2022 UP BOC UP Labor Law Reviewer

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TABLE OF CONTENTS 7. Penalty ............................................................... 22

I. GENERAL PRINCIPLES .......................... 1 III. LABOR STANDARDS .......................... 23
A. Basic Policy on Labor .......................................... 1
A. General Provisions.............................................. 23
1. Declaration of Basic Policy ............................. 1
1. Employer-Employee Relationship ................ 23
a. Right to Self-Organization and Collective
2. Test to Determine the Existence of an
Bargaining ........................................................... 1
Employer-Employee Relationship .................... 23
b. Security of Tenure ........................................ 2 a. Four-Fold Test ............................................. 23
c. Social Justice .................................................. 2
b. Economic Dependence Test ..................... 24
d. Equal Work Opportunities ......................... 3
3. Employee Distinguished from an
B. Construction in Favor of Labor ......................... 4 Independent Contractor ..................................... 25
C. Burden of Proof and Quantum of Evidence in B. Conditions of Employment ............................... 25
Labor Cases................................................................. 4 1. Covered Employees/Workers ....................... 25
a. Government Employees ............................ 25
D. Legal Basis ............................................................. 5
b. Managerial Employees ............................... 25
1. 1987 Constitution.............................................. 5
c. Members of the Managerial Staff.............. 26
2. Civil Code ........................................................... 6
d. Field Personnel ............................................ 26
3. Labor Code ........................................................ 6
e. Dependent Family Members ..................... 27
f. Domestic Helpers (Workers) ..................... 27
II. RECRUITMENT AND PLACEMENT
g. Persons in Personal Service of Another .. 27
OF WORKERS ...............................................8
h. Workers Paid by Result (piece-workers) . 27
A. Recruitment and Placement ................................ 8 2. Hours of Work................................................. 28
1. General Provisions............................................ 8 a. Normal Hours of Work.............................. 29
a. Labor Code .................................................... 9 b. Meal Periods ................................................ 31
b. R. A. No. 8042 .............................................. 9 c. Night-Shift Differential .............................. 32
2. Illegal Recruitment and Other Prohibited d. Overtime Work ........................................... 32
Activities................................................................ 10 e. Compressed Work Week, Flexible Work
a. Elements ....................................................... 10 Arrangement Alternative Work
b. Types of Illegal Recruitment..................... 12 Arrangements, Telecommuting Program .... 34
c. Illegal Recruitment as Distinguished from 3. Rest Periods ...................................................... 36
Estafa................................................................. 13 4. Holidays............................................................. 38
3. Liability of Local Recruitment Agency and 5. Bonus, 13th Month Pay .................................. 43
Foreign Employer ............................................... 13 6. Service Charges ................................................ 46
a. Solidary Liability .......................................... 13
C. Wages .................................................................... 47
Foreign Employer ........................................... 13
1. Payment of Wages ........................................... 47
b. Theory of Imputed Knowledge ............... 15
a. Definition, Components, and Exclusions47
4. Entities Prohibited from Recruiting ............ 15
b. Principles ...................................................... 50
5. Cancellation of License or Authority ........... 16
c. Form of Payment ........................................ 50
6. Termination of Contract of Migrant Worker
d. Time of payment ......................................... 51
Without Just or Valid Cause .............................. 16
e. Place of Payment ......................................... 51
7. Ban on Direct Hiring ...................................... 17
f. Person to Pay ................................................ 52
a. General Rule ................................................ 17
2. Prohibitions Regarding Wages ...................... 52
b. Exceptions ................................................... 17
a. Against interference in disposal of wages 52
B. Employment of Non-Resident Aliens............. 18 b. Against Wage Deduction ........................... 52
1. Coverage ........................................................... 18 c. Against Requirements to Make Deposits
2. Conditions for Grant of Permit.................... 19 for Loss or Damage ........................................ 52
3. Validity of AEP and Renewal ....................... 20 d. Against Withholding of Wage ................... 53
4. Denial of Application ..................................... 21 e. Against Deduction to Ensure Employment
5. Revocation; Cancellation ............................... 21 ............................................................................ 53
6. Appeal ............................................................... 21 f. Against Retaliatory Measures ..................... 53
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g. Against False Reporting ............................. 53 2. Dependents and Beneficiaries ....................... 79

3. Facilities vs. Supplements .............................. 53 3. Benefits .............................................................. 80
a. Definition ..................................................... 53
C. Limited Portability Law ...................................... 82
b. Beneficiaries................................................. 53
c. Computation ................................................ 53 D. Disability and Death Benefits ........................... 82
4. Minimum Wage ............................................... 54 1. Labor Code ....................................................... 82
a. Definition ..................................................... 54 2. Philippine Overseas Employment
b. Nature ........................................................... 54 Administration-Standard Employment Contract
5. Wage Distortion .............................................. 55 for Seafarers .......................................................... 87
a. Wage Order .................................................. 55 a. Compensation for Benefits for Injury or
b. Wage Distortion.......................................... 56 Illness ................................................................. 87
6. Non-Diminution of Benefits......................... 57 b. Compensation and Benefits for Death.... 88
D. Leaves................................................................... 57
V. LABOR RELATIONS ..............................91
1. Service Incentive Leave .................................. 57
2. Expanded Maternity Leave............................ 58 A. Right to Self-Organization................................. 91
3. Paternity Leave ................................................ 60 1. Who May Join, Form, or Assist .................... 91
4. Parental Leave for Solo Parents.................... 61 Labor Organizations or Workers’ Associations
5. Leave Benefits for Women Workers ........... 61 ................................................................................. 91
a. Gynecological Leave ................................... 61 2. Restrictions as to:............................................. 92
b. Battered Woman Leave ............................. 63 a. Managerial Employees ................................ 92
b. Supervisory Employees .............................. 92
E. Special Groups of Employees .......................... 63
c. Confidential Employees ............................. 92
1. Women.............................................................. 63
d. Employee-Members of Cooperatives ...... 93
a. Discrimination ............................................. 63
3. Determination of Appropriate Bargaining
b. Stipulation Against Marriage..................... 64
Unit (ABU)............................................................ 94
c. Prohibited Acts............................................ 64
4. Non-Interference with Workers’ Rights to
2. Minors .............................................................. 65
Self-Organization ................................................. 94
a. Child Labor vs. Working Child................. 65
b. Allowed Working Hours and Industries of B. Legitimate Labor Organizations ....................... 94
a Working Child .............................................. 65 1. Registration with the DOLE ......................... 94
c. Prohibited Acts............................................ 65 2. Cancellation of Registration ........................... 94
3. Kasambahay (R.A. No. 10361) ..................... 66 3. Affiliation/Disaffiliation from National
4. Homeworkers .................................................. 69 Union or Federation ............................................ 95
a. Rights and Benefits ..................................... 69 4. Rights of Legitimate Labor Organizations .. 98
b. Employer Liability ...................................... 69 5. Rights and Conditions of Membership in
5. Night Workers ................................................. 70 Legitimate Labor Organizations ........................ 98
a. Mandatory Facilities .................................... 70 6. Check Off, Assessments, Union Dues, and
6. Persons with Disabilities ................................ 70 Agency Fees .......................................................... 98
a. Discrimination ............................................. 70 a. Check-off ...................................................... 98
b. Incentives for Employers .......................... 71 b. Assessment ................................................... 99
c. Union dues.................................................... 99
F. Sexual Harassment in the Work Environment
d. Agency Fees ................................................. 99
..................................................................................... 72
7. Union Security Clause ................................... 100
a. Closed-shop ................................................ 101
IV. SOCIAL WELFARE LEGISLATION ... 76
b. Maintenance of Membership Shop ........ 101
A. Social Security System Law .............................. 76 c. Union Shop ................................................ 101
1. Coverage and Exclusions ............................... 76 d. Modified Union Shop............................... 101
2. Dependents and Beneficiaries ....................... 76 e. Agency Shop .............................................. 101
3. Benefits ............................................................. 77
C. Bargaining Representative................................ 103
B. Government Service Insurance System Law.. 79 1. Modes to Acquire Status as Sole and
1. Coverage and Exclusions ............................... 79 Exclusive Bargaining Agent (SEBA) .............. 104
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a. SEBA Certification ................................... 104 b. Mandatory Procedural Requirements .... 124

b. Certification/Consent Election .............. 105 c. Legal Strike vs. Illegal Strike .................... 126
c. Bars to the Holding of Certification/ d. Prohibited Acts During Strike ................ 127
Consent Election ........................................... 110 2. Picketing .......................................................... 130
d. Failure of Election, Run-Off Election, Re- 3. Lockouts.......................................................... 131
run Election ................................................... 111 a. Grounds for Lockout................................ 131
e. Employer as a Mere Bystander Rule ...... 112 b. Mandatory Procedural Requirements .... 131
4. Assumption of Jurisdiction by the DOLE
D. Collective Bargaining ....................................... 113
Secretary .............................................................. 132
1. Duty to Bargain Collectively ....................... 113
5. Injunctions ...................................................... 133
a. Bargaining in Bad Faith............................ 114
2. Collective Bargaining Agreement (CBA),
VI. TERMINATION OF EMPLOYMENT
Mandatory Provisions ....................................... 115
a. Nature of CBA .......................................... 115 ..................................................................... 134
b. Mandatory Provisions in a CBA ............ 115 A. Security of Tenure ............................................. 134
3. Signing, Posting, Registration...................... 115 1. Categories of Employment as to Tenure... 134
a. Ratification ................................................. 115 a. Regular......................................................... 134
b. Registration ................................................ 116 b. Casual .......................................................... 135
4. Term of CBA, Freedom Period .................. 116 c. Probationary ............................................... 135
a. CBA Effectivity ......................................... 116 d. Project ......................................................... 137
b. Hold-Over Principle ................................ 116 e. Seasonal ....................................................... 138
c. CBA Duration ........................................... 117 f. Fixed-Term ................................................. 139
E. Unfair Labor Practices ..................................... 118 2. Legitimate Subcontracting vs. Labor-Only
1. Nature, Aspects ............................................. 118 Contracting.......................................................... 140
2. By Employers................................................. 118 a. Elements ..................................................... 140
a. Interference, Restraint or Coercion ....... 118 b. Trilateral Relationship .............................. 140
b. Yellow Dog Contracts ............................. 119 c. Solidary Liability ........................................ 141
c. Contracting Out Services Which B. Termination by Employer................................ 141
Discourage Unionism ................................... 120 1. Substantive Due Process .............................. 141
d. Company Union ....................................... 120
e. Discrimination to Encourage or VII. MANAGEMENT PREROGATIVE ... 166
Discourage Unionism ................................... 120
A. Discipline ............................................................ 166
f. Discrimination for Having Given or About
to Give Testimony ........................................ 120 B. Transfer of Employees ..................................... 166
g. Violation of Duty to Bargain Collectively
C. Productivity Standards...................................... 167
.......................................................................... 120
h. Payment of Negotiation or Attorney’s Fees D. Bonus .................................................................. 167
.......................................................................... 121 E. Change of Working Hours .............................. 168
i. Violation of CBA ....................................... 121
3. By Labor Organizations ............................... 122 F. Bona Fide Occupational Qualifications ........... 168
a. Restraint or Coercion ............................... 122 G. Post-Employment Restrictions ...................... 168
b. Discrimination........................................... 122
c. Violation of Duty or Refusal to Bargain 122 H. Clearance Procedures ....................................... 169
d. Illegal Exaction (Featherbedding) .......... 123 I. Limitations on Management Prerogative; Police
e. Asking or Accepting Negotiation and Power of the State .................................................. 169
Other Attorney’s Fees .................................. 123
f. Violation of CBA....................................... 123 VIII. JURISDICTION AND RELIEFS ..... 171
F. Peaceful Concerted Activities ......................... 123 A. Mandatory Conciliation-Mediation, SENA .. 171
1. Strikes .............................................................. 124
B. Labor Arbiter ..................................................... 171
a. Grounds for Strike .................................... 124
1. Jurisdiction ...................................................... 171
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2. Labor Arbiter vs. Regional Director .......... 171

3. Procedure........................................................ 171
a. Requirements for Appeal ......................... 171
C. National Labor Relations Commission ......... 172
1. Jurisdiction ..................................................... 172
2. Function.......................................................... 173
3. Procedure........................................................ 173
D. Judicial Review of Labor Rulings .................. 173
E. Bureau of Labor Relations .............................. 174
1. Jurisdiction ..................................................... 174
2. Function.......................................................... 175
F. National Conciliation and Mediation Board. 176
1. Jurisdiction ..................................................... 176
2. Conciliation as Distinguished from Mediation
.............................................................................. 176
3. Preventive Mediation .................................... 176
G. POEA................................................................. 177
H. DOLE Regional Directors ............................. 177
1. Jurisdiction ..................................................... 177
2. Recovery and Adjudicatory Power ............. 178
I. DOLE Secretary ................................................. 179
1. Jurisdiction ..................................................... 179
2. Visitorial and Enforcement Powers ........... 180
3. Remedies......................................................... 182
J. Grievance Machinery......................................... 182
K. Voluntary arbitrator ......................................... 182
1. Jurisdiction ..................................................... 183
2. Remedies......................................................... 184
Motion for Reconsideration ............................ 184
L. Prescription of Actions .................................... 184
1. Money Claims ................................................ 184
2. Illegal Dismissal ............................................. 184
3. Unfair Labor Practice ................................... 185
4. Offenses under the Labor Code ................. 185
5. Illegal Recruitment ........................................ 185
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LABOR 1
LABOR LAW
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LABOR 1 LABOR LAW
I. GENERAL PRINCIPLES choosing for purposes of

collective bargaining.
A. Basic Policy on Labor Ambulant, intermittent and itinerant workers,

self-employed people, rural workers and those
1. Declaration of Basic Policy without any definite employers may form labor
organizations for their mutual aid and
Labor Code Declaration of Basic Policy protection.
[Art. 3, LC]
The State shall: Art. 254, Labor Code
a. Afford protection to labor, Employees of government corporations
b. Promote full employment, established under the corporation code shall
c. Ensure equal work opportunities have the right to:
regardless of sex, race or creed, and a. Organize, and
d. Regulate the relations between b. Bargain collectively with their
workers and employers. respective employers.
The State shall assure the rights of workers to: All other employees in the civil service shall
a. Self-organization, have the right to form associations for
b. Collective bargaining, purposes not contrary to law.
c. Security of tenure, and
d. Just and humane conditions of work. Infringement of the Right to Self-
Organization
a. Right to Self-Organization and It shall be unlawful for any person to restrain,
Collective Bargaining coerce, discriminate against or unduly interfere
with employees and workers in their exercise
1987 Constitution of the right to self-organization [Art. 257, LC].
The State shall guarantee:
a. The right of the people, including those Scope of Right to Self-Organization
employed in the public and private 1. Right to form, join or assist labor
sectors, to form unions, associations, organizations of their own choosing for
or societies for purposes not contrary the purpose of collective bargaining
to law [Sec. 8, Art. III] through representatives of their own
b. The rights of all workers to – choosing [Art. 257].
i. Self-organization [Sec. 3, Art. 2. Right to engage in lawful concerted
XIII] activities for the same purpose
ii. Collective bargaining and (collective bargaining) or for their
negotiations [Sec. 3, Art. XIII] mutual aid and protection [Art. 257].
iii. Peaceful concerted activities 3. The right of any person to join an
[Sec. 3, Art. XIII] organization also includes the right to
iv. Strike in accordance with law leave that organization and join
[Sec. 3, Art. XIII] another one [Heritage Hotel Manila v.
PIGLAS-Heritage, G.R. No. 177024
Art. 253, Labor Code (2009)].
All persons employed: 4. The right to form or join a labor
a. In commercial, industrial and organization necessarily includes the
agricultural enterprises, and right to refuse or refrain from exercising
b. In religious, charitable, medical or said right. It is self-evident that just as
educational institutions, whether no one should be denied the exercise
operating for profit or not, shall have of a right granted by law, so also, no
the right to – one should be compelled to exercise
i. Self-organization, such a conferred right [Reyes v.
ii. Form, join, or assist labor Trajano, G.R. No. 84433 (1992)].
organizations of their own 5. The right of the employees to self-
organization is a compelling reason
why their withdrawal from the
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LABOR 1 LABOR LAW

cooperative must be allowed. As a. The humanization of laws; and
pointed out by the union, the b. The equalization of social and
resignation of the member-employees economic forces by the State.
is an expression of their preference for
union membership over that of So that justice in its rational and objectively
membership in the cooperative secular conception may at least be
[Central Negros Electric Cooperative v. approximated [Calalang v. Williams, G.R. No.
SOLE, G.R. No. 94045 (1991)]. 47800 (1940)].
6. Their freedom to form organizations
would be rendered nugatory if they Social justice means:
could not choose their own leaders to a. The promotion of the welfare of all the
speak on their behalf and to bargain for people,
them [Pan-American World Airways, b. The adoption by the Government of
Inc v. Pan-American Employees measures calculated to insure
Association, G.R. No. L-25094 (1969)]. economic stability of all the competent
elements of society through –
b. Security of Tenure i. the maintenance of a proper
economic and social
1987 Constitution equilibrium in the interrelations
All workers shall be entitled to security of of the members of the
tenure [Art. XIII, Sec. 3, par. 2]. community, constitutionally;
ii. the adoption of measures
Police power allows the State to regulate the legally justifiable, or extra-
grant of the right to security of tenure [St. constitutionally; and
Luke’s Medical Center Employee’s iii. the exercise of powers
Association-AFW v. NLRC, G.R. No. 162053 underlying the existence of all
(2007)]. governments on the time-
● Purpose: to safeguard the general honored principle of salus
welfare of the public. populi est suprema lex.
● Example: Persons who desire to
engage in the learned professions may Note: The welfare of the people should be the
be required to take an examination as supreme law.
a prerequisite to engaging in the same.
Limits of Social Justice
c. Social Justice Social justice should be used only to correct an
injustice [Agabon v. NLRC, G.R. No. 158693
Sec. 9, Art. II, 1987 Constitution: The State (2004)].
shall promote a just and dynamic social order
that will: It is not intended to countenance wrongdoing
a. Ensure the prosperity and simply because it is committed by the
independence of the nation; underprivileged. It cannot be permitted to be a
b. Free the people from poverty through refuge of scoundrels any more than can equity
policies that provide adequate social be an impediment to the punishment of the
services; and guilty. Those who invoke social justice may do
c. Promote: so only if their hands are clean and their
1. Full employment, motives blameless and not simply because
2. A rising standard of living, they happen to be poor [Tirazona v. Phil EDS
3. Improved quality of life for all Techno-Service, Inc., G.R. 169712 (2009)].
Sec. 10, Art. II, 1987 Constitution: The State Tilting the Scales
shall promote social justice in all phases of Labor laws are meant to implement and effect
national development. social justice. Thus, such considerations
should be taken into account when dealing with
Social Justice as Justification labor cases [Rivera v. Genesis Transport
Social justice is neither communism, nor Service, Inc., G.R. No. 215568 (2015)].
despotism, nor atomism, nor anarchy BUT:
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The social justice suppositions underlying labor d. Equal Work Opportunities
laws require that the statutory grounds
justifying termination of employment should not Declaration of Basic Policy [Art. 3, LC]
be read to justify the view that employees The State shall:
should, in all cases, be free from any kind of a. Afford protection to labor,
error. b. Promote full employment,
c. Ensure equal work opportunities
Not every improper act should be taken to regardless of:
justify the termination of employment. To infer i. Sex,
from a single error that an employee committed ii. Race, or
serious misconduct or besmirched his iii. Creed,
employer’s trust is grave abuse of discretion. It iv. Regulate the relations between
is an inference that is arbitrary and capricious. workers and employers.
It is contrary to the high regard for labor and
social justice enshrined in our Constitution and Note: Art. 3 of the Labor Code must be read in
our labor laws. relation to the 1987 Constitution since this is
still based on the 1973 Constitution.
Welfare State
The welfare state concept is found in the Sec. 3, par. 1, Art. XIII, 1987 Constitution
constitutional clause on the promotion of social The State shall:
justice [Alalayan v. National Power a. Afford full protection to labor –
Corporation, G.R. No. L-24396 (1968)]. i. Local and overseas,
ii. Organized and unorganized,
Purpose: and
a. To ensure the well-being and economic b. Promote full employment and equality
security of all the people, and of employment opportunities for all.
b. In the pledge of protection to labor with
specific authority to regulate the Sec. 2, R.A. No. 10911. Declaration of
relations between landowners and Policies
tenants and between labor and capital. The State shall promote equal opportunities
in employment for everyone. To this end, it
Separation Pay as Measure of Social shall be the policy of the State to:
Justice a. Promote employment of individuals on
General Rule: The rule embodied in the Labor the basis of their –
Code is that a person dismissed for lawful i. Abilities,
cause is not entitled to separation pay [PLDT ii. Knowledge,
v. NLRC, G.R. No. 80609 (1988)]. iii. Skills, and
iv. Qualifications, rather than their
Exception: Considerations of equity. Equity age
has been defined as justice outside law, being b. Prohibit arbitrary age limitations in
ethical rather than jural and belonging to the employment.
sphere of morals than of law. c. Promote the right of all employees and
● Strictly speaking, however, it is not workers, regardless of age, to be
correct to say that there is no express treated equally in terms of –
justification for the grant of separation i. Compensation,
pay to lawfully dismissed employees ii. Benefits,
other than the abstract consideration of iii. Promotion,
equity. iv. Training, and
v. Other employment
Rationale: Our Constitution is replete with opportunities.
positive commands for the promotion of social
justice, and particularly the protection of the
rights of the workers.
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B. Construction in Favor of a case-to-case basis. In situations where
special qualifications are required for
Labor employment, such as a Master's degree,
prospective employees are in a better position
All doubts in the implementation and to bargain with the employer. Employees with
interpretation of the provisions of this Code, special qualifications would be on equal footing
including its implementing rules and with their employers, and thus, would need a
regulations, shall be resolved in favor of labor lesser degree of protection from the State than
[Art. 4, LC]. an ordinary rank-and-file worker [Perfecto
Pascua v. Bank Wise Inc., G.R. No. 191460 &
In case of doubt, all legislation and all labor 191464 (2018)].
contracts shall be construed in favor of the
safety and decent living for the laborer [Art. Balancing of Interests
1702, Civil Code]. While labor laws should be construed liberally
in favor of labor, we must be able to balance
Liberal Construction of the Laws this with the equally important right of the
Art. 4, LC mandates that all doubts in the [employer] to due process [Gagui v. Dejero,
implementation and interpretation of the G.R. No. 196036 (2013)].
provisions thereof shall be resolved in favor of
labor. This is merely in keeping with the spirit
of our Constitution and laws which lean over C. Burden of Proof and Quantum
backwards in favor of the working class, and of Evidence in Labor Cases
mandate that every doubt must be resolved in
their favor [Hocheng Philippines Corporation v. Summary on Burden of Proof
Farrales, G.R. No. 211497 (2015)]. 1. Existence of ER-EE Relationship:
Employee
Of Labor Contracts 2. Fact of dismissal: Employee
A CBA, as a labor contract within the 3. Validity of Dismissal: Employer
contemplation of Art. 1700 of the Civil Code of
the Philippines which governs the relations EE has Burden of Proving Fact of
between labor and capital, is not merely Employment and of Dismissal
contractual in nature but impressed with public Before a case for illegal dismissal can prosper,
interest, thus, it must yield to the common an employer-employee relationship must first
good. As such, it must be construed liberally be established by the employee [Javier v. Fly
rather than narrowly and technically, and the Ace Corp., G.R. No. 192558 (2012)].
courts must place a practical and realistic
construction upon it, giving due consideration The employee must first establish by
to the context in which it is negotiated and substantial evidence the fact of his dismissal
purpose which it is intended to serve [Cirtek from service. If there is no dismissal, then there
Employees Labor Union-FFW v. Cirtek can be no question as to the legality or illegality
Electronics, G.R. No. 190515 (2010)]. thereof [MZR Industries v. Colambot, G.R. No.
179001 (2013)].
Mutual Obligation
The employer’s obligation to give his workers ER has Burden of Proving Valid Dismissal
just compensation and treatment carries with it Unsubstantiated accusations or baseless
the corollary right to expect from the workers conclusions of the employer are insufficient
adequate work, diligence and good conduct legal justifications to dismiss an employee. The
[Judy Philippines, Inc. v. NLRC, G.R. No. unflinching rule in illegal dismissal cases is that
111934 (1998)]. the employer bears the burden of proof
[Garza v. Coca-Cola Bottlers Philippines, Inc.,
Labor as Protected Class; Presumption of G.R. No. 180972 (2014)].
Inherent Inequality
The presumption is that the employer and the
employee are on unequal footing, so the State
has the responsibility to protect the employee.
This presumption, however, must be taken on
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Penalty Must Be Commensurate with benefits as may be provided by
Gravity of Offense law
Not every case of insubordination or willful
disobedience by an employee reasonably ART. III: Bill of Rights
deserves the penalty of dismissal. The penalty
to be imposed on an erring employee must be Due Process [Sec. 1, Art. III, 1987
commensurate with the gravity of his offense Constitution]
[Joel Montallana v. La Consolacion College Two-fold requirement: Under the Labor
Manila, G.R. No. 208890 (2014)]. Code, as amended, the requirements for the
lawful dismissal of an employee by his
D. Legal Basis employer are two-fold: the substantive and the
procedural.
● Substantive: two requisites must
1. 1987 Constitution concur: (1) the dismissal must be for a
just or authorized cause; and (2) the
ART. II: Declaration of Principles and employee must be afforded an
State Policies opportunity to be heard and to defend
The State shall: himself [Jeffrey Nacague v. Sulpicio
a. Promote full employment, a rising Lines, Inc., G.R. No. 172589 (2010)].
standard of living, and an improved ● Procedural: an opportunity to be
quality of life for all [Sec. 9, Art. II] heard and to defend oneself must be
b. Promote social justice [Sec. 10, Art. II] observed before an employee may be
c. Affirm labor as a primary social dismissed [Metro Eye Security v.
economic force [Sec. 18, Art. II] Salsona, G.R. No. 167367 (2007)].
d. Protect rights of workers and promote
their welfare [Sec. 18, Art. II] Right to Property
e. Recognize the indispensable role of One’s employment is a property right, and the
the private sector [Sec. 20, Art. II] wrongful interference therewith is an actionable
f. Encourage private enterprise [Sec. 20, wrong. The right is considered to be property
Art. II] within the protection of the constitutional
g. Provide incentives to needed guarantee of due process of law [Texon
investments [Sec. 20, Art. II] Manufacturing v. Millena, G.R. No. 141380
(2004)].
SEC. 3, par. 1-2, ART. XIII: Social Justice
and Human Rights Right to Assemble [Sec. 4, Art. III, 1987
Constitution]
The State shall:
a. Afford full protection to labor, local and Right to peaceably assemble and petition for
redress of grievances is, together with freedom
overseas, organized and unorganized
b. Promote full employment and equality of speech, of expression, and of the press, a
of employment opportunities for all right that enjoys primacy in the realm of
constitutional protection [BAYAN, et al. v.
c. Guarantee the rights (also known as
the “Cardinal Labor Rights”) of all Ermita, G.R. No. 169838 (2006)].
workers to
Wearing armbands and putting up placards to
i. Self-organization
express one’s views without violating the rights
ii. Collective bargaining and
negotiations of third parties, are legal per se and even
constitutionally protected [Bascon v. CA, G.R.
iii. Peaceful concerted activities
No. 144899 (2004)].
iv. Strike in accordance with law
v. Security of tenure
vi. Humane conditions of work Right to Form Associations [Sec. 8, Art. III,
1987 Constitution]
vii. A living wage
viii. To participate in policy and The right to form associations shall not be
decision-making processes impaired except through a valid exercise of
affecting their rights and police power [Bernas, The 1987 Philippine
Constitution: A Comprehensive Reviewer].
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Non-Impairment of Contracts [Sec. 10, Art. 6. Working conditions,
III, 1987 Constitution] 7. Hours of labor, and
A law which changes the terms of a legal 8. Similar subjects.
contract between parties, either in the time or
mode or performance, or imposes new Neither capital nor labor shall
conditions, or dispenses with those expressed, a. Act oppressively against the other, or
or authorizes for its satisfaction something b. Impair the interest or convenience of
different from that provided in its terms, is a law the public [Art. 1701, Civil Code].
which impairs the obligation of a contract and
is null and void [Clemens v. Nolting, G.R. No. Neither capital nor labor shall act oppressively
L-17959 (1922)]. against the other, or impair the interest or
● Vis-à-vis the freedom of contract: convenience of the public [Art. 1702, Civil
The prohibition to impair the obligation Code].
of contracts is not absolute and
unqualified. In spite of the No contract which practically amounts to
constitutional prohibition and the fact involuntary servitude, under any guise
that both parties are of full age and whatsoever, shall be valid [Art. 1703, Civil
competent to contract, it does not Code].
necessarily deprive the State of the
power to interfere where the parties do Provisions of applicable statutes are deemed
not stand upon an equality, or where written into the contract. Hence, the parties are
the public health demands that one not at liberty to insulate themselves and their
party to the contract shall be protected relationships from the impact of labor laws and
against himself [Leyte Land regulations by simply contracting with each
Transportation Co. v. Leyte Farmers & other [Innodata Philippines, Inc. v. Quejada-
Workers Union, G.R. No. L-1377 Lopez, G.R. No. 162839 (2006)].
(1948)].
Courts cannot stipulate for the parties or
Labor Rights and Protection amend the latter’s agreement, for to do so
● All persons shall have the right to a would be to alter the real intention of the
speedy disposition of their cases contracting parties when the contrary function
before all judicial, quasi-judicial, or of courts is to give force and effect to the
administrative bodies [Sec. 16, Art. III]. intention of the parties [Maynilad Water
● No involuntary servitude in any form Supervisors Association v. Maynilad Water
shall exist [Sec. 18 (2), Art. III]. Services, Inc., G.R. No. 198935 (2013)].
○ Except as a punishment for a
crime whereof the party shall 3. Labor Code
have been duly convicted [Sec.
18 (2), Art. III]. Art. 3. The State shall
a. Afford protection to labor,
2. Civil Code b. Promote full employment,
c. Ensure equal work opportunities
Relations Between Labor and Capital regardless of sex, race or creed, and
The relations between capital and labor are not d. Regulate the relations between
merely contractual [Art. 1700, Civil Code]. workers and employers.
They are impressed with public interest that The State shall assure the rights of workers to
labor contracts: a. Self-organization,
a. Must yield to the common good b. Collective bargaining,
b. Are subject to special laws on c. Security of tenure, and
1. Labor unions, d. Just and humane conditions of work.
2. Collective bargaining,
3. Strikes and lockouts, Article 4. Construction in Favor of Labor. – All
4. Closed shop, doubts in the implementation and interpretation of
5. Wages, the provisions of this Code, including its
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implementing rules and regulations, shall be
resolved in favor of labor.
Article 5. Rules and Regulations. – The Department

