LABOR LAW 113

1st Semester, AY 2016-2017

Prof. E. (Leo) D. Battad
College of Law
University of the Philippines

“Among the most important duties of employers

the principal one is to give every worker
what is justly due him… (N)o laws, either human or divine,
permit them for their own profit
to oppress the needy and the wretched
or to seek gain from another’s want.”

- Pope Leo XIII in Rerum Novarum, 1891

REFERENCES:

 1987 Philippine Constitution

 The Labor Code of the Philippines, Implementing Rules &
Regulations, Department Orders, Guidelines and Circulars
 Pertinent International Human Rights Instruments and ILO Conventions, Recommendations and
Labor-related laws
 Assigned Readings

I. INTRODUCTION TO LABOR LAW

A. Capital and Labor

Readings:

 Pope Leo XIII, Rerum Novarum, 15 May 1891

 Pope John Paul II, Laborem Exercens, 14 September 1981

Reflection Paper: Choice of any of the two readings. The reflection paper must not exceed four (4)
pages, double space, using Arial font, size 12.

B. Labor Law

1. Definition
2. Classification
a. Labor Standards
b. Labor Relations
c. Social Security Legislation
3. Social Justice as Justification, Const., Art. II, Secs. 10; Art. XIII, Sec. 1-3; Art. II, Secs. 18 & 20

Compare: 1987 Const., Art. II, Sec. 10; 1973 Const., Art. II, Sec. 6; 1935 Const., Art. II, Sec. 5

a. Definition/Balancing of Interest, Art. II, Secs. 18 & 20

 Calalang v. Williams, 70 Phil. 726 (1940)

 Toyota Philippines, Corp. Workers Association (TMPCWA) v.
NLRC, 537 SCRA 171 (2007)

b. Foundation: Police Power and State Protection

 2
 St. Luke’s Med. Center Employee’s Foundation-AFW (SLMCEA-AFW) v. NLRC, 517 SCRA
677 (2007)

c. Limits of Use

 PLDT v. NLRC, 164 SCRA 671 (1988)

 Toyota Philippines, Corp. Workers Association (TMPCWA) v.
NLRC, supra
 Tirazona v. Phil. EDS Techno-Service, 576 SCRA 625 (2009)

4. Legal Bases; Sources of Rights and Benefits

a. International Instruments

1) International Covenant on Civil and Political Rights, Art. 22

International Covenant on Economic, Social and Cultural Rights, Arts. 6, 7, 8, 9
International Convention on the Elimination of All Forms of Discrimination Against Women,
Art. 11

2) International Labor Organization (ILO) Conventions

 International School Alliance of Educators v. Quisumbing, 333 SCRA 13 (2000)

b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 11, 13, 14, 18; Art. III, Secs. 1, 4, 8, 18 (1); Art. XIII,
Secs. 1-3, 14

Compare: 1987 Const., Art. XIII, Sec. 3; 1973 Const., Art. II, Sec. 9; 1935 Const., Art. XIV,
Sec., 6

c. Labor Code (LC) and Omnibus Rules Implementing the Labor Code

d. New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700-1701

e. Collective Bargaining Agreement, Art. 1305-1306, NCC

 DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 (2003)

f. Past Practices

 American Wire and Cable Daily Rated Employees Union v. American Wire and Cable
Co., Inc., 457 SCRA 684 (2005)
 Netlink Computer Incorporated v. Delmo, 726 SCRA 531 (2014)

g. Company Policies

 China Banking Corporation v. Borromeo, 440 SCRA 621 (2004)

II. LABOR CODE OF THE PHILIPPINES

A. Brief History

B. General Provisions

1. Decree Title, Art. 1

2. Effectivity, Art. 2

3. Policy Declaration, Art. 3

 3

4. Construction in Favor of Labor, Art. 4; Civil Code, Art. 1702

 Hocheng Phil. Corp. v. Farrales, 754 SCRA 31 (2015)

5. Rule Making Power, Art. 5

 Kapisanang Manggagawang Pinagyakap v. NLRC & Franklin Baker Co. of the Philippines, 152
SCRA 96 (1997)

6. Technical Rules Not Binding, Art. 227

 Ma. Ligaya B. Santos v. Litton Mills, Inc., 652 SCRA 510 (2011)
 Wallem Maritime Services, Inc. v. Pedrajas, 732 SCRA 541 (2014)

7. Applicability, Art. 6, 291; Constitution, Art. IX-B, Sec. 2(1)

8. Enforcement and Sanctions – Arts. 224 (a) (2), (3), (4), (6); 128-129; 303-307; D.O. 131-13; D.O.
131A-14; Const., Art III, Secs. 11 and 16

 Cireneo Bowling Plaza, Inc. v. Sensing, 448 SCRA 175 (2005)

 People’s Broadcasting Service (Bombo Radyo Phils., Inc. v. SOLE, et al., 667 SCRA 538 (2012)
 Manase v. Jollibee Foods Corp., 684 SCRA 34 (2012)
 Raul C. Cosare v. Broadcom Asia, Inc., 715 SCRA 534 (2014)

C. Work Relationship

1. Employer and Employee Relationship

a. Definition of Employer and Employee, Arts. 97 (a) (b) (c), 173 (f)
(g) (h), 219 (e) (f)

b. Factors/Tests

 Sy v. Court of Appeals, 398 SCRA 30 (2003)

 Chavez v. NLRC, 448 SCRA 478 (2005)
 South East International Rattan, Inc. v. J.J. Coming, 718 SCRA 658 (2014)
 Tesoro, et al. v. Manila Retreaders, Inc. (Bandag), 718 SCRA 538 (2014), including the
dissenting opinion of Justice MVFL Leonen
 Begino, et al. v. ABS-CBN Corporation, 756 SCRA 236 (2015)

c. Evidence of Employee Status

 Bernard A. Tenazas, et al., v. R. Villegas Taxi Transport, 720 SCRA 467 (2014)

d. Burden of Proving Employer-Employee Relationship

 Bitoy Javier v. Fly Ace Corporation, 666 SCRA 382

e. Piercing the Veil of Corporate Entity

 Pamplona Plantation Co., Inc. v. Tinghil, 450 SCRA 421 (2005)

 Sarona v. NLRC, et al., 663 SCRA 394 (2012)

2. Independent Contractor and Labor-only Contractor

References:
 4
 Art. 106-107, 109;
 DO No. 3, May 2001;
 D.O. No. 14, 18 December 2001 (Re: Employment of Security Guards), Sec. 8;
 D.O. No. 18-02, S 2002;
 D.O. No. 18-A-11

a. Trilateral relationship; Requirements for Independent Contractor, DO No. 18-A-11, Sec. 3(m),
Sec 5

 San Miguel Corp. v. Semillano, 623 SCRA 114 (2010)

b. Legitimate Contracting or Subcontracting, DO No. 18-A-11, Sec. 4

c. Desirable – Unnecessary

 Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA 131 (1999)

d. Rights of Contractor’s Employees, DO No. 18-A-11, Sec. 8

e. Labor-Only Contractor is Declared Prohibited, D.O. No. 18-A-11, Sec. 6

 Polyfoam-RGC International Corp. v. Edgardo Concepcion, 672 SCRA 148 (2012)

 Petron v. Caberte, 757 SCRA 390 (2015)
 Quintanar, et al. v. Coca-Cola Bottlers Phil., Inc., G.R. No. 210565, 28 June 2016

f. Registration of Contractor, DO No .18-A-11, Secs. 14, 15

g. Solidary Liability of Indirect Employer/Direct Employer, DO No. 18-A-11, Sec. 27

 Eparwa Security and Janitorial Services, Inc. v. Liceo de Cagayan University, 508 SCRA
370 (2007)
 Benigno M. Vigilla, et al. v. Philippine College of Criminology, Inc. and/or Gregory Alan F.
Bautista, 698 SCRA 247 (2013)

h. Other Prohibitions, DO No. 18-A-11, Sec. 7

D. Pre-employment, Recruitment and Placement of Workers

References: Arts. 12-39; 2002 POEA Rules; Book 1, Rules III-VIII, Omnibus Rules; Migrant Workers
and Overseas Filipinos Act of 1995 (RA 8042), as amended by RA 9422 (2007) and RA 10022 (2010);
Anti-Trafficking in Persons Act 2003 (RA 9208), as amended by RA 10364

1. Pre-employment Policy – Statement of Objectives, Arts. 3, 12 (a) (b) (f); Const., Art. II, Sec. 9; Art.
XIII, Sec. 3 par. 1; RA 8042, Sec. 2, 4, 5, as amended by RA 10022

 Industrial Personnel & Management Services, Inc., SNC Lavalin Engineers & Contractors v.
Jose G. De Vera & Alberto B. Ariola, G.R. No. 205703, 7 March 2016

2. Private Sector – Agencies and Entities

a. Parties

1) Worker – Art. 13 (a); RA 8042, Sec. 3 (a), as amended

2) Private Employment Agency – Arts. 13 (c) (d), 12 (f), 14 (a)

3) Private Recruitment Entity – Arts. 13 (e) (f), 12 (f), 14 (a)

