Analogous causes.
five (5) days from request a certificate of
employment indicating the nature, duration of • If the duration of the domestic service is not
the service and work performance. determined in stipulation or by the nature of
the service, the employer or the domestic
Termination of service worker may give notice to end the working
GR: Neither the domestic worker nor the relationship five (5) days before the intended
employer may terminate the contract before the termination of the service.
expiration of the term. • The domestic worker and the employer may
EXC: mutually agree upon written notice to pre-
1. The domestic worker may terminate the terminate the contract of employment to end
employment relationship at any time before the employment relationship.
the expiration of the contract for any of the
following causes: Reliefs for unjust termination:
a. Verbal or emotional abuse by the 1. If the domestic worker is unjustly dismissed:
employer or any member of the The domestic worker shall be paid the
household; compensation already earned plus the
b. Inhuman treatment including physical equivalent of fifteen (15) days work by way
abuse by the employer or any member of of indemnity.
the household; 2. If the domestic worker leaves without
c. Commission of a crime or offense against justifiable reason. Any unpaid salary due not
him/her by the employer or any member exceeding the equivalent fifteen 915) days’
of the household; work shall be forfeited.
d. Violation by the employer of the terms
and conditions of the employment In addition, the employer may recover from the
contract and other standards set forth domestic worker costs incurred related to the
under the law; deployment expenses, if any, provided that the
e. Any disease prejudicial to the health of service has been terminated within 6 months
the domestic worker, the employer, or from the domestic worker’s employment.
member/s of the household; and
f. Analogous causes. Holiday Pay/Premium Pay
2. An employer may terminate the services of Holiday Pay - A one-day given by law to an
the domestic worker at any time before the employee even if he does not work on a regular
expiration of the contract, for any of the holiday.
following causes:
a. Misconduct or willful disobedience of the This gift of a day’s pay is limited to each of the
lawful order of the employer in 12 regular holidays.
Coverage Special (Non-Working Days):
GR: All employees are entitled to holiday pay. 1. Black Saturday - March 30th;
EXC: 2. Ninoy Aquino Day - August 21st;
1. Those in the government and GOCC; 3. All Saints Day - November 1st;
2. Those in retail and service establishment 4. Additional special (Non-working) days -
regularly employing less than 10 workers; November 2nd;
3. Domestic helpers and persons in the personal 5. December 24th; and
service of another; 6. Last Day of the Year - December 31st.
4. Managerial employees; and
5. Field personnel, including those who are Special Holidays (For all Schools);
engaged on task or contract basis, purely 1. EDSA Revolution Anniversary - February
commission basis, or those who are paid a 25th; and
fixed amount for performing work. 2. PD 1083. (Code of Muslim Personal Laws)