of Labor and other government agencies charged
with the administration and enforcement of this Code
or any of its parts shall promulgate the necessary
implementing rules and regulations. Such rules and
regulations shall become effective fifteen (15) days
after announcement of their adoption in newspapers
of general circulation.
Article 6. Applicability. – All rights and benefits

granted to workers under this Code shall, except as
may otherwise be provided herein, apply alike to all
workers, whether agricultural or non-agricultural.
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II. RECRUITMENT AND Overseas Filipino Worker/Migrant Worker –

a person who is to be engaged, is engaged, or
PLACEMENT OF WORKERS has been engaged in a remunerated activity:
1. in a state of which he or she is not a
citizen, or
A. Recruitment and Placement 2. on board a vessel navigating the
foreign seas other than a government
1. General Provisions ship used for military or non-
commercial purposes, or
“Recruitment and Placement" Refers to 3. on an installation located offshore or on
Any Act of: [CETCHUP-R-CPA] the high seas [Sec. 2 (a), RA 8042, as
1. Canvassing, amended].
2. Enlisting,
3. Contracting, License and Authority [Art. 13(d) and (f);
4. Transporting, Sec. 3 (h)(g), DO 141-14]
5. Utilizing, License Authority
6. Hiring, or
7. Procuring workers Document issued by the Department of
Labor and Employment (DOLE)
And includes –
1. Referrals,
Authorize an entity to Authorize an entity to
act of passing along or forwarding of an
applicant for employment after an initial operate as a private operate as a private
interview of a selected applicant for employment agency recruitment entity
employment to a selected employer,
placement officer or bureau [Rodolfo v. When a license is Does not entitle a
People, G.R. No. 146964 (2006)], given, one is also private recruitment
2. Contract services, authorized to collect entity to collect fees.
3. Promising, or fees
4. Advertising for employment, locally or
abroad, whether for profit or not.
Private Employment Agency (PEA) v.
Provided, That any person or entity which, in Private Recruitment Entity (PRE) [Art. 13 (c),
any manner, offers or promises for a fee (e)]
employment to two or more persons shall be
Private Private
deemed engaged in recruitment and
placement [Art. 13 (b), Labor Code]. Employment Recruitme
Agency nt Entity
The proviso provides for a presumption that a
person or entity so described engages in Definition Any person Any person
recruitment and placement [People v. Panis, or entity or
G.R. No. 58674 (1988)]. engaged in association
recruitment engaged in
Number of Persons: Not Essential and the
The number of persons dealt with is not an
essential ingredient of the act of recruitment placement of recruitment
and placement of workers. Any of the acts workers for a and
mentioned in Art. 13(b) will constitute fee which is placement
recruitment and placement even if only one charged, of workers,
prospective worker is involved [People v. directly or locally or
Panis, supra]. indirectly, overseas,
from the without
Worker – any member of the labor force,
whether employed or unemployed [Art.13 (a)]. workers or charging,
employers or directly or
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both indirectly, (c) The Secretary of Labor and Employment or his

duly authorized representatives shall have the
any fee power to cause the arrest and detention of such non-
licensee or non-holder of authority if after
Requirement License Authority investigation it is determined that his activities
constitute a danger to national security and public
order or will lead to further exploitation of job-
Policy of Close Government Regulation seekers. The Secretary shall order the search of the
RA 9422 or the Act to Strengthen the office or premises and seizure of documents,
Regulatory Functions of the Philippine paraphernalia, properties and other implements
used in illegal recruitment activities and the closure
Overseas Employment Administration of 2007 of companies, establishments and entities found to
expressly repealed Sections 29 and 30 of RA be engaged in the recruitment of workers for
8042, which provided for the deregulation of overseas employment, without having been licensed
recruitment activities. or authorized to do so.
a. Labor Code b. R. A. No. 8042, as Amended by R.A.

No. 10022
Article 13. Definitions. – (b) "Recruitment and
placement" refers to any act of canvassing, enlisting, Recruitment of Local and Migrant
contracting, transporting, utilizing, hiring or procuring
workers, and includes referrals, contract services,
Workers: Policy of Selective Deployment
promising or advertising for employment, locally or The State shall allow the deployment of
abroad, whether for profit or not: Provided, That any overseas Filipino workers only in countries
person or entity which, in any manner, offers or where the rights of Filipino migrant workers are
promises for a fee, employment to two or more protected. The government recognizes any of
persons shall be deemed engaged in recruitment the following as a guarantee on the part of the
and placement.
receiving country for the protection of the rights
of overseas Filipino workers:
1. It has existing labor and social laws
Article 34. Prohibited Practices. – It shall be
unlawful for any individual, entity, licensee, or holder protecting the rights of workers,
of authority: including migrant workers;
(f) To engage in the recruitment or placement of 2. It is a signatory to and/or a ratifier of
workers in jobs harmful to public health or multilateral conventions, declarations
morality or to the dignity of the Republic of the or resolutions relating to the protection
Philippines;
of workers, including migrant workers;
and
3. It has concluded a bilateral agreement
Article 38. Illegal Recruitment. – (a) Any recruitment
activities, including the prohibited practices or arrangement with the government
enumerated under Article 34 of this Code, to be on the protection of the rights of
undertaken by non-licensees or non-holders of overseas Filipino Workers:
authority, shall be deemed illegal and punishable
under Article 39 of this Code. The Department of Provided, That the receiving country is taking
Labor and Employment or any law enforcement
positive, concrete measures to protect the
officer may initiate complaints under this Article.
rights of migrant workers in furtherance of any
(b) Illegal recruitment when committed by a of the guarantees under subparagraphs (a), (b)
syndicate or in large scale shall be considered an and (c) hereof [Sec. 3, RA 8042, as amended].
offense involving economic sabotage and shall be
penalized in accordance with Article 39 hereof. [...] The Department of Foreign Affairs, through
its foreign posts, shall issue a certification to
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three (3) or the POEA, specifying therein the pertinent
more persons conspiring and/or confederating with provisions of the receiving country's labor/
one another in carrying out any unlawful or illegal social law, or the convention/ declaration/
transaction, enterprise or scheme defined under the resolution, or the bilateral agreement/
first paragraph hereof. Illegal recruitment is deemed arrangement which protect the rights of migrant
committed in large scale if committed against three
workers.
(3) or more persons individually or as a group.
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The State shall also allow the deployment of recruitment illegal [Sharp v. Espanol, G.R. No.
overseas Filipino workers to vessels navigating 155903 (2007)].
the foreign seas or to installations located
offshore or on high seas, whose Illegal Recruitment of Migrant Workers
owners/employers are compliant with
international laws and standards that protect “Illegal Recruitment” Defined
the rights of migrant workers. Any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring
The State shall likewise allow the deployment workers and includes referring, contract
of overseas Filipino workers to companies and services, promising or advertising for
contractors with international operations: employment abroad, whether for profit or not,
Provided, That they are compliant with when undertaken by a non-licensee or non-
standards, conditions and requirements, as holder of authority contemplated under
embodied in the employment contracts Art.13(f), P.D. No. 442 or LC [Sec. 5, R.A. No.
prescribed by the POEA and in accordance 10022].
with internationally-accepted standards [Sec.
3, RA 8042, as amended]. Note: The Migrant Workers’ Act (R.A. No.
8042) expanded the concept of illegal
2. Illegal Recruitment and Other recruitment found in the LC and provided stiffer
Prohibited Activities penalties, especially for when it constitutes
economic sabotage [People v. Ocden, G.R.
a. Elements No. 173198 (2011)].
First Main Type: Simple illegal Two Types According to the Offense
recruitment 1. Undertakes any recruitment activity defined
in Art. 13(b), LC without a valid
Two Types According to the Kind of license/authority
Employer a. Note: Can only be committed by one
The following are the types of illegal who has no valid license or authority to
recruitment of local workers and the elements engage in recruitment and placement
for each type: 2. Commits any of the prohibited acts in Sec. 6,
1. By a licensee/holder of authority R.A. No. 8042, as amended by R.A. 10022
a. Offender has a valid license or a. Note: Immaterial whether an offender
authority required by law to enable one is a holder or a non-holder of a license
to lawfully engage in the recruitment or authority
and placement of workers;
b. Offender undertakes any of the Contract Substitution = Illegal Recruitment
prohibited acts under Art. 34. The reduced salaries and employment period
2. By a non-licensee/non-holder of authority in the new employment contract contradicted
a. Offender has no valid license or the POEA-approved employment contract. By
authority required by law to enable one this act of contract substitution, respondents
to lawfully engage in the recruitment committed a prohibited practice; consequently,
and placement of workers; engaged in illegal recruitment [PERT/CPM
b. Offender undertakes either – Manpower Exponent Co. v. Vinuya, G.R. No.
1. Any activity within the meaning 197528 (2012)].
of recruitment and placement
under Art. 13(b) Possible Liability of Employee
2. Any of the prohibited practices Even the employee of a company engaged in
under Art. 34 [Art. 34 and 38]. illegal recruitment can be held liable (along with
the employer) as a principal once it is shown
Profit Immaterial that he had actively and consciously
Recruitment may be for profit or not. It is the participated in the illegal recruitment [People v.
lack of the necessary license or authority, and Bayker, G.R. No. 170192 (2016)].
not the fact of payment that renders
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Accused Must Give the Impression of Second Main Type: Illegal Recruitment
Ability to Send Complainant Abroad for as Economic Sabotage
Work
It must be shown that the accused gave Two Types According to Qualifying
complainants the distinct impression that she Circumstance
had the power or ability to send them abroad Illegal recruitment is considered economic
for work such that the latter were convinced to sabotage when attended by the ff. qualifying
part with their money in order to be employed circumstances:
[People v. Ochoa, G.R. No. 173792 (2011)]. 1. By a syndicate - carried out by a group
of 3 or more persons conspiring and
Lack of Receipts Not Fatal confederating with one another;
Mere failure of the complainant to present 2. In large scale - committed against 3 or
written receipts for money paid for acts more persons individually or as a group
constituting recruitment activities is not fatal to [Art. 38(b), LC; Sec. 6 of R.A. No. 8042
the prosecution, provided payment can be as amended].
proved by clear and convincing testimonies of
credible witnesses [People v. Alvarez, G.R. 3+ Complainants Must Be in a Single Case
142981 (2002)]. “Committed against 3 or more persons
individually or as a group” must be understood
Comparison of Local and Migrant as referring to the number of complainants in
each case; otherwise, prosecutions for single
Non-
Licensee/ crimes of illegal recruitment can be cumulated
Licensee/ to make it in large scale [People v. Reyes, G.R.
Local Holder of
Non-Holder No. 105204 (1995)].
Authority
of Authority
Number of victims must be alleged
Recruitment Allowed Not allowed The information for illegal recruitment done in
and [Art. 13(b); large scale must allege the number of victims
placement Art. 38] [People v. Fernandez, 725 SCRA 152 (2014)].
Recruitment Not allowed [Art. 34; 38] 1. For Local Workers (Elements)
and
By a Syndicate
placement 1. Offender undertakes either:
a. Any activity within the meaning
of “recruitment and placement”
Non- defined under Art. 13(b)
Licensee/
Licensee/ b. Any of the prohibited practices
Migrant Holder of
Non-Holder under Art. 34
Authority 2. Offender has no valid license or
of Authority
authority required by law to enable one
Allowed Not allowed to lawfully engage in recruitment and
Recruitment placement of workers
[Sec. 6, R.A.
and 3. Illegal recruitment is committed by a
No. 8042, as
placement group of 3 or more persons conspiring
amended] or confederating with one another
[People v. Gallo, G.R. No. 187730
Prohibited Not allowed [Sec. 6, R.A. No. (2010)]
practices 8042, as amended]
Not allowed [7 acts under

Prohibited
Sec. 6, R.A. No. 8042 as
acts
amended by R.A. No. 10022]
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In Large Scale
Simple Illegal Recruitment
1. Offender undertakes either:
a. Any activity within the meaning
of “recruitment and placement” 1. Licensed or 1. Licensee/Holder of
defined under Art. 13(b) Authorized authority
b. Any of the prohibited practices
2. Undertakes
under Art. 34
2. Offender has not complied with the prohibited practices
guidelines issued by the SOLE, under Art. 34, LC
particularly with respect to the securing (Local) or Sec. 6 of R.A.
of license or an authority to recruit and No. 8042 as amended
deploy workers, either locally or (Migrant).
overseas
3. Offender commits the unlawful acts 2.Unlicensed or 1. Non-licensee/ -
against 3 or more persons individually Unauthorized holder of authority
or as a group [Art. 38 (b)]
2. Undertakes either:
2. For Migrant Workers (Elements) a. Recruitment
and placement
By a Syndicate under Art. 13(b)
1. Offender does not have the valid b. Prohibited
license or authority required by law to practices/activities
engage in recruitment and placement under Art. 34, LC
of workers (Local) or Sec. 6,
2. Offender undertakes either: R.A. No. 8042
a. Any of the “recruitment and (Migrant)
placement” activities defined in
Art. 13(b) Economic Sabotage
b. Any of the prohibited practices
under Sec. 6 of R.A. No. 8042 3. In A Large 1. Undertakes either:
3. Illegal recruitment is carried out by a Scale a. Recruitment
group of 3 or more persons conspiring and placement
and/or confederating with one another under Art. 13(b)
in carrying out any unlawful or illegal b. Prohibited
transaction, enterprise or scheme practices/activities
[People v. Sison, G.R. No. 187160 under Art. 34
(2017)]. (Local) or Sec. 6 of
R.A. No. 8042
In Large Scale (Migrant)
1. Offender undertook any recruitment 2. No valid license or an
activity as defined under Sec. 6 of R.A.
authority to recruit and
No. 8042;
2. Offender did not have the license or the deploy workers, either
authority to lawfully engage in the locally or overseas
recruitment of workers; 3. Committed against 3
3. Offender committed the same against or more persons
3 or more persons individually or as a individually or as a
group [People v. Delos Reyes, G.R. group
No. 198795 (2017)].
4. By a Syndicate 1. Undertakes either:
b. Types of Illegal Recruitment
a. Any activity
within the meaning
Summary of Types and Elements
of "recruitment
There are at least 4 kinds of illegal recruitment
and placement"
[People v. Sadiosa, G.R. No. 107084 (1998)].
under Art. 13(b)
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b. Any of the 3. Liability of Local Recruitment

prohibited Agency and Foreign Employer
practices
enumerated under a. Solidary Liability
Art. 34 (Local) or
Sec. 6 of R.A. No. Foreign Employer
8042 (Migrant) Foreign employers shall assume joint and
2. No valid license or solidary liability with the recruitment/ placement
authority to recruit and agency for all claims arising out of an
deploy workers, either employer-employee relationship or by virtue of
any law or contract involving Filipino workers
locally or overseas
for overseas deployment including claims for
3. Committed by a damages [Sec. 10 of RA 8042, as amended].
group of 3 or more
persons conspiring and Solidary Liability of Agent & Principal
confederating with one
another Coverage
The liability of the principal/employer and the
recruitment/placement agency for the claims
c. Illegal Recruitment as Distinguished involving Filipino workers for overseas
from Estafa deployment including claims for damages is
joint and several.
Conviction for Illegal Recruitment Not a
Bar to Conviction for Estafa and Vice Incorporation Into the Contract
Versa This shall be incorporated in the contract for
A person who commits illegal recruitment may overseas employment and shall be a condition
be charged and convicted separately of illegal precedent for its approval.
recruitment under the LC and estafa under Art.
315(2a), RPC. The offense of illegal Performance Bond
recruitment is malum prohibitum where the The performance bond filed by the
criminal intent of the accused is not necessary recruitment/placement agency shall be
for conviction, while estafa is malum in se answerable for all money claims or damages
where the criminal intent of the accused is awarded to workers.
crucial for conviction. Conviction for offenses
under the LC does not bar conviction for Corporate Officers and Directors and
offenses punishable by other laws. Conversely, Partners Solidarily Liable
conviction for estafa does not bar a conviction If the recruitment/placement agency is a
for illegal recruitment. One's acquittal of the juridical being, the corporate officers and
crime of estafa will not necessarily result in his directors and partners as the case may be,
acquittal of the crime of illegal recruitment in shall be joint and severally liable with the
large scale, and vice versa [People v. Ochoa, corporation or partnership for the claims and
G.R. No. 173792 (2011); People v. Ocden, damages [Sec. 10, RA 8042 as amended].
G.R. No. 173198 (2011)].
Purpose of Solidary Liability
As such, the filing of criminal cases for both The termination of agreement between the
does not constitute double jeopardy. In illegal manning agency and its principal does not
recruitment, profit is immaterial; on the other relieve the former of its liability. The agency
hand, a conviction for estafa requires a clear agreement extends until the expiration of the
showing that the offended party parted with his employment contracts of the employees
money or property upon the offender’s false recruited and employed. Otherwise, this
pretenses, and suffered damage thereby. The renders nugatory the purpose of the law which
two are then completely different and distinct is to assure aggrieved workers of immediate
crimes [People v. Melissa Chua, G.R. No. and sufficient payment of what is due them.
187052 (2012)].
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Requisite Undertaking for Application of If the offender is a corporation, partnership,
License association or entity, the penalty shall be
The written application for a license to operate imposed upon the officer or officers
a private employment agency shall be responsible for the violation.
submitted with, among others, a duly notarized
undertaking that the applicant: In every case, conviction carries with it:
1. Shall assume full and complete 1. Automatic revocation of
responsibility for all claims and license/authority and all permits and
liabilities which may arise in connection privileges granted under this Title
with the use of the license; 2. Forfeiture of cash and surety bonds in
2. Assume joint and several liability with favor of POEA or the Regional
the employer for all claims and Department with jurisdiction over the
liabilities which may arise in connection place where the agency or branch
with the implementation of the contract, office is located
including but not limited to unpaid 3. For aliens, in addition to the penalties
wages, death, disability compensation herein prescribed, deportation without
and repatriation; further proceedings [Art. 39 (3)]
3. Assume full and complete
responsibility for all acts of its officers, Illegal Recruitment of Migrant Workers
employees and representatives done [Sec. 7, RA 8042 as amended]
in connection with recruitment and
placement [Part II, Rule II, Sec. 4 (f) (7- Act Penalty
9), 2016 Revised POEA Rules and
Regulations]. Prohibited Acts 6 years and 1 day - 12
years imprisonment
For corporations or partnerships, a duly and P500K-P1M fine
notarized undertaking by the corporate officers
and directors, or partners, that they shall be Illegal Recruitment 12 years and 1 day -
joint and severally liable with the corporation or 20 years imprisonment
partnership for claims and/or damages and P1M-P2M fine
awarded to workers is also required [Part II,
Rule II, Sec. 4 (g), 2016 Revised POEA Rules Illegal recruitment Life imprisonment and
and Regulations].
constituting P2M-P5M fine
Illegal Recruitment of Local Workers economic
sabotage Max penalty:
Act Penalty
1. Illegally recruited
person is below 18
License/authority
2-5 years years old, or
holder violating or
imprisonment or 2. Offense is
causing another to
P10K-P50K fine or committed without
violate Title 1, Book
both (Art. 34) license/ authority
1
Non- In every case, conviction carries with it:

license/authority 4-8 years 1. Automatic revocation of license or
holder violating or imprisonment or registration of the recruitment/manning
causing another to P20K-P100K fine or agency, lending institutions, training
school or medical clinic
violate Title 1, Book both (Art. 38)
2. For aliens, in addition to the penalties
1 herein prescribed, deportation without
further proceedings
Illegal recruitment Life imprisonment
constituting and P100K fine (Art.
economic sabotage 38)
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Employees of a company or corporation therefore, is not notice to the local employment
engaged in illegal recruitment may be held agency.
liable as principal, together with his employer if
it is shown that he actively and consciously 4. Entities Prohibited from Recruiting
participated in illegal recruitment [People v.
Sagayaga, G.R. 143726 (2004)]. Entities Disqualified from Engaging in the
Business of Recruitment and Placement
Two Jurisdiction Rule of Workers for Local Employment
A criminal action arising from illegal recruitment 1. Travel agencies and sales agencies of
of migrant workers shall be filed with the RTC airline companies, whether for profit or
of the province or city: not [Art. 26];
1. Where offense was committed, or 2. Those who are convicted of illegal
2. Where the offended party actually recruitment, trafficking in persons, anti-
resides at the time of the commission child labor violation, or crimes involving
of the offense [Sec. 9, RA 8042]. moral turpitude;
3. Those against whom probable cause
Provided, the court where such action is first or prima facie finding of guilt for illegal
filed acquires jurisdiction to the exclusion of recruitment or other related cases exist
other courts [Sec. 6, Rule IV, Omnibus Rules particularly to owners or directors of
implementing RA 8042, as amended]. agencies who have committed illegal
recruitment or other related cases;
Prescription 4. Those agencies whose licenses have
Prescriptive been previously revoked or cancelled
Crime Classification by the Department under Sec. 54 of
Period
these rules;
5. Cooperatives whether registered or not
Local Simple/economic 3 years [Art.
under the Cooperative Act of the
workers sabotage 305 LC] Philippines;
6. Law enforcers and any official and
Migrant Simple 5 years [Sec. employee of the Department of Labor
workers 12, RA 8042] and Employment (DOLE);
7. Sole proprietors of duly licensed
Economic 20 years agencies are prohibited from securing
Sabotage [Sec. 12, RA another license to engage in
8042] recruitment and placement;
8. Sole proprietors, partnerships or
corporations licensed to engage in
b. Theory of Imputed Knowledge private recruitment and placement for
local employment are prohibited from
Definition: This is a doctrine in agency stating engaging in job contracting or
that the principal is chargeable with and bound subcontracting activities [Sec. 5, DO
by the knowledge of or notice to his agent 141-14, Revised Rules and
received while the agent was acting as such. Regulations Governing Recruitment
and Placement for Local Employment].
Notice to the agent is notice to the principal.
Entities Disqualified from Engaging or
A local employment agency is considered the Participating in the Business of
agent of the foreign employer, the principal. Recruitment and Placement of Workers
Knowledge of the former of existing labor and for Overseas Employment
social legislation in the Philippines in binding 1. Travel agencies and sales agencies of
on the latter. Notice to the former of any airline companies, whether for profit or
violation thereof is notice to the latter. not [Art. 26];
2. Officers or members of the Board of
But, notice to the principal is NOT notice to the any corporation or partners in a
agent. Notice to the foreign employer,
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partnership engaged in the business of 5. Cancellation of License or Authority
a travel agency;
3. Corporations and partnerships, where The Secretary of Labor shall have the power to
any of its officers, members of the suspend or cancel any license or authority to
board or partners is also an officer, recruit employees for overseas employment
member of the board or partner of a for:
corporation or partnership engaged in a. violation of rules and regulations
the business of a travel agency; issued by the Department of Labor, the
4. Individuals, partners, officers, or Overseas Employment Development
directors of an insurance company who Board, and the National Seamen
make, propose or provide an insurance Board;
contract under the compulsory b. violation of the provisions of this and
insurance coverage for agency-hired other applicable laws, General Orders
OFWs; and Letters of Instructions [Art. 35].
5. Sole proprietors, partners or officers
and members of the board with Acts prohibited under Art. 34 are grounds for
derogatory records, such as, but not suspension or cancellation of license. Note that
limited to the ff: these acts likewise constitute illegal
a. Those convicted or against recruitment under RA 8042 as amended by RA
whom probable cause or prima 10022.
facie finding of guilt is
determined by a competent Who can suspend or cancel the license?
authority for illegal recruitment 1. DOLE Secretary
or for other related crimes or 2. POEA Administrator
offenses committed in the
course of, related to, or The power to suspend or cancel any license or
resulting from, illegal authority to recruit employees for overseas
recruitment, or for crimes employment is concurrently vested with the
involving moral turpitude; POEA and the Secretary of Labor [People v.
b. Those agencies whose Diaz, G.R. 112175 (1996)].
licenses have been revoked for
violation of RA 8042, PD 442, 6. Termination of Contract of Migrant
RA 9208, and their IRRs; Worker Without Just or Valid Cause
c. Those agencies whose
licenses have been cancelled, In case of –
or those who, pursuant to the a. Termination of overseas employment
order of the Administrator, without just, valid, or authorized cause
were included in the list of as defined by law or contract, or
persons with derogatory record b. Any unauthorized deductions from the
for violation of recruitment laws migrant worker’s salary
and regulations;
6. Any official employee of the DOLE, The worker shall be entitled to full
POEA, OWWA, DFA, DOJ, DOH, BI,
reimbursement of:
IC, NLRC, TESDA, CFO, NBI, PNP, a. His placement fee and the deductions
Civil Aviation Authority of the made with interest at twelve percent
Philippines, international airport (12%) per annum; AND
authorities, and other government b. His salaries for the unexpired portion of
agencies directly involved in the
his employment contract
implementation of RA 8042, as (*or for three (3) months for every year of the
amended, and/or any of his/her unexpired term, whichever is less) [Sec. 10, RA
relatives within the fourth civil degree of 8042, as amended by RA 10022]
consanguinity or affinity [Part II, Rule I,
Sec. 3, 2016 Revised POEA Rules and
Regulations].
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Rule on 3-Month Salary Cap Clause circumstances have so changed as to warrant
a reverse conclusion.” Hence, the case of
Rule Before
Rule After Serrano: Serrano holds as binding precedent, even after
Serrano (1995- the passage of RA 10022.
Invalidated the 3-
2009): 3-Month
Month Salary Cap
Salary Rule 7. Ban on Direct Hiring
Clause
Applied
a. General Rule
The employment The SC there held
contract involved in that “said clause is No employer may hire a Filipino worker for
the instant case unconstitutional for overseas employment except through the
covers a two-year being an invalid Boards and entities authorized by the
period but the classification, in Secretary of Labor [Art. 18].
overseas contract violation of the equal
No employer shall directly hire an Overseas
worker actually protection clause.” Filipino Worker for overseas employment [Sec.
worked for only 26 123, 2016 Revised POEA Rules and
days prior to his Thus, the present Regulations].
illegal dismissal. rule is that OFWs
Thus, the three whose contracts are b. Exceptions
months’ salary rule terminated without 1. Members of the diplomatic corps;
2. International organizations;
applies [Flourish just cause are
3. Heads of state and government
Maritime Shipping v. entitled to all the officials with the rank of at least deputy
Almanzor, G.R. No. salaries for the entire minister;
177948 (2008)] unexpired portion of 4. Other employers as may be allowed by
their employment the Secretary of Labor and
contract, irrespective Employment, such as:
of the stipulated term a. Those provided in (a), (b) and
(c) who bear a lesser rank, if
or duration thereof.
endorsed by the Philippine
Overseas Labor Office
In the case of Yap v. Thenamaris Ship’s (POLO), or Head of Mission in
Management and Intermare Maritime the absence of the POLO;
Agencies, Inc [G.R. No. 179532 (2011)], the 5. Professionals and skilled workers with
SC affirmed the Serrano ruling, but did not duly executed/authenticated contracts
apply the Operative Fact doctrine: “As an containing terms and conditions over
exception to the general rule, the doctrine and above the standards set by the
applies only as a matter of equity and fair play.” POEA. The number of professional and
skilled Overseas Filipino Workers hired
Note: In 2010, a year after Serrano, RA 10022, for the first time by the employer shall
in amending RA 8042, reincorporated the not exceed five (5). For the purpose of
nullified 3-month salary cap clause. However, determining the number, workers hired
the SC did not allow this and again struck the as a group shall be counted as one; OR
revived clause as unconstitutional in the 2014 6. Workers hired by a relative/family
case of Sameer Overseas Placement Agency member who is a permanent resident
v. Cabiles [G.R. No. 170139 (2014)]. of the host country [Sec. 124, 2016
Revised POEA Rules and
There, the SC said that: “when a law or a Regulations].
provision of law is null because it is inconsistent
with the Constitution, the nullity cannot be
cured by a reincorporation or reenactment of
the same or a similar law or provision. A law or
provision of law that was already declared
unconstitutional remains as such unless
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B. Employment of Non-Resident provided that the exemption is on a
reciprocal basis;
Aliens e. Permanent Resident foreign nationals,
probationary or temporary resident visa
1. Coverage holders;
f. Refugees and stateless persons
Who Should Apply For an Alien recognized by DOJ; and
Employment Permit g. All foreign nationals granted exemption
a. Any alien seeking admission to the by Law [Sec. 2, D.O. No. 186-17].
Philippines for employment purposes,
and Who are Excluded from Securing an Alien
b. Any domestic or foreign employer who Employment Permit [BPTCICR]
desires to engage an alien for a. Members of the governing Board with
employment in the Philippines [Art. 40, voting rights only and do not intervene
Labor Code]. in the management of the corporation
or in the day to day operation of the
Art. 40 of the Labor Code which requires enterprise.
employment permits refers to non-resident b. President and Treasurer, who are part-
aliens. Resident aliens do not fall within the owner of the company.
ambit of the provision [Almodiel v. NLRC, 223 c. Those providing Consultancy services
SCRA 341 (1993)]. who do not have employers in the
Philippines.
An alien cannot file a labor complaint without d. Intra corporate transferee who is a
having obtained an employment permit Manager, Executive or Specialist.
[Andrew James McBurnie v. Eulalio Ganzon, e. Contractual service supplier who is a
707 SCRA 646 (2013)]. Manager, Executive, or Specialist.
f. Representative of the Foreign
Who are Exempted from Securing an Principal/Employer assigned in the
Alien Employment Permit [DOISIPRRL] Office of Licensed Manning Agency
a. All members of the Diplomatic service (OLMA) in accordance with the POEA
and foreign government Officials law, rules and regulations [Section 3,
accredited by and with reciprocity D.O. No. 186-17].
arrangement with the Philippine
government; INTRACORPORATE TRANSFEREE:
b. Officers and staff of International REQUISITES FOR EXCLUSION
organizations of which the Philippine 1. Must be an Executive, Manager, or
government is a member, and their Specialist
legitimate Spouses desiring to work in Executive: primarily directs the
the Philippines; management of the organization and
c. Owners and representatives of foreign exercises wide latitude in decision
principals whose companies are making and receives only general
accredited by the POEA, who come to supervision or direction from higher
the Philippines for a limited period and level executives, the board of directors,
solely for the purpose of Interviewing or stockholders of the business; an
Filipino applicants for employment executive would not directly perform
abroad; tasks related to the actual provision of
d. Foreign national who comes to the the service or services of the
Philippines to teach, present and/or organization.
conduct research studies in
universities and colleges as visiting, Manager: a natural person within the
exchange or adjunct Professors under organization who primarily directs the
formal agreements between the organization/department/ subdivision
universities or colleges in the and exercises supervisory and control
Philippines and foreign universities or functions over other supervisory,
colleges; or between the Philippine managerial or professional staff; does
government and foreign government: not include first line supervisors unless
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employees supervised are For an enterprise registered in preferred areas
professionals; does not include of investments, said employment permit may
employees who primarily perform tasks be issued upon recommendation of the
necessary for the provision of the government agency charged with the
service. supervision of said registered enterprise [Art
40, Labor Code].
Specialist: a natural person within the
organization who possesses Where to File Applications
knowledge at an advanced level of All applications for AEP shall be filed and
expertise essential to the processed at the DOLE Regional Office or
establishment/provision of the service Field Office having jurisdiction over the
and/or possesses proprietary intended place of work [Sec. 5(a), D.O. No.
knowledge of the organization’s 186-17].
service, research equipment,
techniques or management; may When to File Applications
include, but is not limited to, members Newly hired/appointed officers may file the
of a licensed profession. application for new AEP without penalty:
a. General Rule: within 15 working days
2. At least 1 Year of Continuous after signing of contract/appointment
Employment [Section 3, D.O. No. 186-17] b. If commencement of employment is
later than the 15 working day grace
Contractual Service Supplier: Requisites period: before the commencement of
for exclusion employment [Sec. 17, D.O. No. 186-
a. Must be an Executive, Manager, or 17]
Specialist
b. Enters the Philippines temporarily to What Documents Should be Submitted
supply a service pursuant to a contract a. Application form;
between his/her employer and a b. Photocopy of passport with visa, or
service consumer in the Philippines Cert of Recognition for Refugees or
c. Must possess the appropriate Stateless Persons;
educational and professional c. Original copy of notarized appointment
qualifications; and or contract of employment enumerating
d. Employed for at least 1 year prior the duties and responsibilities, annual
[Section 3, D.O. No. 186-17] salary, and other benefits of the foreign
national;
Certificate of Exclusion d. Photocopy of Mayor’s Permit to
All foreign nationals excluded from securing operate business, in case of locators in
AEP shall secure Certificate of Exclusion from economic zones, certification from the
the Regional Office. Further, Regional Offices PEZA or the Ecozone Authority that the
shall issue the Certificate of Exclusion within company is located and operating
two (2) working days after receipt of complete within the ecozone, while in case of a
documentary requirements and fees [Section construction company, photocopy of
4, D.O. No. 186-17]. license from PCAB or D.O. No. 174-17
Registration should be submitted in lieu
2. Conditions for Grant of Permit of Mayor’s Permit; and
e. Business Name Registration and
Non-availability of Competent, Able, and Application Form with the Department
Willing persons [CAW] of Trade and Industry (DTI) or SEC
The employment permit may be issued to a Registration and GIS;
non-resident alien or to the applicant employer f. If the position title of the foreign
after a determination of the non-availability of a national is included in the list of
person in the Philippines who is competent, regulated professions, a Special
able and willing at the time of application to Temporary Permit (STP) from the
perform the services for which the alien is Professional Regulations Commission
desired. (PRC); and
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g. If the employer is covered by the Anti- perform the services for which the
Dummy Law, an Authority to Employ foreign national is desired may file an
Foreign National (ATEFN) from the objection at the DOLE Regional Office.
DOJ or from the DENR in case of
mining [Section 5a, D.O. No. 186-17]. Where to File Objection
Regional Office within 30 days after
In Case of Additional Position of Change Publication.
in Position
Additional position of the foreign national in the Other Information that DOLE May Refer
same company or subsequent assignment in To
related companies during the validity or a. Philjobnet and PESO Information
renewal of the AEP will be subject for System (PEIS), the PRC Registry of
publication requirement. A change of position professionals, and the TESDA registry
or employer shall require an application for new of certified workers to establish
AEP [Section 5(c), D.O. No. 186-17]. availability or non-availability of able
and qualified Filipino workers.
Only One AEP at a Time b. Information or criminal offense and
At any given time only one AEP shall be issued grave misconduct in dealing with or ill
to a foreign national. A foreign national may be treatment of workers filed with the
issued one AEP only at any given time [Sec. Regional Offices any time.
5d, D.O. No. 186-17].
Processing and Issuance
Fees AEP shall be issued:
a. Upon filing: a. Within three working days after
1. One year validity: P9000 publication and payment of fees: new
2. More than 1 year: plus P4000 AEP
per year b. One day after receipt: renewal of AEP
3. Renewal: P4000 per year [Sec. 8, D.O. No. 186-17]
b. Courier fee: P200
c. Loss/change of info, AEP replacement: Verification Inspection
P1500 The authorized representatives of the Regional
d. Certificate of exclusion: P500 [Sec. 6, Director may conduct inspection to verify
D.O. No. 186-17] legitimacy of employment of the foreign
national as deemed necessary, based on the
Labor Market Test [Sec. 7, D.O. No. 186-17] documents submitted within two working days
AEP application (new/change in or additional upon payment of fees [Sec. 9, D.O. No. 186-
position/subsequent assignment) should be 17].
published by the DOLE Regional Office in:
a. Newspaper of general circulation within 3. Validity of AEP and Renewal
2 working days from receipt of
application Duration of Validity
b. DOLE Website (30 days) The AEP shall be valid for the position and the
c. PESO (30 days) company for which it was issued for.
Contents of the Publication: General Rule: 1 year

a. Name, Exception: Period not exceeding 3 years; if the
b. Position, employment contract/mode of engagement
c. Employer and address, provides otherwise [Sec. 10, D.O. No. 186-17].
d. A brief description of the functions to be
performed by the foreign national, When to Apply for Renewal
e. Qualifications, General Rule: Not earlier than 60 days before
f. Monthly salary range and other expiration.
benefits, if there are any,
g. Indicate that any person in the
Philippines who is competent, able and
willing at the time of the application to
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Exceptions: g. Application for renewal with Expired
a. Alien needs to leave the country; visa or with temporary visitor’s visa
b. Other similar circumstances that will [Sec. 112, D.O. No. 186-17].
hinder the filling of renewal within this
prescribed period. Effect of Denial
Denial of application for AEP shall cause the
In case of officers to be appointed/elected forfeiture of the fees paid by the applicant [Sec.
a. Before AEP expiration: not later than 12, D.O. No. 186-17].
15 working days after appointment, or
before its expiration, whichever comes 5. Revocation; Cancellation
later
b. After AEP expiration: before the Grounds for Cancellation [Non-Mi-Fa-Me-
expiration of the AEP, renewed for 1 Con-Te-Mi]
year a. Non-compliance with any of the
c. Within 15 working days after the date requirements or conditions for which
of appointment or election, the foreign the AEP was issued;
national shall submit to the issuing b. Misrepresentation of facts in the
Regional Office the Board Secretary’s application including fraudulent
Certification misrepresentation;
1. The Regional Director shall revoke c. Submission of Falsified or tampered
the AEP after 1 month from its documents;
issuance, if no Certification is filed d. Meritorious objection or information
[Sec. 11, D.O. No. 186-17]. against the employment of the foreign
national;
Expired AEP e. Foreign national has been Convicted
Expired AEP shall be processed as a new of a criminal offense or a fugitive from
application subject to the payment of required justice;
fees and penalties in relation to Section 17 f. Employer Terminated the employment
(Penalty for Working without AEP) [Sec. 11, of foreign national;
D.O. No. 186-17]. g. Grave Misconduct in dealing with or ill
treatment of workers [Sec. 13, D.O. No.
4. Denial of Application 186-17].
Grounds for Denial [Mi-Fa-Co-Mi-CAW- Effect of Denial/Revocation or

Wo-Ex]: Cancellation
a. Misrepresentation of facts in the Disqualified to re-apply for 10 years in case the
application including fraudulent ground for denial or cancellation is:
misrepresentation a. Conviction of criminal offense or
1. i.e. false statement that has a fugitive from justice in the country or
negative effect in the evaluation of abroad; or
the application made knowingly, or b. Grave misconduct in dealing with or ill
without belief in its truth, or treatment of workers [Sec. 14, D.O. No.
recklessly whether it is true or false; 186-17].
b. Submission of Falsified documents;
c. Conviction to a criminal offense or a Effect of Fraudulent Application
fugitive from justice in the country or Employers, employer’s or foreign national’s
abroad; representatives, and/or agents acting on behalf
d. Grave Misconduct in dealing with or ill of the applicant found to have filed fraudulent
treatment of workers; application for AEP for three (3) counts shall be
e. Availability of a Filipino who is barred from filing application for a period of five
Competent, Able and Willing to do the (5) years after due process [Sec. 15, D.O. No.
job; 186-17].
f. Worked without valid AEP for more
than a year;
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6. Appeal
When and Where to File

With the Secretary of the DOLE within 10 days
after receipt of denial/cancellation/revocation
order.
The decision of the DOLE Secretary shall be

final and executory unless a motion for
reconsideration is filled within 10 days after
receipt of the decision. No second motion for
reconsideration shall be allowed [Sec. 16, D.O.
No. 186-17].
7. Penalty
Fines
Working without valid AEP: P10,000 for
every year or fraction thereof.
Employing aliens without valid AEP:

P10,000 for every year or fraction thereof.
Failure to pay penalty: not allowed to employ

foreign national for any position [Sec. 17, D.O.
No. 186-17].
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III. LABOR STANDARDS current labor dispute or because of any

unfair labor practice if he has not
obtained any other substantially
Labor standards refers to the minimum equivalent and regular employment
requirements prescribed by existing laws, rules [Art. 219(g)]
and regulations relating to wages, hours of e. The term shall not be limited to the
work, cost-of-living allowance and other employees of a particular employer,
monetary and welfare benefits, including unless the Code so explicitly states
[Art. 219(g)]
occupational, safety and health standards
[Maternity Children’s Hospital v. Secretary of Person
Labor, G.R. 78909 (1989)]. An individual, partnership, association,
corporation, business trust, legal
A. General Provisions representatives, or any organized group of
persons [Art. 97(a); Art. 173(h)]
1. Employer-Employee Relationship
Both a Question of Law and of Fact
Employer The existence or absence of EER is a question
Any person acting directly or indirectly in the of law and of fact, each in its defined sense.
interest of an employer in relation to an Ultimately, it is a question of fact because
employee [Art. 97(b); Art. 219(f)] whether one exists or not is dependent upon
the facts of each case [SSS v. CA and Ayalde,
Any person, natural or juridical, employing the G.R. No. 100388 (2000)]. However, it is a
services of the employee [Art. 173(f)] question of law because it cannot be made the
subject of agreement [Tabas et.al. v. California
Includes: Manufacturing Co., et. al., G.R. No. 80680
a. The government; (1989)]. Hence, the characterization of the law
b. All its branches, subdivisions and prevails over that in the contract.
instrumentalities;
c. All government-owned or controlled 2. Test to Determine the Existence of
corporations and institutions; an Employer-Employee Relationship
d. All nonprofit private institutions, or
organizations [Art. 97(b)]. a. Four-Fold Test
Does not include any labor organization or any Elements of an EER

of its officers or agents except when acting as 1. Selection and engagement of the
employer [Art. 219(f)] employee;
2. Payment of wages;
Employee 3. Power of dismissal; and
Any individual employed by an employer [Art. 4. Employer’s power to control the
97(c); Art. 219(g)] employee’s conduct with respect to the
means and methods by which the work
Any person compulsorily covered by the GSIS is to be accomplished [Brotherhood
under C.A. No. 168, as amended [Art. 173(g)] Labor Unity Movement of the PH v.
Zamora, G.R. No. 48645 (1987)].
Includes:
a. The members of the AFP Payment of Wages
b. Any person employed as casual, The following are not conclusive of the
emergency, temporary, substitute or absence of an EER:
contractual 1. That a worker was not reported as an
c. Any person compulsorily covered by employee to SSS;
the SSS under R.A. No. 1161, as 2. That a worker’s name does not appear
amended [Art. 173(g)] in the payrolls and pay envelope
d. Any individual whose work has ceased records submitted by the employer.
as a result of or in connection with any
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Note: For a payroll to be utilized to disprove the admitted. For, if only documentary evidence
EER, it must contain a true and complete list of would be required to show that relationship, no
employees [Southeast East International scheming employer would ever be brought
Rattan v Coming, G.R. No. 186621 (2014)]. before the bar of justice, as no employer would
wish to come out with any trace of the illegality
Power to Control he has authored considering that it should take
This is the most important element when much weightier proof to invalidate a written
determining the existence of an EER. It instrument [Tenazas, et al., v. R. Villegas Taxi
pertains not only to results, but also to the Transport, G.R. No. 192998 (2014)].
means and methods to attain those results
[Lirio v. Genovia, G.R. No. 169757 (2011)]. Burden of Proof on Alleged Employee
The onus probandi rests on the employer to
The “existence” of the right to control is prove that its dismissal was for a valid cause.
sufficient for the element to be present. There However, before a case for illegal dismissal
need not be “actual exercise” of the right can prosper, an EER must first be established.
[Zanotte Shoes v. NLRC, G.R. No. 100665 It is incumbent upon the employee to prove the
(1995)]. EER by substantial evidence [Javier v. Fly Ace
Corporation, G.R. No. 192558 (2012)].
Not every form of control will create an EER.
No EER exists when control is in the form of Doctrine of Piercing the Corporate Veil
rules that merely serve as guidelines towards When this doctrine is applied, an employee can
the achievement of results without dictating the be said to have an EER with the corporation
means or methods to attain them. EER exists that another corporation (who the employee
when control is in the form of rules that fix the “works” for) is merely an alter ego of. It applies
methodology to attain a specified result and in these 3 basic scenarios:
bind the worker to use such [Insular Life 1. Defeat of public convenience as when
Assurance Co, LTD v. NLRC, G.R. No. 84484 corporate fiction is used as a vehicle to
(1989)]. evade existing obligations;
2. Fraud cases as when the corporate
b. Economic Dependence Test entity is used to justify a wrong, protect
fraud, or defend a crime;
Two-Tiered Approach 3. Alter ego cases, where a corporation is
1. Control Test (refer to the Four-Fold a farce, as it is a mere alter ego or
Test) business conduit of a person, or where
2. Underlying economic realities within the corporation is so organized and
the activity or relationship [Sevilla v. controlled and its affairs are so
CA, G.R. Nos. L-41182-3 (1988)] conducted as to make it merely an
instrumentality, agency, conduit or
Underlying Economic Realities adjunct of another corporation
In determining the existence of an EER, these [Maricalum Mining Corp. v. Florentino,
realities must be examined, taking into G.R. No. 221813 (2018)].
consideration the totality of circumstances
surrounding the true nature of the parties’ Note: The corporate character is not fully
relationship. The benchmark “reality” for the abrogated. It continues for other legitimate
existence of an EER is economic dependence objectives. However, in certain circumstances,
of the worker on his employer. “Economic it may be pierced in order to promote
dependence” is whether the worker is substantial justice. Such fiction of law cannot
dependent on the employer for his continued be invoked to further ends subversive of justice
employment [Orozco v. CA, G.R. No. 155207 [Pamplona Plantation Co v. Tinghil, G.R. No.
(2008)]. 159121 (2005)].
Competent and Relevant Evidence Doctrine Illustrated in Jurisprudence

Needed to Prove EER In Sarona v. NLRC [G.R. No. 185280 (2012)],
No particular form of evidence is required to the doctrine was applied. It involved the illegal
prove the EER. Any competent and relevant dismissal of Sarona, a security guard who first
evidence to prove the relationship may be worked at Sceptre but was subsequently
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assigned to Royale, where he was illegally e. Members of the family of the employer
dismissed. In the computation of his separation who are dependent on him for support
pay, Sarona prayed that the corporate veil of [Art. 82];
Royale be pierced as it was a mere f. Domestic workers or kasambahay [Art.
continuation of Sceptre; hence, his separation 141, RA 10361] (exception to the
pay should be computed from the time he was exception: Assignment in a
hired by Sceptre. This was granted. Commercial, Industrial or Agricultural
Circumstances indicated that Spectre and Enterprise)
Royale were one and the same (same office, g. Persons in the personal service of
same officers, same person exercising control another
and supervision over employees of both h. Workers who are paid by result as
companies), and that Sarona’s transfer to determined by DOLE regulation [Art.
Royale was done in bad faith. As such, Sarona 82]
could be said to have an EER with Sceptre.
Thus, his separation pay was to be computed a. Government Employees
from the time he was hired by Sceptre.
The terms and conditions of employment of all
government employees, including employees
3. Employee Distinguished from an of GOCCs, are governed by the Civil Service
Independent Contractor rules and regulations, not by the Labor Code
[Art. 291].
Distinguished From Independent
Contractors However, not all GOCCs are governed by the
No EER exists between independent Civil Service Rules; only those created by
contractors and their principals; their contracts original charter are governed by the Civil
are governed by the law on contracts and other Service rules:
applicable law. Employees under fixed-term
contracts cannot be independent contractors “Following Sec. 2(i) Art. IX-B of 1987 Phil.
because in fixed-term contracts, an EER exists Constitution, the test in determining whether a
[Fuji Television Network, Inc. v. Espiritu, G.R. government owned corporation is subject to
No. 204944-45 (2014)]. the Labor Code or the Civil Service law is
finding out what created it – if it is created by a
B. Conditions of Employment special charter, then, Civil Service Law applies,
if it is created by the General Corporation Law,
1. Covered Employees/Workers then the Labor Code applies” [PNOC Energy
Development Corp. v. NLRC, G.R. No. 79182
Employees Exempted or Not Covered (1991)].
General Rule: Title I: Working Conditions and
Rest Periods shall apply to employees in all b. Managerial Employees
establishments and undertakings whether for
profit or not [Art. 82]. Two Definitions of “Managerial
Employee” in the Labor Code:
Note: Article 82 applies to the whole of Title I. 1. One whose primary duty consists of the
This includes Service Incentive Leaves, which management of the establishment in
will be discussed in a separate section. which they are employed or of a
department or subdivision thereof and
Exceptions (i.e. those NOT covered by Title I): to other officers or members of the
a. Government employees [Art. 82; Art. managerial staff [Art. 82].
76] (exception to the exception: 2. One who is vested with the powers or
Employees of GOCCs created under prerogatives to lay down and execute
the Corporation Code) management policies and/or to hire,
b. Managerial Employees [Art. 82] transfer, suspend, lay off, recall,
c. Members of the managerial staff [Art. discharge, assign or discipline
82] employees [Art. 219(m)].
d. Field Personnel [Art. 82]
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Characteristics of Managerial Employees 3.
[Sec. 2(b), Rule I, Book III, IRR] a. Regularly and directly assist a
Managerial employees are exempted from the proprietor or a managerial
coverage of Book III Articles 83 through 96 if employee whose primary duty
they meet all of the following conditions: consists of the management of
1. Their primary duty consists of the the establishment in which he
management of the establishment in is employed or subdivision
which they are employed or of a thereof; OR
department or subdivision thereof. b. Execute under general
2. They customarily and regularly direct supervision work along
the work of two or more employees specialized or technical lines
therein. requiring special training,
3. They have the authority to hire or fire experience, or knowledge; OR
employees of lower rank; or their c. Execute, under general
suggestions and recommendations supervision, special
as to hiring and firing and as to the assignments and tasks;
promotion or any other change of 4. Do not devote more than 20% of their
status of other employees, are given hours worked in a work week to
particular weight. activities which are not directly and
Managerial employees and managerial staff closely related to the performance of
are determined by their job description and not the work described in paragraphs (1),
their job title [Peñarada v. Baganga Plywood (2) and (3) above.
Corp., G.R. No. 159577 (2006)].
Effective Recommendatory Power
c. Members of the Managerial Staff Supervisory employees are those who, in the
(Supervisory Employees) interest of the employer, effectively
recommend such managerial actions and the
Definition exercise of such authority is not merely
Supervisory employees are those who, in the routinary or clerical in nature but requires the
interest of the employer, effectively use of independent judgment [Art. 219(m)].
recommend such managerial actions if the
exercise of such authority is not merely d. Field Personnel
routinary or clerical in nature but requires the
use of independent judgment [Art. 219(m)]. Field Personnel are Non-Agricultural
Employees:
Art. 82 also includes managerial staff 1. Who regularly perform their duties
(supervisory employees) in the definition of away from the principal or place of
managerial employees. The definition in Art. 82 business or branch office of the
covers more people than that in Art. 219(m). In employer; and
effect, managerial employees in Art. 82 2. Whose actual hours of work in the field
includes supervisors, but Art. 219(m) does not, cannot be determined with reasonable
for purposes of the right to self-organization. certainty [Art. 82].
Managerial Staff is Included as They are Legal Test: Control and supervision of
Considered Managerial Employees as employer
Well [Sec. 2(c), Rule I, Book III, IRR] In order to determine whether an employee is
Officers or members of a managerial staff are a field employee, it is also necessary to
also exempted if they perform the following ascertain if actual hours of work in the field can
duties and responsibilities: be determined with reasonable certainty by the
1. Their primary duty consists of the employer. In so doing, an inquiry must be made
performance of work directly related to as to whether or not the employee’s time and
management policies of their performance are constantly supervised by the
employer; employer [Far East Agricultural Supply v.
2. Customarily and regularly exercise Lebatique, G.R. No. 162813 (2007)].
discretion and independent judgment;
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Although the fishermen perform non- personal comfort and enjoyment of the
agricultural work away from petitioner’s employer’s family [Azucena].
business offices, the fact remains that
throughout the duration of their work they are Thus, it has been held that the following
under the effective control and supervision of personnel are not domestic employees:
petitioner through the vessel’s patron or 1. House-help or laundry-women working
master. Hence, the fishermen are not “field in staffhouses of a company, as well as
personnel” [Mercidar Fishing Corporation v. drivers, houseboys, or gardeners
NLRC, G.R. No. 112574 (1998)]. exclusively working in the company,
the staffhouses and its premises [Apex
e. Dependent Family Members Mining Company v. NLRC, G.R. No.
94951 (1991)]
Workers who are family members of the 2. House-help doing chores for the
employer, and who are dependent on him for employer's family, while also fulfilling
their support, are outside the coverage of this tasks connected with the employer's
Title on working conditions and rest periods business (bakery) such as cooking,
[Art. 82]. filling orders, baking orders, and other
clerical work [Fernando Co v. Vargas,
f. Domestic Helpers (Workers) G.R. No. 195167 (2011)]
Definition g. Persons in Personal Service of

Domestic worker or “Kasambahay” refers to Another
any person engaged in domestic work within
an employment relationship such as but not Persons in the personal service of another are
limited to the following: not covered by Title I: Working Conditions and
1. general househelp, Rest Periods if they:
2. nursemaid or “yaya”, 1. Perform such services in the
3. cook, employer’s home which are usually
4. gardener, or necessary or desirable for the
5. laundry person maintenance and enjoyment thereof; or
2. Minister to the personal comfort,
"Domestic work" refers to work performed in or convenience or safety of the employer
for a household [Sec. 3(d), IRR of RA10361]. as well as the members of his
employer’s household [Sec. 2 (d), Rule
"Household" refers to the immediate members I, Book III, IRR].
of the family or the occupants of the house who
are directly and regularly provided services by h. Workers Paid by Result (piece-
the kasambahay [Sec. 3(g), IRR of RA 10361]. workers)
The definition of “Kasambahay” excludes: Definition

1. Any person who performs domestic Workers who are paid by results are those
work only occasionally or sporadically whose output rates are in accordance with the
and not on an occupational basis standards prescribed under Sec. 8, Rule VII,
2. Children who are under foster family Book Three of these regulations, or where such
arrangement, and are provided access rates have been fixed by the Secretary of Labor
to education and given an allowance and Employment in accordance with the
incidental to education [Sec. 4(d), Art. aforesaid Section.
1, RA 10361]
3. Service providers These include those who are paid on piece
4. Family drivers [Sec. 2 of the IRR, RA work, “takay,” “pakiao” or task basis, and other
10361] nontime work [Sec. 2(e), Rule I, Book III, IRR].
Workers under piece-rate employment have no
Exclusivity of Function Required fixed salaries and their compensation is
Note that the definition contemplates a computed on the basis of accomplished tasks.
domestic helper who is employed in the That their work output might have been
employer’s home to minister exclusively to the
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affected by the change in their specific work
assignments does not necessarily imply that Benefit Unsupervised Supervised
any resulting reduction in pay is tantamount to
constructive dismissal. It is the prerogative of 13th
the management to change their assignments month pay
or to transfer them [Best Wear Garments v. De [Revised
Lemos and Ocubillo, G.R. No. 191281 (2012)].
Guidelines Yes, provided the worker has
Workers paid by results may be grouped into
two: 1) those whose time and performance is on the rendered at least 1 month of
supervised by the employer and 2) those Implement service during the calendar
whose time and performance is unsupervised ation of the year
by the employer [Azucena, p. 289]. 13th Month
Pay Law
Must be Unsupervised to be Excluded (1987)]
Those who are engaged on task basis, purely
commission basis, or those who are paid a Other No Yes
fixed amount for performing work irrespective statutory
of the time consumed in the performance benefits
thereof are excluded from receiving benefits
such as nightime pay, holiday pay, service [Labor
incentive leave, inter alia, provided their time Congress
and performance is unsupervised by the of the
employer [Labor Congress of the Philippines v. Philippine
NLRC, G.R. No. 123938 (1998)]. s v. NLRC,
G.R. No.
Rule on Overtime Pay 123938
Workers who are paid by results, if their output
rates are in accordance with the standards (1998)]
prescribed under Sec. 8, Rule VII, Book III, of
those regulations, or where such rates have Not Determinative of EER
been fixed by the Secretary of Labor in Payment by result is not determinative of
accordance with the aforesaid section, are not employer-employee relationship. It is a method
entitled to receive overtime pay [Sec. 2(e), of compensation and does not define the
Rule I; Labor Congress of the Philippines v. essence of the relation. It is a method of
NLRC, G.R. No. 123938 (1998)]. computing compensation, not a basis for
determining the existence or absence of
Summary of Benefits Payable employer-employee relationship [Tan v.
Lagrama, G.R. No. 111042 (1999)].
Benefit Unsupervised Supervised
2. Hours of Work
Applicable
statutory Principles in Determining Hours Worked
Yes
minimum Hours worked shall include:
wage a. All time during which an employee is
required to be on duty or to be at a
Night prescribed workplace; AND
No Yes
differential b. All time during which an employee is
suffered or permitted to work [Art. 84].
Service
incentive No Yes General Principles in Determining if Time
leave is Considered as Hours Worked
All hours are hours worked which the employee
Holiday
Yes is required to give their employer, regardless of
pay whether or not such hours are spent in
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productive labor or involve physical or mental However, where the exigencies of the service
exertion. require that they work for six (6) days or forty-
eight (48) hours, they shall be entitled to an
An employee need not leave the premises of additional compensation of at least thirty
the workplace in order that their rest period percent (30%) of their regular wage for work on
shall not be counted, it being enough that they the sixth day.
stop working, may rest completely and may
leave their workplace to go elsewhere, whether “Health personnel" shall include:
within or outside the premises of their 1. Resident physicians, nurses,
workplace [Sec. 4(b), Rule I, Book III, IRR]. nutritionists, dietitians, pharmacists,
social workers, laboratory technicians,
If the work performed was necessary, or it paramedical technicians,
benefited the employer, or the employee could psychologists, midwives, attendants
not abandon his work at the end of his normal and all other hospital or clinic
working hours because he had no personnel [Art. 83].
replacement, all time spent for such work shall 2. Medical secretaries [Azucena]
be considered as hours worked, if the work was
with the knowledge of his employer or Hours Worked
immediate supervisor [Sec. 4(c), Rule I, Book 1. all time during which an employee is
III, IRR]. required to be on duty or to be at a
prescribed workplace; and
The time during which an employee is inactive 2. all time during which an employee is
by reason of interruptions in his work beyond suffered or permitted to work.
his control shall be considered working time
either: Rest periods of short duration during working
a. If the imminence of the resumption of hours shall be counted as hours worked [Art.
work requires the employee’s presence 84].
at the place of work, or
b. If the interval is too brief to be utilized Non-Compensable Hours; When
effectively and gainfully in the Compensable
employee’s own interest [Sec. 4, Rule
I, Book III, IRR]. Idle Time
The idle time that an employee may spend
a. Normal Hours of Work resting and dining at which he may leave the
spot or place of work though not the premises
General Rule: 8-hour labor law of his employer, is not counted as working time
The normal hours of work of any employee only where the work is broken or is not
shall not exceed eight (8) hours a day [Art. 83]. continuous [National Development Co. v. CIR,
Note: Art. 83 of the Labor Code only sets a G.R. No. L-15422 (1962)].
maximum number of hours as "normal hours of
work" but did not prohibit work of less than A laborer need not leave the premises of the
eight hours [Legend Hotel v. Realuyo, G.R. factory, shop or boat in order that his period of
153511 (2012)]. rest shall not be counted, it being enough that
he "cease to work", may rest completely and
Exception to 8-Hour Law: Work hours of leave or may leave at his will the spot where he
health personnel actually stays while working, to go somewhere
Health personnel in: else, whether within or outside the premises of
1. Cities and municipalities with a said factory, shop or boat. If these requisites
population of at least one million are complied with, the period of such rest shall
(1,000,000) OR not be counted [Luzon Stevedoring Co. v.
2. Hospitals and clinics with a bed Luzon Marine Department Union, G.R. No. L-
capacity of at least one hundred (100) 9265 (1957)].
Shall hold regular office hours for eight (8)

hours a day, for five (5) days a week, exclusive
of time for meals.
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Travel Time hours worked provided that such is
Travel time [Department of Labor Manual] stipulated in the CBA [Department of
Travel from home to work – An employee who Labor Manual, Sec. 4323.03].
travels from home before his regular workday 3. Attendance in hearings in cases filed
and returns to his home at the end of the by the employee is NOT compensable
workday is engaged in ordinary home-to-work hours worked.
travel which is NOT considered hours worked. 4. Participation in strikes is NOT
compensable working time.
Except:
1. When called to travel during Attendance in lectures, meetings, and training
emergency; periods must necessarily be beneficial to the
2. When travel is done through a employer [Sec. 6(c), Rule I, IRR].
conveyance furnished by the employer;
3. Travel is done under vexing and Commuting Time
dangerous circumstances; Employees performing tasks during their
4. Travel is done under the supervision commute which are not merely incidental to the
and control of the employer. employee’s job, and are primarily for the
benefit of the employer (such as a company
Travel that is all in the day’s work – Time driver performing a carpool service for co-
spent by an employee in travel from jobsite to workers according to an agreement with the
jobsite during the workday, must be counted as company), are entitled to overtime pay [Hilario
hours worked. Where an employee is required Rada v. NLRC, G.R. No. 96078 (1992)].
to report at a meeting place to receive
instructions or to perform other work there, the Waiting Time
travel from the designated place to the
workplace is part of the day’s work. Rest period – short duration or “coffee
break”
Travel away from home – Travel that keeps 1. Rest periods of short duration during
an employee away from home overnight is working hours shall be counted as
travel away from home. Travel away from hours worked [par. 2, Art. 84]
home is work time when it cuts across the 2. Rest periods or coffee breaks running
employee’s workday. The time is hours worked from five (5) to twenty (20) minutes
not only on regular working hours but also shall be considered as compensable
during the corresponding hours on non- working time [par. 2, Sec. 7, Rule I,
working days. Book III, IRR]
Lectures, Meetings, Trainings On Call