 5

b. Recruitment and Placement

1) Local Employment, Art. 13 (b)

2) Overseas Employment, RA 8042, Sec. 6, as amended

3) Policy of Deregulation, RA. 8042, as amended, Secs. 29, 30; RA

No. 9422

c. Allowed and Protected Entities

1) Allowed Private Agencies and Entities, Arts. 16, 25, 18, 12 (f); 2002 POEA Rules and
Regulations, Part I, Rule II, Sec. 1

2) Prohibited Business Agencies and Entities, Arts. 16, 18, 25, 26; 2002 POEA Rules and
Regulations, Part I, Rule II, Sec. 2

 Hornales v. NLRC, 364 SCRA 778 (2001)

d. Government Techniques of Regulation – Private Recruitment

1) Licensing

a) Qualifications: Citizenship and Capitalization, Arts. 27, 28; D.O. 141-14;

2002 POEA Rules and Regulations, Part II, Rule I, Sec. 1 (a) (b)

b) Issuance of License, Arts. 29, 30, 31; D.O. 141-14; 2002 POEA Rules and
Regulations, Part II, Rule II, Secs. 4, 5, 6, 7, 8, 9

2) Workers’ Fees, Art. 32; 2002 POEA Rules, Part II, Rule V, Sec. 3

 Sagun v. Sunace International Management Services, Inc., 644 SCRA 1717 (2011)

3) Reports/Employment Information, Arts. 33, 14 (d); RA 8042, Sec. 6 (h), as amended

4) Illegal Recruitment, Arts. 34, 38; RA 8042, Sec. 6 & 7 as amended, 8, 9, 10 as amended, 11,
12

 See: Hon. Patricia A. Sto. Tomas v. Rey Salac, et al., 685 Phil. 245 (2012)

a) Prohibited Practices

 PERT/CPM Manpower Exponent Co., Inc. v. Vinuya, et al., 680 SCRA 284 (2012)
 Stolt-Nielsen Transportation Group, Inc. & Chung Gai Ship Mgmt. v. Sulpecio
Medequillo, Jr., 663 SCRA 291 (2012)
 People v. Bernadette Pansacala, 672 SCRA 549 (2012)
 People v. Jeric Fernandez, 725 SCRA 152 (2014)

b) Undertaken by non-licensees, non-holders

 People v. Bayker, G.R. No. 170192, 10 February 2016

Note: Salazar v. Achacoso, 183 SCRA 145 (1990) – Art. 38 (c) was declared
unconstitutional; only a judge may issue warrants of search and arrest.
 6
5) Enforcement

a) Regulatory Power, Art. 36

b) Rule-Making Power, Art. 36

c) Visitorial Power, Art. 37

6) Integration of POEA Standard Employment Contract in Every Contract

 Wallen Maritime Services, Inc. v. Ernesto C. Tanawan, 679 SCRA 255 (2012)

a) Liberal Construction

b) Terms and Conditions

 Abante v. KJGS Fleet Management, Manila, 67 SCRA 734 (2009)

7) Joint and Several Liability of Agent and Principal, 2002 POEA Rules, Part II, Rule II, Sec. 1
(f) (3), (g); RA 8042, Sec. 10, pars. 2, 3, 4, 5, as amended; Omnibus Rules Impl. RA 8042 (8
July 2010), Rule VII, Sec. 3, pars. 1, 2

e. Jurisdiction

1) RTC over Criminal Action arising from Illegal Recruitment, RA No. 8042, Sec. 9; Omnibus
Rules Impl. RA 8042 (8 July 2010), Rule IV, Sec. 6

2) LA over Money Claims, RA 8042, Sec. 10, par. 1 as amended; Omnibus Rules Impl. RA
8042, Rule VII, Sec. 1

 Poseidon International Maritime Services, Inc. v. Tito R. Tamala,

Felipe S. Saurin, Jr., Artemio A. Bo-oc and Joel S. Fernandez, 700 SCRA 1(2013)
 Sameer Overseas Placement Agency, Inc. v. Joy Cabiles, 732 SCRA
22 (2014)

Note: Serrano v. Gallant Maritime Services, Inc., 582 SCRA 254 (2009)

See also: Pert/CPM Manpower Exponent Co., Inc. v. Vinuya, et al., supra

3) POEA over Administrative Cases

a) Pre-employment Cases, Omnibus Rules Impl. RA No. 8042,

Sec. 28 (a); Omnibus Rules Impl. RA 8042, Rule X, Sec. 6 (b)

b) Disciplinary Cases, Sec. 28 (b); Omnibus Rules Impl. RA 8042, Rule X, Sec. 6 (b)

See: Eastern Mediterranean Maritime Ltd. & Agemar Manning Agency, Inc. v.
Estanislao Surio, et al., 679 SCRA 305 (2012)

3. Public Sector Agencies – Employment Offices, Art. 12 (f); 14 (a); E.O. 247, Sec.
3 (Reorganizing POEA); POEA Rules and Regulations

4. Sanctions

a. Local Employment, Art. 39

b. Overseas Employment, Art. 35; RA 8042, Secs. 6, 7 &10 as amended

 7
5. Issues and Questions on Overseas Employment

Readings:

 Ofreneo, Rene, et al., Migration of Skills, Talents, and Expertise Development

Challenges for the Philippines, pp. 3 – 17, 31 – 40.
 Licuanan, Patricia B. Katas ng Saudi, a closer look. PLR Vol. 9, No. 1 (1985).
 Ofreneo, Rene. Is Migration the Country’s Development Option? In Migration,
Development and Policy Reforms, pp. 20 – 31.

6. Trafficking in Persons, Convention on the Suppression of the Traffic in Persons and of the
Prostitution of Others; RA 9208, as amended by RA 10364 and Revised Rules and Regulations
Implementing RA 9208, as amended

7. Alien Employment Regulation

References: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule XIV; 97-09, S. 2009 and DO No. 120-
12, S. 2012, as amended by D.O. No. 146-15; Const., Art. XII, Sec. 12

a. Coverage; Exemption, Art. 40; D.O. No. 146-15, Secs. 1, 2

 Almodiel v. NLRC, 223 SCRA 341 (1993)

b. Excluded, D.O. No. 146-15, Sec. 3

c. Conditions for Grant of Permit; Denial, D.O. No. 146-15, Secs. 4, 5, 6, 7, 8, 11, 13

 General Milling Corp. v. Torres, 196 SCRA 215 (1991)

 Pacific Consultants International Asia, Inc. v. Schonfeld, 516 SCRA 209 (2007)

c. Validity; Renewal of AEP, D.O. No. 146-15, Sec. 9, 10

d. Revocation; Cancellation; Grounds, D.O. No. 146-15, Sec. 12, 13

d. Appeal, D.O. No. 146-15, Sec. 14

e. Penalty for Working Without AEP, D.O. No. 146-15, Sec. 15

E. Human Resources Development

References: Arts. 57-81; Technical Education and Skills Development Authority Act of 1994 (TESDA)
(RA 7796), superseded Arts. 43-56; Dual Training Systems Act of 1994 (RA 7686); Const., Art. II, Sec.
17 & Art. IV, Secs. 1, 2 (4); RA 10869

See: DOJ Opinion No. 68, 2004 Re: Conflicts between Labor Code & TESD Act

1. Worker (Manpower) Development

a. Definition, Art. 44 (a); RA 7796, Sec. 4 (b), (c), (e)

b. Policy and Objectives, RA 7796, Secs. 2, 3

c. National Trade Skills Standards, RA no. 7796, sec. 22

2. Training and Employment of Special Workers

a. Apprentice
 8
1) Definition, Art. 58 (b; RA 7796, Sec. 4 (j), (k), (l)

2) Apprenticeable Occupation, RA 7796, Sec. 4 (m)

3) Qualification, Rule VI, Sec. II, Omnibus Rules; RA 7610, as

amended by RA 7658, Sec. 12

4) Allowed Employment; Requirement Program Approval, Art. 60

 Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)

5) Terms and Conditions of Employment, Art. 61, 72

6) Costs, Art. 71

7) Enforcement, Arts. 65, 66, 67

b. Learner

1) Definition, Art. 73; RA 7796, Sec. 4 (n)

2) Allowed Employment, Art. 74

3) Terms and Conditions of Employment, Arts. 75, 76

c. Persons with Disability

References: ILO Convention 159 (1983); Arts. 78-81; RA 7277, as amended by RA 9442,
and further amended by RA 10070 and RA 10524

1) Definition, RA 7277, Sec. 4 (a) (b) (c) (d)

2) Policy Declaration, RA 7277, Sec. 2

3) Coverage, RA 7277, Sec. 3

4) Employment Rights and Privileges, rt. 81; RA 7277, Secs. 4 (i), 5 (as amended by RA
10524), 6, 7

 Bernardo v. NLRC & FEBTC, 310 SCRA 186 (1999)

5) Discrimination, RA 7277, Secs. 32, 33

6) Enforcement, Secs. 44, 45, 46

F. Conditions of Work

References: Arts. 82-90; Omnibus Rules, Book III, Rules l, lA, ll

1. Hours of Work

a. Regulation; Rationale

 Manila Terminal Co. Inc. v. CIR, 91 Phil. 625 (1952)

b. Coverage/Exemptions, Art. 82; Rule l, Secs. 1-2

 9
1) Government Employees; Exemption, Arts. 82, 291; Const., Art. IX-B, Sec. 2 (1); Rule 1,
Sec. 2 (a)

