Compiled by RGL

Labor Law and Social Legislation Reviewer

I. FUNDAMENTAL PRINCIPLES

II. RECRUITMENT AND PLACEMENT

III. LABOR STANDARDS

IV. POST-EMPLOYMENT

V. LABOR RELATIONS

VI. MANAGEMENT PREROGATIVE

VII. SOCIAL LEGISLATION

VIII. JURISDICTION AND REMEDIES

I. FUNDAMENTAL PRINCIPLES
A. Legal basis

1. 1987 Constitution

2. Civil Code

3. Labor Code

B. State policy towards labor

1. Security of tenure

2. Social justice

3. Equal work opportunities

4. Right to self-organization and collective bargaining

5. Construction in favor of labor

 6. Burden of proof and quantum of evidence

A. Legal Basis are not merely contractual. They are so impressed with B. State policy towards labor
public interest that labor contracts must yield to the
1. 1987 Constitution common good. Therefore, such contracts are subject to
the special laws on labor unions, collective bargaining, SEC 3 ART XIII. The State shall
Provides limitations in the enactment of Labor Laws. strikes and lockouts, closed shop, wages, working 1. afford full protection to labor, local and
1. Non-impairment Clause. Sec 10 Art III. No law conditions, hours of labor and similar subjects. overseas, organized and unorganized, and
impairing the obligation of contracts shall be
passed. 2. promote full employment and equality of
Article 1701. Neither capital nor labor shall act employment opportunities for all.
2. Equal Protection Clause. Sec 1 Art III. No person oppressively against the other, or impair the interest or
shall be deprived of life, liberty, or property It shall guarantee the rights of all workers to
convenience of the public. Principle of Non-oppression
without due process of law, nor shall any person
be denied the equal protection of the laws. 1. self-organization,

3. Prohibition Against Involuntary Servitude. Sec Article 1702. In case of doubt, all labor legislation and 2. collective bargaining and negotiations, and
18(2) Art III. No involuntary servitude in any form all labor contracts shall be construed in favor of the 3. peaceful concerted activities, including the
shall exist except as a punishment for a crime safety and decent living for the laborer. right to strike in accordance with law.
whereof the party shall have been duly convicted.
They shall be entitled to
4. Due Process Clause. Sec 1 Art III. No person shall The Provincial Bus Operators Association of the
be deprived of life, liberty, or property without Philippines et al v. DOLE, et al. 2018 En Banc Leonen, J 1. security of tenure,
due process of law, nor shall any person be A statute passed to protect labor is a "legitimate 2. humane conditions of work, and a
denied the equal protection of the laws. exercise of police power, although it incidentally 3. living wage.
Constitutional provisions on the protection of labor are destroys existing contract rights." Contracts regulating
NOT SELF-EXECUTING, and are mere guidelines that need relations between capital and labor are not merely They shall also participate in policy and decision-
enabling laws. They are not judicially enforceable. (see contractual, and said labor contracts are impressed making processes affecting their rights and benefits as
2009 Serrano Case) with public interest, and must yield to the common may be provided by law.
good. The State shall promote
Council of Teachers & Staff of Colleges & Universities of
the Phils., v. Sec. of Education, et al 2018 En Banc The relations between capital and labor are not merely
1. the principle of shared responsibility between
contractual as provided in Article 1700 of the Civil
The constitutional mandates of protection to labor and workers and employers and
Code. By statutory declaration, labor contracts are
security of tenure may be deemed as self-executing in 2. the preferential use of voluntary modes in
impressed with public interest and, therefore, must
the sense that these are automatically acknowledged settling disputes, including conciliation, and
yield to the common good. Labor contracts are subject
and observed without need for any enabling legislation. shall enforce their mutual compliance
to special laws on wages, working conditions, hours of
However, to declare that the constitutional provisions therewith to foster industrial peace.
labor, and similar subjects. In other words, labor
are enough to guarantee the full exercise of the rights
contracts are subject to the police power of the State.
embodied therein, and the realization of ideals therein The State shall regulate the relations between workers
The DO was issued to grant bus drivers and conductors
expressed, would be impractical, if not unrealistic. and employers, recognizing
minimum wages and social welfare benefits.
Subsequent legislation is still needed to define the 1. the right of labor to its just share in the fruits of
parameters of these guaranteed rights to ensure the 3. Labor Code production and
protection and promotion, not only the rights of the
labor sector, but of the employers' as well.
1) PD 442, as amended; 2. the right of enterprises to reasonable returns to
investments, and to expansion and growth.
2) Omnibus Rules implementing the Labor
2. Civil Code Code.
Article 1700. The relations between capital and labor
1. Security of tenure calculated to insure economic stability of all the 8) In Peñaflor v. Outdoor Clothing, this principle has
1) Workers can not be dismissed without just or component elements of society, through the been extended to cover doubts in the evidence
authorized causes. maintenance of a proper economic and social presented by the employer and the employee.
equilibrium in the interrelation of the members of
2) Probationary employees shall be made regular 9) If doubt exists between the evidence presented by
the community, constitutionally, through the
after 6 months unless a different period is the employer and the employee, the scales of
adoption of measures legally justifiable, or extra-
agreed. justice must be tilted in favor of the latter.
constitutionally through the exercise of powers
(Dreamland Hotel Resort v. Johnson 2014)
3) It is the right of the employee to continue to work underlying the existence of all Governments on
until terminated for just or authorized cause as the time-honored principle of Salus Populi est 10) The rule is that where the law speaks in clear and
provided by law. categorical language, there is no room for
suprema lex. (Calalang v. Williams)
interpretation; there is only room for application.
ARTICLE 294. Security of Tenure. — In cases of regular 3. Equal work opportunities Only when the law is ambiguous or of doubtful
employment, the employer shall not terminate the 5) The State shall promote full employment and meaning may the court interpret or construe its
services of an employee except for a just cause or equality of employment opportunities for all. true intent. (Leoncio v. MST Marine Services 2017)
when authorized by this Title. An employee who is
unjustly dismissed from work shall be entitled to 4. Right to self-organization and collective 6. Burden of proof and quantum of evidence
bargaining Maula v. Ximex Delivery Express 2017
a) reinstatement without loss of seniority rights
and other privileges and 6) An employee can join a union on the first day of
The burden of proof rests upon the employer to show
employment.
b) his full backwages, inclusive of allowances, that the disciplinary action was made for lawful cause
and 7) Collective bargaining is a contract between or that the termination of employment was valid. In
c) his other benefits or their monetary workers and employers on terms and conditions administrative and quasi-judicial proceedings, the
equivalent computed from the time his of employment over and above those mandated quantum of evidence required is substantial evidence
compensation was withheld from him up to the or "such relevant evidence as a reasonable mind might
by law.
time of his actual reinstatement. accept as adequate to support a conclusion." Thus,
5. Construction in favor of labor unsubstantiated suspicions, accusations, and
conclusions of the employer do not provide legal
NB: Also applies to non-regular employees, in a ARTICLE 4. Construction in Favor of Labor. — All justification for dismissing the employee.
limited sense. doubts in the implementation and interpretation of the
provisions of this Code, including its implementing II. RECRUITMENT AND PLACEMENT
2. Social justice rules and regulations, shall be resolved in favor of
4) The promotion of the welfare of all the people, the labor.
adoption by the Government of measures
A. Definition of recruitment and placement

B. Regulation of recruitment and placement activities

1. Regulatory authorities

a. Philippine Overseas Employment Administration

b. Regulatory and visitorial powers of the DOLE Secretary

2. Ban on direct hiring

3. Entities prohibited from recruiting

 4. Suspension or cancellation of license or authority

5. Prohibited practices

C. Illegal Recruitment

1. Elements

2. Types

3. Illegal recruitment as distinguished from estafa

D. Liability of local recruitment agency and foreign employer

1. Solidary liability

2. Theory of imputed knowledge

E. Termination of contract of migrant worker

F. Employment of non-resident aliens

Please see RA 8042 as amended. The definition shall include fishermen, cruise ship recruit workers for its accredited projects or
personnel and those serving on mobile offshore contracts overseas.
Terminologies and drilling units in the high seas. 9. Direct Hires — refer to workers directly hired by
1. "Overseas Filipino worker" refers to a 5. Licensed Recruitment Agency – any person duly employers for overseas employment as
person who is to be engaged, is engaged or has authorized to engage in recruitment and authorized by the SOLE and processed by the
been engaged in a remunerated activity in a state placement of workers for overseas employment. POEA, including:
of which he or she is not a citizen or on board a
6. Manning Agency — refers to any person, a. Those hired by international
vessel navigating the foreign seas other than a
partnership or corporation duly licensed by the organizations;
government ship used for military or non-
Secretary of Labor and Employment to engage in b. Those hired by members of the
commercial purposes or on an installation
the recruitment and placement of seafarers for diplomatic corps; and
located offshore or on the high seas; to be used
ships plying international waters and for related
interchangeably with migrant worker. c. Name hires or workers who are able to
maritime activities.
2. Contracted workers — refer to Filipino workers secure overseas employment
7. Private Recruitment/Employment Agency — opportunities with employers without
with employment contracts already processed by
refers to any person, partnership or corporation the assistance or participation of any
the POEA for overseas deployment.
duly licensed by the SOLE to engage in the agency.
3. Overseas Filipinos — refer to migrant workers, recruitment and placement of workers for
other Filipino nationals and their dependents 10. Rehires — refer to land-based workers who
overseas employment for a fee which is charged,
abroad. renewed their employment contracts with the
directly or indirectly, from the workers or
same principal.
4. Seafarer — refers to any person who is employed employers or both.
or engaged in overseas employment in any 8. Filipino Service Contractor — refers to any
capacity on board a ship other than a government person, partnership or corporation duly licensed
ship used for military or non-commercial as a private recruitment agency by the SOLE to
purposes.
 within the coverage of this Title and is hereby 3. Entities prohibited from recruiting
A. Definition of recruitment and placement authorized to issue orders and promulgate rules and The following are disqualified from recruitment and
Recruitment and placement refers to any act of regulations to carry out the objectives and implement placement for domestic employment:
canvassing, enlisting, contracting, transporting, the provisions of this Title.
1. Persons convicted of illegal recruitment,
utilizing, hiring, or procuring workers, and includes Art 37. Visitorial Power. The Secretary of Labor or trafficking in persons, violation of child labor
referrals, contract services, promising or advertising his duly authorized representatives may, at any time, laws, or crimes involving moral turpitude;
for employment, locally or abroad, whether for profit inspect the premises, books of accounts and records
2. Agencies whose licenses have previously
or not: of any person or entity covered by this Title, require it
been cancelled or revoked;
Provided, That any person or entity which, in any to submit reports regularly on prescribed forms, and
act on violations of any provisions of this Title. 3. Cooperatives, registered or not under the
manner,
Cooperative Act of the Philippines;
1. offers or promises for a fee, 2. Ban on direct hiring
4. Law enforcers and any official or employee of
2. employment to two or more persons see POEA Memorandum Circular No. 08, S. 2018
the DOLE.
Implementing Guidelines on the Registration of
shall be deemed engaged in recruitment and 5. Those against whom probable cause or prima
Direct-Hire OFWs.
placement. facie finding of guilt for illegal recruitment or
No employer may hire a Filipino worker for overseas
other related cases exist particularly to
B. Regulation of recruitment and employment except through the Boards and entities
owners or directors of agencies who have
authorized by the DOLE. Direct-hiring by
placement activities committed such violations.
a) members of the diplomatic corps,
6. Sole proprietors of duly licensed agencies are
1. Regulatory authorities b) international organizations and such other prohibited from securing another license to
a. Philippine Overseas Employment employers as may be allowed by the DOLE engage in recruitment and placement.
Administration are exempted from this provision.
7. Sole proprietors, partnerships or
Shall regulate private sector participation in the c) Also exempted are name hirees or those corporations licensed to engage in private
recruitment and overseas placement of workers by individuals who are able to secure contracts recruitment and placement for local
setting up a licensing and registration system. It shall on their own efforts and representation employment are prohibited from engaging in
also formulate and implement a system for promoting without the assistance or participation of any job contracting or subcontracting activities.
and monitoring the overseas employment of Filipinos. agency. (Sec 5, DO No 141-14)
Labor Situationers. The POEA, in consultation with Their hiring nonetheless must be processed through For Overseas Employment
the DFA, shall disseminate information on labor and the POEA by submitting:
1. Travel agencies and sales agencies of airline
employment conditions, migration realities and other
1) The employment contract; companies;
facts, as well as adherence of particular countries to
international standards on human and workers rights 2) Valid passport; 2. Officers or Board members of any
which will adequately prepare individuals into 3) Employment visa or work permit, or corporation or partners in a partnership
making informed and intelligent decisions about equivalent; engaged in the business of a travel agency;
overseas employment.
4) Certificate of medical fitness; and 3. Corporations and partnerships, where any of
b. Regulatory and visitorial powers of the DOLE its officers, Board members or partners is
5) Certificate of attendance to the required
Secretary also (2);
employment orientation/ briefing.
Art 36. Regulatory Power. The Secretary of Labor
shall have the power to restrict and regulate the
recruitment and placement activities of all agencies
 4. Individuals, partners, officers or directors of 2) Select and deploy only medically fit and 11) Guarantee compliance with existing labor
an insurance company who make, propose or competent workers; and social legislation of PH and of the
provide an insurance contract under the 3) Provide orientation to workers country of employment of its workers.
compulsory insurance coverage for agency- regarding recruitment procedure, Suspension and/or Cancellation of License or
hired OFWs; country profile and living conditions,
Authority
5. Sole proprietors, partners or officers and among others;
board members with derogatory records. The DOLE Secretary and POEA Administrator have
4) Obtain compulsory insurance coverage concurrent jurisdiction to suspend or cancel a license.
6. Any official or employee of DOLE, POEA, for its hired workers at no cost to the
OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, latter. 5. Prohibited practices
CFO, NBO, PNP, CAAP, international airport 5) Provide the worker a copy of the It shall be unlawful for any individual, entity, licensee, or
authorities, and other GAs directly involved contract and OEC (Overseas holder of authority:
in the implementation of RA No 8042 and/or Employment Certificate); a. To charge or accept directly or indirectly any
any of his relatives within the 4th civil amount greater than that specified in the
★ An OEC is issued to an OFW as proof that
degree. schedule of allowable fees prescribed by the
he has been processed by the POEA or
4. Suspension or cancellation of license or POLO (PH Overseas Labor Office). It is Secretary of Labor and Employment, or to make a
authority worker pay or acknowledge any amount greater
valid for 60 days. The OFW must be
than that actually received by him as a loan or
Validity of License deployed within that period. If no
advance;
deployment happens, the agency must
a) To recruit for local employment. Valid for three b. To furnish or publish any false notice or
report it to the POEA within 15 days
(3) years. Application for renewal should be filed information or document in relation to
from expiry.
30-60 days before expiration. Validity shall start recruitment or employment;
on the date of expiration. 6) Guarantee that there is no officer or
c. To give any false notice, testimony,
employee that may be disqualified due to
b) To recruit for overseas employment. A information or document or commit any act of
relationship with any official or
provisional license valid for two (2) years is misrepresentation for the purpose of securing
employee of relevant GAs.
issued. It may be upgraded to a regular license: a license or authority under the Labor Code, or
7) Assume full and complete responsibility for the purpose of documenting hired workers
1) After deploying at least 100 workers;
for all claims and liabilities that may with the POEA, which include the act of
2) Certificate stating the escrow deposit arise with the use of the license; reprocessing workers through a job order that
remains at P1M. pertains to non-existent work, work different
8) Assume joint and several liability with
★ The regular license is valid up to the full term of 4 the employer for all claims and from the actual overseas work, or work with a
years from the date of issuance of the provisional different employer whether registered or not
liabilities that may arise in implementing
one. with the POEA;
the contract.
d. To induce or attempt to induce a worker
★ The application to upgrade to a regular license 9) Assume full and complete responsibility
already employed to quit his employment in
should be filed within 3 months before expiration for all acts of its officers, employees and
order to offer him another unless the transfer is
of the provisional one. representatives in the performance of
designed to liberate a worker from oppressive
c) Liability undertakings of recruitment agency. their duties. terms and conditions of employment;
An important pre-qualification requirement is a 10) Adhere to the ethical standards as e. To influence or attempt to influence any
notarized undertaking that the applicant shall: prescribed in the Code of Conduct for person or entity not to employ any worker who
1) Negotiate the best terms and condition Ethical Recruitment; and has not applied for employment through his
of employment; agency or who has formed, joined or supported,
 or has contacted or is supported by any union or where the deployment does not actually take advertising for employment abroad, whether for
workers' organization; place without the worker's fault; and profit or not, when undertaken by a non-licensee or
f. To engage in the recruitment or placement of n. To allow a non-Filipino citizen to head or non-holder of authority contemplated under Article
workers in jobs harmful to public health or manage a licensed recruitment/manning agency. 13 (f) of the Labor Code:
morality or to the dignity of the Republic of the Other Prohibited Acts
Philippines; Provided that any such non-licensee or non-holder
o. Excessive Interest. To arrange, facilitate or grant who, in any manner, offers or promises for a fee
g. To obstruct or attempt to obstruct inspection a loan to an OFW with interest >8% per annum, employment abroad to two or more persons shall be
by the Secretary of Labor and Employment or by which will be used for payment of legal and
his duly authorized representative; deemed so engaged. It shall likewise include the
allowable placement fees and make the OFW
prohibited practices, whether committed by any
h. To fail to submit reports on the status of issue, either personally or through a guarantor or
person, whether a non-licensee, non-holder, licensee
employment, placement vacancies, remittance of accommodation party, postdated checks in
foreign exchange earnings, separation from jobs, relation to the said loan; or holder of authority.
departures and such other matters or information p. Specifying a Loan Entity. To impose a Meaning of License and Authority
as may be required by the Secretary of Labor and compulsory and exclusive arrangement whereby Authority refers to a document issued by the SOLE
Employment; an OFW is required to avail a loan only from authorizing the officers, personnel, agents or
i. To substitute or alter to the prejudice of the specifically designated entities; representatives of a licensed recruitment/manning
worker, employment contracts approved and q. Non-renegotiation of Loan. To refuse to condone agency to conduct recruitment and placement
verified by the Department of Labor and a loan incurred by an OFW after his employment activities in a place stated in the license or in a
Employment from the time of actual signing contract has been prematurely terminated not specified place.
thereof by the parties up to and including the through his fault.
period of the expiration of the same without the License refers to the document issued by the SOLE
approval of the Department of Labor and r. Specifying a Medical Entity. Whereby an OFW is
authorizing a person, partnership or corporation to
Employment; required to undergo health examinations only
operate a private recruitment/manning agency.
from specific clinics, entities, except when the
j. For an officer or agent of a recruitment or cost is shouldered by the principal; Any recruitment activities, including the prohibited
placement agency to become an officer or practices, to be undertaken by non-licensees or non-
member of the Board of any corporation s. Specifying a Training Entity. Whereby an OFW
is required to undergo trainings, seminars only holders of authority shall be deemed illegal.
engaged in travel agency or to be engaged directly
or indirectly in the management of a travel from specific entities, except when cost is 1. Elements
agency; shouldered by the principal;
a) Essential Element. Presupposes deceit or
k. To withhold or deny travel documents from t. Violation of Suspension. To engage in any kind of misrepresentation.
applicant workers before departure for monetary recruitment activity including the processing of
pending workers’ applications; and 1) Without being duly authorized;
or financial considerations, or for any other
u. Collection of Insurance Premium. To pass on the 2) Gave distinct impression that he had
reasons, other than those authorized under the
employer through deduction of his wages the cost power or ability to deploy workers;
Labor Code and its implementing Rules and
Regulations; or premium of insurances under the compulsory 3) Complainants were convinced to part
workers insurance coverage. with their money by such impression;1
l. Failure to actually deploy a contracted worker
without valid reason as determined by the 4) There must be at least a promise or offer
Department of Labor and Employment; C. Illegal Recruitment of employment.2
m. Failure to reimburse expenses incurred by the Any act of canvassing, enlisting, contracting,
worker in connection with his documentation and transporting, utilizing, hiring, or procuring workers 1 RA No 5980
processing for purposes of deployment, in cases and includes referring, contract services, promising or 2 Sec 11 Art XVI. 1987 Constitution. Wholly owned or managed.
 b) Recruitment and Placement; Presumption. may complain for estafa aside from illegal liable with the corporation or partnership for the
Where a fee is collected in consideration of a recruitment. aforesaid claims and damages.
promise or offer of employment to two or more b) Illegal recruitment and estafa cases may be filed Such liabilities shall continue during the entire
prospective workers. simultaneously or separately. The filing of period or duration of the employment contract
c) Additional elements charges for illegal recruitment does not bar the and shall not be affected by any substitution,
1) For syndicated. — committed by three filing of estafa, and vice versa. An accused’s amendment or modification made locally or in a
acquittal in the illegal recruitment case does not foreign country of the said contract. (Sec 10, RA 8042)
or more persons conspiring and
prove that she is not guilty of estafa.
confederating with one another. (People In Sto. Tomas, et al. v. Salac 2012 En Banc, however,
v. Hashim 2012) Illegal recruitment and estafa are entirely the Court clarified that liability may be imputed on the
different offenses and neither one necessarily
2) For large scale. — committed against corporate officers or directors only if it is proved that
includes or is necessarily included in the other. A
three or more persons, individually or as they are personally involved in the wrongful acts
person who is convicted of illegal recruitment
a group. (People v. Tuguinay 2012) of the company.
may, in addition, be convicted of estafa under
2. Types Article 315, paragraph 2(a) of the RPC. The liability of corporate directors and officers is not
There are at least four kinds of illegal recruitment under automatic. To make them jointly and solidarily liable
In the same manner, a person acquitted of illegal
the law. recruitment may be held liable for estafa. Double with their company, there must be a finding that they
jeopardy will not set in because illegal were remiss in directing the affairs of that company,
1. One is simple illegal recruitment committed by
recruitment is malum prohibitum, in which such as sponsoring or tolerating the conduct of illegal
a licensee or holder of authority.
there is no necessity to prove criminal intent, activities.
2. Any person “who is neither a licensee nor a whereas estafa is malum in se, in the prosecution 2. Theory of imputed knowledge
holder of authority” commits the second type of of which, proof of criminal intent is necessary. (Sy
illegal recruitment. Sunace International Management Services, Inc. v.
v. People 2010)
NLRC
3. Large scale or Qualified. — The third type of
illegal recruitment refers to offenders who either D. Liability of local recruitment agency and The theory of imputed knowledge ascribes the
commit the offense alone or with another person foreign employer knowledge of the agent TO the principal, not the other
against three or more persons individually or as way around. The knowledge of the principal-foreign
1. Solidary liability employer cannot, therefore, be imputed to its agent.
a group.
4. Syndicated —A syndicate or a group of three or The liability of the principal/employer and the
more persons conspiring and confederating with recruitment/placement agency for any and all claims E. Termination of contract of migrant
one another in carrying out the act circumscribed under this section shall be joint and several. worker
by the law commits the fourth type of illegal This provision shall be incorporated in the contract 1. In case of termination of overseas employment
recruitment by the law. (People v. Sadiosa) for overseas employment and shall be a condition without just, valid or authorized cause as defined
Under RA 8042, the third and fourth types herein precedent for its approval. by law or contract, or any unauthorized
are considered Illegal Recruitment as Economic The performance bond to be filed by the deductions from the migrant worker's salary, the
Sabotage. recruitment/placement agency, as provided by law, worker shall be entitled to the full reimbursement
shall be answerable for all money claims or damages of his placement fee and the deductions made
3. Illegal recruitment as distinguished from estafa
that may be awarded to the workers. If the with interest at twelve percent (12%) per annum,
a) Estafa by means of false pretense. A worker plus his salaries for the unexpired portion of his
recruitment/placement agency is a juridical being, the
who suffers pecuniary damage as a result of a
corporate officers and directors and partners as the employment contract or for three (3) months for
previous or simultaneous false pretense resorted
case may be, shall themselves be jointly and solidarily
to by a nonlicensee or nonholder of authority,
 every year of the unexpired term, whichever is iv) Media enterprises5. Exemption. — The following categories of foreign
less3. (Sec 10) c) Exceptions. The Secretary of Justice rendered an nationals are exempt from securing an employment
Opinion 6that aliens may be employed in permit:
2. Termination of employment of OFWs takes place
in the following instances: nationalized activities: a. All members of the diplomatic service and foreign
i) Where the SOJ specifically authorizes the government officials accredited by and with
a. Pre-termination of employment contract
employment of foreign technical reciprocity arrangement with the Philippine
with approval of employer;
personnel, or government;
b. Discharge for a valid cause;
ii) Where the aliens are elected members of b. Officers and staff of international organizations of
c. Suffered injury or illness; or the board of directors or governing body which the Philippine government is a member,
d. An OFW has died. of corporations or associations in and their legitimate spouses desiring to work in
proportion to their allowable the Philippines;
Skippers United Pacific Inc. v. Doza 2012
participation in the capital of such c. Owners and representatives of foreign principals
The OFW can pre terminate his employment contract entities. whose companies are accredited by the
which is akin to resignation. However, if the employer Philippine Overseas Employment Administration
failed to submit substantial evidence that indeed the d) Omnibus Investment Code. EO No 226.
Enterprises registered under the OIC may, for a (POEA), who come to the Philippines for a limited
OFW voluntarily pre-terminated his contract; then the
limited period, employ foreign nationals in period and solely for the purpose of interviewing
OFW is deemed illegally dismissed.
technical, supervisory, or advisory positions. Filipino applicants for employment abroad;
The best proof of pre-termination is a written
resignation. e) The latest department order issued about d. Foreign nationals who come to the Philippines to
employment of foreign workers is DO No 146-15, teach, present and/or conduct research studies in
dated August 20, 2015. universities and colleges as visiting, exchange or
F. Employment of non-resident aliens adjunct professors under formal agreements
Effect of Lack of Work Permit between the universities or colleges in the
Employment of Aliens Philippines and foreign universities or colleges;
a) Only non-resident aliens are required to secure A foreign national working in PH without the or between the Philippine government and
employment permit. For resident aliens and requisite employment permit may file with the NLRC foreign government: provided that the exemption
immigrants, what is required is an Alien an illegal dismissal complaint. The dismissal may be is on a reciprocal basis;
Employment Registration Certificate (AERC). declared invalid and she may be recognized as an
e. Permanent resident foreign nationals and
employee but she cannot be awarded claim for
b) Anti-Dummy Law. CA No 108, as amended by probationary or temporary resident visa holders
monetary benefits. To do so will sanction the
PD No 715 prohibits employment of aliens in under Section 13 (a-f) of the Philippine
violation of PH labor laws requiring aliens to secure
entities that own or control a right, franchise, Immigration Act of 1940 and Section 3 of the
work permits before their employment.7
privilege, property or business whose exercise or Alien Social Integration Act of 1995 (RA 7917);
enjoyment is reserved by law only to Filipinos or 1. Alien Employment Permit
f. Refugees and Stateless Persons recognized by DOJ
to corporations or associations whose capital Revised Rules for Issuance of Employment Permits to pursuant to Article 17 of the UN Convention and
should be at least 60% Filipino-owned, such as: Foreign Nationals, DOLE D.O. No. 186, S. 2017 (see Protocol Relating to status of Refugees and
i) Public utility; former D0 No. 146-15, S. 2015) Stateless Persons; and
ii) Develop, exploit, and utilize natural Coverage. — All foreign nationals who intend to g. All foreign nationals granted exemption by law.
resources; engage in gainful employment in the Philippines shall
Exclusion. — The following categories of foreign
apply for AEP.
iii) Financing companies;4 nationals are excluded from securing an employment
permit:
3 Opinion No 143 s. 1976 of the SOJ 5 People v. Goce, GR No 113161, August 29, 1995
6 Darvin v. CA and People, GR No 125044, July 13, 1998 a. Members of the governing board with voting
4 WPD Marketing, et al. v. Jocelyn M. Galera, GR No 169207, March 25,
2010 7 Declared unconstitutional. rights only and do not intervene in the
 management of the corporation or in the day to organisation/ department/ subdivision and i. who enters the Philippines temporarily to
day operation of the enterprise. exercises supervisory and control functions supply a service pursuant to a contract
b. President and Treasurer, who are part-owner of over other supervisory, managerial or between his/her employer and a service
the company. professional staff; does not include first line consumer in the Philippines;
supervisors unless employees supervised are ii. must possess the appropriate educational
c. Those providing consultancy services who do not professionals; does not include employees
have employers in the Philippines. and professional qualifications; and
who primarily perform tasks necessary for
d. Intra-corporate transferee who is a manager, the provision of the service; or iii. must be employed by the foreign service
executive or specialist as defined below in supplier for at least one year prior to the
iii. a Specialist: a natural person within the supply of service in the Philippines.
accordance with Trade Agreements and an organisation who possesses knowledge at an
employee of the foreign service supplier for at advanced level of expertise essential to the f. Representative of the Foreign
least one (1) year continuous employment prior establishment/provision of the service Principal/Employer assigned in the Office of
to deployment to a branch, subsidiary, affiliate or and/or possesses proprietary knowledge of Licensed Manning Agency (OLMA) in accordance
representative office in the Philippines. the organisation's service, research with the POEA law, rules and regulations.
i. an Executive: a natural person within the equipment, techniques or management; may 2. Working Permits & Visas
organisation who primarily directs the include, but is not limited to, members of a See DOLE, DOJ, BI and BIR Joint Guidelines No.
management of the organisation and licensed profession. 01, S. 2019 (Guidelines on Issuance of Work and
exercises wide latitude in decision making All other intra-corporate transferees not Employment Permit to Foreign Nationals);
and receives only general supervision or within these categories as defined above are
direction from higher level executives, the also BI BID Operations Order JHM-2019-008
required to secure an AEP prior to their (Implementing Rules on SWP and PPW), and
board of directors, or stockholders of the employment in the Philippines.
business; an executive would not directly BI BID Operations Order JHM-2019-009 (TIN in
perform tasks related to the actual provision e. Contractual service supplier who is a manager, Visa and Permit Applications)
of the service or services of the organisation; executive or specialist and an employee of a
foreign service supplier which has no commercial
ii.
a Manager: a natural person within the presence in the Philippines:i III. LABOR STANDARDS
organisation who primarily directs the
A. Conditions of employment
1. Hours of work
a. Principles in determining hours worked and employees exempted or not covered
b. Compensable Time
i. Normal hours of work
ii. Night shift differential
iii. Overtime work
(a) Compressed work week
(b) Built-in overtime
c. Non-compensable hours; when compensable
2. Rest periods
3. Service Charge
B. Wages
 1. Definition, components, and exclusions
a. Wage vs. salary
b. Distinguish: facilities and supplements
c. Bonus, 13th month pay
d. Holiday pay
2. Principles
a. No work, no pay
b. Equal pay for equal work
c. Fair wage for fair work
d. Non-diminution of benefits
3. Minimum wage
a. Payment by hours worked
b. Payment by results
4. Payment of wages
5. Prohibitions regarding wages
6. Wage determination
a. Wage order
b. Wage distortion
C. Leaves
1. Labor Code
a. Service incentive leave
2. Special laws
a. Parental leave for solo parents
b. Expanded maternity leave
c. Paternity leave
d. Gynecological leave
e. Battered woman leave
D. Sexual harassment in the work environment
1. Definition
2. Duties and liabilities of employers
3. Applicable laws
a. Sexual Harassment Act
 b. Safe Spaces Act
E. Working conditions for special groups of employees
1. Apprentices and learners
2. Disabled workers
a. Equal opportunity
b. Discrimination on employment
c. Incentives for employers
3. Gender
a. Discrimination
b. Stipulation against marriage
c. Prohibited acts
d. Facilities for women
e. Women working in nightclubs, etc.
4. Minors
5. Kasambahays
6. Homeworkers
7. Solo parents
8. Night workers
9. Migrant workers
10. Security guards

Summary of Minimum Labor Standards Benefits

Name Source Benefit Requirement for availment Exception Notes

OT Pay refers to additional

125% of BHR on ORDINARY days;
Overtime Work - Work rendered Employees not covered under Art compensation for work
Overtime Pay Art 87 130% of BHR on Rest Days,
after the normal 8 hours of work. 82 performed beyond the 8 normal
Special and Regular Holidays
hours of work on any given day.

130% of regular pay for work Premium pay refers to

done during special holiday or additional compensation
rest day; Working on a special holiday or a Art 82 + those of retail and required by law for work
Premium Pay Art 93
150% of regular pay for work scheduled rest day. service with less than 10 EEs performed within the 8 normal
done on a rest day falling on a hours of work on non-working
holiday. days.

Service Art 95 ■ Five days leave with pay Rendered at least 1 year service; Art 82 + already enjoying benefit; Commutable to cash if not used.
 VL with pay of at least 5 days;
Incentive Leave
Part time workers may benefit. less than 10 EEs

Jan 1, Maundy Thursday, Good

100% of regular pay even if Friday, Eidul Fitr, Eidul Adha, Apr
May be availed of regardless of Art 82 + those of retail and
Holiday Pay Art 94 unworked; 9, May 1, Jun 12, National Heroes
whether worked or unworked. service with less than 10 EEs
200% if worked Day, Nov 1, Nov 30, Dec 25, Dec
30, Dec 31, Election Day

Night- shift Employees working between 10 Not waivable, founded on public

Art 86 110% of BHR Art 82
Differential PM - 6 AM of the next day policy

Employees working in Service charges are not in the

Art 96, Book establishments collecting service nature of profit share and,
Service Charges ■ 100% rank-and-file Art 82
III Rule VI charges, i.e. hotels, clubs, bars, therefore, cannot be deducted
casinos, restaurants from wage.

time spent for such work shall be considered as Field personnel

A. Conditions of employment
c)

hours worked, if the work was with the If they:

knowledge of his employer or immediate
1. Hours of work a) Regularly perform duties away from the
supervisor.
a. Principles in determining hours worked and principal or branch office or place of
d) The time during which an employee is inactive by business of employer; and
employees exempted or not covered reason of interruptions in his work beyond his
Whose actual hours of work in the field
Principles in determining hours worked. — The control shall be considered working time either b)

cannot be determined with reasonable

following general principles shall govern in determining if the imminence of the resumption of
i)

certainty.
whether the time spent by an employee is considered work requires the employee's presence
hours worked for purposes of this Rule: Members of the family of employer who are
at the place of work or d)

dependent upon him for support

a) All hours are hours worked which the employee if the interval is too brief to be utilized
Employer has already taken care of the
ii)

is required to give his employer, regardless of effectively and gainfully in the

whether or not such hours are spent in employee’s sustenance.
employee's own interest.
productive labor or involve physical or mental Domestic helpers — covered in Kasambahay
Employees NOT Covered e)

exertion. Law;
Government employees
An employee need not leave the premises of the Persons in the personal service of another
a)

b)
f)

workplace in order that his rest period shall not Managerial EEs
Already provided with living quarters; nature of
b)

be counted, it being enough that he stops Meet the following conditions: work; plus they are not employed in a business
working, may rest completely and may leave his
Formulate policies; undertaking.
work place, to go elsewhere, whether within or
1.

outside the premises of his work place. 2. Execute management policies; g) Workers paid by results whose time and
Impose disciplinary actions performance are NOT supervised
c) If the work performed was necessary, or it 3.

benefited the employer, or the employee could Reason for exclusion Not usually employed by the Piece rate or job or task based.
not abandon his work at the end of his normal hour, but by their special training, experience Key Jurisprudence
working hours because he had no replacement, all or knowledge.
1. There are two categories of employees paid by Thus, they are consequently entitled to the a. Teaching load in excess of normal load =
results: benefits accorded to regular employees of the Overload.
those whose time and performance are respondents, including overtime pay and SIL pay. Overload = honorarium if performed
(Dasco v. Philtranco 2016)
a. b.

supervised by the employer. within 8-hour normal work period.

Here, there is an element of control and 4. If required to be at specific places at specific Overload beyond the normal work period
times, employees, including drivers, cannot be
c.

supervision over the manner as to how = Overtime.

the work is to be performed. A piece-rate said to be field personnel despite the fact that they
are performing work away from the principal RA 10361
worker belongs to this category
3.

especially if he performs his work in the office of the employer. (Duterte v. Kingswood a. Domestic worker entitled daily to at least
company premises. Trading) 8 hours aggregate rest per day.
those whose time and performance are b. Compensable Time b. Entitled to at least 24 consecutive hours
of rest in a week.
b.

unsupervised.
i. Normal hours of work
Here, the employer’s control is over the For Health personnel in
result of the work. Workers on pakyao The normal hours of work of any employee shall not a. Cities and municipalities with at least 1M
and takay basis belong to this group. exceed eight (8) hours a day. It includes population; or
Both classes of workers are paid per unit 1. Hours worked under Art 84 b. Hospitals with at least 100 bed capacity,
accomplished. Piece-rate payment is generally All time during which EE is required to be on Regular office hours for 8 hours a day, 5 days a
practiced in garment factories where work is
a.

duty or to be at a prescribed workplace; week, except where exigencies of service require such
done in the company premises, while payment on personnel to work on the 6th day, in which case he is
pakyao and takay basis is commonly observed in All the time during which an EE is suffered
entitled to the 30% premium pay.
b.

the agricultural industry, such as in sugar or permitted to work;

plantations where the work is performed in bulk 2. Rest periods of short interval (5-20 minutes) ★ see DOLE D.O. No. 182 s. 2017 (Guidelines
or in volumes difficult to quantify. (Lambo v. governing the employment and Working
3. Meal period of less than 20 minutes; Conditions of Health Personnel in the Private
NLRC)
Reasonable time to withdraw wages from bank or Healthcare Industry)
In order to conclude whether an employee is a
4.

2.

ATM, or by check. ii. Night shift differential

field employee, it is also necessary to ascertain if
actual hours of work in the field can be Attendance during seminars not compensable if:
Night Shift Differential (NSD) refers to the
determined with reasonable certainty by the Outside EE’s regular working hours;
1.

additional compensation of ten percent (10%) of an

employer. The driver, the complainant herein,
EE is not work productive; and employee’s regular wage for each hour of work
was therefore under constant supervision while
2.

in the performance of this work. He cannot be 3. Voluntary. performed between 10 p.m. and 6 a.m.
considered a field personnel. (Auto Bus Transport Normal Hours of work may be reduced from 8 hours, 110% of Basic Hourly Rate;
System v. Bautista)
■

provided no corresponding reduction is made on EE’s

wage or salary equivalent to an 8-hour work day. ■ Employees working between 10 PM - 6 AM of the
The petitioners, as bus drivers and/or
next day;
3.

conductors, are left alone in the field with the Other Hours of Work
duty to comply with the conditions of the ■ NOT waivable, founded on public policy.
1. RA 9231
respondents’ franchise, as well as to take proper
Children below 15: 20H/W, 4H/D, not iii. Overtime work
care and custody of the bus they are using. Since a.

the respondents are engaged in the public utility allowed between 8pm to 6am of next GR: No employee may be compelled to render
business, the petitioners, as bus drivers and/or day; OT against his will
conductors, should be considered as regular Children 15-18: 40H/W, 8H/D, not
b.

EXC: Art 89
employees of the respondents because they allowed between 10pm to 6am the next
perform tasks which are directly and necessarily day. 1. Country is at war or there is a declared
connected with the respondents’ business. national or local emergency;
2. CHED Memo Circular 40-08
 2. OT is necessary to prevent loss of life or
property or in case of imminent danger to having performed work beyond the normal hours of was adjusted to reflect the higher amount covering the
public safety due to calamities; work. guaranteed two-hour extra time whether worked or
unworked.
3. There is urgent work to be performed on
machineries in order to avoid serious loss (a) Compressed work week Thus, the Acting Minister of Labor and Director De la
or damage to the employer; Normal workweek — 6 consecutive days, 48 Cruz committed a grave abuse of discretion amounting
to lack of jurisdiction in awarding overtime pay and in
★

Work is necessary to prevent loss or hours per week;

disregarding a contract that De la Cruz himself, who is
4.

damage of perishable goods; Compressed — less than 6 days, but may not
★

supposed to know the Eight-Hour Labor Law, had

5. Completion or continuation of work exceed 12 hours per day. It is an alternative previously sealed with his imprimatur. Because of that
started before the 8th hour necessary to arrangement whereby the normal workweek is approval, the petitioner acted in good faith in enforcing
prevent serious obstruction or prejudice to reduced to less than 6 days but the total number the contract.
the business; and of normal work hours per week remains at 48.
Thus, the workweek may be compressed only up Ilaw at Buklod ng Manggagawa v. NLRC
Necessary to avail of favorable weather
to 4 days.
6.

conditions. The work schedule (with "built-in overtime") had not

★ CWW results from an express voluntary
Day is understood to be the 24 hour period counted been forced upon the workers; it had been agreed
agreement of majority of the covered employees
from the time the employee regularly starts to work. upon between SMC and its workers at the Polo Plant
or their duly authorized representatives.
Broken hours of work occurs when an employee and indeed, had been religiously followed with mutually
A three-day work week is illegal. beneficial results for the past five (5) years. Hence, it
need not complete the 8 normal hours of work ★

continuously. Illegal compressed workweek when work days could not be considered a matter of such great
were reduced from 6 to 3 days a week, resulting prejudice to the workers as to give rise to a controversy
Under Art 88 and jurisprudence, undertime is between them and management.
to illegal reduction of work hours, as there was no
strictly not offset by overtime.
adequate proof of losses. Financial losses must Furthermore, the workers never asked, nor were there
The rendition of overtime work and the submission be shown before a company can validly opt to ever any negotiations at their instance, for a change in
of sufficient proof that said work was actually reduce the work hours of its employees. (Linton that work schedule prior to the strike. What really
performed are conditions to be satisfied before a Commercial v. Hellera) bothered them, and was in fact the subject of talks
seaman could be entitled to overtime pay. between their representatives and management, was
Waiving of OT in CWW is valid. D.O. No. 21
(Cagampan v. NLRC; Stolt-Nielsen Marine Services v. ★

sanctions the waiver of overtime pay in the “wage distortion” question.

NLRC)
consideration of the benefits that the employees The Court is in substantial agreement with the
Robina Farms Cebu v. Villa 2016 will derive from the adoption of a compressed petitioner's concept of a slowdown as a "strike on the
workweek scheme. (Bisig ng Manggagawa sa installment plan;" as a wilful reduction in the rate of
Firstly, entitlement to overtime pay must first be
Tryco v. NLRC) work by concerted action of workers for the purpose of
established by proof that the overtime work was
actually performed before the employee may properly ★ See DOLE DA No. 2 s. 2004 restricting the output of the employer, in relation to a
claim the benefit. The burden of proving entitlement to labor dispute; as an activity by which workers, without
(b) Built-in overtime a complete stoppage of work, retard production or their
overtime pay rests on the employee because the
benefit is not incurred in the normal course of business. Engineering Equipment Inc. v. Minister of Labor performance of duties and functions to compel
management to grant their demands. The Court also
And, secondly, the NLRC's reliance on the daily time Aspera was a managerial employee exercising agrees that such a slowdown is generally condemned as
records (DTRs) showing that Villa had stayed in the supervision and control over its rank-and-file inherently illicit and unjustifiable.
company's premises beyond eight hours was misplaced. employees with power to recommend disciplinary
The DTRs did not substantially prove the actual action or their dismissal. Section 82 of the Labor Code c. Non-compensable hours; when compensable
performance of overtime work. The petitioner correctly provides that managerial employees are not entitled to
points out that any employee could render overtime overtime pay. i. Meal break
work only when there was a prior authorization
Aspera was one of several employees who signed At least one-hour of non-compensable meal
therefor by the management. Without the prior
★

written contracts with a "built-in" overtime pay in the period.

authorization, therefore, Villa could not validly claim
ten-hour working day and that their basic monthly pay
 ★ May be shortened (Book III Rule 1 Sec 7) to at 2. Rest periods 3. Service Charge
most, 20 minutes provided: Employees working for 6 consecutive days are ★ as amended by RA No. 11360, effective on
a. Work is non-manual; entitled to a rest day of at least 24 consecutive hours. September 4, 2019 per DOLE Labor Advisory
b. Establishment regularly operates not less GR: Employer schedules employee’s rest day. No. 10, S. 2020, Clarifying Date of Effectivity;
than 16 hours a day; EXC: Employee preference based on religious ★ see DOLE D.O. No. 206, S. 2019, published on
c. In cases of actual or impending ground; November 26, 2019
emergencies or there is urgent work to EE must make known his preference 7 days ★ see DOLE Labor Advisory No. 14, S. 2019, dated
be performed on machineries; and before initial rest day. December 26, 2019, Distribution of Collected
Work is necessary to prevent serious loss Service Charges in relation to Non-Diminution of
d.

EXC to the EXC: Benefits

of perishable goods.
When it will cause serious obstruction or All service charges actually collected by covered
ii. Power interruptions or brownouts prejudice to the employer, employer shall
establishments shall be distributed COMPLETELY
If not exceeding 20 minutes, compensable; schedule the rest day of employee’s choice at
and EQUALLY, based on actual hours or days of work
a.

least 2 days in a month.

If more than 20 minutes, not compensable if: or service rendered among the covered employees,
GR: Employer cannot compel employee to work
b.

Employees can leave; or including those already receiving the benefit of

i.

on a rest day.
sharing in the service charges.
ii. Employees can use time effectively for their EXC: Under Art 92 and Book III Rule III Sec 6:
own interest. Covered employees refer to all employees, except
In case of actual or impending emergencies
managerial employees, under the direct employ of the
a.

In each case, employer may extend normal due to calamities, or in case of force majeure
covered establishment.
c.

working hours to make up for lost time. or imminent danger to public safety;
Urgent work needs to be performed on
iii. Travel time B. Wages
b.

machineries to avoid serious loss;

Home-to-work-work-to-home travel — not Abnormal pressure of work due to special
1. Definition, components, and exclusions
a)

c.

considered as hours worked because it is a circumstance;

normal incident of employment. d. Prevent serious loss of perishable goods; Art 97(f). Wage paid to an employee shall mean
b) Considered as hours worked — if required to Nature of work requires 7 days continuous 1. the remuneration or earnings, however
designated,
e.

deviate from his normal home-to-work-work-to- work, i.e. crew members in vessels;
home travel. Work is necessary to avail of favorable 2. capable of being expressed in terms of money,
whether fixed or ascertained on a
f.

iv. Waiting time weather conditions.

NO rest day for a. time,
Waiting Time spent by an employee shall be
Employees excluded from labor standards task,
considered as working time if
b.

a.

(Art. 82) c. piece, or

it is integral to his work and
Union members who are supervisory commission basis, or
a.

d.

b. that the employee is required by the employees considered as officers and other method of calculating the same,
members of the managerial staff are exempt
e.

employer to wait.
from the coverage of Article 82. Perforce, 3. which is payable by an employer to an employee
An on-call employee is considered working if, while they are not entitled to overtime, rest day and under a written or unwritten contract of
required to be in the employer’s premises or so close holiday. (National Sugar Refineries v. NLRC) employment
thereto, he cannot use the time effectively or gainfully for work done or to be done, or
Shift engineer, no right to overtime and a.

for his own purpose.

b.

premium pay as he is an officer or member of b. for services rendered or to be rendered

managerial staff (Peñaranda v. Baganga
Plywood)
 and includes the fair and reasonable value of Meals and lodging provided to employees in order to
Part of Wage Independent of Wage
4.

board, lodging, or other facilities customarily maintain their efficiency and health while working at
furnished by the employer to the employee. their respective project sites, are supplements, and
Deductible from wage Not deductible from wage
"Fair and reasonable value" shall not include not facilities (SLL International Cable Specialists v.
any profit to the employer, or to any person Facilities NLRC 2011)
affiliated with the employer. Supplements
Are items of expenses necessary for the laborer’s and
Basic Wage. — All the remuneration or earnings paid his family’s existence and subsistence so that by Constitute extra remuneration or special privileges
by an employer to a worker for services rendered on express provision of law, they form part of the wage or benefits given to or received by the laborers over
normal working days and hours but does not include: and when furnished by the employer are deductible and above their ordinary earnings or wages.
a. COLA; therefrom. Includes:
b. Profit sharing payments; They shall not include tools of the trade or articles 1. Emergency medical and dental services by
primarily for the benefit of the employer or necessary virtue of requirements by the LC;
c. Premium pay; to the conduct of the employer’s business.
Cost, rental and/or laundry of uniforms
13th month pay; or
2.

d.

Requisites for Deductibility: which are required;

Other monetary benefits. Must be customarily furnished by the Transportation charges where such is in
e.

1.
3.

a. Wage vs. salary employer; incident to or necessary to the employment;

Must be charged at a fair and reasonable Shares of capital stock of employee;
Wage Salary
2.
4.

value; and
5. Paid vacation, sick and maternity leaves; and
Compensation paid for Compensation for higher Must be voluntarily accepted by the
Tools of the trade or articles or services.
3.

manual skilled or or superior level of employee in writing.

6.

unskilled labor employment It shall include: c. Bonus, 13th month pay

Meals — must be nutritionally adequate; 13th month pay
Compensation for labor Relates to a position or 1.

office ★ At least 30% of actual cost to be ★ Resigned or separated employees to be paid pro
subsidized by ER. rata;
Shall not be subject to NOT exempt Housing for dwelling purposes; Non-payment shall be treated as money claims.
execution, attachment or
2.
★

garnishment except for The total yearly expenses of the ER ★ Employees paid a fixed or guaranteed wage
debts incurred for food, comprising of 5.5% of the depreciated plus commission are entitled based on their
shelter, clothing and amount + the cost of operation and total earnings for the calendar year.
medical attendance. maintenance + payment of electric and water ★ Basic salary means not the amount actually
bills are deducted from the total cost of received by an employee, but 1/12 of their
Both words refer to one and the same meaning, that expenses incurred in the construction or standard monthly wage multiplied by their length
is, reward of recompense for services performed. acquisition of the housing facility. of service within a given calendar year.
Fuel including electricity, water, gas
b. Distinguish: facilities and supplements R&E Transport v. Latag
3.

furnished for the non-commercial personal

Facilities Supplements use of the EE; Since Pedro was paid according to the "boundary"
4. Transportation from house to work where system, he is not entitled to the 13th month and the
Necessary expenses of Extra benefit or special travel time is non-compensable hours of service incentive pay; hence, his retirement pay should
laborer and his family privilege work; be computed on the sole basis of his salary.

(Purpose Test) 5. School, recreation and sanitation; Reyes v. NLRC

For the benefit of For the benefit of Medical and dental services;
ON COMMISSIONS. The Court thus clarified that in
6.

Employee Employer Others.

7.
Philippine Duplicators, the salesmen’s commissions,
 If cessation due to business reverses as
comprising a predetermined percentage of the selling from the computation of the 13th-month pay.
2.

authorized by SOLE = not entitled.

price of the goods sold by each salesman, were In the same manner that payment for overtime work
properly included in the term basic salary for Holiday pay of certain employees:
and work performed during special holidays is
purposes of computing the 13th month pay. The Private school teachers: during semestral
considered as additional compensation apart and
1.

salesmen’s commission are not overtime payments, nor vacations = not entitled; Christmas breaks =
profit-sharing payments nor any other fringe benefit, distinct from an employee's regular wage or basic entitled.
but a portion of the salary structure which represents salary, an overload pay, owing to its very nature and
Paid by results or output = entitled to not less
an automatic increment to the monetary value initially definition, may not be considered as part of a teacher's
2.

than the average of daily earnings of last 7 days

assigned to each unit of work rendered by a salesman. regular or basic salary, because it is being paid for actually worked preceding the holiday, provided
Contrarily, in Boie-Takeda, the so-called commissions additional work performed in excess of the regular it is not less than the statutory minimum wage.
paid to or received by medical representatives or by the teaching load. 3. Seasonal workers: during off-season = not
rank and file employees, were excluded from the term Moreover, petitioner failed to refute private entitled.
basic salary because these were paid to the medical respondent's contention that excess teaching load is 4. Workers with no regular working days =
representatives and rank-and-file employees as paid by the hour, while the regular teaching load is entitled.
productivity bonuses, which are generally tied to the being paid on a monthly basis; and that the assignment Successive Holiday Rule:
productivity, or capacity for revenue production, of a of overload is subject to the availability of teaching 1. Not entitled for both holiday pays if absent on
corporation and such bonuses closely resemble profit- loads. This only goes to show that overload pay is not day preceding the first holiday, unless worked
sharing payments and have no clear direct or necessary integrated with a teacher's basic salary for his or her on first holiday, in which case, he is entitled
relation to the amount of work actually done by each regular teaching load. In addition, overload varies from holiday pay for the 2nd.
individual employee. Further, commissions paid by the one semester to another, as it is dependent upon the Double Holiday Rule
Boie-Takeda Company to its medical representatives availability of extra teaching loads. As such, it is not If unworked = 200%;
could not have been sales commissions in the same
1.

legally feasible to consider payments for such overload

sense that Philippine Duplicators paid the salesmen If worked = 300%;
as part of a teacher's regular or basic salary. Verily,
2.

their sales commissions. Medical representatives are 3. If falls on a rest day = 390%
overload pay may not be included as basis for
not salesmen; they do not effect any sale of any article determining a teacher's 13th-month pay. Flexi-holiday Schedule — employee agrees to avail of
at all. holidays at some other days provided there is no
diminution of existing benefits resulting therefrom.
Sales commissions which are effectively an integral d. Holiday pay
portion of the basic salary structure of an employee, Supervised workers paid by results are entitled to
Holiday pay refers to the payment of the regular holiday pay.
shall be included in determining the retirement
daily wage for any unworked regular holiday. San Miguel Corp v. CA
pay. In fine, the commissions which petitioner received
were not part of his salary structure but were profit- Effect of absences:
Considering that all private corporations, offices,
sharing payments and had no clear, direct or 1. On leave with pay = entitled; agencies, and entities or establishments operating
necessary relation to the amount of work he actually 2. On leave without pay on the day immediately within the designated Muslim provinces and cities are
performed. The collection made by the salesmen from preceding = not entitled, unless worked on required to observe Muslim holidays, both Muslim and
regular holiday; Christians working within the Muslim areas may not
the sale transactions was the profit of private
report for work on the days designated by law as
respondent from which petitioner had a share in the On leave while on SSS or EC benefits = entitled.
Muslim holidays.
3.

form of a commission. 4. If day preceding holiday is nonworking day =

entitled if worked the day immediately Asian Transmission Corp v. CA
Letran Calamba Faculty & Employees Association v. preceding the nonworking day.
NLRC Holiday pay is a legislated benefit enacted as part of the
Effect of business closure: Constitutional imperative that the State shall afford
ON OVERLOAD PAY. Overload pay should be excluded 1. In case of temporary shutdown = entitled; protection to labor. Its purpose is not merely "to prevent
 EX: Worker is still entitled to be paid if: It is not due to error in the construction or
diminution of the monthly income of the workers on
c.

Employer unduly prevented him from application of a doubtful or difficult question

account of work interruptions. In other words, although
of law or provision in the CBA;
a.

the worker is forced to take a rest, he earns what he working despite his ableness, willingness and
should earn, that is, his holiday pay." It is also intended readiness; d. The diminution is done unilaterally by the
to enable the worker to participate in the national b. He is legally locked out or illegally suspended employer.
celebrations held during the days identified as with or dismissed; Company practice is a custom or habit shown by an
great historical and cultural significance. employer’s repeated, habitual customary or
He is illegally prevented from working.
succession of acts of similar kind by reason of which,
c.

Since a worker is entitled to the enjoyment of ten In Odango v. NLRC, SC held that no work no pay also
paid regular holidays, the fact that two holidays fall it gains the status of a company policy that can no
applies to monthly-paid workers, if absent without pay. longer be disturbed or withdrawn.
on the same date should not operate to reduce to
nine the ten holiday pay benefits a worker is b. Equal pay for equal work Key Jurisprudence
entitled to receive. 13th month pay (1993 Davao Fruits; 2005 Honda
International School Alliance of Educators v. 1.

Quisumbing Phils)
Computation Guide
Prorating the 13th & 14th month pay due to the
Persons who work with substantially equal period of strike is not valid, as it is contrary to
w/o qualifications, skill, effort and responsibility, under
w/ NS OT OT Pay company practice under the CBA.
Night
Work on = w/o Pay = w/ NS similar conditions, should be paid similar salaries. This
Shift = OT Pay, NOT a benefit.
NS BHR = BHR rule applies to the School, its "international character"
Regular
2.

notwithstanding. The overtime pay was not given consistently,

Ordinary deliberately and unconditionally but as a
x1 x1.1 x1.25 x1.375 The School cannot invoke the need to entice foreign-
day compensation for additional services
hires to leave their domicile to rationalize the
rendered (2007 Manila Jockey Club Employees
distinction in salary rates without violating the
Rest Day Labor Union-PTGWO)
x1.3 x1.43 x1.3 x1.859 principle of equal work for equal pay.
(RD) The rule on company practice is generally used
Receiving salaries less than their counterparts hired
3.

with respect to grant of additional benefits to

Special abroad, the local-hires of private respondent School, employees, not to issues involving diminution of
x1.3 x1.43 x1.69 x1.859 mostly Filipinos, suffered discrimination. That the local-
Day (SD) benefits (2011 University of East)
hires are paid more than their colleagues in other
SD on RD x1.5 x1.65 x1.95 x2.145 schools is, of course, beside the point. The point is that 3. Minimum wage
employees should be given equal pay for work of equal The minimum wage rates prescribed by law shall be
Regular value. the basic cash wages without deduction therefrom of
Holiday x2 x2.2 x2.6 x2.86 whatever benefits, supplements or allowances which
(RH) c. Fair wage for fair work the employees enjoy free of charge aside from the
Same as No work, no pay basic pay.
RH on RD x2.6 x2.86 x3.38 x3.718
Regional Minimum Wage Rates. — The lowest
Double d. Non-diminution of benefits basic wage rates that an employer can pay his
Holiday x3 x3.3 x3.9 x4.29 Benefits given to employees cannot be taken back or workers, as fixed by the Regional Tripartite Wages
(DH) reduced unilaterally by the employer because the and Productivity Boards (RTWPB) and which shall
benefit has become part of the employment contract. not be lower than the applicable statutory minimum
DH on RD x3.9 x4.29 x5.07 x5.577 wage rates.
Applicable if the following conditions are met:
★ Includes COLA as fixed by RTWPB.
2. Principles a. The grant of the benefit is based on an
express policy or has ripen into practice ★ Excludes other wage-related benefits.
a. No work, no pay over a long period of time;
GR: If the worker does not work, he earns no pay. b. Practice is consistent and deliberate;
a. Payment by hours worked Pablico et al. v. Cerro 2019 4. Tokens;
Once an agreed period of work is completed, In order to be exempted under RA No. 6727 or the 5. Tickets;
compensation is earned regardless of result. Wage Rationalization Act, two elements must concur - 6. Chits;
1. Daily-paid employees are paid on the days Any other object other than legal tender
first, it must be shown that the establishment is
7.

actually worked except unworked regular Even when expressly requested by EE.
regularly employing not more than ten (10)
holidays when they are paid their basic wage
workers, and Criminal liability under Art 288 — Other similar
if they are present or a leave with pay on the
working day preceding the regular holiday. second, that the establishment had applied for and coercions of the RPC.
2. Monthly-paid employees are paid every day was granted exemption by the appropriate Exceptions (Book III Rule VIII Sec 2)
of the month, including unworked days. Regional Board in accordance with the applicable
rules and regulations issued by the Commission. 1. Bank Check
Estimated Equivalent Monthly Rate (EEMR)
WON petitioner is exempt from the Minimum Wage Law. 2. Money Order
1. For Monthly paid: (365) Postal Checks, provided
NO. As the petitioner failed to apply for an exemption,
3.

Applicable Daily Rate( ADR) x 365 and it is undisputed that the respondents are MPRB's It is customary practice on the date of
EEMR= a.

12 months employees and are paid less than the prescribed effectivity; or
2. For Daily paid: minimum wage, the petitioner's liability for wage b. So stipulated in CBA; and the following
differential cannot be denied. are met:
a. Required to work everyday (393.5)
Although inconsequential, with the petitioner's liability There is a bank within 1 KM radius;
Applicable Daily Rate( ADR) x 393.5
c.

EEMR= already established, it is still useful to state that the first Employer or agents do not receive
12 months
d.

element is also wanting in the case at bar. Herein, the pecuniary benefits from such
b. Do not work and not considered paid LA, the NLRC, and the CA all found that the petitioner is arrangement;
on Sundays or rest days (313) employing more than ten (10) employees in his
Employee given reasonable time to
establishment. The petitioner counters the foregoing
e.