The employer may require an employee to work • There should be no distinction between
on any holiday but such employee shall be paid Muslims and non-Muslims as regards
a compensation equivalent to twice his regular payment of benefits for Muslim holidays.
rate.
Computation of Holiday pay
Day Compensation GR: An employer may require an employee to
work on any holiday but such employee shall be
Work on any regular 200% of regular daily paid a compensation equivalent to twice his
holiday, not exceeding 8 wage regular rate.
hours
Work on any regular 200% of regular daily According to the LC, IRR and
holiday, if it exceeds 8 wage (for the 1st 8 hours) Memorandums:
hours/overtime + 30% of hourly rate on Work on special holiday Regular daily wage + 30%
said day thereof
Work on any regular 200% of regular daily
holiday which falls on the wage + 30% of such
scheduled rest day, not amount
• According to DOLE Memorandum Circular
1-04, a “special holiday”/“special day”
exceeding 8 hours
includes the National Special Days, and
Work on any regular 200% of regular daily declared special days such as Special Non-
holiday which falls on wage + 30% of such working Holiday, Special Public Holiday and
scheduled rest day, if it amount + 30% of hourly Special National Holiday. Such days are
exceeds 8 hours/overtime rate on said day entitled to the rates prescribed above. These
Work on special holiday Regular daily wage + 50% days are not the same as a special working
and rest day thereof holiday.
• A special working holiday is considered an
ordinary working day, so there is no premium
Regular Holidays:
pay.
1. New Year’s Day - January 1st;
2. Maundy Thursday - March 28th;
Double holiday pay - According to “DOLE
3. Good Friday - March 29th;
Explanatory Bulletin on Worker’s Entitlement to
4. Araw ng Kagitingan - April 9th;
Holiday Pay on 9 April 1993,” if two holidays
5. Labor Day - May 1st;
fall on the same day:
6. Independence Day - June 12th;
1. If unworked, 200% of basic wage; and
7. National Heroes Day - August 26th (Last
2. IF work, 300% of basic wage.
Monday of August);
8. Bonifacio Day - November 30th;
9. Christmas Day - December 25th;
10.Rizal Day - December 30th;
11.Eid’l Fitr - date to be determined later;
12.Eid’l Adha - date to be determined later.
 Successive holiday pay the periods shall be compensated with this
Employee entitled to holiday pay for both Rule; and
days, if: 2. An employee is entitled to holiday pay for
1. Present on day immediately preceding first the regular holidays falling within the period
holiday; or in cases of temporary shutdowns or cessation
2. Works on first holiday, which entitles him to of work, when:
pay on second holiday. a. An annual inventory; or
b. Repair or cleaning of machineries and
Divisors - Assumes important role in equipment is undertaken.
determining whether or not holiday pay is
already computed. The employer may not pay his employees for
1. Monthly paid employees are not entitled to the regular holidays during the suspension of
the holiday pay if their total annual income is work if:
divided by 365 days resulting in a wage 1. The cessation of operation is due to business
which is beyond the minimum wage per day reverses; and
because they are considered paid every day 2. Authorized by the Secretary of Labor.
of the year including holidays, rest days, and
other non-working days. The 365 days are as Teachers , Piece workers, Seafarers, Seasonal
follows: workers, etc.
365 days = 296 days - ordinary days 1. Private school teachers, including faculty
52 days - rest days members of colleges and universities, may
12 days - regular holidays not be paid for the regular holidays during
5 days - special holidays semestral vacations. They shall, however, be
2. As a general rule, for a company with a 6- paid for the regular holidays during
day working schedule the divisor 313 already Christmas vacation;
means that the legal holidays are included in 2. Where a covered employee is paid by results
the monthly pay of the employee. The divisor or output, such as payment on piece work,
is arrived at by subtracting all Sundays from his holiday pay shall not be less than his
the total number of calendar days in a year. average daily earnings for the last seven (7)
3. As a general rule for a company with a 5-day actual working days preceding the regular
working schedule, the divisor 278 means that holiday; Provided, However, that in no case
the holiday pay is already included in the shall the holiday pay be less than the
monthly salary of the employee. applicable statutory minimum wage rate;
3. Seasonal workers may not be paid the
Sundays - When a holiday falls on a Sunday, required holiday pay during off-season when
the following Monday will not be considered a they are not at work; and
holiday unless a proclamation says so. 4. Workers who have no regular working days
shall be entitled to the benefits provided in
Right to holiday pay this Rule.
In case of absences:
1. If an employee is on leave of absence with Holiday pay of hourly-paid faculty members
pay on the day immediately preceding a 1. They are not entitled to payment of holiday
regular holiday, he is entitled to holiday pay; pay because they are paid only for work
and actually done. Since regular holidays are
2. If an employee is on leave of absence known to both the school and faculty
without pay on the day immediately members as “no class day”; certainly the
preceding a regular holiday, he is not entitled latter do not expect payment for said
to holiday pay unless he works on such unworked holidays;
regular holiday. 2. They are entitled to their hourly rate on days
declared as special holidays. Be it noted that
In case of temporary cessation of work: when a special public holiday is declared, the
1. In cases of temporary or periodic shutdown faculty member paid by the hour is deprived
and temporary cessation of work of an of expected income, and it does not matter
establishment, regular holidays falling within that the school calendar is extended in view
of the days or hours lost, for their income
 that could be earned from other sources is pakyaw, or task basis, and, if their output
lost during the extended days; and rates are in accordance with the standards
3. Similarly, when classes are called off or prescribed int he regulations, or where such
shortened on account of typhoons, floods, rates have been fixed by the Secretary of
rallies, and the like, these faculty members Labor and Employment; and
must likewise be paid, whether or not 5. Field personnel.
extensions are ordered.
Premium Pay Rates
Piece workers, rationale for exclusion from 8- When Work Performed Premium Pay
hour law - Workers are paid depending upon
the work they do irrespective of the amount of On scheduled rest day 30% of regular wage
time employed in doing said work. On Sunday only if 30% of regular wage
established rest day
Seafarers - Any hour of work or duty including
No regular work and rest 30% of regular wage for
hours of watch-keeping performed by the days work performed on
seafarer on designated rest days and holidays Sundays and Holidays
shall be paid rest day or holiday pay.
On any special holiday/ 30% of regular wage
Seasonal workers who do not work during off- special day
season are not entitled to pay for the regular On any special holiday/ 50% or regular wage
holidays occurring during their off-season. special day falling on
Workers assigned to “skeleton crews” that work scheduled rest day
during the off-season have the right to be paid
On any regular holiday, 230% of regular wage
on regular holidays falling in that duration. falling on scheduled rest
day
Tuberculosis is listed under Section 32-A of the
POEA-SEC work-related disease. The company
should have repatriated him for medical Women Workers
examination and treatment in the Philippines Provisions against discrimination - It shall be
when manifestations of his bad health existed on unlawful for any employer to discriminate
board. against any woman employee with respect to
terms and conditions of employment solely on
Despite the knowledge of his medical condition, account of her sex.
he failed to report to his manning agent within
three days from his arrival as required by The following are acts of discrimination:
Section 20-B (3) of the POEA-SEC. The effect 1. Payment of a lesser compensation; and
of omission is forfeiture by him of disability 2. Favoring a male employee over a female
benefits. employee with respect to promotion, training
opportunities, study and scholarship grants
A policeman is governed by the 24-Hour Duty solely on account of their sexes.
Rule unless he is on official leave.
Stipulation against marriage - It shall be
Premium pay - The additional compensation unlawful for an employer to require as a
for work performed within 8 hours on non-work condition of employment or continuation of
days, such as rest days and special days. employment that a woman employee shall not
get married, or upon getting married a woman
Coverage employee shall be deemed resigned or separated
GR: All employees. or to actually dismiss, discharge, discriminate
EXC: merely by reason of her marriage.
1. Those in government and GOCC;
2. Managerial employees; Bona fide occupational qualification
3. Househelpers and persons in the personal exception - Employer can prove that the
service of another; reasonable demands of the business require a
4. Workers who are paid by results, including distinction based on marital status and there is
those who are paid on piece rate, takay, no better available or acceptable policy which
could better accomplish the business purpose, an 2. Any person who directs or induces another to
employer may discriminate against an employer commit any; or
based on the identity of the employee’s spouse. 3. Any person who cooperates in the
commission by another.
The Court sustained the validity of employer
policy prohibiting an employee from having a Independent action for damages - The victim,
personal or marital relationship with an can institute a separate and independent action
employee of a competitor. That situation might for damages and other affirmative relief.
compromise the interests of the company.
Sanctions
Anti-Sexual Harassment Act (RA 7877) 1. Criminal: Imprisonment of one (1) month
Employment or Work Related nor more than six (6) months or fine of P10k
1. The sexual favor is made as a condition: to P20k or both; prescription of such action
a. In the hiring or in the employment, re- is three (3) years;
employment or continued employment of 2. Termination.
said individual; or
b. In granting said individual favorable • As a managerial employee, one is bound by
compensation, term, conditions, more exacting work ethics. It is the right, duty
promotions or privileges; or of every employer to protect employees from
c. If the refusal to grant the sexual favor oversexed superiors.
results in limiting, segregating or
classifying, the employee who in any way Apprenticeship Learnership
would discriminate, deprive or diminish
employment opportunities or otherwise Highly technical Semi-skilled industrial
adversely affect said employee; industries occupations
2. The above acts would either: Practical training Practical training whether
a. Impair the employee’s rights or privileges supplemented by related or not such practical
under existing labor laws; or theoretical instruction training is supplemented
b. Result in an intimidating, hostile, or by theoretical instructions
offensive environment for the employee. Apprenticeable Non-apprenticeable
occupations approved by occupations
Education or Training environment the SOLE
1. Against one who is under the care, custody
Written apprenticeship Learnership agreement
or supervision;
agreement ratified by the
2. A g ain s t w h o s e ed u c a tio n , tr a in in g ,
appropriate committees
apprenticeship or tutorship is entrusted;
3. Sexual favor is made a condition to passing More than three months, Shall not exceed three (3)
grade, or the granting of honors and shall not exceed six (6) months
scholarships; or months
4. Sexual advances result in intimidating,
hostile or offensive environment.