2) Managerial Employees, Art. 82; 219 (m); Rule I, Sec. 2 (b)

(c)

 Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 (2002)

 Charlito Peñaranda v. Baganga Plywood Corp., 489 SCRA 94 (2006)

3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)

 Merdicar Fishing Corp. v. NLRC, 297 SCRA 440 (1998)

 Auto Bus Transport Systems, Inc. v. Bautista, 458 SCRA 578 (2005)
 Far East Agricultural Supply, Inc. v. Lebatique, 515 SCRA 491 (2007)

4) Dependent Family Members, Art. 82

5) Domestic Workers; Exemption on Assignment, Arts. 82, 139, 143; Rule I, Sec. 2 (d); RA
10361 & IRR of RA 10361

6) Persons in the Personal Service of Another, Art. 82; Rule I, Sec. 2 (d)

7) Piece Workers, Art. 82; Rule I, Sec. 2 (e); Rule VII-A, Sec. 8

 Labor Congress v. NLRC, 290 SCRA 509 (1998)

c. Normal Hours of Work, Art. 83; Dept. Advisory No. 4, series of 2010

d. Compensable Hours of Work – In general; Rule 1, Secs. 3 & 4

1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4 (a)

`
2) At Work, Art. 84 (b); Rule I, Sec. 3 (b)
e. Specific Rules

1) Rest Period

a) Short Duration or “Coffee Break”, Art. 84, par. 2; Book III, Rule I, Sec. 7, par 2.

b) More than 20 min., Rules I, Sec. 4 (b)

2) Meal Period

a) Regular Meal Period (One Hour), Art. 85; Rule I, Sec. 7, par. 1

 Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999)

b) Shorter Meal Period (Less than One Hour, but Not Less than
20 min.), Rule I, Sec. 7, par. 1

3) Waiting Time, Rule I, Sec. 5 (a)

 Arica v. NLRC, 170 SCRA 776 (1989)

4) On Call, Rule I, Sec. 5 (b)

5) Inactive due to Work Interruptions, Book III, Rule I, Sec. 4 (d)

 10
 University of Pangasinan Faculty Union v. University of Pangasinan, 127 SCRA 691
(1984)

6) Work after Normal Hours, Rule I, Sec. 4 (c)

 Robina Farms Cebu/Universal Robina Corp. v. Villa, G.R. No. 175869, 18 April 2016

7) Lectures, Meetings, Training Programs, Rule I, Sec. 6

8) Travel Time

 Rada v. NLRC, 205 SCRA 69 (1992)

f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11

1) Overtime in Ordinary Working Day, Art. 87; Rule I, Sec. 8

2) Emergency or Compulsory Overtime Work, Art. 89; Rule 1, Sec.

10

 Abduljuahid R. Pigcaulan v. Security & Credit Investigation, Inc., 663 SCRA 1 (2012)

3) Undertime Work/Leave, Art. 88

4) Additional Compensation, Art. 87; Rule 1, Sec. 9

5) Proof of Work/Employer Obligation

 Social Security System v. Court of Appeals, 348 SCRA 1 (2000)

g. Nightwork and Night shift Differential, ILO Conventions 89 (1948) and 171 (1990); RA No.
10151 and DO 119-12; Art. 86; Rule II, Secs. 1-6

 Shell Oil Co. of the Philippines, Ltd. v. Labor Union, 81 Phil. 315 (1948)
 Lepanto Consolidated Mining Co. v. Lepanto Local Staff Union, 562 SCRA 495
(2008)

a) Coverage/Exclusion, Art. 82, 86; Rule II, Sec. 1

b) Additional Compensation, Art. 86; Rule II, Sec.2, 3, 4, 5

2. Weekly Rest Periods

References: Arts. 91-93; Omnibus Rules, Book III, Rule III, Secs. 1-9

a. Coverage, Art. 82, 91; Rule III, Sec. 1

b. Right to Weekly Rest; Determination, Art. 91; Rule III, Secs. 3, 4, 5

c. Compulsory Work; Compensation, Arts. 91, 92

d. Premium Pay, Art. 93 (a) (b) (c); Rule III, Sec. 2, Sec. 7 (a), (b)

e. CBA on Higher Premium Pay, Art. 93 (d)

3. Holidays
 11
References: Art. 94; Omnibus Rules, Book III, Rule IV; P.D. 1083; Executive Order 203 (1987); EO
No. 292, 26 July 2007; R.A. 9177; R.A. 9492; R.A. 9849; Proc. 831 & Labor Advisory No. 9,series of
2014

a. Definition

1) Retail Establishments, Rule Impl. RA 6727, par. f

2) Service Establishment, Rule Impl. RA 6727, par. g

b. Coverage/Exclusions, Art. 94 (a); Rule IV, Sec. 1

 Mantrade/FMMC Division Employees and Workers Union v. Bacungan, 144 SCRA 510
(1986)
 David v. Macasio, 729 SCRA 67 (2014)

c. Regular Holidays/Special Holidays, EO No. 292, as amended by RA No. 9492

d. Holiday Pay, Art. 94 (b)

1) Faculty in Private School, Rule IV, Sec. 8 (a)

2) Divisor as Factor

 Trans-Asia Phil. Employees Association v. NLRC, 320 SCRA 347 (1999)

5) Sunday, Art. 93 (a), 2nd Sentence; Rule III, Sec. 2

 Wellington Investment Inc. v. Trajano, 245 SCRA 561 (1995)

6) Muslim Holiday, Art. 169-172; PD 1083; RA 9492; RA 9849

 San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (2002)

e. Absences, Rule lV, Secs. 6 (a), 10

f. Non-Working/Schedule of Rest Day, Rule IV, Sec. 6 (c)

4. Service Incentive Leave

a. Coverage, Art. 95 (a) (b); Rule V, Sec. 1

 Makati Haberdashery Inc. N. NLRC, 179 SCRA 449 (1989)

 Labor Congress v. NLRC, supra
 David v. Macasio, supra

b. Requirements; Treatment of Benefits, Art. 95 (a); Rule V, Secs. 2, 3, 5

c. Computation and Liability

 Sentinel Security Agency, Inc. v. NLRC, 295 SCRA 123 (1998)

 Auto Bus Transport Systems, Inc. v. Bautista, supra

5. Paternity Leave, Paternity Leave of 1996 (RA 8187), Secs. 1-6; Impl.
Rules

a. Coverage, Sec. 2; Rules, Sec. 2

 12
b. Conditions for Availment, Sec. 2; Rules, Secs. 1 (b) (c), 2, 3, 4

c. Availment of Benefits, Rules, Sec. 5

,
d. Benefits, Rules, Sec. 6

e. Treatment of Benefit, Rules, Sec. 7, 8, 9

f. Penalty, Sec. 5; Rules, Sec. 10

6. Parental Leave, Solo Parents’ Welfare Act of 2000 (RA 8972); Impl. Rules

a. Coverage, Sec. 3

b. Criteria for Support, Sec. 4, 8; Rules, Art. IV, Secs. 7-8

c. Conditions for Availment, Rules, Sec. 19

d. Other Benefits: Flexible Work Schedule, Non-discrimination in Work, Secs. 6, 7; Rules, Art.
V, Secs. 16, 17, 18

e. Treatment of Benefit: Non-Cumulative, Non-convertible, Rules, Secs. 19, 20, 21

7. Service Charges, Art. 96; Omnibus Rules, Book III, Rule VI

a. Covered and Exclusion, Art. 96, Secs. 1, 2

b. Sharing, Distribution, and Integration, Art. 96; Secs. 3, 4, 5

G. Minimum Wages and Wage Fixing Machinery

References: Art. 97-119; Omnibus Rules, Book III, Rules VII-VIII

1. Minimum Wages, Art. 99; Const., Art. XIII, Sec. 3, pars. 2, 4

a. Coverage, Arts. 97 (b) (c) (e), 98, Rule VII, Sec. 3

 Philippine Fisheries Development Authority v. NLRC, 213 SCRA 621 (1992)

b. Definition, Art. 97 (f)

c. Rules

1) No Work, No Pay (A fair day’s wage for a fair day’s labor)

 Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259 (2000)

 Sugue v. Triumph International (Phils.), 577 SCRA 323 (2009)

2) Equal Pay for Work of Equal Value, Art. 133 (a); ILO Convention 100 (1951)

 International School Alliance of Educators v. Quisumbing, supra

3) Form: Agreement for Compensation of Services, Art. 97 (f)

 Armis Taxi v. NLRC, 219 SCRA 306 (1993)

 Legend Hotel (Manila) v. Hernani S. Realuyo, 677 SCRA 10 (2012)