Applicable Daily Rate( ADR) x 313 withdraw and shall constitute

EEMR= conclusion, raising in evidence the affidavit issued
compensable hours if done within
12 months collectively by its guest relations officers/waitresses.
working hours; and
Do not work and not considered paid Employment status is not determined by contract or With written consent of the employee if
c.

on weekends or rest days (261) document. Neither is an employee's avowal of his or her
f.

without CBA.
Applicable Daily Rate( ADR) x 261 employment status — as regular, casual, contractual,
EEMR= seasonal — conclusive upon the Court. To be sure, Place and Medium of Payment
12 months employment status is determined by the four-fold test,
GR: At or near place of undertaking;
b. Payment by results and the attendant circumstances of each case, as
supported by any competent and relevant evidence. EXC: (Book III Rule VIII Sec 4)
Art 124. xxxx All workers paid by result, including Deterioration of peace and order;
those who are paid on piecework, takay, pakyaw or
a.

4. Payment of wages Actual or impending emergencies due to

task basis, shall receive not less than the prescribed b.

wage rates per eight (8) hours of work a day, or a GR: Legal Tender (Art 102, LC; Art 1705 NCC) is calamities;
proportion thereof for working less than eight (8) that currency which has been made suitable by Employer provides free transportation back and
law for the purpose of a tender of payment of
c.

hours. forth; and

debts, i.e. coins and notes issued by BSP.
Other Wage Rates Other analogous circumstance, provided
Strictly not allowed:
d.

★ Of apprentices or learners shall be 75% of the Time spent collecting wages is considered
statutory minimum wage. 1. Promissory notes; compensable hours worked.
★ Of PWDs, 100% of the applicable minimum 2. Vouchers; e. Prohibited places: bar, club, drinking
wage. 3. Coupons; establishment, similar places where games are
 played with stakes of money, except if employee ★ see also DOLE Labor Advisory No. 01, S. 2014 purchase merchandise, commodities or any other
employed in such establishment. for Contracting Arrangement Time & Interval of property xxxx
Payment thru Banks allowed (RA 6727) provided Payment of Wages.
Wage Deduction (Art 113)
With written permission of majority of 5. Prohibitions regarding wages
GR: No employer, in his own behalf or in behalf of any
a.

employees; From the Civil Code person, shall make any deduction from the wages
In all private establishments of at least 25 EEs; of his employees.
Art 1705. The laborer's wages shall be paid in legal
b.

c. Located within 1KM radius to a bank; currency. EXC:

d. Within the period of payment of wages fixed by Art 1706. Withholding of the wages, except for a debt 1. Facilities;
the LC. due, shall not be made by the employer. 2. Amount paid by ER as premiums on insurance,
Payment thru ATM allowed (DOLE Labor Advisory s of Art 1707. The laborer's wages shall be a lien on the consented to by EE;
1996), provided: goods manufactured or the work done. 3. For union dues, where the right of EE or his
a. With written consent of employees concerned; Art 1708. The laborer's wages shall NOT be subject to union to checkoff has been recognized by the ER
b. Given reasonable time to withdraw during execution or attachment, except for debts incurred or authorized in writing by the EE concerned;
working hours and is considered compensable; for food, shelter, clothing and medical attendance. 4. Where ER is authorized by law or regulations
c. Within period of payment of wages fixed by LC; Art 1709. The employer shall neither seize nor retain issued by SOLE;
d. There is a bank or ATM within 1KM radius; any tool or other articles belonging to the laborer. 5. For loss or damage under Art 114 LC; DOLE LA
11-14, Private Security Agencies:
Payslip be provided, upon request;
Other Prohibitions
e.

Following must be observed:

No additional expenses and diminution of
a.

Kickbacks - induce a worker to give up any part of

f.

benefits resulting from the scheme; 1.

i. EE is clearly responsible for the
his wages by force, stealth, intimidation, threat; loss or damage;
Employer shall assume responsibility in case the
Deduction to ensure employment (Art 117);
g.

wage protection provisions of law and regulations 2.

ii. He is given reasonable
are not complied with under the arrangement. 3. Retaliate against an employee who has opportunity to show cause why
deductions should not be made;
Payee (Art 105) a. Filed any complaint, or
Deduction is fair and reasonable
Instituted proceedings, or
iii.

GR: Direct to Employee; and should not exceed the actual

b.

Has testified or is about to testify in said loss or damage; and

EXC:
c.

proceedings;
Force majeure, in which case worker may be paid iv. Does not exceed 20% of EE’s
by: wages in a week.
a.

through another person under written authority

for such purpose; or 1. Refusing to pay the wages; or b. Cash Deposit — must not exceed one
Worker has died, in which case, paid to heirs 2. Reducing such wages; or month's basic salary of EE. May be
deducted from wages in an amount not to
b.

without need of intestate proceedings, only Discharging him from employment; or

exceed 20% of EE’s wages in a week.
3.

affidavit of heirship.
Discriminate against him in any manner. c. Refund — within 10 days from
4.

Time and Frequency (Art 118)

separation from service.
(Art 103; Book III Rule VIII Sec 3) False reporting (Art 119) With regard to the amount deducted daily by
4.

GR: At least every 2 weeks or twice a month at Non-interference in the disposal of wages private respondent from petitioners for washing
intervals not exceeding 16 days. of the taxi units, we view the same as not illegal
Art 112. No employer is allowed to limit or otherwise in the context of the law. (Jardin v. NLRC)
EXC: interfere with how an employee should dispose or
Employers should first establish that the making
Force majeure. make use of the latter’s wages. He shall not in any
a.

of deductions from the salaries is authorized by

manner force, compel, or oblige his employees to
law, or regulations issued by the Secretary of
 Labor. Further, the posting of cash bonds should latter does not receive any pecuniary benefit, government agency such as SEC, DTI, CDA
be proven as a recognized practice in the directly or indirectly, from the transaction. and Mayor's Office.
jewelry manufacturing business, or alternatively, 3) Retail/Service establishments employing
the employer should seek for the determination Unauthorized deductions
not more than ten (10) workers.
by the Secretary of Labor through the issuance of company uniforms;
Retail establishment refers to an entity
1.

appropriate rules and regulations that the policy a)

cash deposit for loss or damage, unless principally engaged in the sale of goods
the former seeks to implement is necessary or
2.

authorized by SOLE; to end users for personal or household

desirable in the conduct of business. (Niña
Jewelry Manufacturing of Metal Arts v. Montecillo 3. personal protective equipment; use. A retail establishment that regularly
2011) engages in wholesale activities loses its
capital share/capital build-up in service
retail character.
4.

For Agency Fees from non-union members who cooperatives;

Service Establishment refers to an
6.

accept the benefits under the CBA negotiated by training fees; and
b)

entity principally engaged in the sale of

5.

the bargaining union. Does not need

other deductions not included or authorized. services to individuals for their own or
authorization from concerned member;
6.

6. Wage determination household use and is generally

7. Premiums for SSS, PhilHealth, employee’s recognized as such.
compensation and Pag-IBIG; Two Methods of Determining Wages
Establishments adversely affected by
Withholding tax;
4)

8.

a. Floor Wage Method which involves the fixing of natural calamities.

9. Where EE is indebted to ER that has become due a determinate amount to be added to the a) The establishment must be located in an
and demandable (Art 1706 CC); prevailing statutory minimum wage rates. area declared by a competent
10. Pursuant to a court judgment where wages may b. Salary Ceiling Method wherein the wage authority as under a state of calamity.
be the subject of attachment or execution but b) The natural calamities, such as
adjustment was to be applied to employees
only for debts incurred for earthquakes, lahar flow, typhoons,
receiving a certain denominated salary ceiling.
food, volcanic eruptions, fire, floods and
Used in RA 6727.
a.

clothing, similar occurrences, must have occurred

See Employers Confederation of PH v. NWPC within 6 months prior to the
b.

c. shelter and effectivity of the Order. However, if

d. medical attendance; a. Wage order based on the assessment by a competent
Ordered by the court. See 2020 DOLE Handbook on Workers’ Statutory authority, the damage to properties is at
least 50% and the period of recovery will
11.

Under the PH Cooperative Act of 2008. RA Monetary Benefits.

12.

exceed 1 year, the 6-month period may

9520 - A member of a cooperative may execute In Pag-asa Steel Works v. CA, there is no right to a be extended to 1 year. (As amended by
an instrument in favor of the cooperative wage increase from a wage order if the employees NWPC Resolution No 01-14)
authorizing his employer to deduct from his have been receiving salaries above the minimum
wages and remit such to the cooperative to satisfy wage. c) Losses suffered by the establishment as a
any incurred debt or other demands. result of the calamity that exceed the
Exemptions from Wage Orders insurance coverage should amount to
13. DO No. 195, S. 2018, Amending Sec. 10, Rule VIII, ★ Provided in NWPC Guidelines 02-07, as further 20% or more of the stockholders'
Book III, IRR. AMENDED by NWPC Resolution No. 1, S. 2014. equity.
SECTION 10. Wages deduction. — Deductions ★ Categories of Exemptible Establishments:
from the wages of the employees may be made by
the employer in any of the following cases: 1) Distressed establishments;
(b) When the deductions are with the written 2) New business enterprises (NBEs) — refers
authorization of the employees for payment to to establishments, including non-profit
the EMPLOYER or a third person and the institutions, established within two (2) years
employer agrees to do so; Provided, That the from effectivity of the Wage Order based on
the latest registration with the appropriate
 a. RA 9178. Barangay Micro Business Board (RTWPB), but excludes other
Enterprises Act of 2002. The BMBEs shall be wage-related benefits such as OT,
exempt from the coverage of the Minimum Wage bonuses, night-shift differential, holiday,
premium, 13th month pays, leave
Law:
benefits, among others.
Provided, That all employees covered under this b. Wage Order refers to the order
Act shall be entitled to the same benefits given to promulgated by the RTWPB pursuant to
any regular employee such as social security and its wage-fixing authority.
healthcare benefits. c. Unpaid benefits refer to the prescribed
BMBEs refer to any business entity or enterprise wage rates which the employer failed to
engaged in the production, processing or pay upon effectivity of a wage order and
shall be the principal basis for computing
manufacturing of products or commodities,
the double indemnity.
including agro-processing, trading and services,
d. Double indemnity is the payment to a
whose total assets including those arising from
concerned employee of twice the
loans but exclusive of the land on which the prescribed increases or adjustments
particular business entity's office, plant and in the wage rates, which was not paid by
equipment are situated, shall not be more than the employer.
Three Million Pesos. 2. Two types of inspection:
b. RA 10644. Go-Negosyo Act. a. Routine inspection — where the
Violation of Wage Order violation has been established after due
notice and hearing where appropriate,
Double Indemnity and Imprisonment under the RD shall, after 7 calendar days from
RA 6727. the employer’s receipt of the NIR, issue a
compliance order.
Fine of P25K-100K; OR
b. Complaint inspection — RD shall call
1.

2. Non-probationable Imprisonment of 2-4 Years; for a summary investigation and after

(Filed with the MTC); OR due notice and hearing issue a
compliance order.
3. Both, at the discretion of the court.
Employer shall pay the amount due each
4. Double indemnity — paying double the unpaid worker within 10 days from receipt of
Exemptions Under the Labor Code
benefits/amounts owing the employees, provided such order and submit proof of
a. Farm tenancy or leasehold; that such payment does not absolve employer compliance.
b. Domestic service — already covered in from criminal liability imposable under LC. Upon finality of the compliance order, the
Domestic Workers Act or Batas Kasambahay, RA DOLE DO 10-98 on Guidelines on the Imposition of RD shall cause the issuance of a writ of
10361; Double Indemnity for Non-Compliance with the execution for its enforcement.
c. Persons working in their respective homes in Prescribed Increases or Adjustment in Wage Rates. See Jurisdiction
needle work; also Philippine Hoteliers v. NUWHRAIN-APL-IUF. 1. First-level courts — does not exceed P100K for
d. Persons working in any cottage industry duly Provincial, P200K for Metro Manila;
registered in accordance with the law. 1. Important Definitions: 2. RTC — otherwise.
Exemptions Under Special Laws a. Wage Rates refers to the lowest basic
See NLRC En Banc Resolutions 01-19.
pay that the employer can pay his
workers including COLA as fixed by the
b. Wage distortion that increased the hiring rates of new employees The phrase “one year of service” of the employee
without increasing the salary rates of old employees means service within twelve (12) months, whether
A situation where an increase in prescribed wage DOES NOT RESULT in wage distortion within the
rates results in the elimination or severe contraction continuous or broken, reckoned from the date the
contemplation of Article 124 of the Labor Code, as the
of intentional quantitative differences in wage or employee started working. The period includes
increase in the wages and salaries of the newly-
salary rates between and among employee groups in hired was not due to a prescribed law or wage authorized absences, unworked weekly rest days, and
an establishment as to effectively obliterate the order. paid regular holidays.
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of Wage Distortion Resolution Tan v. Lagrama
differentiation. (Art 124 LC) If a piece worker is supervised, there is an employer-
Elements of Wage Distortion employee relationship. However, such an employee is
An existing hierarchy of positions with not entitled to service incentive leave pay since, as
pointed out in Makati Haberdashery v. NLRC and Mark
1.

corresponding salary rates;

Roche International v. NLRC, he is paid a fixed amount
2. A significant change in the salary rate of a for work done, regardless of the time he spent in
lower pay class w/o concomitant increase in accomplishing such work.
the salary rate of a higher one;
3. Elimination of the distinction between the 2. Special laws
two levels;
a. Parental leave for solo parents
4. Existence of the distortion in the same
region. See RA 8972. Solo Parent Welfare Act and its IRR
Prubankers Association v. Prudential Bank In addition to leave privileges under existing laws,
parental leave of not more than seven (7) working
Wage distortion presupposes an increase in the
compensation of the lower ranks in an office hierarchy days every year shall be granted to any solo parent
without a corresponding raise for higher-tiered employee who has rendered service of at least one (1)
employees in the same region of the country, resulting year.
in the elimination or the severe diminution of the The seven-day parental leave shall be non-cumulative.
distinction between the two groups.
In the event that the parental leave is not availed of,
Such distortion does not arise when a wage order gives
said leave shall not be convertible to cash unless
employees in one branch of a bank higher C. Leaves
compensation than that given to their counterparts in specifically agreed upon previously.
other regions occupying the same pay scale, who are
1. Labor Code b. Expanded maternity leave
not covered by said wage order. In short, the
implementation of wage orders in one region but not in a. Service incentive leave See 105-Day Expanded Maternity Leave Law
others does not in itself necessarily result in wage
Every employee who has rendered at least one (1) Increased maternity leave with full pay;
distortion.
1.

year of service is entitled to Service Incentive a. 105 days for natural or cesarean
Possible Causes Leave (SIL) of five (5) days with pay. delivery;
a. Government decreed increase through WOs; 60 days for miscarriage or emergency
Five days leave with pay;
b.

termination of pregnancy.
■

b. Merger of establishments;
■ Rendered at least 1 year service; Option to extend maternity leave for additional
c. Increase granted by employers;
2.

■ Part time workers may benefit; thirty (30) days without pay;
d. Passage of RA 6727.
Commutable to cash if not used. Notify ER at least 45 days before end of
In Bankard Employees Union v. NLRC, the unilateral
■

maternity leave to avail of extension.

adoption by an employer of an upgraded salary scale
 3. Additional fifteen (15) days with full pay for solo Entitled to full pay, consisting of basic salary, for the 7 The qualified victim-employee shall be entitled to a
parents; days of paternity leave, for up to the first four (4) leave of up to ten (10) days with full pay, consisting
Combinations of prenatal and postnatal leave; deliveries. of basic salary and mandatory allowances fixed by
RTWPB.
4.

★ Compulsory postnatal at least 60 days. 1. A married male employee;

Cohabiting with spouse;
5. Maternity leave regardless of frequency; 2.

D. Sexual harassment in the work

Allocation of maternity leave credits; Has applied for PL;
environment
3.

6.

allocate up to seven (7) days of said 4. Legitimate spouse gave birth or had a
miscarriage.
a.

benefits to the child's father, whether or 1. Definition

not the same is married to the female In the event that the paternity leave is not availed of, Under the Anti-Sexual Harassment Act of 1995, it is
worker. it shall not be convertible to cash and shall not be committed by an employer, employee, manager,
b. alternate caregiver who may be a cumulative. supervisor, agent of the employer, xxx, or any other
relative within the fourth degree of person who, having authority, influence or moral
consanguinity or the current partner of d. Gynecological leave
ascendancy over another in a work environment,
the female worker sharing the same Any female employee in the public and private sector
household. demands, requests or otherwise requires any sexual
regardless of age and civil status shall be entitled to a
favor from the other, regardless of whether the
In the event the beneficiary female special leave of two (2) months with full pay based
demand, request or requirement for submission is
c.

worker dies or is permanently on her gross monthly compensation subject to

incapacitated, the balance of her existing laws, rules and regulations due to surgery accepted by the object of said act.
maternity leave benefits shall accrue to caused by gynecological disorders under such terms
2. Duties and liabilities of employers
the father of the child or to a qualified and conditions:
caregiver. Employers or other persons of authority, influence or
She has rendered at least six (6) months
moral ascendancy in a workplace shall have the duty
1.

7. Maternity leave after termination of service; continuous aggregate employment service for
the last twelve (12) months prior to surgery; to prevent, deter, or punish the performance of acts of
★ occurs not more than fifteen (15)
calendar days after the termination of 2. In the event that an extended leave is gender-based sexual harassment in the workplace.
an employee's service, as her right necessary, the female employee may use her The employer or head of office shall be solidarily
thereto has already accrued. earned leave credits; and
liable for damages arising from the acts of sexual
★ such period is not applicable when the 3. This special leave shall be non-cumulative harassment committed in the employment if the
employment of the pregnant woman and non- convertible to cash.
employer or head of office is informed of such acts by
worker has been terminated without just
cause. e. Battered woman leave the offended party and no immediate action is taken.

8. Voluntary working arrangement during the See RA 9262 or the Anti-VAWC Law. 3. Applicable laws
maternity leave period; The leave benefit shall cover the days that the woman
employee has to attend to medical and legal concerns.
a. Sexual Harassment Act
9. Heavier penalties.
Requirement. — To be entitled to the leave benefit, Sexual harassment is committed when:
c. Paternity leave the only requirement is for the victim-employee to 1) The sexual favor is made as a condition
RA 8187. Paternity Leave Act of 1996 present to her employer a certification from the a) in the hiring or in the employment, re-
Paternity Leave is granted to all married male a. barangay chairman or employment or continued employment of
b. barangay councilor or said individual, or
employees in the private sector, regardless of their
employment status. c. prosecutor or b) in granting said individual favorable
compensation, terms of conditions,
Government employees are also entitled to the d. the Clerk of Court, as the case may be, promotions, or privileges; or
paternity leave benefit. that an action relative to the matter is pending. the refusal to grant the sexual favor results
 c) in limiting, segregating or classifying the Possess the ability to comprehend and follow oral
E. Working conditions for special groups
d)

employee which in any way would and written instructions.

discriminate, deprive or diminish of employees
employment opportunities or otherwise Compulsory apprenticeship
adversely affect said employee; 1. Apprentices and learners a) When grave national emergencies, particularly
2) The above acts would impair the employee's those involving the security of the state, arise or
Apprentice
rights or privileges under existing labor laws; or particular requirements of economic
3) The above acts would result in an intimidating, Apprenticeship means any training on the job
development so demand, the Secretary of Labor
hostile, or offensive environment for the supplemented by related theoretical instructions
and Employment may recommend to the
employee. involving apprenticeable occupations and trades.
President of the Philippines the compulsory
b. Safe Spaces Act Apprenticeable occupation means any trade, form training of apprentices required in a certain
The crime of gender-based sexual harassment in the of employment or occupation approved for trades, occupations, jobs or employment levels
workplace includes the following: apprenticeship by the SOLE, which requires for where shortage of trained manpower is deemed
proficiency more than three months of practical critical;
An act or series of acts involving
training on the job supplemented by related
1)

any unwelcome sexual advances, Where services of foreign technicians are utilized
theoretical instructions.
b)

a)

requests or demand for sexual favors or by private companies in apprenticeable trades

Apprenticeship standards means the written said companies are required to set up appropriate
any act of sexual nature, whether done implementing plans and conditions of an apprenticeship programs.
b)

verbally, physically or through the use of

apprenticeship program.
technology, Qualified Employers
Coverage
that has or could have a detrimental effect on the Only employers in the highly technical industries
conditions of an individual's employment or 1. Any enterprise duly registered with TESDA with may employ apprentices and only in apprenticeable
education, job performance or opportunities; 10 or more regular workers. The number of occupations approved by the SOLE.
apprentices shall not be more than 20% of its
A conduct of sexual nature and other conduct- Any entity, whether or not organized for profit may
total regular workforce.
2)

based on sex affecting the dignity of a person, establish or sponsor apprenticeship programs and
which is unwelcome, unreasonable, and offensive 2. Any unemployed person 15 years old and above employ apprentices.
to the recipient, whether done verbally, physically may apply.
Deductibility of Training Costs. — An additional
or through the use of technology; Qualifications deduction from taxable income of one-half (1/2) of the
A conduct that is unwelcome and pervasive and value of labor training expenses incurred for
To qualify as apprentice, an applicant shall:
3)

creates an intimidating, hostile or humiliating developing the productivity and efficiency of apprentices
environment for the recipient. a) Be at least fifteen years of age; provided those
shall be granted to the person or enterprise organizing an
who are at least fifteen years of age but less than
This may also be committed between peers and apprenticeship program:
eighteen may be eligible for apprenticeship only
those committed to a superior officer by a
in non-hazardous occupations; Provided, That such program is duly recognized by
subordinate, or to a teacher by a student, or to a
the DOLE:
trainer by a trainee. b) Be physically fit for the occupation in which he
desires to be trained; Provided, further, That such deduction shall not
exceed ten (10%) percent of direct labor wage:
c) Possess vocational aptitude and capacity for the
and
particular occupation as established through
appropriate tests; and
 Provided, finally, That the person or enterprise who computing in the agreement the appropriate periods d) Personal problems which in the opinion of the
wishes to avail himself or herself of this incentive for giving wage increases to the apprentice. apprentice shall prevent him from a satisfactory
should pay his apprentices the minimum wage. An apprentice not otherwise barred by law from performance of his job; and
Apprentices without Compensation. — The SOLE may working eight hours a day may be requested by his e) Bad health or continuing illness.
authorize the hiring of apprentices without compensation employer to work overtime and paid accordingly,
Learner
whose training on the job is provided there are no available regular workers to do
1. required by the school or training program the job, and the overtime work thus rendered is duly Learners are persons hired as trainees in semi-skilled
curriculum or credited toward his training time. and other industrial occupations which are non-
Valid cause to terminate agreement apprenticeable and which may be learned through
as requisite for graduation or board examination.
practical training on the job in a relatively short period of
2.

Apprenticeship period Either party to an agreement may terminate the same

time which shall not exceed three (3) months.
after the probationary period only for a valid cause.
The period of apprenticeship shall not exceed six (6) Learners may be employed
The following are valid causes for termination:
months.
By the employer — 1. when no experienced workers are available,
Four hundred (400) hours or two (2) months
the employment of learners is necessary to
a)

for trades or occupations which normally a) Habitual absenteeism in on-the-job training and 2.

related theoretical instructions; prevent curtailment of employment

require a year or more for proficiency; and
opportunities, and
Two hundred (200) hours or one (1) month b) Willful disobedience of company rules or
the employment does not create unfair
b)

for occupations and jobs which require more insubordination to lawful order of a superior; 3.

competition in terms of labor costs or impair or

than three months but less than one year for Poor physical condition, permanent disability or
lower working standards.
c)

proficiency. prolonged illness which incapacitates the

apprentice from working; Learnership Agreement
At least five (5) working days before the actual date of
termination, the party terminating shall serve a d) Theft or malicious destruction of company Any employer desiring to employ learners shall enter into
written notice on the other, stating the reason for property and/or equipment; a learnership agreement with them, which agreement
such decision and a copy of said notice shall be shall include:
e) Poor efficiency or performance on the job or in
furnished to the Apprenticeship Division concerned. the classroom for a prolonged period despite a) The names and addresses of the learners;
Wages warnings duly given to the apprentice; and b) The duration of the learnership period, which
The wage rate of the apprentice shall start at seventy f) Engaging in violence or other forms of gross shall not exceed three (3) months;
five (75%) percent of the statutory minimum misconduct inside the employer's premises. c) The wages or salary rates of the learners which
wage for the first six (6) months; thereafter, he shall By the apprentice — shall begin at not less than seventy-five percent
be paid the full minimum wage, including the full cost (75%) of the applicable minimum wage; and
Substandard or deleterious working conditions
of living allowance.
a)

within the employer's premises: d) A commitment to employ the learners if they so

Hours of work desire, as regular employees upon completion of
Repeated violations by the employer of the terms
the learnership. All learners who have been
b)

Shall not exceed the maximum number of hours of of the apprenticeship agreement;
work prescribed by law, if any, for a worker of his age allowed or suffered to work during the first two
Cruel or inhuman treatment by the employer or (2) months shall be deemed regular employees if
and sex. Time spent in related theoretical instructions
c)

his subordinates; training is terminated by the employer before the

shall be considered as hours of work and shall be
reckoned jointly with on-the-job training time in end of the stipulated period through no fault of
the learners.
Learnership v. Apprenticeship Handicap refers to a disadvantage for a given individual,
prevent
resulting from an impairment or a disability, that limits or
Learner Apprentice curtailment of
prevents the function or activity, that is considered
employment
normal given the age and sex of the individual
Practical opportunities,
training
✔ ✔ and a. Equal opportunity
3. does not create
Agreement Learnership Apprenticeship unfair Equal Opportunity for Employment. No disabled
competition in persons shall be denied access to opportunities for
Learnable Any trade, form terms of labor suitable employment. A qualified disabled employee
occupations of employment or costs or impair or shall be subject to the same terms and conditions of
consisting of occupation lower working
Occupation employment and the same compensation, privileges,
semi-skilled and approved for standards.
other industrial apprenticeship benefits, fringe benefits, incentives or allowances as a
occupations by SOLE 20% of total qualified able-bodied person.
Limitation NONE regular
Theoretical workforce b. Discrimination on employment
Not required Required
instruction No entity, whether public or private, shall
Option to ER Obliged to
Optional discriminate against a qualified disabled person by
Ratio of 100 hours for every 2,000 hours of employ hire learner
theoretical inst. OJT reason of disability in regard to job application
Wage rate 75% of statutory MW procedures, the hiring, promotion, or discharge of
Competency- employees, employee compensation, job training, and
based system
✔ ✘ 2. Disabled workers other terms, conditions, and privileges of
see also RA 7277 or the Magna Carta for Disabled employment.
Not exceeding 3
Duration 3-6 months Persons, as amended The following constitute acts of discrimination:
months
Handicapped workers may be employed
Limiting, segregating or classifying a disabled job
(a) Be at least 15
1.

1. when their employment is necessary to prevent applicant in such a manner that adversely affects
years of age; curtailment of employment opportunities and
(b) Possess his work opportunities;
when it does not create unfair competition in
vocational Using qualification standards, employment test or
2.

labor costs or impair or lower working standards. 2.

aptitude and other selection criteria that screen out or tend to

capacity for Disabled Persons are those suffering from restriction or
screen out a disabled person unless such
appropriate tests; different abilities, as a result of a mental, physical or
Qualifications ✘ and sensory impairment, to perform an activity in the manner standards, test or other selection criteria are
(c) Possess the or within the range considered normal for a human being; shown to be job-related for the position in
ability to Impairment is any loss, diminution or aberration of question and are consistent with business
comprehend and psychological, physiological, or anatomical structure or necessity;
follow oral and function; Utilizing standards, criteria, or methods of
written
3.

instructions. Disability shall mean administration that:

1) a physical or mental impairment that a. have the effect of discrimination on the
Circumstances 1. when no ✘ substantially limits one or more psychological, basis of disability; or
justifying experienced physiological or anatomical function of an
hiring workers are individual or activities of such individual; b. perpetuate the discriminations of others
available, a record of such an impairment; or who are subject to common
2. necessary to
2)

administrative control.
3) being regarded as having such an impairment;
 4. Providing less compensation, such as salary, wage b. Private entities that improve or modify their 2) To discharge such woman on account of her
or other forms of remuneration and fringe physical facilities in order to provide reasonable pregnancy, or while on leave or in confinement
benefits, to a qualified disabled employee, by accommodation for disabled persons shall also be due to her pregnancy;
entitled to an additional deduction from their To discharge or refuse the admission of such
reason of his disability, than the amount to which
net taxable income, equivalent to fifty
3)

a non-disabled person performing the same work woman upon returning to her work for fear that
percent (50%) of the direct costs of the she may again be pregnant.
is entitled;
improvements or modifications.
Favoring a non-disabled employee over a d. Facilities for women
5.

This, however, does not apply to improvements

qualified disabled employee with respect to or modifications of facilities required under Batas In appropriate cases, the SOLE shall, by regulations,
promotion, training opportunities, study and Pambansa Bilang 344. require any employer to:
scholarship grants, solely on account of the 3. Gender Provide seats proper for women and permit them
latter's disability;
a)

a. Discrimination to use such seats when they are free from work
6. Re-assigning or transferring a disabled employee and during working hours, provided they can
to a job or position he cannot perform by reason It shall be unlawful for any employer to discriminate
perform their duties in this position without
of his disability; against any woman employee with respect to terms and
conditions of employment solely on account of her sex. detriment to efficiency;
Dismissing or terminating the services of a
The following are acts of discrimination: To establish separate toilet rooms and lavatories
7.

disabled employee by reason of his disability

b)

Payment of a lesser compensation, including for men and women and provide at least a
unless the employer can prove that he impairs the
a)

wage, salary or other form of remuneration and dressing room for women;
satisfactory performance of the work involved to fringe benefits, to a female employee as against a
the prejudice of the business entity; Provided, To establish a nursery in a workplace for the
male employee, for work of equal value; and
c)

however, That the employer first sought to benefit of the women employees therein; and
Favoring a male employee over a female
provide reasonable accommodations for disabled
b)

employee with respect to promotion, training d) To determine appropriate minimum age and
persons; opportunities, study and scholarship grants solely other standards for retirement or termination in
8. Failing to select or administer in the most on account of their sexes. special occupations such as those of flight
effective manner employment test which b. Stipulation against marriage attendants and the like.
accurately reflect the skills, aptitude or other
It shall be unlawful for an employer to require as a e. Women working in nightclubs, etc.
factor of the disabled applicant or employee that
condition of employment or continuation of
such test purports to measure, rather than the Any woman who is permitted or suffered to work,
employment that a woman employee shall not get
impaired sensory, manual or speaking skills of with or without compensation, in any night club,
married, or to stipulate expressly or tacitly that upon
such applicant or employee, if any; and cocktail lounge, massage clinic, bar or similar
getting married, a woman employee shall be deemed
Excluding disabled persons from membership in establishments under the effective control or
9.
resigned or separated, or to actually dismiss,
labor unions or similar organizations. supervision of the employer for a substantial period
discharge, discriminate or otherwise prejudice a
of time as determined by the Secretary of Labor and
woman employee merely by reason of her marriage.
c. Incentives for employers Employment, shall be considered as an employee of
a. Private entities that employ disabled persons who c. Prohibited acts such establishment for purposes of labor and social
meet the required skills or qualifications, either It shall be unlawful for any employer: legislation.
as regular employee, apprentice or learner, shall
be entitled to an additional deduction, from 1) To deny any woman employee the benefits 4. Minors
provided for in this Chapter or to discharge any
their gross income, equivalent to twenty-five Special Protection of Children Against Child Abuse,
woman employed by him for the purpose of
percent (25%) of the total amount paid as preventing her from enjoying any of the benefits
Exploitation and Discrimination Act or RA No. 9231,
salaries and wages to disabled persons. amending RA 7610)
provided under this Code;
Child labor v. Personal and Protective Services A work permit shall be secured from DOLE in
Workers; both instances.
refers to any work or economic activity performed by
a child that subjects him/her to any form of vi. Customer Services Clerks; ★ Hours of Work. up to 4H/D, 20H/W;
exploitation or is harmful to his/her health and safety vii. Other Craft and Related Trade 6am to 8pm only.
or physical, mental or psychosocial development. Workers. Additional Prohibition
D0 No. 65-04, S. 2004 on Worst Forms of Child Labor ★ Hours of Work. up to 8H/D, 40H/W; Section 14. Prohibition on the Employment of
DOLE Dept. Circular No. 2, S. 2017 on Guidelines on 6am to 10pm only. Children in Certain Advertisements. — No child
the Issuance of Work Permit for Children Below 5 B. Below 15 years of age shall be employed as a model in any
Years Old Engaged in Public Entertainment or advertisement directly or indirectly promoting
GR: Shall not be employed
Information. alcoholic beverages, intoxicating drinks, tobacco
EX: When a child works and its byproducts, gambling or any form of
A. 15 and above, but below 18 years of age
Directly under the sole responsibility of violence or pornography.
GR: May be employed
a.

his parents/ legal guardian and where 5. Kasambahays

EX: In an undertaking which is deleterious or only members of his family are
hazardous in nature. ➔ Domestic Workers Act or Batas Kasambahay;
employed.
★ DOLE DO 149-16. Based on Two ➔ see IRR dated May 9, 2013.
Provided his employment neither
Classifications: endangers his life, safety, health, and Rights of Kasambahay and Obligations
a. Industrial Classification morals nor impairs his normal The rights and privileges of the Kasambahay are as
development. follows:
i. Mining and Quarrying;
Provided further that said child is Minimum wage;
Construction; a.

provided with the prescribed education;

ii.

Transportation and Storage; b. Other mandatory benefits, such as the daily

Or participates in public entertainment
iii.

Water Supply, Sewerage, Waste

b.

and weekly rest periods, service incentive

iv.

or information leave, and 13th month pay;

management and remediation
Provided that the employment contract Freedom from employers' interference in the
activities; c.

is concluded by child’s parent with disposal of wages;

v. Forestry and Logging; express agreement of said child
Fishing and Agriculture; d. Coverage under the SSS, PhilHealth and Pag-
vi.

Provided further that the following are IBIG laws;

vii. Hunting, Trapping; met:
e. Standard of treatment;
viii. Security and Investigation; 1) Protection, health, safety, morals
and normal development of child f. Board, lodging and medical attendance;
ix. Manufacturing
is ensured; g. Right to privacy;
b. Occupational Classification
Measures are instituted to h. Access to outside communication;
Farmers
2)

prevent child’s exploitation or

i.

i. Access to education and training;

ii. Animal Producers; discrimination; and
j. Right to form, join, or assist labor
iii. Physical, Life Sciences and Health 3) A continuing program for organization;
Associate Professionals; training and skills acquisition of
Right to be provided a copy of the
the child is formulated and
k.

iv. Sales and Services Elementary employment contract as required under

Occupations; implemented.
Section 7, Rule II of this IRR;
 l. Right to certificate of employment as carried out by a homework at his/her home. Materials c. Spouse detained for at least 1 year;
required under Section 5, Rule VII of this IRR; may or may not be furnished by the employer or d. Spouse is physically or mentally incapacitated as
m. Right to terminate the employment as contractor. It differs from regular factory production certified by a public medical practitioner;
provided under Section 2, Rule VII of this IRR; principally in that, it is a decentralized form of
Legally or de facto separated for at least one year;
production where there is ordinarily very little
e.

and
supervision or regulation of methods of work. f. Marriage annulled;
Right to exercise their own religious beliefs
Abandoned by spouse for at least one year;
n.

and cultural practices. Exemption from minimum Wage (Art. 98) if g.

engaged in needlework. The title on Wages shall not Unmarried parent;

The employer enjoys the following rights:
h.

apply to farm tenancy or leasehold, domestic service

Any other person who solely provides for
To require submission of pre-employment and persons working in their respective homes in
i.

parental care;
a.

documents by the Kasambahay (Section 4, needle work or in any cottage industry duly
Rule II of this IRR); registered in accordance with law. j. Any family member who assumes role as head of
family.
b. To recover deployment expenses (Section 3, Work Prohibitions
Rule II of this IRR); 8. Night workers
No homework shall be performed on the following:
To demand replacement (Section 4, Rule III of see IRR DOLE DO No. 119-12 s. 2012;
explosives, fireworks and articles of like
c.

this IRR); and

1)

character; Coverage & Exclusion

To terminate employment (Section 3, Rule VII Shall apply to all persons, who shall be employed or
drugs and poisons; and
d.

of this IRR).
2)

permitted or suffered to work at night, except those

other articles, the processing of which
6. Homeworkers employed in agriculture, stock raising, fishing,
3)

requires exposure to toxic substances.

maritime transport and inland navigation, during a
see DO No. 5, S. 1992 on Industrial Homeworkers.
7. Solo parents period of not less than seven (7) consecutive hours,
Distribution of Homework. — The "employer" of including the interval from midnight to five o'clock in
See RA 8972 or the Solo Parent Welfare Act and its
homeworkers includes any person, natural or the morning.
IRR
artificial who, for his account or benefit, or on behalf
Solo parent, or other person who solely provides parental "Night worker" means any employed person whose
of any person residing outside the country, directly or
care and support to a child or children. work requires performance of a substantial number of
indirectly, or through an employee, agent contractor,
hours of night work which exceeds a specified limit.
sub-contractor or any other person: 1. Has rendered service for at least 1 year;
Delivers, or causes to be delivered, any goods, Rights of Night workers
1)
2. Notified employer;
articles or materials to be processed or
Presented a Solo Parent ID. 1. Health assessment. — At their request,
fabricated in or about a home and thereafter
3.

workers shall have the right to undergo a health

to be returned or to be disposed of or Benefits include assessment without charge and to receive advice
distributed in accordance with his directions; 1. Parental leave of not more than 7 days every on how to reduce or avoid health problems
or year. associated with their work:
2) Sells any goods, articles or materials to be 2. Flexible work schedule; a) Before taking up an assignment as a night
processed or fabricated in or about a home 3. Protection from work discrimination. worker;
and then rebuys them after such processing At regular intervals during such an
Who are considered solo parents? b)

or fabrication, either by himself or through assignment;

some other person. a. Woman who gives birth resulting from rape;
If they experience health problems
Spouse died;
c)

“Industrial Homework” is a system of production b.

during such an assignment.

under which work for an employer or contractor is
 With the exception of a finding of unfitness for iii) Where the workplace is located additional periods are necessary for the health of
night work, the findings of such assessments shall in an area that is accessible the mother or child:
be confidential and shall not be used to their twenty four (24) hours to public 1) During pregnancy;
detriment, subject however to applicable transportation;
During a specified time beyond the
company policies.
2)

iv) Where the number of employees period, after childbirth is fixed pursuant
2. Mandatory facilities. — Mandatory facilities does not exceed a specified to subparagraph (a) above, the length of
shall be made available for workers performing number as may be provided for which shall be determined by the DOLE
night work which include the following: by the Secretary of Labor and after consulting the labor organizations
Employment in subsequent and employers.
Suitable first-aid and emergency facilities
issuances.
a)

as provided for under Rule 1960 During the periods referred to in this article:
(Occupational Health Services) of the Transfer. — Night workers who are certified by
A woman worker shall not be dismissed
3.

Occupational Safety and Health competent physician, as unfit to render night

a)

or given notice of dismissal, except for

Standards (OSHS); work, due to health reasons, shall be transferred
just or authorized causes provided for in
Lactation station in required companies to a job for which they are fit to work whenever
b)

this Code that are not connected with

pursuant to RA No. 10028 (The practicable. The transfer of the employee must be
pregnancy, childbirth and childcare
Expanded Breastfeeding Promotion Act to a similar or equivalent position and in good
responsibilities.
of 2009); faith.
A woman worker shall not lose the
If such transfer is not practicable or the workers
b)

c) Separate toilet facilities for men and benefits regarding her status, seniority,
women; are unable to render night work for a continuous
and access to promotion which may
period of not less than six (6) months upon the
Facility for eating with potable drinking attach to her regular night work position.
certification of a competent public health
d)

water; and Pregnant women and nursing mothers may be

authority, these workers shall be granted the
e) Facilities for transportation and/or same company benefits as other workers who are allowed to work at night only if a competent
properly ventilated temporary sleeping unable to work due to illness. physician, other than the company physician, shall
or resting quarters, separate for male and certify their fitness to render night work, and specify,
A night worker certified as temporarily unfit for
female workers, shall be provided except in the case of pregnant employees, the period of the
night work for a period of less than six (6) months
where any of the following circumstances pregnancy that they can safely work.
shall be given the same protection against
is present: The measures referred to in this article may include
dismissal or notice of dismissal as other workers
i) Where there is an existing who are prevented from working for health transfer to day work where this is possible, the
company guideline, practice or reasons. provision of social security benefits or an extension of
policy, collective bargaining maternity leave.
Women Night Workers. — Measures shall be taken to
agreement (CBA) or any similar The provisions of this article shall not have the effect
ensure that an alternative to night work is available to
agreement between of reducing the protection and benefits connected
women workers who would otherwise be called upon to
management and workers with maternity leave under existing laws.
perform such work:
providing for an equivalent or
superior benefit; or a) Before and after childbirth, for a period of at least Criminal liability of Employer
sixteen (16) weeks, which shall be divided Any violation of this Rule shall be punishable with a
Where the start or end of the
between the time before and after childbirth; fine of 30K - 50K or imprisonment of not less than
ii)

night work does not fall within

For additional periods, in respect of which a six (6) months or both, at the discretion of the court.
12 midnight to 5 o'clock in the b)

medical certificate is produced stating that said If the offense is committed by a corporation, trust,
morning; or
 firm, partnership or association or other entity, the ★ Shall be commensurate to the cost of b) Relevant bilateral and multilateral
penalty shall be imposed upon the guilty officer or living in the host country, or off-setting of agreements or arrangements with the
officers of such corporation, trust, firm, partnership or benefits. host country; and
association, or entity. 5. Commencement and duration of c) Prevailing conditions/realities in the
9. Migrant workers contract; market.
Free transportation from and back to Section 136 gives the parties Freedom to
Employment Conditions 6. d)

the point of hire, and free inland Stipulate, while Section 137 mandates the
a) Protection of OFWs; Lex Loci Contractus. Does transportation at the jobsite, or off- licensed recruitment agency to disclose the terms
the Labor Code and the IRRs cover a Filipino setting of benefits; and conditions of employment to the OFW.
working abroad?
7. Regular work hours and day off; e) Disability Benefits for Injury or Illness.
★ In Sameer Overseas Placement v. Cabiles8, the
Court declares, “Employees are not stripped of 8. Overtime pay for services rendered Maunlad Trans. Inc. v. Camoral 2015
their security of tenure when they move to work beyond the regular work hours, rest days
and holidays; Section 20 of POEA-SEC, which is deemed written
in a different jurisdiction. With respect to the
into the seafarer’s contract, provides for the minimum
rights of OFWs, we follow the principle of lex loci Vacation leave and sick leave for every
requirements before deployment of Filipino seafarers.
9.

contractus.” year of service;

The two elements required for an injury ro be
★ In Triple Eight Integrated Services v. NLRC 9, the 10. Fee emergency medical and dental compensable are:
Court emphasizes that, “lex loci contractus treatment;
The injury or illness is work-related, and
governs in this jurisdiction. There is no question
(a)

Just/valid/authorized causes for

It occurred during the term of the contract.
11.

that the contract of employment in this case was termination of the contract or of the
(b)

perfected here in the Philippines. Therefore, the services of the workers; Pertinent portions of Section 20 reads:
Labor Code, its IRRs, and other special labor laws
Considering the customs, traditions, 1. Seafarer is entitled to sickness allowance = basic
apply in this case.”
★

norms, mores, practices, company wage, until he is declared fit to work, or the
b) Minimum provisions of POEA-SEC (Standard policies and the labor laws and social degree of permanent disability has been
Employment Contract). As laid down in Sec 135 legislations of the host country. assessed by the company-designated physician
of the POEA Revised Rules and Regulations 2016: but in no case shall exceed 120 days.
12. Settlement of disputes;
Complete name and address of 2. He shall submit himself to a post employment
Repatriation of workers in case of
1.

employer; medical exam by a company-designated

13.

imminent danger due to war, calamity,

Position and jobsite of OFW; physician within 3 working days upon his
2.

and other analogous circumstances, at

return, except when he is physically
Basic monthly salary, including benefits the expense of the employer; and
incapacitated, a written notice to the agency is
3.

and allowances and mode of payment; In case of worker’s death, repatriation of

14.

deemed as compliance. Failure to do so means

★ Salary shall not be lower than: prescribed OFW’s human remains and personal waiver of such benefits.
minimum wage in the host country or belongings at the expense of employer.
If a doctor appointed by him disagrees with the
prevailing minimum wage in the NCR,
3.

findings of the company doctor, a third doctor

whichever is higher. The POEA may formulate country- or skills-
c)

may be agreed jointly by both, and his decision

4. Food and accommodation or the specific policies and guidelines based on the shall be final and binding to both parties.
monetary equivalent; following:
4. Those illnesses not listed in Section 32 are
8 GR No 170139, August 5, 2014 a) Existing labor and social laws of the host presumed as work-related.
9 359 Phil. 955 (1998) country;
 5. The employer shall bear cost for repatriation in to determine the fitness of the seafarer to work, physician, or, in case of absence of such a declaration
the event seafarer is during which the latter is deemed to be in state either of fitness or permanent total disability, upon the
of total and temporary disability; lapse of the 120- or 240-day treatment period, while the
fit for repatriation; or
employee’s disability continues and he is unable to
a.

The 120 days of total and temporary disability

fit to work but the employer is unable
b.

b.

may be extended by a maximum of 120 days, or engage in gainful employment during such period, and
to find employment for the seafarer the company-designated physician fails to arrive at a
up to 240 days, should the seafarer require
despite efforts. definite assessment of the employee’s fitness or
further treatment; &
In case of permanent total or partial disability, disability.
c. A total and temporary disability becomes
6.

the seafarer shall be compensated in

permanent when so declared by the company- h) Need for Definite Assessment within 120/240
accordance with the schedule of benefits
designated physician within 120 days or 240 days.
governed by the rates and rules applicable at
days (Art 192[c] LC), as the case may be, or
the time illness or injury was contracted. Belchem Philippines, Inc. v. Zafra 2015
upon the expiration of the said periods without
f) Permanent/Total Disability. declaration of either fitness to work or In Fil-Pride Shipping Company, Inc. vs. Balasta, the
permanent disability and the seafarer is still Court held that the company-designated doctor must
Maersk Filipinas Crewing, Inc. v. Mesina 2013 unable to resume his regular seafaring duties arrive at a definite assessment of the seafarer’s
(Sec 2[b], Rule VII AREC). condition within the period of 120 or 240 days, as per
Permanent disability is the inability of a worker to
perform his job for more than 120 days, regardless of Article 192(c)(1) of the LC and Rule XI, Section 2 of
According to Kestrel Shipping Co., Inc. v. Munar 10
AREC. Failure to do so and the seafarer’s condition
★

whether or not he loses the use of any part of his body. 2013, while the seafarer is partially injured or
remain unresolved, the latter shall be deemed
Total disability, on the other hand, means the disabled, he must not be precluded from earning
totally and permanently disabled.
disablement of an employee to earn wages in the same doing the same work he had before his injury or
kind of work of similar nature that he was trained for, disability or that he is accustomed or trained to In United Philippine Lines vs. Sibig and Magsaysay
or accustomed to perform, or any kind of work which a do. Otherwise, if his illness or disability prevents Maritime Corporation vs. Lobusta, the Court affirmed the
person of his mentality and attainments could do. It him from engaging in gainful employment for award of US$60K as permanent as permanent and total
does not require complete disability or total paralysis. It more than 120 days or 240 days, as in the case at disability benefits where after the lapse of 240 days
is considered permanent if it lasts continuously for more bar, then he is deemed totally and permanently there was no declaration issued by the company doctor.
than 120 days. disabled. In Carcedo vs. Maine Marine Philippines, Inc., the
11
In Crystal Shipping, Inc. v. Natividad , the Court seafarer was discharged from the hospital 137 days
An impediment should be characterized as partial ★

ruled that it is of no consequence that he after repatriation. He returned to the hospital 9 days
and permanent not only under the Schedule of
recovered, for what is important is that he was after for a check-up where the doctor noted the wound
Disabilities found in Sec 32 of POEA-SEC, but also in
unable to perform his customary work for more was still open and that the seafarer needed to continue
the Labor Code (Art 192[c][1]), and the Amended
than 120 days, and this constitutes permanent medication. The doctor had nearly 100 days within
Rules on Employment Compensation (AREC) (Sec
total disability. which to give the final disability assessment, yet gave
2[b], Rule VII) implementing Title II, Book IV of the
none. The Court concluded that:
Labor Code.
Alpha Ship Management Corporation v. Calo 2013 The company doctor failed to give a definitive
g) POEA-SEC, Labor Code, and AREC Harmonized.
impediment rating of Carcedo’s disability beyond
Vergara v. Hammonia Maritime Services, Inc. et al. An employee’s disability becomes permanent and the extended temporary disability period, after
total when so declared by the company-designated 120-day period but less than 240 days. By
a. The 120 days provided in Sec 20-B(3) of the operation of law, Cardcedo’s total and
POEA-SEC is the period given to the employer temporary disability lapsed into a total and
10 GR No 198501, January 30, 2013
11 GR No 154798, October 20, 2005
 k) Seafarer’s Protection; New Law Against m) Period to File OFW Claims. Art 291 of the Labor
permanent one. Ambulance Chasing. RA No 10706 or the Code provides for 3 years from the date of the
Seafarers Protection Act declares ambulance seafarer’s return to the point of hire. Sec 28 of
i) Third-doctor Referral
chasing a criminal offense. Elements are: POEA-SEC which only provides for one year was
Carcedo v. Maine Marine Philippines, Inc. 2015 declared null and void.
1) A person or his agent solicits from a
In Philippine Hammonia Ship Agency vs. Dumadag , 12 seafarer or his heirs, the pursuit of a Employment Conditions: Security of Tenure
the Court lamented: claim against the employer of the
a) Sec 17 of POEA-SEC: Disciplinary procedures.
seafarer;
The provision is intended to settle disability The following shall be complied by the Master
claims voluntarily at the parties’ level where the 2) Such claim is for the purpose of recovery against an erring seafarer:
claim can be resolved speedily than if they were of monetary award or benefits arising
There shall be a written notice
from accident, illness or death, including
i)

brought to court. containing the following:

interest; and
In INC Shipmanagement, Inc. vs. Rosales, we held 1) Grounds for the charges;
that: 3) The pursuit is in exchange of an amount
or fee which shall be retained or 2) Date, time and place for a
[Third-Doctor Referral Process] formal investigation.
deducted from the awarded or granted
benefit. ii) An investigation or hearing shall be
★ The total compensation of the person conducted that must be duly documented
representing the seafarer shall not exceed 10% of and entered into the ship’s logbook.
the monetary award. iii) Should a penalty be justified, the Master
l) Invalid Side Agreement. An agreement that shall issue a written notice of penalty
diminishes the employee’s pay and benefits is and its reason to the seafarer, with copies
void, unless such subsequent agreement is furnished to the PH agent.
j) Seafarer’s Death Benefit: Death Need Not Have
Occurred During Term of Employment approved by the POEA. iv) Dismissal without notice may be justified
Chavez v. Bonto-Perez, Rayala, et al if there is clear and existing danger to
C.F. Sharp Crew Management, Inc. v. Heirs of Repiso
the ship and crew. The Master shall send
2016
Petitioner, hired as an entertainer in Japan, entered a complete report to the manning agency
The claim for benefits is based on Sec 20(A) of the into a standard employment contract through a PH along with supporting documents as
1996 POEA-SEC: In the PH currency at the time of placement agency for 2-6 months, at a monthly wage of proof and evidence.
payment in the amount of US$50K + US$7K for every US$1.5K. The contract was approved by the POEA.
b) Illustrative case of Illegal Dismissal
child under 21, but not exceeding 4 children (thus, Thereafter, Chavez executed a side agreement with her
Japanese employer decreasing her wage to US$750 and Maersk-Filipinas Crewing, et al. v. Avestruz 2015
maximum of US$78K).
further deducting US$250 as manager’s commission.
The phrase “death of seafarer during the term of his A chief cook and the vessel’s captain had a heated
Soon after returning to PH, she sought to recover US$6K
contract” in Section 20(A)(1) of the 1996 POEA-SEC argument. On the same day, the cook was dismissed
as unpaid salary. The POEA dismissed the complaint
should not be strictly and literally construed to mean from service. Two days later, he disembarked to return
holding that the side agreement was valid.
that the seafarer’s death should have occurred during to the PH.
the term of his employment; it is enough that the work- The side agreement which reduced petitioner’s
The SC affirmed the finding of the CA that the cook
related injury or illness which eventually caused his wage is null and void for violating the POEA’s
was not afforded procedural due process for not
death occurred during the term of his employment. minimum employment standards, and for not having
observing the two notice rule.
been approved by the POEA.
12 GR No 194362, June 26, 2013
 c) Employment-at-will (EAW) may be valid in Congress reincorporated the annulled clause
that death or injury therein is considered to have been
Overseas Employment. EAW is a contract of through RA 10022 in 2010. SC reiterated in incurred or sustained in the course of or arose out of
employment that may be terminated with or Sameer Overseas Placement v. Cabiles 16 the her employment.
without cause. This is binding if freely and infirmity of such clause.
expressly stipulated in writing between the WON the Cuaresmas are entitled to monetary claims, by
f) Legal Interest Rate: 6% or 12%. The placement
foreign employer and the OFW. Termination way of benefits and damages, for the death of their
fee to be reimbursed should bear a 12% interest, daughter Jasmin.
should be in good faith. notwithstanding BSP Circular No 799 of 2013 that
YES. The Cuaresmas are entitled to moral damages,
GBMLT Manpower Services v. Malinao 2015 lowered the interest rate to 6% per annum. For which Becmen and White Falcon are jointly and
awards of salary of the unexpired portion of solidarily liable to pay, together with exemplary
The complainant signed an employment contract to employment contract, however, the 6% rate damages.
teach at Alemanya University in Ethiopia. The contract applies because the law did not provide for a The next inquiry is, should Jasmin's death be considered
was duly approved by the POEA. Article X of said specific interest rate. as work-connected and thus compensable? The evidence
contract provided for an EAW stipulation that gives indicates that it is not. At the time of her death, she was
g) Termination of employment of Seafarers.
three month notice to the other party should one party not on duty.
Sections 2 and 18 of DO No 4 and Memorandum
decide to terminate said contract without cause. Status The Court cannot subscribe to the idea that Jasmin
Circular No 09 Series of 2000 provide for the
quo shall be observed, i.e. employee shall still be fully committed suicide while halfway into her employment
Standard Terms and Conditions Governing the
engaged, and entitled to her salary and allowances for contract. The autopsy report of the Cabanatuan City
Employment of Filipino Workers on Board Ocean Health Officer and the exhumation report of the NBI
the 3-month period.
Going Vessels. In a nutshell, three (3) categorically and unqualifiedly show that Jasmin
The SC upheld the legitimacy of the termination requirements are necessary for the complete sustained external and internal injuries. These show
noting that the contract was legally binding between termination of the employment contract17: that Jasmin was manhandled - and possibly raped -
the parties and was exercised in good faith. prior to her death.
Due to expiration or other reasons/
Becmen and White Falcon, as licensed local recruitment
i)

causes;
agencies, miserably failed to abide by the provisions of
d) EAW not valid in Local Employment. In local ii) Signing off from the vessel; and R.A. 8042. Recruitment agencies are expected to
employment, the governing law is the security of Arrival at the point of hire. extend assistance to their deployed OFWs,
especially those in distress. Instead, they abandoned
iii)

tenure principle inscribed in the Constitution13

h) Domestic seafarer. Under Art 295, seafarers in Jasmin's case and allowed it to remain unsolved.
and in the Labor Code 14. One’s job is property
ocean-going vessels are contractual employees. Clearly, Rajab, Becmen and White Falcon's acts and
and no employee can be dismissed without valid
Domestic seafarers, on the other hand, are omissions are against public policy because they
cause allowed by law.
entitled to security-of-tenure, as reiterated in DO undermine and subvert the interest and general welfare
e) Pre-termination of Employment; Relief. Sec 10 No 231, June 7, 2013, and can become regular of our OFWs abroad, who are entitled to full protection
RA No 8042 entitled the employee to: employees. under the law.
Full reimbursement of his placement fee The grant of moral damages to the employee by reason
Becmen Service Exporter and Promotion Inc. v.
of misconduct on the part of the employer is sanctioned
i)

with 12% interest per annum; Cuaresma by Article 2219 (10) of the Civil Code, which allows
ii) His salaries for the unexpired portion of While the "employer's premises" may be defined very recovery of such damages in actions referred to in
his employment contract xxxx. broadly not only to include premises owned by it, but Article 21.
NB: The three-month salary option in Sec 10(2) also premises it leases, hires, supplies or uses, the
dormitory provided for by the employer should not Dagasdas v. Grand Placement & General Services Corp
was ruled unconstitutional in Serrano v. Gallant15. 2017
constitute employer's premises as would allow a finding
13 Sec 3(2) Art XIII. Our laws generally apply even to employment contracts
14 Art 294. 16 GR No 170139, August 5, 2014 Leonen En Banc of OFWs as our Constitution explicitly provides that the
15 601 Phil. 245 (2009) 17 Apo Ship Management Co. v. Casenas. GR No 197303, June 4, 2014
State shall afford full protection to labor, whether local Third, under this new contract, Dagasdas was not foreign principal/employer, i.e., the
or overseas. Thus, even if a Filipino is employed abroad, afforded procedural due process when he was recruitment/placement agency and its corporate
he or she is entitled to security of tenure, among other dismissed from work. He was simply given a notice of officers. As a result, the liability of SAENCO, as
constitutional rights. termination. In fact, it appears that ITM intended not to principal/employer, and petitioner PTCPI, as
WON Dagasdas was validly terminated from work. comply with the twin notice requirement. recruitment/placement agency, for the monetary
Lastly, while it is shown that Dagasdas executed a awards in favor of respondent, an illegally dismissed
NO. Security of tenure remains even if employees,
waiver in favor of his employer, the same does not employee, is joint and several. In turn, since petitioner
particularly the OFW, work in a different
preclude him from filing this suit. PTCPI is a juridical entity, petitioner Moldes, as its
jurisdiction. Since the employment contracts of OFWs
corporate officer, is herself jointly and solidarily liable
are perfected in the Philippines, and following the All told, the dismissal of Dagasdas was without any with petitioner PTCPI for respondent's monetary
principle of lex loci contractus, these contracts are valid cause and due process of law. Hence, the NLRC awards, regardless of whether she acted with malice or
governed by our laws, primarily the Labor Code of the properly ruled that Dagasdas was illegally dismissed. bad faith in dealing with respondent.
Philippines and its implementing rules and regulations,
At the same time, our laws generally apply even to Princess Talent Center Production Inc v. Masagca 2018 Augustin International Center v. Bartolome 2019
employment contracts of OFWs as our Constitution
explicitly provides that the State shall afford full Considering the explicit language of the second WON the LA had jurisdiction over the complaint.
protection to labor, whether local or overseas. Thus, paragraph of Section 10 of Republic Act No. 8042, the
joint and several liability of the principal/employer, YES. Section 10 of RA 8042, as amended by RA 10022,
even if a Filipino is employed abroad, he or she is explicitly provides that LAs have original and exclusive
entitled to security of tenure, among other recruitment/placement agency, and the corporate
officers of the latter, for the money claims and damages jurisdiction over claims arising out of employer-
constitutional rights. employee relations or by virtue of any law or contract
of an overseas Filipino worker is absolute and without
In this case, prior to his deployment and while still in qualification. involving Filipino workers for overseas deployment, as
the Philippines, Dagasdas was made to sign a POEA- in this case.
approved contract with GPGS, on behalf of ITM; and, WON only SAENCO should be answerable for
Settled is the rule that jurisdiction over the subject
upon arrival in Saudi Arabia, ITM made him sign a new respondent's illegal dismissal because petitioners were
matter is conferred by law and cannot be acquired or
employment contract. Nonetheless, this new contract, not privy to the extension of respondent's Employment
waived by agreement of the parties. As herein applied,
which was used as basis for dismissing Dagasdas, is Contract beyond the original six-month period.
the dispute settlement provision in respondents'
void. NO. Respondent's monetary claims against petitioners employment contracts cannot divest the LA of its
First, Dagasdas' new contract is in clear violation of his and SAENCO is governed by Section 10 of Republic Act jurisdiction over the illegal dismissal case. Hence, it
right to security of tenure. There is no clear justification No. 8042. The Court finds that respondent had been correctly took cognizance of the complaint filed by
for the dismissal of Dagasdas other than the exercise of paid her salaries for the nine months she worked in respondents before it.
ITM's right to terminate him within the probationary Ulsan, South Korea, so she is no longer entitled to an
WON AICI is liable for respondents' illegal dismissal.
period. The terms and conditions must not be contrary award of the same.
to law, morals, good customs, public order or policy. YES. Section 10 of RA 8042, as amended; expressly
Nonetheless, pursuant to the fifth paragraph of Section
The above-cited clause is contrary to law because as provides that a recruitment agency, such as AICI, is
10 of Republic Act No. 8042, respondent is entitled to
discussed, our Constitution guarantees that employees, solidarily liable with the foreign employer for money
an award of her salaries for the unexpired three months
local or overseas, are entitled to security of tenure. To claims arising out of the employee-employer
of her extended Employment Contract. The said
allow employers to reserve a right to terminate relationship between the latter and the OFW.
amount, similar to backwages, is subject to legal
employees without cause is violative of this guarantee interest of per annum from respondent's illegal Jurisprudence explains that this solidary liability is
of security of tenure. dismissal to the date this Decision becomes final and meant to assure the aggrieved worker of immediate and
Second, the new contract was not shown to have been executory. sufficient payment of what is due him, as well as to
processed through the POEA. Under our Labor Code, afford overseas workers an additional layer of
The joint and several liability of the
employers hiring OFWs may only do so through entities protection against foreign employers that tend to
principal/employer, recruitment/placement agency,
authorized by the SOLE. Unless the employment violate labor laws.
and the corporate officers of the latter, for the money
contract of an OFW is processed through the POEA, the claims and damages of an OFW is absolute and without Aldovino et al. v. Gold & Green Manpower Management
same does not bind the concerned OFW. qualification. TheOFW is given the right to seek
& Development Services 2019 Leonen, J
recourse against the only link in the country to the
The clause "or for three (3) months for every year of the amended by Republic Act No. 10022 in 2010. is unconstitutional.
unexpired term, whichever is less" as reinstated in
Section 7 of Republic Act No. 10022 is unconstitutional, Putting a cap on the money claims of certain overseas
workers does not increase the standard of protection 10. Security guards
and has no force and effect of law. It violates due
process as it deprives overseas workers of their afforded to them. On the other hand, foreign employers ➔ see DOLE DO No. 150-16, S. 2016 (Revised
monetary claims without any discernible valid purpose. are more incentivized by the reinstated clause to enter Guidelines Governing the Employment and
into contracts of at least a year because it gives them
WON petitioners are entitled to the payment of their more flexibility to violate our overseas workers' rights. Working Conditions of Security Guards and other
salaries for the unexpired portion of their employment Their liability for arbitrarily terminating overseas Private Security Personnel in the Private Security
contract. Subsumed under this is the issue of whether or workers is decreased at the expense of the workers Industry);
not Section 7 of Republic Act No. 10022, which reinstated whose rights they violated.
the three (3)-month cap, has the force and effect of law. ➔ see DOLE Labor Advisory No. 15, S. 2019 dated
A statute declared unconstitutional "confers no rights; it
YES. In Serrano, this Court ruled that the clause "or for December 27, 2019, Clarificatory Guidelines on
imposes no duties; it affords no protection; it creates no
three (3) months for every year of the unexpired term, office; it is inoperative as if it has not been passed at DOLE DO No. 150, S. 2016;
whichever is less" under Section 10 of the Migrant all." Incorporating a similarly worded provision in a ➔ RA 5487 (Private Security Agency Law)
Workers and Overseas Filipinos Act is unconstitutional subsequent legislation does not cure its
for violating the equal protection and substantive due unconstitutionality. As such, we reiterate our ruling in ➔ see also DOLE Labor Advisory No. 01, S. 2014
process clauses. Sameer that the reinstated clause in Section 7 of for Contracting Arrangement Time & Interval of
Later, however, this clause was kept when the law was Republic Act No. 10022 has no force and effect of law. It Payment of Wages.