Persons liable:
1. Any employer, employee, manager,
supervisor, agent of the employer, teacher,
instructor, professor, coach, trainer or any
other person, regardless of whether the
demand, request for requirement for
submission is accepted by the object of said
act having authority, influence or moral
ascendancy over another in a work or
training or education environment, who
demands, requests or otherwise requires any
sexual favor from another;
(1) The person is at least (1) When no experienced allowances regularly enjoyed by the
fifteen (15) years of workers are available; employee as well as non-monetary benefits.
age, provided those (2) The employment of
who are at least learners is necessary Time of Payment
fifteen (15) years of to prevent curtailment GR: paid not later than December 24 or each
age but less than of employment year.
eighteen (18) may be opportunities; and EXC: Employer may give to his employees half
eligible for (3) The employment does (1/2) of the required 13th Month Pay before the
apprenticeship only in not create unfair opening of the regular school year and the other
non-hazardous competition in terms half on or before the 24th of December every
occupation; of labor costs or year.
(2) The person is impair or lower
physically fit for the working standards.
occupation in which • The frequency of payment of this monetary
he desires to be benefit may be the subject of agreement
trained; between the employer and the recognized
(3) The person possesses CBA of the employees.
vocational aptitude.
13th month pay in special cases:
1. Paid by Results: Employee who are paid on
Learner - A person is hired as a trainee in an
piece work basis is, by law, entitled to 13th
industrial occupation.
Month Pay.
2. Employee who is paid a fixed or guaranteed
Thirteenth-Month Pay
wage plus commission is entitled to 13th
Coverage
month pay (not purely commission); the
GR: All Employers are required to pay all their
basis for computation shall be both his/her
rank and file employees a 13th month pay not
fixed or guaranteed wage and commission (if
later than December 24 of every year, provided
the commission is an integral part of the
that they have worked for at least one (1) month
compensation structure and not in the form
during a calendar year.
of a performance bonus).
EXC:
3. T h o s e w i t h M u l t i p l e E m p l o y e r s :
1. Government employees, including GOCCs
Government Employees working part time in
except those operating essentially as private
a private enterprise, including private
subsidiaries of the Government;
enterprise, including private educational
2. Employers already paying their employees
institutions, as well as employees working in
13th month pay or more;
two or more private firms, whether on full or
3. Employers of household helpers and persons
part time bases, are entitled to 13th Month
in the personal service; and
Pay from all their private employers
4. Employees of those who are paid on purely
regardless of their total earnings from each or
commission, boundary or task basis and
all their employers.
those who are paid a fixed amount for
4. Private School Teachers: including faculty
performing specific work, irrespective of the
members of universities and colleges, are
time consumed in the performance thereof.
entitled, regardless of the number of months
EXC to the EXC
they teach or are paid within a year, if they
- Those workers who are paid on piece-rate
have rendered service for at least one (1)
basis, in which case their employer shall grant
month within a year.
them 13th month pay.
5. Overload pay is not included in the
computation of 13th month pay; overload is
“Equivalent” includes
not overtime as it is additional work done
1. Christmas bonus, mid-year bonus, cash
within the normal shift.
bonuses;
6. Resigned or Separated Employee: before the
2. and other payment amounting to no less than
time for payment of the 13th moth pay is
one-twelfth (1/12) of the basic salary; but
entitled to this monetary benefit in
3. Shall not include cash and stock dividends,
proportion to the length of time he worked
cost of living allowances and all other
during the year.
7. Wage Difference: The difference between the endeavor to provide it by means of sheltered
minimum wage and the actual salary employment.
received by the Employee cannot be deemed
as his 13th month pay as such difference is Apprenticeship opportunity - Disabled
not equivalent. persons shall be eligible as apprentices or
8. Employees: payment of 13th month pay may learners, provided:
be demanded by the employee upon the 1. That their handicap is not as much as to
cessation of Employer-Employee effectivity impede the performance of job
relationship. operations in the particular occupation for
which they are hired; and
Persons with Disability (RA 7277, As 2. That after the lapse of the period of
Amended by RA 9442) apprenticeship if found satisfactory in the job
Disabled persons - Those suffering from performance, they shall be eligible for
restriction of different abilities, as a result of a employment.
mental, physical or sensory impairment, to
perform an activity in the manner or within the Full minimum wage - All qualified
range considered normal for a human being. handicapped workers shall receive the full
amount of the minimum wage rate prescribed
Impairment - Any loss, diminution or pursuant to RA 7277.
aberration of psychological, physiological, or
anatomical structure or function. Since the Magna Carta for Disabled Persons
mandates that qualified disabled employees
Disability should be given the same terms and conditions
1. A physical or mental impairment that of employment as qualified able-bodied persons,
substantially limits one or more they are thus covered by Art. 295 of the Labor
psychological, physiological or anatomical Code.
function of an individual or his/her activities;
2. A record of such an impairment; or Prohibition on Discrimination - No entity,
3. Being regarded as having such impairment. whether public or private, shall discriminate
against a qualified disabled person by reason of
Handicap - A disadvantage for a given disability in regard to job application
individual, resulting from an impairment or a procedures, the hiring, promotion, or discharge
disability that limits or prevents the function or of employees, employee compensation, job
activity considered normal given his/her age and training, and other terms, conditions, and
sex. privileges of employment.
Rights and Privileges of Disabled Workers
Equal opportunity for employment - No Incentives for Employers
disabled person shall be denied access to Tax incentives for employment of disabled
opportunities for suitable employment. A persons - Private entities that employ disabled
qualified disabled employee shall be subject to persons who meet the required skills or
the same terms and conditions of employment qualifications, either as regular employee,
and the same compensation, privileges, benefits, apprentice or learner, shall be entitled to an
fringe benefits, incentives or allowances as a additional deduction, from their gross income,
qualified able-bodied person. equivalent to twenty-five per cent (25%) of the
total amount paid as salaries and wages to
Reserved positions - Five per cent (5%) of all disabled persons: Provided, That such entities
casual, emergency and contractual positions in present proof, certified by the DOLE that
the DSWD, DOH, DEPED and other disabled persons are under their employ, and
government agencies, offices or corporations that the latter are accredited with the DOH, as to
engaged in social development shall be reserved their disability, skills and qualifications.
for disabled persons.
Tax incentives for construction of disabled-
S h e l t e re d e m p l o y m e n t - I f s u i t a b l e friendly facilities - Private entities that improve
employment for disabled persons cannot be or modify their physical facilities in order to
found through open employment, the State shall provide reasonable accommodation for disabled
persons shall also be entitled to an additional Synthesis of the rules
deduction from their net taxable income, 1. Service charges must be pooled.
equivalent to fifty per cent (50%) of the direct 2. Where a restaurant or similar establishment
costs of the improvements or modifications. does not collect service charges but has a
However, this does not apply to improvements practice or policy of monitoring and pooling
or modifications of facilities required under BP tips given voluntarily by customers to its
344. employees, the pooled tips should be
monitored, accounted for and distributed in
Service Charge - Applies only to the same manner as the service charges.
establishments which collect service charges 3. The amount collected is divided between the
such as: company for fifteen percent (15%) and
1. Hotels, restaurants, lodging houses, night employees for eighty-five percent (85%).
clubs, cocktail lounge, massage clinics, bars, 4. It shall be given twice a month with intervals
casinos and gambling houses and similar of not more than fifteen (15) days.
enterprises; and 5. If discontinued, removed or stopped, the
2. Similar enterprises including entities average share of the employees of their
operating primarily as private subsidiaries of service charge or tips shall be integrated into
the Government. their basic wage.