Attendance at lectures, meetings, training Compensable work time, if employee is:
programs, and other similar activities shall not 1. Required to remain on call in the
be counted as working time if all of the following employer’s premises or so close
conditions are met: thereto
1. Attendance is outside of the 2. That he cannot use the time effectively
employee’s regular working hours; and gainfully for his own purpose shall
2. Attendance is in fact voluntary; and be considered as working while on call
3. The employee does not perform any
productive work during such Note: An employee who is not required to leave
attendance [Sec. 6, Rule I, Book III, word at his home or with company officials
IRR]. where he may be reached is NOT working
while on call [Sec. 5 (b), Rule I, Book III, IRR].
Notes:
1. Attendance in lectures, meetings, and
training periods sanctioned or required
by the employer are considered hours
worked.
2. Attendance in CBA negotiations or
grievance meetings is compensable
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Inactive Due to Work Interruptions Synthesis of the Rules
The time during which an employee is inactive General Rule: Meal periods are NOT
by reason of interruptions in his work beyond compensable.
his control shall be considered working time
either: Exception:
1. If the imminence of the resumption of It becomes compensable:
work requires the employee's presence 1. Where the lunch period or meal time is
at the place of work OR predominantly spent for the employer’s
2. If the interval is too brief to be utilized benefit [Azucena citing 31 Am. Jur.
effectively and gainfully in the 881; Duka, Labor Laws and Social
employee's own interest [Sec. 4 (d), Legislation]
Rule I, Book III, IRR]. 2. Meal periods of 1 hour are deemed
compensable when the employee is on
b. Meal Periods continuous shift [National Development
Co. v. CIR, G.R. No. L-15422 (1962)]
General Rule: Subject to such regulations as 3. Shortened meal period of less than 1
the Secretary of Labor may prescribe, it shall hour (say, 30 minutes) must be
be the duty of every employer to give his compensable [Sec. 7, Rule I, Book III,
employees not less than sixty (60) minutes IRR]
time-off for their regular meals [Art. 85].
Note: To shorten meal time to less than 20
Exceptions: Employees may be given a meal minutes is not allowed. If the so-called meal
period of not less than twenty (20) minutes time is less than 20 minutes, it becomes only a
provided that such shorter meal period is REST PERIOD and is considered working
credited as compensable hours worked of the time.
employee:
1. Where the work is non-manual work in Exception to the Exception: Shortened meal
nature or does not involve strenuous breaks upon the employees’ request – NOT
physical exertion; compensable.
2. Where the establishment regularly
operates not less than sixteen (16) The employees themselves may request that
hours a day; the meal period be shortened so that they can
3. In case of actual or impending leave work earlier than the previously
emergencies or there is urgent work to established schedule [Drilon: Letter to Kodak
be performed on machineries, Philippines, Nov. 27, 1989; Cilindro: BWC-
equipment or installations to avoid WHSD, Opinion No. 197, s. 1998].
serious loss which the employer would
otherwise suffer; OR Conditions for Shortened Meal Breaks
4. Where the work is necessary to Upon Employee’s Request
prevent serious loss of perishable 1. The employees voluntarily agree in
goods [par. 1, Sec. 1, Rule I, Book III, writing to a shortened meal period of 30
IRR]. minutes and are willing to waive the
overtime pay for such shortened meal
The eight-hour work period does not include period;
the meal break. Employees are not prohibited 2. There will be no diminution whatsoever
from going out of the premises as long as they in the salary and other fringe benefits
return to their posts on time. Nowhere in the of the employees existing before the
law may it be inferred that employees must effectivity of the shortened meal period;
take their meals within the company premises 3. The work of the employees does not
[Philippine Airlines v. NLRC, G.R. No. 132805 involve strenuous physical exertion
(1999)]. and they are provided with adequate
“coffee breaks” in the morning and
afternoon;
4. The value of the benefits derived by the
employees from the proposed work
arrangement is equal to or
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commensurate with the compensation between 10PM and 6AM, he/she shall be paid
due them for the shortened meal period P110 per hour worked during such time
as well as the overtime pay for 30 intervals.
minutes as determined by the
employees concerned; Coverage
5. The overtime pay of the employees will Aside from those enumerated under Art. 82 as
become due and demandable if ever excluded from Title I: Working Conditions and
they are permitted or made beyond Rest Periods, those employed in retail and
4:30pm; and service establishments regularly employing not
6. The effectivity of the proposed working more than five (5) workers are also NOT
time arrangement shall be of temporary entitled to Night Shift differential [Sec. 1, Rule
duration as determined by the II, Book III, IRR].
Secretary of Labor [BWC-WHSD
Opinion No. 197, s. 1998]. Rest Days (night-off)
Night shift employees are entitled to a weekly
Power Interruptions or Brownouts night-off (usually Saturday evening) or a
Brownouts of short duration, but not exceeding weekly rest period of 24 hours beginning at the
20 minutes, shall be treated as hours worked, start of the night shift [See also Art. 91].
whether used productively by the employees or
not. Work on Special Days
Night shift employees are also entitled to the
If they last more than 20 minutes, the time premium pay on special days and holidays.
may not be treated as hours worked if: These days are reckoned as calendar days
1. the employees can leave their which start at midnight and end at the following
workplace or go elsewhere whether midnight. The premium pay for the night shift
within or without the work premises; also starts or ends at midnight. However, the
OR employment contract, company policy or CBA
2. the employees can use the time may provide that in the case of night shift
effectively for their own interest. workers, days—including special days and
regular holidays—shall begin on the night
In this case, the employer may extend the before a calendar day [Chan, Pre-Week
working hours beyond the regular schedule on Guidelines].
that day to compensate for the loss of
productive man-hours without being liable for d. Overtime Work
overtime pay [Policy Instruction No. 36, May
22, 1978]. Overtime compensation is additional pay for
service or work rendered or performed in
Note: The time during which an employee is excess of eight hours a day by employees or
inactive by reason of work interruptions beyond laborers covered by the Eight-hour Labor Law
his control is considered working time, either if [National Shipyard and Steel Corp. v. CIR,
the imminence of the resumption of work G.R. No. L-17068 (1961)].
requires the employee’s presence at the place
of work or if the interval is too brief to be utilized Rationale: There can be no other reason than
effectively and gainfully in the employee’s own that he is made to work longer than what is
interest [Sec. 4(d), Rule I, Book III, IRR]. commensurate with his agreed compensation
for the statutorily fixed or voluntary agreed
c. Night-Shift Differential hours of labor he is supposed to do [PNB v.
PEMA, G.R. No. L-30279 (1982)].
Definition
Night Shift Differential is the additional Overtime on Ordinary Working Day
compensation of 10% of an employee’s regular Work may be performed beyond eight hours a
wage for each hour of work performed between day, provided that the employee is paid an
10pm and 6am [Art. 86]. additional compensation equivalent to his
regular wage plus at least 25% thereof [Art. 87].
Illustration: If an employee has a regular wage
of P100 for each hour of work performed
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Overtime Work on Holiday or Rest Day only when it is his established rest day [Art.
Work performed beyond eight hours on a 93(a)].
holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first OTSRD = Hourly Wage x 169% x number of
eight hours on a holiday or rest day plus at least hours of OT work
30% thereof [Art. 87].
Note: 169% was derived by adding 39% (which
Computation of Additional Compensation is 30% of 130 or 1.3x.3 to 130%
Base of Computation: Regular wage – means
regular base pay. Emergency Overtime
Any employee may be required by the
It includes the cash wage only without employer to perform overtime work in any of
deduction on account of facilities provided by the following cases:
the employer [Art. 90]. 1. When the country is at war or when any
other national or local emergency has
It excludes money received in different been declared by the National
concepts, such as Christmas bonus and other Assembly or the Chief Executive;
fringe benefits [Bisig ng Manggagawa ng 2. When it is necessary to prevent loss of
Philippine Refining Co. v. Philippine Refining life or property or in case of imminent
Co., G.R. L-27761 (1981)]. danger to public safety due to an actual
or impending emergency in the locality
BUT when the overtime work was performed caused by serious accidents, fire,
on the employee’s rest day or on special days flood, typhoon, earthquake, epidemic,
or regular holidays (Art. 93 and 94), the or other disaster or calamity;
premium pay, must be included in the 3. When there is urgent work to be
computation of the overtime pay [See: p. 19 of performed on machines, installations,
Handbook on Workers’ Statutory Monetary or equipment, in order to avoid serious
Benefits, issued by the Bureau of Working loss or damage to the employer or
Conditions, 2006]. some other cause of similar nature;
4. When the work is necessary to prevent
Overtime on a Regular Day (OTRD) loss or damage to perishable goods;
Work may be performed beyond eight (8) hours and
a day provided that the employee is paid for the 5. Where the completion or continuation
overtime work, an additional compensation of the work started before the eighth
equivalent to his regular wage plus at least hour is necessary to prevent serious
twenty-five percent (25%) thereof [Art. 87]. obstruction or prejudice to the business
or operations of the employer [Art. 89];
OTRD = Hourly wage x 125% x number of 6. Where overtime work is necessary to
hours of OT work avail of favorable weather or
environmental conditions where
Work on Scheduled Rest Day (WRD) performance or quality of work is
Work performed on a rest day shall be paid an dependent thereon [added by Rule 1,
additional compensation equivalent to 30% of Sec. 10].
the regular wage [Art. 93].
Overtime Pay Does Not Preclude Night
WRD = Regular Wage x 130% Differential Pay
When the tour of duty of a laborer falls at
Overtime on Scheduled Rest Day nighttime [between 10:00pm and 6:00am], the
(OTSRD) receipt of overtime pay will not preclude the
Where an employee is made or permitted to right to night differential pay. The latter is
work on his scheduled rest day, he shall be payment for work done during the night, while
paid an additional compensation of at least the other is payment for the excess of the
thirty percent (30%) of his regular wage. An regular eight-hour work [Naric v. Naric Workers
employee shall be entitled to such additional Union, G.R. No. L-12075 (1959)].
compensation for work performed on Sunday
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Synthesis of Rules employee to go on leave on some other
1. An employer cannot compel an day of the week shall NOT exempt the
employee to work overtime employer from paying the additional
Exception: Emergency overtime compensation required in this Chapter
work as provided for in Art. 89 [Art. 88].
2. Additional compensation is Offsetting work on a regular day with work

demandable only if the employer had rendered on a holiday or rest day is prohibited
knowledge and consented to the because such deprives the employee of
overtime work rendered by the additional pay or premium [Lagatic v. NLRC,
employee. G.R. No. 121004 (1998)].
Exception: Express approval by a
superior NOT a requisite to make e. Compressed Work Week, Flexible
overtime compensable: Work Arrangement Alternative Work
a. If the work performed is Arrangements, Telecommuting
necessary, or that it benefited Program
the company; or
b. That the employee could not 1. Compressed Work Week
abandon his work at the end of
his eight-hour work because A CWW refers to one where the normal
there was no substitute ready to workweek is reduced to less than 6 days but
take his place [Sec. 4(c), Rule I; the total number of work hours of 48 hours per
Manila Railroad Co. v. CIR, G.R. week shall remain. Under the CWW scheme,
L-4614 (1952)].
the normal workday goes beyond eight hours
but does not exceed 12 hours, without the
Note: However, the Court has also ruled corresponding overtime premium [DOLE
that a claim for overtime pay is NOT Advisory No. 04, Series of 2010].
justified in the absence of a written
authority to render overtime after office In excess of such, the employer is obliged to
hours during Sundays and holidays [Global pay the worker the overtime premium.
Incorporated v. Atienza, G.R. L-51612-13
(1986)].
Conditions for CWW
1. The CWW scheme is undertaken as a
Daily time records cannot prove the
result of an express and voluntary
performance of overtime work if the same
agreement of majority of the covered
had no prior authorization by the
employees or their duly authorized
management [Robina Farms Cebu/
representatives. This agreement may
Universal Robina Corp. v. Villa, G.R. No.
be expressed through collective
175869 (2016)].
bargaining or other legitimate
workplace mechanisms of participation
3. Compensation for work rendered in
such as labor management councils,
excess of the 8 normal working hours
employee assemblies or referenda.
in a day:
2. In firms using substances, chemicals
a. For ordinary days, additional 25%
and processes or operating under
of the basic hourly rate.
conditions where there are airborne
b. For rest day/special day/holiday,
contaminants, human carcinogens or
additional 30% of the basic hourly
noise prolonged exposure to which
rate.
may pose hazards to employees’
health and safety, there must be a
4. A given day is considered an ordinary
certification from an accredited health
day, unless it is a rest day.
and safety organization or practitioner
from the firm’s safety committee that
5. Undertime does NOT offset overtime.
work beyond eight hours is within
Undertime work on any particular day
threshold limits or tolerable levels of
shall not be offset by overtime work on
exposure, as set in the OSHS.
any other day. Permission given to the
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3. The employer shall notify DOLE, expenses; longer weekends etc) [Bisig
through the Regional Office having Manggagawa sa Tryco v. NLRC, et al., G.R.
jurisdiction over the workplace, of the No. 151309 (2008)].
adoption of the CWW scheme. The
notice shall be in DOLE CWW Report Built-In Overtime
Form attached to this Advisory [DOLE
Advisory No. 02-04]. Composite or Package Pay Not Per Se
Illegal; Conditions for Validity
Effects of CWW Composite or “package pay” or “all-inclusive
1. Unless there is a more favorable salary” is an arrangement where the
practice existing in the firm, work employee’s salary includes the overtime pay.
beyond eight hours will not be In other words, the overtime pay is “built-in”.
compensable by overtime premium Such arrangement is valid provided that:
provided the total number of hours 1. There is a clear written agreement
worked per day shall not exceed twelve knowingly and freely entered by the
(12) hours. In any case, any work employee; and
performed beyond 12 hours a day or 48 2. The mathematical result shows that the
hours a week shall be subject to agreed legal wage rate and the
overtime premium. overtime pay, computed separately,
2. Consistent with Art. 85, employees are equal to or higher than the separate
under a CWW scheme are entitled to amounts legally due [Damasco v.
meal periods of not less than 60 NLRC, G.R. 115755 (2000)].
minutes. There shall be no impairment
of the right of the employees to rest 2. Flexible Work Arrangement Alternative
days as well as to holiday pay, rest day Work Arrangements
pay or leaves in accordance with law or
applicable collective bargaining Flexible Work Schedule for Solo Parents
agreement or company practice. “Flexible work schedule” is the right granted to
3. Adoption of the CWW scheme shall in a solo parent to vary his/her arrival and
no case result in diminution of existing departure time without affecting core work
benefits. Reversion to the normal eight- hours as defined by the employer [Sec. 3(e),
hour workday shall not constitute a RA 8972].
diminution of benefits.
Grant of Flexible Work Schedule
Rationale: Although the right to overtime pay The employer shall provide for a flexible
cannot be waived as per Cruz v. Yee Sing working schedule for solo parents: Provided,
[G.R. No. L-12046 (1959)], D.O. No. 21 That the same shall not affect individual and
sanctions the waiver of overtime pay in company productivity: Provided, further, That
consideration of the benefits that the any employer may request exemption from the
employees will derive from the adoption of a above requirements from the DOLE on certain
compressed workweek scheme, thus the meritorious grounds [Sec. 6, RA 8972].
compressed workweek scheme was originally
conceived for establishments wishing to save The employer shall provide a flexible work
on energy costs, promote greater work schedule for solo parents: Provided,
efficiency and lower the rate of employee 1. That the same shall not affect
absenteeism, among others. individual and company productivity:
2. That any employer may request
Thus, under this scheme, the generally exemption from the above
observed workweek of six (6) days is requirements from the DOLE on certain
shortened to five (5) days, but prolonging the meritorious grounds [Sec. 6, RA 8972].
working hours from Monday to Friday without
the employer being obliged for pay overtime
premium compensation for work performed in
excess of eight (8) hours on weekdays, in
exchange for the benefits that will accrue to the
employees (e.g. savings on meal and snack
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(3) Telecommuting Program with colleagues on a regular basis, and allowing
access to company information.
Telecommuting Act [RA 11165]
Section 3. Telecommuting Defined. – As used in Section 6. Data Protection. – The employer shall be
this Act, the term "telecommuting" refers to a work responsible for taking the appropriate measures to
arrangement that allows an employee in the private ensure the protection of data used and processed by
sector to work from an alternative workplace with the the telecommuting employee for professional
use of telecommunication and/or computer purposes. The employer shall inform the
technologies. telecommuting employee of all relevant laws, and
company rules concerning data protection. The
telecommuting employee shall ensure that
confidential and proprietary information are
Section 4. Telecommuting Program. – An employer protected at all times.
in the private sector may offer a telecommuting
program to its employees on a voluntary basis, and For this purpose, the provisions of the Data Privacy
upon such terms and conditions as they may Act of 2012 shall have suppletory effect.
mutually agree upon: Provided, That such terms and
conditions shall not be less than the minimum labor
standards set by law, and shall include compensable
work hours, minimum number of work hours, Section 7. Administration. – The parties to a
overtime, rest days, and entitlement to leave telecommuting work arrangement shall be primarily
benefits. responsible for its administration. In case of
differences in interpretation, the following guideline
The employer shall provide the telecommuting shall be observed:
employee with relevant written information in order (a) The differences shall be treated as
to adequately apprise the individual of the terms and grievances under the applicable grievance
conditions of the telecommuting program, and the mechanism of the company.
responsibilities of the employee. (b) If there is no grievance mechanism or if the
mechanism is inadequate, the grievance shall
be referred to the regional office of the
Department of Labor and Employment (DOLE)
Section 5. Fair Treatment. – The employer shall which has jurisdiction over the workplace for
ensure that the telecommuting employees are given conciliation.
the same treatment as that of comparable (c) To facilitate the resolution of grievances,
employees working at the employer's premises. All employers shall keep and maintain, as part of
telecommuting employees shall: their records, the documents proving that the
(a) Receive a rate of pay, including overtime and telecommuting work arrangement was
night shift differential, and other similar voluntarily adopted.
monetary benefits not lower than those provided
in applicable laws, and collective bargaining
agreements. 3. Rest Periods
(b) Have the right to rest periods, regular
holidays, and special non-working days.
(c) Have the same or equivalent workload and It shall be the duty of every employer, whether
performance standards as those of comparable operating for profit or not, to provide each of his
workers at the employer's premises. employees a rest period of not less than
(d) Have the same access to training and career twenty-four (24) consecutive hours after every
development opportunities as those of six (6) consecutive normal work days [Art. 91
comparable workers at the employer's premises,
and be subject to the same appraisal policies
(a)].
covering these workers.
(e) Receive appropriate training on the technical Preference of the Employee
equipment at their disposal, and the The employer shall determine and schedule
characteristics and conditions of telecommuting. the weekly rest day of his employees subject to
(f) Have the same collective rights as the collective bargaining agreement and to such
workers at the employer's premises, and shall
not be barred from communicating with workers' rules and regulations as the Secretary of Labor
representatives. and Employment may provide. However, the
employer shall respect the preference of
The employers shall also ensure that measures are employees as to their weekly rest day when
taken to prevent the telecommuting employee from such preference is based on religious grounds
being isolated from the rest of the working [Art. 94 (b)].
community in the company by giving the
telecommuting employee the opportunity to meet
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The employee shall make known his e. Employer selects the rest day of his
preference to the employer in writing at least employees.
seven days before the desired effectivity of the f. However, employer must consider the
initial rest day so preferred. religious reasons for the choice of a
rest day.
When the choice of the employee as to his rest
day based on religious grounds will inevitably Premium Pay
result in serious prejudice or obstruction to the Premium pay refers to the additional
operations and the employer cannot normally compensation for work performed within 8
be expected to resort to other measures, the hours on non-work days, such as rest days and
employer may so schedule the weekly rest day special days.
of his choice for at least two days in a month
[Rule III, Sec. 4]. Coverage [Sec. 7, Rule III, Book III, IRR]
General Rule: All employees
Compulsory Work on Rest Day Exceptions:
The employer may require his employees to a. Those of the government and any of
work on any day: the political subdivision, including
a. In case of actual or impending government-owned and controlled
emergencies caused by serious corporations;
accident, fire, flood, typhoon, b. Managerial employees as defined in
earthquake, epidemic or other disaster Book III;
or calamity to prevent loss of life and c. Househelpers and persons in the
property, or imminent danger to public personal service of another;
safety; d. Workers who are paid by results,
b. In cases of urgent work to be including those who are paid on piece
performed on the machinery, rate, takay, pakyaw, or task basis, and
equipment, or installation, to avoid other noontime work, if their output
serious loss which the employer would rates are in accordance with the
otherwise suffer; standards prescribed in the
c. In the event of abnormal pressure of regulations, or where such rates have
work due to special circumstances, been fixed by the Secretary of Labor
where the employer cannot ordinarily and Employment;
be expected to resort to other e. Field personnel, if they regularly
measures; perform their duties away from the
d. To prevent loss or damage to principal or branch office or place of
perishable goods; business of the ER and whose actual
e. Where the nature of the work requires hours of work in the field cannot be
continuous operations and the determined with reasonable certainty.
stoppage of work may result in
irreparable injury or loss to the
employer; and
f. Under other circumstances analogous
or similar to the foregoing as
determined by the Secretary of Labor
and Employment [Art. 92].
Synthesis of the Rules

a. Rest day of not less than 24
consecutive hours after 6 consecutive
days of work.
b. No work, no pay principle applies.
c. If an employee works on his
designated rest day, he is entitled to a
premium pay.
d. Premium pay is additional 30% of the
basic pay.
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Premium Pay Rates [Handbook on Workers regular work days and no regular rest
Statutory Monetary Benefits, 2018] days can be scheduled [Sec. 7, Rule III,
Book III, IRR].
When Work Performed Premium Pay
CBA on Higher Premium Pay/Rate
On scheduled rest day 130% of regular Adjustments
wage Where the collective bargaining agreement or
other applicable employment contract
On Sunday only if this is 130% of regular stipulates the payment of a higher premium
pay than that prescribed under this Article, the
the established rest day wage
employer shall pay such higher rate [Art. 93
(d)]. The employer and his employees or their
On Sunday and holidays, 130% of regular representatives are not prevented from
when no regular work wage entering into any agreement with terms more
and rest days favorable to the employees [Sec. 9, Rule II,
Book III, IRR].
On any special 130% of regular
holiday/special day wage Nothing in this rule shall justify an employer in
reducing the compensation of his employees
On any special holiday/ 150% of regular for the unworked Sundays, holidays, or other
special day falling on wage rest days, which are considered paid off days
scheduled rest day or holidays by agreement or practice subsisting
upon the effectivity of the Code [Sec. 8, Rule
On a regular holiday 260% of regular III, Book III, IRR].
falling on a rest day wage
4. Holidays
Work on a Sunday or Holiday Which is Holiday pay is a one-day pay given by law to
Also a Scheduled Rest Day an employee, even if he does not work on a
All establishments and enterprises may regular holiday. This gift of a day’s pay is
operate or open for business on Sundays and limited to each of the 12 regular holidays.
holidays provided that the employees are given
the weekly rest day and the benefits as Note: Art. 94 (c), was superseded by E.O. 203,
provided in this Rule [Sec. 2, Rule III, Book III, which was subsequently amended by RA
IRR]. 9177, 9256, 9492, and 9849. The current state
of the law is discussed below.
Compensation on Rest Day/Sunday/
Holiday Coverage
Except those employees referred to under Sec. General Rule: All employees [Art. 94(a); Rule
2, Rule I, Book III: IV, Sec. 1]
a. An employee who is made or permitted
to work on his scheduled rest day shall Exceptions:
be paid with an additional a. Those of the government and any of
compensation of at least 30% of his the political subdivision, including
regular wage. government-owned and controlled
b. An employee shall be entitled to such corporation;
additional compensation for work b. Those of retail and service
performed on a Sunday only when it is establishments regularly employing
his established rest day. less than 10 workers;
c. An employee shall be paid an c. Domestic helpers and persons in the
additional compensation of at least personal service of another;
30% of his regular wage for work d. Managerial employees and officers or
performed on Sundays and holidays, members of the managerial staff as
where the nature of the work of the defined in Book III;
employee is such that he has no
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e. Field personnel and other employees The dates for Eid’l Fitr and Eid’l Adha (special
whose time and performance are holidays) shall follow after approximate dates
unsupervised by the employer of the Islamic holidays have been determined.
including those who are engaged on
task or contract basis, purely Arts. 169-173, P.D. 1083 (Code of Muslim
commission basis, or those who are Personal Laws)
paid a fixed amount for performing Specifically for the Muslim Areas, P.D. 1083, in
work irrespective of the time consumed its Book V, IRR Title, recognizes five (5) Muslim
in the performance thereof [Sec. 1, Holidays, namely:
Rule IV]. a. Amun Jadid (New Year) which falls on
the first (1st) day of the lunar month of
Retail Establishment is one principally Muharram;
engaged in the sale of goods to end-users for b. Mauli-un-Nabi (Birthday of the Prophet
personal or household use. Muhammad) which falls on the twelfth
(12th) day of the third (3rd) lunar month
Service Establishment is one principally of Rabi-ul-Awwal;
engaged in the sale of service to individuals for c. Lailatul Isra Wal Mi Rai (Nocturnal
their own or household use and is generally Journey and Ascension of the Prophet
recognized as such [RA 6727 (The Wage Muhammand) which falls on the
Rationalization Act) IRR]. twenty-seventh (27th) day of the
seventh (7th) lunar month of Rajab;
Regular Holidays d. Id-ul-Fitr (Hari Raya Pausa) which falls
RA 9492 and 9849 (which added the two on the first (1st) day of the tenth (10th)
Muslim holidays) provide for the observance of lunar month of Shawwal
the following regular holidays: commemorating the end of the fasting
a. New Year’s Day – Jan. 1 season; and
b. Maundy Thursday – Movable date e. Id-ul-Adha (Hari Raya Haji) which falls
c. Good Friday – Movable date on the tenth (10th) day of the twelfth
d. Araw ng Kagitingan – Monday nearest (12th) lunar month of Dhul-Hijjah.
Apr. 9
e. Labor Day – Monday nearest May 1 Notes:
f. Independence Day – Monday nearest a. Id-ul-Fitr (Eid’l Fitr) and Id-ul-Adha
June 12 (Eid’l Adha) have been added to the list
g. Eid’l Fitr – Movable date of national legal holidays [RA 9849].
h. Eid’l Adha – Movable date a. There should be no distinction
i. National Heroes Day – Last Monday of between Muslims & non-Muslims as
August regards to the payment of benefits
j. Bonifacio Day – Monday nearest Nov. for Muslim holidays. Wages & other
30 emoluments granted by law to the
k. Christmas Day – Dec. 25 working man are determined on the
l. Rizal Day – Monday nearest Dec. 30 basis of the criteria laid down by laws,
and not on worker’s faith. Art. 3(3), PD
Special (Non-Working Days) 1083 states that nothing herein shall be
RA 9492 and RA 10966 provide for the construed to operate to the prejudice of
observance of the following special holidays: a non-Muslim [San Miguel Corp v. CA,
a. Ninoy Aquino Day – Monday nearest G.R. No. 146775 (2002)].
Aug. 21
b. All Saints Day – Nov. 1 Holiday Pay Computation [Art. 94; Rule IV,
c. Immaculate Conception of Mary [RA Book III, IRR; RA 9424; DOLE Memorandum
10966] – Dec. 8 Circular 1 Series of 2004]
d. Last day of the year – Dec. 31
Note: Proclamation 269 fixed the data for the