4) Employer to Prove Payment

 13

 Etom v. Aroma Lodging House, G.R. No. 192955, 9 November 2015

d. Exemption from Income Tax of Minimum Wage Earners, RA No. 9504, as amended by the
National Internal Revenue Code of 1997, Sec. 2

e. Wages, Arts. 97 (f), 99, 61, 75 (c), 80 (b); Rule VII, VII-A, Secs. 4-7;
NCR-17, 3 June 2012; NCR-18, 6 Sept 2013; NCR-19, 4 April 2015; NCR-20, 2 June 2016; RA
7323; 9547, secs. 1-2; Rule VII-A, Secs. 4-7

1) Minimum Wage, NCR-20, Sec. 1

2) Coverage/Exclusions, NCR-20, Sec. 2

3) Exemptions, NCR-20, Sec. 8

4) Determination of Compliance with Minimum Wage

 Iran v. NLRC, 289 SCRA 433 (1998)

5) Facilities and Supplements/Allowances, Rule VII-A, Secs. 4-7

 Millares v. NLRC & PICOP, 305 SCRA 500 (1999)

 SLL International Cables Specialist v. NLRC, 644 SCRA 411 (2011)
 Our Haus Realty Dev. Corp. v. Parian, et al., 72 SCRA 351 (2014)

6) Cash Wage/Commission, Art. 97 (f); Rule VII-A, Sec. 4

 Songco v. NLRC, 183 SCRA 610 (1990)

 Boie Takeda v. De la Serna, 228 SCRA 329 (1993)
 Philippine Duplicators v. NLRC, 241 SCRA 380 (1995)

7) Gratuity and Salary/Wages, Difference

 Plastic Town Center Corp. v. NLRC, 172 SCRA 580

(1989)

8) Effect on Benefits, Art. 100

 Davao Fruits Corporation v. Associated Labor Union, 225 SCRA 562 (1993)
 Philippine Journalists, Inc. v. Journal Employees Union, 697 SCRA 103 (2013)

2. Wage Fixing Machinery

References: ILO Convention 26 (1928); RA 6727, as amended; Art. 99, 120-124, 126-127; Rule IX;
NCR-17, 3 June 2012; NCR-18, 6 Sept. 2013; NCR-19, 16 March 2015; NCR-20, 2 June 2016

a. Rationale for Wage Rationalization, RA 6727, Sec. 2

b. Agencies in Wage Fixing Machinery

1) National Wages and Productivity Commission, RA 6727, Sec. 3; Arts. 120, 121, 126

2) Regional Tripartite Wages and Productivity Board, RA 6727, Sec. 3; Arts. 122, 126
 14

 Nasipit Lumber Company, Inc. v. NLRC, 289 SCRA 667 (1998)

c. Standards/Criteria for Minimum Wage Fixing, RA 6727, Sec. 3; Art. 124

d. Wage Order, Arts. 123, 124

1) Methods of Fixing

a) Floor Wage method

b) Salary – Ceiling Method

 Employers Confederation of the Phils. V. National Wage

and Productivity Commission, 201 SCRA 759 (1991)

2) Validity

 Metropolitan Bank and Trust Co., Inc. v. National Wages Productivity Commission, 514
SCRA 346 (2007)

3) Wage Distortion, Art. 124, pars. 4, 5, 6, 7

 Prubankers Association v. Prudential Bank & Trust Co., 302 SCRA 74 (1999)
 Bankard Employees Union-WATU v. NLRC, 423 SCRA 148 (2004)

3. Wage Payment and Protection, ILO Convention 95 (1949)

a. Form of Payment; Exemption, Art. 102; Civil Code, Art. 1705; Rule VIII, Secs. 1, 2

 Congson v. NLRC, 243 SCRA 260 (1995)

b. Time of Payment; Exemption, Art. 103, Rule VIII, Sec. 3

 Gilles v. CA, Schema Konsult, 589 SCRA 399 (2009)

c. Place of Payment; Exemption, Art. 104, Rule VIII, Sec. 4

See: Labor Advisory on Payment of Salaries Thru Automated Teller Machines (ATM), 25 Nov.
1996

d. Direct Payment of Wages; Exception, Art. 105, Secs. 5, 6

 Bermiso v. Escano, Inc., 105 Phil. 231 (1959)

4. Wage Prohibitions, ILO Convention 95 (1949)

a. Wage Interference in Disposal of Wages, ILO, Art. 6; Art. 112; Rule VIII, Sec. 9; Labor Advisory
No. 11, s. 2014

b. Wage Deduction/Exception, ILO, Art. 8, 9; Art. 113; Rule VIII, Sec. 10; Labor Advisory No. 11, s.
2014

 Genesis Transport Service, Inc. v. UMMGT & Taroy, 617 SCRA 352 (2010)
 Niña Jewelry Manufacturing of Medal Arts, Inc. v. Madeline C. Montecillo & Liza M. Trinidad,
661 SCRA 416 (2011)
 Milan, et al. v. NLRC, 759 SCRA 1 (2015)
 15

See also: Marietta N. Portillo v. Rudolf Lietz, Inc. 683 SCRA 568 (2012)

c. Requirement to Make Deposits for Loss or Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11

 Dentech Manufacturing Corp. NLRC, 172 SCRA 588

(1989)
 Five J Taxi v. NLRC, 235 SCRA 556 (1994)

d. Withholding of Wages, Art. 116, 113; Civil Code, Art. 1706

 SHS Perforated Materials v. Diaz, 633 SCRA 258 (2010)

e. Deduction to Ensure Employment, Art. 117

f. Retaliatory Measures, Art. 118

g. False Reporting, Art. 119; Rule X, Sec. 13

h. Keeping of Employee’s Records in a Place other than the Workplace, Rule X, Secs. 11-12

 South Motorists Enterprises v. Tosoc, 181 SCRA 386 (1990)

i. Garnishment/Execution, Civil Code, Art. 1708

 GAA v. Court of Appeals, 140 SCRA 304 (1985)

5. Work Preference in the Event of Bankruptcy, Art. 110; Book III, Rule VIII, Sec. 7; Civil Code, Arts.
1207, 2241 (6), 2242 (3), 2244 (2), 2246, 2248, 2250

 Republic v. Peralta, 150 SCRA 37 (1987)

 Manila Banking Corp. v. NLRC, 279 SCRA 602, 621-642 (1997)

6. Wage Recovery/Jurisdiction, Arts. 128, 129, 217, 111; Book III, Rule X, Secs. 1-5

 Cirineo Bowling Plaza v. Gerry Sensing, supra

 Meteoro, et al. v. Creative Creatures, Inc., 592 SCRA 481 (2009)
 Cotabato Communications Corp. v. Hon. DOLE Sto. Tomas, et al., G.R. No. 217575, 15
June 2016

H. Thirteenth Month Pay

References: PD No. 851; Revised Guidelines on the Implementation of 13th Month Pay Law, 16 Nov.
1987, Secs. 1, 2, 3, 5, 6, 7, 8

1. History of the Law

 Dentech Mfg. Corp. v. NLRC, supra

2. Coverage, PD No. 851, Secs. 1-2; Revised Guidelines on the Implementation of 13th Month Pay
Law, 16 Nov. 1987, Secs. 1, 2, 3, 5, 6, 7, 8; P.D. No. 851, Secs. 1-2

 Archilles Manufacturing Corp. v, NLRC, 244 SCRA 750 (1995)

 Ultra Villa Food Haus v. Geniston, 309 SCRA 17 (1999)

3. Rationale, PD No. 851, Whereas Clauses and LImitations

 16
th
4. Amount and Date of Payment, Revised Guidelines on the Implementation of the 13 Month Pay Law

a. Basic Wage/Commissions, Sec. 4

 Boie Takeda v. Dela Serna, supra

 Iran v. NLRC, supra
 Intercontinental Broadcasting Corporation v. Panganiban, 514 SCRA 8404 (2007)

b. Substitute Payment, Sec. 2

 Framanlis Farms, Inc. v. NLRC, 171 SCRA 87 (1989)

c. 14th Month Pay

 Kamaya Port Hotel v. NLRC, 177 SCRA 160 (1989)

d. Diminution

 Davao Fruits Corp. v. Associated Labor Unions, supra

I. Bonus

1. Nature
 Philippine Duplicators Inc. v. NLRC, supra

2. Definition; When Demandable

 Philippine Appliance Corp. v. Court of Appeals, 430 SCRA 525 (2004)

 Eastern Telecommunications Phil. Inc. v. Eastern Telecoms Employees Union, 665 SCRA 516
(2012)

J. Working Conditions for Special Group of Workers

1. Women

References: Arts. 130-138 [130 & 131 is repealed; 132-136]; Omnibus Rules, Book III, Rule XII,
Sec. 1; Constitution, Arts. II, Sec. 13 & XIII, Sec. 14; Women in Development and Nation Building
Act (RA 7192); Anti-Sexual Harassment Act of 1995 (RA 7877); Anti-Violence Against Women and
Their Children Act of 2004 (RA 9262); The Magna Carta of Women (RA 9710); Expanded
Breastfeeding Promotion Act of 2009 (RA 10028)

Reflection Paper/Guide Questions: Do the provisions on the Employment of Women engender

equality? What amendments would you propose to make them gender-fair and gender-friendly?

a. Equality: Formal Equality vs. Substantive Equality

Readings:

 Bartlett, Katharine, Gender Law, in Duke Journal of Gender Law and Policy (1994)
 Formal Equality and Substantive Equality in the Textbook on Gender and the Law by
Angela Harris
 Baldoz, Rosalinda, Job discrimination against women in the work environment: the
Philippine setting, PLR, Vol. 24, No. 1 (2000).

b. Women under the Constitution, Art. II, Sec. 14; Art XIII, Sec 14; RA No. 9710, Secs. 2 par. 1 &
12
 17
 Philippine Association of Service Exporters v. Drilon, 163 SCRA 386 (1988)

c. Coverage, Rule XII, Sec. I

d. Night Work/Exception, ILO Convention 89 (1948); Arts. 154, 158; DA No. 4, series of 2010

Note: RA No. 10151 repealed Arts. 130-131

e. Prohibited Acts

1) Discrimination, ILO Conventions 100 (1951) and 111 (1958); CEDAW Art. 11; Art. 133; RA
No. 9710, Secs. 2, par. 2 & 12

2) Stipulation Against Marriage, Art. 134

 Phil. Telegraph and Telephone Co. v. NLRC, supra

 Duncan Association of Detailman-PTGWO v. Glaxo Wellcome Philippines, Inc., 438
SCRA 343 (2004)
 Star Paper Corporation, et al. v. Simbol, et al., 487 SCRA 228 (2006)
 Capin-Cadiz v. Brent Hospital and Colleges, Inc. G.R. No. 187417, 24 February 2016

3) Discharge to Prevent Employment of Benefits, Art. 135 (1)

4) Discharge on Account of Pregnancy or Fear of Getting Pregnant, Art. 135 (2), (3)

5) Discharge on Account of Testimony, Rule XII, Sec. 13 (d)

6) Expulsion of Women Faculty Due to Pregnancy Outside of Marriage, RA No. 9710, Sec. 13
(c)

f. Facilities and Safe Working Conditions, Art. 130; Rule XII, Sec. 14; RA 9710, Sec. 22 (b); RA
10028, Sec. 4, 6 & 7 and DO 143-15

g. Family Planning Services, Art. 132; Rule XII, Sec. 11; RA 9710, Secs. 17, 22 (b)

h. Special Women Workers, 136; Rule XII, Sec. 4

i. Leaves and other Benefits

1) Maternity Leave, Social Security Law of 1997 (RA 1161, as

amended by RA 8282), Sec. 14-A, RA 828

2) Victim Leave, RA 9262, Secs. 3, 43; Impl. Rules, Rule VI, Sec. 42; RA 9710, Secs. 4 (k), 17
(a) 8)

3) Special Leave Benefits (for Gynecological Disorders), RA 9710, Sec. 18; Impl. Rules, Rule
II, Sec. 7 T & Rule IV, Sec. 21; DO No. 112-11, as amended by DO No. 112A-12

j. Sexual Harassment, RA 7877, Secs. 3, Sec. 4

 Philippine Aelous Automotive United Corp. v. NLRC, 331SCRA 237 (2000)

 Domingo v. Rayala, 546 SCRA 90 (2008)

2. Minors

References: Arts 137-138 [137-138]; Omnibus Rules, Book III, Rule XII, Secs. 2-3; Special
Protection of Children Act of 2003 (RA 7610, as amended by RA 9231); DO No. 65-04; Dept.
Circular No. 03-09; ILO Convention No. 182 (1999); ILO Recommendation No. 190
 18

a. Minors under the Constitution, Art. II, Sec. 13, 18; Art. XV, Sec. 3 (2)

b. Coverage/Definition, RA 9231, Sec. 2, par. 3 on Sec. 12; Rule XII, Sec. 1; DO No. 65-04, Sec. 3

1) Child, DO No. 65-04, Sec. 3 (a)

2) Child Labor, DO No. 65-04, Sec. 3 (b)

3) Working Child, DO No. 65-04, Sec. 3 (c)

c. Minimum Employable Age, ILO Convention 138 (1973); Art. 137; RA 7610, as amended by RA
No. 9231, Secs. 12-16; DO No. 65-04, Secs. 6, 7; D.A. No. 01-08

d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a

e. Prohibitions Against Worst Forms of Child Labor, ILO Convention 182 (1999); RA 9231, Sec. 3
on Sec. 12-d; Sec 5 on sec. 14; DO No. 65-04, Sec. 5

f. Prohibition against Discrimination, Art. 138

g. Jurisdiction, Sec. 9 on Sec. 16-A

3. Domestic Workers or “Kasambahay” (formerly Househelpers)

References: RA 10361 & IRR; Civil Code, Arts. 1689-1699; ILO Convention 189 & ILO
Recommendation 201; Department Advisory No. 1-14

a. Declaration of Policies, Art. 1, Sec. 2

b. Coverage, Art. I, Sec. 3

c. Definition, Art. I, Secs. 4 (c), (d), (f)

d. Employment Age, Art. III, Sec. 16

e. Pre-Employment Prohibitions, Secs. 13, 14, 15

f. Employment Contract, Art. III, Sec. 11

g. Employer’s Reportorial Duties, Art. III, Sec. 17

h. Rights and Privileges, Art. II, Secs. 5, 6, 7, 8, 9

1) Standard of Treatment, Art. II, Sec. 5

2) Board and Lodging and Medical Attendance, Art. II, Sec. 6

3) Guarantee of Privacy, Art. Sec. 7

4) Access to Outside Communication, Art. II, Sec. 8

5) Right to Education and Training, Art. II, Sec. 9

i. Wage, Art. IV, Secs. 24, 25 1st and 3rd sentences, 26

j. Wage Prohibitions
 19
th
1) Charging by the original employer for temporary domestic service, Art. IV, Sec. 23, 4
sentence

2) Deductions other than those mandated by law, Art. IV, Secs. 25 2nd sentence, 27, 28

3) Payment in forms other than cash, Art. IV, Sec. 25, 3rd sentence

4) Interference in the disposal of wages, Art. IV, Sec. 27

5) Withholding of Wages, Art. IV, Sec. 28

k. 13th Month Pay; SSS and other Benefits, Art. IV, Sec. 25 par. 2, 30

l. Duty and Non-Assignment to Non-household, Secs. 22, 23

 Fernando Co v. Lina B. Vargas, 660 SCRA 451 (2011)

See: Apex Mining Company, Inc. v. NLRC, 196 SCRA 251 (1991)

m. Rest Periods and Leave Benefits, Art. IV, Secs. 20, 21, 2

n. Health & Safety, Art. IV, Sec. 19

o. Termination of Service

1) Fixed Duration, Art. V, Sec. 32 par. 1

2) Not Fixed, Art. V, Sec. 32 par. 2

p. Grounds for Termination

1) Initiated by the Domestic Worker, Art. V, Sec. 33

2) Initiated by the Employer, Art. V, Sec. 34

3) Mutually Agreed, Art. V., Sec. 32, par. 3

q. Employment Certification, Art. V, Sec. 35

r. Prohibition Against Privileged Communication, Art. II, Sec. 10

s. Remedies

1) Rescue and Rehabilitation of Abused Domestic Worker, Art. IV, Sec. 31

2) Mechanism for Settlement of Disputes

a) Jurisdiction of the DOLE Regional Office, Art. VII, Sec. 37, par. 1

b) Jurisdiction of Regular Courts, Art. VII, Sec. 37, par. 2

3) Penalty, Art. IX, Sec. 40

t. “Araw ng mga Kasambahay”: 18 January 2013, Art. VIII, Sec. 39

4. Homeworkers

Reference: Arts. 151-153; DO No. 5, DOLE, 4 Feb. 1993, now Book III, Rule XIV
 20
a. Coverage and Regulation, Arts. 151-153 [151-153]; DO 5, now Book III, Rule XIV, Sec. 1

b. Definition, DO No. 5, Sec. 2

c. Registration, Secs. 4-5

d. Conditions of Employment/Deductions, Secs. 6-9

e. Joint and Several Liability of Employer/Contractor, Sec. 11

g. Prohibitions, Sec. 13

h. Enforcement, Sec. 10

5. Night Workers

Reference: Arts. 154-161

a. Coverage and Exception, Art. 154, par. 1

b. Definition, Art. 154, par. 2

c. Rights

1) Health Assessment, Art. 155

2) Mandatory Suitable First-aid Facilities, Art. 156

3) Transfer, Art. 157

4) Women Night Workers, Art. 158

5) Compensation, Art. 159

6) Social Services, Art. 160

7) Consultation on Night Work Schedules, Art. 161

K. Mental, Dental and Occupational Safety

References: Art. 162-171; Omnibus Rules, Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-10; Technical
Guidelines for Hazardous/Non-Hazardous Establishments, DOLE Memo. Circ. No. 2, S 1998

1. Coverage, Rule I, Sec. 1

2. First Aid Treatment, Art. 162

3. Emergency Medical and Dental Services

a. When Required, Art. 163

b. When Not Required, Art. 164

4. Employer Assistance, Art. 167

5. Occupational Safety and Health Standards, Training of

Supervisor/Technician
 21
a. When Required, Book IV, Rule II, Secs. 5 (a) (d)

b. When Not Required, Book IV, Rule II, Sec. 5 (e)

6. Enforcement/DOLE Obligations, Arts. 168-171

Note: Arts. 170-214: repealed by SSS Law of 1997 (RA 1161, as amended); Re: Art. 209, see
National Health Insurance act of 1995 (RA 7875); Book IV, Rule II, Sec. 8

See also: Technical Guidelines for Hazardous/Non-Hazardous

Establishments, DOLE Memo. Circ. No. 2, S 1998

L. Employee Classification

References: Arts. 293-302, Book VI, Rule 1, Secs. 1, 5, 6

1. Coverage, Art. 293

2. Employer Recognition

 Pangilinan v. General Milling Corporation, 434 SCRA 159 (2004)

3. Employer Determination/Designation

 Violeta v. NLRC, 280 SCRA 520 (1997)

 San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)

4. Kinds of Employee, Arts. 295-296

a. Regular Employees, Art. 295, 1st par.; 295, 2nd par.; 296, last sentence; 75(d); Omnibus Rules,
Book VI, Rule 1, Secs. 5(a), (b) and 6.