GR: It applies to all employees of covered Employment of Homeworkers

employers: Homeworker/Industrial homeworker - Any
1. Regardless of their positions, designations, or person who performs industrial homework for
employment status; and an employer, contractor, or sub-contractor.
2. Irrespective of the method by which their
wage are paid. Industrial homework
EXC: Managerial Employees - Those who are 1. A system of production under which work
vested with powers or prerogatives to lay down for an employer or contractor is carried out
and execute managerial policies and/or hire, or by a homeworker at his/her home.
discipline employees or to effectively 2. Materials may or may not be furnished by
recommend such managerial actions. All the employer or contractor.
employees not falling within this definition shall 3. A decentralized form of production, where
be considered rank and file employees. there is ordinarily very little supervision
work.
Distribution - Distributed in accordance with
the following percentage of sharing: Rights and benefits accorded to
1. Eighty-five per cent (85%) for the homeworkers:
employees, to be distributed equally among 1. Right to form, joint or assist organization:
them; and Any applicant homeworker organization or
2. Fifteen per cent (15%) for the disposition by association shall acquire legal personality
management, to answer for losses and and the rights and privileges granted by law
breakages, and distribution to managerial to legitimate labor organizations upon
employees at the discretion of the issuance of the certification of registration;
management. 2. Payment for homework: Immediate payment,
upon employer’s receipt of finished goods or
Frequency of distribution - The shares shall be articles, less corresponding homeworker’s
distributed and paid to employees not less than share of SSS, Medicare, Philhealth and ECC
once every two (2) weeks or twice a month at premium contributions remitted by
intervals not exceeding sixteen (16) days. employer/contractor/subcontractor to the
SSS;
• The P2,000.00 salary ceiling for entitlement 3. If subcontractor/contractor fails to pay
thereto is no longer applicable. homeworker, employer is jointly and
severally liable with the former to the
Integration - In case service charge is homeworker for his/her wage; and
abolished, shares of covered employees shall be 4. Employer, contractor or subcontractor shall
integrated in their wages. assist the homeworkers in the maintenance of
 basic safe and healthful working conditions 2. In case of urgent work to be performed on
at the homeworkers’ place of work. the machinery to avoid serious loss to the
employer;
Conditions for deduction from homeworker’s 3. Abnormal pressure of work due to special
earnings circumstances, where the employer cannot
GR: No deduction from the homeworker’s ordinarily be expected to resort to other
earnings for the value of materials lost, measures;
destroyed or damaged. 4. To prevent loss or damage to perishable
EXC: goods;
1. Homeworker is clearly shown to be 5. Nature of the work requires continuous
responsible for loss of damage; operations and the stoppage of work may
2. Homeworker is given reasonable opportunity result in irreparable injury or loss to the
to be heard; employer; and
3. Amount of deduction is fair and reasonable, 6. O t h e r c i r c u m s t a n c e s a n a l o g o u s o r
and does not exceed actual loss or damage; determined by the Secretary of Labor.
and
4. Amount deducted does not exceed 20% of Synthesis of the rules
homeworker’s weekly earnings. 1. Rest day of not less than twenty-four (24)
consecutive hours after six (6) consecutive
Instances when homework is prohibited: days of work.
1. Explosives, fireworks and articles of like 2. “No work, no pay” principle applies.
character; 3. If an employee works on his designated rest
2. Drugs and poisons; and day, he is entitled to a premium pay.
3. Other articles, the processing of which 4. Premium pay is additional 30% of the basic
requires exposure to toxic substances. pay.
5. Employer selects the rest day of his
The Regional Office shall provide technical employee.
assistance to registered homeworkers’ 6. However, employer must consider religious
organizations. reasons in the choice of a rest day.