observance of the regular and special holidays
including additional special holidays for 2018
and 2019.
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General Rule: An employer may require an Overtime on OTWRHRD = Hourly Rate x
employee to work on a regular holiday but such
Regular 338% x number of hours of OT
employee shall be paid a compensation
Holiday
equivalent to twice his regular rate. If an
employee is required to work on a special which falls Note: Regular holiday-on-rest
holiday, the additional compensation should be on a Rest day rate (200% of regular daily
30% of his regular rate. Day wage plus 30% of such
(OTWRHRD amount) + 30% of hourly rate
) on said day [338%]
Work on
Computation
Holiday Work on WSH = Regular wage x 130%
Special
Work on a WRH = Regular wage x 200%
Holiday Note: Work performed on any
Regular
(WSH) special holiday shall be paid an
Holiday Note: The employer may
additional compensation of at
(WRH) require an employee to work on
least 30% of the regular wage
any holiday but such employee
of the employee [Art. 93(c)].
shall be paid a compensation
equivalent to twice his regular
Regular daily wage + 30%
rate [Art. 94(b)].
thereof [130%]
Overtime on OTRH = Hourly wage x 260% x
Overtime OTWSH = Hourly wage x
a Regular number of hours of OT work
during Work 169% x number of hours of OT
Holiday
on Special work
(OTRH) Note: Work performed beyond
Holiday
eight hours on a holiday or rest
(OTWSH) Note: 130% of regular daily
day shall be paid an additional
wage + 39 (which is 30% of
compensation equivalent to the
130%) [169%]
rate of the first eight hours on a
holiday or rest day plus at least Work on WSHRD = Regular wage x
thirty percent (30%) thereof Special 150%
[Art. 87]. Holiday
which falls Note: Where such holiday work
200% of regular daily wage (for on a Rest falls on the employee’s
the 1st 8 hours)+ 60% of hourly Day scheduled rest day, he shall be
rate on said day [260%] (WSHRD) entitled to an additional
compensation of at least 50%
Work on WRHRD = Regular wage x
of his regular wage.
Regular 260%
Regular daily wage + 50%
Holiday
thereof [150%]
which falls Note: Where an employee is
on a Rest made or permitted to work on Overtime OTWSHRD = Hourly wage x
Day his scheduled rest day, he shall during Work 195% x number of hours of OT
(WRHRD) be paid an additional on Special work
compensation of at least 30% Holiday
of his regular wage [Art. 93(a)]. which falls Note: 45% (which is 30% of
on a Rest 150%) + 150% [195%]
200% of regular daily wage + Day
60% (which is 30% of 200%) (OTWSHRD
[260%] )
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According to DOLE Memo Circular 1-04, a a. Monthly paid employees are not
“special holiday”/”special day” includes the entitled to the holiday pay if their total
National Special Days, and declared special annual income is divided by 365 days
days such as Special Non-working Holiday, resulting in a wage which is beyond the
Special Public Holiday and Special National minimum wage per day because they
Holiday. Such days are entitled to the rates are considered paid everyday of the
prescribed above. These days are not the year including holidays, rest days, and
same as a special working holiday. other non-working days.
b. As a general rule, for a company with a
A special working holiday is considered an 6-day working schedule, the divisor
ordinary working day, so there is no premium 313 already means that the legal
pay. holidays are included in the monthly
pay of the employee. The divisor is
Double Holiday Pay arrived at by subtracting all Sundays
According to “DOLE Explanatory Bulletin on from the total number of calendar days
Workers’ Entitlement to Holiday Pay on 9 April in a year.
1993,” if two holidays fall on the same day: c. As a general rule for a company with a
a. If unworked, 200% of basic wage. 5-day working schedule, the divisor
b. If worked, 300% of basic wage 277 means that the holiday pay is
[Azucena]. already included in the monthly salary
of the employee [Trans Asia Phils. v.
Double Holiday Rule for Monthly-Paid NLRC, G.R. No. 118289 (1999)].
Employees
For covered employees whose monthly An increase in the divisor that results in the
salaries are computed based on 365 days and prejudice of the employees is a violation of the
for those other employees who are paid using proscription against non-diminution of benefits
factor 314, or 262, or any other factor which under Sec. 100 of the Labor Code. Such
already considers the payment for the 11 [now increases should only be used for
12] regular holidays, NO additional payment is computations which would be advantageous to
due them [BWC-WHSD Opinion No. 053, s. the employer (i.e. deduction for absences) and
1998]. not for computations which would diminish the
existing benefits of the employees (i.e.,
Successive Holiday Pay overtime pay, holiday pay and leave
According to IRR, Rule IV, Sec. 10, an conversions) [Trans Asia Phils. v. NLRC,
employee is entitled to holiday pay for both supra].
days, IF:
a. He is present on day immediately Sundays
preceding first holiday; or (See “Work on a Sunday or holiday which is
b. He works on first holiday, which entitles also a scheduled rest day”)
him to pay on second holiday. a. When a holiday falls on a Sunday, the
following Monday will not be
Where the day immediately preceding the considered a holiday unless a
holiday is a non-working day in the proclamation says so.
establishment or the scheduled rest day of the b. A legal holiday falling on a Sunday
employee, he shall not be deemed to be on does not create a legal obligation to
leave of absence on that day, in which case he pay extra, aside from the usual holiday
shall be entitled to the holiday pay if he worked pay, to monthly-paid employees
on the day immediately preceding the non- [Azucena, citing Letter of Instruction
working day or rest day [Sec. 6, Rule IV, Book No. 1087].
III, IRR].
No provision of law requires any employer to
Divisors make adjustments in the monthly salary rate
The divisor assumes an important role in set by him to take account of legal holidays
determining whether or not holiday pay is falling on Sundays in a given year, otherwise to
already computed. reckon a year at more than 365 days
[Wellington Investment and Manufacturing
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Corporation v. Trajano, G.R. No. 114698 a. An annual inventory; or
(1995)]. b. Repair or cleaning of machineries and
equipment is undertaken.
Non-Working/Scheduled Rest Day
Where the day immediately preceding the The employer may not pay his employees for
holiday is a non-working day in the the regular holidays during the suspension of
establishment or the scheduled rest day of the work if: the cessation of operation is due to
employee, he shall not be deemed to be on business reverses, and is authorized by the
leave of absence on that day, in which case he Secretary of Labor.
shall be entitled to the holiday pay if he worked
on the day immediately preceding the non- Teachers, Piece Workers, Seafarers,
working day or rest day [Sec. 6(c), Rule IV, Seasonal Workers, Etc.
Book III, IRR]. a. Private school teachers, including
faculty members of colleges and
Example: universities, may not be paid for the
If a holiday falls on Monday, and Sunday is a regular holidays during semestral
non-working day in the establishment or is the vacations. They shall, however, be
scheduled rest day of the employee, the paid for the regular holidays during
employee shall be entitled to holiday pay if he Christmas vacation
worked on Saturday (which is the day b. Where a covered employee, is paid by
immediately preceding Sunday, the non- results or output, such as payment on
working day or rest day). piece work, his holiday pay shall not be
less than his average daily earnings for
Right to Holiday Pay in Case of Absences the last seven (7) actual working days
If an employee is on leave of absence with pay preceding the regular holiday;
on the day immediately preceding a regular Provided, However, that in no case
holiday, he is entitled to holiday pay [Sec. 6(a), shall the holiday pay be less than the
Rule IV, Book III, IRR]. applicable statutory minimum wage
rate
If an employee is on leave of absence without c. Seasonal workers may not be paid the
pay on the day immediately preceding a required holiday pay during off-season
regular holiday, he is not entitled to holiday pay when they are not at work
unless he works on such regular holiday [Sec. d. Workers who have no regular working
6(a), Rule IV, Book III, IRR]. days shall be entitled to the benefits
provided in this Rule [Sec. 8, Rule IV,
In Case of Temporary Cessation of Work Book III, IRR]
a. In cases of temporary or periodic
shutdown and temporary cessation of Holiday Pay of Hourly-Paid Faculty
work of an establishment, as when a Members
yearly inventory or when the repair or Not Entitled: Regular Holiday Pay
cleaning of machineries and equipment Entitled: Regular hourly rate on days declared
is undertaken, the regular holidays as special holidays or for some reason classes
falling within the periods shall be are called off or shortened for the hours they
compensated in accordance with this are supposed to have taught, whether
Rule. extensions of class days be ordered or not; in
b. The regular holiday during the case of extensions said faculty members shall
cessation of operation of an enterprise likewise be paid their hourly rates should they
due to business reverses as authorized teach during said extensions.
by the Secretary of Labor may not be a. They are not entitled to payment of
paid by the employer [Sec. 7, Rule IV, holiday pay because they are paid only
Book III, IRR]. for work actually done. Since regular
holidays are known to both the school
An employee is entitled to holiday pay for the and faculty members as “no class day”;
regular holidays falling within the period in certainly the latter do not expect
cases of temporary shutdowns or cessation of payment for said unworked holidays.
work, when:
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b. They are entitled to their hourly rate on a. It must have been promised by the
days declared as special holidays. employer and expressly agreed upon
When a special public holiday is by the parties; or
declared, the faculty member paid by b. It must have had a fixed amount and
the hour is deprived of expected had been a long and regular practice
income, and it does not matter that the on the part of the employer [American
school calendar is extended in view of Wire and Cable Union v. American
the days or hours lost, for their income Wire, G.R. No. 155059 (2005)].
that could be earned from other
sources is lost during the extended See also VI. D. Bonus for a more
days. comprehensive discussion on company
c. Similarly, when classes are called off or practices
shortened on account of typhoons,
floods, rallies, and the like, these 13th Month Pay
faculty members must likewise be paid, [PD 851 (The 13th-Month Pay Law) and the
whether or not extensions are ordered Revised Guidelines on the Implementation of
[Jose Rizal College v. NLRC, G.R. No. the 13th Month Pay Law]
L-65482 (1987)].
Coverage
Piece Workers General Rule: ALL EMPLOYERS are hereby
The philosophy underlying the exclusion of required to pay all their rank and file
piece workers from the 8-hour law is that said employees a 13th month pay not later than
workers are paid depending upon the work Dec 24 of every year, Provided that they have
they do irrespective of the amount of time worked for at least one (1) month during a
employed in doing said work [Red V Coconut calendar year [Memorandum Order No. 28].
Products Ltd. v. CIR, G.R. No. L-21348
(1966)]. N.B.: The law distinguishes managerial
employees from rank-and-file employees;
Seafarers hence, managerial employees are not legally
Any hours of work or duty including hours of entitled to 13th month pay.
watch-keeping performed by the seafarer on
designated rest days and holidays shall be paid Exempted Employers:
rest day or holiday pay [Sec. 11.C, Standard a. Government, its political subdivisions,
Terms and Conditions Governing the including GOCCs except those
Employment of Filipino Seafarers on Board operating essentially as private
Ocean-Going Vessels]. subsidiaries of the Government;
b. Employers already paying their
Seasonal Workers employees a 13th month pay or more
Seasonal workers who do not work during off- in a calendar year or its equivalent at
season are not entitled to pay for the regular the time of this issuance; and
holidays occurring during their off-season. c. Employers of those who are paid on
Workers assigned to “skeleton crews” that purely commission, boundary or task
work during the off-season have the right to be basis and those who are paid a fixed
paid on regular holidays falling in that duration. amount for performing specific work,
irrespective of the time consumed in
5. Bonus, 13th Month Pay the performance thereof (except those
workers who are paid on piece-rate
Bonus basis, in which case their employer
General Rule: A bonus is an act of gratuity on shall grant them 13th month pay).
the part of the employer, and is a management
prerogative which cannot be forced upon the Notes:
employer [Kamaya Point Hotel v. NLRC, G.R. “Equivalent” of a 13th month pay includes:
No. 75289 (1989)]. a. Christmas bonus, mid-year bonus,
cash bonuses; and
Exception: For a bonus to be enforceable: b. Other payments amounting to not less
than 1/12 of the basic salary
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But shall not include cash and stock dividends, Exception: ER may give to his employees half
cost of living allowances and all other (½) of the required 13th Month Pay before the
allowances regularly enjoyed by the employee, opening of the regular school year and the
as well as non-monetary benefits. other half on or before the 24th of December
every year.
Workers paid on a piece-rate basis – paid a
standard amount for every piece or unit of work The frequency of payment of this monetary
produced that is more or less regularly benefit may be the subject of agreement
replicated, without regard to the time spent in between the employer and the recognized CBA
producing the same. Their employer shall grant of the employees.
them 13th month pay.
Rationale Behind 13th Month Pay
Minimum Amount a. To further protect the level of real
1/12 of the total basic salary earned by an wages from the ravage of world-wide
employee within a calendar year. inflation;
b. There had been no increase in the legal
Base Amount minimum wage rates since 1970;
General Rule: basic salary shall include: c. The Christmas season is an opportune
a. Cost of living allowances (COLA) time for society to show its concern for
integrated into the basic salary of a the plight of the working masses so
covered employee pursuant to EO 178. they may properly celebrate Christmas
b. All remunerations or earnings paid by and New Year [Whereas clauses of PD
this employer for services rendered. 851].
Excluding the allowances and monetary 13th Month Pay in Special Cases
benefits which are not considered or integrated a. Paid by Results: Employees who are
as part of the regular or basic salary, such as paid on piece work basis are, by law,
the cash equivalent of: entitled to the 13th Month Pay [Revised
a. Unused vacation and sick leave Guidelines on the Implementation of
credits, the 13th Month Pay Law].
b. Overtime, b. Fixed or Guaranteed Wage:
c. Premium, Employees who are paid a fixed or
d. Night differential, guaranteed wage plus commission are
e. Holiday pay and, and entitled to 13th month pay (not purely
f. Cost-of-living allowances. commission); the basis for computation
shall be both their fixed or guaranteed
Exception: A company practice favorable to wage and commission [Revised
the employees had indeed been established if Guidelines].
for a considerable length of time, the employer
had freely, voluntarily and continuously c. Those with Multiple Employers:
included in the computation of its employees' Government Employees working part
thirteenth month pay, the payments for sick, time in a private enterprise, including
vacation and maternity leaves, premiums for private educational institutions, as well
work done on rest days and special holidays, as Employees working in two or more
and pay for regular holidays. Thus, the private firms, whether on full or part
payments made pursuant thereto, ripened into time bases, are entitled to the
benefits enjoyed by the employees, and any required 13th Month Pay from all
benefit and supplement being enjoyed by them their private Employers regardless of
cannot be reduced, diminished, discontinued their total earnings from each or all their
or eliminated by the employer [Davao Fruits employers [Revised Guidelines].
Corp. v. ALU, G.R. No. 85073 (1993)].
d. Private School Teachers: Private
Time of Payment school teachers, including faculty
General Rule: paid not later than Dec 24 of members of universities and colleges,
each year. are entitled to the required 13th month
pay, regardless of the number of
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months they teach or are paid within a to or of the same import as the said
year, if they have rendered service for benefit contemplated by law [JPL
at least one (1) month within a year Marketing Promotions v. CA, G.R. No.
[Revised Guidelines]. 151966 (2005)].
d. 14th Month Pay is not mandated:
Overload pay is NOT included in the Employers already paying their
computation for 13th month pay; overload is employees a 13th month pay or its
not overtime as it is additional work done equivalent are not covered by this
within the normal shift [Letran Calamba Decree [Kamaya Point Hotel v. NLRC,
Faculty v. NLRC, G.R. No. 156225 (2008)]. G.R. No. 75289 (1989)].
e. Non-inclusion in regular wage: The
e. Resigned or Separated Employee: mandated 13th month pay need not be
An Employee who has resigned or credited as part of regular wage of
whose services were terminated at any employees for purposes of determining
time before the time for payment of the overtime and premium pays, fringe
13th month pay is entitled to this benefits insurance fund, Social
monetary benefit in proportion to the Security, Medicare and private
length of time he worked during the retirement plans [Revised Rules].
year, reckoned from the time he started
working during the calendar year up to Commissions vis-à-vis 13th Month Pay
the time of his resignation or
termination from service [Revised The Rule on Productivity Bonuses.
Guidelines]. “Productivity bonuses” have no clear direct or
necessary relation to the amount of work
f. Terminated Employees: The actually done by each individual employee. If
payment of the 13th month pay may be an employer cannot be compelled to pay a
demanded by the employee upon the productivity bonus to its employees, it should
cessation of employer-employee follow that such productivity bonus, when
relationship [Archilles Manufacturing given, should not be deemed to fall within the
Corp. v. NLRC, G.R. No. 107225 “basic salary” of employees when the time
(1995)]. comes to compute their 13th month pay [Boie-
Takeda v. de la Serna, G.R. No. 92174 & G.R.
Additional Rules No. L-102552 (1993)].
a. Commissions: If the commissions
may be properly considered part of the The sales commission earned by the salesmen
basic salary, then they should be who make or close a sale constitute part of the
INCLUDED. If they are not an integral compensation or remuneration paid to
part of the basic salary, then they salesmen for serving as salesmen, and hence
should be EXCLUDED [Phil. as part of the “wage” or salary of petitioner’s
Duplicators Inc. v. NLRC, G.R. No. salesmen. The sale commissions were an
110068 (1995)]. integral part of the basic salary structure used
b. Substitute Payment not allowed: as the base amount for the computation of 13th
Benefits in the form of food or free month pay [Phil. Duplicators v. NLRC, G.R.
electricity, assuming they were given, No. 110068 (1995)].
were not a proper substitute for the
13th month pay required by law. CBA vis-à-vis 13th Month Pay
Neither may year-end rewards for P.D. No. 851 is specific and mandatory.
loyalty and service be considered in However, if the employers actually grant such
lieu of 13th month pay [Framanlis 13th month pay in the monetary benefits
Farms, Inc. v. MOLE, G.R. No. 72616- provided for in the CBA, they could be
17 (1989)]. exempted from the operation of the decree. To
c. Wage Difference: The difference be exempted, there must be actual payment
between the minimum wage and the [Marcopper Mining Corp. v. Ople, G.R. No. L-
actual salary received by the Employee 51254 (1981)].
cannot be deemed as his 13th month
pay as such difference is not equivalent
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Effect of Deficiency in 13th Month Pay b. [The employees’] right to their shares in
An employer who pays less than 1/12th of the the service charges collected by [the
employees’ basic salary as their 13th month employer] is distinct and separate from
pay is only required to pay the difference their right to ECOLA; gratification by
[Revised Rules]. the [employer] of one does not result in
the satisfaction of the other [Philippine
6. Service Charges Hoteliers, Inc., Dusit Hotel-Nikko v.
NUWHRAIN-APL-IUF-Dusit Hotel
Coverage Nikko Chapter, G.R. No. 181972
(2009)].
Employers
This rule shall apply only to establishments Service Charge Not Included in
which collect service charges such as: Determining Compliance with Minimum
a. Hotels, restaurants, lodging houses, Wage
night clubs, cocktail lounge, massage In the event that the minimum wage is
clinics, bars, casinos and gambling increased by law or wage order, service
houses; charges paid to the covered employees shall
b. Similar enterprises including those not be considered in determining the covered
entities operating primarily as private establishment’s compliance with the increased
subsidiaries of the Government [Sec. minimum wage [Sec. 5, DO 206-19, IRR of
1, DO 206-19, IRR of RA11360] RA11360].
Employees In Relation to Collective Bargaining

Shall apply to ALL employees of covered Agreements and Employer-Employee
employers: Agreements
a. Regardless of their positions, Nothing in the Rules shall prevent the employer
designations, or employment status, and employee from entering into any
and agreement with terms more favorable to the
b. Irrespective of the method by which employees than those granted therein, or be
their wages are paid [Sec. 2 (a), DO used to diminish any benefit granted to the
206-19, IRR of RA11360] employees under existing laws, agreement
AND voluntary employer practice [Sec. 6, Rule
Exceptions VI, Book III, IRR].
Managerial employees [Sec. 2 (c), DO 2016-
19, IRR of RA11360] The rule is without prejudice to existing, future
collective bargaining agreements [Sec. 7, Rule
Distribution, amended by RA11360 VI, Book III, IRR].
Pursuant to the 2019 amendments to Art. 96,
all service charges collected by hotels, shall be Synthesis of the Rules
distributed completely and equally among the a. Service charges must be pooled;
covered workers except managerial b. Where a restaurant or similar
employees, based on actual hours or days of establishment does not collect service
work or service rendered, among the covered charges but has a practice or policy of
employees, including those already receiving monitoring and pooling tips given
the benefit of sharing in the service charges voluntarily by its customers to its
[Sec. 3, DO 206-19, IRR of RA11360]. employees, the pooled tips should be
monitored, accounted for and
The shares shall be distributed to employees distributed in the same manner as the
not less than once every 2 weeks or twice a services charges [Handbook on
month at intervals not exceeding 16 days [Sec. Workers’ Statutory Monetary Benefits,
4, DO 206-19, IRR of RA11360]. 2018];
c. The amount collected shall be
Notes: distributed completely and equally
a. The P2,000.00 salary ceiling for among the covered workers;
entitlement thereto is no longer d. It shall be given twice a month with
applicable. intervals of not more than 16 days;
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e. Payment of service charges will not be Note: Workers in registered barangay micro
considered in compliance with any business enterprises are only exempted from
increase in the minimum wage by law the Minimum Wage Law, not from the Title on
or wage order. Wages [RA 9178].
C. Wages 1. Wage vs. Salary
1. Payment of Wages Wages and salary are in essence synonymous