Summary of Special Benefits

Name of Benefit Source Provision Requirement for availment Beneficiary Exemptions and Exclusions

13th month pay PD 851 as amended Equivalent to 1/12 of the Worked for at least 1 month 1. Rank-and-file employees 1. Government;
total basic salary earned during a calendar year 2. Domestic helpers 2. Already paying 13th
16 Dec, 1975 Batas Kasambahay, RA within a calendar year, to be 3. Piece-rate employees month pay or its
10361, IRR paid not later than Dec 24. equivalent;
3. In the personal service of
another;
4. Commission- based,
boundary or task basis,
paid by result.

Paternity Leave RA 8187. Paternity Leave Entitled to full pay, consisting An employee; Married male employee,
Act of 1996 of basic salary, for the 7 days Cohabiting with spouse; provided he is, during delivery
Published on June of paternity leave, for up to Has applied for PL; or miscarriage:
20, 1996 IRR the first four (4) deliveries. Legitimate spouse gave birth
or had a miscarriage.

Maternity Leave RA 11210. 105-Day one hundred five (105) Cannot be deferred but Female employee;
Expanded Maternity Leave days maternity leave with full should be availed of either in case the worker qualifies as
Law pay and an option to extend before or after the actual a solo parent the worker
for an additional thirty (30) period of delivery in a shall be granted an additional
IRR days without pay continuous and fifteen (15) days maternity
uninterrupted manner, not leave with full pay.
 exceeding one hundred five
(105) days

RA 8552. Domestic Same benefits as that of If the adoptee is below 7 Adoptive parents
Adoption Act of 1998 biological parents years old as of date he is
placed in Pre-Adoptive
Placement Authority

Retirement Pay Art 302[287] One-half month salary for Optional Age: 60; All employees in private National Gov, LGCs, GOCCs
every year of service that Compulsory: 65 sector; under Civil Service Law;
includes: 2. 5 year minimum service; Part-timers; 2. Retail, service, agri
1. 15 days latest salary rate; Eligible for retirement; Employees of service and establishments regularly
and if entitled to other job contractors; employing not more than
RA 10757 on Surface Mine Cash equivalent of service Optional: 50; Kasambahays or persons in 10.
Workers incentive leave = 5 days; Compulsory: 60. the personal service of Dismissed from work due to
3. 1/12 of the 13th month pay = another; just cause.
RA 10789 on Racehorse 2.5 days; Underground mine workers;
Compulsory: 55.
Jockeys Employees in GOCCs
1/2MS = 15+5+2.5 = 22.5 organized under Corp Code.
days
Parental Leave RA 8972. Solo Parent Parental leave of not more 1. Has rendered service for at Solo parent, or other person
Welfare Act than 7 days every year. least 1 year; who solely provides parental
Notified employer; care and support to a child or
IRR Flexible work schedule; Presented a Solo Parent ID. children.

Protection from work Please see list below.

discrimination.

Senior Citizens RA 9994, Expanded Senior Citizens Act of 2010 and its IRR

Persons with RA 10524, amending Magna Carta for Persons with Disability and its IRR
Disabilities

Battered Woman’s RA 9262. VAWC 10 days of paid leave, which Certification from Punong Victims of abuse under VAWC
Leave is extendible. brgy, Prosecutor or Clerk of
Court.

Gynecological RA 9710. Magna Carta of Special leave of 2 months Continuous aggregate service Female employee undergoing
Leave Women with full pay based on gross of at least 6 months for the gynecological surgery.
monthly compensation. last 12 months.

Nursing RA 10028, Expanded Breastfeeding Promotion Act of 2009

Employees IRR, DOLE DO 143-15

IV. POST-EMPLOYMENT
A. Employer-employee relationship

1. Tests to determine existence

2. Legitimate subcontracting as distinguished from labor-only contracting

a. Elements

b. Trilateral relationship

c. Liabilities

3. Kinds of employment

a. Regular

b. Casual

c. Contractual

d. Project

e. Seasonal

f. Fixed-term

g. Probationary; private school teachers

B. Termination by employer

1. Requisites for validity

a. Substantive due process

i. Just causes

ii. Authorized causes

b. Procedural due process

2. Preventive suspension

3. Illegal dismissal

a. Kinds

i. No just or authorized cause

ii. Constructive dismissal

(a) Burden of proof

(b) Liability of officers

 (c) Reliefs from illegal dismissal

4. Money claims arising from employer-employee relationship

5. When not deemed dismissed; employee on floating status

C. Termination by employee

1. With notice to the employer

2. Without notice to the employer

3. Distinguish voluntary resignation and constructive dismissal

D. Retirement

Concept of Employer/Employee A. Employer-employee relationship Control over

Means
✔ ✔ ✘
In labor standards
It is in personam and involves the rendition of
"Employer" includes any person acting directly or personal service by the employee, and partakes of Control over
Results
✔ ✔ ✔
indirectly in the interest of an employer in relation to master and servant relationship.
an employee and shall include the government and all Its existence is a question of law and fact. Its
Liability Subsidiary Solidary Subsidiary
its branches, subdivisions and instrumentalities, all determination is important to ascertain if the Labor
GOCCs and institutions, as well as non-profit private Code is to be applied in settling the issues and Personality of
disputes between the parties. If indeed there is an ER- Natural Any Any
institutions, or organizations. (Art 97[b]) EE
EE relationship, the Labor Code applies and the Labor
"Employee" includes any individual employed by an Tribunals have jurisdiction. Otherwise, the case goes Act of
employer. (Art 97[c]) to regular courts applying other laws, i.e. the Civil subordinate
Code. an act of
✘ ✔ ✘
In labor relations
Substantial evidence is sufficient in establishing the Master
"Employer" includes any person acting in the interest existence of ER-EE Relationship.
1. On perfection of employment contract and
of an employer, directly or indirectly. The term shall ER-EE Relationship Distinguished from Other
commencement of ER-EE relationship
not include any labor organization or any of its Relationships
officers or agents except when acting as employer. a. They are not the same.
Principal
(Art 219[212](e)) Employer Principal
Contracto b. An employment contract is consensual in
Employee Agent
"Employee" includes any person in the employ of an r nature and is perfected upon meeting of
employer. The term shall not be limited to the the minds.
Law LC CC CC
employees of a particular employer, unless the Code c. Commencement of ER-EE relationship
so explicitly states. It shall include any individual Tribunal LA, NLRC Regular Regular occurs when the four-fold test is duly
whose work has ceased as a result of or in connection met.
Selection ER PR PR
with any current labor dispute or because of any
unfair labor practice if he has not obtained any other Discipline ✔ ✔ ✘
substantially equivalent and regular employment.
(Art 219[212](f)) Wages ✔ ✔ ✔
 2. In the 2016 Century Properties case, SC said that Depends upon the circumstances of the whole economic
the employment status of a person is defined and activity: The payment of respondents' wages based on the
prescribed by law and not by what the parties percentage share of the fish catch would not be
1. The broad extent to which the services performed sufficient to negate the employer-employee relationship
say it should be. It can not be negated by are an integral part of the employer’s existing between them.
expressly repudiating it in a contract. business.
Petitioner wielded the power of dismissal over
3. In the 2011 Tongko case, SC aptly described the 2. The limited extent of the worker’s investment in respondents when he dismissed them after they refused
primary and controlling test in determining the the equipment and facilities. to sign the joint fishing venture agreement.
existence of an ER-EE relationship as the control 3. The nature and high degree of control by the Reyes v. Doctolero 2017
over the performance of the task of the one employer;
providing the service. Vicarious liability is applicable only if there is an
4. The worker’s limited opportunities for profit and employer-employee relationship. This employer-
4. Laws that expressly NEGATE existence of ER-EE growth; employee relationship cannot be presumed but must be
rel: sufficiently proven by the plaintiff.
5. The small amount of initiative, skill, judgment or
a. Real Estate Service Act; foresight required for the success of the claimed In Mamaril v. The Boy Scout of the Philippines, we found
b. 1994 Dual-Training System Act; independent enterprise; that there was no employer-employee relationship
between Boy Scouts of the Philippines (BSP) and the
c. RA 10869, Job-Start PH Act; 6. The high degree of permanency and duration of security guards assigned to it by an agency pursuant to
relationship; a Guard Service Contract. In the absence of such
1. Tests to determine existence relationship, vicarious liability under Article 2180 of the
7. The degree of dependency of the worker upon
The Four-Fold Test the employer for his continued employment. Civil Code cannot apply as against BSP. Similarly, we
find no employer-employee relationship between MCS
1. Selection and Engagement of employees; How to determine? and respondent guards. The guards were merely
2. Payment of Wages; 1. Number of years in the company; assigned by Grandeur to secure MCS' premises
3. Power of Dismissal; pursuant to their Contract of Guard Services. Thus, MCS
2. Reported to SSS (a good indicator of treatment as cannot be held vicariously liable for damages caused by
4. ⭐ Power of Control over employee’s conduct and employee); these guards' acts or omissions.
over the means, manner and method by which the
work is to be accomplished. 3. Registered in the payroll; Loreche-Amit v. Cagayan De Oro Medical Center 2019
Whether the employer controls or has reserved 4. ID;
ECONOMIC REALITY TEST; The benchmark of
the right to control the employee not only as to 5. Company uniform. economic reality in analyzing possible employment
the result of the work done but also as to the
relationships for purposes of applying the Labor Code
means and methods by which the same is to be This test is used when there is no existing employment
ought to be the economic dependence of the worker on
accomplished. contract. his employer.
Economic Reality Test (Two-Tiered Test) Lu v. Enopia 2017
WON Loreche-Amit was an employee of CDMC.
(see 2006 Francisco case) The fact that petitioner had registered the respondents NO. CDMC, through the Board of Directors, exercised
1. The putative employer’s power to control the with SSS is proof that they were indeed his employees. the power to select and supervise petitioner as the
The coverage of the Social Security Law is predicated on Pathologist. It must be emphasized that petitioner was
employee with respect to the manner and
the existence of an employer-employee relationship. appointed as Pathologist with a term of five years. She
methods by which the work is to be
accomplished; and It was established that petitioner exercised control over was likewise paid compensation which is at 4% of the
respondents. It should be remembered that the control gross receipts of the Clinical Section of the laboratory.
2. The underlying economic realities of the activity test merely calls for the existence of the right to However, CDMC does not exercise the power of control
or relationship, i.e. employee’s economic control, and not necessarily the exercise thereof. over petitioner.
dependence on the employer.
 "Labor-only contracting" — refers to an arrangement
Petitioner was working for two other hospitals aside petitioner. These are sufficient to prove that petitioner where the contractor or subcontractor merely recruits,
from CDMC, not to mention those other hospitals which was engaged by Kalookan Slaughterhouse. supplies or places workers to perform a job or work for a
she caters to when her services are needed. Such fact
Kalookan Slaughterhouse, through Tablit, was the one principal, and the elements hereunder are present.
evinces that petitioner controls her working hours. On
who engaged petitioner, paid for his salaries, and in
this note, relevant is the economic reality test which Labor-only contracting, which is totally prohibited,
effect had the power to dismiss him. Further, Kalookan
this Court has adopted in determining the existence of refers to an arrangement where:
Slaughterhouse exercised control over petitioner's
employer-employee relationship.
conduct through De Guzman. To the mind of the Court, a)
Thus, the fact that petitioner continued to work for Kalookan Slaughterhouse was petitioner's employer
other hospitals strengthens the proposition that and it exercised its rights as an employer through Tablit i) The contractor or subcontractor does
petitioner was not wholly dependent on CDMC. and De Guzman, who were its employees. not have substantial capital, OR
Petitioner likewise admitted that she receives in full her ii) The contractor or subcontractor does not
4% share in the Clinical Section of the hospital
2. Legitimate subcontracting as distinguished
from labor-only contracting have investments in the form of tools,
regardless of the number of hours she worked therein.
equipment, machineries, supervision,
The rule is that ART 106. Contractor or Subcontractor. —
work premises, among others, AND
a. where a person who works for another Whenever an employer enters into a contract with
b. performs his job more or less at his own another person for the performance of the former's iii) The contractor's or subcontractor's
pleasure, work, the employees of the contractor and of the employees recruited and placed are
c. in the manner he sees fit, latter's subcontractor, if any, shall be paid in performing activities which are directly
accordance with the provisions of this Code. related to the main business operation
d. not subject to definite hours or conditions of
work, and of the principal; OR
In the event that the contractor or subcontractor fails
e. is compensated according to the result of his to pay the wages of his employees, the employer shall b) The contractor or subcontractor does not
efforts and not the amount thereof, be jointly and severally liable with his contractor exercise the right to control over the
no employer-employee relationship exists. or subcontractor to such employees to the extent of performance of the work of the employee.
the work performed under the contract, in the same "Substantial capital" — refers to paid-up capital
Fernandez v. Kalookan Slaughterhouse 2019
manner and extent that he is liable to employees stock/shares at least P5M in the case of corporations,
It is common practice for companies to provide directly employed by him. partnerships and cooperatives; in the case of single
identification cards to individuals not only as a security
see DO No. 174 s. 2017 proprietorship, a net worth of at least P5M.
measure, but more importantly to identify the bearers
thereof as bona fide employees of the firm or institution Permissible Contracting or Subcontracting
a. Elements
that issued them. Arrangements
There is "labor-only" contracting where the person
WON Fernandez was an employee of Kalookan
supplying workers to an employer Contracting or subcontracting shall only be ALLOWED if
Slaughterhouse.
all the following circumstances concur:
YES. The Court in Masonic Contractor, Inc. v. Madjos 1. does not have substantial capital or investment
ruled that the fact that the company provided in the form of tools, equipment, machineries, a) The contractor or subcontractor is engaged in a
identification cards and uniforms and the vague work premises, among others, and distinct and independent business and
affidavit of the purported employer were sufficient undertakes to perform the job or work on its own
evidence to prove the existence of employer-employee 2. the workers recruited and placed by such person
responsibility, according to its own manner and
relationship. are performing activities which are directly
method;
related to the principal business of such
Further, petitioner was able to submit an I.D. in addition
employer. b) The contractor or subcontractor has substantial
to the gate passes. The trip ticket and the log sheets also
showed that Kalookan Slaughterhouse engaged capital to carry out the job farmed out by the
 principal on his account, manner and method, 3. Principal’s liability is comprehensive — all
investment in the form of tools, equipment, liabilities under labor laws, not only to unpaid desired result — which in this case is the sale of NPI
machinery and supervision; wages. products to the end consumer.

c) In performing the work farmed out, the Scope and nature of liability of principal and Thus, the foregoing circumstances show that ODSI was
not a labor only contractor of NPI; hence, the latter
contractor or subcontractor is free from the contractor; duties and obligations
cannot be deemed the true employer of respondents. As
control and/or direction of the principal in all When Principal is Deemed the Direct Employer of a consequence, NPI cannot be held jointly and severally
matters connected with the performance of the the Contractor's or Subcontractor's Employees. — liable to ODSI's monetary obligations towards
work except as to the result thereto; and In the event that there is a finding that the contractor respondents.

d) The Service Agreement ensures compliance with or subcontractor is engaged in labor-only contracting Valencia v. Classique Vinyl Products Corp 2017
all the rights and benefits for all the employees of under Section 5 and other illicit forms of employment
arrangements under Section 6 of these Rules, the WON Valencia is an employee of CMS and not Classique
the contractor or subcontractor under the labor Vinyl.
laws. principal shall be deemed the direct employer of the
contractor's or subcontractor's employees. YES. Valencia's selection and engagement was
b. Trilateral relationship undertaken by CMS and conversely, this negates the
Solidary Liability. — In the event of violation of any existence of such element insofar as Classique Vinyl is
Trilateral Relationship in Contracting Arrangements. provision of the Labor Code, including the failure to concerned.
— In legitimate contracting, there exists a trilateral pay wages, there exists a solidary liability on the part
Here, to prove that CMS was a legitimate contractor,
relationship under which there is a contract for a specific of the principal and the contractor for purposes of Classique Vinyl presented the former's Certificate of
job, work or service between the principal and the enforcing the provisions of the Labor Code and other Registration with the DTI and license as a private
contractor or subcontractor, and a contract of social legislations, to the extent of the work recruitment and placement agency from the DOLE.
employment between the contractor or subcontractor and performed under the employment contract. Indeed, these documents are not conclusive evidence of
its workers. Hence, there are three parties involved in the status of CMS as a contractor. However, such fact of
Nestle Philippines Inc. v. Puedan, Jr 2017 registration of CMS prevented the legal presumption of
these arrangements,
it being a mere labor-only contractor from arising.
WON ODSI is a labor-only contractor of NPI, and
1. the principal which decides to farm out a job or The facts of this case, however, failed to establish that
consequently, NPI is respondents' true employer and,
service to a contractor or subcontractor, thus, deemed jointly and severally liable with ODSI for there is any circumvention of labor laws as to call for
2. the contractor or subcontractor which has the respondents' monetary claims. the creation by the statute of an employer-employee
relationship between Classique Vinyl and Valencia.
capacity to independently undertake the NO. A closer examination of the Distributorship
performance of the job, work or service, and Agreement reveals that the relationship of NPI and Mago et al., v. Sunpower Manufacturing Ltd. 2018
ODSI is not that of a principal and a contractor, but that
3. the contractual workers engaged by the of a seller and a buyer/re-seller. Therefore, the reselling A contractor is presumed to be a labor-only contractor,
contractor or subcontractor to accomplish the job activities allegedly performed by the respondents unless the contractor is able to discharge the burden of
work or service. properly pertain to ODSI, whose principal business overcoming this presumption.
consists of the "buying, selling, distributing, and WON Jobcrest is a legitimate and independent
c. Liabilities marketing goods and commodities of every kind" and contractor.
Effects of Labor-only Contracting "entering into all kinds of contracts for the acquisition
of such goods and commodities." YES. In order to become a legitimate contractor, the
1. Principal is deemed direct employer of contractor
The stipulations in the Distributorship Agreement do
contractor’s employees; 1. must have substantial capital or investment,
not operate to control or fix the methodology on how
2. Contractor will be treated as agent of principal; ODSI should do its business as a distributor of NPI and
products, but merely provide rules of conduct or 2. must carry a distinct and independent business
guidelines towards the achievement of a mutually free from the control of the principal.
Furthermore, the Court considers job contracting or used in reaching that end. subscribed capital stock in the amount of P5M, P3.5M of
subcontracting as permissible when the principal which had already been paid-up.
The fact that the petitioners were working within the
agrees to farm out the performance of a specific job,
premises of Sunpower, by itself, does not negate NLRC correctly gave credence to CBMI's claim that it
work or service to the contractor, for a definite or
Jobcrest's control over the means, method, and result of retained control over respondents, as shown by the
predetermined period of time, regardless of whether
the petitioners' work. The petitioners, despite working deployment of at least one (1) CBMI supervisor in each
such job, work, or service is to be performed or
in Sunpower's plant for most of the time, admit that Pizza Hut branch to regularly oversee, monitor, and
completed within or outside the premises of the
whenever they file their leave application, or whenever supervise the employees' attendance and performance.
principal.
required by their supervisors in Jobcrest, they report to
The existence of the element of control can also be
Since the petitioners do not dispute that Jobcrest was a the Jobcrest office. Designated on-site supervisors from
inferred from CBMI's act of subjecting respondents to
duly-registered contractor under Section 11 of DOLE Jobcrest were the ones who oversaw the performance
disciplinary sanctions for violations of company rules
DO No. 18-02, there is no operative presumption that of the employees' work within the premises of
and regulations as evidenced by the various Offense
Jobcrest is a labor-only contractor. Sunpower.
Notices and Memoranda issued to them.
Conversely, the fact of registration with DOLE does not Abuda et al., v. L. Natividad Poultry Farms 2018 Leonen Lastly, the NLRC correctly found that no employer-
necessarily create a presumption that Jobcrest is a
employee relationship exists between PPI and
legitimate and independent contractor. The Court WON the maintenance personnel in L. Natividad Poultry
respondents, and that the latter were employees of
emphasizes, however, that the DOLE Certificate of Farms can be considered as its regular employees.
CBMI. Records reveal that respondents applied for work
Registration issued in favor of Jobcrest is presumed to
have been issued in the regular performance of official YES. San Mateo and petitioner Del Remedios were not with CBMI and were consequently selected and hired by
independent contractors but labor-only contractors the latter.
duty. The petitioners must overcome the presumption
of regularity accorded to the official act of DOLE, which since they did not have substantial investment in the
form of tools, equipment, or work premises. As labor- Lingnam Restaurant v. Skills & Talent Employment
is no less than the agency primarily tasked with the
only contractors, they were considered to be agents of 2018
regulation of job contracting.
respondent L. Natividad.
Jobcrest has substantial capital. The legitimate job contractor provides services, while
A careful review of petitioners' activity as maintenance the labor-only contractor provides only manpower.
The records show that as early as the proceedings personnel and of the entirety of respondents' business The legitimate job contractor undertakes to perform a
before the LA, Jobcrest established that it had an convinces this Court that they performed activities specific job for the principal employer, while the labor-
authorized capital stock of Php 8M, Php 2M of which which were necessary and desirable to respondents' only contractor merely provides the personnel to work
was subscribed, and a paid-up capital stock of Php business of poultry and livestock production. for the principal employer.
500K, in full compliance with Section 13 of the
Corporation Code. This is notably more than the Phil. Pizza Inc., v. Porras 2018 WON STEP is engaged in labor-only contracting; hence,
required capital under DOLE DO No. 18-A. petitioner Lingnam Restaurant is the employer of
Although not a conclusive proof of legitimacy, the complainant-respondent Jessie Colaste and it is liable for
Evidently, Jobcrest had substantial capital to perform certification by the DOLE nonetheless prevents the Colaste's illegal dismissal.
the business process services it provided Sunpower. It presumption of labor-only contracting from arising. It
has its own office, to which the petitioners admittedly gives rise to a disputable presumption that the YES. Respondent STEP was engaged in labor-only
reported to, possessed numerous assets for the conduct contractor's operations are legitimate. contracting.
of its business, and even continuously earned profit as a STEP merely acted as a placement agency providing
result. CBMI is a legitimate job contractor, and consequently,
the employer of respondents. As the NLRC aptly pointed manpower to petitioner Lingnam Restaurant. The
Sunpower does not control the manner by which the out, CBMI is presumed to have complied with all the service rendered by STEP in favor of Lingnam
petitioners accomplished their work. requirements of a legitimate job contractor, considering Restaurant was not the performance of a specific job,
the Certificates of Registration issued to it by the DOLE. but the supply of personnel.
The "right to control" shall refer to the right reserved
to the person for whom the services of the contractual CBMI has substantial capital and investment. Based The work performance of Colaste is under the strict
workers are performed, to determine not only the end on CBMI's 2012 General Information Sheet, it has an supervision and control of the client as well as the end
to be achieved, but also the manner and means to be authorized capital stock in the amount of P10M and result thereof. As assistant cook of Lingnam Restaurant,
Colaste's work is directly related to the restaurant
 in the usual business or trade of the employer. A regular
business of petitioner. He works in petitioner's employees of CCBPI notwithstanding the fact that they employee may either be:
restaurant and presumably under the supervision of its were transferred to agencies while working for CCBPI.
Chief Cook. This falls under the definition of labor-only a) Permanent. One who has an indefinite
WON MDTC is an independent contractor and employers employment, whether passing the probationary
contracting.
of petitioners.
As respondent STEP is engaged in labor-only stage or not; or
NO. CCBPI's contention that MDTC was a legitimate
contracting, the principal, Lingnam Restaurant shall be b) Probationary
labor contractor and was the actual employer of
deemed the employer of Jessie Colaste. Colaste started
petitioners does not hold water. Two kinds of regular employees
working with petitioner since 2006 and he should be
considered a regular employee of petitioner. a) By the nature of their work. Usually necessary or
3. Kinds of employment
Lingat v. Coca-Cola Bottlers Phils, Inc. 2018 desirable in the usual trade or business of an
ARTICLE 295. Regular and Casual Employment. — The
employer.
To determine whether one is an independent provisions of written agreement to the contrary
contractor, the possession of substantial capital is only notwithstanding and regardless of the oral agreement b) By the length of service. Have rendered at least 1
one element. It is necessary to prove not only of the parties, an employment shall be deemed to be year of service whether continuous or not.
substantial capital or investment in tools, equipment, regular where the employee has been engaged to
perform activities which are usually necessary or TEST of regularity. Reasonable connection between the
work premises, among others, but also that the work of
the employee is directly related to the work that desirable in the usual business or trade of the particular activity performed by the employee in relation
contractor is required to perform for the principal. employer, except to the employer.