Rest Periods IV. Procedure and Jurisdiction

Rest day - Every employee, regardless of the
nature of his work, is entitled to at least one Labor Arbiter
whole day every week as his rest day. The rest
day or day off shall be determined by the Jurisdiction
employer. However, in cases where the Original and exclusive jurisdiction - To hear
employee is required by his religious belief to and decide the following cases involving all
rest on certain days, such belief shall be workers, whether agricultural or non-
respected by the employer. agricultural:
1. Unfair labor practice cases;
Weekly rest day - It is the duty of every 2. Termination disputes;
employer, whether operating for profit or not, to 3. I f a c c o m p a n i e d w i t h a c l a i m f o r
provide each of his employees a rest period of reinstatement, those cases involving wages,
not less than twenty-four (24) consecutive hours rates of pay, hours of work and other terms
after every six (6) consecutive normal work and conditions of employment;
days, subject to CBA and to such rules and 4. Claims for actual, moral, exemplary and
regulations as the Secretary of Labor may other forms of damages arising from
provide. employer-employee relations;
5. Cases arising from any violation of Article
Emergency rest day work - The employer may 279 of the Labor Code, including the legality
require his employees to work on any day when: of strikes and lockouts;
1. There is an actual or impending emergency 6. All other claims arising from employer-
caused by serious accident, or calamity to employee relations, including those in
prevent loss of life and property, or imminent domestic or household service, involving an
danger to public safety; amount exceeding P5,000.00, whether or not
 accompanied with a claim for reinstatement; ten (10) calendar days from receipt of such
EXC: Claims for Employment decisions, awards or orders.
Compensation, Social Security, Philhealth EXC: The reinstatement aspect which is
and maternity benefits; immediately executory.
7. Wage distortion disputes in unorganized
establishments not voluntarily settled Requirements of Perfect Appeal to NLRC -
pursuant to Ra 6727; Decisions, awards, or orders of the Labor
8. Enforcement of compromise agreements Arbiter shall be final and executory, unless,
when there is non-compliance by any of the appealed to the Commission by any or both
parties pursuant to Article 233 of the Labor parties within ten (10) days from receipt thereof;
Code; and in case of decisions or resolutions of the
9. Money claims arising from employer- Regional Director, pursuant to Article 129 of the
employee relations or by virtue of any law or Labor Code within five (5) days from receipt
contract involving overseas contract workers thereof.
under the Migrant Workers Act of 1995; and 1. It must be verified by the appellant in
10.Other cases as may be provided by law. accordance with Sec.4, Rule 7 of the Rules
of Court.
• The cases enumerated may instead be 2. It shall be in the form of a memorandum of
submitted to a voluntary arbitrator by appeal which shall state the grounds relied
agreement of the parties under Article 275of upon and the arguments in support thereof,
the Labor Code. the relief prayed for, and with a statement of
the date when appellant receive the appealed
Jurisdiction over cases involving corporate decision, award or order.
officers lies with the regular courts. 3. It must be in three (3) typewritten or printed
copies; and
Labor Arbiters have jurisdiction over wage 4. It must be accompanied by:
distortion cases in unorganized establishments a. proof of payment of appeal fee and legal
when the same are not voluntarily resolved by research fee;
the parties before the NCMM. b. posting of a cash or surety bond; and
c. proof of service upon the other parties.
Concurrent Jurisdiction - The Labor Arbiter
has concurrent jurisdiction with the NLRC in • In case the decision involves a monetary
contempt cases. award, an appeal by the employer may only be
perfected upon the posting of a cash or surety
Cases that must be referred by the Labor bond issued by a reputable bonding company
Arbiter to the grievance machinery and duly accredited by the Commission equivalent
voluntary arbitration: in amount to the monetary award, exclusive of
1. D i s p u t e s o n t h e i n t e r p r e t a t i o n a n d damages and attorney’s fees.
implementation of CBA; and • Mere filing of a motion to reduce bond
2. Disputes on the interpretation or enforcement without complying with the requisites in the
of company personnel policies. preceding paragraphs shall not stop the
running of the period to perfect an appeal.
Regular courts have no jurisdiction to act on
labor cases or various incidents arising Execution of a labor judgment which, on
therefrom, including the execution of decisions, appeal, had become final and executory -
awards and orders. Execution shall issue upon an order, resolution
or decision that finally disposes of the action or
He is considered an employee since he is a proceedings after the counsel of record and the
worker that is paid on a salary plus commission parties shall have been furnished with copies of
basis. the decision in accordance with the Rules but
Procedure only after the expiration of the period of appeal
GR: Decisions, awards or orders of the Labor if no appeal has been duly perfected.
Arbiter may be stayed by the filing of an appeal
to the Commission by any or both parties within The Labor Arbiter, the Regional Director or his
duly authorized hearing officer of origin shall,
motu proprio or upon motion of any interested 2. Cases decided by Labor Arbiters under
party, issue a writ of execution on a judgment Article 229 of the Labor Code and Section
only within five (5) years from the date it 10 of the Migrant Worker’s Act;
becomes final and executory, so requiring the 3. Cases decided by Labor Arbiters on wage
sheriff or duly deputized officer to execute the distortion issues in non-unionized
same. No motion for execution shall be establishment;
entertained nor a writ issued unless the Labor 4. Cases certified by the Regional Director; and
Arbiter is in possession of the records of the 5. Denial of the claim of the third party where
case which shall include an entry of judgment in property was levied on by the Sheriff.
case of appeal except that, as provided for in
Section 10 of Rule VI, and in those cases where Certified Cases
partial execution is allowed by law, the Labor Certified Labor Disputes - Certified labor
Arbiter shall retain duplicate original copies of disputes are cases certified to the Commission
the decision to be implemented and proof of for compulsory arbitration under Art 278 (g) of
service thereof for the purpose of its immediate the Labor Code, i.e. when the DOLE Secretary
enforcement. opines that there exists a labor dispute causing
or likely to cause a strike or lockout in an
Instances when an order of execution may be industry indispensably to the national interest.
appealed:
1. Where the order of execution varies or goes Return-to-work Order - Upon assumption or
beyond the terms of the judgment it seek to certification, all striking employees are
enforce or the terms of the judgment are immediately ordered to return to work, and the
ambiguous; and employer to readmit the same.
2. Where the implementation of the Order was
irregular. Remedies - The way to review NLRC decision
is through filing of special civil action of
Reinstatement Pending Appeal - The decision certiorari under Rule 65, in the Court of
of the Labor Arbiter ordering the reinstatement Appeals. Thus, the 1997 Rules of Civil
of a dismissed employee shall be immediately Procedure should be observed, to wit:
executory insofar as the reinstatement aspect is 1. The petition for certiorari must be filed not
concerned and the posting of an appeal bond by later than sixty (60) days from notice of
the employer shall not stay such execution. judgment, order or resolution. If a motion for
There is no need for a motion for issuance of new trial or reconsideration is filed, the 60-
writ of execution on the reinstatement order as it day period shall be counted from denial of
is self-executory. such motion.
2. The petition should be accompanied by a
National Labor Relations Commission certified true copy of the NLRC decision and
by a sworn certification of non-forum
Jurisdiction shopping as well as all relevant pleadings
Original Jurisdiction and documents.
1. Petition for injunctions or temporary 3. In observance of the hierarchy of courts, the
restraining order in ordinary labor disputes; petition must be filed in the first instance
2. Petition for injunction in strikes and with the CA.
lockouts;
3. Certified cases by the Secretary of Labor in Jurisdictional cognizance over compromise
an industry indispensable to the national agreements/settlements
interest; GR: Any compromise agreement, including
4. Petition to annul or modify the decision of those involving labor standard laws, voluntarily
the Court of Appeals. agreed upon by the parties with the assistance of
the Bureau or Regional Office of the
Appellate jurisdiction Department of Labor, shall be final and binding
1. Cases decided by the Regional Offices over upon the parties. The NLRC or any court shall
monetary claims of workers not exceeding not assume jurisdiction over the issues involved
P5,000; therein.
EXC: On the other hand, the NLRC has the following
1. In case of non-compliance therewith; or jurisdiction:
2. If there is prima facie evidence that the a. Review decisions rendered by the Labor
settlement was obtained through fraud, Arbiter;
misrepresentation, or coercion. b. Review decisions or orders rendered by the
Regional Director under Art 129 of the Labor
Appeal to the NLRC may be entertained only Code; and
on any of the following grounds: c. Conduct compulsory arbitration in certified
1. If there is prima facie evidence of abuse of cases.
discretion on the part of the Labor Arbiter;
2. If the decision, order or award was secured As to the authority on issuing a labor injunction,
through fraud or coercion, including graft the NLRC can issue an injunctive writ. On the
and corruption; other hand, the Labor Arbiter cannot issue an
3. If serious errors in the findings of facts are injunctive writ.
raised which would cause grave or
irreparable damage or injury to the appellant. Grievance Machinery and Voluntary
Arbitration - When a dispute or controversy
• The review power of the NLRC in perfected arises over the implementation or interpretation
appeals is limited only in those issues raised of a CBA or from the implementation or
on appeal. Hence, it is grave abuse of enforcement of company personnel policies, and
discretion for the NLRC to resolve issues not either the union or the employer invokes the
raised on appeal. grievance machinery provision for the
adjustment or resolution of such dispute or
The NLRC may issue an injunctive writ to controversy.
enjoin an illegal activity as an ancillary remedy
to avoid irreparable injury to the rights of a Grievance machinery - Grievance machinery is
party in an ordinary labor dispute pursuant to a mechanism for the adjustment of controversies
Rule X, 2011 NLRC Rules of Procedure, as or disputes arising from the interpretation or
amended. implementation of the CBA and the
interpretation or enforcement of company
Moreover, under Art. 225 of the Labor Code, for personnel policies.
a labor injunction to issue the following must be
proved: Voluntary arbitration - The process of
• That the prohibited or unlawful acts have been submission of the dispute to an impartial person
threatened and will be committed and will be for determination on the basis of the evidence
continued unless restrained; and arguments of the parties. The award is
• That substantial and irreparable injury to the enforceable on the disputants.
complaint’s property will follow; Voluntary Arbitrator
• That the greater injury will be inflicted upon Exclusive and original jurisdiction
complainant by the denial of relief than that of 1. A l l g r i e v a n c e s a r i s i n g f r o m t h e
the injury inflicted upon defendants by implementation or interpretation of the CBA;
granting of relief; 2. Interpretation or enforcement of company
• That complainant has no adequate remedy at personnel polices which remain unresolved
law; and after exhaustion of the grievance procedure;
• That public officers charged with the duty to 3. Wage distortion issues arising from the
protect complainant’s property are unable or application of any wage orders in organized
unwilling to furnish adequate protection. establishments; and
4. Unresolved grievances arising from the
The Labor Arbiter can hear and resolve cases interpretation and implementation of the
under Art 224 of the Labor Code, money claims productivity incentive programs under RA
under Sec 7 of RA 10022 and referred wage 6971.
distortion disputes in unorganized
establishments, as well as the enforcement of “All other disputes” - Include termination
compromise agreements pursuant to the 2011 disputes, provided that the agreement between
Rules of Procedure as amended. the parties state that they conform to the
submission of termination disputes and ULP to other hand, its disadvantages are that the State
voluntary arbitration. This is so because interferes with the affairs of labor and
termination disputes are generally within the management and the system of appeals entails a
exclusive and original jurisdiction of the Labor longer process.
Arbiters.
Where there is neither collective bargaining
• The disputes the parties may submit to a agreements nor recognized labor unions, the
voluntary arbitrator can include any or all the employers and workers shall endeavor to correct
disputes mentioned in Art 224 which fall such wage distortions. Any dispute arising
under the exclusive jurisdiction of a Labor therefrom shall be settled through the National
Arbiter. Conciliation and Mediation Board and, if it
• An appeal from a decision of a voluntary remains unresolved after ten (10) calendar days
arbitrator falls within the exclusive appellate of conciliation, the issue of wage distortion shall
jurisdiction of the Court of Appeals. The be referred to the appropriate branch of the
mode of appeal is Rule 43 of the 1997 Rules National Labor Relations Commission.
of Civil Procedure.
• A labor dispute falling within the exclusive DOLE Regional Directors
jurisdiction of a Labor Arbiter may be Jurisdiction over small money claims - The
submitted to voluntary arbitration. Any or all Regional Director is empowered through
disputes under the exclusive and original summary proceedings and after due notice, to
jurisdiction of the Labor Arbiter under Art 224 hear and decide cases involving recovery of
of the Code, may be submitted for voluntary wages and other monetary claims and benefits,
arbitration to a voluntary arbitrator upon including legal interest, provided that the
agreement of the parties. following requisites are present:
1. The aggregate money claims of each
“Art 262. Jurisdiction over dispute. - The employee or house-helper does not exceed
voluntary arbitrator or panel of voluntary P5,000;
arbitrators, upon agreement of the parties, shall 2. The claim is presented by an employee or
also hear and decide all other labor disputes, person employed in domestic or household
including unfair labor practice and bargaining service or house helper;
deadlocks.” 3. The claim arises from employer-employee
relations; and
Voluntary arbitration is one of the preferred 4. The claimant does not seek reinstatement.
modes of settling labor disputes. The Labor
Code on Art. 262 authorizes a voluntary GR: In the absence of any of the above
arbitrator to hear and decide by agreement of the requisites, the Labor Arbiter shall have
parties all other disputes. exclusive original jurisdiction over claims
arising from employer-employee relations.
Some advantages of voluntary arbitration are: EXC: Claims for employee’s compensation,
the parties’ dispute is heard and resolved by a social security, medicare, and maternity benefit.
person whom both parties have chosen, the
decision by the arbitrator is final and binding by Visitorial and enforcement powers - The
reason of their submission and compliance. visitorial and enforcement powers of the DOLE
However, its disadvantages are, in case of an Regional Director to order and enforce
appeal by the employer to the Court of Appeals, compliance with labor standards laws can be
the monetary award will not be secured with an exercised even when the individual claims
appeal bond which Rule 43 of the Rules of exceed P5,000. The authority under Article 128
Court does not require. Additionally, in case of of the Labor Code may be exercised regardless
enforcement of judgment the Voluntary of the monetary value involved. Under Art 129,
Arbitrator has no sheriff to enforce it. however, the authority is only for claims not
exceeding P5,000 per claimant.
Some of the advantages of compulsory
arbitration are: a monetary award is secured
with the employer’s appeal bond, there is a way
of restitution in compulsory arbitration. On the
Prescription of Actions emphasizing conciliation as modes of settling
Case Prescriptive Period labor disputes.