1) Definition

 Pangilinan v. General Milling Corporation, supra

2) Nature of Work, Art. 295

 Hacienda Fatima v. National Federation of Sugarcane Workers Food and General Trade,
396 SCRA 518 (2003)
 Romares v. NLRC, 294 SCRA 411 (1998)

3) Extended Period

 Audion Electric Co., Inc. v. NLRC, 308 SCRA 340 (1999)

4) Repeated Renewal of Contract

 Maraguinot v. NLRC, 284 SCRA 539 (1998)

b. Project Employee, Art. 286 [295], 1st par.; Policy Instruction No. 20 (1977); DOLE D.O. No. 19
(1993)

1) Definition

 Hanjin Heavy Industries & Construction Co. v, Ibañez, 555 SCRA 537 (2008)

2) Principal Test of Project Employment

 22

 William Uy Construction Corp. v. Trinidad, 615 SCRA 180 (2010)

 DM Consunji Corp. v. Rogelio Bello, 702 SCRA 347 (2013)
 Macarthur Malicdem and Hermenigildo Flores v. Marulas Industrial Corporation and
Mike Mancilla, 717 SCRA 563 (2014)
 Omni Hauling Services, Inc. et al. v. Bon, 734 SCRA 270 (2014)

3) Workpool Employees

 J & D.O. Aguilar Corp. v. NLRC, 269 SCRA 596 (1997)

 Maraguinot v. NLRC, supra

c. Casual, Art. 286 [295], 2nd par.; Omnibus Rules, Book VI, Rule 1, Sec. 5 (b)

1) Nature of Work

 Hacienda Leddy v. Villegas, 735 SCRA 663 (2014)

2) One-Year Service

 Integrated Contractor and Plumbing Works, Inc. v. Court of Appeals, 466 SCRA 544
(2005)

d. Fixed-Term

1) Legal Basis

 Brent School v. Zamora, 181 SCRA 702 (1990)

 Basan v. Coca-Cola Bottlers Philippines, 749 SCRA 541 (2015)
 Integrated Contractor and Plumbing Works, Inc. v. Court of Appeals, 466 SCRA 544
(2005)

2) Fixed-Term Employee as distinguished from Independent Contractor, Regular Employee and

Project Employee

 Fuji Television Network, Inc. v. Espiritu, G.R. Nos. 204944-45, December 3, 2014

3) Fixed-Term as distinguished from Project Employee

 GMA Network, Inc. v. Pabriga, et al., G.R No. 176419, 27 Nov. 2013

4) No Implied Renewal of Employment

 Unica v. Anscor Swire Ship Management Corp., 716 SCRA 61 (2014)

5) Non-renewal of Contract is Management Prerogative

 Fonterra Brands Phils., Inc. v. Largado, 753 SCRA 649 (2015)

e. Seasonal, Art. 286 [295], 1st par.

 Universal Robina Sugar Milling Corp. and Cabati v. Ang, 713 SCRA 596 (2014)
 Paz v. Northern Tobacco Redrying Co., Inc., 751 SCRA 99 (2015)

f. Probationary, Art. 287 [296]; 61, 2nd sentence; 75 (d); Book VI, Rule I, Secs. 2, 3, 4, 5, 6; Art. 75
(d)
 23
1) Definition

 Philippine Federation of Credit Cooperatives, Inc. v. NLRC, 300 SCRA 72 (1998)

 Cebu Marine Beach Resort v. NLRC, 414 SCRA 173 (2003)
 Enchanted Kingdom, Inc. v. Verzo, G.R. No. 209559, 9 Dec. 2015

2) Employer Right to Set Period/Obligation

 Orient Express Placement Philippines v. NLRC, 273 SCRA 256 (1997)

3) Duration; Exception

 Cathay Pacific Airways, Limited v. Marin, 501 SCRA 461 (2006)

 Canadian Opportunities Unlimited, Inc. v. Bart Q. Dalangin, 665 SCRA 21 (2012)

4) Criteria for Regularization

 Mylene Carvajal v. Luzon Development Bank and/or Ramirez, 678 SCRA 132 (2012)
 UNIVAC Development, Inc. v. William M. Soriano, 699 SCRA 88 (2013)
 Abbott Laboratories, Phils. v. Alcaraz, 701 SCRA 682 (2013)

5) Extension of Contract

 Mariwasa Manufacturing, Inc. v. Leogardo, 169 SCRA 465 (1989)

6) Absorbed Employees

 Cebu Stevedoring Co. Inc. v. Regional Director, 168 SCRA 315 (1988)

7) Rule on Private School Teachers

 La Consolacion College v. NLRC, 366 SCRA 226 (2001)

 Colegio del Santisimo Rosario and Sr. Zenaida S. Mofada, OP v. Emmanuel Rojo,
705 SCRA 63 (2013)

M. Suspension of Business Operation – When Not Deemed Terminated

References: Art. 301; Book VI, Rule 1, Sec. 12

1. Bona-fide Suspension of Operation; Performance of Military or

Civic Duty

2. “Floating Status” Beyond Six (6) Months Constitutes Termination

 Lopez v. Irvine Construction Corp., 733 SCRA 589 (2014)

 Exocet Security & Allied Services Corp. v. Serrano, 737 SCRA 40 (2014)
 Valdez v. NLRC, 286 SCRA 87 (1998)
 SKM Art Craft Corporation v. Efren Bauca, et al., 710 SCRA 652 (2013)

N. Termination of Employment

References: Const., Art. II, Sec. 20; Art. XIII, Sec. 3; Arts. 297-301; 292 (b); Omnibus Rules, Book VI,
Rule I
 24
1. Coverage, Art. 293; Book VI, Rule 1, Sec. 1

2. Security of Tenure, Art 294; 292] (b)

a. Nature/Rationale

 Llosa Tan v. Silahis International Hotel, 181 SCRA 738 (1990)

b. Coverage

 Labajo v. Alejandro, 165 SCRA 747 (1988)

 Skillworld Management and Marketing Corporation v. NLRC, 186 SCRA 465 (1990)
 Inter-Orient Maritime Enterprises Inc. v. NLRC, 235 SCRA 268 (1994)

c. Management Prerogative

 Negros Slashers, Inc. v. Alvin L. Teng, 666 SCRA 629 (2012)

 Dongon v. Rapid Movers and Forwarders Co., Inc., 704 SCRA 56 (2013)

d. Guidelines in the Disposition of Labor Disputes

 Mansion Printing Center v. Bitara, 664 SCRA 44 (2012)

e. Guidelines on Imposition of Penalty

 Valiao v. Court of Appeals, 435 SCRA 543 (2004)

 Etchuban v. Sulpicio Lines, Inc., 448 SCRA 516 (2005)

3. Termination of Employment by Employee

a. Resignation

 Lazaro v. Dacut, et. al. v. CA, 550 SCRA 260 (2008)

1) Just Causes, Art. 300 (b)

2) Without Just Cause – Requisites, Art. 300 (a); Const. Art. III, Sec. 18 (2)

 Azcor Manufacturing v. NLRC, 303 SCRA 26 (1999)

 Michelle Tuazon v. Bank of Commerce, et al., 686 SCRA 174 (2012)

b. Forced Resignation

 Mandapat v. Add Force Personnel Services, Inc. 624 SCRA 155 (2010)

4. Termination of Employment by Employer

a. Basis of Right and Requirements, Arts. 293-301; 292 (b); Const., Art. XIII, Sec. 3, pars. 2 & 3

1) Basis: Employer’s Self-Protection, Const., Art. XIII, Sec. 3,

pars. 2 & 3

 Bienvenido Gilles v. CA, Schema Konsult, 588 SCRA 298 (2009)

 Norman Yabut v. MECO, 663 SCRA SCRA 92 (2012)

2) Requisites of Lawful Dismissal: Substantive and Procedural

Due Process
 25

 Philippine National Bank v. Cabanag, 460 SCRA 514 (2005)

 Metro Eye Security, Inc. v. Julie V. Solsona, 534 SCRA 375 (2007)

b. Substantive Requirements – Just Causes, Art. 297, 294, 292 (b)