WON petitioners were regular employees of CCBPI. a) where the employment has been fixed for a NB: Repeated rehiring of a job for a fixed period and
specific project or undertaking the completion the continuing need for an employee’s service are
YES. Petitioners' duties were reasonably connected to or termination of which has been determined
the very business of CCBPI. They were indispensable to sufficient evidence of the necessity and
at the time of the engagement of the employee
such business because without them the products of indispensability of an EE’s service to the ER’s
or
CCBPI would not reach its customers. trade or business.
b) where the work or service to be performed is
Petitioners have worked for CCBPI since 1993 and 1996 seasonal in nature and the employment is for Lu v. Enopia 2017
until the non-renewal of their contracts in 2005. Aside the duration of the season.
from the fact that their work involved the distribution The primary standard for determining regular
and sale of the products of CCBPI, they remained to be An employment shall be deemed to be casual if it is not employment is the reasonable connection between the
working for CCBPI despite having been transferred covered by the preceding paragraph: particular activity performed by the employee in
from one agency to another. Hence, such repeated re- relation to the usual trade or business of the employer.
Provided, That any employee who has rendered at least
hiring of petitioners, and the performance of the same Respondents' jobs as fishermen-crew members of F/B
one year of service, whether such service is
tasks for CCBPI established the necessity and the MG 28 were directly related and necessary to
continuous or broken, shall be considered a regular
indispensability of their activities in its business. In petitioner's deep-sea fishing business and they had
employee with respect to the activity in which he is
addition, in Pacquing v. Coca-Cola Philippines, Inc., the been performing their job for more than one year.
employed and his employment shall continue while
Court ruled that the sales route helpers of CCBPI were such activity exists. As respondents were petitioner's regular employees,
its regular employees. In this case, petitioners had they are entitled to security of tenure under Section 3,
similarly undertook to bring CCBPI's products to its Article XIII of the 1987 Constitution.
customers at their delivery points. a. Regular
Considering that respondents were petitioner's regular
Furthermore, in Quintanar v. Coca-Cola Bottlers, Employment is regular where the employee has been
employees, the latter's act of asking them to sign the
Philippines, Inc., therein route helpers, like petitioners, engaged to perform activities which are joint fishing venture agreement which provides that the
were tasked to distribute CCBPI's products and were venture shall be for a period of one year from the date
a) Usually necessary or
likewise successively transferred to agencies after of the agreement, subject to renewal upon mutual
having been initially employed by CCBPI. The Court b) Desirable agreement of the parties, and may be pre-terminated by
decreed therein that said helpers were regular any of the parties before the expiration of the one-year
period, is violative of the former's security of tenure. and masonry work. was performing activities necessary or desirable in its
And respondents' termination based on their refusal to usual business or trade for without his services, its
sign the same, not being shown to be one of those just Expedition Construction Corp. v. Africa 2017 fundamental purpose of delivering bills cannot be
causes for termination under Article 282, is, therefore, accomplished. On this basis alone, the law deems
Respondents were regular employees of Expedition.
illegal. Geraldo as a regular employee of the company. But even
Expedition hired respondents as dump truck drivers considering that he is not a full time employee as the
UST v. Samahang Manggagawa ng UST 2017 and paid them the amount of P620.00 per trip. company insists, the law still deems his employment as
Expedition wielded the power to dismiss respondents regular due to the fact that he had been performing the
WON the CA correctly ruled that Pontesor, et al. are
based on Expedition's admission that when the dispatch activities for more than one year. He has been
regular employees and, consequently, were illegally
of drivers became irregular, it tried to accommodate delivering mail matters for the company for more than
dismissed by petitioner.
them by giving trips when the need arose. The control fourteen (14) years.
YES. The law provides for two (2) types of regular test was likewise established because Expedition
While length of time may not be the controlling test to
employees, namely: determined how, where, and when respondents would
determine if an employee is indeed a regular employee,
perform their tasks.
1. those who are engaged to perform activities it is vital in establishing if he was hired to perform tasks
which are usually necessary or desirable in First, respondents were engaged/hired by Expedition as which are necessary and indispensable to the usual
the usual business or trade of the employer garbage truck drivers. Second, respondents received business or trade of the employer.
(first category); and compensation from Expedition for the services that
The Court, moreover, cannot subscribe to the
2. those who have rendered at least one year of they rendered to the latter. The fact that respondents
company's contention that Geraldo is not a regular
service, whether continuous or broken, with were paid on a per trip basis is irrelevant in
employee but merely a piece-rate worker since his
respect to the activity in which they are determining the existence of an employer-employee
salary depends on the number of bills he is able to
employed (second category). relationship because this was merely the method of
deliver. In Gamboa, Jr. v. Villegas, We held that the
computing the proper compensation due to
Here, petitioner repeatedly rehired respondents for payment on a piece-rate basis does not negate regular
respondents. Third, Expedition's power to dismiss was
various positions in the nature of maintenance workers, employment. Payment by the piece is just a method
apparent when work was withheld from respondents as
for various periods spanning the years 1990-1999. Akin of compensation and does not define the essence of
a result of the termination of the contracts with Quezon
to the situation of the employees in Kimberly, Pontesor, the relations.
City and Caloocan City. Finally, Expedition has the
et al.'s nature of work are not necessary and desirable power of control over respondents in the performance
to petitioner's usual business as an educational of their work. b. Casual
institution; hence, removing them from the ambit of the An employee is considered casual if:
first category of regular employees under Article 295 of Respondents were neither independent contractors nor
the Labor Code. Nonetheless, it is clear that their project employees. There was no showing that a) Employed to perform work merely incidental to
respective cumulative periods of employment exceed respondents have substantial capital or investment and the trade or business of employer;
one (1) year. Thus, Pontesor, et al. fall under the that they were performing activities which were not
second category of regular employees. Accordingly, directly related to Expedition's business to be qualified b) Employment is for a definite period;
they should be deemed as regular employees but only as independent contractors. There was likewise no
c) Employment status was made known at the time
with respect to the activities for which they were hired written contract that can prove that respondents were
project employees and that the duration and scope of of engagement.
and for as long as such activities exist.
such employment were specified at the time If employed for a continuous or broken period of at
Pontesor, et al. were not project employees of respondents were engaged. Therefore, respondents
petitioner, who were validly terminated upon the least 1 year, he is deemed regular but only with
should be accorded the presumption of regular
completion of their respective projects/undertakings. respect to the activity he is employed and as long as
employment.
The specific undertakings or projects for which they such activity exists. The status of being regular casual
were employed were not clearly delineated. This is Gerardo v. Bill Sender Corp. 2018 is coterminous to the existence of the activity. There
evidenced by the vagueness of the project descriptions is no security of tenure for casual employees.
set forth in their respective CEAs, which states that they WON Geraldo was a regular employee of respondent.
were tasked "to assist" in various carpentry, electrical, YES. The company cannot deny the fact that Geraldo The term "at least one-year service" shall mean
service for not less than 12 months, whether
 continuous or broken reckoned from the date the months after the next project, the employee is a project
automatically terminated, there being no mutually-
employee started working, including authorized agreed renewal or extension of the expired contract. and not regular. (Alcatel PH v. Relos)
absences and paid regular holidays unless the
However, petitioner is entitled to be paid his wages However, if the employee is successively re-engaged to
working days in the establishment as a matter of after the expiration of his contract until the vessel's perform the same kind of work not intermittently, but
practice or policy, or that provided in the employment arrival at a convenient port. Section 19 of the Standard continuously, contract after contract, month after
contract is less than 12 months, in which case said Terms and Conditions Governing the Employment of month involving the same task indicates the necessity and
period shall be considered as one year. (Sec 3 Rule V Filipino Seafarers On-Board Ocean-Going Vessels is
clear on this. desirability of the work in the usual business of the
Book III Omnibus Rules)
company. (Manalo v. TNS Phil. 2014)
c. Contractual Exceptions to regular employment TWO TYPES of Project EEs
Millares v. NLRC clarifying that seafarers are a) Project; a) A particular job WITHIN the regular or usual
contractual employees business of ER but is DISTINCT and SEPARATE,
b) Seasonal; and
Seafarers are considered contractual employees. They and IDENTIFIABLE as such from the undertakings
can not be considered as regular employees under c) Fixed Term. of the company; e.g. construction jobs in hotel.
Article 280 of the Labor Code. Their employment is d. Project b) A particular job NOT WITHIN the regular or usual
governed by the contracts they sign everytime they are
rehired and their employment is terminated when the Where employment has been fixed for a specific business of ER but is DISTINCT and SEPARATE,
contract expires. Their employment is contractually project or undertaking, the completion of which has and IDENTIFIABLE from the ordinary or regular
fixed for a certain period of time. They fall under the been determined at the time of engagement of EE. business operations of ER. e.g. school cafeteria.
exception of Article 280 whose employment has been
Elements are as follows: E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc
fixed for a specific project or undertaking the
completion or termination of which has been a) employment has been fixed for a specific The decisive determinant in project employment is
determined at the time of engagement of the employee project or undertaking; AND the activity that the employee is called upon to
or where the work or services to be performed is perform. Prior notice of termination is not part of
seasonal in nature and the employment is for the b) the completion or termination of which has
procedural due process if the termination is brought
duration of the season. been determined at the time of engagement about by the completion of the contract or phase
It is an accepted maritime industry practice that of EE. thereof for which the project employee was engaged.
employment of seafarers are for a fixed period only. Specific project or undertaking is an activity which WON Ando was a regular employee and was thereby
Constrained by the nature of their employment which is is NOT commonly or habitually performed or such illegally dismissed by EGI.
quite peculiar and unique in itself, it is for the mutual
interest of both the seafarer and the employer why the type of work which is not done on a daily basis, but NO. The activities of project employees may or may not
employment status must be contractual only or for a only for a specific duration of time until the be usually necessary or desirable in the usual business
certain period of time. Seafarers spend most of their completion of the project. or trade of the employer. In ALU-TUCP v. NLRC, two (2)
time at sea and understandably, they can not stay for a categories of project employees were distinguished:
When project EE deemed regular?
long and an indefinite period of time at sea.
Firstly, a project could refer to a particular job or
a) When there is continuous rehiring even after undertaking that is within the regular or usual
Unica v. ANSCOR Swire Ship Management 2014
cessation of a project; business of the employer company, but which is
It is a settled rule that seafarers are considered b) When the tasks performed by the alleged project distinct and separate, and identifiable as such, from
contractual employees. Their employment is governed the other undertakings of the company. Such job or
EE are vital, necessary and indispensable to the undertaking begins and ends at determined or
by the contracts they sign everytime they are rehired
and their employment is terminated when the contract usual business or trade of ER. determinable times. The typical example of this
expires. Their employment is contractually fixed for a While there was repeated re-hiring, the hiring was NOT, first type of project is a particular construction job
certain period of time. Thus, when the petitioner's or project of a construction company.
however, continuous, as in fact there was a lapse of 33
contract ended on such date, his employment is deemed
 Secondly, a particular job or undertaking that is not employees. inventory and consequently hire a number of
within the regular business of the corporation. Such permanent employees.
WON respondents are regular employees of petitioner
a job or undertaking must also be identifiably
and not project employees. Innodata Knowledge Services v. Inting 2017
separate and distinct from the ordinary or regular
business operations of the employer. NO. The services of project-based employees are In order to safeguard the rights of workers against the
In this case, the three project employment contracts coterminous with the project and may be terminated arbitrary use of the word "project" which prevents
signed by Ando explicitly stipulated the agreement "to upon the end or completion of the project or a phase them from attaining regular status, employers claiming
engage his services as a Project Worker." thereof for which they were hired. that their workers are project employees have the
It is crucial that the employees were informed of their burden of showing that:
There was no attempt to frustrate Ando's security of
tenure. His employment was for a specific project or status as project employees at the time of hiring and a) the duration and scope of the employment was
undertaking because the nature of EGI's business is one that the period of their employment must be knowingly specified at the time they were engaged; and
which will not allow it to employ workers for an and voluntarily agreed upon by the parties, without any
b) there was indeed a project.
indefinite period. force, duress, or improper pressure being brought to
bear upon the employees or any other circumstances An employer may validly put its employees on forced
Ando's tenure as a project employee remained definite vitiating their consent. leave or floating status upon bona fide suspension of
because there was certainty of completion or the operation of its business for a period not exceeding
termination of the Bahay Pamulinawen and the West Here, for each and every project respondents were six (6) months. In such a case, there is no termination of
Insula Projects. The project employment contracts hired, they were adequately informed of their the employment of the employees, but only a temporary
sufficiently apprised him that his security of tenure with employment status as project-based employees at least displacement. When the suspension of the business
EGI would only last as long as the specific projects he at the time they signed their employment contract. operations, however, exceeds six (6) months, then the
was assigned to were subsisting. When the projects Performance by project-based employees of tasks employment of the employees would be deemed
were completed, he was validly terminated from necessary and desirable to the usual business operation terminated, and the employer would be held liable for
employment since his engagement was coterminous of the employer will not automatically result in their the same.
thereto. regularization. Here, while the tasks assigned to the WON respondent employees, as mere project employees,
The fact that Ando was required to render services respondents were indeed necessary and desirable in were validly placed on floating status and, therefore,
necessary or desirable in the operation of EGI's the usual business of Herma Shipyard, the same were were validly dismissed.
business for more than a year does not in any way distinct, separate, and identifiable from the other
impair the validity of his project employment contracts. projects or contract services. NO. The employment status of a person is defined and
The rehiring of construction workers on a project-to- prescribed by law and not by what the parties say it
The rule that employees initially hired on a temporary
project basis does not confer upon them regular should be.
basis may become permanent employees by reason of
employment status as it is only dictated by the practical their length of service is not applicable to project-based Here, while IKSI was able to show the presence of a
consideration that experienced construction workers employees. specific project, the ACT Project, in the contract and the
are more preferred. alleged duration of the same, it failed to prove, however,
In Mercado Sr. v. NLRC, this court ruled that the
that respondents were in reality made to work only for
Herma Shipyard Inc. v. Oliveros 2017 proviso in the second paragraph of Article 280,
that specific project indicated in their employment
providing that an employee who has served for at least
The principal test in determining whether particular documents and that it adequately informed them of the
one year, shall be considered a regular employee,
employees were engaged as project-based employees, duration and scope of said project at the time their
relates only to casual employees and not to project
as distinguished from regular employees, is whether services were engaged.
employees.
they were assigned to carry out a specific project or The fact is IKSI actually hired respondents to work, not
undertaking, the duration and scope of which was Indeed, if we consider the nature of Herma Shipyard's
only on the ACT Project, but on other similar projects
specified at, and made known to them, at the time of business, it is clear that Herma Shipyard only hires
such as the Bloomberg. When respondents were
their engagement. workers when it has existing contracts for
required to work on the Bloomberg project, without
shipbuilding and repair. It is not engaged in the
Repeated rehiring of project employees to different signing a new contract for that purpose, it was already
business of building vessels for sale which would
projects does not ipso facto make them regular outside of the scope of the particular undertaking for
require it to continuously construct vessels for its
 Notwithstanding the stipulations in an employment f. Fixed-term
which they were hired; it was beyond the scope of their
contract or a duly negotiated CBA, the employment EE performing work that is usually necessary and
employment contracts. The fact that the same happened
status of an employee is ultimately determined by desirable in the business of ER wherein the
only once is inconsequential. What matters is that IKSI
law.
required respondents to work on a project which was employment contract stipulates the duration or term
separate and distinct from the one they had signed up WON URSUMCO's regular seasonal employees are of employment.
for. This act by IKSI indubitably brought respondents regular employees.
outside the realm of the project employees Not permanent, but EE still enjoys security of tenure
category. YES. When it comes to the employment status itself of during the pre-determined term.
the concerned employees, the CBA is subservient to
what the law says their employment status is. Term employment should not circumvent security of
e. Seasonal
tenure. This is shown by the criteria laid by the
Seasonal employment becomes regular seasonal
Employment is for the duration of a certain season. BRENT DOCTRINE:
employment when the employees are called to work
1. They are considered regular EEs if called to work from time to time. On the other hand, those who are a) Must not be entered merely to circumvent the
from time to time, during off-season and are employed only for a single season remain as seasonal EE’s right to security of tenure;
merely considered as on leave of absence without employees. As a consequence of regular seasonal
employment, the employees are not considered b) The fixed period was knowingly and
pay until they are reemployed.
separated from service during the off-milling season, voluntarily agreed upon without any force,
2. If EE has worked only for 1 season, he is not but are only temporarily laid off or on leave until re- duress or improper pressure and absent any
regular. employed. Nonetheless, in both regular seasonal
other circumstances vitiating consent;
employment and seasonal employment, the employee
3. Enjoys security of tenure within the duration of performs no work during the off-milling season. c) Must satisfactorily appear that the ER and EE
the season. dealt with each other on more or less equal
Here, the concerned URSUMCO employees are
4. Their employment is never terminated but performing work for URSUMCO even during the off- terms with no moral dominance exercised by
merely suspended. milling season as they are repeatedly engaged to the former to the latter.
conduct repairs on the machineries and equipment.
Requisites for SEASONAL undertaking Strictly speaking, they cannot be classified either as Why allow fixed term employment?
a) Dependent on climatic or natural causes. regular seasonal employees or seasonal employees as It is an essential and natural appurtenance recognized by
their work extended even beyond the milling season.
Operations must be limited to a regular, annual, SC. i.e.
The nature of the activities performed by the
or recurring part/s of each year and regularly employees, considering the employer's nature of a) Overseas workers;
closes during the remainder of the year. business, and the duration and scope of work to be
b) College Deans and Department Heads.
done factor heavily in determining the nature of
b) Activity is agricultural where the crops are
employment. What determines term employment?
available only at certain times of the year.
It cannot be gainsaid that the conduct of repairs on The decisive determinant should not be the activities
Regular Seasonal EEs refer to seasonal EEs who are URSUMCO's machineries and equipment is reasonably the EE is called upon to perform, but the day certain
hired season after season. necessary and desirable in its sugar milling business. It
agreed upon for the commencement and termination
is unreasonable to limit only to activities pertaining to
Deep sea fishing business is not a seasonal undertaking. of the employment relationship.
the actual milling process as those necessary in
Catching fish is not seasonal especially where the boat URSUMCO's usual trade or business. E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc
crew, although employed on a per trip basis, has been
working for 12 years. (Poseidon Fishing v. NLRC) Project employment should not be confused and
interchanged with fixed-term employment: While the
Universal Robina Sugar Milling Corp v. Nagkahiusang former requires a project as restrictively defined above,
Mamumuo sa Ursumco-NFL 2018 the duration of a fixed-term employment agreed upon
by the parties may be any day certain, which is
 NOTES to consider regarding probationary c. Proby NOT informed of the standards required to
understood to be "that which must necessarily come
although it may not be known when." employment qualify as regular EE;
The decisive determinant in fixed-term 1. The ceiling is 6 months. It can be shortened by d. EE successfully passes the period of probation.
employment is not the activity that the employee is agreement. The adequate performance of such duties and
called upon to perform but the day certain agreed upon
by the parties for the commencement and 2. If the employee is not apprised of the responsibilities constitute the inherent and implied
termination of the employment relationship. The STANDARDS that he must meet in order to hurdle standard for regularization. (Abbott Laboratories v.
decisive determinant in project employment is the probation, then he is deemed regular after 6 Alcaraz 2014 En Banc Resolution)
activity that the employee is called upon to perform. months. When probationer informed of required standards
g. Probationary; private school teachers 3. Period of probation is for the benefit of both ER Ideally, employers should immediately inform a
and EE. probationary employee of the standards for his
A probationary employee is one, who, for a given
4. Limited security of tenure which means a proby regularization from day one. However strict
period of time, is being observed and evaluated to
cannot be terminated within the period except for compliance is not required. The true test of
determine whether or not he is qualified for a
cause. compliance is one of reasonableness. As long as he
permanent position (Pasamba v. NLRC)
5. The computation of the 6 month period of is given a reasonable time and opportunity to be made
ARTICLE 296. Probationary Employment. — probation is reckoned from the date of fully aware of what is expected of him during the
Probationary employment shall not exceed six (6) appointment up to the same calendar date of the early phases of the period, the law is met.
months from the date the employee started working, (Enchanted Kingdom v. Verzo 2015)
unless it is covered by an apprenticeship agreement 6th month following.
stipulating a longer period. The services of an employee 6. Reasonable standards When probation permissible
who has been engaged on a probationary basis may be a. Work requires special qualifications, skills,
terminated for a just cause or when he fails to qualify as a. Work initiative
training or experience;
a regular employee in accordance with reasonable b. Quality of work
standards made known by the employer to the b. Work, job or position involved is permanent,
employee at the time of his engagement. An employee c. Discipline
regular, stable or indefinite, and not merely
who is allowed to work after a probationary period Limitations to termination of probationary EE casual or intermittent;
shall be considered a regular employee.
a. Must be exercised in accordance with contract; c. Work is not intended to circumvent the right to
One who is placed in a trial period whose performance is b. Must be within prescribed time and form; security of tenure of EE;
assessed whether satisfactory or not. Duration is generally d. Necessary or customary to the position or job
c. Employer’s dissatisfaction must be real and in
6 months except involved.
good faith, not feigned so as to circumvent the
a) Covered by an apprenticeship agreement contract or the law; When probation may exceed 6 months
stipulating a longer period;
d. There must be no unlawful discrimination. When the parties agree otherwise, such as when the
b) Manual of regulations of private schools which same is established by company policy or when the
When probationary EE considered regular?
provide for a longer period. same is required by the nature of work as where one
a. Allowed to continue work beyond probationary
i. Elementary and Secondary. Not more must learn a particular kind of work such as selling, or
period;
than 3 years of satisfactory service; when the job requires certain qualifications, skills,
b. NO evaluation conducted and no basis for experience or training.
ii. Tertiary. Not more than 6 semesters or
termination; presumed to have been satisfactorily
9 trimesters of satisfactory service. Where the extension of employee’s probation was ex
complied;
gratia, an act of liberality on the part of his employer
 to afford the employee a second chance to make good a. Teaching
after having initially failed to prove his worth as an agreements, but has yet to provide evidence to support
b. Non-teaching
employee. (Mariwasa v. Leogardo, Jr.) such claim. Therefore, Article 281 of the Labor Code
finds no application in this case, absent any evidence to 2. Non-academic
Umali v. Hobbywing Solutions Inc. 2018 prove that petitioner worked beyond his probationary
employment. CHED MC 40-2008 or the Manual of Regulations for
The general rule remains that an employee who was Private Higher Education of 2008;
suffered to work for more than the legal period of six
(6) months of probationary employment or less shall, Special Laws on Period of Probation DepEd Order 88-2010 or the 2010 Revised Manual
by operation of law, become a regular employee. 1. RA 10869 (JobStart Trainee) of Regulations for Private Schools in Basic
WON Umali was terminated without cause when she was Education.
A JobStart trainee shall no longer be required to
informed that the period of her probationary undergo a probationary period at the end of the Legal REQUISITES for a Teacher to be Permanent
employment had already ended and her services were no
longer needed. internship phase should the trainee be hired in a) Full time;
the same establishment upon completion of the
YES. The contracts were only made up to create a b) Must have rendered 3 consecutive years of
program:
semblance of legality in the employment and severance service;
of the petitioner. Unfortunately for the respondent, the Provided, That said trainee also completed his or
c) Such service must be satisfactory.
significant details left unexplained only validated the her technical training within the training plan
petitioner's claim that she had served way beyond the prepared by the same participating employer. A FULL TIME academic personnel or technology teacher
allowable period for probationary employment and meets ALL the following:
therefore has attained the status of regular Three (3) Phases
employment. a) Possesses at least the minimum academic
a) JobStart Life Skills Training. 10 days
qualifications;
Petitioner commenced working for the respondent on with one life skill taught each day;
June 19, 2012 until February 18, 2013. By that time, b) Paid monthly or hourly, based on regular teaching
however, she has already become a regular employee. b) JobStart Technical Training. Up to 3
loads;
months and is optional.
Apelanio v. Arcanys, Inc. 2018 c) Total working day of not more than 8 hours a day
c) JobStart Internship. Up to 3 months or
is devoted to the school;
An employer may unilaterally prepare an employment 600 hours.
contract, stating the terms and conditions required of a d) No other remunerative occupation elsewhere
potential employee, and that a potential employee had 2. RA 10917 amending RA 9547, 7323 or SPES
requiring regular hours of work that will conflict
only to adhere to it by signing it. Such contract is known Act;
with the working hours in the school;
as a contract of adhesion, which is allowed by law albeit Period of employment shall be from twenty (20)
construed in favor of the employee in case of ambiguity. e) Not teaching full-time in other educational
to seventy-eight (78) working days only, except
institutions.
WON Apelanio was illegally dismissed by Arcanys. that during Christmas vacation, employment shall
be from ten (10) to fifteen (15) days which may Absent one requirement, considered PART TIME. Only a
NO. It cannot be denied that in the retainership
agreements provided by petitioner, his signature or be counted as part of the students’ FULL TIME teacher can acquire REGULAR status.
"adherence" is notably absent. As a result, said probationary period should they apply in the Son v. UST 2018
retainership agreements remain ineffectual and cannot
same company or agency after graduation.
be used as evidence against respondents. In University of the East v. Pepanio, the requirement of
3. RA 11261 (First Time Jobseekers Assistance a masteral degree for tertiary education teachers was
Furthermore, a review of the retainership agreements
Act) approved on April 10, 2019 held to be not unreasonable but rather in accord with
indicates that petitioner was merely engaged as a
the public interest.
consultant, in relation to the hacking incidents endured Personnel in Private Educational Institution
by respondents. Petitioner merely alleged that he was Thus, going by the requirements of law, it is plain to see
hired as an employee under said retainership 1. Academic that petitioners are not qualified to teach in the
 undergraduate programs of UST. the trust reposed in him by his employer or misconduct.
duly authorized representative;
From a strict legal viewpoint, the parties are both in YES. The charge of serious misconduct is duly
violation of the law: respondents, for maintaining d) Commission of a crime or offense by the substantiated by the evidence on record.
professors without the mandated masteral degrees, and employee against the person of his employer or
any immediate member of his family or his duly In de La Cruz v. NLRC, the dismissed employee shouted,
for petitioners, agreeing to be employed despite
authorized representatives; and "Sayang ang pagka-professional mo!" and "Putang ina
knowledge of their lack of the necessary qualifications.
mo" at the company physician when the latter refused
Petitioners cannot therefore insist to be employed by e) Other causes analogous to the foregoing. to give him a referral slip.
UST since they still do not possess the required master's
degrees; the fact that UST continues to hire and Likewise, in Autobus Workers' Union (AWU) v. NLRC,
maintain professors without the necessary master's Serious Misconduct the dismissed employee told his supervisor "Gago ka"
degrees is not a ground for claiming illegal dismissal, or and taunted the latter by saying, "Bakit anong gusto mo,
even reinstatement. As far as the law is concerned, 1. There must be misconduct; tang ina mo."
respondents are in violation of the CHED regulations for 2. The misconduct must be of such grave and Moreover, in Asian Design and Manufacturing
continuing the practice of hiring unqualified teaching Corporation v. Deputy Minister of Labor, the
personnel; but the law cannot come to the aid of aggravated character; dismissed employee made false and malicious
petitioners on this sole ground. As between the parties 3. It must relate to the performance of the statements against the foreman (his superior).
herein, they are in pari delicto.
employee's duties; AND In Reynolds Philippines Corporation v. Eslava, the
dismissed employee circulated several letters to the
4. There must be showing that the employee members of the company's board of directors calling
B. Termination by employer
becomes unfit to continue working for the the executive vice-president and general manager a "big
1. Requisites for validity employer. (Sec 5.2[a]. Rule I-A. Book VI) fool," "anti-Filipino".
The General Requirements in dismissing an employee Misconduct is improper or wrong conduct. It is a Hence, it is well-settled that accusatory and
inflammatory language used by an employee
a) Substantive — Just or Authorized Causes; transgression of some established and definite rule of
towards his employer or superior can be a ground
action, a forbidden act, a dereliction of duty, willful in for dismissal or termination.
b) Procedural — Twin Notice + Ample character and implies wrongful intent and not merely Further, Esponga's assailed conduct was related to his
Opportunity to Be Heard and Defend. (Sec 5. error in judgment. It must be in connection with the work. Vinoya did not prohibit him from taking a nap.
Rule I-A. Book VI. Omnibus Rules) EE’s work to constitute just cause for his separation. She merely reminded him that he could not do so on the
sheeter machine for safety reasons. Esponga's acts
a. Substantive due process TIP Teachers and Employees Org v. CA reflect an unwillingness to comply with reasonable
i. Just causes Serious Misconduct of a Teacher. Grade tampering management directives.
and sale of test papers without prior approval from Finally, Esponga was motivated by wrongful intent. He
ARTICLE 297. Termination by Employer. — An school as required by school policy is serious committed all these acts in front of his co-employees,
employer may terminate an employment for any of the misconduct. which evidently showed that he intended to disrespect
following causes: and humiliate his supervisor.
Sterling Paper Products Enterprises v. KMM-Katipunan
a) Serious misconduct or willful 2017
disobedience by the employee of the lawful Willful Disobedience or Insubordination
orders of his employer or representative in The utterance of obscene, insulting or offensive words 1. There must be disobedience or insubordination;
connection with his work; against a superior is not only destructive of the morale
of his co-employees and a violation of the company 2. The disobedience or insubordination must be
b) Gross and habitual neglect by the rules and regulations, but also constitutes gross willful or intentional characterized by a wrongful
employee of his duties; misconduct. and perverse attitude;
c) Fraud or willful breach by the employee of WON Esponga was validly dismissed for serious
 3. The order violated must be reasonable, lawful,
and made known to the employee; and reprimand for his arrival after the expiration of shore willful disobedience of the lawful orders of Red System.
leave. It was also indicated that he refused to sign the
4. The order must pertain to the duties which he has Red System was not remiss in reminding its drivers of
receipt of the written reprimand, and that he was
the importance of abiding by their safety regulations. To
been engaged to discharge. (Sec 5.2[b]. Rule I-A. warned of immediate dismissal if he refused to sign the
ensure a strict observance of the rules, the company
Book VI) logbook entry. From the foregoing, it can be logically
required its drivers to attend various safety seminars, in
concluded that Chua's dismissal was contemplated only
When there is WANTON disregard to follow the lawful addition to a mandated pre-employment orientation.
after his refusal to sign the logbook entry.
orders of the ER which includes company rules and Notably, Mamaril violated Red System's safety rules
As far as proving Chua's alleged arguing and
regulations of discipline. It must be willful and twice, and caused damage amounting to over Php
misbehaving upon his return from shore leave is
intentional. 40,000.00. To make matters worse, he even deliberately
concerned, this Court finds that the logbook entry is
and willfully concealed his transgressions. Such flagrant
WILLFUL is characterized by a wrongful perverse self-serving and uncorroborated.
violation of the rules, coupled with the perversity of
mental attitude rendering the EE’s act inconsistent By virtue of the POEA-SEC, Chua is indeed bound to concealing the incidents, patently show a wrongful and
with proper subordination. obey the lawful commands of the captain of the ship, perverse mental attitude rendering Mamaril 's acts
but only as long as these pertain to his duties.The CA inconsistent with proper subordination. Indubitably,
Insubordination refers to the refusal to obey some correctly opined that there is no relevance to the order this shows that Mamaril was indeed guilty of willful
order, which a superior is entitled to give and have to sign the documents in Chua's performance of his duty disobedience of Red System's lawful orders.
obeyed. It is a willful or intentional disregard of the as a seaman.
lawful and reasonable instructions of the employer. To amount to a valid dismissal, an erring seafarer must Gross and Habitual Neglect of Duty
(Sec 4[l]. Rule I-A. Book VI) be handed a written notice of the charge against him 1. There must be neglect of duty; and
and must be given the opportunity to explain himself —
The ORDER of the ER must be: unless, of course, there is a clear and existing danger 2. The negligence must be both gross and habitual in
a. Reasonable and lawful; against the safety of the crew or the vessel in which character. (Sec 5.2[c]. Rule I-A. Book VI)
case notice may be dispensed with. In this case, no
b. Sufficiently known to the EE; AND hearing was conducted respecting Chua's alleged Gross Neglect refers to the absence of that diligence
c. In connection with the duties of the EE. insubordination. The pieces of evidence presented were that an ordinary prudent man would use in his/her
also silent about whether Chua was given the own affairs. (Sec 4[j]. Rule I-A. Book VI)
opportunity to explain or defend himself. There was
Apacible v. Multimed Industries 2011 also no showing of imminent danger to the crew or the Habitual Neglect refers to repeated failure to
Apacible was dismissed for wilfully disobeying the vessel, so that the required notice may be dispensed perform one's duties over a period of time, depending
lawful order of her ER to transfer from Cebu to Pasig. with. upon the circumstances. (Sec 4[k]. Rule I-A. Book VI)
Her adamant refusal, coupled with her failure to heed Mamaril v. Red System Company 2018 GR: Neglect of duty must be BOTH Gross and
the order for her return of the company vehicle, and Habitual.
allowing her counsel to write harsh-worded letters to An employee's tenurial security shall not be used as a
her superiors show that she was guilty of shield to force the hand of an employer to maintain a EXC: Even if NOT habitual, but there is SUBSTANTIAL
insubordination. recalcitrant employee, whose continued employment is DAMAGE or injury to the ER.
patently inimical to the employer's interest.
Transglobal Maritime Agency v. Chua 2017 Accordingly, an employee who is found to be willfully
Fuentes v. NLRC
disobedient of the employer's lawful and reasonable
There must be reasonable proportionality between, on The bank teller left a deposited amount unattended in a
rules and regulations may be dismissed from service.
the one hand, the willful disobedience by the employee counter when the SOP requires them to put the money
and, on the other hand, the penalty imposed therefor. WON Mamaril was illegally dismissed by Red System, and in a safe place resulting in the loss of money.
is consequently entitled to reinstatement and full Even though it was only one incident, the exception
WON Chua was validly dismissed for insubordination.
backwages; and was applied here since the amount of P50K was
NO. A perusal of the General Reporting on the ship's SUBSTANTIAL.
NO. Mamaril was validly dismissed on account of his
logbook reveals that Chua was penalized with a written
Alaska Milk v. Ponce 2017 (Sec 4[n]. Rule I-A. Book VI)
The employer must adduce proof of actual involvement
WON Ponce was guilty of gross and habitual neglect of Requisites of Fraud in the alleged misconduct for loss of trust and
duties. confidence to warrant the dismissal of fiduciary rank-
1. There must be an act, omission, or and-file employees. However, mere existence of a basis
NO. Neglect of duty, to be a ground for dismissal, must concealment; for believing that the employee has breached the trust
be both gross and habitual. Gross negligence implies a and confidence of the employer is sufficient for
want or absence of or failure to exercise even slight care 2. The act, omission or concealment involves a
managerial employees.
or diligence, or the entire absence of care. It evinces a breach of legal duty, trust, or confidence justly
thoughtless disregard of consequences without reposed; WON Bravo was properly dismissed for a just cause
exerting any effort to avoid them. Habitual neglect
3. It must be committed against the employer or YES. Petitioner's act in assigning to himself a higher
implies repeated failure to perform one's duties for a
his/her representative; and salary rate without proper authorization is a clear
period of time, depending upon the circumstances.
breach of the trust and confidence reposed in him. In
Fault cannot rest upon Ponce's shoulders alone, 4. It must be in connection with the employees' addition, there was no reason for the Comptroller's
inasmuch as satisfactory completion of the assigned work. (Sec 5.2[d]. Rule I-A. Book VI) Office to undertake the preparation of its own summary
tasks was subject to an interplay of factors beyond his table because this was a function that exclusively
Requisites of Breach of Trust pertained to the Human Resources Department.
sole control. AMC proffered nothing beyond bare
allegations to prove that failure to implement the 1. The employee holds a position of trust and
projects/improvements was occasioned by gross Panaligan v. Phyvita Enterprises 2017
confidence;
neglect on the part of Ponce. The fact that Ponce
2. There exists an act justifying the loss of trust and WON there exists just and valid cause for the termination
admitted to having been delayed in some of the tasks
of PANALIGAN, et al.'s, employment by PHYVITA.
assigned to him does not establish gross and habitual confidence;
neglect of duties. NO. PHYVITA failed to adduce substantial evidence that
3. The employee’s breach must be willful;
would clearly demonstrate that PANALIGAN, et al., have
Fraud or Willful Breach of Trust 4. The act must be in relation to his work which committed serious misconduct or have performed
would render him unfit to continue. actions that would warrant the loss of trust and
Fraud refers to any act, omission, or concealment confidence reposed upon them by their employer. The
which involves a breach of legal duty, trust or Requisites of Loss of Confidence records of this case clearly indicate that no direct
confidence justly reposed, and is injurious to another. 1. There must be an act, omission or concealment; evidence was presented to link PANALIGAN, et al., to
the theft that they allegedly committed.
(Sec 4[i]. Rule I-A. Book VI)
2. The act, omission or concealment justifies the
Taking into consideration the fact that the DOLE-NCR
Loss of Confidence refers to a condition arising from loss of trust and confidence of the employer to the
conducted an inspection of the respondent's premises
fraud or willful breach of trust by an employee of the employee; on as a result of the labor complaint filed by
trust reposed in him by his employer or his duly PANALIGAN, et al., and they were implicated in the
3. The employee concerned must be holding a
authorized representative. alleged theft incident only thereafter, a reasonable
position of trust and confidence;
inference can be made that PANALIGAN, et al.'s,
There are two (2) classes of positions of trust. 4. The loss of trust and confidence should not be termination of employment may have been indeed a
a. The first class consists of managerial simulated; retaliatory measure designed to coerce them into
withdrawing their complaint for underpayment of
employees, or those vested with the power to 5. It should not be used as a subterfuge for causes wages and nonpayment of other labor standard
lay down management policies; and which are improper, illegal, or unjustified; and benefits. Such an act is proscribed by Article 118 of the
b. The second class consists of cashiers, Labor Code.
6. It must be genuine and not a mere afterthought
auditors, property custodians or those who, to justify an earlier action taken in bad faith. (Sec Alaska Milk v. Ponce 2017
in the normal and routine exercise of their 5.2[e]. Rule I-A. Book VI)
functions, regularly handle significant WON Ponce can be terminated for loss of trust and
Bravo v. Urios College 2017 Leonen, J confidence.
amounts of money or property.
 YES. As regards a managerial employee, the mere due dates and that no evidence was presented showing Second, it is rather obvious to the Court that the act of
existence of a basis for believing that such employee has that her failure to deposit the checks resulted from the transferring the aforementioned staggering amount
breached the trust of his employer would suffice for his request of debtors, a more thorough and circumspect from the Special Accounts to cover the company's
dismissal. Hence, in the case of managerial employees, review of the records reveals that the task of depositing Operating Expenses, without the knowledge and
proof beyond reasonable doubt is not required, it being checks on due dates definitely falls within Aluag's scope consent of the Board of Directors, and in direct
sufficient that there is some basis for such loss of of responsibilities. It is also well to note that she was contravention of FILSCAP's Distribution Rules is
confidence, such as when the employer has reasonable not given any discretion to determine whether or not to sufficient reason for the loss of trust and confidence in
ground to believe that the employee concerned is deposit the checks. Gaite.
responsible for the purported misconduct, and the
Under these circumstances, BIRMPC had ample reason It bears stressing that as managerial employee, Gaite
nature of his participation therein renders him
to lose the trust and confidence it reposed upon her could be terminated on the ground of loss of confidence
unworthy of the trust and confidence demanded by his
and thereby, terminate her employment. by mere existence of a basis for believing that she
position.
had breached the trust of her employer.
It is undisputed that Ponce held the position of Director Gaite v. Filipino Society of Composers 2018
for Engineering Services and that he was in charge of Commission of a Crime
WON Gaite was validly dismissed due to loss of trust and
managing AMC's Engineering Department. Hence, he
confidence. By the employee against the person of his employer
belongs to the first class of employees who occupy a
position of trust and confidence. YES. Here, the Notice of Termination shows that or his immediate family or authorized
FILSCAP terminated Gaite's employment due to the fact representatives
The Court rules that his dismissal from employment is
that her actuations constituted serious misconduct and
justified. First, The opening sentence of Ponce's R/A e- 1. There must be an act or omission
caused loss of trust and confidence in her as General
mail readily exposes the attendant willfulness in his act.
Manager of the company. punishable/prohibited by law; and
Second, the act of soliciting receipts from colleagues
constitutes dishonesty, inimical to AMC's interests, for The Court finds that Gaite's actuations constitute 2. The act or omission was committed by the
the simple reason that Ponce would be collecting serious misconduct. First, not only is the amount employee against the person of
receipted allowance from expenses he did not actually involved herein a staggering amount of P17.7M, the
incur. Third, the R/A e-mail betrays a truly sinister alleged reallocation violated an express provision of the a. employer,
purpose which AMC had a right to guard against. company's Distribution Rules and was accomplished b. any immediate member of his/her family,
without the knowledge, consent, or authorization of the
In the case of The Coca-Cola Export Corporation v. or
Board. Second, Gaite committed said transfer in the
Gacayan, it was ruled that willful submission by a
performance of her duties as General Manager of c. his/her duly authorized representative.
senior financial accountant of tampered or altered
FILSCAP. Third, because of this grave infraction causing (Sec 5.2[f]. Rule I-A. Book VI)
receipts to support claims for meal reimbursement was
the depletion of the company's Special Accounts held in
an act that justified dismissal from employment, as See DOLE DO 147-2015, CHED MC 40-2008, DepEd
trust for the rightful copyright owners, Gaite's ability to
submission of fraudulent items of expense adversely
duly perform and accomplish her duties and Order 88-2010.
reflected on the employee's integrity and honesty and is
responsibilities as General Manager has been seriously Just Causes for Academic Personnel
ample basis for petitioner company to lose its trust and
put into question. It is clear, therefore, that Gaite's acts
confidence. In the Tertiary Level
amounted to serious misconduct warranting her
Aluag v. BIR Multi-Purpose Cooperative 2017 dismissal. a. Grave misconduct
On the second ground for termination, the Court finds i. Giving of grades not based solely on
WON BIRMPC had just cause to terminate Aluag's
that FILSCAP validly terminated Gaite's employment on scholastic performance;
employment.
the ground of loss of trust and confidence. First, there
YES. One of the infractions that BIRMPC cited in is no doubt that she held a position of trust and ii. Failure to maintain confidentiality of
justifying Aluag's dismissal is her failure to deposit confidence. school records;
checks on due dates, pursuant to a member/debtor's
As General Manager of the company, Gaite clearly falls iii. Contracting loans from students or
request. While the NLRC held that Aluag was not
under the first class of employee. parents;
directly responsible for depositing the checks on their
 iv. Use of cruel punishment; h. Conviction of a crime involving moral turpitude;
was not the first time they did this.
v. insubordination. or
i. Other causes analogous to the foregoing. Claudia’s Kitchen Inc. v. Tanguin 2017
b. Gross inefficiency and incompetence
In abandonment, absence must be accompanied by
i. Failure to cope with the reasonable Analogous Causes
overt acts unerringly pointing to the fact that the
standard of efficiency and competence; 1. There must be act or omission similar to those employee simply does not want to work anymore.
ii. Habitual absences and tardiness; specified just causes; and
Mere absence or failure to report for work, even after a
iii. Willful neglect 2. The act or omission must be voluntary and/or notice to return to work has been served, is not enough
willful on the part of the employees. to amount to an abandonment of employment.
c. Tampering or falsification of, or negligence in
No act or omission shall be considered as analogous Here, there was no abandonment on the part of
keeping school or student records including respondent. Records are bereft of any indication that
unreasonable delay in submission of grades; cause unless expressly specified in the company rules
Tanguin's failure to report for work was with a clear
and regulations or policies. (Sec 5.2[g]. Rule I-A. intent to sever her employment relationship with the
d. Conviction of a crime or an attempt on, or a
Book VI) petitioners. Moreover, Tanguin's act of filing a
criminal act against the life of any school
complaint for illegal dismissal with prayer for
personnel or student, or upon the property or Abandonment reinstatement negates any intention to abandon her
interest of the institution; Gross and Habitual Neglect of Duty employment.
e. Being notoriously undesirable; Abandonment is the deliberate and unjustified Mehitabel Inc v. Alcuizar 2017
f. Disgraceful or immoral acts; refusal of an employee to resume his employment.
The filing of a complaint for illegal dismissal does not
g. Sale of tickets or the collection of any It is a form of neglect of duty, hence, a just cause for ipso facto foreclose the possibility of abandonment. It is
contributions; termination of employment by the employer. For a not the sole indicator in determining whether or not
valid finding of abandonment, these two factors there was desertion. Other circumstances surrounding
h. Voluntary or request for de-loading of teaching the case must be taken into account in resolving the
should be present:
units to less than the required minimum; issue of whether or not there was abandonment.
1) the failure to report for work or absence
i. Phasing out, closure or cessation of the program WON Alcuizar was dismissed by Mehitabel.
without valid or justifiable reason; and
or institution; NO. His assertion that Arcenas instructed him to
2) a clear intention to sever employer- turnover his functions to Enriquez remains to be a
j. Other analogous cases.
employee relationship, naked claim. We find more credible petitioner's
In Basic Education assertion that said publications were made through
with the second as the more determinative factor
a. Dishonesty, fraud, or willful breach of the trust sheer inadvertence, and that the vacancy is actually for
which is manifested by overt acts from which it may
the position of Purchasing Officer, rather than
reposed; be deduced that the employees have no more Purchasing Manager.
b. Oppression, or commission of a crime; intention to work. The intent to discontinue the
Alcuizar was informed of the error committed, and that
c. Misconduct; employment must be shown by clear proof that it was it was made clear to him that he was never terminated
deliberate and unjustified. from service at that time in spite of his poor
d. Neglect of duty, or inefficiency;
performance.
e. Notoriously disgraceful, or immoral conduct; Agabon v. NLRC En Banc WON Alcuizar abandoned his employment.
f. Violation of reasonable school rules, or willful In February 1999, petitioners were frequently absent,
having subcontracted for an installation work for YES. Mehitabel issued a Return to Work order to
disobedience; respondent, which the latter received through
another company. Subcontracting for another company
g. Improper or unauthorized solicitation; clearly showed the intention to sever the employer- registered mail. This circumstance bears more weight
employee relationship with private respondent. This and effectively negates respondent's self-serving
 asseveration that he was dismissed from employment. is a prerogative belonging to management. Sulpicio Lines failed to clearly show that Nacague was
guilty of using illegal drugs. We agree with the Labor
Respondent's non-compliance with the directive in the At any rate, even assuming that respondent was indeed Arbiter that the lack of accreditation of S.M. Lazo Clinic
Return to Work to Our mind, signifies his intention to told by respondent's bus dispatcher Roger Pasion that made its drug test results doubtful. As to the mechanics
sever the employment relation with petitioner, and he was AWOL, this was not tantamount to dismissal, of the test, the law specifies that the procedure shall
gives credence to the latter's claim that it was actual or constructive. An ordinary bus dispatcher has employ two testing methods, i.e., the screening test
respondent who abandoned his job. no power to dismiss an employee. and the confirmatory test. Only a screening test was
Respondent cannot harp on the fact that he filed a However, it cannot be said that respondent abandoned conducted to determine if Nacague was guilty of using
complaint for illegal dismissal in proving that he did not his employment. Petitioner itself admitted that it illegal drugs.
abandon his post, for the filing of the said complaint sanctioned the practice of allowing its drivers to take
does not ipso facto foreclose the possibility of breaks from work in order to afford them the Attitude Problem
abandonment. It is not the sole indicator in determining opportunity to recover from the stresses of driving the
Breach of Trust
whether or not there was desertion, and to declare as same long and monotonous bus routes by accepting
an absolute that the employee would not have filed a jobs elsewhere, as some form of sabbatical or vacation.
Heavylift Manila v. CA
complaint for illegal dismissal if he or she had not really Simply put, respondent availed of petitioner's company
been dismissed is non sequitur. practice and unwritten policy — of allowing its bus Galay, Heavylift Insurance and Provisions Assistant, was
drivers to take needed breaks or sabbaticals. terminated for alleged loss of confidence. She was
It can be gathered that respondent's departure was informed of her low performance rating and the
merely a precursor to his scheme to turn the table negative feedback from her team members regarding
against petitioner. Realizing that his employment was at Sexual Harassment
her work attitude.
serious risk due to his habitual neglect of his duties, Serious Misconduct
respondent jumped the gun on petitioner by lodging a An employee who cannot get along with his co-
baseless complaint for illegal dismissal even though it The gravamen of the offense is not the mere violation employees is detrimental to the company for he can
was he who abandoned his employment. of one’s sexuality, but the abuse of power by the upset and strain the working environment. Without the
employer who has a duty to protect his employee necessary teamwork and synergy, the organization
Maria De Leon Transportation Inc., et al. v. Macuray cannot function well. Thus, management has the
against over-sex. prerogative to take the necessary action to correct the
2018
Gross Inefficiency or poor performance situation and protect its organization. When personal
An employee can not be said to have abandoned his differences between employees and management affect
employment when he merely availed of a company Gross and Habitual Neglect of Duty the work environment, the peace of the company is
practice of taking sabbaticals in order to afford them 1. Employer has set standards of performance; affected. Thus, an employee’s attitude problem is a valid
the opportunity to recover from the stresses of driving ground for his termination. It is a situation analogous
2. Standards are reasonable and in connection with
the same long and monotonous bus routes by accepting to loss of trust and confidence that must be duly
jobs elsewhere. employee’s work; AND
proved by the employer. Similarly, compliance with the
3. Proof that EE failed to meet the standards despite twin requirement of notice and hearing must also be
WON there was just cause for dismissing Macuray due to
given reasonable opportunity to meet the same. proven by the employer.
abandonment.
The mere mention of negative feedback from her team
NO. Macuray was not dismissed from work and he did Universal Staffing Services v. NLRC members is not proof of her attitude problem.
not abandon his employment. The fact that an employee’s performance is found to be
The Court is inclined to believe petitioner's allegations: poor does not necessarily mean that the employee is
grossly and habitually negligent of his duties. Disloyalty and Conflict of Interest
respondent left his work as bus driver to work for his
family's trucking business. There is no truth to the Willful Breach of Trust or Loss of Confidence
allegation that respondent was dismissed, actually or Drug use or abuse Holding a position in conflict with the present
constructively. He claims that the dispatcher informed Serious Misconduct position.
him that he was AWOL; however, a mere bus dispatcher
does not possess the power to fire him from work – this Nacague v. Sulpicio Lines 2010
 Lack of common sense
attendant circumstances, which may justify the of closures or cessation of operations of establishment
Gross and Habitual Neglect of Duty
imposition of the penalty of dismissal, may suffice. or undertaking not due to serious business losses or
Enforcement of union security clause Liability for prohibited acts is to be determined on an financial reverses, the separation pay shall be
individual basis. equivalent to one (1) month pay or at least one-half
Requisites
Escario v. NLRC 2010 (1/2) month pay for every year of service, whichever is
a. The union security clause is applicable; higher.
Contemplating two causes for the dismissal of an
b. The bargaining union is requesting for the employee, that is: (a) unlawful lockout; and (b) A fraction of at least six (6) months shall be considered
participation in an illegal strike, the third paragraph of one (1) whole year.
termination of employment due to
enforcement of the clause in the CBA; AND Article 264(a) authorizes the award of full backwages
only when the termination of employment is a COMMON REQUISITES
c. There is sufficient evidence to support the consequence of an unlawful lockout.
union’s decision to expel the employee from 1. Good faith;
On the consequences of an illegal strike, the provision
the union. distinguishes between a union officer and a union 2. Termination is matter of last resort;
member participating in an illegal strike. A union officer
who knowingly participates in an illegal strike is 3. Two (2) Separate notices served on the affected
Alabang Country Club v. NLRC EE and DOLE ONE MONTH prior to intended date
deemed to have lost his employment status, but a union
The Club and the Union entered into a CBA, which member who is merely instigated or induced to of termination;
provided for a Union shop and maintenance of participate in the illegal strike is more benignly treated.
membership shop. 4. Separation pay;
After an audit of Union funds, the Union notified ii. Authorized causes a. Installation of labor saving Device or
respondents Pizarro, Braza, and Castueras of the audit Redundancy = 1 month pay or at least 1
results and asked them to explain the discrepancies in ARTICLE 298. Closure of Establishment and Reduction month pay for every year of service
writing. of Personnel. — The employer may also terminate the whichever is higher;
Despite their explanations they were expelled from the employment of any employee due to
Union for malversation of Union funds. The Union, b. Retrenchment or closure not due to serious
invoking the Security Clause of the CBA, demanded that 1. the installation of labor-saving devices, losses = 1 month pay or at least 1/2 month
the Club dismiss them. 2. redundancy, pay for every year of service whichever is
Termination of employment by virtue of a union 3. retrenchment to prevent losses or higher;
security clause embodied in a CBA is recognized and
4. the closing or cessation of operation of c. Closure due to serious losses = NONE.
accepted in our jurisdiction. This practice strengthens
the union and prevents disunity in the bargaining unit the establishment or undertaking d. CBA provision shall prevail.
within the duration of the CBA. unless the closing is for the purpose of circumventing 5. Fair and reasonable criteria.
the provisions of this Title, by serving a written notice
Commission of prohibited acts during strike, etc. on the workers and the Ministry of Labor and Installation of labor-saving devices
Employment at least one (1) month before the intended refers to the reduction of the number of workers in
Solidbank v. Gamier 2010
date thereof.
A worker merely participating in an illegal strike may any workplace made necessary by the introduction of
In case of termination due to the installation of labor- labor-saving machinery or devices.
not be terminated from employment. It is only when he
saving devices or redundancy, the worker affected
commits illegal acts during a strike that he may be 1. There must be introduction of machinery,
thereby shall be entitled to a separation pay equivalent
declared to have lost employment status.
to at least his one (1) month pay or to at least one (1) equipment or other devices;
There must be proof that he or she committed illegal month pay for every year of service, whichever is
acts during a strike. In all cases, the striker must be higher. 2. The introduction must be done in good faith;
identified. But proof beyond reasonable doubt is not
In case of retrenchment to prevent losses and in cases
required. Substantial evidence available under the
 3. The purpose for such introduction must be valid
such as to save on cost, enhance efficiency and The award of reinstatement, including backwages, is WON Acosta was validly dismissed from employment on
other justifiable economic reasons; awarded by a Labor Arbiter to an illegally dismissed the ground of redundancy.
employee pursuant to Article 294.
4. There is no other option available to the employer NO. Assuming that respondents can declare some
On the other hand, a return-to-work order is issued by positions redundant due to the alleged decrease in
than the introduction of machinery, equipment or the SOLE when he or she assumes jurisdiction over a volume of their business, they still had to comply with
device and the consequent termination of labor dispute in an industry that is considered other requisites. This, they failed to do.
employment of those affected thereby; and indispensable to the national interest.
Here, respondents' only basis for declaring petitioner's
5. There must be fair and reasonable criteria in WON the 2002 redundancy program of PLDT was valid. position redundant was that his function, which was to
selecting employees to be terminated. monitor the delivery of supplies, became unnecessary
YES. To establish good faith, the company must provide upon completion of the shipments. However, upon
Redundancy substantial proof that the services of the employees are careful scrutiny, this Court finds that the Employment
in excess of what is required of the company, and that Agreement itself contradicts respondents' allegation.
exists when "the services of an employee are in excess fair and reasonable criteria were used to determine the
of what is reasonably demanded by the actual redundant positions. There was no mention of monitoring shipments as part
requirements of the enterprise." of petitioner's tasks. If his work pertains mainly to the
PLDT's declaration of redundancy was backed by delivery of supplies, it should have been specifically
For the implementation of a redundancy program to substantial evidence showing a consistent decline for stated in his job description. There was, hence:, no basis
be valid, the employer must comply with the operator-assisted calls for both local and international for respondents to consider his position irrelevant
calls because of cheaper alternatives. when the shipments had been completed.
following requisites:
Aquino v. NLRC differentiated between separation pay
1. written notice served on both the employees and Likewise, respondents failed to show that they used fair
and retirement benefits:
and reasonable criteria in determining what positions
the DOLE at least one month prior to the
1. Separation pay is required in the cases should be declared redundant.
intended date of retrenchment; enumerated in Articles 283 and 284 of the
In Panlilio v. NLRC, this Court held that fair and
2. payment of separation pay equivalent to at least Labor Code, which include retrenchment, and is
reasonable criteria may take into account the preferred
computed at at least one month salary or at the
one month pay or at least one month pay for status, efficiency, and seniority of employees to be
rate of one-half month salary for every month
every year of service, whichever is higher; dismissed due to redundancy. Yet, respondents never
of service, whichever is higher. We have held
showed that they used any of these in choosing
3. good faith in abolishing the redundant positions; that it is a statutory right designed to provide
petitioner as among the employees affected by
and the employee with the wherewithal during the
redundancy.
period that he is looking for another
4. fair and reasonable criteria in ascertaining employment.
what positions are to be declared redundant and Retrenchment to prevent losses
2. Retirement benefits, where not mandated by
accordingly abolished. law, may be granted by agreement of the Retrenchment or downsizing is a mode of
Manggagawa ng Komunikasyon sa Pilipinas v. PLDT employees and their employer or as a terminating employment initiated by the employer
voluntary act on the part of the employer. through no fault of the employee and without
2017 Leonen
Retirement benefits are intended to help the
prejudice to the latter, resorted to by management
An employer's declaration of redundancy becomes a employee enjoy the remaining years of his life.
during periods of business recession, industrial
valid and authorized cause for dismissal when the
Acosta v. Matiere SAS 2019 Leonen, J depression or seasonal fluctuations or during lulls
employer proves by substantial evidence that the
services of an employee are more than what is over shortage of materials. It is a reduction in
In redundancy, an employer must show that it
reasonably demanded by the requirements of the applied fair and reasonable criteria in determining what manpower, a measure utilized by an employer to
business enterprise. positions have to be declared redundant. Otherwise, it minimize business losses incurred in the operation of
An order of reinstatement is different from a return-to- will be held liable for illegally dismissing the employee its business.
work order. affected by the redundancy.
The following conditions must be present, namely:
 1. The retrenchment must be reasonably necessary
and likely to prevent business losses; involuntary at the same time. c) seniority, among others.
The requirement of fair and reasonable criteria is
2. The losses, if already incurred, are not merely de Flight Attendants and Stewards Association of the imposed on the employer to preclude the occurrence of
minimis, but substantial, serious, actual and real, Phils. v. PAL 2018 En Banc arbitrary selection of employees to be retrenched.
or, if only expected, are reasonably imminent; Absent any showing of bad faith, the choice of who
In determining the validity of a retrenchment, judicial
should be retrenched must be conceded to the
3. The expected or actual losses must be proved by notice may be taken of the financial losses incurred by
employer for as long as a basis for the retrenchment
sufficient and convincing evidence; an employer undergoing corporate rehabilitation. In
exists.
such a case, the presentation of audited financial
4. The retrenchment must be in good faith for the statements may not be necessary to establish that the PAL resorted to both efficiency rating and inverse
advancement of its interest and not to defeat or employer is suffering from severe financial losses. seniority in selecting the employees to be subject of
circumvent the employees' right to security of termination. To insist on seniority as the sole basis for
WON PAL validly retrenched its employees. the selection would be unwarranted, it appearing that
tenure; and
YES. PAL was discharged of the burden to prove the applicable CBA did not establish such limitation.
5. There must be fair and reasonable criteria in serious financial losses in view of FASAP's admission.
ascertaining who would be dismissed and who Interestingly, FASAP averred in its position paper La Consolacion College of Manila, et al. v. Pascua 2018
therein that it was not opposed to the retrenchment Leonen, J
would be retained among the employees, such as
status, efficiency, seniority, physical fitness, age, program because it understood PAL's financial troubles; When termination of employment is occasioned by
and that it was only questioning the manner and lack of retrenchment to prevent losses, an employer must
and financial hardship for certain workers.
standard in carrying out the retrenchment. Evidently, declare a reasonable cause or criterion for retrenching
FASAP's express recognition of PAL's grave financial an employee. Retrenchment that disregards an
Flight Attendants and Stewards Association of the Phils v. situation meant that such situation no longer needed to employee's record and length of service is an illegal
PAL be proved, the same having become a judicial termination of employment.
admission.
In determining the validity of a retrenchment, judicial
WON Pascua's retrenchment was valid based on the
notice may be taken of the financial losses incurred by Presentation of the audited financial statements should criteria that she had the highest rate of pay.
an employer undergoing corporate rehabilitation. In not be the sole means by which to establish the
such a case, the presentation of audited financial employer's serious financial losses. The presentation of NO. Retrenchment may only be exercised in compliance
statements may not be necessary to establish that the audited financial statements, although convenient in with substantive and procedural requisites.
employer is suffering from severe financial losses. proving the unilateral claim of financial losses, is not Jurisprudence requires that the necessity of
required for all cases of retrenchment. The evidence retrenchment to stave off genuine and significant
Read-Rite Phils v. Francisco, et al. 2017 required for each case of retrenchment really depends business losses or reverses be demonstrated by an
on the particular circumstances obtaining. In Revidad
WON an employer, forced to undergo retrenchment due employer's independently audited financial
v. NLRC, the Court declared that "proof of actual
to serious business losses, be required to still pay statements. Documents that have not been the subject
financial losses incurred by the company is not a
Voluntary Separation Benefit after it had already paid of an independent audit may very well be self-serving.
condition sine qua non for retrenchment," and
Involuntary Separation Benefit (retrenchment pay) to
retrenchment may be undertaken by the employer to The records indicate that La Consolacion suffered
the retrenched employees, simply because it had earlier
prevent even future losses. serious business reverses or an aberrant drop in its
paid, albeit mistakenly, eight (8) retrenched employees
additional Voluntary Separation Benefit. PAL used fair and reasonable criteria in selecting the revenue and income, thus, compelling it to retrench
employees to be retrenched pursuant to the CBA. employees.
NO. Respondents are only entitled to involuntary
separation benefits. In selecting the employees to be dismissed, the La Consolacion's failure was non-compliance with using
employer is required to adopt fair and reasonable fair and reasonable criteria that considered the status
Given the diametrical nature of an involuntary and a criteria, taking into consideration factors like: and seniority of the retrenched employee.
voluntary separation from service, one necessarily
a) preferred status; This Court in Asia World Publishing House, Inc. v.
excludes the other. For sure, an employee's
termination from service cannot be voluntary and b) efficiency; and Ople considered seniority, along with efficiency rating
and less-preferred status, as a crucial facet of a fair and
 Commission as well as Pedroso v. Castro, we declared Temporary or periodic shutdown and temporary
reasonable criterion for effecting retrenchment. Emcor, such absences as not constitutive of abandonment, cessation of work
Inc. v. Sienes was categorical, a "retrenchment scheme and held the dismissal of the employee-detainee
without taking seniority into account rendered the SECTION 7. RULE IV. BOOK III. Temporary or periodic
retrenchment invalid." invalid. shutdown and temporary cessation of work. — (a) In
The dismissed employees should be reinstated to cases of temporary or periodic shutdown and
La Consolacion's disregard of respondent's seniority temporary cessation of work of an establishment, as
and preferred status relative to a part-time employee their former positions, since their separation from
when a yearly inventory or when the repair or cleaning
indicates its resort to an unfair and unreasonable employment was founded on a false or non-existent of machineries and equipment is undertaken, the
criterion for retrenchment. cause; hence, illegal. The dismissal being illegal, regular holidays falling within the period shall be
Employees who have earned their keep by respondent is entitled to backwages as a matter of compensated in accordance with this Rule.
demonstrating exemplary performance and securing right provided by law. (b) The regular holiday during the cessation of
roles in their respective organizations cannot be operation of an enterprise due to business reverses as
summarily disregarded by nakedly pecuniary Suspension of Operations, basis and maximum period
authorized by the SOLE may not be paid by the
considerations. allowed employer.
ARTICLE 301. When Employment not Deemed
Closing or cessation of operation of the Terminated. — The bonafide suspension of the Disease as ground for termination
establishment or undertaking operation of a business or undertaking for a period not
Refers to the complete or partial cessation of the exceeding six (6) months, or the fulfillment by the ARTICLE 299. Disease as Ground for Termination. — An
operations and/or shut-down of the establishment of employee of a military or civic duty shall not employer may terminate the services of an employee
terminate employment. In all such cases, the employer who has been found to be suffering from any disease
the employer.
shall reinstate the employee to his former position and whose continued employment is prohibited by law
1. There must be a decision to close or cease without loss of seniority rights if he indicates his desire or is prejudicial to his health as well as to the health of
operation of the enterprise by the management; to resume his work not later than one (1) month from his co-employees:
the resumption of operations of his employer or from Provided, That he is paid separation pay equivalent to at
2. The decision was made in good faith; and his relief from the military or civic duty. least one (1) month salary or to one-half (1/2) month
3. There is no other option available to the employer salary for every year of service, whichever is greater, a
except to close or cease operations. Distinguish from stoppage of work or suspension of fraction of at least six (6) months being considered as
operation one (1) whole year.
Principle of Absorption in Corporate Merger; Effect
of sale of assets and sale of interest; ARTICLE 128. Visitorial and Enforcement Power. —
xxxx To be a valid ground for termination, the following
Involves a transfer of ownership of business to a new
(c) The Secretary of Labor and Employment may must be present:
employer whereby the successor-employer is deemed
likewise order stoppage of work or suspension of
to have absorbed the EEs and is held liable for the 1. The employee must be suffering from any
operations of any unit or department of an
transgression of his predecessor when such transfer establishment when non-compliance with the law or disease;
is made in bad faith or used to defeat the rights of implementing rules and regulations poses grave and 2. The continued employment of the employee is
labor. imminent danger to the health and safety of workers in prohibited by law or prejudicial to his/her
the workplace. Within twenty-four hours, a hearing
Dismissal for false or non-existent cause shall be conducted to determine whether an order for health as well as to the health of his/her co-
the stoppage of work or suspension of operations shall employees; and
Absences incurred by an employee who is prevented
be lifted or not. In case the violation is attributable to 3. There must be certification by a competent
from reporting for work due to his detention to
the fault of the employer, he shall pay the employees
answer some criminal charge is excusable if his public health authority that the disease is
concerned their salaries or wages during the period of
detention is baseless, in that the criminal charge such stoppage of work or suspension of operation. incurable within a period of six (6) months
against him is not at all supported by sufficient xxxx even with proper medical treatment.
evidence. In Magtoto v. National Labor Relations As to procedural due process
The employer must furnish the employee two written 3. A directive that the employee is given The foregoing notices shall be served personally to
notices in terminations due to disease, namely: opportunity to submit a written explanation the employee or to the employee's last known
1. the notice to apprise the employee of the ground within a reasonable period. address. (Sec 5. Rule I-A. Book VI. Omnibus Rules)
for which his dismissal is sought; and "Reasonable period" should be construed as a period 2. Preventive suspension
2. the notice informing the employee of his of at least five (5) calendar days from receipt of DO 9-1997, amending Book V of the Omnibus Rules;
dismissal, to be issued after the employee has the notice to give the employee an opportunity to
May be defined as the temporary removal of an EE
been given reasonable opportunity to answer and study the accusation, consult or be represented by a
charged for violation of company rules from his
to be heard on his defense. lawyer or union officer, gather data and evidence, and
present status or position. It is not a disciplinary
decide on the defenses against the complaint.
measure and should not be confused with suspension
Fuji Television v. Espiritu 2014 Leonen, J b) After serving the first notice, the employer should imposed as a penalty. It shall not last longer than
There is no evidence showing that Arlene was accorded afford the employee ample opportunity to be thirty (30) days.
due process. After informing her employer of her lung heard and to defend himself with the
cancer, she was not given the chance to present medical This may be imposed while an investigation is
assistance of his representative if he so desires. ongoing.
certificates. Fuji immediately concluded that Arlene
could no longer perform her duties because of "Ample opportunity to be heard" means any The notice of preventive suspension cannot be
chemotherapy. It did not ask her how her condition meaningful opportunity given to the employee to
would affect her work. Neither did it suggest for her to considered as adequate notice to explain. (Tanala
answer the charges against him and submit v. NLRC)
take a leave, even though she was entitled to sick leaves.
Worse, it did not present any certificate from a evidence in support of his defense, whether in a
Maula v. Ximex Delivery Express 2017
competent public health authority. What Fuji did was to hearing, conference or some other fair, just and
inform her that her contract would no longer be reasonable way. A formal hearing or Preventive suspension may be legally imposed against
renewed, and when she did not agree, her salary was conference becomes mandatory only an employee whose alleged violation is the subject of an
withheld. Thus, the Court of Appeals correctly upheld investigation. Preventive suspension is justified where
the finding of the NLRC that for failure of Fuji to comply 1. when requested by the employee in the employee's continued employment poses a serious
with due process, Arlene was illegally dismissed. writing or and imminent threat to the life or property of the
employer or of the employee's co-workers. Without this
2. substantial evidentiary disputes exist or
b. Procedural due process kind of threat, preventive suspension is not proper.
a company rule or
Termination of Employment Based on Just Causes. Here, it cannot be said that petitioner posed a danger on
As defined in Article 297 of the Labor Code, as 3. practice requires it, or the lives of the officers or employees of respondent or
4. when similar circumstances justify it. their properties. Being one of the Operation Staff, which
amended, the requirement of two written notices
was a rank and file position, he could not and would not
served on the employee shall observe the following: c) After determining that termination of be able to sabotage the operations of respondent.
a) The first written notice should contain: employment is justified, the employer shall serve
Mamaril v. Red System Company 2018
1. The specific causes or grounds for the employee a written notice of
termination indicating that: WON Red System was guilty of imposing a double penalty
termination as provided for under Article
against Mamaril.
297 of the Labor Code, as amended, and 1. all circumstances involving the charge
company policies, if any; NO. Mamaril's preventive suspension and subsequent
against the employee have been
dismissal from the service do not partake of a double
2. Detailed narration of the facts and considered; and penalty; neither may his dismissal be regarded as harsh
circumstances that will serve as basis for the 2. the grounds have been established to and excessive.
charge against the employee. A general justify the severance of their Mamaril's initial suspension was a preventive
description of the charge will not suffice; and employment. suspension that was necessary to protect Red System's
 equipment and personnel. Mamaril was placed under petitioner to the HR Manager should be viewed with of allowances, and other benefits or their monetary
preventive suspension considering that during the reasonable leniency in light of the fact that it was equivalent computed from the time the compensation
pendency of the administrative hearings, he was committed under an emotionally charged state. was not paid up to the time of actual reinstatement.
noticed to have several near-accident misses and he had Indeed, there was only lapse in judgment rather than a An employee's removal for just or authorized cause but
exhibited a lack of concern for his work. His premeditated defiance of authority. without complying with the proper procedure, on the
inattentiveness posed a serious threat to the safety of other hand, does not invalidate the dismissal. It
ON TOTALITY OF INFRACTIONS
the company equipment and personnel. obligates the erring employer to pay nominal
Even if a just cause exists, the employer still has the damages to the employee, as penalty for not
Reassignment or transfer as remedial measure discretion whether to dismiss the employee, impose a complying with the procedural requirements of due
lighter penalty, or condone the offense committed. In process.
The purpose of reassignments is no different from making such decision, the employee's past offenses may
that of preventive suspension which management be taken into consideration. It is true that respondent may indeed be considered as
could validly impose as a disciplinary measure for the one who occupies a position of trust and confidence as
In Merin v. NLRC, this Court expounded on the principle he is one of those who were entrusted with the handling
protection of the company's property pending of totality of infractions as follows: of a significant amount or portion of petitioners'
investigation of any alleged malfeasance or products for sale. However, even a quick perusal of the
The totality of infractions or the number of
misfeasance committed by the employee. (Ruiz v. violations committed during the period of records at hand would show that petitioners failed to
Wendel Osaka Realty 2012) employment shall be considered in determining the present substantial evidence to support their
penalty to be imposed upon an erring employee. allegations that respondent had, in any way,
3. Illegal dismissal The offenses committed by petitioner should not be participated in the theft of the company's stolen items
taken singly and separately. and that after his preventive suspension he no longer
a. Kinds reported for work.
i. No just or authorized cause Here, respondent cannot invoke the principle of totality
of infractions considering that petitioner's alleged Evic Human Resource Management Inc. v. Panahon
Maula v. Ximex Delivery Express 2017 previous acts of misconduct were not established in 2017
accordance with the requirements of procedural due
Dismissal from employment has two facets: first, the WON there was just cause in dismissing Panahon.
process.
legality of the act of dismissal, which constitutes
substantive due process; and, second, the legality of the NO. The Court finds the Crew Behavior Report sorely
Distribution & Control Products Inc. v. Santos 2017
manner of dismissal, which constitutes procedural due inadequate in meeting the required quantum of proof to
process. WON Santos was validly dismissed for just cause. discharge petitioners' burden. For one, the statements
contained therein were uncorroborated and self-
Respondent manifestly failed to prove that petitioner's NO. In the case of Brown Madonna Press, Inc. v. Casas,
serving. No other evidence was presented to support
alleged act constitutes serious misconduct. this Court held:
the statements of the Captain. In Skippers United
ON SERIOUS MISCONDUCT In determining whether an employee's dismissal had Pacific, Inc. v. NLRC, the Court did not give weight and
been legal, the inquiry focuses on whether the dismissal credence to the uncorroborated Chief Engineer's Report
Misconduct is improper or wrong conduct; it is the violated his right to substantial and procedural due which purportedly specified the causes for the
transgression of some established and definite rule of process. An employee's right not to be dismissed seafarer's dismissal. In Maersk-Filipinas Crewing, Inc.
action, a forbidden act, a dereliction of duty, willful in without just or authorized cause as provided by law, is v. Avestruz, the Court likewise disregarded the
character, and implies wrongful intent and not mere covered by his right to substantial due process. uncorroborated and self-serving electronic mails of the
error in judgment. Compliance with procedure provided in the Labor Code, ship captain as proof of the seafarer's supposed neglect
While this Court held in past decisions that accusatory on the other hand, constitutes the procedural due of duty and perverse and wrongful attitude.
and inflammatory language used by an employee to the process right of an employee.
Here, while the report was signed by four (4) crew
employer or superior can be a ground for dismissal or Termination without a just or authorized cause members, the statements contained therein were, as
termination, the circumstances peculiar to this case find renders the dismissal invalid, and entitles the correctly observed by the CA, based on acts witnessed
the previous rulings inapplicable. The admittedly employee to reinstatement without loss of seniority only by Captain Buton.
insulting and unbecoming language uttered by rights and other privileges and full backwages, inclusive
 Incompetence or inefficiency, as a ground for confidence, it must be first, work-related, and second, respondents suffer financial damage by her failure to
dismissal, is understood to mean the failure to attain founded on clearly established facts. comply. The severe penalty of dismissal was not
work goals or work quotas, either by failing to complete The breach of trust must likewise be willful. commensurate to her infraction.
the same within the allotted reasonable period, or by Nepomuceno alleges that he was illegally dismissed
producing unsatisfactory results. merely for his failure to inform his superiors of the ii. Constructive dismissal
Petitioners failed to show that respondent willfully or actual dates of his vacation leave.
Constructive dismissal occurs when an employee
deliberately caused the alleged accident during the While an employer is free to regulate all aspects of quits because continued employment is rendered
mooring operations or that respondent repeatedly employment, the exercise of management prerogatives
impossible, unreasonable or unlikely as in the case
committed mistakes or repeatedly failed to perform his must be in good faith and must not defeat or circumvent
duties. As regards the charge of intoxication, Section the rights of its employees. of an offer of demotion in rank and a diminution in
33(6) of the POEA SEC provides that drunkenness In industries that mainly rely on sales, employers are pay.
must be committed while on duty to merit dismissal free to discipline errant employees who deliberately fail There is constructive dismissal in the following:
from employment. Here, respondent was admittedly off to report for work during a crucial sales period. It
duty when he was allegedly caught by the master would have been reasonable for respondents to 1) INVOLUNTARY RESIGNATION when
drinking on board. discipline Nepomuceno had he been a problematic continued employment is rendered
The lack of just or valid cause of respondent's employee who unceremoniously refused to do his work. impossible, unreasonable or unlikely;
dismissal was further exacerbated by petitioners' Nepomuceno turned over all of his pending work to a 2) DEMOTION in rank and/or DIMINUTION of
failure to afford respondent procedural due process. reliever before he left for Malaysia. He was able to reach
pay;
It is only in the exceptional case of clear and existing his sales quota and surpass his sales target even before
danger to the safety of the crew or vessel that the taking his vacation leave. Respondents did not suffer 3) Clear DISCRIMINATION, INSENSIBILITY or
required notices are dispensed with; but just the same, any financial damage as a result of his absence. This was DISDAIN by an ER to his EE.
a complete report should be sent to the manning also petitioner Nepomuceno's first infraction in his nine
(9) years of service with respondents. None of these The TEST of constructive dismissal is whether a
agency, supported by substantial evidence of the
findings. In the case at bar, the records are bereft of any circumstances constitutes a willful breach of trust reasonable person in the position of the EE would
evidence showing that respondent was given a written on his part. The penalty of dismissal, thus, was too have felt compelled to give up his position under the
notice of the charges against him, or that he was given severe for this kind of infraction. circumstances. It is an act amounting to dismissal but
an opportunity to explain or defend himself. For disobedience to be considered as just cause for made to appear it is not. It is therefore a dismissal in
termination, two (2) requisites must concur: first, "the
Malcaba et al. v. Prohealth Pharma Phils. 2018 Leonen disguise.
employee's assailed conduct must have been wilful or
intentional," and second, "the order violated must have Examples
While this Court recognizes the inherent right of
been reasonable, lawful, made known to the employee
employers to discipline their employees, the penalties a. Reducing workweek to 3 days;
and must pertain to the duties which he had been
imposed must be commensurate with the infractions
engaged to discharge." b. Barring EEs from entering the premises;
committed. Dismissal of employees for minor and
negligible offenses may be considered as illegal When Gamboa went to collect the money from c. Notice of INDEFINITE suspension;
dismissal. petitioner Palit-Ang, he was told to return the next day
as she was still busy. When Palit-Ang found out that the d. Imposing preventive suspension WITHOUT actual
WON Nepomuceno and Palit-Ang were illegally
money was to be used for a car tune-up, she suggested investigation;
dismissed.
to Gamboa to just get the money from his mobilization
YES. Loss of trust and confidence is a just cause to e. Changing EE status from regular to casual;
fund and that she would just reimburse it after.
terminate either managerial employees or rank-and-file f. Preventing EEs from reporting to work.
Palit-Ang's failure to immediately give the money to
employees who regularly handle large amounts of
Gamboa was not the result of a perverse mental attitude Constructive dismissal is distinguished from illegal
money or property in the regular exercise of their
but was merely because she was busy at the time.
functions. dismissal in that in the latter, intent to dismiss is
Neither did she profit from her failure to immediately
For an act to be considered a loss of trust and give the cash advance for the car tune-up nor did clearly expressed by the ER. In the former however,
ER NEVER indicates that he is terminating the EE.
The unilateral and arbitrary reduction of the work Statutory liability d. reinstatement does not serve the best interests of
day scheme that significantly reduced employees’ RA 8042 as amended by RA 10022. the parties involved;
salaries is a form of constructive dismissal. (Intec e. the employer is prejudiced by the workers’
If the offense is committed by a corporation, trust,
Cebu v. CA 2016) continued employment;
firm, partnership, association or any other entity, the
A college professor that was later appointed as a penalty shall be imposed upon the guilty officer or f. facts that make execution unjust or inequitable
laboratory custodian, divesting him of his teaching officers of such corporation, trust, firm, partnership, have supervened; or
load, was constructively dismissed. (Divine Word association or entity. g. strained relations between the employer and
College of Laoag v. Mina 2016) employee
(c) Reliefs from illegal dismissal
(a) Burden of proof Effect or Consequences of Dismissal Award When Reinstatement not Viable
1. In illegal dismissal cases, the fundamental An employee who is unjustly dismissed from work a. Backwages from date of dismissal until finality of
rule is that when an employer interposes the shall be entitled to decision;
defense of resignation, the burden to prove
1. reinstatement without loss of seniority b. Separation pay from date of employment until
that the employee indeed voluntarily
rights and other privileges and to his finality of decision (not date of dismissal);
resigned necessarily rests upon the
employer. 2. full backwages, inclusive of allowances, c. 10% attorney’s fees based on the awards
and to his computed; and
2. The employer bears the burden of proof to
prove that the termination was for a valid or 3. other benefits or their monetary equivalent d. Interest on the awards computed from date of
authorized cause. finality of decision until they are paid, these
computed from the time his compensation was
monetary claims being equivalent to a
Failure to discharge this burden means that withheld from him up to the time of his actual
forbearance of credit (Javellana, Jr v. Belen 2010)
the dismissal is illegal. reinstatement.
Backwages
But before the employer must bear the GR: When an EE is validly dismissed, NO
burden of proving that the dismissal was separation pay is given. Backwages in general are granted on grounds of
legal, the employees must first establish by equity for earnings which a worker or employee has
EXC: Such cause does not constitute serious
substantial evidence that indeed they were lost due to his illegal dismissal. It is not private
misconduct nor reflect on the EE’s moral
dismissed. compensation or damages but is awarded in
character, separation pay MAY be validly
furtherance and effectuation of the public objective of
If there is no dismissal, then there can be no awarded. This is the DISCERNING
the Labor Code. Nor is it a redress of a private right
question as to the legality or illegality thereof. COMPASSION doctrine.
but rather in the nature of a command to the
3. The burden of proving compliance with the Reinstatement employer to make public reparation for dismissing an
requirements of notice and hearing prior to Separation pay is made an alternative relief in lieu of employee either due to the former’s unlawful act or
respondent's dismissal from employment reinstatement in certain circumstances, like: bad faith.
falls on the employer.
a. when reinstatement can no longer be effected in The rule in Bustamante is controlling that the
(b) Liability of officers view of the passage of a long period of time or dismissed employee is to be paid backwages for the
Nature and scope of liability because of the realities of the situation; entire period that he was without work, without
b. reinstatement is inimical to the employer’s deduction and without qualification pursuant to the
GR: Officers of a corporation are not liable for
interest; express provisions of Article 279 of the Labor Code, as
their official acts unless it is shown they have
amended by Rep. Act No. 6715, i.e., without any
exceeded their authority. c. reinstatement is no longer feasible;
deduction of income the employee may have derived
EXC: Where the incorporators and directors from employment elsewhere from the date of his
belong to a single family.
 dismissal up to his reinstatement, that is, covering the
The burden is on the employer to prove that the
entirety of the period of the dismissal. Since there was neither dismissal nor abandonment, the
transfer or demotion of an employee was a valid
CA correctly sustained the LA and the NLRC's decision
The base figure is the wage rate at time of dismissal exercise of management prerogative and was not a
to order petitioner's reinstatement but without
inclusive of “allowances”, excluding salary mere subterfuge to get rid of an employee; failing in
backwages, consistent with the following
which, the employer will be found liable for
increases. Salary increases are not akin to pronouncement in Danilo Leonardo v. NLRC and
constructive dismissal.
allowances or benefits, and cannot be confused with Reynaldo's Marketing Corporation, et al.
either. (Equitable Banking v. Sadac) WON AMSFC and DFC constructively dismissed Baya.
Philippine Pan Asia Carriers Corp v. Pelayo 2018
Claudia’s Kitchen Inc. v. Tanguin 2017 YES. The top management of both AMSFC and DFC,
which were sister companies at the time, were well- WON Pelayo's involvement in the investigation conducted
As to separation pay aware of the lack of supervisory positions in AMSFC. by petitioner amounted to constructive dismissal.
In sum, separation pay is only awarded to a dismissed This notwithstanding, they still proceeded to order NO. An employer who conducts investigations following
employee in the following instances: Baya's return therein, thus, forcing him to accept rank- the discovery of misdeeds by its employees is not being
and-file positions. Thus, AMSFC and DFC are guilty of abusive when it seeks information from an employee
1. in case of closure of establishment under
constructively dismissing Baya. involved in the workflow which occasioned the
Article 298;
However, in light of the underlying circumstances misdeed. An employee's involvement in such an
2. in case of termination due to disease or
which led to Baya's constructive dismissal, it is clear investigation will naturally entail difficulty. This
sickness under Article 299;
that an atmosphere of animosity and antagonism now difficulty does not mean that the employer is creating
3. as a measure of social justice in those instances exists between Baya on the one hand, and AMSFC and an inhospitable employment atmosphere so as to ease
where the employee is validly dismissed for DFC on the other, which therefore calls for the out the employee involved in the investigation.
causes other than serious misconduct or those application of the doctrine of strained relations.
reflecting on his moral character; Thus, subject to the limits of ethical and lawful conduct,
Under the doctrine of strained relations, the payment an employer is free to adopt any means for conducting
4. where the dismissed employee's position is no these investigations. They can, for example, obtain
of separation pay is considered an acceptable
longer available; information from the entire roster of employees
alternative to reinstatement when the latter option is
5. when the continued relationship between the no longer desirable or viable. involved in a given workflow.
employer and the employee is no longer viable
We have held that the standard for constructive
due to the strained relations between them; or Cosue v. Ferritz Integrated Development Corp 2017
dismissal is "whether a reasonable person in the
6. when the dismissed employee opted not to be WON Cosue was constructively dismissed because he employee's position would have felt compelled to give
reinstated, or the payment of separation reported to work immediately after his suspension but up his employment under the circumstances."
benefits would be for the best interest of the was not anymore allowed to work.
parties involved. This Court fails to see how the petitioner's investigation
NO. Bare allegations of constructive dismissal, when amounted to respondent's constructive dismissal. Other
In fine, as a general rule, separation pay in lieu of uncorroborated by the evidence on record, as in this than respondent's bare allegation, there is nothing to
reinstatement could not be awarded to an employee case, cannot be given credence. support the claim that her interviewers were hostile,
whose employment was not terminated by his distrusting, and censorious, or that the interview was a
employer. Records do not show any demotion in rank or a mere pretext to pin her down. Respondent's
diminution in pay made against petitioner. Neither was recollection is riddled with impressions, unsupported
There were cases, however, wherein the Court awarded there any act of clear discrimination, insensibility or
separation pay in lieu of reinstatement to the employee by independently verifiable facts.
disdain committed by respondents against petitioner.
even after a finding that there was neither dismissal nor
Respondents' decision to give petitioner a graceful exit Union School International et al. v. Dagdag 2018
abandonment. In Nightowl Watchman & Security
Agency, Inc. v. Lumahan, the Court awarded separation is perfectly within their discretion. It is settled that The standard of morality with which an act should be
pay in view of the findings of the NLRC that respondent there is nothing reprehensible or illegal when the gauged is public and secular, not religious.
stopped reporting for work for more than ten (10) employer grants the employee a chance to resign and
years and never returned. save face rather than smear the latter's employment Pregnancy of a school teacher out of wedlock is not a
record. just cause for termination of an employment absent any
Sumifru Corp v. Baya 2017 showing that the pre-marital sexual relations and,
 4. Money claims arising from employer-employee
consequently, pregnancy out of wedlock, are indeed employees. relationship
considered disgraceful or immoral.
NO. Security guards, like other employees in the private
Fuji Television v. Espiritu 2014 Leonen, J
WON Dagdag was constructively dismissed by Union sector, are entitled to security of tenure. However, their
School. situation should be differentiated from that of other Separation Pay in lieu of Reinstatement
employees or workers. The employment of security Allowed only in several instances such as
YES. Mandapat's act of suggesting that Dagdag should
guards generally depends on their employers' contracts
simply tender her resignation, as the school may 1) when the employer has ceased operations;
with clients who are third parties to the employment
impose harsher penalties, left Dagdag with no choice
relationship, and the requirements of the latter for 2) when the employee’s position is no longer
but to discontinue working for Union School. Although
security services and what will be beneficial to them available;
there was a conduct of grievance meeting, its outcome
dictate the posting of the security guards. 3) strained relations; and
was already predetermined as petitioners were already
resolute in their decision to terminate Dagdag's In other words, their security of tenure, though it 4) a substantial period has lapsed from date of
employment. This is evident by the fact that Dagdag was shields them from demotions in rank or diminutions of filing to date of finality.
left with two choices—resignation or dismissal and salaries, benefits and other privileges, does not vest
Well-entrenched is the rule that an illegally dismissed
threatening her with possible revocation of her teaching them with the right to their positions or assignments
license. that will prevent their transfers or re-assignments. Only employee is entitled to reinstatement as a matter of
when the period of their reserved or off-detail status right. The doctrine of “strained relations” should be
To determine whether a conduct is disgraceful or
exceeds the reasonable period of six months without re- strictly applied so as not to deprive an illegally
immoral, a consideration of the totality of the
assignment should the affected security guards be dismissed employee of his right to reinstatement.
circumstances surrounding the conduct; and an
regarded as dismissed. Indeed, there should be no
assessment of the said circumstances vis-a-vis the Here, no evidence was presented by Fuji to prove that
indefinite lay-offs. After the period of six months, the
prevailing norms of conduct, i.e., what the society reinstatement was no longer feasible. Fuji did not allege
employers should either recall the affected security
generally considers moral and respectable, are
guards to work or consider them permanently that it ceased operations or that Arlene’s position was
necessary.
retrenched pursuant to the requirements of the law; no longer available. Nothing in the records shows that
In the case of Capin-Cadiz v. Brent Hospital and otherwise, the employers would be held to have Arlene’s reinstatement would cause an atmosphere of
Colleges, Inc. it is held that: dismissed them, and would be liable for such antagonism in the workplace.
dismissals.
Jurisprudence has already set the standard of Moral Damages
morality with which an act should be gauged — it is Under DOLE Department Order No. 014-01, the
public and secular, not religious. tenure of security guards in their employment is Quitclaims in labor cases do not bar illegally dismissed
ensured by guaranteeing that their services are to be employees from filing labor complaints and money
The totality of evidence in this case does not justify the
terminated only for just or authorized causes. claims. As explained by Arlene, she signed the non-
dismissal of Dagdag from her employment considering
that there was no legal impediment to marry between Their complaint for illegal dismissal was even renewal agreement out of necessity.
Dagdag and the father of her child at the time of the prematurely filed on August 14, 2008 because the Moral damages are awarded “when the dismissal is
conception. notices were sent to each of them only in the period attended by bad faith or fraud or constitutes an act
from July 3, 2008 to August 2, 2008. We can only uphold
Spectrum Security Services Inc v. Grave oppressive to labor, or is done in a manner contrary to
the Labor Arbiter's conclusion that the respondents
et al. 2017 re Suspension of Business had actually abandoned their employment and had good morals, good customs or public policy.” On the
Operations severed their employment relationship with the other hand, exemplary damages may be awarded when
petitioner themselves. Despite having been notified of the dismissal was effected “in a wanton, oppressive or
A security guard placed on reserved or off-detail the need for them to appear before the petitioner's head malevolent manner.”
status is deemed constructively dismissed only if the office to update their documents for purposes of
status should last more than six months. Any claim of reposting, the respondents refused to receive the Apart from Arlene’s illegal dismissal, the manner of her
constructive dismissal must be established by clear and notices, and did not sign the same, without first dismissal was effected in an oppressive approach with
positive evidence. knowing the contents of the memo. her salary and other benefits being withheld, when she
WON Spectrum Security constructively dismissed its had no other choice but to sign the non-renewal
 hand, such payment liberates the employee from
contract. petitioner's constructive dismissal had long been what could be a highly oppressive work
consummated.
Attorney’s Fees environment. On the other hand, it releases the
Article 111 of the Labor Code states that “in cases of Superior Maintenance Services v. Bermeo 2018 employer from the grossly unpalatable obligation
unlawful withholding of wages, the culpable party may of maintaining in its employ a worker it could no
Article 301 of the Labor Code was applied only by
be assessed attorney’s fees equivalent to ten percent of longer trust.
analogy to prevent the floating status of employees
the amount of wages recovered.” Likewise, this court
hired by agencies from becoming indefinite. This Strained relations must be demonstrated as a fact,
has recognized that “in actions for recovery of wages or
temporary off-detail of employees is not a result of however, to be adequately supported by evidence
where an employee was forced to litigate and, thus,
suspension of business operations but is merely a
incur expenses to protect his rights and interest, the — substantial evidence to show that the
consequence of lack of available posts with the agency's
award of attorney’s fees is legally and morally relationship between the employer and the
subsisting clients.
justifiable.” Due to her illegal dismissal, Arlene was
employee is indeed strained as a necessary
forced to litigate. WON Bermeo was constructively dismissed from work.
consequence of the judicial controversy.
5. When not deemed dismissed; employee on NO. In Salvaloza v. NLRC, temporary off-detail or
floating status was defined as that "period of time when b. Totality of Infractions. — The totality of
floating status infractions or number of violations committed
security guards are in between assignments or when
Ibon v. Genghis Khan Security Services Inc. 2017 they are made to wait after being relieved from a during the period of employment shall be
previous post until they are transferred to a new one." considered in determining the penalty to be
An employer must assign the security guard to another
posting within six (6) months from his last deployment, In all cases however, the temporary lay-off wherein the imposed on the erring employee. The offenses
otherwise, he would be considered constructively employees cease to work should not exceed six months, committed by him should not be taken singly and
dismissed; and the security guard must be assigned to a in consonance with Article 301 of the Labor Code. After separately but in their totality. Fitness for
specific or particular client. A general return-to-work six months, the employees should either be recalled to
continued employment cannot be
order does not suffice. work or permanently retrenched following the
requirements of the law. Otherwise, the employees are compartmentalized into tight little cubicles of
WON Ibon was constructively dismissed by Genghis Khan. aspects of character, conduct and ability separate
considered as constructively dismissed from work and
YES. In Reyes v. RP Guardians Security Agency, the the agency can be held liable for such dismissal. and independent of each other. (Alvarez v. Golden
Court held that temporary off-detail of a security guard Tri Bloc 2013)
is generally allowed, but is tantamount to constructive In the present controversy, when Bermeo filed his
dismissal if the floating status extends beyond six (6) complaint for constructive dismissal on September 5, c. Hobson Doctrine. — What was the true nature of
months. 2008, it was only a week after his unsuccessful
petitioner's offer to private respondents? It was
assignment in French Baker on August 28, 2008. Even if
In Exocet Security v. Serrano, the Court absolved the the reckoning date would be his last assignment at in reality a Hobson's choice. All that the private
employer even if the security guard was on a floating Trinoma Mall, which ended on March 30, 2008, it is still respondents were offered was a choice on the
status for more than six (6) months because the latter less than the six-month period allowed by Article 301 means or method of terminating their services
refused the reassignment to another client. for employees to be placed on floating status. Thus, the but never as to the status of their employment. In
Here, respondent should have deployed petitioner to a filing of his complaint for constructive dismissal is
short, they were never asked if they still wanted
specific client within six (6) months from his last premature. Besides, it is unrebutted that the petitioners
assignment. The correspondences allegedly sent to contacted Bermeo for a new assignment even after the to work for petitioner. Hobson's Choice means no
petitioner merely required him to explain why he did latter has filed a complaint for constructive dismissal. choice at all; a choice between accepting what is
not report to work. He was never assigned to a offered or having nothing at all.
particular client. Further, petitioner's refusal to accept IMPORTANT DOCTRINES
the offer of reinstatement could not have the effect of d. Totality of Conduct. Same as B
a. Doctrine of Strained Relations. — The payment
validating an otherwise constructive dismissal e. Past Infraction Rule. — The number of same
of separation pay is considered an acceptable
considering that the same was made only after nature of violations committed shall be
petitioner had filed a case for illegal dismissal. At the alternative to reinstatement when the latter
time the offer for reinstatement was made, option is no longer desirable or viable. On one
 considered in determining the penalty to be omission imputed to the employee (RCPI v. NLRC), The law requires the EE to submit an advance notice
imposed. and must consider the employee’s length of to the ER known as a RESIGNATION NOTICE.
f. Wenphil Doctrine. — Where the employer had a service in the company, and his previous 1. It is to be given at least 1 month before
valid reason to dismiss an employee but did not infractions (Bonotan v. NLRC), if any. effectivity date of resignation.
follow the due process requirement, the dismissal k. Theory of Automatic Assumption. — BPI is 2. The notice is for the benefit of the ER.
may be upheld but the employer will be penalized deemed to have assumed the employment
3. ER has discretion to shorten the period.
to pay an indemnity to the employee. contracts of FEBTC employees upon effectivity of
the merger without break in the continuity of 4. Failure to file notice will hold EE liable for
g. Bona Fide Occupational Qualification Rule. —
their employment even without express damages for losses.
Employment in particular jobs may not be limited
to persons of a particular sex, religion, or national stipulation in the Articles of Merger. (BPI v. BPI INVOLUNTARY resignation or “termination by EE
origin unless the employer can show that sex, Employees Union 2011 En Banc Resolution) WITH just cause”. Occurs when the intent of the EE is
religion, or national origin is an actual vitiated. This results in illegal dismissal. No notice is
qualification for performing the job. C. Termination by employee required to be submitted by the EE under these
instances:
h. Successor Employer Doctrine. — The successor-
1. With notice to the employer
employer is deemed to have absorbed the 1. Serious insult by the employer or his
employees and is held liable for the transgression ARTICLE 300. Termination by Employee. — (a) An representative on the honor and person of
of his predecessor when such change is made in employee may terminate without just cause the the employee;
bad faith or used to defeat the rights of labor employee-employer relationship by serving a written
2. Inhuman and unbearable treatment
notice on the employer at least one (1) month in
(1998 Phil Airlines) advance. The employer upon whom no such notice was accorded the employee by the employer or
i. Doctrine of Discerning Compassion or served may hold the employee liable for damages. his representative;
Compassionate Justice. — Separation pay shall 3. Commission of a crime or offense by the
be allowed as a measure of social justice only in Resignation is the VOLUNTARY act of an employee employer or his representative against the
those instances where the employee is validly dissociating from his employment in the belief that person of the employee or any of the
dismissed for causes other than serious personal reason cannot be sacrificed in favor of the immediate members of his family; and
misconduct or those reflecting on his moral exigency of the service. Personal reasons may be due 4. Other causes analogous to any of the
character. Where the reason for the valid to health concerns. foregoing.
dismissal is, for example, habitual intoxication or
Forms b) Express or Implied resignation
an offense involving moral turpitude, like theft or
illicit sexual relations with a fellow worker, the a) Voluntary vs Involuntary (or courtesy or forced EXPRESS resignation is made in writing, with the
employer may not be required to give the resignation) reasons therein stated.
dismissed employee separation pay, or financial VOLUNTARY resignation or “termination by EE IMPLIED or constructive resignation is implied from
assistance, or whatever other name it is called, on WITHOUT just cause”. The EE must have knowingly antecedent, contemporaneous and subsequent acts
the ground of social justice. (San Miguel v. Lao) and voluntarily dissociated himself from his indicating that EE no longer desires to continue his
j. Discretionary Justice. — Where a penalty less employment for his own personal reasons. employment.
punitive would suffice, whatever missteps may be This DOES NOT include cases wherein the employee is Acceptance of Resignation and its effect
committed by labor ought not to be visited with a FORCED to resign with the use of threats,
Acceptance of resignation is not necessary.
consequence so severe. It must be intimidation, coercion, or manipulation.
Resignation may however be withdrawn even if EE
commensurate with the act, conduct or
called it irrevocable. If the ER has accepted and
 approved the tendered resignation, withdrawal 2. Without notice to the employer
thereafter requires the ER’s consent. ABB, Inc. and Desai were able to prove by substantial
ARTICLE 300. Termination by Employee. — xxx evidence that Doble voluntarily resigned. Doble insisted
Generally, an EE who voluntarily resigns is NOT that he was constructively dismissed because he was
(b) An employee may put an end to the relationship
entitled to separation pay. There are however two without serving any notice on the employer for any of threatened, detained as if he were a prisoner,
exceptions: the following just causes: unreasonably pressured and compelled to write a
resignation letter for more than eight (8) hours inside
1. When stipulated in CBA; 1. Serious insult by the employer or his the company office. Apart from his bare and self-serving
2. Sanctioned by established ER practice or representative on the honor and person of the allegations, however, Doble failed to present substantial
policy. employee; documentary or testimonial evidence to corroborate
the same.
Del Rio v. DPO Phils. 2018 2. Inhuman and unbearable treatment
accorded the employee by the employer or his
An employee who voluntarily resigns from employment
representative; D. Retirement
is not entitled to separation pay, except when it is
stipulated in the employment contract or the CBA, or it 3. Commission of a crime or offense by the
Retirement has been defined as a withdrawal from
is sanctioned by established employer practice or employer or his representative against the
policy. office, public station, business, occupation, or public
person of the employee or any of the
duty. It is the result of a bilateral act of the parties, a
WON the CA is correct in deleting the award of immediate members of his family; and
voluntary agreement between the employer and the
separation pay in favor of petitioner. 4. Other causes analogous to any of the employee whereby the latter, after reaching a certain
YES. There was no employment contract, much less a foregoing. age, agrees and/or consents to sever his employment
CBA, which contained the stipulation that would grant
separation pay to resigning employees. Neither was with the former.
there a company practice or policy that was proven to
3. Distinguish voluntary resignation and
constructive dismissal Retirement Pay
exist in the instant case.
Doble, Jr. v. ABB Inc. 2017 GR: Employees dismissed for just cause are
To be considered a company practice, the giving of the
generally entitled due to vested rights
benefits should have been done over a long period of Constructive dismissal is defined as quitting or
time, and must be shown to have been consistent and cessation of work because continued employment is EXC: Where just cause termination proscribes the
deliberate. As records would show, the giving of the rendered impossible, unreasonable or unlikely. There claim of retirement pay as cited in the
monetary benefit by respondents in favor of Legaspi is involuntary resignation due to the harsh, hostile, retirement plan.
and Martinez is merely an isolated instance. As and unfavorable conditions set by the employer.
explained by respondents, the said benefit was not 1. Under the Labor Code, only unjustly dismissed
intended as a separation pay but more of a promise or On the other hand, resignation is the voluntary act of employees are entitled to retirement benefits and
an assurance to Legaspi and Martinez that they would an employee who is in a situation where one believes other privileges including reinstatement and
be paid a benefit if they tender their resignation. As held that personal reasons cannot be sacrificed in favor of backwages. Since petitioner’s dismissal was for a
in Alfaro v. Court of Appeals, an employer who agrees to the exigency of the service, and one has no other choice just cause, he is not entitled to any retirement
expend such benefit as an incident of the resignation but to dissociate oneself from employment. It is a benefit. Notably, the Court has also disallowed
should not be allowed to renege in the performance of formal pronouncement or relinquishment of an office, claims for retirement benefits in valid dismissal
such commitment. with the intention of relinquishing the office cases because the retirement plan itself precluded
accompanied by the act of relinquishment. employees dismissed for cause from availing it.
This was not the case for petitioner. There was no (Sy v. Metrobank)
promise given to him. Rather, petitioner resigned on his As the intent to relinquish must concur with the overt
own volition. Respondents did not make any act of relinquishment, the acts of the employee before 2. ⭐An employee in the private sector who did not
commitment to petitioner that he would be paid after and after the alleged resignation must be considered in expressly agree to the terms of an early
his voluntary resignation. determining whether he or she, in fact, intended to retirement plan cannot be separated from the
sever his or her employment. service before he reaches the age of 65 years. The
employer who retires the employee
 prematurely is guilty of illegal dismissal, and is retirement of employees after twenty-five (25) objected stating that she did not consent to it. The
liable to pay his back wages and to reinstate him years of service is legal and enforceable so long Court ruled in favor of the petitioner because
without loss of seniority and other benefits, as the parties agree to be governed by such there was no voluntary acquiescence to
unless the employee has meanwhile reached the CBA." UNIPROM's early retirement age option on her
mandatory retirement age under the Labor Code, 6. In Progressive Development Corporation v. part.
in which case he is entitled to separation pay NLRC, the retirement plan, which allowed the 9. On the other hand, in Obusan v. Philippine
pursuant to the terms of the plan, with legal employer to retire employees who had rendered National Bank, the petitioner therein, who was
interest on the backwages and separation pay more than 20 years of service, was declared valid hired by PNB in 1979, was deemed covered by its
reckoned from the finality of the decision. (Laya, and enforceable even though it was not embodied retirement plan adopted on December 22, 2000.
Jr v. CA 2018 En Banc) in a CBA. In that case, the Court concluded that It mandated that the employee should retire
3. However, where the employee has been informed the employees, who were hired before the when he attained the age of sixty (60), regardless
and had consented, as when in accepting the execution of the employer's retirement plan, were of his length of service, or when he had rendered
employment offer, he has assented to all existing bound by it because the retirement plan was thirty (30) years of service, regardless of age,
rules, regulations and policy of the employer in expressly made known and accepted by them. whichever of the said conditions came first.
the employment contract, and furthermore, he 7. In contrast, the case of Jaculbe v. Silliman Considering that on February 21, 2001, PNB had
did not object to the compulsory age of University did not allow the application of a informed all of its officers and employees about
retirement in the Retirement Plan, he is deemed lower retirement age. The petitioner in the said the said retirement plan, the said plan was then
bound thereto. (Banco de Oro Unibank v. Sagaysay case was employed sometime in 1958 while the registered with the BIR and was later recognized
2015) retirement plan, which automatically retired its by the Philnabank Employees Association in its
4. OTHER CASES ON RETIREMENT PLAN. members upon reaching the age of 65 or after 35 CBA. Despite the proper dissemination of
Jurisprudence is replete with cases discussing the years of uninterrupted service to the university, information, no one questioned the retirement
employer's prerogative to lower the compulsory came into being in 1970. The said retirement plan plan. Hence, the Court deemed it valid and
retirement age subject to the consent of its was not applied to the petitioner because there effective as due notice of the employer's
employees. was no agreement to which the latter decision to retire an employee was adequately
assented. provided.
5. In Pantranco North Express, Inc. v. NLRC, the
Court upheld the retirement of the private 8. Similarly, the case of Cercado v. UNIPROM Inc., 10. ⭐Retirement of Part-time Faculty. Under the
respondent therein pursuant to a CBA allowing involved a non-contributory retirement plan rule of statutory construction of expressio unius
the employer to compulsorily retire employees which provided that any employee with twenty est exclusio alterius, Bernardo's claim for
upon completing 25 years of service to the (20) years of service, regardless of age, may be retirement benefits cannot be denied on the
company. Interpreting Article 287, the Court held retired at his option or at the option of the ground that he was a part-time employee as part-
that the Labor Code permits employers and company. The said plan was adopted while the time employees are not among those
employees to fix the applicable retirement age petitioner therein was employed earlier. When specifically exempted under RA No. 7641 or its
lower than 60 years of age. The Court also respondent UNIPROM retired the petitioner Implementing Rules. (Dela Salle Araneta U v.
stressed that "providing in a CBA for compulsory pursuant to its retirement plan, the latter Bernardo 2017)