ULP 1 year from the act Mediation - A voluntary process of settling

Money claims arising 3 years from cause of disputes where the parties elect a mediator to
from Employer-Employee action facilitate the communication and negotiation
relationship between the parties in dispute for the purpose of
assisting them in reaching a compromise.
Offenses penalized by the 3 years from cause of
LC (except ULP) action
Arbitration - A system of dispute settlement
Sample illegal recruitment 4 years (based on “injury that may be compulsory or voluntary, whereby
to rights” under the NCC) the parties are compelled by the government or
Economic sabotage 20 years agree to submit their dispute before an arbiter,
with the intention to accept the resolution of said
arbiter over the dispute as final and binding on
DOLE Secretary
them.
Visitorial and Enforcement Powers
Nature of Proceedings
Functions of the NCMB:
Visitorial Powers
1. Formulate policies, programs, standards,
Scope
procedures, manuals of operation and
1. Access to employer’s records and premises at
guidelines pertaining to effective mediation
any time of day or night when there is work;
and conciliation of labor disputes;
2. Copy records;
2. P e r f o r m p r e v e n t i v e m e d i a t i o n a n d
3. Question any employee;
conciliation functions;
4. Investigate matters to determine whether
3. Coordinate and maintain linkages with other
there are violations of LC;
sectors or institutions and other government
5. Issue compliance orders; and
authorities concerned with matters relative to
6. Issue writs of execution to appropriate
the prevention and settlement of labor
authority for enforcement of orders. EXC:
disputes;
When the employer contents findings of the
4. Formulate policies, plans, programs,
officer and raises issues supported by
standards, procedures, manuals of operation
documentary proof not considered during
and guidelines pertaining to the promotion of
inspection. This is a matter that may be
cooperative and non-adversarial schemes,
raised to the Labor Arbiter.
grievance handling, voluntary arbitration,
and other voluntary modes of dispute
National Conciliation and Mediation Board
settlement;
(NCMB)
5. Administer the voluntary arbitration
Conciliation, Mediation and Arbitration
program; maintain/update a list of voluntary
Conciliation - The process of dispute
arbitrators; compile arbitration awards and
management whereby parties in dispute are
decisions;
brought together for the purpose:
6. Provide counselling and preventive
1. Amicably settling the case upon a fair
mediation assistance particularly in the
compromise;
administration of collective agreements;
2. Determining the real parties in interest;
7. Monitor and exercise technical supervision
3. Defining and simplifying the issues in the
over the Board programs being implemented
case;
in the regional offices; and
4. Entering into admission or stipulations of
8. Perform other functions as may be provided
facts; and
by law or assigned by the Secretary.
5. Threshing out all other preliminary matters.

• In resolving labor disputes, this comes before

arbitration, as a mandatory process, pursuant
to the State policy of promoting and
 Bureau of Labor Relations - Med-arbiters involving independent unions and local
Exclusive and Original Jurisdiction - chapters, the decision of the BLR shall be
Exclusive and original jurisdiction to act on its final, and can only be reviewed through an
own initiative or upon the request of either or Original Action for Certiorari under Rule 65,
both parties on the following: with the CA.
1. Intra-union and inter-union conflicts; and Court of Appeals - A petition for certiorari
2. All disputes, grievances or problems arising under Rule 65 of the Rules of Court will lie only
from or affecting labor-management relations where commission of grave abuse of discretion
in all workplaces, EXC: Those arising from or an act without or in excess of jurisdiction of
the implementation or interpretation of the voluntary arbitrator is shown which may be
CBAs. filed with the Court of Appeals.