1) Serious Misconduct, Art. 297 (a)

 Northwest Airlines, Inc v. Del Rosario, 734 SCRA 514 (2014)

 Coffee Bean & Tea Leaf Phil., Inc. and Chu v. Arenas, 753 SCRA 187 (2015)

Willful Disobedience (insubordination), Art. 297 (a)

 Lores Realty Enterprises, Inc. v. Virginia E. Pacia, 645 SCRA 121 (2011)
 Mirant (Phil) Corp. v. Danilo A. Sario, 686 SCRA 250 (2012)
 Nathaniel N. Dongon v. Rapid Movers and Forwarders Co., Inc., 704 SCRA 56
(2013)

2) Gross and Habitual Neglect of Duties, Art. 297 (b)

 Philippine National Bank v. Dan Padao, 660 SCRA 289 (2011)

 Jumuad v. Hi-Flyer Food, Inc., 657 SCRA 288 (2011)
 Cavite Apparel, Inc. & Timoteo v. Marquez, 690 SCRA 48 (2013)
 Century Iron Works, Inc. and Benito Chua v. Eleto B. Bañas, 699 SCRA 157 (2013)

3) Fraud or Willful Breach of Trust, Art. 297 (c)

Guidelines in the Application of the Doctrine; Two Classes of Positions of Trust

 Prudential Guarantees and Assurance Employees Labor Union v. NLRC, 673 SCRA
375 (2012)
 P.J. Lhuiller, Incl v. Velayo, 740 SCRA 147 (2014)

Managerial Employees

 Manese, et al. v. Jollibee Foods, et al., 684 SCRA 34 (2012)

 Rolando DS. Torres v. Rural Bank of San Juan, Inc., et al., 693 SCRA 357 (2013)

4) Commission of Crime, Art. 288 [297] (d)

 Sampaguita Garments Corporation v. NLRC, 233 SCRA 260 (1994)

5) Analogous, Art. 288 [297] (e)

 Cathedral School of Technology v. NLRC, 214 SCRA 551, 559 (1992)

 Sampaguita Auto Transport Corp. v. NLRC & Sagad, 689 SCRA 777 (2013)

6) Others – Just Causes Claimed by Employer

a) Abandonment

 Floren Hotel v. NLRC, 456 SCRA 128 (2005)

 EG & Const. Corp. & Edsel Galeos v. Ananias P. Sato, et al., 643 SCRA 492
(2011)
 Tan Brothers Corporation of Basilan City through its Owner/Manager, Mauro F.
Tan v. Edna R. Escudero, 700 SCRA 583 (2013)
 26
b) Courtesy Resignation

 Batongbacal v. Associated Bank, 168 SCRA 600 (1988)

c) Change of Ownership

 Manlimos v. NLRC, 242 SCRA 145 (1995)

 Elcee Farms, Inc. v. NLRC, 512 SCRA 602 (2007)

d) Habitual Absenteeism/Tardiness

 Manila Electric Co. v. NLRC, 263 SCRA 531 (1996)

e) Inefficiency

 Sameer Overseas Placement Agency, Inc. v. Joy Cabiles, 732 SCRA 22 (2014)

f) Past offenses

 Ramoran v. Jardine CMG Life Insurance Co., Inc. 326 SCRA 208 (2000)
 Century Canning Corp. v. Vicente Randy R. Ramil, 627 SCRA 192 (2010)

g) Immorality

 Santos v. NLRC, 287 SCRA 117 (1998)

 Capin-Cadiz v. Brent Hospital and Colleges, Inc. supra

h) Pregnancy out of Wedlock

 Leus v. St. Scholastica’s College Westgrove, 748 SCRA 378 (2015)

i) Qualification Requirements

 St. Luke’s Medical Center Employee’s Association-AFW (SLMCEA-AFW) v.

NLRC, supra

7) Constructive Dismissal

 The Philippine American Life and General Insurance Co. v. Gramaje, 442 SCRA
274 (2004)
 Dusit Hotel Nikko v. National Union in Hotel, Restaurant and Allied Industries
(NUWHRAIN)-Dusit Hotel Nikko Chapter, 466 SCRA 374 (2005)
 Divine Word College of Laoag v. Mina, G.R. No. 195155, 13 Apr. 2016

8) Transfer/Reassignment of Work

 OSS Security & Allied Services Inc. v. NLRC, 325 SCRA 157 (2000)
 Jonathan Morales v. Harbor Centre Port Terminal, Inc., 664 SCRA 110 (2012)
 Best Wear Garments v. Lemos & Ocubillo, 687 SCRA 355 (2012)

9) Promotion

 Phil. Telegraph & Telephone Corp. v. Court of Appeals, 412 SCRA 263 (2003)

10) Residency Training

 Felix v. Buenaseda, 240 SCRA 139 (1995)

 27

11) Preventive Suspension, Book V, Rule XXII, Secs. 8, 9 (Old

provision – prior to DO 40-03. (At present, no specific rule
governs Preventive Suspension)

c. Substantive Requirements – Authorized Causes, Art. 289 [298]

1) Basis: Employer’s Right – Const., Art. XIII, Sec. 3, par. 4; Art. 298

 Edge Apparel Inc. v. NLRC, 286 SCRA 302 (1998)

2) Business Related or Authorized Causes, Art. 298

a) Installation of Labor Saving Devices

b) Retrenchment to Prevent Losses

 Flight Attendant & Stewards Association of the Philippines v. PAL, 602 SCRA 473
(2009)
 Sanoh Fulton Phils., Inc. and Mr. Eddie Jose v. Emmanuel Bernardo and Samuel
Taghoy, 703 SCRA 565 (2013)
 Philippine Airlines, Inc. v. Ligan, et al., G.R. No. 203932, 8 June 2016

c) Redundancy

 Asufrin v. San Miguel Corp., 425 SCRA 270 (2004)

 SPI Technologies, Inc. and Lea Villanueva v. Victoria K. Mapua, 720 SCRA 743
(2014)
 Ocean East Agency Corp., et al. v. Lopez, G.R. No. 194410, 14 Oct. 2015

d) Closure of Business

 Eastridge Golf Club, Inc. v. Eastridge Labor Union-SUPER, 563 SCRA 93 (2009)
 Manila Polo Club Employees’ Union (MPCEU) FUR-TUCP v. Manila Polo Club, Inc.
702 SCRA 20 (2013)
 Sangwoo Philippines, Inc., et al. v. Sangwoo Philippines, Inc. Employees Union-
OLALIA, 711 SCRA 618 (2013)

3) Disease, Art. 290 [299]

 Deoferio v. Intel Technology Philippines, Inc., 726 SCRA 676 (2014)

4) Enforcement of Union Security Clause in the CBA

 Inguillo & Bergante v. First Phil. Scales, Inc., 588 SCRA 471 (2009)

5) Dismissal of Union officers in Illegal Strike/dismissal of Union Members in the Commission of

Illegal Acts, Art. 270 [279] (a)

6) Termination for Failure to Meet Qualification Requirement

 University of the East, et al. v. Pepanio, 689 SCRA 250 (2013)

See: St. Luke’s Medical Center Employees Association – AFW v. NLRC, 7 Mar. 2007
 28

d. Procedural Requirements, Art. 292 (b); Book VI, Rule I, Secs. 1-3 Omnibus Rules

1) Essential Elements; Liability for Non-Compliance with Procedural Requirements

 Serrano v. NLRC, 323 SCRA 445 (2000)

 Agabon v. NLRC, 442 SCRA 573 (2004)
 JAKA Food Processing Corporation v, Darwin Pacot, et al., 454 SCRA 119 (2005)
 Sameer Overseas Placement Agency v. Cabilles, supra

2) Right to Counsel, Art. 292 (b), 1st sentence

 Salaw v. NLRC, 202 SCRA 7, 12-15 (1991)

3) Two-Notice Requirement – 292 (b), 1st sentence

 Agabon v. NLRC, supra

 Sameer Overseas Placement Agency, Inc. v. Cabiles, supra

4) Hearing, Art. 292 (b), 1st Sentence

 Technol Eight Phil. Corp. v. NLRC, 618 SCRA 248 (2010)

 Prudential Guarantees and Assurance Employees Labor Union v. NLRC, supra
 Punongbayan and Araullo v. Lepon, G.R. No. 174115, November 9, 2015

e. Filing of Complaint for Dismissal

1) Use of Position Paper in Labor Cases

 Shoppes Manila, Inc. v. NLRC, 419 SCRA 354 (2004)

2) Supplemental Rejoinder vis-à-vis Position Paper, 2011 NLRC

Rules of Procedure

 Am-Phil Food Concepts, Inc. v. Padilla, 737 SCRA 339 (2014)

3) Burden of Proof

 Macasero v. Southern Industrial Gases Phil., 577 SCRA 500 (2009)

4) Degree of Proof - Substantial Evidence

 Kulas Ideas & Creations, et. al. v. Alcoseba & Arao-arao, 613 SCRA 217 (2010)
 Quiro-Quiro v. Balagtas Credit Cooperative and Community Development Dev., Inc.,
G.R. No. 209921, 13 Jan. 2016