Source Provision Requirement for availment Beneficiary Exemptions and Exclusions

Art 302[287] One-half month salary for every year of 1. Optional Age: 60; 1. All employees in private 1. National Gov, LGCs, GOCCs
service that includes: Compulsory: 65 sector; under Civil Service Law;
1. 15 days latest salary rate; and if entitled 2. 5 year minimum service; 2. Part-timers; 2. Retail, service, agri
to 3. Eligible for retirement; 3. Employees of service and establishments regularly
other job contractors; employing not more than
RA 10757 on Surface 2. Cash equivalent of service incentive leave Optional: 50; 4. Kasambahays or persons in
= 5 days; 10.
Mine Workers Compulsory: 60. the personal service of
3. 1/12 of the 13th month pay = 2.5 days; another; 3. Dismissed from work due to
RA 10789 on Compulsory: 55. 5. Underground mine workers; just cause.
 Racehorse Jockeys 1/2MS = 15+5+2.5 = 22.5 days 6. Employees in GOCCs
organized under Corp Code.

Catotocan v. Lourdes School of Quezon City 2017

WON the amount received by Hassaram under the Plan to claim only his remaining benefits under the CBA.
RETIREMENT PLAN. Acceptance by the employees of should be deemed part of his retirement pay.
an early retirement age option must be explicit, Barroga v. Quezon Colleges of the North 2018
voluntary, free, and uncompelled. While an employer YES. Pursuant to the Decisions of this Court in Elegir v.
may unilaterally retire an employee earlier than the PAL and PAL v. ALPAP, the amount received by While retirement from service is similar to termination
legally permissible ages under the Labor Code, this Hassaram under the Plan must be considered part of his of employment insofar as they are common modes of
prerogative must be exercised pursuant to a mutually retirement pay. Combined with the retirement benefits ending employment, they are mutually exclusive, with
instituted early retirement plan. In other words, only under the CBA between PAL and ALPAP, this scheme varying juridical bases and resulting benefits.
the implementation and execution of the option may be would allow Hassaram to receive superior retirement Retirement from service is contractual, while
unilateral, but not the adoption and institution of the benefits, thereby rendering Article 287 of the Labor termination of employment is statutory.
retirement plan containing such option. Code inapplicable.
WON the CA correctly ruled that petitioner was not
WON Catotocan's receipt of her retirement benefits will It is clear from the provisions of the Plan that it is the illegally dismissed by respondents, but rather, retired
not stop her from pursuing an illegal dismissal complaint company that contributes to a "retirement fund" for the from his employment with the latter.
against LSQC. account of the pilots. These contributions comprise the
YES. Since the core premise of retirement is that it is a
benefits received by the latter upon retirement,
NO. Retirement is the result of a bilateral act of the voluntary agreement, it necessarily follows that if the
separation from service, or disability.
parties, a voluntary agreement between the employer intent to retire is not clearly established or if the
and the employee. WON Hassaram is entitled to receive retirement benefits retirement is involuntary, it is to be treated as a
under Article 287 of the Labor Code. discharge.
Here, the CA and the NLRC did not gravely abuse its
discretion in finding that LSQC did not illegally dismiss It can be clearly inferred from the language of Art 287 On the one hand, voluntary retirement cuts the
Catotocan from service. While it may be true that that it is applicable only to a situation where employment ties leaving no residual employer liability;
Catotocan was initially opposed to the idea of her on the other, involuntary retirement amounts to a
1. there is no CBA or other applicable
retirement at an age below 60 years, it must be stressed discharge, rendering the employer liable for
employment contract providing for retirement
that Catotocan's subsequent actions after her termination without cause. The employee's intent is
benefits for an employee, or
"retirement" are actually tantamount to her consent to decisive. In determining such intent, the relevant
the addendum to the LSQC's retirement policy of 2. there is a CBA or other applicable employment parameters to consider are
retiring her from service upon serving the school for at contract providing for retirement benefits for
1. the fairness of the process governing the
least thirty (30) continuous years. Catotocan performed an employee, but it is below the requirement
retirement decision,
all the acts to ratify her retirement in accordance with set by law.
LSQC's retirement policy. 2. the payment of stipulated benefits, and
Hassaram is a member of ALPAP and as such, is entitled
It must be stressed also that Catotocan's repeated to benefits from both the retirement plans under the 3. the absence of badges of intimidation or
application and availment of the re-hiring program of 1967 PAL-ALPAP CBA and the Plan. The provisions of coercion.
LSQC for qualified retirees for 3 consecutive years is a the CBA are therefore applicable.
In this case, petitioner's claim that respondents forced
supervening event that would reveal that she has In contrast, Article 287 would entitle a retiring pilot to him to retire is anchored on the supposed fact that at
already voluntarily and freely signified her consent to the equivalent of only 22.5 days of his monthly salary the start of school year 2014-2015, he was suddenly not
the retirement policy despite her initial opposition to it. for every year of service. This scheme was thus given any teaching load by the respondents on the
considered by the Court as inferior to the retirement ground that there were not enough enrollees in the
PAL v. Hassaram 2017
plans granted by PAL to the latter's pilots in Elegir and school. However, aside from such bare claims,
The determining factor in choosing which retirement PAL. petitioner has not shown any evidence that would
scheme to apply is still superiority in terms of corroborate the same. It is settled that bare allegations
In view of the undisputed fact that Hassaram has
benefits provided. of discharge, when uncorroborated by the evidence on
received his benefits under the Plan, he is now entitled
record, cannot be given credence.
The Court is inclined to hold that petitioner retired from
service, but nonetheless, pursued the filing of the
instant illegal dismissal case in order to recover the
proper benefits due to him. In fact, it is telling that he
never asked to be reinstated as he only sought the
payment of his retirement benefits. In view of the
foregoing, respondents must duly pay petitioner not
only his retirement benefits, but also his other
monetary claims.
On this note, case law instructs that in labor cases
where the concerned employee is entitled to the
wages/benefits prayed for, said employee is also
entitled to attorney's fees amounting to ten percent
(10%) of the total monetary award due him.

V. LABOR RELATIONS
A. Right to self-organization

1. Who may or may not exercise the right

a. Doctrine of necessary implication

2. Commingling or mixture of membership

3. Rights and conditions of membership

a. Nature of relationship

i. Member-Labor union

ii. Labor union federation

(a) Disaffiliation

(b) Substitutionary doctrine

B. Bargaining Unit

C. Bargaining Representative

1. Determination of representation status

D. Rights of labor organizations

1. Check off, assessment, agency fees

2. Collective bargaining
 a. Duty to bargain collectively

b. Collective Bargaining Agreement

i. Mandatory provisions in a Collective Bargaining Agreement

E. Unfair labor practices

1. Nature, aspects

2. By employers

3. By labor organizations

F. Peaceful concerted activities

1. By labor organization

a. Strike

i. Valid strikes as distinguished from illegal strikes

b. Picket

2. By employer

a. Lockout

3. Assumption of jurisdiction by Secretary of Labor and Employment

a. Industry indispensable to the national interest

b. Effects of assumption of jurisdiction

Unionism and Policy of State organization and to form, join, or assist labor
Two-fold purpose
1. Right to self-organization; organizations of their own choosing for purposes of 1. Collective bargaining and negotiation;
collective bargaining.
2. Right to collective bargaining and Ambulant, intermittent and itinerant workers, self-
2. Mutual aid and protection.
negotiations; employed people, rural workers and those without any 1. Who may or may not exercise the right
definite employers may form labor organizations for
3. Right to peaceful concerted activities. their mutual aid and protection. Qualified and Disqualified for Union
Membership
A. Right to self-organization
ARTICLE 254. Right of Employees in the Public Service. ✔ Those employed in commercial, industrial and
— Employees of government corporations established
ARTICLE 253. Coverage and Employees' Right to Self- under the Corporation Code shall have the right to agricultural enterprises;
Organization. — All persons employed in commercial, organize and to bargain collectively with their
industrial and agricultural enterprises and in religious, ✔ EEs of GOCCs WITHOUT original charters (Corpo
respective employers. All other employees in the civil
charitable, medical, or educational institutions, whether Code);
service shall have the right to form associations for
operating for profit or not, shall have the right to self- purposes not contrary to law.
✔ EEs of religious, charitable, medical or educational a. Doctrine of necessary implication 2. In a meeting called for the purpose;
institutions, for profit or not; Confidential employees, by Doctrine of Necessary 3. An application to cancel submitted by the
✔ Alien EEs Implication, are also disqualified for union board attested to by the president;
membership. They are those who 4. Filed in the RO which issued the Cert of
1. Working in the country;
1. assist or act in a confidential capacity in Reg.
2. With valid working permits issued by DOLE; regard
3. Rights and conditions of membership
3. Nationals of countries granting same rights to 2. to persons who formulate, determine, and
Filipinoworkers (RECIPROCITY rule); and 1) POLITICAL Rights;
effectuate management policies, specifically
4. Country of origin has ratified ILO 87 and 98 in the field of labor relations. ★ 5 YEAR terms.
as certified by DFA. For the disqualification to apply 2) Right to INFORMATION;
✔ All other workers FOR mutual aid and protection 1. He must be in a fiduciary relationship with 3) Deliberative and Decision-Making Right;
and NOT for collective bargaining; another to whom he reports or whom he
assists; 4) Rights over MONEY matters;
✔ Security guards;
2. The latter possesses labor-management a. Nature of relationship
✔ Workers in EPZs relations information; and
i. Member-Labor union
✘ EEs of GOCCs under Special charters; 3. He has access to that information by reason
Principal-Client Relationship. — Thus, a union
of his position.
✘ Managerial EEs; cannot waive the personal rights of a member.
The disqualification will NOT apply if
★ They are those who are vested with powers ii. Labor union federation
1. The information is business information; and
or prerogatives to lay down and execute Principal-Client Relationship. — Thus, a federation
management policies and/or hire, transfer, 2. The information may be labor-management cannot sequester the assets of a local to punish it.
suspend, lay-off, recall, discharge, assign or relations in nature but the employee’s access
thereto is accidental only. (a) Disaffiliation
discipline employees.
Non-abridgment of right to self-organization
★ Supervisory EEs are RELATIVELY prohibited 2. Commingling or mixture of membership
ARTICLE 257. Non-Abridgment of Right to Self-
in that they are not allowed to join unions of Mixed-membership is NOT a ground for the
Organization. — It shall be unlawful for any person to
rank and file by virtue of separation of cancellation of a union’s certificate of registration. The restrain, coerce, discriminate against or unduly
unions doctrine. grounds are limited to the following: interfere with employees and workers in their exercise
of the right to self-organization.
✘ Confidential EEs Cancellation of union registration
Such right shall include the right to form, join, or assist
✘ Members of a Cooperative; Considered as an inter or intra-union dispute labor organizations for the purpose of collective
★ Owners cannot bargain with themselves. GROUNDS bargaining through representatives of their own
choosing and to engage in lawful concerted activities for
✘ Members of International Orgs; a. Fraud in the ratification of Constitution and
the same purpose for their mutual aid and protection,
Bylaws;
★ By doctrine of incorporation, they are subject to the provisions of Article 264 of this Code.
b. Fraud in election of officers;
immune from suit.
c. Voluntary dissolution GR: The right of any person to join an
organization also includes the right to leave that
1. By ⅔ of members;
organization and join another one.
 EXC: The right to refrain from joining labor Purpose
organizations is, however, limited. It is employer by the simple expedient of changing their
bargaining agent. And it is in the light of this that the To act as the representative of its members for the
withdrawn by operation of law, where the parties purpose of collective bargaining.
phrase “said new agent would have to respect said
have agreed on a closed shop. contract” must be understood. It only means that the
employees, thru their new bargaining agent, cannot 1. Determination of representation status
EXC TO THE EXC
renege on their collective bargaining contract, except of Four (4) ways of determining a bargaining agent:
a. Members of the religious sect which prohibit course to negotiate with management for the
affiliation of their members in such labor shortening thereof. 1. Request for SEBA certification;
organization (1974 Basa); The “substitutionary” doctrine, therefore, cannot be 2. Certification election;
invoked to support the contention that a newly certified 3. Run-off election; OR
b. Employees who are already members of another
collective bargaining agent automatically assumes all
union at the time of the signing of the CBA (Art. the personal undertakings — like the no-strike 4. Consent election.
248 (e), Labor Code); stipulation here — in the collective bargaining
agreement made by the deposed union. When BBWU Request for SEBA Certification
c. Confidential employees who are excluded from
bound itself and its officers not to strike, it could not
the bargaining unit (2010 Bank of Phil Islands); ★ See DO 40-I-2015 on SEBA Certification
have validly bound also all the other rival unions
d. Employees excluded by express terms of the existing in the bargaining units in question. BBWU was Three scenarios
agreement. the agent of the employees, not of the other unions
which possess distinct personalities. To consider 1. Unorganized establishment with 1 LLO;
(b) Substitutionary doctrine UNION contractually bound to the no-strike stipulation 2. Unorganized establishment with > 1 LLO;
Benguet Consolidated v. BCI Employees & W Union- would therefore violate the legal maxim that res inter
alios acta alios nec prodest nec nocet. 3. Organized establishment.
PAFLU
In an unorganized establishment with 1 LLO
This principle, formulated as an initial compromise
solution to the problem facing it when there occurs a
B. Bargaining Unit If the RD finds the establishment unorganized with
shift in employees’ union allegiance after the execution only one legitimate labor organization, he/she shall
A "bargaining unit" has been defined as a group
of a bargaining contract with their employer, merely call a conference within five (5) work days for the
states that even during the effectivity of a collective of employees of a given employer, comprised of all or
submission of the following:
bargaining agreement executed between employer and less than all of the entire body of employees, which
employees thru their agent, the employees can change the collective interest of all the employees, consistent a. the names of employees in the covered
said agent but the contract continues to bind them up to with equity to the employer, indicate to be the best bargaining unit who signify their support for
its expiration date. They may bargain however for the suited to serve the reciprocal rights and duties of the the certification, provided that said
shortening of said expiration date.
parties under the collective bargaining provisions of employees comprise at least majority of
In formulating the “substitutionary” doctrine, the only the law. (UP v. Ferrer-Calleja) the number of employees in the covered
consideration involved was the employees’ interest in
the existing bargaining agreement. The agent’s interest bargaining unit; and
never entered the picture.
C. Bargaining Representative
b. certification under oath by the president of
The majority of the employees, as an entity under the the requesting union or local that all
statute, is the true party in interest to the contract, Exclusive bargaining agent
documents submitted are true and correct
holding rights through the agency of the union Refers to any legitimate labor organization duly based on his/her personal knowledge.
representative. Thus, any exclusive interest claimed by recognized or certified as the sole and exclusive
the agent is defeasible at the will of the principal. The submission shall be presumed to be true and
bargaining agent of all the employees in a bargaining
Stated otherwise, the “substitutionary” doctrine only correct unless contested under oath by any member
unit.
provides that the employees cannot revoke the validly of the bargaining unit during the validation
executed collective bargaining contract with their conference. For this purpose, the employer or any
 representative of the employer shall not be deemed a If in an organized establishment, the signature of at d. when a CBA has been registered in
party-in-interest but only as a by-stander to the least 25% of all employees in the bargaining unit is accordance with Article 231 of the Labor
process of certification. required. Code. Where such collective bargaining
If the requesting union or local fails to complete the Venue and Jurisdiction agreement is registered, the petition may be
requirements for SEBA certification during the filed only within sixty (60) days prior to its
With the Regional Office which issued the petitioning
conference, the request for SEBA certification shall be expiry (FREEDOM PERIOD).
union's certificate of registration or certificate of
referred to the election officer for the conduct of creation of chartered local. Role of Employer
election pursuant to RULE IX. Merely a bystander and may only participate:
At the option of the petitioner, a petition for
Action On The Submission. — RD shall issue during certification election and its supporting documents 1. By being furnished a copy of the petition; and
the conference a certification as SEBA enjoying the may also be filed online. 2. By providing the list of employees in the unit
rights and privileges of an exclusive bargaining agent
The petition shall be heard and resolved by the for pre-election.
of all the employees in the covered bargaining unit.
Mediator-Arbiter. Procedure
Effect Of Certification. — Upon the issuance of the
When to File? ★ Rules in the conduct of certification election
certification as SEBA, the certified union or local shall
A petition for certification election may be filed under DO 40-2003, as amended
enjoy all the rights and privileges of an exclusive
bargaining agent of all the employees in the covered anytime, except: 1. The petition for certification election is raffled by
bargaining unit. a. when a fact of voluntary recognition has been the RD to the Med-Arbiter.
entered or a valid certification, consent or 2. A copy of the petition is served to the employer.
In an unorganized establishment with > 1 LLO
run-off election has been conducted within
RD shall refer the same to the election officer for the 3. Notice of Preliminary Conference. — The
the bargaining unit within one (1) year prior
conduct of certification election. preliminary conference is to be held within ten
to the filing of the petition for certification
(10) working days from the mediator-arbiter's
In an organized establishment election. Where an appeal has been filed from
receipt of the petition.
RD shall refer the same to the mediator-arbiter for the order of the Med-Arbiter certifying the
results of the election, the running of the one 4. Preliminary Conference; Hearing. To
the determination of the propriety of conducting a
year period shall be suspended until the determine the following:
certification election in accordance with Rules VIII
and IX of the Rules. decision on the appeal has become final and a. the bargaining unit to be represented;
executory;
b. contending labor unions;
Certification Election
b. when the duly certified union has
c. possibility of a consent election;
Who may file? commenced and sustained negotiations in
good faith with the employer in accordance d. existence of any of the bars to
1. LLO;
with Article 250 of the Labor Code within the certification election; and
a. Independent union;
one year period referred to in the e. such other matters as may be relevant for
b. National union or federation; immediately preceding paragraph; the final disposition of the case.
c. Local chapter. c. when a bargaining deadlock to which an 5. Med-Arbiter checks if any of the grounds to
2. Employer, when requested to bargain incumbent or certified bargaining agent is a deny exists. If none, then the petition has to be
collectively, and the majority status of the party had been submitted to conciliation or granted as a matter of right.
requesting party is in doubt. arbitration or had become the subject of a The following are the grounds to deny:
valid notice of strike or lockout;
a. the petitioning union or national g. non-appearance of the petitioner for 8. Pre-election conference. Election Officer shall
union/federation is not listed in the two (2) consecutive scheduled cause the issuance of notice of pre-election
department's registry of legitimate conferences before the mediator-arbiter conference upon the contending unions and the
labor unions or that its registration despite due notice; and employer, which shall be scheduled within ten
certificate has been cancelled with h. absence of employer-employee (10) days from receipt of the assignment.
finality; relationship between all the members of The employer shall be required to submit the
b. failure of a local/chapter or national the petitioning union and the certified list of employees in the bargaining
union/federation to submit a duly issued establishment where the proposed unit.
charter certificate upon filing of the bargaining unit is sought to be 9. The pre-election conference shall set the
petition for certification election; represented. mechanics for the election and shall determine,
c. filing the petition before or after the 6. The Med-Arbiter issues an order of election. among others, the following:
freedom period of a duly registered The order granting the conduct of a a) date, time and place of the election,
collective bargaining agreement; certification election in an unorganized which shall not be later than forty-five
d. filing of a petition within one (1) year establishment shall not be subject to appeal. (45) days from the date of the first
from the date of recording of the Any issue arising therefrom may be raised by pre-election conference, and shall be on
voluntary recognition, or within the means of protest on the conduct and results of a regular working day and within the
same period from a valid certification, the certification election. employer's premises, unless
consent or run-off election where no The order granting the conduct of a certification circumstances require otherwise;
appeal on the results of the certification, election in an organized establishment and the b) list of eligible and challenged voters;
consent or run-off election is pending; decision dismissing or denying the petition, Inclusion-exclusion proceeding
e. where a duly certified union has whether in an organized or unorganized
i) All employees who are
commenced and sustained establishment, may be appealed to the Office of
members of the appropriate
negotiations with the employer within the Secretary within ten (10) days from receipt
bargaining unit three (3)
the one-year period, or thereof.
months prior to the filing of the
where there exists a bargaining The filing of the memorandum of appeal from the petition/request shall be eligible
deadlock which order or decision of the Med-Arbiter stays the to vote.
1) has been submitted to holding of any certification election.
ii) An employee who has been
conciliation or arbitration or The decision of the Secretary shall become final dismissed from work but has
2) has become the subject of a valid and executory after ten (10) days from receipt contested the legality of the
notice of strike or lockout where thereof by the parties. No motion for dismissal in a forum of
an incumbent or certified reconsideration of the decision shall be appropriate jurisdiction at the
bargaining agent is a party; entertained. time of the issuance of the order
f. in an organized establishment, the 7. Transmittal of Records to the Regional Office. for the conduct of a certification
failure to submit the twenty-five — Implementation of the decision shall not be election shall be considered a
percent (25%) signature requirement stayed unless restrained by the appropriate court. qualified voter, unless his/her
to support the filing of the petition for The RD shall cause the raffle of the case to an dismissal was declared valid in a
certification election; Election Officer who shall have control of the final judgment at the time of the
pre-election conference and election proceedings.
 conduct of the certification in the subject bargaining unit, shall be proclaimed
election. by the Med-Arbiter under any of the following statement or fraud under the circumstances
enumerated in Article 239.
c) number and location of polling places or conditions:
On the basis of the ruling in the above-cited case, it can
booths and the number of ballots to be a) no protest was filed or, even if one was be said that petitioner was correct in filing a petition for
prepared with appropriate translations, filed, the same was not perfected within cancellation of respondent's certificate of registration.
if necessary; the five-day period for perfection of the Petitioner's sole ground for seeking cancellation of
protest; respondent's certificate of registration — that its
d) name of watchers or representatives and members are managerial employees and for this reason,
their alternates for each of the parties b) no challenge or eligibility issue was its registration is thus a patent nullity for being an
during election; raised or, even if one was raised, the absolute violation of Article 245 of the Labor Code
resolution of the same will not materially which declares that managerial employees are ineligible
e) mechanics and guidelines of the election. to join any labor organization — is, in a sense, an
change the results of the elections.
10. Posting of Notices. accusation that respondent is guilty of
The winning union shall have the rights, misrepresentation for registering under the claim that
11. Inspection of polling place. its members are not managerial employees.
privileges and obligations of a duly certified
12. Casting of Votes. — If the voter inadvertently collective bargaining agent from the time the
spoils a ballot, he/she shall return it to the certification is issued. Consent election
Election Officer who shall destroy it and give Refers to the election voluntarily agreed upon by the
Where a majority of the valid votes cast results in
him/her another ballot. parties, with or without the intervention of the
"No Union" obtaining the majority, the Med-
Any member of the bargaining unit who is Arbiter shall declare such fact in the order. DOLE, to determine the issue of majority
unintentionally omitted in the master list of representation of all the workers in the appropriate
16. Appeal; finality of decision — The decision of the
voters may be allowed to vote if both parties collective bargaining unit.
Med-Arbiter may be appealed to the Secretary
agree, otherwise, he/she will be allowed to vote
within ten (10) days from receipt by the parties Principle of Preclusion of Collateral Attack
but the ballot is segregated.
of a copy thereof.
Under the doctrine of conclusiveness of judgment,
13. Canvassing of Votes.
Asian Institute of Management v. Asian Institute of which is also known as "preclusion of issues" or
14. Protest. General reservation to file a protest Management Faculty Association 2017 "collateral estoppel" issues actually and directly
shall be prohibited. The protesting party shall resolved in a former suit cannot again be raised in any
In case of alleged inclusion of disqualified employees
specify the grounds for protest. future case between the same parties involving a
in a union, the proper procedure for an employer like
The protesting party must formalize its protest petitioner is to directly file a petition for cancellation of different cause of action.
with the Med-Arbiter, with specific grounds, the union's certificate of registration due to
misrepresentation, false statement or fraud. Bar Rules
arguments and evidence, within five (5) days
after the close of the election proceedings. WON the BLR was correct in holding that being 1. Statutory Bar Rule;
composed of managerial employees is not a ground for
If not recorded in the minutes and formalized cancelling the certificate of registration of a labor 2. Certification Year Bar Rule;
within the prescribed period, the protest shall be organization. 3. Negotiations Bar Rule;
deemed dropped. NO. In Holy Child Catholic School v. Sto. Tomas, this 4. Bargaining Dead Lock Bar Rule;
15. Proclamation and Certification of the Result of Court declared that in case of alleged inclusion of
disqualified employees in a union, the proper procedure 5. Contract Bar Rule.
the Election. — Within twenty-four (24) hours
for an employer like petitioner is to directly file a
from final canvass of votes, there being a valid petition for cancellation of the union's certificate of
election, the sole and exclusive bargaining agent registration due to misrepresentation, false
Contract Bar rule 2. a bargaining deadlock to which an incumbent or It shall not bar the filing of a motion for the
BLR shall not entertain any petition for certification certified bargaining agent is a party had been immediate holding of another certification or
election or any other action which may disturb the submitted to conciliation or arbitration or had consent election within six (6) months from date of
administration of duly registered existing collective become the subject of valid notice of strike or declaration of failure of election.
bargaining agreements affecting the parties. lockout. A re-run election is then called.
The exceptions to the contract-bar rule are as follows: Certification Year Bar rule
Run-off election
1. during the 60-day freedom period; A certification election petition may not be filed
within one (1) year: Refers to an election between the labor unions
2. when the CBA is not registered with the BLR receiving the two (2) highest number of votes when a
or DOLE Regional Offices; 1. from the date of a valid certification, consent
certification election which provides for three (3) or
or run-off election; or
3. when the CBA, although registered, contains more choices results in no choice receiving a
provisions lower than the standards fixed by 2. from the date of SEBA certification. majority of the valid votes cast; provided, that the total
law; Valid election and Double majority rule number of votes for all contending unions is at least
fifty percent (50%) of the number of votes cast.
4. when the documents supporting its The following requisites should concur:
registration are falsified, fraudulent or Re-run election
1. The union should be legitimate;
tainted with misrepresentation; chanrobles
Refers to an election conducted
virtual law library 2. In case of organized establishments, the
petition is filed DURING the 60-day freedom 1. to break a tie between contending unions,
5. when the collective bargaining agreement is
period of a duly registered CBA; including between "no union" and one of the
not complete as it does not contain any of the
unions.
requisite provisions which the law requires; 3. In case of organized establishments, the
written support of at least 25% of the 2. after a failure of election has been declared
6. when the collective bargaining agreement
members of the bargaining unit; by the election officer and/or affirmed by the
was entered into prior to the 60-day freedom
mediator-arbiter.
period; 4. None of the bar rules is violated.
3. When the certification election is nullified.
7. when there is a schism in the union resulting Double majority rule simply requires that
in an industrial dispute wherein the collective 1. There should be at least a majority of all D. Rights of labor organizations
bargaining agreement can no longer foster eligible voters in the appropriate bargaining
industrial peace. unit who have cast their votes; AND 1) Right to REPRESENTATION;
Deadlock Bar rule 2. The certified agent attained at least a 2) Right to INFORMATION;
neither may a representation question be entertained majority of all valid votes cast
3) PROPERTY rights;
if: To declare and certify a certified bargaining agent.
1. before the filing of a petition for certification 4) TAX EXEMPTION; and
Failure of election
election, the duly recognized or certified union 5) Right to COLLECT Union dues.
has commenced negotiations with the employer Where the number of votes cast in a certification or
consent election is less than the majority of the 1. Check off, assessment, agency fees
within the one-year period from the date of a
valid certification, consent or run-off election or number of eligible voters and there are no material Check-off provision
from the date of voluntary recognition; or challenged votes, the Election Officer shall declare a
ARTICLE 113. Wage Deduction. — No employer, in his
failure of election. own behalf or in behalf of any person, shall make any
 3. Withholding tax; a. Duty to bargain collectively
deduction from the wages of his employees, except:
xxxx 4. EE’s debt to ER which is already due and ARTICLE 263. Meaning of Duty to Bargain Collectively.
(b) For union dues, in cases where the right of the demandable; — The duty to bargain collectively means
worker or his union to check-off has been recognized by
the employer or authorized in writing by the individual 5. Judgment against the worker where wages 1. the performance of a mutual obligation to meet
worker concerned; may be subject of attachment or execution and convene promptly and expeditiously in
xxxx but only for debts incurred for food, clothing, good faith
shelter, and medical attendance. 2. for the purpose of negotiating an agreement
There may be some SPECIAL ASSESSMENTS: with respect to wages, hours of work and all
6. Via court order; other terms and conditions of employment
a. Authorized by a written resolution of
7. Authorized by law such as premiums for SSS, including proposals for adjusting any
majority of all members; AND grievances or questions arising under such
PhilHealth, Pag-ibig.
b. Purpose is stated. agreement and
2. Collective bargaining 3. executing a contract incorporating such
Union Dues vs. Agency Fees
ARTICLE 261. Procedure in Collective Bargaining. — agreements if requested by either party but
Assessment of agency fees from non-union The following procedures shall be observed in collective such duty does not compel any party to agree
employees and deduction thereof from the bargaining: to a proposal or to make any concession.
employees’ salaries (Art. 248 [e]) even in the absence
a. When a party desires to negotiate an
of individual written authorization if the non-union b. Collective Bargaining Agreement
agreement, it shall serve a written notice upon
employees accept the benefits under the CBA. the other party with a statement of its ARTICLE 264. Duty to Bargain Collectively When There
The union’s right to agency fees is neither contractual proposals. The other party shall make a reply Exists a Collective Bargaining Agreement. — When there
thereto not later than ten (10) calendar days is a collective bargaining agreement, the duty to bargain
nor statutory but quasi-contractual. from receipt of such notice; collectively shall also mean that neither party shall
Requisites for validity of union dues and special b. Should differences arise on the basis of such terminate nor modify such agreement during its
assessments notice and reply, either party may request for a lifetime.
conference which shall begin not later than ten Freedom period. — However, either party can serve a
1. Authorization by a written resolution of the (10) calendar days from the date of request. written notice to terminate or modify the agreement at
majority of all the members at a general
c. If the dispute is not settled, the Board shall least sixty (60) days prior to its expiration
membership meeting duly called for the intervene upon request of either or both date. It shall be the duty of both parties to keep the
purpose; parties or at its own initiative and immediately status quo and to continue in full force and effect the
2. Secretary’s record of the minutes of said call the parties to conciliation meetings. The terms and conditions of the existing agreement during
Board shall have the power to issue subpoenas the 60-day period and/or until a new agreement is
meeting; requiring the attendance of the parties to such reached by the parties.
3. Individual written authorization (IWA) for meetings. It shall be the duty of the parties to
check-off duly signed by the employees participate fully and promptly in the
conciliation meetings the Board may call; i. Mandatory provisions in a Collective
concerned. Bargaining Agreement
d. During the conciliation proceedings in the
When not to require IWA Board, the parties are prohibited from doing 1. Grievance Procedure;
1. Assessment from non-members of SEBA of any act which may disrupt or impede the early 2. Voluntary Arbitration;
settlement of the disputes; and
agency fees;
e. The Board shall exert all efforts to settle 3. No Strike – No Lockout Clause;
★ Agency fees are QUASI-CONTRACTUAL. disputes amicably and encourage the parties to 4. Provision on wage increases.
2. Deductions for fees from mandatory submit their case to a voluntary arbitrator.
activities such as labor relations seminars;
Grievance machinery and Union security of employment. The obvious purpose is to safeguard Term of CBA and Renegotiation of CBA;
clause and ensure the continued existence of the union. Retroactivity

ARTICLE 273. Grievance Machinery and Voluntary Ratification and Registration of CBA ARTICLE 265. Terms of a Collective Bargaining
Arbitration. — The parties to a CBA shall include therein Agreement. — Any CBA that the parties may enter into
provisions that will ensure the mutual observance of its When Needed? shall, insofar as the representation aspect is
terms and conditions. a. Posting of CBA. The general rule is that the CBA concerned, be for a term of five (5) years.
They shall establish a machinery for the adjustment is required to be posted in two (2) conspicuous No petition questioning the majority status of the
and resolution of grievances arising from the places in the work premises, for a period of at incumbent bargaining agent shall be entertained and no
interpretation or implementation of their CBA and least five (5) days prior to its ratification. certification election shall be conducted by the DOLE
those arising from the interpretation or enforcement of outside of the sixty (60) day period immediately
company personnel policies. In the case of multi-employer bargaining, two (2) before the date of expiry of such five-year term of the
All grievances submitted to the grievance machinery signed copies of the CBA should be posted for at CBA.
which are not settled within seven (7) calendar days least five (5) days in two (2) conspicuous areas in All other provisions of the CBA shall be renegotiated
from the date of its submission shall automatically be each workplace of the employer units concerned. not later than three (3) years after its execution.
referred to voluntary arbitration prescribed in the Said CBA shall affect only those employees in
CBA. Any agreement on such other provisions of the CBA
the bargaining units who have ratified it. entered into within six (6) months from the date of
For this purpose, parties to a CBA shall name and
designate in advance a Voluntary Arbitrator or panel of b. Posting is mandatory. This requirement on the expiry of the term of such other provisions as fixed in
Voluntary Arbitrators, or include in the agreement a posting of the CBA is considered a mandatory such CBA, shall retroact to the day immediately
procedure for the selection of such Voluntary Arbitrator following such date.
requirement. Non-compliance therewith will
or panel of Voluntary Arbitrators, preferably from the render the CBA ineffective. (Associated Trade If any such agreement is entered into beyond six
listing of qualified Voluntary Arbitrators duly months, the parties shall agree on the duration of
accredited by the Board. Unions [ATU] v. Trajano).
retroactivity thereof. In case of a deadlock in the
In case the parties fail to select a Voluntary Arbitrator c. Posting is the responsibility of the employer. renegotiation of the CBA, the parties may exercise their
or panel of Voluntary Arbitrators, the Board shall The posting of copies of the CBA is the rights under this Code.
designate the Voluntary Arbitrator or panel of responsibility of the employer which can easily
Voluntary Arbitrators, as may be necessary, pursuant to comply with the requirement through a mere What are the remedies in case of CBA deadlock?
the selection procedure agreed upon in the CBA, which
shall act with the same force and effect as if the mechanical act. (Associated Labor Union [ALU] vs. In case of a deadlock in the negotiation or
Arbitrator or panel of Arbitrators have been selected by Ferrer-Calleja). renegotiation of the collective bargaining agreement,
the parties. d. Ratification by majority of the members of the the parties may exercise the following rights under
bargaining unit. The ratification of the CBA the Labor Code:
"Grievance" refers to any question by either the
should be made not by the majority of the 1. Conciliation and mediation by the NCMB,
employer or the union regarding the interpretation or
members of the bargaining union but by the DOLE.
implementation of any provision of the collective
majority of the members of the bargaining
bargaining agreement or interpretation or 2. Declaration of a strike or lockout, as the
unit which is being represented by the
enforcement of company personnel policies. case may be.
bargaining union in the negotiations.
A “union security clause” is a stipulation in the CBA 3. Referral of case to compulsory or voluntary
e. Registration of CBA. The CBA shall be registered
whereby the management recognizes that the arbitration.
with the DOLE.
membership of employees in the union which Hongkong Bank Independent Labor Union v. HSBC 2018
negotiated said agreement should be maintained and
WON HSBC could validly enforce the credit-checking
continued as a condition for employment or retention
requirement under its BSP-approved Plan in processing
 the salary loan applications of covered employees even be determined in accordance with the general
remembered that under Article 245 of the Labor Code,
when the said requirement is not recognized under the principles of insurance law. Being in the nature of a
managerial employees are not eligible to join, assist or
CBA. non-life insurance contract and essentially a contract of
form any labor organization. To be entitled to the
NO. Although jurisprudence recognizes the validity of benefits under the CBA, the employees must be indemnity, the CBA provision obligates MMPC to
the exercise by an employer of its management members of the bargaining unit, but not necessarily of indemnify the covered employees’ medical expenses
prerogative and will ordinarily not interfere with such, the labor organization designated as the bargaining incurred by their dependents but only up to the extent
this prerogative is not absolute and is subject to agent. of the expenses actually incurred. This is consistent
limitations imposed by law, collective bargaining with the principle of indemnity which proscribes the
agreement, and general principles of fair play and Article 245 of the Labor Code expressly states that insured from recovering greater than the loss.
justice. "managerial employees are not eligible to join, assist or
form any labor organization." An exception to this
A collective bargaining agreement or CBA is the prohibition is when the employer extends the CBA E. Unfair labor practices
negotiated contract between a legitimate labor benefits to the managerial employee as a matter of
organization and the employer concerning wages, hours policy or established practice. Complainant failed to 1. Nature, aspects
of work and all other terms and conditions of present evidence to justify his claim. He failed to
employment in a bargaining unit. Thus, where the CBA sufficiently establish that there is an established ARTICLE 258. Concept of Unfair Labor Practice and
is clear and unambiguous, it becomes the law between company practice of extending the CBA concessions to Procedure for Prosecution Thereof. — Unfair labor
the parties and compliance therewith is mandated by managerial employees. To be considered as a company practices violate the constitutional right of workers
the express policy of the law. practice, the act of extending the benefits of the CBA to and employees to self-organization, are inimical to
In the present controversy, the Plan was never made managerial employees must have been practiced for a the legitimate interests of both labor and
part of the CBA. Tolerating HSBC's conduct would be long period of time and must be shown to be consistent management, including their right to bargain
tantamount to allowing a blatant circumvention of and deliberate. collectively and otherwise deal with each other in an
Article 253 of the Labor Code. It would contravene the atmosphere of freedom and mutual respect, disrupt
express prohibition against the unilateral Mitsubishi Motors Phils Salaried Employees Union v. industrial peace and hinder the promotion of healthy
modification of a CBA during its subsistence and Mitsubishi Motors Phils Corp. 2013 and stable labor-management relations.
even thereafter until a new agreement is reached. Consequently, unfair labor practices are not only
WON member-employees are entitled to full violations of the civil rights of both labor and
HSBC's enforcement of credit checking on salary loans reimbursement of medical expenses incurred by their
under the CBA invalidly modified the latter's provisions management but are also criminal offenses against the
dependents regardless of any amounts paid by the State which shall be subject to prosecution and
thereon through the imposition of additional latter’s health insurance provider.
requirements which cannot be found anywhere in punishment.
the CBA. NO. The conditions set forth in the CBA provision Subject to the exercise by the President or by the SOLE
indicate an intention to limit MMPC’s liability only to of the powers vested in them by Articles 263 and 264 of
Societe Internationale De Telecommunications v. actual expenses incurred by the employees’ this Code, the civil aspects of all cases involving
Huliganga 2018 dependents, that is, excluding the amounts paid by unfair labor practices, which may include claims for
dependents’ other health insurance providers. actual, moral, exemplary and other forms of
Managerial employees are not eligible to join, assist or The condition that payment should be direct to the damages, attorney's fees and other affirmative
form any labor organization. An exception to this hospital and doctor implies that MMPC is only liable to relief, shall be under the jurisdiction of the Labor
prohibition is when the employer extends the CBA pay medical expenses actually shouldered by the Arbiters. The Labor Arbiters shall give utmost priority
benefits to the managerial employee as a matter of employees’ dependents. It follows that MMPC’s liability to the hearing and resolution of all cases involving
policy or established practice. is limited, that is, it does not include the amounts paid unfair labor practices. They shall resolve such cases
WON Huliganga, as a managerial employee, is entitled to by other health insurance providers. This condition is within thirty (30) calendar days from the time they are
the same retirement benefits as those of rank-and-file obviously intended to thwart not only fraudulent claims submitted for decision.
employees. but also double claims for the same loss of the Recovery of civil liability in the administrative
dependents of covered employees. proceedings shall bar recovery under the Civil Code.
NO. As a managerial employee of SITA, Huliganga is not
entitled to retirement benefits exclusively granted to Since the subject CBA provision is an insurance No criminal prosecution may be instituted without a
the rank-and-file employees under the CBA. It must be contract, the rights and obligations of the parties must
 anti-union bias or because of their connection with an
final judgment finding that an unfair labor practice was performed by union members when such will established collateral plan of coercion or interference.
committed, having been first obtained. During the interfere with, restrain or coerce employees in
pendency of such administrative proceeding, the the exercise of their right to self-organization; 3. By labor organizations
running of the period of prescription of the criminal d. To initiate, dominate, assist or otherwise
offense herein penalized shall be considered interfere with the formation or administration ARTICLE 260. Unfair Labor Practices of Labor
interrupted: of any labor organization, including the giving Organizations. — It shall be unfair labor practice for a
Provided, however, That the final judgment in the of financial or other support to it or its labor organization, its officers, agents or
administrative proceedings shall not be binding in the organizers or supporters; representatives:
criminal case nor be considered as evidence of guilt but e. To discriminate in regard to wages, hours of
merely as proof of compliance of the requirements a. To restrain or coerce employees in the
work and other terms and conditions of
therein set forth. exercise of their right to self-organization.
employment in order to encourage or
However, a labor organization shall have the
discourage membership in any labor
1. It is a violation of civil rights of both labor and right to prescribe its own rules with respect to
organization.
the acquisition or retention of membership;
management, as well as a criminal offense f. To dismiss, discharge or otherwise prejudice or
against the State. b. To cause or attempt to cause an employer to
discriminate against an employee for having
discriminate against an employee, including
2. It must have a proximate and causal connection given or being about to give testimony discrimination against an employee with
with any of the following: under this Code; respect to whom membership in such
g. To violate the duty to bargain collectively; organization has been denied or to terminate
a. Exercise of the right to self-organization; an employee on any ground other than the
h. To pay negotiation or attorney's fees to the
b. Right to collective bargaining; or usual terms and conditions under which
union or its officers or agents as part of the
membership or continuation of membership is
c. Compliance with CBA. settlement of any issue in collective bargaining
made available to other members;
or any other dispute; or
3. To be a ULP, the following must concur: c. To violate the duty, or refuse to bargain
i. To violate a collective bargaining agreement.
collectively with the employer, provided it is the
a. There is ER-EE relationship between
Only the officers and agents of corporations, representative of the employees;
offender and offended party; AND
associations or partnerships who have actually d. To cause or attempt to cause an employer to
b. The act done is expressly defined as an participated in, authorized or ratified unfair labor pay or deliver or agree to pay or deliver any
act of ULP. practices shall be held criminally liable. money or other things of value, in the nature of
an exaction, for services which are not
2. By employers Totality of Conduct Doctrine performed or not to be performed, including
the demand for fee for union negotiations;
ARTICLE 259. Unfair Labor Practices of Employers. — It The culpability of an employer's remarks were to be e. To ask for or accept negotiation or attorney's
shall be unlawful for an employer to commit any of the evaluated not only on the basis of their implicit fees from employers as part of the settlement
following unfair labor practices: implications, but were to be appraised against the of any issue in collective bargaining or any
background of and in conjunction with collateral other dispute; or
a. To interfere with, restrain or coerce
employees in the exercise of their right to self- circumstances. f. To violate a collective bargaining agreement.
organization; Only the officers, members of governing boards,
Under this doctrine, expressions of opinion by an
b. To require as a condition of employment that a employer which, though innocent in themselves, representatives or agents or members of labor
person or an employee shall not join a labor associations or organizations who have actually
frequently were held to be culpable because of the
organization or shall withdraw from one to participated in, authorized or ratified unfair labor
which he belongs; circumstances under which they were uttered, the practices shall be held criminally liable.
history of the particular employer's labor relations or
c. To contract out services or functions being
Surface bargaining The typical yellow dog contract embodies the
following stipulations: otherwise, they shall be forever barred.
Defined as “going through the motions of negotiating”
without any legal intent to reach an agreement. 1. a representation by the employee that he is
not a member of a labor organization; Reliefs against ULP
It involves the question of whether an employer’s
conduct demonstrates an unwillingness to bargain in 2. a promise by the employee that he will not 1. Cease and Desist Order. From such ULP.
good faith or is merely hard bargaining. There can be join a union; and
2. Affirmative Order. Order to reinstate employee
no surface bargaining, absent any evidence that 3. a promise by the employee that upon joining with backpay from date of discrimination.
management had done acts, both at and away from a labor organization, he will quit his
the bargaining table, which tend to show that it did employment. 3. Order to Bargain; Mandated CBA.
not want to reach an agreement with the union or to
Runaway shop 4. Disestablishment. Directing the employer to
settle the differences between it and the union. It
withdraw all recognition from the dominated
must be emphasized that the duty to bargain “does Is an industrial plant that is moved by its owners from
one location to another to escape union labor labor union and to disestablish the same.
not compel either party to agree to a proposal or
require the making of a concession.” Hence, the regulations or state laws. It may also be a relocation United Polyresins, Inc. v. Pinuela 2017
parties’ failure to agree does not amount to ULP under motivated by anti-union animus rather than for
WON Pinuela was illegally dismissed as the charges of
Article 248 [g] for violation of the duty to bargain. business reasons. misappropriation against him were unsubstantiated.
Blue sky bargaining Contracting out YES. Respondent's expulsion from PORFA is grounded
The act of an employer in having work or certain on the union's Constitution. However, these provisions
Making exaggerated or unreasonable proposals.
refer to impeachment and recall of union officers, and
services or functions being performed by union
In order to be considered as unfair labor practice, not expulsion from union membership. In short, any
members contracted out is not generally an unfair officer found guilty of violating these provisions shall
there must be proof that the demands made by the
labor practice act. It is only when the contracting out simply be removed, impeached or recalled, from office,
union were exaggerated or unreasonable.
of a job, work or service being performed by union but not expelled or stripped of union membership.
Featherbedding members will interfere with, restrain or coerce It was therefore an error on the part of PORFA and
According to this doctrine, it shall be unfair labor employees in the exercise of their right to self- petitioners to terminate respondent's employment
practice for a labor organization, its officers, agents or organization that it shall be unlawful and shall based on said provision of the union's Constitution.
representatives to cause or attempt to cause an constitute unfair labor practice. Such a ground does not constitute just cause for
termination.
employer to pay or deliver or agree to pay or deliver Company Union
any money or other things of value, in the nature of an A review of the PORFA Constitution itself reveals that
To initiate, dominate, assist or otherwise interfere the only provision authorizing removal from the union
exaction, for services which are not performed or not
with the formation or administration of any labor is found in Article X, Section 6, that is, on the ground of
to be performed, including the demand for fee for failure to pay union dues, special assessments,
organization, including the giving of financial or other
union negotiations. fines, and other mandatory charges.
support to it or its organizers or supporters
Yellow dog contract The matter of respondent's alleged failure to return
Prescriptive period petitioners' P300K which was lent to PORFA is
An agreement which exacts from workers as a
immaterial as well. It may not be used as a ground to
condition of employment, that they shall not join or ARTICLE 305. Offenses. — Offenses penalized under terminate respondent's employment; under the Labor
belong to a labor organization, or attempt to organize this Code and the rules and regulations issued pursuant Code, such a contribution by petitioners to PORFA is
one, during their period of employment or that they thereto shall prescribe in three (3) years. illegal and constitutes unfair labor practice.
shall withdraw therefrom, in case they are already All unfair labor practice arising from Book V shall
members of a labor organization. be filed with the appropriate agency within one (1) F. Peaceful concerted activities
year from accrual of such unfair labor practice;
 d. Deregistration of CBAs;
ARTICLE 278. Strikes, Picketing, and Lockouts. — f. A decision to declare a strike must be
approved by a majority of the total union e. Validity/invalidity of union affiliation or
a. It is the policy of the State to encourage free
membership in the bargaining unit disaffiliation;
trade unionism and free collective bargaining.
concerned, obtained by secret ballot in
b. Workers shall have the right to engage in f. Validity/invalidity of acceptance/non-acceptance
meetings or referenda called for that purpose.
concerted activities for purposes of collective for union membership;
bargaining or for their mutual benefit and A decision to declare a lockout must be
g. Validity/invalidity of impeachment/expulsion
protection. The right of legitimate labor approved by a majority of the board of
organizations to strike and picket and of directors of the corporation or association or of of union and workers' association officers and
employers to lockout, consistent with the the partners in a partnership, obtained by members;
national interest, shall continue to be secret ballot in a meeting called for that
h. Validity/invalidity of the SEBA certification;
recognized and respected. purpose.
The decision shall be valid for the duration of i. Opposition to application for union and CBA
However, no labor union may strike and no
the dispute based on substantially the same registration;
employer may declare a lockout on grounds
involving inter-union and intra-union grounds considered when the strike or lockout j. Violations of or disagreements over any provision
disputes. vote was taken.
in a union or workers' association constitution
In every case, the union or the employer shall
c. In cases of bargaining deadlocks, the duly and by-laws;
furnish the DOLE the results of the voting at
certified or recognized bargaining agent may least seven (7) days before the intended k. Disagreements over chartering or registration
file a notice of strike or the employer may file a strike or lockout, subject to the cooling-off of labor organizations and collective bargaining
notice of lockout with the DOLE at least 30 period herein provided.
days before the intended date thereof. agreements;