Intra-union Dispute - Any conflict between The way to review NLRC decisions is through
and among union members, including the special civil action of certiorari under Rule
grievances arising from any violation of the 65. Although the jurisdiction over the review of
rights and conditions of membership, violation NLRC decisions belongs to both the CA and the
of or disagreement over any provision of the SC, following the doctrine of hierarchy of
union’s constitution and by-laws or disputes courts, the petition should be initially presented
arising from chartering or disaffiliation of the to the CA.
union.
Inter-union conflicts - Any conflict between V. Recruitment and Placement
and among legitimate labor unions involving
representation questions for the purpose of Recruitment of Local and Migrant Workers
collective bargaining or to any other conflict or Illegal Recruitment - Illegal recruitment means
dispute between legitimate labor unions. any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring
Other related Labor Relations Disputes - Any workers and includes referring, contract
conflict between a labor organization and the services, promising or advertising for
employer or any individual, entity or group that employment abroad, whether for profit or not,
is not a labor organization or worker’s when undertaken by non-licensee or non-holder
association. This includes: of authority, provided, that any such non-
1. Cancellation of registration of unions and licensee or non-holder who, in any manner,
worker’s associations; and offers or promises for a fee employment abroad
2. A petition for interpleader. to two or more persons shall be deemed so
engaged.
Section 2, EO 251, s. 1987 removed from the
jurisdiction of the BLR “all labor management Types of illegal recruitment
disputes”. The effect of EO 251 is to transfer to 1. Simple illegal recruitment; and
the NCMB the mediation, conciliation, and 2. Illegal recruitment which is considered as an
arbitration functions of the BLR. offense involving economic sabotage.

Appellate Jurisdiction - The decision of the Economic sabotage:

Med-Arbiter and Regional Director may be 1. Syndicated illegal recruitment - When
appealed to the Bureau by any of the parties illegal recruitment is carried out by a group
within ten (10) days from receipt thereof. of three (3) or more persons conspiring and/
Whereas, the decision of the Bureau Director is or confederating with one another.
appealable to the Office of the Secretary. 2. Large-scale illegal recruitment - When
illegal recruitment is committed against three
• If the decision of the BLR is in the exercise of 93) or more persons whether individually or
its original jurisdiction over inter/intra-union as a group.
and other labor relations disputes involving
federations, the appeal is with the Secretary of Good faith as a defense - Good faith is not a
Labor. However, if the decision of the BLR is defense in illegal recruitment as defined in Sec 6
in the exercise of its appellate jurisdiction of RA 8042, as amended. Illegal recruitment is
over decisions of the Regional Office in cases malum prohibitum.
• An affidavit of desistance from the Regulation and Enforcement
complainant in illegal recruitment cases Suspension or Cancellation of License or
cannot exculpate the offender when the Authority - The power to suspend or cancel a
prosecution had successfully proven the license to recruit employees is vested on the
latter’s guilt beyond reasonable doubt. POEA Administrator.

DOLE Secretary has no power to issue arrest Prohibited Activities - Travel agencies and
order or search warrant - In initiating actions sales agencies of airline companies are
against illegal recruitments, only judges may prohibited from engaging in the business of
issue warrants of arrest or search warrant. recruitment and placement of workers for
overseas employment, whether or not for profit.
Liability of local agency with its foreign
principal - The recruitment (local)agency is Regulatory and Visitorial Powers of the
equally liable with the foreign principal despite DOLE Secretary - The State shall allow the
the termination of their contract between them. deployment of overseas Filipino workers only in
countries where the rights of Filipino migrant
The local agency is solidarily liable with the workers are protected. It does not, however,
foreign principal, hence, severance of relations guarantee to promote and facilitate re-
between the local agent and foreign principal integration of migrants into the national
does not affect the liability of the foreign mainstream.
principal. Remittance of Foreign Exchange Earnings - It
shall be mandatory for all Filipino workers
Effect of failure of the agency to deploy a abroad to remit a portion of their foreign
recruit without valid reason - When a exchange earnings to their families, dependents
recruitment agency fails to deploy a recruit and/or beneficiaries in the country in accordance
without valid reason and without the recruit’s with rules and regulations prescribed by the
fault, the agency is obligated to reimburse the Secretary of Labor and Employment.
recruit’s documentary and processing expenses.
VI. Social Welfare Legislation
Private employment agency - Any person or
entity engaged in the recruitment and placement SSS Law
of workers for a fee, which is collected directly Coverage
or indirectly to workers, employers or both. Compulsory Coverage
1. All employees not over sixty (60) years of
Direct Hiring age and their employers;
GR: No employer may hire a Filipino worker 2. Domestic helpers whose income is not less
for overseas employment, except through the than P1,000.00;
Boards and entities authorized by the DOLE. 3. Self-employed.
EXC:
1. Members of the diplomatic corps; Voluntary Coverage
2. International organizations; and 1. Spouses who devote full time managing the
3. Such other employers as may be allowed by household and family affairs;
the DOLE. 2. Filipinos recruited by foreign-based
employers for employment abroad.
Article 27 of the Labor code mandates that 75%
of its authorized and voting capital stock must Exclusions to the Compulsory Coverage
be owned by Filipinos. 1. Employment of purely casual and not for the
purpose of the occupation or business of the
Illegal recruitment is considered economic employer;
sabotage if it is committed by a syndicate or in a 2. Service performed on or in connection with
large scale. It is considered committed by a an alien vessel if he is employed when such
syndicate if it is carried out by three (3) or more vessel is outside the Philippines;
conspirators, and in a large scale when it is 3. Services performed in the employ of the
committed against three (3) or more persons. Philippine Government or an instrumentality
of agency thereof;
4. Service performed in the employ of a foreign GSIS Law
government of international organization, or Benefits under the GSIS
their wholly-owned instrumentality; and 1. Employees compensation which shall
5. Such other services performed by temporary include both income and medical and related
employees. benefits, including rehabilitation;
2. Temporary total disability benefit;
Commencement of action - The right to 3. Permanent total disability benefit;
institute the necessary action against an 4. Separation benefit; and
employer may be commenced within twenty 5. Retirement benefit.
(20) years from the time the delinquency is
known or the assessment is made by the SSS, or Basic requirements to claim survivorship
from the time the benefit accrues, as the case benefits:
may be. 1. That the GSIS member was in the service at
the time of his death; or
Social Security Union Security 2. If separated from service, that he has been in
service for three (3) years within the five-
Protection that will A clause whereby the year period and has had at least thirty-six
provide income benefits employer agrees to (36) monthly contributions.
and/or medical care in employ or continue in
contingencies like employment only workers
Compulsory coverage - All employees
sickness, (also maternity who are members of the
receiving compensation who have not reached
in the case of SSS) exclusive collective
disability, death or bargaining representative the compulsory retirement age, irrespective of
retirement, including in of the employees of said employment status; and members of the
the case of the GSIS, employer in a bargaining judiciary and constitutional commissions for life
separation and unit. insurance policy.
unemployment benefits.
Limited Portability Law
Advantage - Under the provisions of RA 7699
• An injury sustained by the employee while on
his way to or from his place of work, and on “portability,” a covered worker who transfers
which is otherwise compensable, is deemed to employment from one sector to another or is
have arisen out of and in the course of his employed in both sectors shall have his credible
employment. services or contributions in both System credited
to his service or contribution record in each of
• The government and any of its political
subdivisions, branches or instrumentalities, the Systems and shall be totalized for purposes
including corporations owned or controlled by of old-age, disability, survivorship and other
the government is not considered an employer benefits in case the covered member.
under the terms of the Social Security Act.
For this purpose, overlapping period of
Benefits under the SSS membership shall be credited only once.
Entitlement to maternity leave benefit is not
dependent on the claimant’s being legally Employee’s Compensation (Coverage and
married. When Compensable)
Compulsory Coverage
The SSS Law does not discriminate based on the 1. All employers;
civil status of a female member-employee. As 2. Employees not over sixty (60) years old;
long as said female employee has paid at least 3. Employees over sixty (60) years old and
three (3) monthly contributions on the twelve- paying contributions; and
month period immediately preceding the 4. Filipino employees employed abroad subject
semester of her childbirth, she can avail of the to prescribed ECC regulations.
maternity benefits under the law.