5) Decision – Const., Art. VIII, Sec. 14

6) Appeal; Appeal Bond, Art. 229

 University Plans, Inc. v. Belinda Solano, et al., 652 SCRA 492 (2011)
 Andrew James McBurnie v. Eulalio Ganzon, 707 SCRA 646 (2013)

7) Quitclaim: Requisites for Validity

 Hypte R. Aujero v. Phil. Communications Satellite Corp., 663 SCRA 467 (2012)
 Convoy Marketing Corp. v. Albia, G.R. No. 194969, 7 Oct. 2015
 29

8) Laches/Prescription, Art. 306; Civil Code, Arts. 1146, 1155

 University of the East v. University of the East Employees’ Association, 657 SCRA
637 (2011)
 Montero, et al. v. Times Transp. Co., Inc., 753 SCRA 250 (2015)

9) Principle of Res Judicata

 Rosales , et al. v. New ANJH Enterprises, et al., G.R. No. 203355, 18 August 2015

10) Criminal Cases

 Lolita S. Concepcion v. Minex Import Corp./Minera Corp., 663 SCRA 497 (2012)

5. Reliefs; Remedies in Illegal Dismissal, Art. 294; 229

a. In General; Twin Remedies

 Aguilar v. Burger Machine Holdings Corp., 516 SCRA 413 (2007)

1) Reinstatement, Art. 285 [294]

a) Definition

 PNOC-EDC v. Abella, 448 SCRA 549 (2005)

 Composite Enterprises, Inc. v. Emilio M. Caparoso, et al., 529 SCRA 470 (2007)

b) Effect of Failure to Ask Relief

 Pheschem Industrial Corp. v. Moldez, 458 SCRA 339 (2005)

c) Exceptions

1) Closure of Business

 Retuya v. Hon. Dumarpa, 408 SCRA 315 (2003)

2) Economic Business Conditions

 Union of Supervisors (RB) NATU, etc. v. Sec. of Labor, 128 SCRA 442 (1984)

3) Employee’s Retirement/Overage

 Espejo v. NLRC, 255 SCRA 430 (1996)

4) Antipathy and Antagonism – Strained Relations

 Felix Martos, et al. v. New San Jose Builders, Inc., 684 SCRA 561 (2012)
 Divine Word High School v. NLRC, 143 SCRA 346 (1986)

5) Not Feasible

 Bustamante v. NLRC, 265 SCRA 1 (1996)

d) Offer to Reinstate
 30
 Ranara v. NLRC, 212 SCRA 631 (1992)

e) Payroll Reinstatement, Art. 229 [229]

 Garcia, et al. v. PAL, 576 SCRA 479 (2009)

f) No Refund Doctrine

 College of the Immaculate Concepcion v. NLRC and Atty. Carlos, Ph.D., 616 SCRA
299 (2010)

g) Reinstatement as Interim Relief; When Applicable

 Lansangan and Cedaña v. Amkor Technology Phil., Inc., 577 SCRA 493 (2009)

2) Backwages, Art. 294

a) Exceptions

 Integrated Microelectronics, Inc. v. Adonis A. Pionilla, 704 SCRA 362 (2013)

b) Effect of Failure to Claim

 De La Cruz v. NLRC, 299 SCRA 1 (1998)

c) Effect of Failure to Order

 Aurora Land Projects Corp. v. NLRC, 266 SCRA 48 (1997)

 Automotive Engine Rebuilders, Inc., et al. v. Progresibong Unyon ng mga
Manggagawa sa AER, 688 SCRA 586 (2013)

d) Computation

 Leo a. Gonzales v. Solid Cement Corp., 684 SCRA 344 (2012)

 Dario Nacar v. Gallery Frames and/or Felipe Bordey, Jr. 703 SCRA 439 (2013)

e) Fringe Benefit

 Acecite Corporation v. NLRC, 449 SCRA 360 (2005)

b. Damages, Art. 111; Civil Code, Art. 2208, par. 7

 Maguiling v. Phil. Tuberculosis Society, Inc. 450 SCRA 465 (2005)

 M + W Zander Phil., Inc., et. al. v. Enriquez, 588 SCRA 590 (2009)
 Montinola v. PAL, 734 SCRA 439 (2014)

c. Separation Pay

1) When Proper; When As Alternative

 National Federation of Labor v. Court of Appeals, 440 SCRA 604 (2004)

 Jordan v. Grandeur Security & Services, Inc., 727 SCRA 36 (2014)

2) Computation/Rationale

 Businessday Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)
 31
3) Effect of Acceptance

 Anino v. NLRC, 290 SCRA 489 (1998)

d. Financial Assistance/Separation Pay – When Allowed/Disallowed as Measure of Social Justice

 Toyota Philippines, Corp. Workers Association (TMPCWA) v.

NLRC, supra
 Reno Foods, inc. v. NLM-KATIPUNAN, 615 SCRA 240 (2010)
 Universal Robina Corporation and Lance Y. Gokongwei v. Wilfredo Z. Castillo, 701
SCRA 64 (2013)
 Phil., Inc., et al. v. Sangwoo Phil., Inc. Employees Union-Olalia, supra
 Security Bank Savings Corp. v. Singson, G.R. 214230, 10 Feb. 2016

e. Indemnity

 Serrano v. NLRC, supra

 Agabon v. NLRC, supra

f. Interest at 6% p.a. on the Total Monetary Awards from Finality of Decision Until Full Payment
per BSP MB circular No. 799, series of 2013

 Nacar v. Gallery Frames and/or Felipe Bordey, supra

g. Liability of Corporate Officers

 Acesite Corp. v. NLRC, supra

 Manarpiis v. Texan Phil., Inc., Richard & Catherine Tan, 748 SCRA 511 (2015)

O. Retirement

References: Art. 302, as amended by RA No. 7641; Rules Implementing the New Retirement Law
(Implementing Rules); RA No. 8558 (1998); Labor Advisory on Retirement Pay (Oct. 1999)

1. Types of Retirement

 Gerlach v. Reuters Ltd., Phil. 448 SCRA 535 (2005)

2. Coverage/Eligibility, Art. 302, 1st par.; Rule II, Sec. 1

 Brion v. South Phil. Union Mission of the Seventh Day Adventist Church, 307 SCRA 497 (1999)

3. Exemption, Rule II, Sec. 2

4. When Applicable; Retroactive Applicability of RA 7641

 Universal Robina Sugar Milling Corp. v. Caballeda & Cadalin, 560 SCRA 115 (2008)
 Grace Christian High School v. Lavandera, 733 SCRA 498 (2014)

5. Components of one-half month pay/salary, Implementing Rules, Guidelines 5.2

 Enriquez Security Services, Inc. v. Cabotaje, 496 SCRA 169 (2006)

6. Forfeiture of Benefits

 Sy v. Metropolitan Bank & Trust Company, 506 SCRA 580 (2006)

 32

7. Equitable Solution

 PLDT v. Reus, 557 SCRA 379 (2008)

8. Non-entitlement – Termination for Just Cause

 Jerome M. Daabay v. COCA-COLA Bottlers Phils., Inc., 704 SCRA 350 (2013)

9. Retirement Pay Differential

 Rivera v. United Laboratories, Inc., 586 SCRA 269 (2009)

10. Management Prerogative

 Magdadero v. PNB, 593 SCRA 195 (2009)

11. Exemption from Tax, Rule II, Sec. 6

 Intercontinental Broadcasting Corp. v. Amarilla, et al., 505 SCRA 687 (2006)

12. Voluntary Retirement

 Ariola v. Philex Mining Corp., 465 SCRA 686 (2005)

13. Gratuity Pay vis-à-vis Retirement Pay

 Sta. Catalina v. Retirement Pay, NLRC, 416 SCRA 233 (2003)

III. SOCIAL SECURITY LEGISLATION

Read: D.P. Disini, Jr., Statutory and Case Materials on Social Legislation

A. Social Security Act of 1997, RA No. 8292

 CMS Estate, Inc. v. Social Security System, 132 SCRA 108 (1980)
 Santiago v. Court of Appeals, 133 SCRA 341 (1984)
 Kua v. Sacupayo, 736 SCRA 401 (2014)

B. Government Service Insurance Act of 1995, RA 8291

C. Employees Compensation and State Insurance Fund, PD No. 442, as amended

D. Limited Portability Law, RA No. 7699

GOD BLESS !!!

REMINDERS:

1. Read the cases in the original.

2. No make-up examination will be given.

3. No written materials or electronic devices during class, but handwritten notes are allowed.
 33

4. Passing is 70 points.

ATTENDANCE:

Absences: The 20% rule on absences will be strictly observed.

For make-up classes, absences will not be counted.

Tardiness: Three times of tardiness will be considered absent. All those

who come between 15 to 30 minutes after the class will be
marked “late”; after 30 minutes, “absent”.

Premium for Perfect Attendance, provided the grade is passing.

REQUIREMENTS & GRADING:

Recitation/Assigned Work- 30%

Mid-Term Examination - 30%
Final Examination - 40%

CONSULTATION HOURS:

Wednesday and Friday afternoons, and after TTH classes