"Intra-Union Dispute" refers to any conflict between and l. Violations of the rights and conditions of union
In cases of unfair labor practice, the period of
notice shall be 15 days and in the absence of a among union members, including grievances arising from or workers' association membership;
duly certified or recognized bargaining agent, any violation of the rights and conditions of membership, m. Violations of the rights of legitimate labor
the notice of strike may be filed by any
violation of or disagreement over any provision of the organizations, except interpretation of collective
legitimate labor organization in behalf of its
members. union's constitution and by-laws, or disputes arising from bargaining agreements; and
chartering or affiliation of union. n. Such other disputes or conflicts involving the
However, in case of dismissal from employment
of union officers duly elected in accordance "Inter-Union Dispute" refers to any conflict between and rights to self-organization, union membership
with the union constitution and by-laws, which among legitimate labor unions involving representation and collective bargaining
may constitute union busting where the questions for purposes of collective bargaining or to any
existence of the union is threatened, the 15- 1. Between and among legitimate labor
other conflict or dispute between legitimate labor unions. organizations; or
day cooling-off period shall not apply and the
union may take action immediately. Inter/intra-union disputes shall include: 2. Between and among members of a union
d. xxx a. Cancellation of registration of a labor or workers' association.
e. During the cooling-off period, it shall be the organization filed by its members or by another
1. By labor organization
duty of the DOLE to exert all efforts at labor organization;
mediation and conciliation to effect a b. Conduct of election of union and workers' a. Strike
voluntary settlement. Should the dispute "Strike" refers to any temporary stoppage of work by
association officers/nullification of election of
remain unsettled until the lapse of the requisite
number of days from the mandatory filing of union and workers' association officers; the concerted action of employees as a result of a
the notice, the labor union may strike or the labor or industrial dispute.
c. Audit/accounts examination of union or
employer may declare a lockout.
workers' association funds;
 "Strike Vote Balloting" refers to the secret balloting "Preventive Mediation Cases" refer to labor to recognize the union or the so-called “Union-
undertaken by the members of the union in the disputes which are the subject of a formal or informal Recognition Strike.”
bargaining unit concerned to determine whether or request for conciliation and mediation assistance 10. The local union and not the federation is liable to
not to declare a strike in meetings or referenda called sought by either or both parties or upon the initiative pay damages in case of illegal strike.
for that purpose. of the Board.
When a strike is ILLEGAL
i. Valid strikes as distinguished from illegal Summary of principles governing strikes
strikes 1. Doesn’t comply with procedural requirements;
1. A strike or lockout is illegal if any of the legal
There are only TWO(2) strikeable grounds: 2. For an unlawful purpose:
requisites is not complied with. Procedural
1. Collective bargaining deadlock; AND requirements are mandatory. a. To compel dismissal of EE;

2. ULP. 2. A strike or lockout is illegal if it is based on non- b. Force recognition of union;

strikeable issues (e.g., inter-union or intra-union c. For trivial and puerile purpose;
Where to file? Regional branch of the NCMB having
disputes or wage distortion).
jurisdiction over the workplace. d. To circumvent contracts and judicial
3. A strike or lockout is illegal if the issues involved orders;
Who may file?
are already subject of compulsory or voluntary
1. Any certified bargaining agent; 3. Based on non-strikeable grounds
arbitration or conciliation or the steps in
2. If none, any LLO on the ground of ULP only. grievance machinery are not exhausted. a. Inter and Intra union disputes;

Requisites of a Valid Strike 4. A strike or lockout is illegal if unlawful means b. Simple violation of CBA;

1. Based on a valid and factual ground; were employed or prohibited acts or practices c. Violation of labor standards;
were committed e.g., Use of force, violence, d. Legislated wage orders; wage distortion.
2. A notice of strike filed with the NCMB;
threats, coercion, etc.; Barricades, blockades and
3. Notice of strike vote to the NCMB, at least 24 4. Didn’t bargain collectively first;
obstructions of ingress to or egress from the
hours before such vote; company premises. 5. Violated the no strike no lockout clause;
4. Strike vote wherein at least a majority of the 5. A strike or lockout is illegal if the notice of strike 6. Failure to submit issues to grievance procedure
members of the union approve the holding of or notice of lockout is already converted into a and exhaust the steps therein;
strike through secret balloting in a meeting called preventive mediation case. 7. While C-M is ongoing at NCMB;
for the purpose;
6. A strike or lockout is illegal if staged in violation 8. Based on issues already brought to arbitration;
5. Strike vote report submitted at least 7 days of the “No-Strike, No-Lockout” clause in the
before intended date of strike; 9. Pending case involving same ground in the notice
collective bargaining agreement.
of strike;
6. Cooling off period. 7. A strike or lockout is illegal if staged in violation
10. In defiance of an assumption or certification or
a. Union busting = NONE; of a temporary restraining order or an
return-to-work order;
b. ULP = 15 days; injunction or assumption or certification
order. 11. In violation of a TRO or an injunction order;
c. CBD = 30 days;
8. A strike is illegal if staged by a minority union. 12. After notice of strike converted to preventive
From date of notice of strike is filed. mediation case;
9. A strike or lockout is illegal if conducted for
7. 7 day waiting period or strike ban after 13. Against prohibition by law;
unlawful purpose/s e.g. Strike to compel
submission of strike vote report.
dismissal of employee or to compel the employer 14. By a minority union;
15. By an illegitimate union;
 16. By dismissed EEs; Improved offer and reduced offer balloting
c. No employer shall use or employ any strike-
17. In violation of company code of conduct; breaker, nor shall any person be employed as ARTICLE 280. Improved Offer Balloting. — In an effort
18. As protest rallies in front of government offices; a strike-breaker. to settle a strike, the DOLE shall conduct a referendum
d. No public official or employee, including by secret balloting on the improved offer of the
19. As welga ng bayan.
officers and personnel of the AFP or PNP, or employer on or before the 30th day of the strike.
Prohibited activities and Strike area armed person, shall bring in, introduce or When at least a majority of the union members vote to
escort in any manner, any individual who seeks accept the improved offer the striking workers shall
ARTICLE 279. Prohibited Activities. — to replace strikers in entering or leaving the immediately return to work and the employer shall
premises of a strike area, or work in place of thereupon readmit them upon the signing of the
a. No labor organization or employer shall the strikers.
declare a strike or lockout without first agreement.
having bargained collectively or without first The police force shall keep out of the picket In case of a lockout, the DOLE shall also conduct a
having filed the notice required or without the lines unless actual violence or other criminal referendum by secret balloting on the reduced offer of
necessary strike or lockout vote first having acts occur therein. the union on or before the 30th day of the lockout.
been obtained and reported to the DOLE. When at least a majority of the board of directors or
e. No person engaged in picketing shall commit
No strike or lockout shall be declared after any act of violence, coercion or intimidation or trustees or the partners holding the controlling interest
assumption of jurisdiction by the President or obstruct the free ingress to or egress from the in the case of a partnership vote to accept the reduced
the SOLE or after certification or submission of employer's premises for lawful purposes, or offer, the workers shall immediately return to work and
the dispute to compulsory or voluntary obstruct public thoroughfares. the employer shall thereupon readmit them upon the
arbitration or during the pendency of cases signing of the agreement.
involving the same grounds for the strike or “Strike area" means the establishment, warehouses,
lockout. In pari delicto rule
depots, plants or offices, including the sites or
Any worker whose employment has been premises used as runaway shops, of the employer When both employer and union are equally at fault,
terminated as a consequence of any unlawful
struck against, as well as the immediate vicinity the law leaves them as they are and denies recovery
lockout shall be entitled to reinstatement with
full backwages. actually used by picketing strikers in moving to and by either one of them.
fro before all points of entrance to and exit from said
Any union officer who knowingly Prohibition against arrest and detention of
participates in an illegal strike and any establishment. union members
worker or union officer who knowingly Liabilities in Illegal Strike
participates in the commission of illegal acts ARTICLE 281. Requirement for Arrest and Detention. —
during a strike may be declared to have lost his Knowingly Committed Except on grounds of national security and public peace
employment status. Participated Illegal Acts or in case of commission of a crime, no union members
Mere participation of a worker in a lawful or union organizers may be arrested or detained for
strike shall not constitute sufficient ground for Union Officer DISMISSED DISMISSED union activities without previous consultations with the
termination of his employment, even if a Secretary of Labor.
replacement had been hired by the employer Union Member - DISMISSED
during such lawful strike.
"Strike-breaker" means any person who obstructs, Labor Dispute and Innocent bystander rule
b. No person shall obstruct, impede, or interfere impedes, or interferes with by force, violence,
with by force, violence, coercion, threats or "Labor dispute" includes any controversy or matter
coercion, threats, or intimidation any peaceful concerning terms and conditions of employment or the
intimidation, any peaceful picketing by
picketing affecting wages, hours or conditions of work association or representation of persons in negotiating,
employees during any labor controversy or in
the exercise of the right to self-organization or or in the exercise of the right of self-organization or fixing, maintaining, changing or arranging the terms
collective bargaining, or shall aid or abet such collective bargaining. and conditions of employment, regardless of whether
obstruction or interference. the disputants stand in the proximate relation of
 employer and employee.
2. By employer
comply with such orders, prohibitions and/or
a. Lockout injunctions as are issued by the SOLE or the
ARTICLE 271. Employer as Bystander. — In all cases, Commission, under pain of immediate disciplinary
whether the petition for certification election is filed by "Lockout" refers to the temporary refusal of an
action, including dismissal or loss of employment status
an employer or a legitimate labor organization, the employer to furnish work as a result of a labor or or payment by the locking-out employer of backwages,
employer shall not be considered a party thereto with a industrial dispute. damages and other affirmative relief, even criminal
concomitant right to oppose a petition for certification prosecution against either or both of them.
election. The employer's participation in such 3. Assumption of jurisdiction by Secretary of
proceedings shall be limited to: Labor and Employment The foregoing notwithstanding, the President of the
Philippines shall not be precluded from determining the
1. being notified or informed of petitions of such When, in his opinion, there exists a labor dispute industries that, in his opinion, are indispensable to the
nature; and causing or likely to cause a strike or lockout in an national interest, and from intervening at any time and
industry indispensable to the national interest, the assuming jurisdiction over any such labor dispute in
2. submitting the list of employees during the pre-
SOLE may order to settle or terminate the same.
election conference should the Med-Arbiter act
favorably on the petition. 1. assume jurisdiction over the dispute and
decide it or Doctrine of great breadth of discretion
Anti-Injunction Ban 2. certify the same to the Commission for
compulsory arbitration. The “great breadth of discretion” by the Secretary
ARTICLE 266. Injunction Prohibited. — No temporary once he assumes jurisdiction over a labor dispute is
or permanent injunction or restraining order in any Such assumption or certification shall have the effect of recognized.
case involving or growing out of labor disputes shall be automatically enjoining the intended or impending
issued by any court or other entity, except as otherwise strike or lockout as specified in the assumption or Appeal to Office of the President, when allowed and
provided in Articles 218 and 264 of this Code. certification order. procedure, AO 22-2011
If one has already taken place at the time of assumption The DOLE Secretary may assume jurisdiction over a
GR: No injunction order growing out of labor or certification, all striking or locked out employees
labor dispute, or certify it to the NLRC for compulsory
shall immediately return to work and the employer
disputes. arbitration, if, in his opinion, it may cause or likely to
shall immediately resume operations and readmit all
EXC: workers under the same terms and conditions cause a strike or lockout in an industry indispensable
prevailing before the strike or lockout. to the national interest. The President may also
1. Commission of prohibited activities;
In labor disputes adversely affecting the continued exercise the power to assume jurisdiction over a labor
2. Prospect of irreparable damage; operation of such hospitals, clinics or medical dispute.
3. National interest cases. institutions, it shall be the duty of the striking union or
locking-out employer to provide and maintain an a. Industry indispensable to the national interest
b. Picket effective skeletal workforce of medical and other health
Sec 16, Rule XXII, Book V, as created by DOLE
personnel, whose movement and services shall be
Marching to-and-fro with placards that make known Department Order No. 040-H-13
unhampered and unrestricted, as are necessary to
the issues between the establishment and the insure the proper and adequate protection of the life 1. hospital sector;
workers. and health of its patients, most especially emergency
cases, for the duration of the strike or lockout. 2. electric power industry;
Picketing is limited to harmless marching by
In such cases, therefore, the SOLE may immediately 3. water supply services, to exclude small water
employees who carry placards or use speech to
assume, within twenty four (24) hours from supply services such as bottling and refilling
attract the public to their cause. knowledge of the occurrence of such a strike or lockout, stations;
jurisdiction over the same or certify it to the
Commission for compulsory arbitration. For this 4. air traffic control; and
purpose, the contending parties are strictly enjoined to
 5. such other industries as may be recommended by
the National Tripartite Industrial Peace Council the wages of the dismissed employee during the period
of appeal until reversal by the higher court."
(TIPC).
There is no order of reinstatement from a Labor Arbiter
b. Effects of assumption of jurisdiction in the case at bar, instead, what is at issue is the return-
Effect of such assumption or certification of labor to-work order from the SOLE.
dispute to the NLRC An order of reinstatement is different from a
return-to-work order. The award of reinstatement,
a. On intended or impending strike or lockout —
including backwages, is awarded by a Labor Arbiter to
automatically enjoined even if a Motion for an illegally dismissed employee pursuant to Article 294.
Reconsideration is filed. On the other hand, a return-to-work order is issued by
b. On actual strike or lockout — strikers or locked the SOLE when he or she assumes jurisdiction over a
out employees should immediately return to labor dispute in an industry that is considered
indispensable to the national interest.
work and employer should readmit them back.
c. On cases filed or may be filed — All shall be Return-to-work and reinstatement orders are both
immediately executory; however, a return-to-work
subsumed/absorbed by the assumed or certified
order is interlocutory in nature, and is merely meant
case except when the order specified otherwise. to maintain status quo while the main issue is being
The parties to the case should inform the DOLE threshed out in the proper forum. In contrast, an order
Secretary of pendency thereof. of reinstatement is a judgment on the merits handed
down by the Labor Arbiter pursuant to the original and
Manggagawa ng Komunikasyon sa Pilipinas v. PLDT exclusive jurisdiction provided for under Article 224(a).
2017 Leonen
WON the return-to-work order of the SOLE was rendered VI. MANAGEMENT PREROGATIVE
moot when the NLRC upheld the validity of the
redundancy program.
YES. When petitioner filed its Motion for Execution on
pursuant to this Court's ruling there was no longer any
existing basis for the return-to-work order. This was
because the SOLE's return-to-work order had been
superseded by the NLRC's Resolution. Hence, the SOLE
did not err in dismissing the motion for execution on
the ground of mootness.
Petitioner cites Garcia v. Philippine Airlines to support
its claim that the affected and striking workers are
entitled to reinstatement and backwages from January
2, 2003, when Secretary Sto. Tomas directed the
striking workers to return to work, up to April 29, 2006,
when the NLRC's Resolution upholding PLDT's
redundancy program became final and executory.
Petitioner is mistaken.
Garcia upholds the prevailing doctrine that even if a
Labor Arbiter's order of reinstatement is reversed on
appeal, the employer is obligated "to reinstate and pay
 A. Discipline

B. Transfer or employees

C. Productivity standards

D. Bonus

E. Change of working hours

F. Bona fide occupational qualifications

G. Post-employment restrictions

H. Marriage between employees of competitor-employers

It is the right of an ER to regulate, generally without f. General principles of fair play and justice. a. From one position to another; or
restraint, according to its own direction and judgment, 2. Police power; b. From one office to another within the same
every aspect of its business, subject to limitations of law.
3. Exercise without abuse of discretion; business establishment.
Such aspects of employment include
4. Adherence in good faith and with due regard to This is an inherent right to control or manage by the ER.
1. Hiring the rights of labor. Consent of EE NOT required.
2. Promoting
This is exercised by the ER in the best interest of the
3. Work assignments A. Discipline
company to see where a particular EE can be best
4. Tools to be used The right or prerogative to discipline covers the following maximized. For a transfer to be valid, the following
rights to: REQUISITES must be observed:
5. Processes to be followed
6. Supervision of workers a) Discipline; a. Must be reasonable or have a sound purpose;

7. Working regulations b) Dismiss; b. Must not inconvenient the welfare of the EE;

8. Transfer of EEs c) Determine who to punish; c. Not prejudicial to the EE;

9. Work supervision d) Promulgate rules and regulations;
d. Not involve a demotion of rank or status;
10. Lay off of workers, and e) Impose penalty (proportionality rule)
e. Not be motivated by discrimination;
11. The discipline, dismissal and recall of workers. f) Choose which penalty to impose; AND
f. Not made in bad faith;
These prerogatives are limited by: g) Impose heavier penalties than what the company
rules prescribe. g. Not be effected as a form of punishment without
1. Impositions of sufficient cause.
The proportionality rule means that the penalty to be
a. Law;
imposed must be commensurate with the offense Failure to observe these requisites, the transfer is deemed
b. CBA; committed. CONSTRUCTIVE DISMISSAL. Same reliefs as that of
c. Employment contract; illegal demotion.
B. Transfer of employees
d. ER policy; An EE who refuses to be transferred when such is valid, is
e. ER practice; and The lateral movement from one position to another of guilty of insubordination or willful disobedience of a
equivalent rank, level or salary. Could be a movement: lawful order of an ER under Art 297[282] of the LC.
Refusal to be transferred is VALID in the following cases
An employer is entitled to impose productivity
office brought about the immediate need for their
a. Overseas assignment; standards for its workers, and in fact, non-compliance
replacements with personnel having commensurate
may be visited with a penalty even more severe than
b. Consequent to promotion; experiences and skills.
demotion.
Secondly, although the respondents' transfer to Manila
c. To avoid conflict of interest; Failure to observe prescribed standards of work, or to
might be potentially inconvenient for them because it
fulfill reasonable work assignments due to inefficiency
d. Occasioned by the abolition of the position. would entail additional expenses on their part aside
may constitute just cause for dismissal. Such
from their being forced to be away from their families, it
inefficiency is understood to mean failure to attain
Refusal is INVALID was neither unreasonable nor oppressive. The transfer
work goals or work quotas, either by failing to complete
would be without demotion in rank, or without
a. Due to parental obligations; the same within the allotted reasonable period, or by
diminution of benefits and salaries. Instead, the transfer
producing unsatisfactory results. This management
would open the way for their eventual career growth,
b. Additional expenses; prerogative of requiring standards may be availed
with the corresponding increases in pay.
of so long as they are exercised in good faith for the
c. Inconvenience; Thirdly, the respondents did not show by substantial advancement of the employer's interest.
d. Hardship and anguish. evidence that the petitioner was acting in bad faith or
had ill-motive in ordering their transfer. In contrast, the
Chateau Royale Sports & Country Club v. Balba, et al. urgency and genuine business necessity. D. Bonus
2017
Lastly, the respondents, by having voluntarily affixed Mega Magazine Publications v. Defensor 2014
The burden of proof lies in the employer to prove that their signatures on their respective letters of
appointment, acceded to the terms and conditions of The grant of a bonus or special incentive, being a
the transfer of the employee from one area of management prerogative, is not a demandable and
operation to another was for a valid and legitimate employment incorporated therein. One of the terms and
conditions thus incorporated was the prerogative of enforceable obligation, except when the bonus or
ground, like genuine business necessity. special incentive
management to transfer and re-assign its employees
The right of the employee to security of tenure does not from one job to another "as it may deem necessary or 1. is made part of the wage, salary or
give her a vested right to her position as to deprive advisable." compensation of the employee, or
management of its authority to transfer or re-assign her
where she will be most useful. According to Abbot Laboratories (Phils.), Inc. v. NLRC, 2. is promised by the employer and expressly
the employee who has consented to the company's agreed upon by the parties.
WON the transfer of respondents to petitioner's Manila policy of hiring sales staff willing to be assigned
office was a valid exercise of management prerogative. anywhere in the Philippines as demanded by the Bonus is a gratuity or act of liberality of the giver, and
employer's business has no reason to disobey the cannot be considered part of an employee’s wages if it is
YES. In the resolution of whether the transfer of the paid only when profits are realized or a certain amount
respondents from one area of operation to another was transfer order of management. Verily, the right of the
employee to security of tenure does not give her a of productivity is achieved. If the desired goal of
valid, finding a balance between the scope and production or actual work is not accomplished, the
limitation of the exercise of management prerogative vested right to her position as to deprive management
of its authority to transfer or re-assign her where she bonus does not accrue.
and the employees' right to security of tenure is
necessary. will be most useful. Due to the nature of the bonus or special incentive
being a gratuity or act of liberality on the part of the
The transfer could not be validly assailed as a form of giver, the respondent could not validly insist on the
constructive dismissal, for, as held in Benguet Electric C. Productivity standards schedule proposed in her memorandum considering
Cooperative v. Fianza, management had the that the grant of the bonus or special incentive
prerogative to determine the place where the employee 1. Realigning the functions of a certain position.
remained a management prerogative.
is best qualified to serve the interests of the 2. Valid so long as they are not contrary to law,
business given the qualifications, training and public policy, morals. They must be lawful and
performance of the affected employee.
reasonable.
E. Change of working hours
To start with, the resignations of the account managers CCBPI v. Iloilo Coca-Cola Plant Employees Union 2018
Aliling v. Feliciano 2012
and the director of sales and marketing in the Manila
 c. whether the covenant is injurious to the public
WON scheduling Saturday work has ripened into a
record. welfare;
company practice, the removal of which constituted a
diminution of benefits, to which CCBPI is likewise liable to Where the employee is willing and able to work and is d. whether the time and territorial limitations
the affected employees for, including the corresponding not illegally prevented from doing so, no wage is due to contained in the covenant are reasonable; and
wage for the Saturday work which was not performed him. To hold otherwise would be to grant to the
pursuant to the policy of the Company to remove employee that which he did not earn at the prejudice of e. whether the restraint is reasonable from the
Saturday work based on operational necessity the employer. standpoint of public policy.
NO. What is involved in this case is work undertaken In the case at bar, CCBPI's employees were not illegally
within the normal hours of work on Saturdays and not prevented from working on Saturdays. The company H. Marriage between employees of
work performed beyond eight hours in one day. was simply exercising its option not to schedule competitor-employers
work pursuant to the CBA provision which gave it the
Despite the mistaken notion of CCBPI that Saturday
prerogative to do so. It therefore follows that the A policy prohibiting spouses from being employed in
work is synonymous to overtime work, the Court still
principle of "no work, no pay" finds application in the
disagrees with the CA ruling that the previous practice the same company. There must be compelling
instant case.
of instituting Saturday work by CCBPI had ripened into business necessity for which no alternative exists
a company practice covered by Article 100 of the Labor
other than the discriminatory practice for it to be
Code. F. Bona fide occupational qualifications VALID.
To note, it is not Saturday work per se which constitutes
Employment may not be limited to persons of a particular Theories on Employment Discrimination
a benefit to the company's employees. Rather, the
benefit involved in this case is the premium which the sex, religion, or national origin unless the employer cas
company pays its employees above and beyond the show that such qualifications are necessary in the 1. Disparate Treatment — Plaintiff must prove that
minimum requirements set by law. performance of the job involved. Exceptions to BFOQ: an employment policy is discriminating on its
face;
In Royal Plant Workers Union v. Coca-Cola Bottlers 1. Employment qualification is reasonably related
Philippines, Inc.-Cebu Plant, the Court had the occasion to the essential operation of the job involved; and 2. Disparate Impact — Plaintiff must prove that a
to rule that the term "benefits" mentioned in the non- facially neutral policy has a disproportionate
diminution rule refers to monetary benefits or 2. There is a factual basis for believing that all or
privileges given to the employee with monetary effect on a part of the class.
substantially all persons meeting the qualification
equivalents. Stated otherwise, the employee benefits would be unable to properly perform the duties Duncan Assoc. of Detailman-PTGWO v. Glaxo Wellcome
contemplated by Article 100 are those which are Phils.
of the job.
capable of being measured in terms of money.
No reversible error can be ascribed to the Court of
CCBPI withdrew the Saturday work itself, pursuant, as G. Post-employment restrictions Appeals when it ruled that Glaxo’s policy prohibiting an
already held, to its management prerogative. In fact,
employee from having a relationship with an employee
this management prerogative highlights the fact that An EE is prohibited after separation from joining a of a competitor company is a valid exercise of
the scheduling of the Saturday work was actually made competitor. VALID, subject to limitations as to management prerogative.
subject to a condition, i.e., the prerogative to provide
duration and place.
the company's employees with Saturday work based on Glaxo has a right to guard its trade secrets,
the existence of operational necessity. Restrictive covenant clauses manufacturing formulas, marketing strategies and other
confidential programs and information from
Lastly, the Court agrees with the assertion of CCBPI that In determining whether the contract is reasonable or not, competitors, especially so that it and Astra are rival
since the affected employees are daily-paid employees,
the following factors should be considered: companies in the highly competitive pharmaceutical
they should be given their wages and corresponding
industry.
premiums for Saturday work only if they are permitted a. whether the covenant protects a legitimate
to suffer work. Invoking the time-honored rule of "a fair business interest of the employer; The prohibition against personal or marital
day's work for a fair day's pay," the CCBPI argues that relationships with employees of competitor companies
the CA's ruling that such unworked Saturdays should be b. whether the covenant creates an undue burden upon Glaxo’s employees is reasonable under the
compensated is contrary to law and the evidence on on the employee; circumstances because relationships of that nature
 Coca-Cola Bottlers Phils Inc. v. CCBPI Sta Rosa Plant
might compromise the interests of the company. In Employees Union 2019
laying down the assailed company policy, Glaxo only
aims to protect its interests against the possibility that a The employer does not have the prerogative to
competitor company will gain access to its secrets and impose other conditions on the amount of loan to be
procedures. taken which does not involve its duty to collect and
remit amortizations.
Other Cases
In carrying out the 50% cap policy, petitioner
Diwa Asia Publishing et al. v. De Leon 2018 effectively limits its employees on the utilization of their
salaries when it is apparent that as long as the
WON the issuance of communications to reprimand employee is qualified to avail the same, he/she may
and/or correct an erring employee forms part of the apply for an SSS loan.
employer's management prerogatives and is not
tantamount to harassment, let alone illegal dismissal. While petitioner's cause for putting a limitation on the
availment of loans, i.e., to promote the welfare of the
NO. Respondent was excluded from important HR employees and their families by securing that the salary
decisions which she was expected not only to be privy of the concerned employee shall be taken home to his
to, but also to have a say in, by virtue of her position in family, is sympathetic, we cannot subscribe to the same
the company. for being in contravention with the prohibition on
There is constructive dismissal when an employee's interfering with the disposal of wages under Article
functions, which were originally supervisory in nature, 112 of the Labor Code.
were reduced; and such reduction is not grounded on
valid grounds such as genuine business necessity.
VII. SOCIAL LEGISLATION
The reduction in respondent's duties and
responsibilities as HR Manager amounted to a
demotion that was tantamount to constructive
dismissal.
The above-cited circumstances indubitably present a
hostile and unbearable working environment that
reasonably compelled respondent to leave her
employment. Respondent, therefore, was constructively
dismissed.
Under Article 279 of the Labor Code, an employee who
is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of
allowances, and to his other benefits or their monetary
equivalent computed from the time his compensation
was withheld from him up to the time of his actual
reinstatement. Furthermore, inasmuch as
reinstatement is no longer feasible given the strained
relations between petitioners and respondent, the
award of separation pay equivalent to one (1) month's
salary for every year of service was just and reasonable
as an alternative to reinstatement.
A. Social Security System Law

1. Coverage and exclusions

2. Dependents and beneficiaries

3. Benefits

B. Government Service Insurance System Law

1. Coverage and exclusions

2. Dependents and beneficiaries

3. Benefits

C. Limited Portability Law

D. Disability and death benefits

1. Labor Code

2. Employees Compensation and State Insurance Fund

3. Philippine Overseas Employment Administration Standard Employment Contract

E. Solo Parents

F. Kasambahay

G. Agrarian Relations

1. Concept of agrarian reform

2. Existence and concept of agricultural tenancy

3. Rights of agricultural tenants

4. Concept of farmworkers

H. Universal Health Care

1. Policy

2. Coverage

3. National Health Insurance Program

1. Coverage and exclusions

A. Social Security System Law
The SS Law mandates that all employees including
kasambahays or domestic workers not over sixty (60)
years of age shall be members of the SSS (Section 9). The
law also mandates compulsory coverage of the Self-
Employed as stated in Section 9-A of R.A. No. 11199 children: Provided, further, That in the absence of under Section 13-B, provides for a funeral grant
which provides that self-employed includes, but not the dependent legitimate, legitimated or legally equivalent to Twelve Thousand Pesos
limited to, the following: adopted children of the member, his/her (P12,000.00) to be paid, in cash or in kind, to help
1. All self-employed professionals; defray the cost of funeral expense upon the death
dependent illegitimate children shall be entitled
of a member, including permanently totally
2. Partners and single proprietors of businesses; to one hundred percent (100%) of the benefits. disabled member or retiree.
3. Actors and actresses, directors, scriptwriters and In their absence, 6. Sickness Benefit
news correspondents who do not fall within the
Secondary Beneficiaries under Section 14, provides daily sickness benefits
definition of the term “employee” in Section 8 (d)
of this Act; 1. the dependent parents; equivalent to ninety percent (90%) of his average
daily salary credit, to members who are confined
4. Professional athletes, coaches, trainers and 2. In the absence of all the foregoing, any other for more than three (3) days in a hospital or
jockeys; and person designated by the member as his/her elsewhere with the approval of the SSS. However,
5. Individual farmers and fishermen. secondary beneficiary. to avail of this benefit, the member must have
The New SS Law likewise made it compulsory for OFWs, complied with the conditions and qualifications
3. Benefits provided by the said law.
sea-based or land-based, to be members of the SSS as
provided for under Section 9-B. 1. Maternity Leave Benefit 7. ⭐Unemployment Insurance or Involuntary
As members of the SSS, all of the abovementioned are see also 105-Day Expanded Maternity Leave Law Separation Benefits.
required to remit monthly contributions to SSS in order RA 11210 under Section 14-B, provides that an employee
for them to avail of the benefits provided for by the SS 2. Retirement Benefit who is involuntarily unemployed or separated
Law. from work can avail of this benefit. However, this
under Section 12-B, is given to a member who:
benefit shall only be availed once every three
2. Dependents and beneficiaries 1) has reached the age of sixty (60) years (3) years.
The dependents shall be the following: old, and is already separated from work
or has ceased to be self-employed; or SSS v. Alba
1. The legal spouse entitled by law to receive
support from the member; 2) has reached the age of sixty five (65) An action for remittance of SS monthly contributions is
years provided he/she has complied with not a type of money claim which needs to be filed
2. The legitimate, legitimated or legally adopted, and the required monthly contributions. against the estate proceedings.
illegitimate child who is unmarried, not gainfully 3. Death Benefit WON the term "employer" under the Social Security Act
employed, and has not reached twenty-one (21) of 1954 may be applied to Far Alba, the administrator-
under Section 13, allows the primary
years of age, or if over twenty-one (21) years of son of the owner, Arturo Alba, Sr., who is directly and
beneficiaries of the deceased member to be
age, he is congenitally or while still a minor has entitled to monthly pension provided the latter actively involved in the operation of the agricultural
been permanently incapacitated and incapable of has paid the required monthly contributions to be undertaking.
self-support, physically or mentally; and qualified thereof. YES. Far Alba had indeed served as Lamboso's
3. The parent who is receiving regular support from 4. Permanent Disability Benefit employer from 1965 to 1970 or, at the very least, he
had served as the hacienda's administrator before 1970.
the member. under Section 13-A, provides that those who have
The question is whether an administrator could be
permanent disabilities shall be entitled to
Primary Beneficiaries considered an employer within the scope of the Social
monthly pension. The sum equivalent to the
Security Act of 1954. We answer in the affirmative.
1. The dependent spouse until he or she remarries,; monthly pension is still subject to the conditions
and qualifications provided by the said law. First, the Court observes that Far Alba was no ordinary
2. the dependent legitimate, legitimated or legally administrator. He was no less than the son of the
Further, the law provides a different monthly
adopted, and illegitimate children, Provided, That pension for permanent total disability, which is hacienda's owner and as such he was an owner-in-
the dependent illegitimate children shall be defined by Section 13-A (d), and permanent waiting prior to his father's death.
entitled to fifty percent (50%) of the share of the partial disability. Second, nomenclature aside, Far Alba was not merely an
legitimate, legitimated or legally adopted 5. Funeral Benefit administrator of the hacienda. Applying the control test
 which is used to determine the existence of employer- obvious conclusion then is that a wife who is already and he claims coverage as a compulsory member of the
employee relationship for purposes of compulsory separated de facto from her husband cannot be said to SSS. As correctly held by the SSC and CA, the SSSEA, a
coverage under the SSS law, Far Alba is technically be "dependent for support" upon the husband, labor organization, cannot be considered an
Lamboso's employer. absent any showing to the contrary. employer under the law. As a government employee,
Third, not to be forgotten is the definition of an Haveria would have been qualified for voluntary
employer under Article 167(f) of the Labor Code which Bartolome v. SSS 2014 coverage under Section 9 (b) of R.A. No. 1161, had he
deals with employees' compensation and state registered as a voluntary member. Consequently, his
Plainly, "dependent parents" are parents, whether compulsory coverage while supposedly employed with
insurance fund. The said provision of the law defines an legitimate or illegitimate, biological or by adoption, who
employer as "any person, natural or juridical, the SSSEA was erroneous.
are in need of support or assistance.
employing the services of the employee." It also defines Thus, Haveria's compulsory coverage with the SSS
a person as "any individual, partnership, firm, WON the biological parents of the covered, but legally validly started only in 1989 when he was reported as an
association, trust, corporation or legal representative adopted, employee considered secondary beneficiaries employee of private employer, Stop Light Diners until
thereof." Plainly, Far Alba, as the hacienda and, thus, entitled, in appropriate cases, to receive the his retirement with his second private employer, First
administrator, acts as the legal representative of the benefits under the ECP. Ivory Pharma Trade, Inc. in 1997.
employer and is thus an employer within the YES. The term "parents" in the phrase "dependent
meaning of the law liable to pay the SS parents" in Article 167 (j) of the Labor Code is used and Philippine Journalist Inc. v. Journal Employees Union et
contributions. ought to be taken in its general sense and cannot be al. 2013
Finally, the Court believes that Section 8 (c) of the Social unduly limited to "legitimate parents" as what the ECC
did. The phrase "dependent parents" should, therefore, The coverage of the term legal dependent as used in
Security Act of 1954 is broad enough to include those a stipulation in a collective bargaining agreement (CBA)
persons acting directly or indirectly in the interest of include all parents, whether legitimate or illegitimate
and whether by nature or by adoption. When the law granting funeral or bereavement benefit to a regular
the employer. employee for the death of a legal dependent, if the CBA
does not distinguish, one should not distinguish. Ubi lex
The Court sustains the jurisdiction of the Commission non distinguit, nec nos distinguere debemus. is silent about it, is to be construed as similar to the
over disputes under the Social Security Act "with meaning that contemporaneous social legislations have
respect to coverage, benefits, contributions and Further, the rule, as worded, prevents the parents of an
set. This is because the terms of such social
penalties thereon or any other matter related thereto. illegitimate child from claiming benefits under Art. 167
legislations are deemed incorporated in or adopted
Moreover, the Court agrees with the Commission's (j). This is an affront to the Constitutional guarantee of
by the CBA.
assertion that an action for remittance of SS monthly equal protection under the laws. There is no compelling
reasonable basis to discriminate against illegitimate WON petitioner’s denial of respondents’ claims for
contributions is not a type of money claim which funeral and bereavement aid granted under Section 4,
needs to be filed against the estate proceedings. parents.
Article XIII of their CBA constituted a diminution of
All told, the Decision of the ECC is bereft of legal basis.
benefits in violation of Article 100 of the Labor Code.
SSS v. Delos Santos Cornelio's adoption of John, without more, does not
deprive petitioner of the right to receive the benefits YES. Here, a conflict has arisen regarding the
AN ESTRANGED wife who was not dependent upon her interpretation of the term legal dependent in
stemming from John's death as a dependent parent
deceased husband for support is not qualified to be his connection with the grant of funeral and bereavement
given Cornelio's untimely demise during John's
beneficiary. aid to a regular employee.
minority. Since the parent by adoption already died,
Death benefits should not be denied to the wife who then the death benefits under the Employees' Petitioner insists that notwithstanding the silence of the
was married to the deceased retiree only after the Compensation Program shall accrue solely to herein CBA, the term legal dependent should follow the
latter's retirement. petitioner, John's sole remaining beneficiary. definition of it under the SS Law.
The reckoning point in determining the beneficiaries of Social legislations contemporaneous with the execution
the deceased should be the time of his death. There is Haveria v. SSS 2018
of the CBA have given a meaning to the term legal
no need to look into the time of retirement. WON Haveria's inclusion as a compulsory member of the dependent.
In Aguas, the Court ruled that although a husband and SSS was valid and consequently, whether he is entitled to It is clear from these statutory definitions of dependent
wife are obliged to support each other, whether one is receive monthly pensions. that the civil status of the employee as either married or
actually dependent for support upon the other cannot NO. Haveria was reported by the SSSEA as an employee, single is not the controlling consideration in order that
be presumed from the fact of marriage alone. The a person may qualify as the employee’s legal dependent.
 the age of majority, or is over the age of With respect to disability benefits, permanent total
What is rather decidedly controlling is the fact that majority but is incapacitated and incapable of disability means disability caused by injury or disease
the spouse, child, or parent is actually dependent for resulting in complete, irreversible, and permanent
self-support due to a mental or physical
support upon the employee. incapacity to work or to engage in any gainful
defect acquired prior to age of majority; and occupation, while there is permanent partial disability
Petitioner had no basis to deny the claim for funeral and
bereavement aid of Alfante for the death of his parent c. the parents dependent upon the member for when a GSIS member is incapacitated to work for a
whose death and fact of legal dependency on him could support; limited period of time because of complete, and
be substantially proved. permanent loss of any of the following body parts. xxx
Primary beneficiaries. — The legal dependent
Pursuant to Article 100 of the Labor Code, petitioner as Further, there is temporary total disability when a
spouse until he/she remarries and the dependent GSIS member is momentarily incapacitated to work or
the employer could not reduce, diminish, discontinue or
eliminate any benefit and supplement being enjoyed by children; engage in any gainful occupation as a result of
or granted to its employees. impairment of physical or mental faculties which can
Secondary beneficiaries. — The dependent parents
be rehabilitated or restored to their normal functions.
and, subject to the restrictions on dependent children,
Under Section 16 (c) of R.A. No. 8291, the disability
B. Government Service Insurance System the legitimate descendants.
benefits shall be suspended, unless the member has
Law 3. Benefits reached the minimum retirement age, when he/she:
The members of the GSIS are entitled to 1. is reemployed; or
1. Coverage and exclusions
1. separation benefits, 2. recovers from his disability as determined by
Membership in the GSIS shall be compulsory for all the GSIS, whose decision shall be final and
employees receiving compensation who have not 2. unemployment or involuntary separation binding; or
reached the compulsory retirement age, irrespective benefits,
3. fails to present himself for medical
of employment status, except 3. permanent total disability benefits, examination when required by the GSIS.
a. members of the Armed Forces of the Philippines 4. permanent partial disability benefits, Retirement benefits are those received by
and the Philippine National Police, subject to the 5. temporary total disability benefits, employees upon reaching the age of retirement which
condition that they must settle first their financial 6. retirement benefits, is sixty (60) years of age. To be entitled thereon,
obligation with the GSIS, and according to Section 13-A of R.A. No. 8291, the
7. survivorship benefits, following qualifications shall be met:
b. contractual who have no employer and employee 8. funeral benefit, and 1. he has rendered at least fifteen (15) years
relationship with the agencies they serve. 9. life insurance benefit. of service;
Except for the members of the judiciary and The separation benefits are given to GSIS members 2. he is at least sixty (60) years of age at the
constitutional commissions who shall have life who are separated from service or who resigned time of retirement; and
insurance only, all members of the GSIS shall have therefrom provided that the qualifications set by law 3. he is not receiving a monthly pension benefit
life insurance, retirement, and all other social security are met by the member claiming for separation from permanent total disability.
protection such as disability, survivorship, separation, benefits.
Likewise, Survivorship benefits are given when a
and unemployment benefits. On the other hand, the Unemployment or member or pensioner dies, his/her beneficiaries shall
Involuntary Separation Benefits are given to an be entitled to survivorship benefits provided in
2. Dependents and beneficiaries employee who, at the time of separation from work, Sections 21 and 22 of R.A. No. 8291 as stated in
Dependents shall be the following: 1. was holding a permanent employment, and Section 20 of said law provided the qualifications set
by law are met.
a. the legitimate spouse dependent for support 2. was separated involuntarily due to the
upon the member or pensioner; abolition of his/her office or position Funeral benefit is given to the beneficiaries of the
deceased member to help them defray the cost of
b. the legitimate, legitimated, legally adopted resulting from reorganization.
burial, and funeral expenses.
child, including the illegitimate child, who is In addition, the member shall have paid the required While, life insurance benefits are given to all GSIS
unmarried, not gainfully employed, not over monthly contributions to be qualified thereto. members, except for Members of the AFP and the
 PNP, it is provided in Section 24 of R.A. No. 8291, to It refers to instances where a worker transfers from 2. If a worker in the public sector is not
wit: private employment to government employment, and qualified for any benefits in the GSIS; or
All employees except for Members of the AFP and the vice versa, thereby transferring from being SSS 3. If a worker in the private sector is not
PNP shall, under such terms and conditions as may be member to GSIS member, and vice versa. The transfer qualified for any benefits from the SSS.
promulgated by the GSIS, be compulsorily covered
of funds is to ensure that his/her years of service are
with life insurance, which shall automatically take 4. If a work qualifies for benefits in both
effect as follows: duly credited. Systems, totalization shall not apply.
1. for those employed after the effectivity of this Coverage In the case Gamogamo v. PNOC Shipping and
Act, their insurance shall take effect on the
Section 1, Rule I provides that the rules and Transport Corp., the pivotal issue was whether, for the
date of their employment;
regulations shall apply to all worker‐members of the purpose of computing an employee’s retirement pay,
2. for those whose insurance will mature after
GSIS and/or SSS who transfer from one sector to prior service rendered in a government agency can be
the effectivity of this Act, their insurance shall
be deemed renewed on the day following the another, and who wish to retain their membership in tacked in and added to the creditable service later
maturity or expiry date of their insurance; both Systems. acquired in a GOCC without original charter.
3. for those without any life insurance as of the Petitioner’s contention that the principle of tacking of
effectivity of this Act, their insurance shall Limited Portability Scheme
creditable service is mandated by Republic Act No.
take effect following said effectivity.” R.A. No. 7699 was enacted to enable those from the 7699 is baseless. xxx
It must be noted that the claims for benefits under private sector who transfer to the government service
this law shall be filed within 4 years from the time Obviously, totalization of service credits is only
or from the government sector to the private sector to
of the contingency except claims for life and resorted to when the retiree does not qualify for
combine their years of service and contributions
retirement benefits. benefits in either or both of the Systems. Here,
which have been credited with the SSS or GSIS, as the
Hence, after the contingency such as separation from petitioner is qualified to receive benefits granted by
case may be, to satisfy the required number of years
work, occurrence of disability, or death happens, then GSIS, if such right has not yet been exercised.
of service for entitlement to the benefits under the
the member ought to file a claim immediately, in In any case, petitioner’s fourteen years of service with
order to avail of the benefits provided under this law. applicable laws.
the DOH may not remain uncompensated because it
Totalization may be recognized by the GSIS. Since petitioner may
C. Limited Portability Law
It refers to the process of adding up the periods of be entitled to some benefits from the GSIS, he cannot
"Portability" shall refer to the transfer of funds for creditable services or contributions under each of the avail of the benefits under R.A. No. 7699.
the account and benefit of a worker who transfers Systems, SSS or GSIS, for the purpose of eligibility and Hence, if an employee is entitled to some benefits
from one system to the other. computation of benefits. either from GSIS or SSS, as the case may be, then
"Totalization" shall refer to the process of adding up Hence, if a worker is not entitled to any benefits under the rule on totalization will not apply. Totalization
the periods of creditable services or contributions SSS or GSIS because the periods of his creditable is only resorted to when one cannot avail any benefits
under each of the Systems, for purposes of eligibility services or contributions does not qualify to avail any from GSIS or SSS, as the case may be, since the subject
and computation of benefits. benefit under SSS or GSIS, as the case may be, he/she law intends that the employee may be able to get
What is Portability? could apply the totalization rule. Applying the some benefits for his/her years of work. This is in
totalization rule can increase the chances of a worker conformity with the objective of the Portability Law
Portability refers to the transfer of funds for the to avail of benefits under the subject law. which is to ensure the social welfare of employees in
account, and benefit of a worker who transfers from
Section 3, Rule V provides instances where any sector.
one system to the other (Section 1(b), Rule III of R.A.
totalization applies, to wit:
No. 7699).
1. If a worker is not qualified for any benefits
from both Systems;
D. Disability and death benefits and permanent: without substitution, except as
provided for in paragraph (j) of Article
i) Temporary total disability lasting
1. Labor Code 167 hereof:
continuously for more than one
CHAPTER VI Disability Benefits hundred twenty days, except as Provided, however, That the monthly income
ARTICLE 197. Temporary Total Disability. — otherwise provided for in the Rules; benefit shall be guaranteed for five years:
ii) Complete loss of sight of both eyes; Provided, further, That if he has no primary
a) Any employee who sustains an injury or
iii) Loss of two limbs at or above the ankle beneficiary, the System shall pay to his
contracts sickness resulting in temporary total
or wrist; secondary beneficiaries the monthly income
disability shall, for each day of such a disability
benefit but not to exceed sixty months:
or fraction thereof, be paid by the System an iv) Permanent complete paralysis of two
income benefit equivalent to ninety (90%) limbs; Provided, finally, That the minimum death
percent of his average daily salary credit. benefit shall not be less than fifteen
v) Brain injury resulting in incurable
thousand pesos.
b) xxxx imbecility or insanity; and
vi) Such cases as determined by the b) The System shall pay to the primary
ARTICLE 198. Permanent Total Disability. —
Medical Director of the System and beneficiaries upon the death of a covered
a) Any employee who contracts sickness or approved by the Commission. employee who is under permanent total
sustains an injury resulting in his permanent disability under this Title, eighty (80%)
total disability shall, for each month until his d) xxxx percent of the monthly income benefit and his
death, be paid by the System during such a dependents to the dependents' pension:
ARTICLE 199. Permanent Partial Disability. —
disability,
Provided, That the marriage must have been
a) Any employee who contracts sickness or
i) an amount equivalent to the monthly validly subsisting at the time of disability:
sustains an injury resulting in permanent
income benefit, Provided, further, That if he has no primary
partial disability shall, for each month not
ii) plus ten (10%) percent thereof for exceeding the period designated herein, be paid beneficiary, the System shall pay to his
each dependent child, but not by the System during such a disability an secondary beneficiaries the monthly pension
exceeding five, beginning with the income benefit for permanent total disability. excluding the dependents' pension, of the
youngest and without substitution. xxxx remaining balance of the five-year guaranteed
period:
b) The monthly income benefit shall be CHAPTER VII Death Benefits
Provided, finally, That the minimum death
guaranteed for five years, and shall be
ARTICLE 200. Death. — benefit shall not be less than fifteen thousand
suspended if the employee
pesos.
a) The System shall pay to the primary
i) is gainfully employed, or
beneficiaries upon the death of the covered c) The monthly income benefit provided herein
ii) recovers from his permanent total employee, shall be the new amount of the monthly income
disability, or benefit for the surviving beneficiaries upon the
i) an amount equivalent to his monthly
iii) fails to present himself for examination approval of this decree.
income benefit,
at least once a year upon notice by the d) Funeral benefit. — A funeral benefit of Three
System. ii) plus ten percent thereof for each
Thousand Pesos (P3,000.00) shall be paid upon
dependent child, but not exceeding
c) The following disabilities shall be deemed total the death of a covered employee or
five, beginning with the youngest and
 Coverage not be answerable, unless it should be shown that the
permanently totally disabled pensioner. latter did not exercise due diligence in the selection or
a. General
supervision of the plaintiff's fellow worker.
2. Employees Compensation and State Insurance i. All employers;
“Going & Coming Rule” and Proximity Rule
Fund ii. Every EE not over 60 yrs old;
The general rule in workmen's compensation law
★ ECC Cir. No. 04-008, dated April 28, 2014 iii. An EE over 60 who had been paying
known as the "going & coming rule," simply stated, is
(Effectivity of Coverage of Employees under the SSS/GSIS contributions prior to 60 and
that "in the absence of special circumstances, an
EC Program); has not been compulsorily retired; and
employee injured in, going to, or coming from his
★ Amended Rules on Employee’s Compensation iv. Any EE coverable by both systems and place of work is excluded from the benefits of
State Insurance Fund, and its liability should be compulsorily covered by both. workmen's compensation acts."