• The same maternity benefits are ensured by

Sec 22(b)(2) of the Magna Carta of Women.
Theory of Increased Risks, definition substance to the saying that “the heart has
A “non-occupational disease” is compensable reasons of its own which reason does not
when: know”, a matter that cannot “be so casually
1. There is proof of a causal connection equated with immorality.”
between the work; and
2. The ailment is established that respondent’s Discipline - An employer has a free reign and
illnesses are connected to her work, given the enjoys wide latitude of discretion to regulate all
nature of and pressure involved in his/her aspects of employment, including the
functions and duties. prerogative to instill discipline in its employees
and to impose penalties, including dismissal,
• The theory of “increased risks” is only upon erring employees. This is a management
relevant when the ailment or sickness is not prerogative, where the free will of management
classified as an occupational diseas. to conduct its own affairs to achieve its purpose
takes form. The only criterion to guide the
Injuries/death not compensable - Injuries exercise of its management prerogative is that
received by a janitor at a union election meeting the policies, rules and regulations on work-
is an example of a compensable injury. related activities of the employees must always
be fair and reasonable and the corresponding
VII. Management Prerogative penalties, when prescribed, commensurate to the
Grant of Bonus - An employer cannot be forced offense involved and to the degree of the
to distribute bonuses when it can no longer infraction.
afford to pay. The granting of a bonus is a
management prerogative, something given in Transfer of Employees - The transfer of an
addition to what is ordinarily received by or employee ordinarily lies within the ambit of
strictly due the recipient. management prerogatives. It must be exercised
without grave abuse of discretion, bearing in
The law does not prohibit a negotiated mind the basic elements of justice and fair play.
discontinuance of a CBA benefit such as the
grant of 14th month year-end bonus. Productivity Standard
GR: It is part of management prerogative to
Change on Working Hours - Management is contract out any work, task, job or project.
free to regulate, according to its own discretion EXC: It is an unfair labor practice to contract
and judgment, all aspects of employment, out services or functions performed by union
including hiring, work assignments, working members when such will interfere with, restrain
methods, time, place and manner of work, or coerce employees in the exercise of their
processes to be followed, supervision of rights to self-organization.
workers, working regulations, transfer of
employees, work supervision, layoff of workers Right to policy and decision making processes
and discipline, dismissal and recall of workers. - Article XIII, Section 3 of the Constitution, and
Article 255 of the Labor Code guarantee the
Absent an agreement to the contrary, the right of workers to participate in policy and
management determines work hours. decision making processes which can affect
their rights and benefits. Job contracting will
Rules on Marriage between Employees of undoubtedly and directly affect their rights,
Competitor-Employers - The policy of non- benefits and welfare.
employment of unwed mothers, women with
live-in partners, and lesbians in an exclusive • It does not however include membership in
school for girls, run by a religious order does not the Board of Directors of a Corporation, but
violate the Labor Code. The practice is a valid this could be the proper subject of a Collective
exercise of management function. Bargaining Agreement.

“It shall be unlawful for any employer to Post-Employment Ban - An employment

discharge such woman on account of contract prohibiting employment in a competing
pregnancy”. The pregnancy here could have company within a reasonable period of one year
resulted from love and as such only lends from separation is valid. The employer has the
right to guard its trade secrets, manufacturing and independence of the nation and free the
formulas, marketing strategies and other people from poverty through policies that
confidential programs and information. provide adequate social services, promote
full employment, a rising standard of living,
VIII. Fundamental Principles and Policies and an improved quality of life for all.

Constitutional Provisions • It is the purpose of labor legislation to

Article XIII, Sections 1, 2, 3, 13, 14 implement the aforesaid state policies.
The State is bound under the Constitution to • The constitutionally adopted policy of
afford full protection to labor, and when promoting social justice in all phases of
conflicting interests collide and they are national development means the humanization
weighed on the scales of social justice, the law of laws and equalization of economic forces.
should accord more sympathy and compassion
to the less privileged workingman. Article III, Sections 1, 4, 7, 8, 10, 16, 18 (2) -
Government employees have the right to
However, it should be borne in mind that social organize, but they may be held liable for
justice ceases to be an effective instrument for engaging in concerted mass action, it being a
the “equalization of the social and economic prohibited activity under CSC Law.
forces” by the State when it is used to shield
wrongdoing. The right of government employees to organize
is limited to the information of unions or
The exploration, development and utilization of associations excluding the right to strike.
natural resources shall be under the full
supervision and control of the State. Labor Code
Article 3
Policies enshrined in Section 3, Article XIII of Labor Relations Labor Standards
the Constitution which are not covered by
Article 3 of the Labor Code on declaration of Focuses its provisions on Focuses on the terms and
basic policy the collective aspects of conditions of employment
employer-employee of employees as
1. All workers shall have the right to peaceful
relationship. Its legal individual employees or
concerted activities, including the right to
provisions deal with those legal provisions
strike in accordance with law; employees organizing dealing with wages, hours
2. They shall be entitled to a living wage; unions and how through of work and other terms
3. They shall participate in policy and decision- these unions, employees and conditions of
making processes affecting theri rights and are able to have collective employment.
benefits as may be provided by law; and bargaining with their
4. The state shall promote the principle of employer.
shared responsibility between workers and
employers. Article 4
Concept of liberal approach in interpreting
Abolition of the security of tenure clause in the the Labor Code - In carrying out and
Labor Code, in unconstitutional as it goes interpreting the Labor Code’s provisions and its
against the entitlement of workers to security of implementing regulations, the workingman’s
tenure under Section 3, Article XIII of the 1987 welfare should be the primordial and paramount
Constitution. consideration. This kind of interpretation gives
meaning and substance to the liberal and
Article II, Sections 9,10,11, 13, 14, 18 and 20 compassionate spirit of the law.
1. The State affirms labor as a primary social
economic force. It shall protect the rights of Article 255
workers and promote their welfare; Principle of co-determination - One which
2. The State shall afford full protection to labor, grants to the workers the right to participate in
local and overseas, organized or policy and decision making processes affecting
unorganized; and their rights and benefits.
3. The State shall promote a just and dynamic
social order that will ensure the prosperity