[Songco v. NLRC, G.R. No. L-50999 (1990)].
a. Definition, Components, and
There are slight differences:
Exclusions
Wage Salary
Definition
It is the remuneration or earnings, however
Paid for skilled or Paid to white collar
designated:
1. Capable of being expressed in terms of unskilled manual workers and denote
money; labor a higher grade of
2. Whether fixed or ascertained on a time, employment
task, piece, or commission basis, or
other method of calculating the same; Not subject to Subject to
3. Payable by an employer to an execution, execution,
employee under a written or unwritten garnishment or garnishment or
contract of employment – attachment except for attachment [Gaa v.
a. for work done or to be done; or
debts related to CA, G.R. No. L-
b. for services rendered or to be
rendered [Art. 97(f)] necessities [Art. 44169 (1985)]
1708]
Coverage/Exclusions
Wage includes the fair and reasonable value of
2. Bonus, 13th Month Pay
facilities furnished by the employer to the
employee [Art. 97(f)] while allowances are
Bonus
excluded from the basic salary or wage
General Rule: A bonus is an act of gratuity on
computation [Cebu Institute of Technology v.
the part of the employer, and is a management
Ople, G.R. No. L-58870 (1987)].
prerogative which cannot be forced upon the
employer [Kamaya Point Hotel v. NLRC, G.R.
Note: Fair and reasonable value shall not
No. 75289 (1989)].
include any profit to the employer, or to any
person affiliated with the employer [Art. 97(f)].
Exception: For a bonus to be enforceable:
1. It must have been promised by the
Applicability
employer and expressly agreed upon
The Labor Code Title on wages shall not apply
by the parties; or
to the following [Art. 98 and Sec. 3, Rule VII,
2. It must have had a fixed amount and
Book III, IRR]:
had been a long and regular practice
1. Farm tenancy or leasehold;
on the part of the employer [American
2. Household or domestic helpers,
Wire and Cable Union v. American
including family drivers and other
Wire, G.R. No. 155059 (2005)].
persons in the personal service of
another;
See also VI. D. Bonus for a more
3. Homeworkers engaged in needlework;
comprehensive discussion on company
4. Workers in registered cottage
practices
industries who actually work at home;
5. Workers in registered cooperatives
when so recommended by the Bureau
of Cooperative Development upon
approval of the Secretary of Labor.
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th
13th Month Pay them 13 month pay.
[PD 851 (The 13th-Month Pay Law) and the
Revised Guidelines on the Implementation of Minimum Amount
the 13th Month Pay Law] It must not be less than 1/12 of the total basic
salary earned by an employee within a
Coverage calendar year [Sec. 4(a), Revised Guidelines
General Rule: ALL EMPLOYERS are required on the Implementation of 13th Month Pay Law].
to pay all their rank and file employees a 13th
month pay not later than Dec 24 of every year, Base Amount
Provided that they have worked for at least one General Rule: basic salary shall include:
(1) month during a calendar year a. Cost of living allowances (COLA)
[Memorandum Order No. 28]. integrated into the basic salary of a
covered employee pursuant to EO 178
N.B.: The law distinguishes managerial b. All remunerations or earnings paid by
employees from rank-and-file employees; this employer for services rendered.
hence, managerial employees are not legally
entitled to 13th month pay. Excluding the allowances and monetary
benefits which are not considered or integrated
Exempted Employers: as part of the regular or basic salary, such as
a. Government, its political subdivisions, the cash equivalent of:
including GOCCs except those 1. Unused vacation and sick leave
operating essentially as private credits,
subsidiaries of the Government; 2. Overtime,
b. Employers already paying their 3. Premium,
employees a 13th month pay or more 4. Night differential,
in a calendar year or its equivalent at 5. Holiday pay and, and
the time of this issuance; 6. Cost-of-living allowances
c. Employers of household helpers and
persons in the personal service of Exception: A company practice favorable to
another in relation to such workers; the employees had indeed been established if
d. Employers of those who are paid on for a considerable length of time, the employer
purely commission, boundary or task had freely, voluntarily and continuously
basis and those who are paid a fixed included in the computation of its employees'
amount for performing specific work, thirteenth month pay, the payments for sick,
irrespective of the time consumed in vacation and maternity leaves, premiums for
the performance thereof (except those work done on rest days and special holidays,
workers who are paid on piece-rate and pay for regular holidays. Thus, the
basis, in which case their employer payments made pursuant thereto, ripened into
shall grant them 13th month pay). benefits enjoyed by the employees, and any
benefit and supplement being enjoyed by them
Notes: cannot be reduced, diminished, discontinued
“Equivalent” of a 13th month pay includes: or eliminated by the employer [Davao Fruits
a. Christmas bonus, mid-year bonus, Corp. v. ALU, G.R. No. 85073 (1993)].
cash bonuses; and
b. Other payments amounting to not less Time of Payment
than 1/12 of the basic salary General Rule: paid not later than Dec 24 of
But shall NOT INCLUDE cash and stock each year.
dividends, cost of living allowances and all
other allowances regularly enjoyed by the Exception: ER may give to his employees half
employee, as well as non-monetary benefits. (½) of the required 13th Month Pay before the
opening of the regular school year and the
Workers paid on a piece-rate basis – paid a other half on or before the 24th of December
standard amount for every piece or unit of work every year.
produced that is more or less regularly
replicated, without regard to the time spent in
producing the same. Their employer shall grant
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The frequency of payment of this monetary overtime as it is additional work done
benefit may be the subject of agreement within the normal shift [Letran Calamba
between the employer and the recognized CBA Faculty v. NLRC, G.R. No. 156225
of the employees [Sec. 4(b), Revised (2008)].
Guidelines on the Implementation of 13th e. Resigned or Separated Employee:
Month Pay Law]. An Employee who has resigned or
whose services were terminated at any
Rationale Behind 13th Month Pay time before the time for payment of the
a. To further protect the level of real 13th month pay is entitled to this
wages from the ravage of world-wide monetary benefit in proportion to the
inflation; length of time he worked during the
b. There had been no increase in the legal year, reckoned from the time he started
minimum wage rates since 1970; working during the calendar year up to
c. The Christmas season is an opportune the time of his resignation or
time for society to show its concern for termination from service [Revised
the plight of the working masses so Guidelines].
they may properly celebrate Christmas f. Terminated Employees: The
and New Year [Whereas clauses of PD payment of the 13th month pay may be
851]. demanded by the employee upon the
cessation of employer-employee
13th Month Pay in Special Cases relationship [Archilles Manufacturing
a. Paid by Results: Employees who are Corp. v. NLRC, G.R. No. 107225
paid on piece work basis are, by law, (1995)].
entitled to the 13th Month Pay [Revised
Guidelines on the Implementation of Additional Rules
the 13th Month Pay Law]. a. Commissions: If the commissions
b. Fixed or Guaranteed Wage: may be properly considered part of the
Employees who are paid a fixed or basic salary, then they should be
guaranteed wage plus commission are INCLUDED. If they are not an integral
entitled to 13th month pay (not purely part of the basic salary, then they
commission); the basis for computation should be EXCLUDED [Phil.
shall be both their fixed or guaranteed Duplicators Inc. v. NLRC, G.R. No.
wage and commission [Revised 110068 (1995)].
Guidelines]. b. Substitute Payment not allowed:
c. Those with Multiple Employers: Benefits in the form of food or free
Government Employees working part electricity, assuming they were given,
time in a private enterprise, including were not a proper substitute for the
private educational institutions, as well 13th month pay required by law.
as Employees working in two or more Neither may year-end rewards for
private firms, whether on full or part loyalty and service be considered in
time bases, are entitled to the lieu of 13th month pay [Framanlis
required 13th Month Pay from all Farms, Inc. v. MOLE, G.R. No. 72616-
their private Employers regardless of 17 (1989)].
their total earnings from each or all their c. Wage Difference: The difference
employers [Revised Guidelines]. between the minimum wage and the
d. Private School Teachers: Private actual salary received by the Employee
school teachers, including faculty cannot be deemed as his 13th month
members of universities and colleges, pay as such difference is not equivalent
are entitled to the required 13th month to or of the same import as the said
pay, regardless of the number of benefit contemplated by law [JPL
months they teach or are paid within a Marketing Promotions v. CA, G.R. No.
year, if they have rendered service for 151966 (2005)].
at least one (1) month within a year d. 14th Month Pay is not mandated:
[Revised Guidelines]. Overload pay is Employers already paying their
NOT included in the computation for employees a 13th month pay or its
13th month pay; overload is not equivalent are not covered by this
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Decree [Kamaya Point Hotel v. NLRC, b. Principles
G.R. No. 75289 (1989)].
e. Non-inclusion in regular wage: The 1. No Work, No Pay
mandated 13th month pay need not be
credited as part of regular wage of General Rule: If there is no work performed by
employees for purposes of determining the employee, there can be no wage or pay.
overtime and premium pays, fringe
benefits insurance fund, Social Exception: Unless the laborer was able,
Security, Medicare and private willing and ready to work but was prevented by
retirement plans [Revised Rules]. management or was illegally locked out,
suspended or dismissed [Azucena, citing
Commissions vis-à-vis 13th Month Pay Philippine Airlines v. NLRC, G.R. No. 55159
(1989)].
The Rule on Productivity Bonuses.
“Productivity bonuses” have no clear direct or 2. Equal Pay for Equal Work
necessary relation to the amount of work
actually done by each individual employee. If Employees working in the Philippines, if they
an employer cannot be compelled to pay a are performing similar functions and
productivity bonus to its employees, it should responsibilities under similar working
follow that such productivity bonus, when conditions, should be paid equally. If an
given, should not be deemed to fall within the employer accords employees the same
“basic salary” of employees when the time position and rank, the presumption is that these
comes to compute their 13th month pay [Boie- employees perform equal work [International
Takeda v. de la Serna, G.R. No. 92174 & G.R. School Alliance of Educators v. Hon.
No. L-102552 (1993)]. Quisumbing, G.R. No. 128845 (2000)].
The sales commission earned by the salesmen 3. Fair Wage for Fair Work
who make or close a sale constitute part of the
compensation or remuneration paid to General Rule: The age-old rule governing the
salesmen for serving as salesmen, and hence relation between labor and capital or
as part of the “wage” or salary of petitioner’s management and employee is that a "fair day's
salesmen. The sale commissions were an wage for a fair day's labor." It is hardly fair or
integral part of the basic salary structure used just for an employee or laborer to fight or litigate
as the base amount for the computation of 13th against his employer on the employer's time
month pay [Phil. Duplicators v. NLRC, G.R. [Sugue v. Triumph International, G.R. No.
No. 110068 (1995)]. 164804 (2009)].
CBA vis-à-vis 13th Month Pay Exception: When the laborer was able,
P.D. No. 851 is specific and mandatory. willing and ready to work but was illegally
However, if the employers actually grant such locked out, suspended or dismissed, or
13th month pay in the monetary benefits otherwise illegally prevented from working
provided for in the CBA, they could be [Sugue v Triumph International, supra].
exempted from the operation of the decree. To
be exempted, there must be actual payment
[Marcopper Mining Corp. v. Ople, G.R. No. L- c. Form of Payment [Art. 102; Secs. 1-
51254 (1981)]. 2, Rule VIII, Book III, IRR]
Effect of Deficiency in 13th Month Pay General Rule: Legal Tender Only
An employer who pays less than 1/12th of the
employees’ basic salary as their 13th month Exception: Check/Money Order if customary
pay is only required to pay the difference OR necessary because of special
[Revised Rules]. circumstances, as specified by the Secretary of
Labor or the CBA.
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Not allowed: d. Time of payment [Art. 103; Sec. 3,
1. Promissory Notes Rule VIII, Book III, IRR]
2. Vouchers
3. Tokens Time of Payment
4. Tickets
5. Chits; or At least once every 2
6. Any other form alleged to represent a Frequency
legal tender, even when expressly weeks or 2x per month
requested by the employee [Art. 102].
Must not be more than
Intervals
When Payment Through Check, Postal 16 days
Orders or Money Orders is Allowed:
1. When payment is customary (on the Valid excuse for
date of Code effectivity); delayed payment
Force Majeure or
2. Where it is so stipulated in a collective
Circumstances
agreement; BUT ER must pay
3. Where all of the following conditions Beyond ER’s
immediately after
are met: Control
cessation and not less
a. Bank/Facility for encashment is than once a month
within 1-km radius from the
workplace
Payments should be
b. ER did not receive any pecuniary
benefit because of said made with intervals not
arrangement more than 16 days, in
Tasks Which
c. EEs are given reasonable time proportion to work
Cannot Be
during banking hours to withdraw completed
Completed in 2
their wages (compensable hours, if
during working hours) Weeks
Final settlement is
d. The payment by check is with the made upon completion
written consent of the EEs
of the work.
concerned, in the absence of a
CBA [Sec. 2, Rule VIII]
e. Place of Payment [Art. 104; Sec. 4,
Rule VIII, Book III, IRR]
General Rule: Shall be made at or near the

place of undertaking (workplace).
Exceptions:
1. Deterioration of peace and order
conditions, or by reason of actual or
impending emergencies (fire, flood,
epidemic);
2. Free transportation to the employees
back and forth;
3. Under any other analogous
circumstances provided, that the time
spent by the employees in collecting
their wages shall be considered as
compensable hours worked.
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No payment in any bar, night or day club, behalf by his natural guardian or
drinking establishment, massage clinic, dance next of kin.
hall, or other similar places or in places where
games are played with stakes of money or When the employer engages the services of an
things representing money, except in the case organized group of workers, payment to their
of persons employees in such places. leader cannot be considered a violation of the
rule on direct payment [Bermiso v. Escano,
Condition for ATM Payment [Labor G.R. No. L-11606 (1959)].
Advisory on Payment of Salaries thru
ATM (1996)] 2. Prohibitions Regarding Wages
1. ATM system of payment is with the
written consent of the EEs. a. Against interference in disposal of
2. EEs are given reasonable time to wages [Art. 112]
withdraw their wages from the banking
facility (compensable hours, if during Interference with disposal of wages also
work hours). includes forcing, compelling, or obliging
3. System shall allow workers to receive employees to purchase merchandise,
their wages within the period/frequency commodities or other property from any other
provided by law. person.
4. There is a bank/ATM facility within 1km
radius from the place of work. b. Against Wage Deduction [Art. 113]
5. Upon request of the concerned EEs,
the ER shall issue a record of payment General Rule: No employer, in his own behalf
of wages, benefits and deductions for a or in behalf of any person, shall make any
particular period. deduction from the wages of his employees.
6. There shall be no additional expenses
and no diminution of benefits and Exceptions:
privileges. 1. where the worker is insured with his
7. The ER shall assume responsibility in consent, and the deduction is to
case the wage protection provisions of recompense the employer for the
law and regulations are not complied premium paid
with under the arrangement. 2. for union dues
3. where the employer is authorized by
f. Person to Pay [Sec. 5, Rule VIII, Book law or regulations issued by SOLE
III, IRR]
c. Against Requirements to Make
General Rule: Directly to EE Deposits for Loss or Damage [Arts.
114-115]
Exceptions:
1. Member of EE’s family → if ER is General Rule: No employer shall require his
authorized in writing by the EE. worker to make deposits from which
2. A 3rd person → if authorized by law deductions shall be made for the
(e.g. insurance companies for reimbursement of loss of or damage to tools,
premiums, union dues where the right materials, or equipment supplied by the
to check-off has been recognized by employer.
ER in accordance with a CBA or
authorized in writing by EE concerned). Exception: When the employer is engaged in
3. Heirs → in case of death of EE, without a business where the practice of making
necessity of intestate proceedings. deductions or deposits is a recognized one, or
a. If heirs are of age → they shall is necessary or desirable as determined by
execute an affidavit attesting to SOLE.
their relationship to the deceased
and the fact that they are his heirs No deduction from the deposits of an employee
to the exclusion of others. for the actual amount of the loss or damage
b. If any of the heirs is a minor → such shall be made unless the employee has been
affidavit shall be executed on his
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heard thereon, and his responsibility has been v. NLRC & PICOP, G.R. No. 122827 (1999)].
clearly shown [Art. 115].
Requirements for Deducting Value of
d. Against Withholding of Wage [Art. Facilities
116] Mere availment is not sufficient to allow
deductions from employees’ wages. Before the
It is unlawful for any person to withhold any value of facilities can be deducted from the
amount from the wages of a worker or induce employees’ wages, the following requisites
him to give up any part of his wages by force, must all be attendant:
stealth, intimidation, threat or any other means a. Proof must be shown that such
without his consent. facilities are customarily furnished by
the trade;
e. Against Deduction to Ensure b. The provision of deductible facilities
Employment [Art. 117] must be voluntarily accepted in
writing by the employee; and
c. Facilities must be charged at
It is unlawful to make any deduction from the
reasonable value [SLL International
wages of any employee for the benefit of the
Cable Specialists v. NLRC, G.R. No.
employer as consideration of promise for
172161 (2011)].
employment or retention.
“Customary” means long-established and
f. Against Retaliatory Measures [Art. constant practice connoting regularity [Millares
118] v. NLRC & PICOP, G.R. No. 122827 (1999)].
It is unlawful for an employer to discriminate b. Beneficiaries
(e.g. to refuse to pay or reduce the wages and
benefits, discharge) against any employee who Facilities – for the benefit of the employee and
has filed any complaint or instituted any his family, for their existence and subsistence
proceeding under Title II of the LC. [Sec. 5, Rule 7-A, Book III, IRR]
g. Against False Reporting [Art. 119] Supplements – for the benefit or convenience
of the employer
It is unlawful for any person to make a
statement, report or record filed or kept Purpose Test: Under this test, if a benefit or
pursuant to the LC knowing it to be false in any privilege granted to the employee is clearly for
material respect. the employer’s convenience, it will NOT be
considered as a facility but a supplement.
3. Facilities vs. Supplements
If it is primarily for the employee’s gain, then
a. Definition the benefit is a facility; if its provision is mainly
for the employer’s advantage, then it is a
Facilities – includes articles or services for the supplement [Our Haus Realty Development
benefit of the employee or his family; Corp. v. Parian; G.R. No. 204651 (2014)].
EXCLUDES tools of the trade or articles or
service primarily for the benefit of the ER [Sec. c. Computation
5, Rule 7-A, Book III, IRR]
Value of Facilities = Cost of Operation and
Supplements – refers to extra remuneration or maintenance + Adequate depreciation +
special benefits or articles or services or tools reasonable allowance (not more than 5.5%
of the trade given to or received by laborers interest on the depreciated amount of capital
over and above their ordinary earning or wages invested by the employer)
[Sec. 5, Rule 7-A, Book III, IRR]
If the fair rental value is lower than the
Criterion: In determining whether a privilege is computed value, fair rental value will be used
a facility, the criterion is not so much its kind [Rule VII-A, Sec. 6].
but the PURPOSE for which it is given [Millares
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4. Minimum Wage worker of minimum skill or ability.
c. An ordinary worker of minimum skill or
a. Definition ability is the average worker of the
lowest producing group representing
“Statutory minimum wage” is the lowest 50% of the total number of employees
wage fixed by law that an employer can pay his engaged in similar employment in a
workers [Rules Implementing RA 6727]. particular establishment, excluding
learners, apprentices and handicapped
Payment of Statutory Minimum Wage is workers employed therein.
Mandatory d. Where the output rates established by
Lack of funds is not a valid defense from paying the employer do not conform with the
the statutory minimum wage, which is a standards prescribed herein, or with
mandatory statutory obligation. To uphold such the rates prescribed by the DOLE in an
defense of lack of available funds would render appropriate order, the employees shall
the Minimum Wage Law futile and defeat its be entitled to the difference between
purpose [De Racho v. Municipality of Ilagan, the amount to which they are entitled to
G.R. No. L-23542 (1968)]. receive under such prescribed
standards or rates and that actually
b. Nature paid them by the employer [Sec. 8,
Rule VII-A, Book III, IRR].
1. Payment by Hours Worked
From the above rules, piece rate workers may
be categorized into two:
The minimum wage rates for agricultural and
1. Those who are paid piece rates which
non-agricultural employees and workers in
are prescribed in Piece Rate Orders
each and every region of the country shall be
issued by DOLE.
those prescribed by the Regional Tripartite
Wages and Productivity Boards [Art. 99].
Wages or earnings in this category are
determined by simply multiplying the
See III. B. 2. Hours of work.
number of pieces produced by the rate
per piece [Azucena].
2. Payment by Results or Output
The Secretary of Labor and Employment shall These workers are not covered by the
regulate the payment of wages by results, Rule on Hours of Work which provides
including pakyao, piecework, and other non- for premium and overtime payments.
time work, in order to ensure the payment of
fair and reasonable wage rates, preferably See III. A. 1. a. Principles in
through time and motion studies or in determining hours worked and
consultation with representatives of workers employees exempted or not covered
and employer’s organizations [Art. 101]. for more details.
Basis of Output Pay Rate 2. Those who are paid output rates which
a. On petition of any interested party, or are prescribed by the employer and are
upon its initiative, the Department of not yet approved by the DOLE.
Labor shall use all available devices,
including the use of time and motion The number of pieces produced is multiplied by
studies and consultation with the rate per piece as determined by the
representatives of employers’ and employer.
workers’ organizations, to determine 1. If the resulting amount is equivalent to
whether the employees in any industry or more than the applicable statutory
or enterprise are being compensated in minimum daily rate in relation to the
accordance with the minimum wage number of hours worked, the worker
requirements of this Rule. will receive that amount.
b. The basis for the establishment of rates 2. If the amount is less than the applicable
for piece, output, or contract work shall legal rate, it is possible that the rates
be the performance of an ordinary per piece are not in accordance with
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the standards prescribed by the rules shall be entertained during said period [Rule
implementing the Labor Code. The IV, Sec. 4, Revised rules of Procedure on
employer is thus required by law to pay Minimum Wage Fixing].
the difference between the resulting
amount and the applicable legal Exceptions:
minimum wage rate [Azucena]. 1. When Congress itself issues a law
increasing wages.
5. Wage Distortion 2. Supervening conditions (i.e.
extraordinary increases in prices of
a. Wage Order petroleum products and basic
goods/services.
A Wage Order is issued by the Regional Board Appeal: Any party aggrieved by the Wage
based on the standards for minimum wage Order issued by the Regional Board may
fixing under Art. 124, upon investigating and appeal such order to the Commission within
studying the pertinent facts whenever ten (10) calendar days from the publication of
conditions in the region so warrant [Art. 123]. such order. It shall be mandatory for the
Commission to decide such appeal within sixty
It establishes the minimum wage rates to be (60) calendar days from the filing thereof [Art.
paid by ERs in the region, which shall in no 123].
case be lower than the applicable statutory
minimum wage rates [NWPC Rules of Effect of Appeal
Procedure on Minimum Wage Fixing]. General Rule: Does not operate to stay the
order.
Standards/Criteria in Wage Fixing
1. The demand for living wages; Exception: Party appealing such order shall
2. Wage adjustment vis-a-vis the file with the Commission an undertaking with a
consumer price index; surety/sureties (surety bond) satisfactory to the
3. The cost of living and changes or Commission for payment to employees
increases therein; affected by the order of the corresponding
4. The needs of workers and their increase in the event such order is affirmed
families; [Art. 123].
5. The need to induce industries to invest
in the countryside; Methods of Fixing
6. Improvements in standards of living; a. Floor Wage Method- fixing a
7. The prevailing wage levels; determinate amount to be added to the
8. Fair return of the capital invested and prevailing statutory minimum wage
capacity to pay of employers; rates (e.g. setting P25 increase for min.
9. Effects on employment generation and wage rates).
family income; and b. Salary-Ceiling Method- Wage
10. The equitable distribution of income adjustment to be applied to EEs
and wealth along the imperatives of receiving a certain denominated salary
economic and social development [Art. or workers being paid more than
124]. existing min. wage (e.g. WO granting
P25 increase to those earning up to
Wage Order Effectivity: After 15 days from its P250).
complete publication in at least one newspaper
of general circulation [Art. 123].
Note: Public hearing and publication are

mandatory [Cagayan Sugar Milling Co. v. Sec.
of Labor, G.R. No. 128399 (1998)].
Frequency: A WO issued by the Board may

not be disturbed for a period of 12 months from
its effectivity and no petition for wage increase
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Methods of Fixing not by management prerogative [Bankards
Employees’ Union v. NLRC, G.R. No. 140689
Floor Wage Salary Ceiling (2004)].
Adds to All wages How to Resolve Wage Distortion [Art. 124]

previous under a certain
What It Organized Establishment
minimum wage
Does a. Employer and the union shall negotiate
wage increases to to correct the distortions.
that wage b. Disputes shall be resolved through the
grievance procedure.
P456 + P100 All wages c. If still unresolved, voluntary arbitration.
= P556 under P456
Example must be Grievance Procedure (under the CBA) → if
increased to unresolved, VOLUNTARY arbitration
P556
Unorganized Establishment
a. ERs and EEs shall endeavor to correct
b. Wage Distortion such distortions
b. Disputes shall be settled through the
Wage distortion/ rectification is a situation National Conciliation and Mediation
where an increase in prescribed wage rates Board
results in the elimination or severe contraction c. If still unresolved after 10 calendar
of intentional quantitative differences in wage days of conciliation, it shall be referred
or salary rates between and among employee to the appropriate branch of the NLRC
groups in an establishment as to effectively – compulsory arbitration
obliterate the distinctions embodied in such Both the employer and employee cannot
wage structure based on skills, length of use economic weapons.
service, or other logical bases of differentiation d. Employer cannot declare a lock-out;
[Art. 124]. Employee cannot declare a strike
because the law has provided for a
Elements of Wage Distortion procedure for settling
1. Existing hierarchy of positions with e. The salary or wage differential does not
corresponding salary rates; need to be maintained [National
2. A significant change in the salary rate Federation of Labor v. NLRC, G.R. No.
of a lower pay class without a 103586 (1994)]
concomitant increase in the salary rate
of a higher one (must be caused by a National Conciliation and Mediation Board → if
wage order) [Philippine Geothermal unresolved, COMPULSORY arbitration by the
Inc. v. Chevron, G.R. No. 190187 NLRC
(2018)];
3. The elimination of the distinction CBA vis-à-vis Wage Orders – CBA
between the two levels; and Creditability
4. The existence of the distortion in the In determining an employee’s regular wage,
same region of the country the pertinent stipulations in the CBA are
[Prubankers Assn. v. Prudential Bank controlling, provided the result is not less than
and Co., G.R. No. 131247 (1999)]. the statutory requirement [Philippine National
Bank v. PEMA, G.R. No. L-30279 (1982)].
The implementation of wage orders in one
region but not in others does not in itself Note: The manner of resolving wage distortion
necessarily result in wage distortion is largely based on the applicable wage order.
[Prubankers Assn. v. Prudential Bank and Co., The current one for NCR, WO 20, refers to the
G.R. No. 131247 (1999)]. procedure in Art. 124 of the Labor Code.
Wage distortion can only exist where the wage

adjustment is brought about by a wage order,
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6. Non-Diminution of Benefits D. Leaves
General Rule: There is a prohibition against 1. Service Incentive Leave
elimination or diminution of benefits [Art. 100].
Coverage
No wage order issued by any regional board Every employee who has rendered at least one
shall provide for wage rates lower than the year of service shall be entitled to a yearly
statutory minimum wage rates prescribed by service incentive leave of five days with pay
Congress [Art. 127, as amended by RA 6727]. [Art. 95(a)].
Requisites Service Incentive Leave DOES NOT apply to