Coverage in the State Insurance Fund shall be b. Sectoral This rule, however, admits of four well-recognized
compulsory upon all employers and their employees i. All public sector EEs; exceptions, to wit:
not over sixty (60) years of age; Provided, That an ii. All private sector EEs; 1. where the employee is proceeding to or from his
employee who is over sixty (60) years of age and work on the premises of his employer;
iii. OFWs
paying contributions to qualify for the retirement or
2. where the employee is about to enter or about to
life insurance benefit administered by the System 1. Seafarers compulsorily covered;
leave the premises of his employer by way of the
shall be subject to compulsory coverage. 2. Land-based contract workers exclusive or customary means of ingress and
The State Insurance Fund shall be liable for Proscription against double recovery egress; (PROXIMITY RULE)
compensation to the employee or his dependents,
Article 1711. Owners of enterprises and other 3. where the employee is charged, while on his way
except when the disability or death was occasioned
employers are obliged to pay compensation for the to or from his place of employment or at his
by the employee's
death of or injuries to their laborers, workmen, home, or during his employment, with some duty
1. intoxication, mechanics or other employees, even though the event or special errand connected with his
2. willful intention to injure or kill himself or may have been purely accidental or entirely due to a employment; and
another, fortuitous cause, if the death or personal injury arose 4. where the employer, as an incident of the
3. notorious negligence, or out of and in the course of the employment. employment, provides the means of
The employer is also liable for compensation if the transportation to and from the place of
4. otherwise provided under this Title.
employee contracts any illness or disease caused by employment.
Extent of Liability such employment or as the result of the nature of the “Bunkhouse Rule”
Unless otherwise provided, the liability of the State employment. If the mishap was due to the employee's
(ECC Board Res. 12-01-02)
Insurance Fund shall be exclusive and in place of all own notorious negligence, or voluntary act, or
other liabilities of the employer to the employee, his drunkenness, the employer shall not be liable for Where the employee is required to stay in the
dependents or anyone otherwise entitled to receive compensation. When the employee's lack of due care premises or in quarters furnished by the employer,
damages on behalf of the employee or his dependents. contributed to his death or injury, the compensation injuries sustained therein are in the course of
shall be equitably reduced. employment regardless of the time the same
The payment of compensation shall not bar the
occurred.
recovery of benefits as provided for in other laws Article 1712. If the death or injury is due to the
whose benefits are administered by the System or by negligence of a fellow worker, the latter and the “Personal Comfort Doctrine”
other agencies of the government. employer shall be solidarily liable for compensation. If
(ECC Board Res. 15-04-15)
a fellow worker's intentional or malicious act is the
only cause of the death or injury, the employer shall Acts performed by an employee:
 a. Within the time and space limits of his
employment to minister personal comfort enforcement agency does not establish that the person of his mentality and attainment could do. It does
business of SPO1 Rodrin at the time of his death was not mean absolute helplessness but rather an incapacity
such as satisfaction of his thirst, hunger or
purely private in character. to perform gainful work which is expected to be
personal demands; permanent.
In the present case, evidence shows that, at the time
b. While on the places of recreation within ER’s that SPO1 Rodrin was gunned down, he was performing In this case, respondent was diagnosed to be
premises, or his duty as a police officer. His act of trying to find out hypertensive as a result of the physical and mental
c. to protect himself from extreme temperature the reason why the security guards were acting hostile stress of his work.
cannot be said to be foreign and unrelated to his job as a While respondent had been awarded 38 months of PPD
in a place within ER’s premises
member of the police force. benefits commensurate to his physical condition at the
Shall be deemed incidental to his employment and time of his retirement, this does not preclude the
injuries which the EE suffered in the performance of GSIS v. Casco
conversion of the benefits to which he is entitled as a
such acts shall be considered COMPENSABLE and When an employee is constrained to retire at an early result of the fact that he later on became permanently
arising out of and in the course of employment. age due to his illness and the illness persists even after and totally disabled. When an employee is constrained
retirement, resulting in his continued unemployment, to retire at an early age due to his illness and the illness
Rodrin v. GSIS persists even after retirement, resulting in his
as in this case, such a condition amounts to total
Members of the national police, unless they are on disability which should entitle him to the maximum continued unemployment, as in this case, such a
official leave, are, by the nature of their functions, benefits allowed by law. condition amounts to total disability which should
technically on duty 24 hours a day, because policemen entitle him to the maximum benefits allowed by law.
are subject to call at any time and may be asked by their WON respondent's claim for conversion of his PPD
benefits to PTD benefits should be granted. GSIS v. De Castro
superiors or by any distressed citizen to assist in
maintaining the peace and security of the community. YES. There is nothing in the law which prohibits the In any determination of compensability, the nature and
WON the death of SPO1 Rodrin is compensable under PD conversion of PPD benefit to PTD benefit if it is shown characteristics of the job are as important as raw
626. that the employee's ailment qualifies as such. The grant medical findings and a claimant's personal and social
of PTD benefit to an employee who was initially history.
YES. For the compensability of an injury to an employee compensated for PPD but is found to be suffering from
which results in his disability or death, Section 1(a), PTD would not be prejudicial to the government to give What the law requires is a reasonable work
Rule III of the Amended Rules on Employees' it reason to deny the claim. connection and not direct causal relation. Probability,
Compensation imposes the following conditions: not the ultimate degree of certainty, is the test of proof
There are three types of disability benefits granted in compensation proceedings.
1. The employee must have been injured at the under P.D. No. 626:
place where his work required him to be; WON De Castro proved that his heart ailments are work-
1. temporary total disability related and/or have been precipitated by his duties with
2. The employee must have been performing his
official functions; and 2. permanent total disability; and the AFP.
3. If the injury was sustained elsewhere, the 3. permanent partial disability. YES. Other than the given facts, another undisputed
employee must have been executing an order A disability is considered total and permanent if as a aspect of the case is the status of the ailments that
of the employer. result of the injury or sickness, the employee is unable precipitated De Castro's separation from the military
to perform any gainful occupation for a continuous service — CAD and hypertensive cardiovascular
The first condition has been met by petitioner. SPO1 disease. These are occupational diseases.
Rodrin may have been in the line of duty or on a period exceeding 120 days.
surveillance mission at the time and place of his Disability should be understood not singly through its The causes of CAD and hypertension that the ECC listed
shooting. Being specifically assigned to conduct medical significance but, more importantly, in terms of and explained in its decision cannot be denied; smoking
intelligence work in Carmona and Biñ an, SPO1 Rodrin is a person's loss of earning capacity. and drinking are undeniably among these causes.
presumed to have been performing his official duty However, they are not the sole causes of CAD and
Permanent total disability means disablement of an hypertension and, at least, not under the circumstances
when he was shot to death by a security guard. Simply employee to earn wages in the same kind of work, or
because SPO1 Rodrin was in the company of his of the present case.
work of a similar nature that he was trained for or
brothers-in-law who are not members of any law accustomed to perform, or any kind of work which a In any determination of compensability, the nature and
 Kestrel Shipping Co. et al., v. Munar 2013
characteristics of the job are as important as raw seafarer is still unable to resume his regular
medical findings and a claimant's personal and social If after the lapse of the 120 or 240 day periods, the seafaring duties.
history. seafarer is still incapacitated to perform his usual sea
In this case, the following are undisputed:
duties and the company- designated physician had not
The military's disability certification clearly states that a. when Munar filed a complaint for total and
yet declared him fit to work or permanently disabled,
De Castro's ailments were: (1) aggravated by active permanent disability benefits, 181 days had
whether total or permanent, the conclusive
service, (2) incident to service, (3) not incurred while lapsed from the time he signed-off from M/V
presumption that the latter is totally and
on AWOL, (4) never existed prior to entry to military Southern Unity;
permanently disabled arises.
service, (5) not due to misconduct, (6) not incurred by
private avocation and, (7) in line of duty. WON Munar is entitled to the maximum compensation b. Dr. Chua issued a disability grading after the
benefit as provided under the POEA Standard lapse of 197 days; and
Intoxication which does not incapacitate the employee
from following his occupation is not sufficient to defeat Employment Contract. c. Munar secured the opinion of Dr. Chiu;
the recovery of compensation, although intoxication YES. Under Section 32 of the POEA-SEC, only those d. no third doctor was consulted by the parties;
may be a contributory cause to his injury. While injuries or disabilities that are classified as Grade 1 may and
smoking may contribute to the development of a heart be considered as total and permanent. However, if those e. Munar did not question the competence and
ailment, heart ailment may be caused by other factors injuries or disabilities with a disability grading from 2 skill of the company-designated physicians and
such as working and living under stressful conditions. to 14, hence, partial and permanent, would incapacitate their familiarity with his medical condition.
Based on the totality of the circumstances surrounding a seafarer from performing his usual sea duties for a
period of more than 120 or 240 days, depending on the When Munar filed his complaint, Dr. Chua had not yet
De Castro's case, we are convinced that his long years of determined the nature and extent of Munar’s disability.
military service, with its attendant stresses and need for further medical treatment, then he is, under
legal contemplation, totally and permanently disabled. Also, Munar was still undergoing physical therapy and
pressures, contributed in no small measure to the his spine injury had yet to be fully addressed.
ailments that led to his disability retirement. The company-designated physician is expected to arrive Furthermore, when Munar filed a claim for total and
at a definite assessment of the seafarer’s fitness to work permanent disability benefits, more than 120 days had
3. Philippine Overseas Employment or permanent disability within the period of 120 or 240 gone by and the prevailing rule then was that
Administration Standard Employment Contract days. Should he fail to do so and the seafarer’s medical enunciated by this Court in Crystal Shipping, Inc. v.
condition remains unresolved, the seafarer shall be Natividad that total and permanent disability refers to
Great Southern Maritime Service Corp., et al., v. Surigao deemed totally and permanently disabled. the seafarer’s incapacity to perform his customary sea
The general rule is that the employer is liable to pay the In Vergara v. Hammonia Maritime Services, Inc., the duties for more than 120 days.
heirs of the deceased seafarer for death benefits once it Court read the POEA-SEC in harmony with the Labor Consequently, that after the expiration of the 120-day
is established that he died during the effectivity of his Code and the AREC in interpreting in holding that: period, Dr. Chua had not yet made any declaration as to
employment contract.
a. the 120 days provided under Section 20-B(3) Munar’s fitness to work and Munar had not yet fully
However, the employer may be exempted from liability of the POEA-SEC is the period given to the recovered and was still incapacitated to work sufficed
if he can successfully prove that the seafarer's death employer to determine fitness to work and to entitle the latter to total and permanent
was caused by an injury directly attributable to his when the seafarer is deemed to be in a state of disability benefits.
deliberate or willful act. total and temporary disability; In addition, that it was by operation of law that brought
WON Leonila is entitled to death benefits for the death of b. the 120 days of total and temporary disability forth the conclusive presumption that Munar is totally
her husband under the POEA Standard Employment may be extended up to a maximum of 240 and permanently disabled, there is no legal
Contract for seafarers. days should the seafarer require further compulsion for him to observe the procedure
NO. Respondents' entitlement to any death benefits medical treatment; and prescribed under Section 20-B(3) of the POEA-SEC.
depends on whether the evidence of the petitioners c. a total and temporary disability becomes A seafarer’s compliance with such procedure
suffices to prove that the deceased committed suicide; permanent when so declared by the company- presupposes that the company-designated physician
the burden of proof rests on his employer. designated physician within 120 or 240 days, came up with an assessment as to his fitness or
as the case may be, or upon the expiration of unfitness to work before the expiration of the 120-day
The post-mortem examination conclusively established
the said periods without a declaration of either or 240-day periods.
that the true cause of death was asphyxia or suffocation.
fitness to work or permanent disability and the
Sy v. Phil Transmarine Carriers Inc. 2013
 Nazareno v. Maersk Filipinas Crewing Inc. et al. 2013
The qualification that death must be work-related has repatriated due to the said injury; and was declared
made it necessary to show a causal connection between En Banc
unfit for duty several times by the doctors who
a seafarer’s work and his death to be compensable. If serious doubt exists on the company-designated attended and treated petitioner abroad and in Manila.
Disability or death must arise physician's declaration of the nature of a seaman's Clearly, the medical certificate issued by Dr. Campana
(1) out of employment, AND injury and its corresponding impediment grade, resort cannot be given much weight and consideration against
to prognosis of other competent medical professionals the overwhelming findings and diagnoses of different
(2) in the course of employment. should be made. doctors, here and abroad, that petitioner was not fit for
WON Sy is entitled to death benefits under the POEA WON under Section 20 of the said POEA-SEC, the work and can no longer perform his duties as a seafarer.
Standard Contract. disability of a seafarer can only be assessed by the
NO. To be entitled for death compensation benefits company-designated physician and not by the seafarer’s Philman Marine Agency Inc. et al., v. Cabanban 2013
from the employer, the death of the seafarer own doctor.
The doctor who has had a personal knowledge of the
(1) must be work-related; and NO. In Seagull Maritime Corporation v. Dee, the Court actual medical condition, having closely, meticulously
(2) must happen during the term of the held that nowhere in the case of German Marine and regularly monitored and actually treated the
employment contract. Agencies, Inc. v. NLRC was it held that the company- seafarer’s illness, is more qualified to assess the
designated physician’s assessment of the nature and seafarer’s disability.
Under the Amended POEA Contract, work-relatedness extent of a seaman's disability is final and conclusive on
is now an important requirement. Under the 2000 the employer company and the seafarer-claimant. While WON Armando is entitled to total and permanent
POEA Amended Employment Contract, work-related it is the company-designated physician who must disability benefits.
injury is defined as an injury(ies) resulting in disability declare that the seaman suffered a permanent disability NO. The entitlement of a seafarer on overseas
or death arising out of and in the course of employment. during employment, it does not deprive the seafarer of employment to disability benefits is governed by the
The words "arising out of" refer to the origin or cause his right to seek a second opinion. medical findings, by law and by the parties’ contract. By
of the accident, and are descriptive of its character, The certification of the company-designated physician law, the governing provisions are Articles 191 to 193,
while the words "in the course of" refer to the time, would defeat petitioner’s claim while the opinion of the Chapter VI (Disability Benefits) of the Labor Code, in
place and circumstances under which the accident takes independent physicians would uphold such claim. In relation to Section 2, Rule X of the Rules and
place. such a situation, the Court adopts the findings favorable Regulations Implementing Book IV of the Labor Code.
An injury or accident is said to arise "in the course of to petitioner. The law looks tenderly on the laborer. By contract, the provisions of the POEA-SEC
employment" incorporating Department Order No. 4, series of 2000 of
WON petitioner is entitled to disability benefits based on the DOLE (the POEA-SEC) govern.
1. when it takes place within the period of the the findings and conclusions, not only of his personal
doctors, but also on the findings of the doctors whom he When read together with Articles 191 to 193, and
employment,
consulted abroad. Section 2, Rule X, and following our various
2. at a place where the employee reasonably may pronouncements, Section 20-B of the POEA-SEC
YES. It is apparent that in a message to Elite, it was evidently shows that it is the company-designated
be, and
established that petitioner was already declared “not fit physician who primarily assesses the degree of the
3. while he is fulfilling his duties or is engaged in for duty” and was advised to be confined and undergo seafarer’s disability.
doing something incidental thereto. MRI treatment. Similarly, when petitioner was brought
to the Ulsan Hyundai Hospital, South Korea for his 1. Upon the seafarer’s repatriation for medical
At the time of the accident, AB Sy was on shore leave
frozen right shoulder, he was again declared not fit for treatment, and during the course of such
and there was no showing that he was doing an act in
duty and was advised to be “signed off” for further treatment, the seafarer is under total
relation to his duty as a seaman or engaged in the
physical therapy. temporary disability and receives medical
performance of any act incidental thereto. It was not
allowance until the company-designated
also established that, at the time of the accident, he was From the findings and prognosis of the rest of physician declares his fitness to work
doing work which was ordered by his superior ship petitioner’s doctors who attended and treated him, resumption or determines the degree of the
officers to be done for the advancement of his petitioner already established that he is entitled to seafarer’s permanent disability - either total or
employer's interest. Consequently, his death could not disability benefits. Indeed, the fact remains that partial.
be considered work-related to be compensable. petitioner injured his right shoulder while on board the
vessel of Elite; that he received treatment and was 2. The company-designated physician should,
however, make the declaration or
 determination within 120 days, otherwise, the designated physician should prevail. condition or health at the time he received the injury, or
law considers the seafarer’s disability as that he be free from disease.
total and permanent and the latter shall be Austria v. Crystal Shipping 2016
entitled to disability benefits. Dizon v. Naess Shipping Phils 2016
Pre-existence of an illness does not irrevocably bar
3. Should the seafarer still require medical compensability because disability laws still grant the The three-day period from return of the seafarer or
treatment for more than 120 days, the period same provided seafarer's working conditions bear sign-off from the vessel, whether to undergo a post-
granted to the company-designated physician causal connection with his illness. employment medical examination or report the
to make the declaration of the fitness to work seafarer's physical incapacity, should always be
or determination of the permanent disability WON Austria was entitled to permanent disability
benefits despite his pre-existing condition. complied with to determine whether the injury or
may be extended, but not to exceed 240 days. illness is work-related.
4. At anytime during this latter period, the YES. For disability to be compensable under Section 20
(B) of the 2000 POEA-SEC, two elements must concur: WON Dizon is entitled to disability benefits.
company-designated physician may make the
declaration or determination: either the 1) the injury or illness must be work-related; and NO. Settled is the rule that the entitlement of seamen on
seafarer will no longer be entitled to any overseas work to disability benefits is a matter
2) the work-related injury or illness must have governed, not only by medical findings, but by law
sickness allowance as he is already declared fit existed during the term of the seafarer's
to work, or he shall be entitled to receive and by contract.
employment contract.
disability benefits depending on the degree of The law specifically declares that failure to comply with
his permanent disability. The 2000 POEA-SEC defines "work-related injury" as the mandatory reporting requirement shall result in
"injury(ies) resulting in disability or death arising out of the seafarer's forfeiture of his right to claim benefits
5. In case of disagreement between the findings of and in the course of employment" and "work-related
the company-designated physician and the thereunder.
illness" as "any sickness resulting to disability or death
seafarer’s appointed physician, the parties shall as a result of an occupational disease listed under Dizon did not submit himself to a post employment
jointly agree to refer the matter to a third Section 32-A. medical examination within three days from his arrival
doctor whose findings shall be final and after completing his last contract with the respondents.
binding on both. For an occupational disease and the resulting Dizon does not proffer an explanation or reason for his
disability or death to be compensable, all of the failure to comply.
Here, the petitioners’ designated physician – Dr. Alegre following conditions must be satisfied:
– declared Armando fit for sea service 92 days from the The burden is on the seafarer to prove that he suffered
time he disembarked. While Armando was initially 1. The seafarer's work must involve the risks from a work-related injury or illness during the term of
under temporary total disability, Dr. Alegre declared described herein; his contract. It is stressed that Dizon's repatriation was
him fit to work well within the 120-day mark. 2. The disease was contracted as a result of the due to expiration of his employment contract and not
Armando, acting well within his rights, disagreed with seafarer's exposure to the described risks; because of medical reasons. His coronary artery disease
the assessment of the company-designated physician 3. The disease was contracted within a period of which rendered him unfit for sea duty was diagnosed
and sought the opinion of four private physicians who exposure and under such other factors during a pre-employment medical examination and
arrived at a contrary finding. We note, however, that he necessary to contract it; and not in a post-employment medical examination as
did so only after he had already filed his complaint with provided by law.
4. There was no notorious negligence on the
the LA. Thus, Armando, in fact, had no ground for a part of the seafarer. It is crucial that Dizon present concrete proof showing
disability claim at the time he filed his complaint, as he that he indeed acquired or contracted the illness which
did not have any sufficient evidentiary basis to support As succinctly pointed above, petitioner's working resulted in his disability during the term of his
his claim. environment as chef constantly exposed him to factors employment contract. Other than his uncorroborated
that could aggravate his heart condition. and self-serving allegation, Dizon failed to demonstrate
More than this, the disagreement between the findings
of the company-designated physician and Armando’s Compensability of an ailment does not depend on that his illness developed under any of the conditions
chosen physicians was never referred to a third whether the injury or disease was pre-existing at the set forth in the POEA-SEC for the said to be considered
doctor. Considering the absence of findings coming time of the employment but rather if the disease or as a compensable occupational disease.
from a third doctor, we sustain the findings of the NLRC injury is work-related or aggravated his condition. It
and hold that the certification of the company- is not necessary, in order for an employee to recover
compensation, that he must have been in perfect
 building, crisis management and spiritual
E. Solo Parents enrichment.
F. Kasambahay
See also its IRR. Some salient points 2. Flexible Work Schedule. — The employer shall See also its IRR.
1. Comprehensive Package of Social Development provide for a flexible work schedule for solo Coverage
and Welfare Services. — A comprehensive parents.
Apply to all parties to an employment contract for the
package of social development and welfare 3. Work Discrimination. — No employer shall services of the following Kasambahay, whether on a
services for solo parents and their families will be discriminate against any solo parent employee live-in or live-out arrangement, such as but not
developed. The DSWD shall coordinate with with respect to terms and conditions of limited to:
concerned agencies the implementation of the employment on account of his/her status.
a) General househelp;
comprehensive package of social development 4. Parental Leave. — In addition to leave privileges
and welfare services for solo parents and their b) Yaya;
under existing laws, parental leave of not more
families. The package will initially include: than seven (7) working days every year shall be c) Cook;
a. Livelihood development services, which granted to any solo parent employee who has d) Gardener;
include training on livelihood skills, basic rendered service of at least one (1) year. The
e) Laundry person; or
business management, value orientation seven-day parental leave shall be non-cumulative.
and the provision of seed capital or job f) Any person who regularly performs domestic
5. Educational Benefits. — The DepEd, CHED and
placement. work in one household on an occupational
TESDA shall provide the following benefits and
basis.
b. Counseling services, which include privileges:
individual, peer group or family The following are not covered:
a. Scholarship programs for qualified solo
counseling. These will focus on the parents and their children in institutions a) Service providers;
resolution of personal relationship and of basic, tertiary and technical/skills b) Family drivers;
role conflicts. education;
c) Children under foster family arrangement;
c. Parent effectiveness services which b. Non-formal education programs and
include the provision and expansion of appropriate for solo parents and their
knowledge and skills of the solo parent d) Any other person who performs work
children.
on early childhood development, occasionally or sporadically and not on an
6. Housing Benefits. — Solo parents who meet the occupational basis.
behavior management, health care and
eligibility criteria for housing assistance under
proper nutrition, rights and duties of "Domestic worker" or "Kasambahay" refers to any
R.A. No. 7279 and other related rules and
parents and children; person engaged in domestic work within an
regulations of participating housing agencies shall
d. Critical incidence stress debriefing, which employment relationship, whether on a live-in or live-
be provided with liberal terms of payment on
includes preventive stress management out arrangement, such as, but not limited to, general
government low-cost housing projects, in
strategy designed to assist solo parents househelp, "yaya", cook, gardener, or laundry person,
accordance with housing law provisions,
in coping with crisis situations and cases but shall exclude service providers, family drivers,
prioritizing applicants below the poverty line as
of abuse; children who are under foster family arrangement, or
declared by the NSCB.
any person who performs domestic work only
e. Special projects for individuals in need of 7. Medical Assistance. — The DOH shall develop a occasionally or sporadically and not on an
protection which include temporary comprehensive health care program for solo occupational basis.
shelter, counseling, legal assistance, parents and their children.
medical care, self- concept or ego- "Household" refers to the immediate members of the
family or the occupants of the house who are directly
and regularly provided services by the Kasambahay.
 "Live-out arrangement" refers to an arrangement k) Any other lawful condition agreed upon by
whereby the Kasambahay works within the both parties. in this case, none of the party is entitled to claim any
indemnity from the other. Verily, in a case where the
employer's household but does not reside therein If the Kasambahay is below 18 years old, the employee's failure to work was occasioned neither by
“Deployment expenses" refers to expenses that are employment contract shall be signed by his/her his abandonment nor by a termination, the burden of
directly used for the transfer of the Kasambahay from parent or lawful guardian on his/her behalf. Upon the economic loss is not rightfully shifted to the employer;
place of origin to the place of work covering the cost request of either party, the Punong Barangay or each party must bear his own loss. Otherwise stated,
of transportation, meals, communication expense, and his/her designated officer shall read and explain the the respondent's act of not reporting to work after a
verbal miscommunication cannot justify the payment of
other incidental expenses. Advances or loans by the contents of the contract to both parties and shall
any form of remuneration.
Kasambahay are not included in the definition of serve as its witness.
deployment expenses. Renewal of Contract. — Should the parties mutually
G. Agrarian Relations
"Private Employment Agency (PEA)" refers to any agree to continue their employment relationship upon
individual, partnership, corporation or entity licensed expiration of the contract, they shall execute a new 1. Concept of agrarian reform
by the DOLE to engage in the recruitment and contract to be registered with the concerned
Agrarian Reform means redistribution of lands,
placement of Kasambahay for local employment. barangay. However, if the parties fail to execute a new
regardless of crops or fruits produced, to farmers and
"Working children" refers to Kasambahay who are contract, the terms and conditions of the original
regular farmworkers who are landless, irrespective of
fifteen (15) years old and above but below eighteen contract and other improvements granted during the
tenurial arrangement, to include the totality of factors
(18) years old. effectivity of said contract are deemed renewed.
and support services designed to lift the economic
Atienza v. Saluta 2019 status of the beneficiaries and all other arrangements
Employment contract and renewal
WON the Labor Code governs the rights of family drivers. alternative to the physical redistribution of lands,
Before the commencement of the service, a written
such as production or profit-sharing, labor
employment contract between the Kasambahay and NO. The Civil Code shall govern the rights of family
drivers. administration, and the distribution of shares of
the employer shall be accomplished in three (3)
stocks, which will allow beneficiaries to receive a just
copies. The contract shall be in a language or dialect Section 44 of Republic Act No. 10361 or "Batas
Kasambahay", expressly repealed Chapter III share of the fruits of the lands they work.
understood by both the Kasambahay and the
employer, and shall include the following: (Employment of Househelpers) of the Labor Code,
Scope
which includes Articles 141 and 149.
a) Duties and responsibilities of the Shall cover, regardless of tenurial arrangement and
The Kasambahay Law, on the other hand, made no
Kasambahay, including the responsibility to mention of family drivers in the enumeration of those commodity produced, all public and private
render satisfactory service at all times; workers who are covered by the law. This is unlike agricultural lands, including other lands of the public
b) Period of employment; Article 141 of the Labor Code. domain suitable for agriculture:
It is a settled rule of statutory construction that the Provided, That landholdings of landowners with a
c) Compensation;
express mention of one person, thing, or consequence total area of five (5) hectares and below shall not
d) Authorized deductions; implies the exclusion of all others — this is expressed in
be covered for acquisition and distribution to
the familiar maxim, expressio unius est exclusio alterius.
e) Hours of work and proportionate additional qualified beneficiaries.
payment; Due to the express repeal of the Labor Code provisions
pertaining to househelpers, which includes family More specifically, the following lands are covered by
f) Rest days and allowable leaves; drivers, by the Kasambahay Law; and the non- the CARP:
g) Board, lodging and medical attention; applicability of the Kasambahay Law to family drivers,
a. All alienable and disposable lands of the
there is a need to revert back to the Civil Code
h) Agreements on deployment expenses, if any; provisions, particularly Articles 1689, 1697 and 1699, public domain devoted to or suitable for
Section 1, Chapter 3, Title VIII, Book IV thereof. agriculture;
i) Loan agreement, if any;
j) Termination of employment; and Given that there is neither dismissal nor abandonment
 b. All lands of the public domain in excess of the Right to Choose. — The right to choose the area 2) Acceptance or Rejection. —
specific limits; to be retained, which shall be compact or Within 30 days from receipt, the
c. All other lands owned by the Government contiguous, shall pertain to the landowner. land owner informs DAR of his
devoted to or suitable for agriculture; and In case the area selected for retention by the decision.

d. All private lands devoted to or suitable for landowner is tenanted, the tenant shall have the 3) Accepts. — Land Bank shall pay
agriculture regardless of the agricultural option to choose whether to remain therein or be the purchase price of the land
products raised or that can be raised thereon. a beneficiary in the same or another agricultural within 30 days after the land
land with similar or comparable features. owner executes and delivers a
In Luz Farms v. Secretary of the DAR, the Court
a. In case the tenant chooses to remain in deed of transfer and surrenders
declared unconstitutional the CARL provisions that
the retained area, he shall be considered the Certificate of Title.
included lands devoted to livestock under the
coverage of the CARP. The transcripts of the a leaseholder and shall lose his right to 4) Rejects or Fails to Reply. —
deliberations of the Constitutional Commission of be a beneficiary under this Act. DAR shall conduct summary
1986 on the meaning of the word "agricultural" b. In case the tenant chooses to be a administrative proceedings to
showed that it was never the intention of the framers beneficiary in another agricultural land, determine the compensation for
of the Constitution to include the livestock and he loses his right as a leaseholder to the the land.
poultry industry in the coverage of the land retained by the landowner. 5) Payment/ Deposit and
constitutionally mandated agrarian reform program The tenant must exercise this option within a Possession of Land. — Upon
of the government. period of one (1) year from the time the receipt by the landowner of
Thus, lands devoted to the raising of livestock, landowner manifests his choice of the area for payment or, in case of rejection
poultry and swine have been classified as retention. or no response, upon the deposit
industrial, not agricultural, and thus exempt from with an accessible bank by DAR
2. Rules of Acquisition. — of the compensation in cash or in
agrarian reform.
a. Notice of Coverage. — Is necessary to LBP bonds, DAR shall take
Mechanism give the landowner the opportunity to immediate possession of the
1. Rules of Identification. — Only covered lands contest the inclusion of his land either land and shall request for the
can be acquired. Covered lands are: because it is not agricultural, or it is issuance of a TCT in the name of
within his right of retention. the Republic.
a. Agricultural lands devoted to agricultural
activity; and b. Notice to Acquire. — The following 6) Just compensation. — Any
procedure shall be followed: party who disagrees may bring
b. Which are outside the retention right of
1) After having identified the the matter to the court of
the owner and his children.
landowners and beneficiaries, proper jurisdiction for the final
Right of Retention. — in no case shall retention determination of JC.
the DAR shall send its notice to
by the landowner exceed five (5) Has. Three (3)
acquire the land to the owners Factors. — In determining just compensation,
Has may be awarded to each child of the
thereof, and post the same in a
landowner, subject to the following qualifications: c. the cost of acquisition of the land,
conspicuous place in a municipal
a. that he is at least fifteen (15) years of or barangay hall of the place d. the value of the standing crop,
age; and where the property is located. e. the current value of like properties,
b. that he is actually tilling the land or Said notice shall also contain the f. its nature,
directly managing the farm. offer of DAR to pay a
g. actual use and income,
corresponding value.
 h. the sworn valuation by the owner, j. others directly working on the land. facilities that cannot be subdivided or
i. the tax declarations, The children of landowners who are qualified assigned to individual farmers.

j. the assessment made by government shall be given preference in the distribution of the Transferability of Awarded Lands
assessors, and land of their parents, and that actual tenant-tillers
1. Lands acquired by beneficiaries under this Act or
in the landholdings shall not be ejected or
k. seventy percent (70%) of the zonal other agrarian reform laws shall not be sold,
removed therefrom.
valuation of the Bureau of Internal transferred or conveyed except
Revenue (BIR), Distribution Limit. — No qualified beneficiary
a. through hereditary succession, or
may own more than three (3) Has of agricultural
translated into a basic formula by the DAR shall b. to the government, or
land.
be considered, subject to the final decision of
Collective Ownership. — The beneficiaries may c. to the LBP, or
the proper court.
opt for collective ownership, such as co-workers d. to other qualified beneficiaries through
The social and economic benefits contributed by
or farmers cooperative or some other form of the DAR
the farmers and the farmworkers and by the
collective organization and for the issuance of
Government to the property as well as the for a period of ten (10) years.
collective ownership titles.
nonpayment of taxes or loans secured from any The children or the spouse of the transferor shall
government financing institution on the said land The total area that may be awarded shall not
have a right to repurchase the land from the
shall be considered as additional factors to exceed the total number of co-owners or
government or LBP within a period of two (2)
determine its valuation. members of the cooperative or collective
years.
organization multiplied by the award limit.
3. Rules of Distribution. — A beneficiary shall 2. If the land has not yet been fully paid by the
The conditions for the issuance of collective titles
have these basic qualities beneficiary, the rights to the land may be
are as follows:
a. Willingness; transferred or conveyed, with prior approval of
k. The current farm management system of the DAR, to any heir of the beneficiary or to any
b. Aptitude; and the land covered by CARP will not be other beneficiary who, as a condition for such
c. Ability to cultivate and make the land as appropriate for individual farming of transfer or conveyance, shall cultivate the land
productive as possible. farm parcels; himself/herself.
Qualified Beneficiaries. — The lands covered by l. The farm labor system is specialized, Failing compliance herewith, the land shall be
the CARP shall be distributed as much as possible where the farmworkers are organized by transferred to the LBP which shall give due notice
to landless residents of the same barangay, or functions and not by specific parcels such of the availability of the land.
in the absence thereof, landless residents of the as spraying, weeding, packing and other
In the event of such transfer to the LBP, the latter
same municipality in the following order of similar functions;
shall compensate the beneficiary in one lump sum
priority: m. The potential beneficiaries are currently for the amounts the latter has already paid,
d. agricultural lessees and share tenants; not farming individual parcels hut together with the value of improvements he/she
e. regular farmworkers; collectively work on large contiguous has made on the land.
areas; and
f. seasonal farmworkers; Agrarian Dispute
n. The farm consists of multiple crops being
g. other farmworkers; 1. Refers to any controversy relating to and
farmed in an integrated manner or
h. actual tillers or occupants of public lands; includes non-crop production areas that including
i. collectives or cooperatives of the above are necessary for the viability of farm a. tenurial arrangements, whether
beneficiaries; and operations, such as packing plants, leasehold, tenancy, stewardship or
storage areas, dikes, and other similar
 otherwise, over lands devoted to injunction against the PARC, the DAR, or any of its
Whether it is MTC or the DARAB which has jurisdiction
agriculture, duly authorized or designated agencies in any over the case.
b. disputes concerning farmworkers' case, dispute or controversy arising from,
DARAB. The controversy involves an agricultural land,
associations or representation of persons necessary to, or in connection with the which petitioners have continuously and personally
in negotiating, fixing, maintaining, application, implementation, enforcement, or cultivated since the 1960s. In the Kasunduan, it was
changing, or seeking to arrange terms or interpretation of this Act and other pertinent laws admitted that Jesus Fajardo was the tiller of the land.
conditions of such tenurial on agrarian reform. Being agricultural lessees, petitioners have a right to a
home lot and a right to exclusive possession thereof by
arrangements. 5. Special Jurisdiction. — The Special Agrarian
virtue of Section 24, R.A. No. 3844. Logically, therefore,
c. compensation of lands acquired under Courts shall have original and exclusive the case involves an agrarian dispute, which falls
this Act and jurisdiction within the contemplation of R.A. No. 6657.
d. other terms and conditions of transfer of a. over all petitions for the determination of The instant case involves a controversy regarding
just compensation to landowners, and tenurial arrangements. The contention that the
ownership from landowners to
Kasunduans, which allegedly terminated the tenancy
farmworkers, tenants and other agrarian b. the prosecution of all criminal offenses relationship between the parties and, therefore,
reform beneficiaries, whether the under this Act. removed the case from the ambit of R.A. No. 6657, is
disputants stand in the proximate Monsanto v. Sps Zerna untenable. There still exists an agrarian dispute because
relation of farm operator and beneficiary, the controversy involves the home lot of petitioners,
landowner and tenant, or lessor and An agrarian dispute refers to any controversy relating an incident arising from the landlord-tenant
to tenurial arrangements — whether leasehold, relationship.
lessee.
tenancy, stewardship or otherwise — over lands
2. Certification of the BARC. — The DAR shall not In Teresita S. David v. Agustin Rivera, this Court held
devoted to agriculture, including
that:
take cognizance of any agrarian dispute or 1) disputes concerning farm workers'
controversy unless a certification from the BARC The existence of prior agricultural tenancy
associations; or
relationship, if true, will divest the MCTC of its
that the dispute has been submitted to it for 2) representation of persons in negotiating, fixing, jurisdiction; the previous juridical tie compels the
mediation and conciliation without any success of maintaining, changing or seeking to arrange characterization of the controversy as an "agrarian
settlement is presented. terms or conditions of such tenurial dispute." Even if the tenurial arrangement has been
arrangement. severed, the action still involves an incident arising
3. Certiorari. — Any decision, order, award or
Here, an agrarian dispute existed between the parties. from the landlord and tenant relationship. Where
ruling of the DAR on any agrarian dispute or on
the case involves the dispossession by a former
any matter pertaining to the application, 1. First, the subject of the dispute between them
landlord of a former tenant of the land claimed to
implementation, enforcement, or interpretation was the taking of coconuts from the property
have been given as compensation in consideration
of this Act and other pertinent laws on agrarian owned by petitioner.
of the renunciation of the tenurial rights, there
reform may be brought to the Court of Appeals by 2. Second, private respondents were the clearly exists an agrarian dispute.
certiorari except as otherwise provided in this Act overseers of the property at the time of the
This jurisdiction does not require the continuance of the
taking of the coconuts, as can be gleaned from
within fifteen (15) days from the receipt of a relationship of landlord and tenant—at the time of the
the Kasabutan (or Agreement) executed
copy thereof. dispute. The same may have arisen, and oftentimes
between them.
arises, precisely from the previous termination of such
The findings of fact of the DAR shall be final and 3. Finally, a tenurial arrangement exists among relationship. If the same existed immediately, or
conclusive if based on substantial evidence. herein parties as regards the harvesting of the shortly, before the controversy and the subject-matter
agricultural products, as shown by the several thereof is whether or not said relationship has been
4. No Restraining Order or Preliminary
remittances made by private respondents to lawfully terminated, or if the dispute springs or
Injunction. — Except for the Supreme Court, no petitioner. These are substantiated by receipts. originates from the relationship of landlord and tenant,
court shall have jurisdiction to issue any the litigation is (then) cognizable by the DARAB.
restraining order or writ of preliminary Sps Fajardo v. Flores 2010
Here, petitioners' claim that the tenancy relationship
 6) The compensation is a share in the harvest
has been terminated by the Kasulatan is of no moment. Indeed, the subject landholding had been reclassified
or money. under Kapasiyahan Big. 03-(89) dated January 7, 1989
As long as the subject matter of the dispute is the
legality of the termination of the relationship, or if the Advincula-Velasquez v. CA of the Municipality of Biñ an, Laguna. It is wmih noting,
dispute originates from such relationship, the case is however, that said reclassification has not been
Since the property was already reclassified as approved by the HLURB based on its Certification.
cognizable by the DAR, through the DARAB. The
residential by the Metro Manila Commission and the
severance of the tenurial arrangement will not render The tax declaration presented by petitioner indicating
HSRC before the effectivity of RA No. 6657, there was no
the action beyond the ambit of an agrarian dispute. that subject landholdings is a proposed industrial area
need for the private respondent to secure any post facto
is not sufficient in law to effect the reclassification.
approval thereof from the DAR.
2. Existence and concept of agricultural tenancy Neither was there any showing that said reclassification
Alangilan Realty and Development v. Office of the has been authorized by the DAR as required under
Agricultural tenancy is the physical possession by Section 65 of CARL.
a person of land devoted to agriculture belonging to, President 2010
Evidently a "proposal" is quite different from
or legally possessed by, another for the purpose of It is beyond cavil that the Alangilan landholding was "reclassification." Thus, petitioner cannot also rely on
production through the labor of the former and of the classified as agricultural, reserved for residential in said tax declaration to bolster its contention that the
members of his immediate farm household, in 1982, and was reclassified as residential-1 in 1994. subject landholding has already been reclassified from
consideration of which the former agrees to share the However, contrary to petitioner's assertion, the term "agricultural" to "industrial."
harvest with the latter, or to pay a price certain or reserved for residential does not change the nature of
the land from agricultural to non-agricultural. Republic v. Salvador N. Lopez Agri-business Corp 2011
ascertainable, either in produce or in money, or in
both. (Sec 3, RA 1199) The term reserved for residential simply reflects the re Agricultural Land
intended land use. It does not denote that the property
Elements of Agricultural Tenancy Relationship As to the Lopez lands, the MARO in its ocular
has already been reclassified as residential, because the
inspection found on the Lopez lands several heads of
1) The relationship is between a lessor and a phrase reserved for residential is not a land
cattle, carabaos, horses, goats and pigs, some of which
classification category.
lessee — landowner and tenant; were covered by several certificates of ownership.
Indubitably, at the time of the effectivity of the CARL in There were likewise structures on the Lopez lands used
2) The subject of the relationship is 1988, the subject landholding was still agricultural. for its livestock business, structures consisting of two
agricultural land;
chutes where the livestock were kept during nighttime.
Agricultural Land refers to land devoted to Heirs of Deleste v. LBP 2011 The existence of the cattle prior to the enactment of the
agricultural activity as defined in this Act and It is undeniable that the local government has the CARL was positively affirmed by the farm workers and
not classified as mineral, forest, residential, power to reclassify agricultural into non-agricultural the overseer who were interviewed by the MARO. The
lands. The power of the local government to convert or Court finds that the Lopez lands were in fact actually,
commercial or industrial land.
reclassify lands from agricultural to non-agricultural directly and exclusively being used as industrial lands
Agriculture, Agricultural Enterprise or lands prior to the passage of RA 6657 is not subject to for livestock-raising.
Agricultural Activity means the cultivation the approval of the DAR. Furthermore, the presence of coconut trees, although an
of the soil, planting of crops, growing of fruit City Ordinance No. 1313, which was enacted by the City indicia that the lands may be agricultural, must be
trees, including the harvesting of such farm of Iligan in 1975, reclassified the subject property into a placed within the context of how they figure in the
products, and other farm activities and commercial/residential area. There was still no HLURB actual, direct and exclusive use of the subject lands. The
practices performed by a farmer in to speak of during that time. DAR failed to demonstrate that the Lopez lands were
actually and primarily agricultural lands planted with
conjunction with such farming operations As this Court held in Buklod ng Magbubukid sa Lupaing coconut trees. Indeed, the DAR did not adduce any
done by persons whether natural or juridical. Ramos, Inc. v. E.M. Ramos and Sons, Inc., "To be exempt proof to show that the coconut trees on the Lopez lands
from CARP, all that is needed is one valid were used for agricultural business, as required by the
3) The relationship is established by consent;
reclassification of the land from agricultural to non- Court in DAR v. Uy.
4) Its purpose is agricultural production; agricultural by a duly authorized government agency
before June 15, 1988, when the CARL took effect." In contrast, the Limot lands were found to be
5) The service rendered is personal agricultural lands devoted to coconut trees and rubber
cultivation; AND Gonzalo Puyat & Sons v. Alcalde 2016 Resolution and are thus not subject to exemption from CARP
 coverage. The Limot lands were actually, directly and acquiesced to Vicente's cultivating the land. Besides, petitioner is not much. This fact is evident on the record
exclusively used for agricultural activities, a fact that for implied tenancy to arise it is necessary that all of said case which is signed by respondent and was
necessarily makes them subject to the CARP. the essential requisites of tenancy must be present. even attached as Annex "D" of her DARAB petition.
Consequently, we are thus unable to agree with
Monsanto v. Sps Zerna Estate of Samson v. Susano 2011 DARAB's ruling that the affidavits of witnesses that
petitioner pays 15 cavans of palay or the equivalent
A tenancy relationship may be established either Was Macario a de jure tenant in the subject landholding thereof in pesos as rent are not concrete proof to rebut
verbally or in writing, expressly or impliedly. entitled to security of tenure? the allegation of nonpayment of rentals. Indeed,
Here, undisputed by petitioner is the existence of the NO. While the RARAD, DARAB and the CA are respondent's admission confirms their statement that
Kasabutan, which contradicts her contention that unanimous in their conclusion that an implied tenancy rentals are in fact being paid.
private respondents were mere overseers. In any event, relationship existed between Pastor Samson and Respondent's act of allowing the petitioner to cultivate
their "being overseers does not foreclose their being Macario Susano, no specific evidence was cited to her land and receiving rentals therefor indubitably
also tenants," as held in Rupa v. CA. Evidently, the support such conclusion other than their observation show her consent to an unwritten tenancy agreement.
resolution of the agrarian dispute between the parties is that Pastor failed to protest Macario's possession and An agricultural leasehold relation is not determined by
a matter beyond the legal competence of regular cultivation over the subject land for more than 30 years. the explicit provisions of a written contract alone.
courts. Contrary to what is required by law, however, no Section 5 of R.A. No. 3844, otherwise known as the
independent and concrete evidence were adduced by Agricultural Land Reform Code, recognizes that an
Adriano v. Tanco 2010 respondents to prove that there was indeed consent agricultural leasehold relation may exist upon an
and sharing of harvests between Pastor and Macario. oral agreement.
Tenancy relationship is a juridical tie which arises
between a landowner and a tenant once they agree, It has been repeatedly held that occupancy and The next issue is whether there is a valid ground to eject
expressly or impliedly, to undertake jointly the cultivation of an agricultural land will not ipso facto petitioner from the land.
cultivation of a land belonging to the landowner, as a make one a de jure tenant. Independent and concrete
evidence is necessary to prove personal cultivation, NO. Respondent, as landowner/agricultural lessor, has
result of which relationship the tenant acquires the the burden to prove the existence of a lawful cause for
right to continue working on and cultivating the land. sharing of harvest, or consent of the landowner.
the ejectment of petitioner, the tenant/agricultural
Here, the essential requisites of consent and sharing are The affidavits executed by three of respondents' lessee. This rule proceeds from the principle that a
lacking. neighbors are insufficient to establish a finding of tenancy relationship, once established, entitles the
tenancy relationship between Pastor and Macario. As tenant to a security of tenure. The tenant can only be
The essential element of consent is sorely missing correctly observed by the estate of Pastor Samson, the
because there is no proof that the landowners ejected from the agricultural landholding on
affiants did not provide details based on their personal grounds provided by law.
recognized Vicente, or that they hired him, as their knowledge as to how the crop-sharing agreement was
legitimate tenant. And, although Vicente claims that he implemented, how much was given by Macario to 1. The landholding is declared by the department
is a tenant of respondents' agricultural lot in Pastor, when and where the payments were made, or head upon recommendation of the National
Norzagaray, Bulacan, and that he has continuously whether they have at any instance witnessed Pastor Planning Commission to be suited for
cultivated and openly occupied it, no evidence was receive his share of the harvest from Macario. Such residential, commercial, industrial or some
presented to establish the presence of consent other failure is fatal to respondents' claim. other urban purposes; (amended by RA 6389)
than his self-serving statements. These cannot suffice 2. The agricultural lessee failed to substantially
because independent and concrete evidence is needed Galope v. Bugarin 2012 comply with any of the terms and conditions of
to prove consent of the landowner. the contract or any of the provisions of this
The CA and DARAB ruling that there is no sharing of Code unless his failure is caused by fortuitous
Likewise, the essential requisite of sharing of
harvest is based on the absence of receipts to show event or force majeure;
harvests is lacking. Independent evidence, such as petitioner's payment of rentals. We are constrained to
receipts, must be presented to show that there was reverse them on this point. The matter of rental 3. The agricultural lessee planted crops or used
sharing of the harvest between the landowner and the receipts is not an issue given respondent's admission the landholding for a purpose other than what
tenant. Self-serving statements are not sufficient. that she receives rentals from petitioner. To recall, had been previously agreed upon;
Neither can we agree with the DARAB's theory of respondent's complaint in Barangay Case No. 99-6 was 4. The agricultural lessee failed to adopt proven
implied tenancy because the landowner never that the rental or the amount she receives from farm practices;
 3) Absence of the persons to succeed to the lessee, in b) demand the value of the same from the
5. The land or other substantial permanent the event of death or permanent incapacity of the landholder at the time of the unjust
improvement thereon is substantially damaged
lessee. dismissal.
or destroyed or has unreasonably deteriorated
through the fault or negligence of the a) the surviving spouse; 4) The tenant shall have the right to be
agricultural lessee; indemnified for his labor and expenses in the
b) the eldest direct descendant by
6. The agricultural lessee does not pay the lease consanguinity; or cultivation, planting, or harvesting and other
rental when it falls due: incidental expenses for the improvement of the
c) the next eldest descendant or
Provided, That if the non-payment of the rental crop raised in case he is dispossessed of his
descendants in the order of their age.
shall be due to crop failure to the extent of 75% holdings, whether such dismissal is for a just
as a result of a fortuitous event, the non- 3. Rights of agricultural tenants cause and not, provided the crop still exists at the
payment shall not be a ground for time of the dispossession.
dispossession, although the obligation to pay 1) The tenant shall be free to work elsewhere
the rental due that particular crop is not whenever the nature of his farm obligation 4. Concept of farmworkers
thereby extinguished; or warrants his temporary absence from his
1) Farmworker is a natural person who renders
7. The lessee employed a sub-lessee on his holdings.
service for value as an employee or laborer in an
landholding 2) The tenant shall, aside from his labor, have the agricultural enterprise or farm regardless of
None of these grounds were proven by the respondent. right to provide any of the contributions for whether his compensation is paid on a daily,
We have held that the employment of farm laborers to production whenever he can do so adequately weekly, monthly or "pakyaw" basis. The term
perform some aspects of work does not preclude the and on time subject to the provisions of section includes an individual whose work has ceased as
existence of an agricultural leasehold relationship, fourteen of this Act. a consequence of, or in connection with, a
provided that an agricultural lessee does not leave the
3) The tenant shall have the right to demand for a pending agrarian dispute and who has not
entire process of cultivation in the hands of hired
helpers. Indeed, while the law explicitly requires the home lot suitable for dwelling obtained substantially equivalent and regular
agricultural lessee and his immediate family to work on farm employment.
a) with an area of not more than 3 percent
the land, we have nevertheless declared that the hiring of the area of his landholding 2) Regular Farmworker is a natural person who is
of farm laborers by the tenant on a temporary,
employed on a permanent basis by an agricultural
occasional, or emergency basis does not negate the b) provided that it does not exceed one
enterprise or farm.
existence of the element of "personal cultivation" thousand square meters and
essential in a tenancy or agricultural leasehold 3) Seasonal Farmworker is a natural person who is
c) that it shall be located at a convenient
relationship. There is no showing that petitioner has left employed on a recurrent, periodic or intermittent
the entire process of cultivating the land to Allingag. and suitable place within the land of the
basis by an agricultural enterprise or farm,
landholder to be designated by the latter
whether as a permanent or a non-permanent
Extinguishment of Agricultural Leasehold d) where the tenant shall construct his laborer, such as "dumaan", "sacada", and the like.
Relation dwelling and may raise vegetables,
The agricultural leasehold relation established under RA poultry, pigs and other animals and H. Universal Health Care
3844 shall be extinguished by: engage in minor industries, the products
of which shall accrue to the tenant 1. Policy
1) Abandonment of the landholding without the exclusively. It is the policy of the State to protect and promote the
knowledge of the agricultural lessor;
If the tenant is dismissed without just cause and right to health of all Filipinos and instill health
2) Voluntary surrender of the landholding by the consciousness among them. Towards this end, the State
he is constrained to work elsewhere, he may
agricultural lessee, written notice of which shall shall adopt:
choose either to
be served three months in advance; or a. An integrated and comprehensive approach to
a) remove his dwelling at the landholder's
ensure that all Filipinos are health literate,
cost or
 provided with healthy living conditions, and continuing point of contact in the iv) are self-earning, professional
protected from hazards and risks that could affect healthcare delivery system: practitioners, migrant workers,
their health; including their qualified
Provided, That except in emergency or
b. A health care model that provides all Filipinos dependents, and lifetime
serious cases and when proximity is a
access to a comprehensive set of quality and cost- members
effective, promotive, preventive, curative, concern, access to higher levels of care
rehabilitative and palliative health services shall be coordinated by the primary care b) Indirect contributors refer to all others
without causing financial hardship, and provider; and not included as direct contributors, as
prioritizes the needs of the population who d) Every Filipino shall register with a public well as their qualified dependents, whose
cannot afford such services; premium shall be subsidized by the
or private primary care provider of
c. A framework that fosters a whole-of-system, choice. The DOH shall promulgate the national government including those
whole-of-government, and whole-of-society who are subsidized as a result of special
guidelines on the licensing of primary
approach in the development, implementation, laws.
monitoring, and evaluation of health policies, care providers and the registration of
programs and plans; and every Filipino to a primary care provider. 2) Entitlement to Benefits. — Every member shall
d. A people-oriented approach for the delivery of 3) Financial Coverage. — be granted immediate eligibility for health benefit
health services that is centered on people's needs package under the Program:
a) Population-based health services shall be
and well-being, and cognizant of the differences Provided, That PhilHealth Identification Card shall
financed by the National Government
in culture, values, and beliefs. not be required in the availment of any health
through the DOH and provided free of
2. Coverage charge at point of service for all Filipinos. service:
1) Population Coverage. — Every Filipino citizen The National Government shall support Provided, further, That no co-payment shall be
shall be automatically included into the NHIP. LGUs in the financing of capital charged for services rendered in basic or ward
2) Service Coverage. — investments and provision of population- accommodation:

a) Every Filipino shall be granted based interventions. Provided, furthermore, That copayments and
immediate eligibility and access to b) Individual-based health services shall be coinsurance for amenities in public hospitals shall
preventive, promotive, curative, financed primarily through prepayment be regulated by the DOH and PhilHealth:
rehabilitative, and palliative care for mechanisms such as social health Provided, finally, That the current PhilHealth
medical, dental, mental and emergency insurance, private health insurance, and package for members shall not be reduced.
health services, delivered either as HMO plans to ensure predictability of PhilHealth shall provide additional Program
population-based or individual-based health expenditures. benefits for direct contributors, where applicable:
health services;
3. National Health Insurance Program Provided, That failure to pay premiums shall not
b) Within two (2) years from the effectivity prevent the enjoyment of any Program benefits:
1) Program Membership. — Membership into the
of this Act, PhilHealth shall implement a
Program shall be simplified into two (2) types: Provided, further, That employers and self-
comprehensive outpatient benefit,
including outpatient drug benefit and a) Direct contributors refer to those employed direct contributors shall be required to
emergency medical services; pay all missed contributions with an interest,
i) who have the capacity to pay
compounded monthly, of
c) The DOH and the LGUs shall endeavor to premiums,
provide a health care delivery system a) at least three percent (3%) for
ii) are gainfully employed and
employers and
that will afford every Filipino a primary iii) are bound by an employer-
care provider that would act as the b) not exceeding one and one-half percent
employee relationship, or (1.5%) for self-earning, professional
navigator, coordinator, and initial and
practitioners, and migrant workers.
VIII. JURISDICTION AND REMEDIES
A. Labor Arbiter

1. Jurisdiction of the Labor Arbiter as distinguished from the Regional Director

2. Requirements to perfect appeal to NLRC

3. Reinstatement and/or execution pending appeal

B. National Labor Relations Commission

C. Court of Appeals

D. Supreme Court

E. Bureau of Labor Relations

F. National Conciliation and Mediation Board

1. Jurisdiction

2. Conciliation as distinguished from mediation

3. Preventive mediation

G. Department of Labor and Employment Regional Directors

1. Jurisdiction

2. Recovery and adjudicatory power

H. Department of Labor and Employment Secretary

1. Jurisdiction

2. Visitorial and enforcement powers

3. Power to suspend effects of termination

4. Remedies

I. Voluntary Arbitrator

1. Jurisdiction

2. Remedies

J. Prescription of actions

1. Money claims

2. Illegal dismissal
 3. Unfair labor practice

4. Offenses under the Labor Code

5. Illegal recruitment

Issuance of writ of execution to enforce decisions

A. Labor Arbiter (c) Cases arising from the interpretation or of VA or panel of VAs, in case of their absence or
implementation of collective bargaining
incapacity.
1. Jurisdiction of the Labor Arbiter as agreements and those arising from the
distinguished from the Regional Director interpretation or enforcement of company 6. Under Sec 10 of RA 8042
personnel policies shall be disposed of by the
Original and Exclusive Money claims of OFWs arising out of ER-EE
Labor Arbiter by referring the same to the
relationship by virtue of any law or contract,
grievance machinery and voluntary arbitration
ARTICLE 224. Jurisdiction of the Labor Arbiters and the as may be provided in said agreements. including claims of death and disability benefits
Commission. — (a) Except as otherwise provided under and for damages.
this Code, the Labor Arbiters shall have ORIGINAL AND Jurisdiction of the LA under the LC and other laws 7. Other cases as may be provided by law.
EXCLUSIVE jurisdiction to hear and decide, within
thirty (30) calendar days after the submission of the 1. Under Art 224[217] of LC Reasonable Causal Connection Rule
case by the parties for decision without extension, even a. Unfair labor practice cases; A money claim by an EE against the ER or vice-versa is
in the absence of stenographic notes, the following
cases involving all workers, whether agricultural or b. Illegal dismissal; within the exclusive JD of the LA only if there is a
non-agricultural: c. Money claims > P5K; reasonable causal connection between the claim
asserted and the employee relations.
1. Unfair labor practice cases; d. Claims for damages arising from ER-EE
2. Termination disputes; relations; and Absent such a link, the case is cognizable by the regular
courts. An ER claiming damages due to lack of 3-day
3. If accompanied with a claim for e. Legality of strikes and lockouts.
reinstatement, those cases that workers may resignation notice is within the JD of regular courts.
2. Under Art 124 of LC, as amended by RA 6727
file involving wages, rates of pay, hours of work 1. If the court had no JD but the case was tried on
and other terms and conditions of employment; Disputes involving legislated wage increases
the theory that it had JD, the parties are not
4. Claims for actual, moral, exemplary and other and wage distortion in unorganized
barred on appeal from assailing the JD.
forms of damages arising from the employer- establishments not voluntarily settled.
employee relations; 3. Under Art 128(b) of LC, as amended by RA 7730 2. If the court had JD, and the case was heard and
5. Cases arising from any violation of Article 264 decided upon the theory that it had no JD, the
Where the ER contests the findings of the labor
of this Code, including questions involving the party who induced it to adopt such theory is
legality of strikes and lockouts; and employment and enforcement officer and raises
ESTOPPED from questioning it on appeal.
issues supported by documentary proofs which
6. Except claims for Employees Compensation,
Social Security, Medicare and maternity were not considered in the course of inspection. Pepsi-Cola v. Gal-lang
benefits, all other claims arising from 4. Under Art 233[227] of LC The case involves a complaint for damages for
employer-employee relations, including those
Enforcement of compromise agreements when malicious prosecution which was filed with the RTC
of persons in domestic or household service,
there is non-compliance by any of the parties by the employees of the defendant company. It does
involving an amount exceeding five thousand
not appear that there is a "reasonable causal
pesos (P5,000.00) regardless of whether thereto.
connection" between the complaint and the
accompanied with a claim for reinstatement. 5. Under Art 276[262-A] of LC relations of the parties as employer and employees.
xxxx The complaint did not arise from such relations and in
fact could have arisen independently of an employment
 employer and employee.
relationship between the parties. No such relationship It is obvious from the complaint that the plaintiffs have
or any unfair labor practice is asserted. What the not alleged any unfair labor practice. Theirs is a simple
employees are alleging is that the petitioners acted with action for damages for tortious acts allegedly 1. Labor Standards Disputes
bad faith when they filed the criminal complaint which committed by the defendants. Such being the case, the a. Compensation;
the MTC said was intended "to harass the poor governing statute is the Civil Code and not the Labor
employees" and the dismissal of which was affirmed by Code. b. Benefits;
the Provincial Prosecutor "for lack of evidence to c. Working Standards, etc.
True, the maintenance of a safe and healthy workplace
establish even a slightest probability that all the
is ordinarily a subject of labor cases. More, the acts 2. Labor Relations Disputes
respondents herein have committed the crime imputed
complained of appear to constitute matters involving
against them." This is a matter which the labor a. ULP
employee-employer relations since respondent used to
arbiter has no competence to resolve as the
be the Civil Engineer of petitioner. However, it should b. Representation disputes;
applicable law is not the Labor Code but the Revised
be stressed that respondent’s claim for damages is
Penal Code.
specifically grounded on petitioner’s gross negligence to c. Bargaining disputes;
San Miguel v. Etcuban provide a safe, healthy and workable environment for
d. CBA administration/ personnel policy
its employees −a case of quasi-delict.
In the present case, while respondents insist that their disputes, non-compliance with grievance
action is for the declaration of nullity of their "contract When, as here, the cause of action is based on a machinery;
of termination," what is inescapable is the fact that it is, quasi-delict or tort, which has no reasonable causal
in reality, an action for damages emanating from connection with any of the claims provided for in e. Employment Tenure disputes - non-
employer-employee relations. Article 217, jurisdiction over the action is with the regularization, illegal termination.
regular courts.
First, their claim for damages is grounded on their
Jurisprudence Upholding Jurisdiction of LA
having been deceived into severing their employment PAL v. ALPAP 2018
due to SMC's concocted financial distress and Perpetual Help Credit Coop v. Faburada
PAL's cause of action is not grounded on mere acts of
fraudulent retrenchment program — a clear case of
quasi-delict. The claimed damages arose from the Petitioner contends that the labor arbiter has no
illegal dismissal.
illegal strike and acts committed during the same which jurisdiction to take cognizance of the complaint of
Second, a comparison of respondents' complaint for the were in turn closely related and intertwined with the private respondents considering that they failed to
declaration of nullity of the retrenchment program respondents' allegations of unfair labor practices submit their dispute to the grievance machinery. This
before the labor arbiter and the complaint for the against PAL. applies to members, officers and directors of the
declaration of nullity of their "contract of termination" cooperative involved in disputes within a cooperative
Since the loss and injury from which PAL seeks
before the RTC reveals that the allegations and prayer or between cooperatives.
compensation have reasonable causal connection with
of the former are almost identical with those of the There is no evidence that private respondents are
the alleged acts of unfair labor practice, a claim
latter except that the prayer for reinstatement was no members of petitioner PHCCI and even if they are, the
provided for in Article 217 of the Labor Code, the
longer included and the claim for backwages and dispute is about payment of wages, overtime pay,
question of damages becomes a labor controversy and
other benefits was replaced with a claim for actual rest day and termination of employment. Under Art.
is therefore an employment relationship dispute.
damages. 217 of the Labor Code, these disputes are within the
These are telltale signs that respondents' claim for Labor Dispute original and exclusive jurisdiction of the Labor
damages is intertwined with their having been Arbiter.
separated from their employment without just cause ARTICLE 219. Definitions. — xxxx Austria v. NLRC
and, consequently, has a reasonable causal "Labor dispute" includes any controversy or matter
Private respondents contend that by virtue of the
connection with their employer-employee relations concerning terms and conditions of employment or the
doctrine of separation of church and state, the Labor
with SMC. Accordingly, it cannot be denied that association or representation of persons in negotiating,
Arbiter and the NLRC have no jurisdiction to entertain
respondents' claim falls under the jurisdiction of the fixing, maintaining, changing or arranging the terms
the complaint filed by petitioner. Since the matter at bar
labor arbiter as provided in paragraph 4 of Article 217. and conditions of employment, regardless of whether
allegedly involves the discipline of a religious minister,
the disputants stand in the proximate relation of
Indophil Textile Mills v. Adviento 2014 it is to be considered a purely ecclesiastical affair to
 If the relationship and its incidents are merely
which the State has no right to interfere. arising from employer-employee relations, including incidental to the controversy OR if there will still
The grounds invoked for petitioner's dismissal, termination disputes involving all workers, among
be conflict even if the relationship does not exist,
namely: misappropriation of denominational funds, whom are overseas Filipino workers
then there is NO intra-corporate controversy.
willful breach of trust, serious misconduct, gross International Management Services v. Logarta 2012
and habitual neglect of duties and commission of an In the case at bar, despite the fact that respondent was Example of an intra-corporate controversy where RTC has
offense against the person of his employer's duly employed by Petrocon as an OFW in Saudi Arabia, still JD:
authorized representative, are all based on Article both he and his employer are subject to the provisions
282 of the Labor Code which enumerates the just ★ A corporate officer’s dismissal. Monetary claims
of the Labor Code when applicable. The basic policy in
causes for termination of employment. By this alone, this jurisdiction is that all Filipino workers, whether incident to such dismissal, although at first glance
it is palpable that the reason for petitioner's dismissal employed locally or overseas, enjoy the protective cognizable by the LA, is properly taken
from the service is not religious in nature. mantle of Philippine labor and social legislations. cognizance by the RTC since it is intimately linked
Under the Labor Code, the provision which governs the with the officer’s relations with the Corporation.
dismissal of employees, is comprehensive enough to Civil Dispute and Intra-corporate Dispute
include religious corporations, such as the SDA, in its
coverage. With this clear mandate, the SDA cannot hide Intra-corporate disputes pertains to any of the following Action for damages by employer against employee who
behind the mantle of protection of the doctrine of relationships: resigned short of 30 day prior notice. Eviota v. CA
separation of church and state to avoid its a. Between the corporation, partnership, association Petitioner does not ask for any relief under the Labor
responsibilities as an employer under the Labor Code. Code of the Philippines. It seeks to recover damages
AND the public;
Silva v. NLRC agreed upon in the contract as redress for private
b. Between the corporation, partnership, association respondent’s breach of his contractual obligation to its
For a ULP case to be cognizable by the Labor Arbiter,
and the NLRC to exercise its appellate jurisdiction, the AND the State, insofar as its franchise, permit or "damage and prejudice". Such cause of action is within
allegations in the complaint should show prima facie license to operate is concerned; the realm of Civil Law, and jurisdiction over the
the concurrence of two things, namely: controversy belongs to the regular courts. More so
c. Between the corporation, partnership, association when we consider that the stipulation refers to the
(1) gross violation of the CBA; AND AND its stockholders, partners, members or post-employment relations of the parties.
(2) the violation pertains to the economic officers; and Replevin case by ER against EE
provisions of the CBA.
d. Among the stockholders, partners, or associates Smart v Astorga, GR No 148132, 28 Jan 2008
In several instances prior to the instant case, the Court
themselves. Contrary to the CA’s ratiocination, the RTC rightfully
already made its pronouncement that RA 6715 is in the
nature of a curative statute. As such, we declared that it assumed jurisdiction over the suit and acted well within
The Labor Arbiter has NO JD over intra-corporate
can be applied retroactively to pending cases. its discretion in denying Astorga’s motion to dismiss.
disputes. The RTC takes cognizance instead. Two elements SMART’s demand for payment of the market value of
Sim v. NLRC must be present: the car or, in the alternative, the surrender of the car, is
Section 62 of the Omnibus Rules and Regulations a. Relationship Test. The status or RELATIONSHIP not a labor, but a civil dispute. It involves the
Implementing R.A. No. 8042 provides that the Labor relationship of debtor and creditor rather than
of the parties; and
Arbiters of the NLRC shall have the original and employee-employer relations. As such, the dispute falls
exclusive jurisdiction to hear and decide all claims b. Nature of the Controversy Test. The NATURE of within the jurisdiction of the regular courts.
arising out of employer-employee relationship or the question that is the subject of the controversy. Action by employer to recover unpaid loans of employees
by virtue of any law or contract involving Filipino
The controversy must not only be rooted in the who were dismissed. HSBC Ltd. Staff Retirement Plan v.
workers for overseas deployment including claims
Sps Broqueza 2010
for actual, moral, exemplary and other forms of existence of an intra-corporate relationship, but
damages, subject to the rules and procedures of the must pertain to the enforcement of the parties’ The enforcement of a loan agreement involves "debtor-
NLRC. creditor relations founded on contract and does not in
correlative rights and obligations under the
Under these provisions, it is clear that labor arbiters any way concern employee relations. As such it should
Corporation Code and the internal and intra- be enforced through a separate civil action in the
have original and exclusive jurisdiction over claims
corporate regulatory rules of the corporation.
regular courts and not before the Labor Arbiter." unpaid commissions, reinstatement and back wages Cacho v. Balagtas 2018
imputed by petitioner against respondents fall
Action for declaratory relief filed by female flight The existence of an intra-corporate controversy does
squarely within the ambit of intra-corporate
attendants to question the constitutionality of their not wholly rely on the relationship of the parties. The
disputes.
compulsory age of retirement at 55 compared to male incidents of their relationship must also be considered.
workers. Halaguena v. PAL Corporate Officers. Matling Industrial and Commercial Thus, under the nature of the controversy test, the
Corp v. Coros 2010 disagreement must not only be rooted in the existence
From the petitioners' allegations and relief prayed for in
of an intra-corporate relationship, but must as well
its petition, it is clear that the issue raised is whether Conformably with Section 25 of the Corporation Code, a
pertain to the enforcement of the parties' correlative
Section 144, Part A of the PAL-FASAP CBA is unlawful position must be expressly mentioned in the By-Laws
rights and obligations under the Corporation Code and
and unconstitutional. Here, the petitioners' primary in order to be considered as a corporate office. Thus, the
the internal and intra-corporate regulatory rules of the
relief is the annulment of Section 144, Part A of the PAL- creation of an office pursuant to or under a By-Law
corporation. If the relationship and its incidents are
FASAP CBA, which allegedly discriminates against them enabling provision is not enough to make a position a
merely incidental to the controversy or if there will still
for being female flight attendants. The subject of corporate office.
be conflict even if the relationship does not exist, then
litigation is incapable of pecuniary estimation,
In this case, respondent was appointed vice president no intra-corporate controversy exists.
exclusively cognizable by the RTC, pursuant to
for nationwide expansion by Malonzo, petitioner's
Section 19 (1) of Batas Pambansa Blg. 129, as amended. It is clear that the termination complained of is
general manager, not by the board of directors of
Being an ordinary civil action, the same is beyond the intimately and inevitably linked to respondent
petitioner. It was also Malonzo who determined the
jurisdiction of labor tribunals. Balagtas's role as petitioner North Star's Executive Vice
compensation package of respondent. Thus,
President. All the incidents are adjuncts of her
The said issue cannot be resolved solely by applying the respondent was an employee, not a "corporate
corporate office lead the Court to conclude that
Labor Code. Rather, it requires the application of the officer." The CA was therefore correct in ruling that
respondent Balagtas's dismissal is an intra-corporate
Constitution, labor statutes, law on contracts and the jurisdiction over the case was properly with the NLRC,
controversy, not a mere labor dispute.
Convention on the Elimination of All Forms of not the SEC (now the RTC).
Discrimination Against Women,16 and the power to Ellao v. BATELEC 2018
Whoever are the corporate officers enumerated in the
apply and interpret the constitution and CEDAW is
by-laws are the exclusive Officers of the corporation Here, the position of General Manager is expressly
within the jurisdiction of trial courts, a court of general
and the Board has no power to create other Offices provided for under Article VI, Section 10 of BATELEC I's
jurisdiction.
without amending first the corporate By-laws. By-laws. It is therefore beyond cavil that Ellao's position
Intracorporate vs Labor Dispute. Okol v. Slimmers as General Manager is a cooperative office. Accordingly,
Real v. Sangu Phil 2011
World his complaint for illegal dismissal partakes of the nature
The better policy to be followed in determining of an intra-cooperative controversy.
The issue revolves mainly on whether petitioner was an
jurisdiction over a case should be to consider
employee or a corporate officer of Slimmers World.
Section 25 of the Corporation Code enumerates
concurrent factors such as the status or relationship of 2. Requirements to perfect appeal to NLRC
the parties or the nature of the question that is subject
corporate officers as the president, secretary, treasurer a. Decisions, awards or order of LA shall be F&E
of their controversy. In the absence of any one of these
and such other officers as may be provided for in the unless appealed to NLRC within 10 cal days from
factors, the SEC (RTC) will not have jurisdiction.
by-laws. In Tabang v. NLRC, we held that an "office" is receipt thereof.
created by the charter of the corporation and the officer When petitioner sought for reinstatement, he b. In case of decisions or resolutions of RD pursuant
is elected by the directors or stockholders. On the other wanted to recover his position as Manager, a to Art 129, within 5 cal days.
hand, an "employee" usually occupies no office and position which we have, however, earlier declared
generally is employed not by action of the directors or to be not a corporate position. With the elements of c. If last day falls on a weekend or holiday, move to
stockholders but by the managing officer of the intra-corporate controversy being absent in this case, the next working day.
corporation who also determines the compensation to we thus hold that petitioner’s complaint for illegal d. No motion or request extension shall be allowed.
be paid to such employee. dismissal against respondents is not intra-corporate. e. Grounds for appeal:
Rather, it is a termination dispute and, consequently,
From the documents submitted by respondents, a) Prima facie evidence of abuse of
falls under the jurisdiction of the Labor Arbiter
petitioner was a director and officer of Slimmers World. discretion on the part of LA or RD;
pursuant to Section 217 of the Labor Code.
The charges of illegal suspension, illegal dismissal,
 b) Decision, award or order secured b) Surety bond b) Appeal from the issuance of a
through fraud or coercion, including Equivalent in amount to the monetary award certificate of finality of decision by LA;
graft and corruption; exclusive of damages and attorney’s fees. c) Appeal from orders issued by LA in the
c) If made purely on questions of law; In case of surety bond, the same shall be issued course of execution proceedings.
and/or by a reputable bonding company duly 3. Reinstatement and/or execution pending appeal
d) If serious errors in the findings of facts accredited by the Commission, and shall be
are raised which may cause grave and accompanied by original or certified true Sec 12 Rule XI, supra
irreparable damage or injury to copies of the following: In case the decision includes an order of
appellant. a) a joint declaration under oath by the reinstatement, and the employer disobeys the
f. To be filed with the Regional Arbitration Branch employer, his/her counsel, and the directive under the second paragraph of Section 19 of
bonding company, attesting that the Rule V or refuses to reinstate the dismissed employee,
of the Regional Office where the case was heard
bond posted is genuine, and shall be the Labor Arbiter shall immediately issue writ of
and decided. execution, even pending appeal, directing the
effective until final disposition of the
g. No appeal from interlocutory order shall be case; employer
entertained. (Sec 10 Rule VI, supra). 1) to immediately reinstate the dismissed
b) an indemnity agreement between the
h. REQUISITES (Sec 4): employer-appellant and bonding employee either physically or in the payroll,
company; and
a) Filed within the reglementary period;
c) proof of security deposit or collateral 2) to pay the accrued salaries as a consequence
b) Verified by the appellant in accordance
securing the bond: provided, that a check of such non-reinstatement in the amount
to Sec 4 Rule 7 of RoC;
shall not be considered as an acceptable specified in the decision.
c) In the form of a memorandum of appeal
security; and, The Labor Arbiter shall motu proprio issue a
which shall
d) notarized board resolution or corresponding writ to satisfy the reinstatement wages
i) State the grounds relied upon as they accrue until actual reinstatement or reversal
secretary’s certificate from the bonding
and of the order of reinstatement. (En Banc Resolution
company showing its authorized
ii) The arguments in support signatories and their specimen No. 11-12, Series of 2012)
thereof, signatures. The Sheriff shall serve the writ of execution upon the
iii) The relief prayed for, and employer or any other person required by law to obey
NO motion to reduce bond shall be
the same. If he/she disobeys the writ, such employer
iv) With a statement of the date the entertained except on meritorious grounds, and
or person may be cited for contempt in accordance
appellant received the appealed only upon the posting of a bond in a reasonable
with Rule IX.
decision, award or order; amount in relation to the monetary award.
Sec 19(2) Rule V. In case the decision of the Labor
d) In 3 legibly typewritten or printed The mere filing of a motion to reduce bond
Arbiter includes an order of reinstatement, it shall
copies; and accompanied by: without complying with the requisites in the
likewise contain:
i) Proof of payment of the preceding paragraphs shall not stop the running
of the period to perfect an appeal. a) a statement that the reinstatement aspect is
required appeal fee and legal
immediately executory; and
research fee; j. Prohibited appeals:
b) a directive for the employer to submit a
ii) Posting of a cash or surety a) Appeal from any interlocutory order of report of compliance within ten (10) calendar
bond as provided in Sec 6; and the LA denying a motion: days from receipt of the said decision.
iii) Proof of service upon the other i) To dismiss; Malcaba et al. v. Prohealth Pharma Phils. 2018 Leonen
parties
ii) To inhibit;
i. Appeal from Decision involving monetary award Before any labor tribunal takes cognizance of
iii) For issuance of writ or termination disputes, it must first have jurisdiction over
may be perfected only upon the posting of a execution, or the action. The Labor Arbiter and the NLRC only
bond (Sec 6) which shall either be in the form of
iv) To quash writ of execution; exercise jurisdiction over termination disputes between
a) Cash deposit; or
an employer and an employee. They do not exercise
compulsory arbitration pursuant to Art Extraordinary Remedies
278[263](g).
jurisdiction over termination disputes between a a) Petition to annul or modify order or resolution,
corporation and a corporate officer. 4) Petition to annul or modify the order or with the following grounds:
resolution of the LA.
WON Malcaba was a corporate officer, thereby divesting i) Prima facie evidence of abuse of
the labor tribunals of jurisdiction from hearing his b) Exclusive Appellate Jurisdiction (EAJ) discretion;
dismissal case. 1) All cases decided by the LA; ii) Serious errors in the findings of facts;
YES. At the time of his alleged dismissal, Malcaba was 2) Cases decided by DOLE RD or hearing officers iii) A party, by fraud, accident, mistake or
the President of respondent corporation. Under Section involving small money claims under Art 129 excusable negligence has been prevented
25 of the Corporation Code, the President of a from taking an appeal;
corporation is considered a corporate officer. The Functions and Powers
dismissal of a corporate officer is considered an intra- iv) Purely on Questions of law; or
★ The NLRC is a quasi-judicial body tasked to
corporate dispute, not a labor dispute. promote and maintain industrial peace by v) Order or resolution will cause injustice if
The clear weight of jurisprudence clarifies that to be resolving labor and management disputes not rectified.
considered a corporate officer, first, the office must be involving both local and overseas workers ★ Not later than 10 cal days from receipt of order
created by the charter of the corporation, and second, through compulsory arbitration and alternative of LA, aggrieved party may file the petition before
the officer must be elected by the board of directors or modes of dispute resolution. the NLRC, furnishing a copy to the adverse party.
by the stockholders. ★ Art 225[218] of LC. The NLRC has: b) Injunctive relief - writ of preliminary injunction;
Malcaba was an incorporator of the corporation and a a) Rule making powers c) Temporary restraining order.
member of the Board of Directors. Respondent
i) Governing the hearing and Appellate Remedies
corporation's By-Laws creates the office of the
disposition of cases
President. That foundational document also states that a) Rule 65 — Certiorari, Prohibition, Mandamus;
the President is elected by the Board of Directors. ii) Pertaining to its internal
functions (CA)
iii) Those as may be necessary to b) Rule 45 — Certiorari. (SC)
B. National Labor Relations Commission
carry out the purposes of this
Code; C.I.C.M Mission Seminaries School of Theology Inc. v.
Perez 2017
ARTICLE 224. Jurisdiction of the Labor Arbiters and the b) Power to issue compulsory processes
Commission. — xxxx i) Administer oaths; In the event the aspect of reinstatement is disputed,
(b) The Commission shall have EXCLUSIVE backwages, including separation pay, shall be computed
ii) Summon parties;
APPELLATE jurisdiction over all cases decided by from the time of dismissal until the finality of the
Labor Arbiters. iii) Issue subpoena duces tecum and decision ordering the separation pay.
ad testificandum
xxxx The rule is, if the LA's decision, which granted
c) Power to investigate matters and hear
disputes separation pay in lieu of reinstatement, is appealed by
a) Original and Exclusive Jurisdiction (OEJ) any party, the employer-employee relationship subsists
i) Conduct investigations and until such time when decision becomes final and
1) Petition for Injunction in ordinary labor
disputes ii) Proceed to hear and determine executory, the employee is entitled to all the monetary
the dispute in the manner laid awards awarded by the LA.
2) Petition for Injunction on strikes or down in Art 225[218](c),
lockouts (Art 279[264]) What should be the legal basis for the computation of the
d) Contempt power backwages and separation pay of an illegally dismissed
3) Certified cases which refer to labor disputes employee in a case where reinstatement was not ordered
causing or likely to cause a strike or lockout e) Power to issue injunctions and
restraining orders despite appeals made by said employee which delayed
in an industry indispensable to the national the final resolution of the issue on reinstatement.
interest, certified to it by the SOLE for f) Power to conduct ocular inspection
FROM THE TIME OF DISMISSAL UNTIL FINALITY OF
g) Appellate power.
DECISION ORDERING THE SEPARATION PAY. The continue to add on until full satisfaction thereof. considered reasonable in relation to the total monetary
Court's duty in a Rule 45 petition, assailing the decision award of P198K.
of the CA in a labor case elevated to it through a Rule 65 Turks Shawarma Company v. Pajaron,
Petitioners, nevertheless, rely on a number of cases
petition, is limited only to the determination of whether et al. 2017 re Reduction of Appeal Bond wherein the Court allowed the relaxation of the
the CA committed an error in judgment in declaring the stringent requirement of the rule.
absence or existence, as the case may be, of grave abuse The liberal interpretation of the rules applies only to
of discretion on the part of the NLRC. justifiable causes and meritorious circumstances. In Nicol v. Footjoy Industrial Corporation, the Court
reversed the NLRC's denial of the appellant's motion to
As a consequence, the Court shall examine only whether The posting of cash or surety bond is mandatory and reduce bond upon finding adequate evidence to justify
the CA erred in not finding grave abuse of discretion jurisdictional; failure to comply with this requirement the reduction.
when the NLRC affirmed the LA's findings that the renders the decision of the Labor Arbiter final and
separation pay in lieu of reinstatement as well as In Rada v. NLRC and Blancaflor v. NLRC, the NLRC
executory.
backwages due to respondent should be recomputed allowed the late payment of the bond because the
WON CA erred in affirming the NLRC's dismissal of appealed Decision of the Labor Arbiter did not state the
until the finality of the Court's decision, despite the fact
petitioners' appeal. exact amount to be awarded, hence there could be no
that the delay in the resolution of the said case was
brought about by respondent herself. On this point, the NO. It is clear from both the Labor Code and the NLRC basis for determining the amount of the bond to be
Court rules in the negative. Rules of Procedure that there is legislative and filed. It was only after the amount of supersedeas bond
administrative intent to strictly apply the appeal bond was specified by the NLRC that the appellants filed the
The decision of the CA is based on long standing bond.
requirement, and the Court should give utmost regard
jurisprudence that in the event the aspect of
to this intention. In YBL (Your Bus Line) v. NLRC, the Court was
reinstatement is disputed, backwages, including
separation pay, shall be computed from the time of The posting of cash or surety bond is therefore propelled to relax the requirements relating to appeal
dismissal until the finality of the decision ordering the mandatory and jurisdictional; failure to comply bonds as there were valid issues raised in the appeal.
separation pay. In Gaco v. NLRC, it was ruled that with with this requirement renders the decision of the Labor In Dr. Postigo v. Philippine Tuberculosis Society, Inc.,
respect to the payment of backwages and separation Arbiter final and executory. However, the Court, in the respondent therein deferred the posting of the bond
pay in lieu of reinstatement of an illegally dismissed special and justified circumstances, has relaxed the and instead filed a motion to reduce bond on the ground
employee, the period shall be reckoned from the time requirement of posting a supersedeas bond. that the Labor Arbiter's computation of the award is
compensation was withheld up to the finality of this The reduction of the appeal bond is allowed, erroneous which circumstance justified the relaxation
Court's decision. This was reiterated in Surima v. subject to the following conditions: of the appeal bond requirement.
NLRC and Session Delights Ice Cream and Fast Foods In all of these cases, though, there were meritorious
v. CA. 1. the motion to reduce the bond shall be based
on meritorious grounds; and grounds that warranted the reduction of the appeal
In this case, respondent remained an employee of the bond, which, as discussed, is lacking in the case at
petitioners pending her partial appeal. Her employment 2. a reasonable amount in relation to the bench.
was only severed when this Court, in G.R. No. 200490, monetary award is posted by the appellant.
affirmed with finality the rulings of the CA and the labor Here, petitioners' motion to reduce bond was not Dutch Movers Inc. v. Lequin, et al. 2017
tribunals declaring her right to separation pay instead predicated on meritorious and reasonable grounds and
WON petitioners are personally liable to pay the
of actual reinstatement. Accordingly, she is entitled to the amount tendered is not reasonable in relation to the
judgment awards in favor of respondents.
have her backwages and separation pay computed until award.
the judgment of this Court became final and executory. In the case of McBurnie v. Ganzon, the Court has set a YES. Valderrama v. NLRC, and David v. Court of
Finally, the Court disagrees with the petitioners' provisional percentage of 10% of the monetary Appeals are applicable here. In said cases, the Court
assertion that a recomputation would violate the award (exclusive of damages and attorney's fees) as held that the principle of immutability of judgment, or
doctrine of immutability of judgment. reasonable amount of bond that an appellant should the rule that once a judgment has become final and
It has been settled that no essential change is made post pending resolution by the NLRC of a motion for a executory, the same can no longer be altered or
by a recomputation as this step is a necessary bond's reduction. Only after the posting of this required modified and the court's duty is only to order its
consequence that flows from the nature of the percentage shall an appellant's period to perfect an execution, is not absolute. One of its exceptions is
illegality of dismissal declared in that decision. By the appeal be suspended. Applying this parameter, the when there is a supervening event occurring after the
nature of an illegal dismissal case, the reliefs P15K partial bond posted by petitioners is not judgment becomes final and executory, which renders
 the decision unenforceable. There is no substantial distinction between a photocopy of Procedure, as amended, provides, among others, that
A supervening event refers to facts that transpired or a "Xerox copy" and a "true copy" for as long as the the remedy of filing a motion for reconsideration may
photocopy is certified by the proper officer of the court, be availed of once by each party. In this case, only
after a judgment has become final and executory, or to a
tribunal, agency or office involved or his duly- respondents had filed a motion for reconsideration
new situation that developed after the same attained
authorized representative and that the same is a faithful before the NLRC. Applying the foregoing provision,
finality. Supervening events include matters that the
reproduction of the original. petitioners also had an opportunity to file such motion
parties were unaware of before or during trial as they
Indeed, for all intents and purposes, a certified Xerox in this case, should they wish to do so. However, the
were not yet existing during that time.
copy is no different from a certified true copy of the tenor of such warning effectively deprived petitioners
By responsible person, we refer to an individual or of such opportunity, thus, constituting a violation of
original document. The operative word in the term
entity responsible for, and who acted in bad faith in their right to due process.
certified true copy under Section 3, Rule 46 of the Rules
committing illegal dismissal or in violation of the Labor
of Court is certified.
Code; or one who actively participated in the Malcaba et al. v. Prohealth Pharma Phils. 2018 Leonen
management of the corporation. Also, piercing the veil Genpact Services Inc. v. Santos-Falceso 2017
of corporate fiction is allowed where a corporation is a In appeals of illegal dismissal cases, employers are
mere alter ego or a conduit of a person, or another The 2011 NLRC Rules of Procedure, as amended, strictly mandated to file an appeal bond to perfect their
corporation. Here, the veil of corporate fiction must be provides, among others, that the remedy of filing a appeals. Substantial compliance, however, may merit
pierced and accordingly, petitioners should be held motion for reconsideration may be availed of once by liberality in its application.
personally liable for judgment awards because the EACH party. WON CA should have dismissed outright the Petition for
peculiarity of the situation shows that they controlled Certiorari since respondents failed to post a genuine
DMI; they actively participated in its operation such WON the CA correctly dismissed outright the certiorari
appeal bond before the NLRC.
that DMI existed not as a separate entity but only as petition filed by petitioners before it on procedural
grounds. NO. In labor cases, an appeal by an employer is
business conduit of petitioners.
perfected only by filing a bond equivalent to the
NO. The general rule is that a motion for
Doble, Jr. v. ABB Inc. 2017 reconsideration must first be filed with the lower court monetary award.
prior to resorting to the extraordinary remedy of Procedural rules require that the appeal bond filed be
The provision states that either a legible duplicate certiorari, since a motion for reconsideration may still "genuine." An appeal bond determined by the NLRC to
original or certified true copy thereof shall be be considered as a plain, speedy, and adequate remedy be "irregular or not genuine" shall cause the immediate
submitted. If what is submitted is a copy, then it is in the ordinary course of law. However, the rule admits dismissal of the appeal.
required that the same is certified by the proper officer of well-defined exceptions, such as:
of the court, tribunal, agency or office involved or his In Quiambao v. NLRC, this Court held that the
duly-authorized representative. The purpose for this xxx mandatory and jurisdictional requirement of the filing
requirement is not difficult to see. It is to assure that (d) where, under the circumstances, a motion for of an appeal bond could be relaxed if there was
such copy is a faithful reproduction of the judgment, reconsideration would be useless; substantial compliance. Quiambao proceeded to
order, resolution or ruling subject of the petition. outline situations that could be considered as
(e) where petitioner was deprived of due process substantial compliance, such as
WON CA gravely erred when it dismissed outright the and there is extreme urgency for relief;
1. late payment,
Petition for Certiorari and refused to reinstate the same, xxxx
despite the fact that the two defects noted in the minute 2. failure of the Labor Arbiter to state the exact
Resolution dated November 29, 2013 have already been A judicious review of the records reveals that the amount of money judgment due, and
substantially rectified. exceptions in items (d) and (e) are attendant in this
case. The highlighted portion of the NLRC Resolution 3. reliance on a notice of judgment that failed to
YES. First, the CA gravely erred in dismissing the explicitly warns the litigating parties that the NLRC state that a bond must first be filed in order to
petition on the ground that the assailed NLRC Decision shall no longer entertain any further motions for appeal.
and Resolution attached thereto are mere "certified reconsideration. This circumstance gave petitioners the Rosewood Processing v. NLRC likewise enumerated
photocopies" and not duplicate originals or certified impression that moving for reconsideration before the other instances where there would be a liberal
true copies. The CA's inordinate nitpicking on NLRC would only be an exercise in futility in light of the application of the procedural rules:
procedural requirements is contrary to the Court's tribunal's aforesaid warning. Some of these cases include:
ruling in Coca-Cola Bottlers Phils., Inc. v. Cabalo.
Moreover, Section 15, Rule VII of the 2011 NLRC Rules
 1. counsel's reliance on the footnote of the notice separation pay. suspension of the execution proceedings.
of the decision of the labor arbiter that the The reason for this, as the Court explained in Bani, is YES. CA failed to note that under the Rules, the
aggrieved party may appeal within ten (10) that "when there is an order of separation pay, the execution proceedings should be suspended only
working days; employment relationship is terminated only upon the "insofar as the reversal is concerned." This omission
2. fundamental consideration of substantial finality of the decision ordering the separation pay. The leads to an incorrect reading of the rule and suggests
justice; finality of the decision cuts-off the employment that any reversal on appeal leads to the automatic
3. prevention of miscarriage of justice or of unjust relationship and represents the final settlement of the suspension of execution of the appealed decision. When
enrichment, as where the tardy appeal is from a rights and obligations of the parties against each other." used as basis for suspending execution, the rule
decision granting separation pay which was Here, the award of separation pay in lieu of requires an extra step, namely, the determination of
already granted in an earlier final decision; and reinstatement was made subsequent to the finality of what part of the execution is affected by the reversal.
4. special circumstances of the case combined the Decision in the Illegal Dismissal Case. Condis cannot The more relevant rule in this case is Rule XI, Section 3
with its legal merits or the amount and the therefore evade its liability to Rogel for backwages and of the NLRC Rules, which provides:
issue involved. separation pay computed until the finality of this Section 3. Effect of Perfection of Appeal on
Decision which affirms the order granting separation Execution. — The perfection of an appeal shall
Thus, while the procedural rules strictly require the pay.
employer to submit a genuine bond, an appeal could stay the execution of the decision of the Labor
still be perfected if there was substantial compliance For Olympia Housing v. Lapastora to apply, the Arbiter except execution for reinstatement
with the requirement. employer must prove the closure of its business in full pending appeal.
and complete compliance with all statutory Under this provision, the perfection of an appeal stays
Despite their failure to collect on the appeal bond, requirements prior to the date of the finality of the
petitioners do not deny that they were eventually able the execution of a LA’s decision. Thus, for clarity, the CA
award of backwages and separation pay. should have explained that because its Decision deemed
to garnish the amount from respondents' bank
deposits. This fulfills the purpose of the bond, that is, Here, Condis failed to show that in 2007 it had closed its respondents' appeal before the NLRC as reinstated, the
"to guarantee the payment of valid and legal claims business and that it had complied with all the statutory execution of the Labor Arbiter's Decision was stayed
against the employer." Respondents are considered to requirements for the closure. All it alleged was the under Rule XI, Section 3 of the NLRC Rules of Procedure.
have substantially complied with the requirements on execution of the Asset Purchase Agreement and the However, despite the applicability of Rule XI, Section 3
the posting of an appeal bond. termination of the Service Agreement with EDI —but of the NLRC Rules to the factual circumstances before
this does not mean, nor was it argued to mean, that the CA, the Petition must be granted.
Consolidated Distillers of Far East v. Zaragoza 2018 Condis had closed its business. In fact, Condis failed to
submit any document which showed that in 2007, it had It may be true that in Mcburnie, this Court relaxed the
When there is a supervening event that renders notified the DOLE or its employees of the closure of its rule that appeals in labor cases may be perfected only
reinstatement impossible, backwages is computed from business and the reason for its closure. It also failed to upon the posting of a cash or surety bond. However, the
the time of dismissal until the finality of the decision show that Rogel was affected by this purported closure rule may be relaxed only upon the existence of
ordering separation pay. of its business. There is therefore no basis for it to claim exceptional circumstances, the determination of which
that Olympia Housing is authority for its liability to pay is a matter fully within the discretion of the NLRC. Given
WON Court of Appeals committed reversible error in
backwages and separation pay to only up to 2007. that the NLRC denied respondents' appeal on the basis
reckoning the period of back wages and separation pay
of non-perfection, it can be inferred that it found no
until finality of the decision of this case and not until the
Pacios et al., v. Tahanang Walang Hagdanan 2018 exceptional circumstances so as to justify any leniency
time, the supervening event and legal impossibility to
Leonen, J or finding the P40K amount initially paid by
reinstate arose in this case.
respondents as sufficient for purposes of perfecting
NO. The Court agrees with the CA that Condis is liable In authorizing execution pending appeal of the their appeal.
for backwages and separation pay until the finality of reinstatement aspect of a decision of the Labor Arbiter Execution may be authorized even pending appeal.
the decision awarding separation pay as ruled in Bani. reinstating a dismissed or separated employee, the law This Court finds that the principles allowing execution
In Bani, the Supreme Court held that when there is a itself has laid down a compassionate policy which, once pending appeal invoked in Aris are equally applicable
supervening event that renders reinstatement more, vivifies and enhances the provisions of the 1987 here as petitioners are poor employees, deprived of
impossible, backwages is computed from the time of Constitution on labor and the workingman. their only source of livelihood for years and reduced to
dismissal until the finality of the decision ordering WON the Court of Appeals erred in affirming the begging on the streets. In view of their dire straits and
since the NLRC has already ruled twice on the case in a the first contract of employment which had a duration
way that supports the release of the supersedeas bond, of only one (1) year.
it is proper to continue with execution proceedings The supervisory jurisdiction of the CA under Rule 65
in this case despite a pending motion for was confined only to the determination of whether or
reconsideration. not the NLRC committed grave abuse of discretion in
deciding the issues brought before it on appeal. To
C. Court of Appeals recapitulate, the CA is allowed to consider the factual
issues only insofar as they serve as the basis of the
jurisdictional error imputed to the lower court or in this
case, the NLRC.

E. Bureau of Labor Relations

ARTICLE 232. The Bureau of Labor Relations and the
Labor Relations Divisions in the regional offices of the
Department of Labor shall have original and
exclusive authority to act, at their own initiative or
upon request of either or both parties, on all inter-
union and intra-union conflicts, and all
disputes, grievances or problems arising
from or affecting labor-management
relations in all workplaces, whether agricultural
Bugaoisan v. Owi Group et al. 2018 or non-agricultural, except those arising from the
The CA is only tasked to determine whether or not the implementation or interpretation of collective
NLRC committed grave abuse of discretion in its bargaining agreements which shall be the subject of
appreciation of factual issues presented before it by any grievance procedure and/or voluntary arbitration.
parties. The CA is not given unbridled discretion to
modify factual findings of the NLRC and LA, especially The Bureau shall have fifteen (15) working days to
when such matters have not been assigned as errors act on labor cases before it, subject to extension by
nor raised in the pleadings.
agreement of the parties.
WON the CA was correct when it went beyond the issues
of the case and the assigned errors raised by respondents ARTICLE 245. Cancellation of Registration. — The
when it filed the certiorari petition under Rule 65. certificate of registration of any legitimate labor
NO. In a Rule 65, petition for certiorari filed with the CA, organization, whether national or local, may be
the latter must limit itself to the determination of cancelled by the Bureau xxxx.
whether or not the inferior court, tribunal, board or
D. Supreme Court officer exercising judicial or quasi-judicial functions The BLR and the labor relations divisions in the
acted without, in excess of or with grave abuse of regional offices have original and exclusive authority
Provided herein is a flowchart for Execution of Judgment discretion amounting to lack or excess of jurisdiction. to act motu proprio or upon request on:

Here, the appellate court modified the aforesaid 1) Inter-union disputes or representation
decision by reducing the award of unpaid salaries due disputes — refer to cases involving petition for
the petitioner on the ground that the basis should be certification election filed by a duly registered
 labor org which seeks to be the sole and exclusive b) Issues arising from the interpretation or EXC: reasonable ground, concurred by other
bargaining agent in an establishment. implementation of the collective bargaining party. In such case, the conference shall be held
2) Intra-union disputes or internal union agreement and those arising from not later than 3 calendar days from original
disputes — disputes or grievances arising from interpretation or enforcement of company sched;
any violation of or disagreement over any personnel policies which should be processed d. Extension — GR: not extendible;
provision of the constitution and by-laws of the through the grievance machinery.
EXC: mutual agreement and possibility of
union, including violations on conditions of union c) Applications for exemption from Wage Orders settlement. 15 calendar days.
membership as per LC. with the National Wages and Productivity
Commission (NWPC) Conduct of C-M
3) All disputes, grievances arising from or affecting
labor-management relations; except those d) Violations of POEA Rules and Regulations a. Appearance — GR: Personal;
arising from interpretation or implementation of involving: EXC: Lawyers, agents may appear, with SPAs in
CBA which are subject to grievance procedure 1) Serious offenses and offenses penalized with the following circumstances:
and/or voluntary arbitration. cancellation of license; i. Party is outside of country;
2) Disciplinary actions against overseas ii. Party is a minor or incapacitated; or
F. National Conciliation and Mediation workers/seafarers which are considered
Board iii. Party died, with which the heir may
serious offenses or which carry the penalty of
appear presenting:
delisting from the POEA registry at first
1. Jurisdiction offense; 1. Death Certificate;
The agency attached to DOLE principally in-charge of 3) Complaints initiated by the POEA; 2. NSO Marriage or Birth Certificate to
the settlement of labor disputes through conciliation, prove relationship.
4) Complaints against an agency whose license
mediation, and promotion of voluntary approaches to is revoked, cancelled, expired or otherwise b. C-M Process — The SEADO shall:
labor dispute prevention and settlement. delisted; and 1. Clarify the issues, validate positions and
5) Complaints categorized under the POEA determine the underlying issues;
Salient Points of RA 10396
Rules and Regulations as not subject to SEnA. 2. Narrow down the disagreements and
1) LA or the appropriate DOLE Agency that has Co-conciliation-mediation. — Coordinated conciliation- broaden areas for settlement;
jurisdiction over the dispute shall only entertain mediation by two or more SEADs shall be observed if the
only endorsed or referred cases by the duly 3. Encourage parties to generate options and
RFA is filed with the SEAD most convenient to the enter into stipulations;
authorized officer. requesting party but outside the region where the
2) Any or both parties to the dispute may pre- employer principally operates, the SEADO shall entertain 4. Offer proposals and options toward mutually
terminate the C-M and request referral to the the same and co-conciliate-mediate with the SEAD of the acceptable solutions and voluntary
appropriate DOLE Agency, or if both agree, refer region where the employer principally operates. settlement;
the unresolved issue for VA. Consolidation of RFA. — Where two or more RFAs 5. Prepare the settlement agreement in
involving the same responding party and issues are consultation with the parties; and
Salient Provisions of SEnA IRR or DOLE DO No
filed before different SEADs within the same 6. Monitor the voluntary and faithful
151-16 region/office/unit, the RFAs shall be consolidated before compliance of the settlement agreement.
GR: All issues arising from labor and employment the first SEAD taking cognizance of the RFAs, when c. Pre-termination
shall be subject to the 30-day mandatory practicable.
1. Written withdrawal by the requesting party;
conciliation-mediation. Schedule of Conferences
2. Non-appearance of either parties in two (2)
EXC: a. Initial — within 5 working days from date of consecutive scheduled conferences despite
a) Notices of strike/lockout or preventive assignment of RFA; due notices; or
mediation cases with the National Conciliation b. Succeeding — as many within the 30 day 3. Request for referral to the appropriate DOLE
and Mediation Board (NCMB); mandatory C-M period; office or agency by the requesting party or
c. Resetting — GR: not allowed;
 both parties prior to the expiration of the 30- disputants talking, facilitating other procedural having jurisdiction over the workplace of the
day period. niceties, carrying messages back and forth union members.
d. Issuance of Referral — within 1 day after: between the parties, and generally being a good 3) Conversion of Notice Strike/Lockout to
1. Expiration; fellow who tries to keep things calm and forward- Preventive Mediation — in converting a notice of
looking in a tense situation. strike or lockout to a preventive mediation case
2. Failure to timely reach agreement;
3. Non-appearance of responding party in 2 b) Mediation — is a mild intervention by a neutral the following guidelines shall be observed:
consecutive scheduled conferences despite third party, the Conciliator-Mediator, who advises a) Clearly determine whether the issue/s
due notice; the parties or offers solutions or alternatives to raised is/are valid ground/s for NS/L;
4. Non-settlement of one or more issues; the problems with the end in view of assisting
b) If conversion is warranted, a written
5. Non-compliance with agreement. them towards voluntarily reaching their own
recommendation from the Conciliator-
mutually acceptable settlement of the dispute.
No referral where the requesting party Mediator handling the case is required,
withdrew RFA. 3. Preventive mediation after due consultation with the Branch
e. Cognizance over referred RFAs — LA or Preventive Mediation Cases refer to labor Director;
appropriate DOLE agency.
disputes which are the subject of a formal or informal c) The written recommendation must be
In case of settlement agreements request for conciliation and mediation assistance formally endorsed to the Branch Director
a. Reduced in writing using the SEnA Settlement sought by either or both parties or upon the initiative for approval;
Agreement Form, signed by both parties and of the Board.
d) The conversion shall be done before the
attested by the SEADO.
1) Who may file a request for Preventive cooling-off period expires;
b. Agreement on monetary claims arising from Mediation, Notice of Strike or Lockout. — the
violations of labor standards shall be fair and e) Parties concerned must be formally
following may file a request for preventive
reasonable, and not contrary to law, public notified of the action taken by the
morals and public policy. mediation, notice of strike or lockout:
Regional Branch through a letter signed
c. Types a) The president or any authorized by the Conciliator-Mediator handling the
representative of a certified or duly case and approved by the Branch
i. Full;
recognized bargaining representative in Director;
ii. Partial - installment, or reinstatement is on a
cases of bargaining deadlocks and unfair
future agreed date. f) The notice shall be dropped from the
labor practices.
d. The SEADO shall attach a duly accomplished dockets and to be renumbered as a
waiver and quitclaim document as proof of full b) In the absence of a certified or duly preventive mediation case; and
compliance. recognized bargaining representative,
g) A conference shall be immediately set by
e. In case of non-compliance — The requesting the president or any authorized
the concerned Conciliator-Mediator.
party may file an action for enforcement with the representative of a legitimate labor
NLRC/POEA/DOLE Regional Office. organization in the establishment on
G. DOLE Regional Directors
f. For enforcement through DOLE RO the requesting grounds of unfair labor practice.
party may request for the issuance of a writ of c) The employer or any authorized
execution or the conduct of compliance visit. 1. Jurisdiction
representative in cases of bargaining
2. Conciliation as distinguished from mediation deadlocks and unfair labor practices. Office Basis Jurisdiction
a) Conciliation — is a mild form of intervention by a 2) Where to file. — A request for preventive DOLE Art Recovery of wages, simple money
neutral third party, the Conciliator-Mediator, who mediation, notice of strike or lockout shall be filed RD 129 claims and other benefits
relying on his persuasive expertise, takes an through personal service or by registered
active role in assisting parties by trying to keep mail/private couriers with the Regional Branch VA Art All unresolved grievances arising
 3) ARTICLE 269. [257] Petitions in Unorganized
261 from the interpretation and service at the time of complaint
Establishments. — In any establishment where
implementation of the CBA except provided there is no
there is no certified bargaining agent, a
those gross in character; demand for reinstatement
CERTIFICATION ELECTION shall automatically
be conducted by the Med-Arbiter upon the
Cases arising from interpretation or No maximum monetary Claim per claimant not to
filing of a petition by any legitimate labor
enforcement of company personnel amount exceed P5K
organization, including a national union or
policies
federation which has already issued a charter Exercised by SOLE or any RD or any duly authorized
certificate to its local/chapter participating in the of his duly authorized hearing officer of DOLE
Art All other labor disputes including
certification election or a local/chapter which has representatives, i.e. the RD
262 ULP and bargaining deadlocks, upon
been issued a charter certificate by the national
agreement of the parties
union or federation. xxxx Appealable to SOLE, then Appealable to NLRC
SOLE Art Within 24 hours from knowledge of 4) Appeal to NLRC within 5 cal days from receipt of to CA
263(g an occurrence of a labor dispute copy of decision.
) causing or likely to cause a strike or 5) NLRC to resolve within 10 cal days from Recovery of Wages and Simple Money Claims
lockout in an industry indispensable submission of last pleading. 1. Requisites:
to the national interest, SOLE may
assume jurisdiction, decide on the 6) Grounds for appeal (Art 229[223]) a. Claimant is an employee or domestic
dispute or certify the same to NLRC a) Prima facie evidence of abuse of worker;
for compulsory arbitration. discretion; b. Claim does not exceed P5K;
b) Decision, order or award secured c. No claim of reinstatement;
1) Art 129. The RD or any of the duly authorized through fraud or coercion, including
d. Claim arose from ER-EE relationship.
hearing officers of DOLE have jurisdiction over graft and corruption;
claims for recovery of wages, simple money 2. Employee files a pro-forma complaint with the
c) Made purely on questions of law;
claims and other benefits, provided that: RD;
d) Serious errors in the findings of facts.
a) Claim arises from ER-EE Relationship; 3. RD dockets the complaint as simple money
2. Recovery and adjudicatory power claim;
b) Claimant does not seek reinstatement;
4. RD issues summons served upon employer as
c) Aggregate money claim of each <=P5K. Visitorial and
Simple Money Claim respondent, together with the copy of complaint;
2) ARTICLE 268. [256] Representation Issue in Enforcement Power
5. ER is given 5 calendar days to answer;
Organized Establishments. — In organized
establishments, when a verified petition Art 128 Art 129 6. After receiving the answer, RD calls for a
questioning the majority status of the summary hearing;
incumbent bargaining agent is filed by any Police power - Inspection Quasi-judicial - 7. RD decides within 30 calendar days from date
legitimate labor organization including a national and issuance of orders to Adjudication through of filing of the complaint;
union or federation which has already issued a compel compliance summary proceedings
charter certificate to its local chapter 8. ER may appeal with the NLRC within 5 calendar
participating in the certification election or a local Enforcement of labor Monetary claims which days from receipt of decision. Appeal must be
chapter which has been issued a charter legislation in general only involve labor with cash or security bond.
certificate by the national union or federation standards law 9. ER may the file MR from an adverse decision of
before the Department of Labor and Employment the NLRC;
within the sixty (60)-day period before the Offshoots of inspections Sworn complaints by 10. Petition for Certiorari under Rule 65 to the CA not
expiration of the collective bargaining agreement, done by labor officers or interested party later than 60 days from notice;
the Med-Arbiter shall automatically order an safety engineers
11. Appeal by certiorari under Rule 45 to the SC
election by secret ballot xxxx
Involves employees still in Present or past employees within 15 days from notice on pure questions of
law.
Enforcement Power on Health and Safety of SOLE or RD may order closure of business found to 2. Visitorial and enforcement powers
Workers have violated any provisions of RA 9231 more than 3
1) There is a report on non-compliance of
times.
employer;
1. An inspection is made via Art 128; GR: Prior notice and hearing is required before
2) Upon receipt by SOLE or RD, there will be an
2. Non-compliance was discovered that poses issuance of such Closure Order, unless:
ORDER OF INSPECTION;
grave and imminent danger to the health and EX:
safety of workers in the workplace. ★ Which will simply state that the person
a. Violation resulted to death, insanity, or holding such order is authorized to
3. SOLE may order stoppage of work or suspension serious physical injury to a child employed; conduct an inspection on the specified
of operations of unit or department concerned; date, place and time.
b. Prostitution or obscene or lewd shows; or
4. Within 24 hours, a hearing shall be conducted to 3) The inspection will be implemented by a Labor
determine whether said stoppage order shall be c. There is imminent danger in the life and limb
of a child. and Employment Officer who will then visit the
lifted or not. employer’s premises and conduct inspection.
a. If violation is attributable to ER, he shall Under any such circumstance, SOLE or RD must,
within 5 working days from receipt of complaint, a) He may inspect the payroll;
pay the wages of EEs during the period of
stoppage or suspension of operations. order immediate closure. b) Employer’s premises;
b. Suspension should not exceed 6 months. A close-now-hear-later process is to be adhered c) Interview employees;
which shall be summary in nature.
★ see RA 11058, Strengthening Compliance with d) Compare payment records and confer
Occupational Safety & Health Standards; with EEs.
H. Department of Labor and Employment
SEC. 23. Payment of Workers During Work 4) Inspector will make an INSPECTION REPORT
Secretary should there be violation or non-compliance.
Stoppage Due to Imminent Danger. — If stoppage
of work due to imminent danger occurs as a a) Embodied in a NOTICE OF INSPECTION
result of the employer's violation or fault, the 1. Jurisdiction RESULTS;
employer shall pay the workers concerned their b) All violations will be enumerated therein.
wages during the period of such stoppage of work ARTICLE 278. Strikes, Picketing, and Lockouts. xxxx
or suspension of operations. For purposes of (g) When, in his opinion, there exists a labor dispute 5) Employer is then informed of the results of the
payment of wages and any other liabilities arising causing or likely to cause a strike or lockout in an inspection;
from a work stoppage order, the employer is industry indispensable to the national interest, the 6) Employer is given the opportunity to comply
presumed a party at fault if the work stoppage Secretary of Labor and Employment may assume within 7 days; OR
order is issued secondary to an imminent danger jurisdiction over the dispute and decide it or certify the 7) Employer may contest the NIR and raise issues
situation which would imperil the lives of the same to the Commission for compulsory arbitration. which cannot be resolved without considering
workers. xxxx DOCUMENTARY PROOFS that are not verifiable
★ In National Mines and Allied Workers Union v. (h) Before or at any stage of the compulsory arbitration in the normal course of the inspection;
Marcopper Mining, if the suspension of operations process, the parties may opt to submit their dispute to ★ Shall raise such objections during the
was ordered by a government agency other than voluntary arbitration. hearing of the case or at any time after
the DOLE, the general "no work, no pay" rule receipt of NIR.
(i) The SOLE, the Commission or the voluntary
should prevail with respect to employees' wages
arbitrator or panel of voluntary arbitrators shall decide 8) Should the employer fail to contest, as well as fails
during the suspension period, subject to existing
or resolve the dispute within thirty (30) calendar to comply to the NIR, RD will then issue an
CBA terms on leave credits and similar benefits of
days from the date of the assumption of jurisdiction ORDER OF COMPLIANCE;
employees.
or the certification or submission of the dispute, as
★ DOLE D.O. No. 198, S. 2018, distinguished from 9) Employer has the following remedies from said
the case may be. The decision of the President, the
order:
Bona fide suspension of operations (Art 301) Secretary of Labor and Employment, the Commission or
the voluntary arbitrator shall be final and executory ten a) Appeal to SOLE within 10 calendar days,
Closure of Business under RA 9231 (10) calendar days after receipt thereof by the parties. with bond;
DOLE DC 03-09
 b) Motion for reconsideration with the RD Priority Establishment/Workplace in Routine ★ In Balladares v. Peak Ventures, the worker need not
within 7 calendar days; Inspection litigate to get what legally belongs to him, for the
c) If beyond 7 but not beyond 10 days, a. Engaged in hazardous work whole enforcement machinery of the DOLE exists to
considered an appeal from RD to SOLE. insure its expeditious delivery to him free of charge.
b. Employing children
10) Failure to file MR within reglementary period will ★ Exception clause of Art 128
c. Engaged in contracting arrangement
make order FINAL AND EXECUTORY. In Meteoro v. Creative Creatures, respondent
d. Employing 10 or more employees contested the findings of the labor inspector during
★ SOLE or RD can then issue a WRIT OF
EXECUTION; Properties of employer e. Such other establishments or industries as may and after the inspection and raised issues the
may be levied to satisfy judgment. be determined by the DOLE/Secretary resolution of which necessitated the examination of
Instances for Complaint Inspection evidentiary matters not verifiable in the normal
11) Should employer be able to validly contest NIR, course of inspection. Hence, the Regional Director
the proceeding becomes adversarial: 1) When there is a SeNa referral was divested of jurisdiction and should have
a) RD will endorse the case to RAB of NLRC; 2) When there is an anonymous complaint endorsed the case to the appropriate Arbitration
b) Endorsed to LA; 3) When there is a request in a conciliation- Branch of the NLRC.
c) May be appealed to NLRC within 10 days mediation proceedings at the NCMB to validate or Requisites in Issuance of Compliance Order
from receipt of Decision; MR allowed verify violation of labor standards.
1. The alleged violator must first be heard and given
within 10 days; ★ In People’s Broadcasting Service v. SOLE 2012 En
adequate opportunity to present evidence;
d) Petition for Certiorari under Rule 65 to Banc, the issue was WON the SOLE, in exercising his
visitorial power, can determine the existence of ER-EE 2. Evidence presented must be duly considered
the CA not later than 60 days from
relationship. YES. before any decision is reached;
notice;
If a complaint is brought before the DOLE to give 3. Decision based on substantial evidence which
e) Appeal by certiorari under Rule 45 to the
effect to the labor standards provisions of the Labor means adequate for a reasonable mind to support
SC within 15 days from notice on pure
Code or other labor legislation, and there is a finding a conclusion;
questions of law.
by the DOLE that there is an existing employer- 4. Decision based on evidence presented or at least
see DOLE D.O. No. 183, S. 2017 Revised Rules on the employee relationship, the DOLE exercises contained in the records disclosed to the parties;
Administration & Enforcement of Labor Laws jurisdiction to the exclusion of the NLRC.
5. Decision is that of the decision-making authority
Three Modes of Implementation: If the DOLE finds that there is no employer-employee and not by mere subordinates; and
a. Routine Inspection; relationship, the jurisdiction is properly with the
6. Decision should explain the issues involved and
b. Complaint Inspection; NLRC. If a complaint is filed with the DOLE, and it is
the reasons for the decision rendered.
accompanied by a claim for reinstatement, the
c. Occupational Safety and Health Standards jurisdiction is properly with the Labor Arbiter, under 3. Power to suspend effects of termination
Investigation. Art. 217(3) of the Labor Code, which provides that the
Authorized Representatives of Employer/Employees Labor Arbiter has original and exclusive jurisdiction ARTICLE 292. Miscellaneous Provisions. — xxxx
1) Organized Establishment — designated by the over those cases involving wages, rates of pay, hours (b) xxxx The Secretary of the Department of Labor and
sole and exclusive bargaining agent; of work, and other terms and conditions of Employment may suspend the effects of the
employment, if accompanied by a claim for termination pending resolution of the dispute in the
2) Unorganized Establishment — any rank-and-file reinstatement. If a complaint is filed with the NLRC, event of a prima facie finding by the appropriate official
employee or representative from any of the and there is still an existing employer-employee of the DOLE before whom such dispute is pending that
following Committees in successive order: relationship, the jurisdiction is properly with the the termination
a) Labor-Management Committee; DOLE.
b) Compliance Committee; It is conceded that if there is no employer-employee 1. may cause a serious labor dispute or
relationship, whether it has been terminated or it 2. is in implementation of a mass lay-off.
c) Safety & Health Committee; or
has not existed from the start, the DOLE has no
d) Family Welfare Committee jurisdiction.
4. Remedies Initiated Complaint; to be a) Submission
1. all unresolved grievances arising from the
The findings of the DOLE, may still be questioned by answered by other agreement; implementation or interpretation of the
through a petition for certiorari under Rule 65 of party. b) Demand or collective bargaining agreements and
the Rules of Court. NOT to the NLRC, but to the CA. Notice,
2. those arising from the interpretation or
invoking a CBA
clause; enforcement of company personnel policies
I. Voluntary Arbitrator c) Or both 3. wage distortion issues arising from the
application of any wage orders in organized
Compulsory vs Voluntary Arbitration Appeal to NLRC, who merely reviews for errors of
fact or law. establishments,
Compulsory Voluntary 4. unresolved grievances arising from the
1. Jurisdiction interpretation and implementation of the
Definition The law declares Contractual
the dispute subject proceeding ARTICLE 274. Jurisdiction of Voluntary Arbitrators and productivity incentive programs under R.A.
to arbitration, wherein the Panel of Voluntary Arbitrators. — The Voluntary 6971.
regardless of parties, to obtain a Arbitrator or panel of Voluntary Arbitrators shall have
original and exclusive jurisdiction to hear and decide Concurrent. All other labor disputes including ULP and
consent of the speedy and
parties. inexpensive final bargaining deadlocks, upon agreement of the parties.
1. all unresolved grievances arising from the
disposition of the Before or at any stage of compulsory arbitration, parties
interpretation or implementation of the
matter, select a CBA and may opt to submit to VA instead.
judge of their own
choice and by 2. those arising from the interpretation or
enforcement of company personnel policies.
Powers and duties of voluntary arbitrator
consent, submit
their controversy The VA shall exert best efforts to conciliate and mediate or
Accordingly, violations of a CBA, except those which are
to him. aid the parties in reaching a voluntary settlement of the
gross in character, shall no longer be treated as unfair
labor practice and shall be resolved as grievances dispute, before proceeding with arbitration.
Done by Labor Arbiter, Voluntary
under the CBA. It is his/her duty to encourage parties to enter into
clothed with Arbitrator, an
original and impartial 3rd For purposes of this article, gross violations of CBA stipulation of facts.
exclusive person named by shall mean flagrant and/or malicious refusal to comply
jurisdiction (Art both parties with the economic provisions of such agreement. He/She shall have the following powers:
217) The Commission, its Regional Offices and the Regional 1. Require any person to attend hearing/s;
Directors of the DOLE shall not entertain disputes,
Nature Adversarial; May be done prior 2. Subpoena witnesses and receive documents;
grievances or matters under the exclusive and original
initiated by a to or during jurisdiction of the Voluntary Arbitrator or panel of 3. Take whatever necessary action to resolve the
complaint. compulsory Voluntary Arbitrators and shall immediately dispose issue;
arbitration; (B5- and refer the same to the Grievance Machinery or
Settlement of labor R19-S5) Voluntary Arbitration provided in the CBA. 4. Issue a writ of execution to enforce final decision.
disputes by a
government Private judicial Framework of alternative dispute resolution for
agency. system; ARTICLE 275. Jurisdiction over Other Labor Disputes. — dispute prevention:
The Voluntary Arbitrator or panel of Voluntary
Non-litigious, not Arbitrators, upon agreement of the parties, shall also (a) Conciliation-mediation
governed by hear and decide all other labor disputes including unfair (b) Voluntary arbitration
technical ROC, but labor practices and bargaining deadlocks.
still observes due a mode of settling labor management disputes by
process. Exclusive and original: which the parties select a competent, trained and
 impartial person who shall decide on the merits Established to enable the workers to participate Grievance; Concept and Scope
of the case and whose decision is final, executory in policy and decision-making processes in the
Refers to any question by either the employer or the union
and binding. establishment, insofar as said processes will
regarding
Arbitration is the submission of a dispute to an directly affect their rights, benefits and welfare,
except those which are covered by collective 1. the interpretation or implementation of any
impartial third person for determination on the
bargaining agreements or are traditional areas of provision of the collective bargaining
basis of evidence and arguments of the parties.
bargaining. agreement or
(c) Grievance handling
It may assist in the formulation and development 2. interpretation or enforcement of company
(i) An employee shall present this grievance personnel policies or
of programs and projects on productivity,
or complaint orally or in writing to the
occupational safety and health, improvement of 3. any claim by either party that the other party is
shop steward. Upon receipt thereof, the quality of work life, product quality improvement, violating any provision of the CBA or company
shop steward shall verify the facts and and other similar scheme. personnel policies.
determine whether or not the grievance
(e) Employee involvement (EI) and employee It is a complaint arising from such other controversy
is valid.
participation (EP) schemes involving ER-EE relationship.
(ii) If the grievance is valid, the shop steward
Workers shall have the right to participate in Submission agreement; Notice to arbitrate;
shall immediately bring the complaint to
policy and decision-making processes of the
the employee's immediate supervisor. Arbitration clause
establishment where they are employed insofar
The shop steward, the employee and his Submission agreement is a written agreement by
as said processes will directly affect their rights,
immediate supervisor shall exert efforts the parties submitting their case for arbitration
benefits and welfare. (Art 267)
to settle the grievance at their level. containing
There are three levels in which employees could
(iii) If no settlement is reached, the grievance 1. the issues,
influence management in their decision-making:
shall be referred to the grievance
1. Corporate level; 2. the chosen arbitrator and
committee which shall have ten (10)
days to decide the case. 2. Plant or Department level; 3. stipulation to abide by and comply with the
resolution
Where the issue involves or arises from 3. Shop-floor level-operating decisions.
the interpretation or implementation of a 4. including the cost of arbitration.
(f) Collective Bargaining
provision in the collective bargaining Notice to arbitrate is a formal demand made by one
agreement, or from any order, Performance of a mutual obligation to meet and
party to the other for the arbitration of a particular
memorandum, circular or assignment convene promptly and expeditiously in good
dispute.
issued by the appropriate authority in faith for the purpose of negotiating an agreement
with respect to wages, hours of work and all other Arbitration clause is a provision in the CBA requiring
the establishment, and such issue cannot
terms and conditions of employment including that unresolved grievances be resolved by VA.
be resolved at the level of the shop
steward or the supervisor, the same may proposals for adjusting any grievances or Grievance machinery; Unresolved grievances
be referred immediately to the questions arising under such agreement and
executing a contract incorporating such Refers to the internal rules of procedures established
grievance committee. by the parties in their CBA with voluntary
agreements if requested by either party but such
(d) Workplace cooperation (labor-management arbitration as the terminal step, which are intended
duty does not compel any party to agree to a
council) to resolve all issues arising from the implementation
proposal or to make any concession.
and interpretation of their collective agreement and
 the company personnel policies or company rules and Productivity incentive program refers to a formal Designation, or appointment of voluntary
regulations. agreement established by the labor-management arbitrator;
committee containing a process that will
Company Personnel Policies Unresolved grievances will be referred to voluntary
1. promote gainful employment, arbitration and for this purpose, parties to a CBA
Company personnel policies are guiding principles
2. improve working conditions and shall name and designate in advance
stated in broad, long-range terms that express the
philosophy or beliefs of an organization’s top 3. result in increased productivity, 1. a voluntary arbitrator or
authority regarding personnel matters. They deal 4. including cost savings, 2. panel of voluntary arbitrators, or
with matters
whereby the employees are granted salary bonuses 3. include in the agreement a procedure for the
1. Affecting efficiency and well-being of employees proportionate to increases in current productivity selection of such voluntary arbitrator or
and over the average for the preceding three (3) panel of voluntary arbitrators, preferably
2. Include the procedures in the administration of consecutive years. The agreement shall be ratified by from the listing of qualified voluntary
1. at least a majority of the employees arbitrators duly accredited by the Board.
a. Wages,
2. who have rendered at least six (6) months of Ad-hoc and permanent
b. Benefits,
continuous service. a. Permanent arbitrator is the VA specifically
c. Promotions,
named in the CBA;
d. Transfer and other personnel movement. Grievance procedure; Grievance committee
b. Ad-hoc arbitrator is the VA chosen by the parties
Which are not spelled out in the CBA. All parties to the dispute shall be entitled to attend
in accordance with No. 3 above, or in case either
the arbitration proceedings. The attendance of any
Disputes involving productivity incentive party refuses to submit to voluntary arbitration.
third party or the exclusion of any witness from the
programs proceedings shall be determined by the voluntary Nature of proceedings
under RA 6971 or the Productivity Incentives Act arbitrator or panel of voluntary arbitrators. Hearing The proceedings before a voluntary arbitrator are
may be adjourned for cause or upon agreement by the non-litigious in nature. They are not governed by
SEC. 9. Disputes and Grievances. — Whenever disputes, parties. technical rules applicable to court or judicial
grievances, other matters arise from the interpretation
or implementation of the productivity incentives Unless the parties agree otherwise, it shall be proceedings, but they must, at all times, comply with
program, the labor-management committee shall meet mandatory for the voluntary arbitrator or panel of the requirements of due process.
to resolve the dispute, and may seek the assistance of voluntary arbitrators to render an award or decision
the NCMB of the DOLE for such purpose. Decision of voluntary arbitrator, and prohibited
within twenty (20) calendar days from the date of
Any dispute which remains unresolved within twenty motion
submission for resolution.
(20) days from the time of its submission to the labor- THE decision of THE voluntary arbitrator SHALL BE
management committee shall be submitted for In the absence of applicable provision in the CBA, a
final and executory after ten (10) calendar days
voluntary arbitration in line with the pertinent grievance committee shall be
from receipt of the copy of the decision by the parties
provisions of the Labor Code, as amended.
1. created within ten (10) days from signing of and it shall not be subject of a motion for
The productivity incentives program shall include the the collective bargaining agreement;
name(s) of the voluntary arbitrator or panel of reconsideration. See Guagua case below.
voluntary arbitrators previously chosen and agreed 2. shall be composed of at least two (2)
2. Remedies
upon by the labor-management committee. representatives each from the members of
The petition for review shall be filed within 15
the bargaining unit and the employer, unless
otherwise agreed upon by the parties. days pursuant to Section 4, Rules 43 of the Rules of
Court; the 10-day period under Article 276 of the Labor
 Code refers to the filing of a motion for reconsideration
vis-à-vis the Voluntary Arbitrator's decision or award.
J. Prescription of Actions
Rule 45, procedure before the SC. a. Illegal dismissal — In illegal dismissal cases, the
Guagua National Colleges v. CA 2018 En Banc EE is given a period of FOUR (4) YEARS from the
time of his illegal dismissal within which to
The 10-day period stated in Article 276 should be
understood as the period within which the party institute the complaint (Art 1146, NCC);
adversely affected by the ruling of the Voluntary b. Money claims — THREE (3) YEARS from the
Arbitrators or Panel of Arbitrators may file a motion
time the action accrued;
for reconsideration. Only after the resolution of the
motion for reconsideration may the aggrieved party c. Unfair Labor Practice — ONE (1) YEAR from
appeal to the CA by filing the petition for review under accrual;
Rule 43 of the Rules of Court within 15 days from
notice pursuant to Section 4 of Rule 43. d. Penal provisions under LC — THREE (3)
YEARS;
WON the period to appeal to the CA via Rule 43 is 15 days
and not 10 days set by Art 276 of the Labor Code. e. Illegal Recruitment. — FIVE (5) years:
YES. The petition for review shall be filed within 15 If involving economic sabotage shall prescribe
days pursuant to Section 4, Rules 43 of the Rules of
Court; the 10-day period under Article 276 of the Labor in twenty (20) years.
Code refers to the filing of a motion for reconsideration f. Execution of Judgment - FIVE (5) YEARS.
vis-à -vis the Voluntary Arbitrator's decision or award.
For complaint of illegal dismissal with money
Voluntary arbitration decisions or awards would be
final, unappealable and executory. Despite such claims, the action for money claim shall still prescribe
immediately executory nature of the decisions and in 3 years, although it is only an accessory to the
awards of the Voluntary Arbitrators, however, the Court principal complaint of illegal dismissal which
pronounced in Oceanic Bic Division (FFW) v. Romero prescribes in 4 years.
that the decisions or awards of the Voluntary
Arbitrators involving interpretations of law were within Backwages as a relief for illegal dismissal is
the scope of the Court's power of review. IMPRESCRIPTIBLE.
A voluntary arbitrator by the nature of her functions Separation pay is akin to money claims.
acts in a quasi-judicial capacity. There is no reason why
her decisions involving interpretation of law should be
beyond this Court's review. Administrative officials are
presumed to act in accordance with law and yet we do
not hesitate to pass upon their work where a question
of law is involved or where a showing of abuse of
authority or discretion in their official acts is properly
raised in petitions for certiorari.
Accordingly, the decisions and awards of Voluntary
Arbitrators, albeit immediately final and executory,
remained subject to judicial review in appropriate cases
through petitions for certiorari.