If the following are met, then the employer the following employees:
cannot remove or reduce benefits [Vergara Jr. a. Those of the government and any of its
v. Coca-Cola Bottlers Phils, G.R. No. 176985 political subdivisions, including
(2013)]: GOCCs;
a. Ripened company policy – Benefit is b. Domestic helpers and persons in the
founded on a policy which has ripened personal service of another;
into a practice over a long period c. Managerial employees as defined in
b. Practice is consistent and deliberate Book III of this Code;
c. Not due to error in the construction or d. Field personnel and other employees
application of a doubtful or difficult whose performance is unsupervised by
question of law [Globe Mackay Cable the employer including those who are
v. NLRC, G.R. No. L-74156 (1988)] engaged on task or contract basis,
d. The diminution or discontinuance is purely commission basis, or those who
done unilaterally by the employer are paid a fixed amount for performing
work irrespective of the time consumed
When not applicable: At least one of the in the performance thereof;
requisites is absent. e. Those who are already enjoying the
a. Mistake in the application of the law benefit herein provided;
[Globe Mackay Cable v. NLRC, supra] f. Those enjoying vacation leave with pay
b. Negotiated benefits [Azucena] of at least 5 days;
c. Reclassification of Positions – e.g. loss g. Those employed in establishments
of some benefits by promotion regularly employing less than 10
d. Contingent or Conditional Benefits – employees [Sec. 1, Rule V, Book III,
the rule does not apply to a benefit IRR].
whose grant depends on the existence
of certain conditions, so that the benefit Piece-rate employees are entitled to service
is not demandable if those incentive leave pay provided that they are
preconditions are absent supervised. If they are unsupervised, they are
not entitled to SIL [Labor Congress of the Phils.
Benefits initiated through negotiation between v. NLRC, G.R. No. 123938 (1998)].
Employee and Employer, e.g. CBA, can only
be eliminated or diminished bilaterally. Teachers of private schools on contract basis
are entitled to service incentive leave [Cebu
Institute of Technology v. Ople, G.R. No. L-
58870 (1987)].
The law grants an annual SIL of five days to

domestic workers, but their SIL shall not be
converted to cash or carried over to
succeeding years [Sec. 29, RA 10361].
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Meaning of “1 year of Service” 2. Expanded Maternity Leave (R.A.
General Rule: "At least one year service" shall No. 11210)
mean service for NOT LESS than 12 months,
whether continuous or broken, reckoned from
the date the employee started working, Expanded Maternity Leave – Maternity leave
including authorized absences and paid of 105 days with full pay, with an option to
regular holidays. extend for an additional 30 days without pay
[Sec. 3, RA 11210].
Exception: Service for LESS than 12 months
is counted as “at least one year service” when: Coverage
a. The working days of the establishment, Every female worker in government and the
as a matter of practice or policy, is less private sector, including those in the informal
than 12 months; or economy, regardless of civil status or the
b. The employment contract provides legitimacy of her child, is entitled to maternity
working days that are less than 12 leave benefits.
months [Sec. 3, Rule V, Book III, IRR].
This is applicable to pregnancy and
Arbitration or Administrative Action miscarriage, or emergency termination of
The grant of benefit IN EXCESS of that pregnancy, regardless of frequency [Sec. 3,
provided herein shall not be made a subject of RA 11210].
arbitration or any court or administrative action
[Art. 95 (c)]. Maternity Leave for Female Workers in
Private Sector, Requisites:
Commutable Nature of Benefit a. Contribution: The female worker must
The service incentive leave shall be have paid at least 3 monthly contributions
commutable to its money equivalent if not used in the 12-month period immediately
or exhausted at the end of the year [Sec. 5, preceding the semester of her childbirth,
Rule V, Book III, IRR]. miscarriage, or emergency termination of
pregnancy.
When Entitled EE’s Cause of Action
In determining the female member’s
Accrues
entitlement to the benefit, the SSS shall
a. If the employee did not make use of
consider only those contributions paid
said leave credits but instead chose
prior to the semester of contingency; and
to avail of its commutation into
money: The cause of action to claim
b. Notice: The female worker shall have
his SIL pay accrues from the moment
notified her employer of her pregnancy
the employer refuses to remunerate its
and the probable date of her childbirth,
monetary equivalent.
which notice shall be transmitted to the
b. If the employee wishes to
SSS in accordance with the rules and
accumulate his leave credits and
regulations it may provide [Sec. 1, Rule VI,
opts for its commutation upon his
IRR of RA11210].
resignation or separation from
employment: The cause of action to
claim the whole amount of his Maternity Leave Benefit After Termination
accumulated SIL shall arise when the of Employment Possible
employer fails to pay such amount at General Rule: Maternity leave with full pay
the time of his resignation or separation shall be granted even if the childbirth,
from employment [Auto Bus Transport miscarriage, or emergency termination of
v. NLRC, G.R. No. 156367 (2005)]. pregnancy occurs not more than 15 calendar
days after the termination of an employee’s
service.
Exception: When the employment of the

pregnant woman worker has been terminated
without just cause, the employer must pay her
the full amount equivalent to her salary for 105
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days for childbirth and 60 days for miscarriage The allocated benefit granted to the child’s
and emergency termination of pregnancy father is over and above the paternity benefits
based on her full pay, in addition to the other provided under RA 8187 (Paternity Leave Act).
applicable daily cash maternity benefits that
she should have received had her employment In case of death, absence, or incapacity of the
not been illegally terminated [Sec. 5, Rule IV, child’s father, the female worker may allocate
IRR of RA 11210]. to an alternate caregiver who may be:
a. A relative within the 4th degree of
Benefit Received consanguinity; or
A daily maternity benefit equivalent to 100% of b. The current partner, regardless of sexual
her average daily salary credit for: orientation or gender identity, of the
a. 105 days in cases of live childbirth female worker sharing the same
b. 60 days in cases of miscarriage or household.
emergency termination of pregnancy.
The option to allocate maternity leave credits
The maternity leave can be credited as shall not be applicable in cases of miscarriage
combinations of prenatal and postnatal leave or emergency termination of pregnancy [Sec.
as long as it does not exceed 105 days or 60 1, Rule VIII, IRR of RA 11210].
days as the case may be. In no case shall
postnatal care be less than 60 days [Sec. 2, Death or Permanent Incapacity
Rule IV, IRR of RA 11210]. If the female worker dies or becomes
permanently incapacitated, the balance of her
In case the employee qualifies as a solo parent maternity leave benefits shall accrue to the
(See D. 4. on Parental Leave for Solo Parents child’s father or to a qualified alternate
below), the employee shall be paid an caregiver subject to the following conditions:
additional maternity benefit of 15 days [Sec. 5 a. That the maternity leave benefits have not
(a), RA 11210]. yet been commuted to cash, if applicable;
and
Extended Maternity Leave Option, b. That a certified true copy of the death
Requisite Notice certificate or medical certificate or abstract
In cases of live childbirth, an additional is provided to the employers of both the
maternity leave of 30 days, without pay, can be female worker and the child’s father or
availed of, at the option of the female worker, alternate caregiver.
provided that the employer shall be given
notice. In case the maternity leave benefits have
already been paid to the female worker in full,
Due notice must be in writing must be given at the child’s father or alternate caregiver shall be
least 45 days before the end of the female entitled to enjoy the remaining unexpired leave
worker’s maternity leave. credits of the female worker, if any.
Exception: No prior notice shall be necessary Provided, That such leave without pay shall not
in the event of a medical emergency, but be considered a gap in the service of the child’s
subsequent notice shall be given to the father or alternate caregiver [Sec. 4, Rule VIII,
employer. IRR of RA 11210].
The period of extended maternity leave without Other Conditions

pay shall not be considered a gap in the service a. Employer shall advance the full payment
[Sec. 3, Rule IV, IRR of RA 11210]. subject to reimbursement by the SSS
within 30 days from filing of leave
Allocation of Maternity Leave Credits application [Sec. 3, Rule VI, IRR of RA
A female worker entitled to maternity leave 11210].
benefits may, at her option, allocate up to 7 b. SSS shall immediately reimburse the
days of said benefits to the child’s father, employer the maternity benefits advanced
whether or not the father is married to the to the employed female member, only to
mother. the extent of 100% of her average daily
salary credit for 105 days, 120 days or 60
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days, as the case may be, upon receipt of RA 8187]. If the spouses are not physically
satisfactory and legal proof of such living together because of the workstation or
payment [Sec. 4, Rule VI, IRR of RA occupation, the male employee is still entitled
11210]. to the paternity leave benefit.
c. Availment shall be a bar to the recovery of
sickness benefits provided under RA 1161 Usage of the Benefit
(Social Security Law) for the same period Usage of the leave shall be after the delivery,
for which daily maternity benefits have without prejudice to an employer’s policy of
been received [Sec. 6, Rule VI, RA allowing the employee to avail of the benefit
11210]. before or during the delivery, provided that the
d. Sanction: That if an employee should total number of days shall not be more than 7
give birth or suffer miscarriage or days for each covered delivery [Sec. 5, IRR,
emergency termination of pregnancy: RA 8187].
1. Without the required contributions
having been remitted for her by her Conditions for Entitlement [Sec. 3, IRR, RA
employer to the SSS, or 8187]
2. Without the latter having been a. He is married;
previously notified by the ER of time of b. He is an employee at the time of the
the pregnancy, the employer shall pay delivery of his child;
to the SSS damages equivalent to the c. He is cohabiting with his spouse at the
benefits which said employee would time that she gives birth or suffers a
otherwise have been entitled to [Sec. miscarriage;
5, RA 11210]. d. He has applied for paternity leave with his
ER within a reasonable period of time from
3. Paternity Leave (R.A. No. 8187) the expected date of delivery by his
pregnant spouse, or within such period as
Paternity Leave – leave of 7 calendar days may be provided by company rules and
with full pay for every married male employee regulations, or by CBA; and
in the private and public sectors. e. His wife has given birth or suffered a
miscarriage.
Coverage and Purpose
Paternity leave is granted to all married male Application for Paternity Leave
employees in the private and public sectors, See d. under conditions for entitlement.
regardless of their employment status (e.g.
probationary, regular, contractual, project In case of miscarriage, prior application for
basis). paternity leave shall not be required [Sec. 4,
IRR, RA 8187].
The purpose of this benefit is to allow the
husband to lend support to his wife during her Non-Conversion to Cash
period of recovery and/or in nursing her In the event that the paternity leave is not
newborn child [Sec. 3, RA 8187]. availed of, it shall not be convertible to cash
and shall not be cumulative [Sec. 7, IRR, RA
Benefit 8187].
It shall be for 7 calendar days, with full pay,
consisting of basic salary and mandatory Crediting of Existing Benefits
allowances fixed by the Regional Wage Board, a. If the existing paternity leave benefit under
if any, provided that his pay shall not be less the CBA, contract, or company policy is
than the mandated minimum wage [Sec. 2, RA greater than 7 calendar days as provided
8187]. for in RA 8187, the greater benefit shall
prevail.
It shall apply to the first 4 deliveries of the b. If the existing paternity leave benefit is
employee’s lawful wife with whom he is less than that provided in RA 8187, the ER
cohabiting. shall adjust the existing benefit to cover
the difference [Sec. 9, IRR, RA 8187].
Cohabiting means the obligation of the
husband and wife to live together [Sec. 1, IRR,
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Where a company policy, contract, or CBA disappearance, or prolonged absence of
provides for an emergency or contingency the parents or solo parent for at least one
leave without specific provisions on paternity (1) year [Sec. 3 (a), RA 8972].
leave, the ER shall grant to the employee 7
calendar days of paternity leave [Sec. 9, IRR, Conditions for Entitlement
RA 8187]. A solo parent employee shall be entitled to the
parental leave under the following conditions:
4. Parental Leave for Solo Parents a. He/she has rendered at least one (1) year
(R.A. No. 8972) of service, whether continuous or broken;
b. He/she has notified his/her employer that
Parental leave for solo parents – Leave he/she will avail himself/herself of it, within
benefits granted to a solo parent to enable a reasonable period of time; and
him/her to perform parental duties and c. He/she has presented to his/her employer
responsibilities where physical presence is a Solo Parent Identification Card, which
required [Sec. 3 (d), RA 8972]. may be obtained from the DSWD office of
the city or municipality where he/she
Coverage resides [Sec. 19, Art. V, IRR, RA 8972].
Any solo parent or individual who is left alone
with the responsibility of parenthood due to: Availment
a. Giving birth as a result of rape or and other The parental leave is in addition to leave
crimes against chastity even without a privileges under existing laws with full pay,
final conviction of the offender: Provided, consisting of basic salary and mandatory
That the mother keeps and raises the allowances. It shall not be more than seven (7)
child; working days every year [Sec. 8, RA 8972].
b. Death of spouse;
c. Spouse is detained or is serving sentence Grant of Flexible Work Schedule
for a criminal conviction for at least one (1) The employer shall provide for a flexible
year; working schedule for solo parents: Provided,
d. Physical and/or mental incapacity of That the same shall not affect individual and
spouse as certified by a public medical company productivity: Provided, further, That
practitioner; any employer may request exemption from the
e. Legal separation or de facto separation above requirements from the DOLE on certain
from spouse for at least one (1) year: meritorious grounds [Sec. 6, RA 8972].
Provided, that he/she is entrusted with the
custody of the children; Protection Against Work Discrimination
f. Declaration of nullity or annulment of No employer shall discriminate against any
marriage as decreed by a court or by a solo parent employee with respect to terms and
church: Provided, that he/she is entrusted conditions of employment on account of his/her
with the custody of the children; status [Sec. 7, RA 8972].
g. Abandonment of spouse for at least one
(1) year; 5. Leave Benefits for Women Workers
h. Unmarried father/mother who has
preferred to keep and rear his/her a. Gynecological Leave (R.A. No. 9710)
child/children, instead of having others
care for them or give them up to a welfare Gynecological Leave - A female employee’s
institution; leave entitlement of two (2) months with full pay
i. Any other person who solely provides from her employer based on her gross monthly
parental care and support to a child or compensation following surgery caused by
children: Provided, that he/she is duly gynecological disorders, provided that she has
licensed as a foster parent by the rendered continuous aggregate employment
Department of Social Welfare and service of at least six (6) months for the last 12
Development (DSWD) or duly appointed months.
legal guardian by the court; and
j. Any family member who assumes the
responsibility of head of family as a result
of the death, abandonment,
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Gynecological Disorders Application for Special Leave Before
Disorders that would require surgical Surgery
procedures such as, but not limited to: The employee shall file her application for
1. Dilatation and curettage; leave with her employer within a reasonable
2. Those involving female reproductive period of time from the expected date of
organs such as the vagina, cervix, surgery, or within such period as may be
uterus, fallopian tubes, ovaries, breast, provided by company rules and regulations or
adnexa and pelvic floor, as certified by by CBA.
a competent physician;
3. Hysterectomy, ovariectomy, and Application for Special Leave After
mastectomy. Surgery
Prior application for leave shall not be
Gross Monthly Compensation necessary in cases requiring emergency
The monthly basic pay plus mandatory surgical procedure, provided that the employer
allowances fixed by the regional wage boards shall be notified verbally or in written form
[Sec. 7, Rule II, IRR, RA 9710]. within a reasonable period of time and provided
further that after the surgery or appropriate
Basic Requirement recuperating period, the female employee shall
The woman employee should have been with immediately file her application using the
the company for 12 months prior to surgery. An prescribed form [Sec. 3, D.O. No. 112].
aggregate service of at least six (6) months
within the said 12-month period is sufficient to Period of Entitlement
entitle her to avail of the special leave benefit. The 2 months special leave is the maximum
period of leave with pay that a woman
Employment service includes absences with employee may avail of under RA 9710.
pay such as use of other mandated leaves,
company-granted leaves and maternity leaves. For purposes of determining the period of leave
with pay that will be allowed to a female
Competent Physician employee, the certification of a competent
A medical doctor preferably specializing in physician as to the required period of
gynecological disorders or is in the position to recuperation shall be controlling [Sec. 4, D.O.
determine the period of recuperation of the No. 112, as amended].
woman employee [Sec. 1, D.O. No. 112, as
amended (Guidelines Governing the Availment
Implementation of the Special Leave Benefits The special leave shall be granted to the
for Women Employees in the Private Sector)]. qualified employee after she has undergone
surgery [Sec. 5, D.O. No. 112, as amended].
Conditions for Entitlement
Any female employee, regardless of age and Frequency of Availment
civil status, shall be entitled to a special leave A woman employee can avail of the SLB for
benefit, provided she has complied with the every instance of surgery due to gynecological
following conditions: disorder for a maximum total period of 2
1. She has rendered at least 6 months months per year [Sec. 6, D.O. No. 112, as
continuous aggregate employment amended].
service for the last 12 months prior to
surgery; Special Leave Benefit vis-à-vis SSS
2. She has filed an application for special Sickness Benefit
leave; The SLB is different from the SSS sickness
3. She has undergone surgery due to benefit. The former is granted by the employer
gynecological disorders as certified by a in accordance with RA 9710.
competent physician [Sec. 2, D.O. No.
112]. It is granted to a woman employee who has
undergone surgery due to gynecological
disorder. The SSS sickness benefit, on the
other hand, is administered and given by the
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SSS in accordance with RA 1161 as amended When Denied; Employer’s Liability
by RA 8282 [Sec. 7, D.O. No. 112, as The employer/agency head who denies the
amended]. application for leave, and who shall prejudice
the victim-survivor or any person for assisting
b. Battered Woman Leave (R.A. No. a co-employee who is a victim-survivor under
9262) the Act shall be held liable for discrimination
and violation of R.A 9262 [Sec. 42, Rule VI,
Victims of any of the acts covered by VAWC IRR].
shall be entitled to take a paid leave of absence
up to ten (10) days in addition to other paid E. Special Groups of Employees
leaves under the Labor Code and Civil Service
Rules and Regulations, extendible when the 1. Women
necessity arises as specified in the protection
order [Sec. 43, RA 9262]. a. Discrimination
Acts Covered by VAWC It shall be unlawful for any employer to
1. “Physical violence” - refers to acts that discriminate against any woman employee with
include bodily or physical harm. respect to terms and conditions of employment
2. “Sexual violence” - refers to an act which solely on account of her sex.
is sexual in nature, committed against a
woman or her child. The following are acts of discrimination:
3. “Psychological violence” - acts or 1. Payment of a lesser compensation,
omissions causing or likely to cause including wage, salary or other form of
mental or emotional suffering of the victim. remuneration and fringe benefits, to a
4. “Economic abuse” - acts that make or female employee as against a male
attempt to make a woman financially employee, for work of equal value; and
dependent. 2. Favoring a male employee over a
female employee with respect to
Note: To fall under VAWC, the offender must promotion, training opportunities, study
have had a sexual or dating relationship with and scholarship grants solely on
the offended woman. account of their sexes [Art. 133].
When Availed Of The Magna Carta of Women provides that the
A victim leave may be availed of at any time State:
during the application of any protection order, 1. Condemns discrimination against
investigation, prosecution and/or trial of the women in all its forms.
criminal case [Sec. 42, Rule VI, IRR]. 2. Pursues by all appropriate means and
without delay the policy of eliminating
Requirement discrimination against women in
In order to be entitled to the leave benefit, the keeping with the Convention on the
only requirement is for the victim-employee to Elimination of All Forms of
present to her employer a certification from the Discrimination Against Women
barangay chairman (Punong Barangay) or (CEDAW) and other international
barangay councilor (barangay kagawad) or instruments consistent with Philippine
prosecutor or the Clerk of Court, as the case law.
may be, that an action relative to the matter is 3. Shall accord women the rights,
pending [Sec. 42, Rule VI, IRR]. protection, and opportunities available
to every member of society.
The usage of the ten-day leave shall be at the 4. Shall take steps to review and, when
option of the woman employee. In the event necessary, amend and/or repeal
that the leave benefit is not availed of, it shall existing laws that are discriminatory to
not be convertible into cash and shall not be women within three (3) years from the
cumulative [Sec. 42, Rule VI, IRR]. effectivity of this Act [Sec. 2 & Sec. 12,
Magna Carta of Women].
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b. Stipulation Against Marriage (Article held as valid [Duncan Association of Detailman
134, Labor Code) v. Glaxo Wellcome, supra].
It shall be unlawful for an employer to: c. Prohibited Acts (Art. 135, Labor
1. require as a condition of employment Code)
or continuation of employment that a
woman employee shall not get married, 1. Discharge to prevent enjoyment of
or benefits - to deny any woman
2. stipulate expressly or tacitly that upon employee the benefits provided for in
getting married a woman employee this Chapter or to discharge any
shall be deemed resigned or separated woman employed by him for the
or purpose of preventing her from
3. actually dismiss, discharge, enjoying any of the benefits provided
discriminate or otherwise prejudice a under this Code [Art. 135 (1), Labor
woman employee merely by reason of Code, as amended by R.A. 6725]
her marriage [Art. 134, Labor Code; 2. Discharge on account of pregnancy-
Duncan Assoc of Detailman – PTGWO to discharge such woman on account
v. Glaxo Wellcome, G.R. No. 162994 of her pregnancy, while on leave or in
(2004)]. confinement due to her pregnancy [Art.
135 (2), Labor Code]
The Magna Carta of Women protects women 3. Discharge or refusal of the
against discrimination in all matters relating to admission to work - to discharge or
marriage and family relations, including the refuse the admission of such woman
right to choose freely a spouse and to enter into upon returning to her work for fear that
marriage only with their free and full consent. she may again be pregnant [Art. 135
(3), Labor Code]
Bona fide occupational qualification exception 4. Discharge on account of testimony -
While a marriage or no-marriage qualification to discharge any woman or child or any
may be justified as a "bona fide occupational other employee for having filed a
qualification," the employer must prove two complaint or having testified or being
factors necessitating its imposition, viz: about to testify under the Code [Sec. 13
1. that the employment qualification is (d), Rule XII, Book III, IRR]
reasonably related to the essential 5. Expulsion of Women faculty/female
operation of the job involved; and student due to pregnancy outside of
2. that there is a factual basis for believing Marriage - expulsion and non-
that all or substantially all persons readmission of women faculty due to
meeting the qualification would be pregnancy outside of marriage shall be
unable to properly perform the duties of outlawed. No school shall turn out or
the job [Capin-Cadiz v. Brent Hospital refuse admission to a female student
and Colleges, Inc., G.R. No. 187417 solely on the account of her having
(2016)]. contracted pregnancy outside of
marriage during her term in school
When the employer can prove that the [Sec. 13(c), RA 9710]
reasonable demands of the business require a
distinction based on marital status, and there is
no better available or acceptable policy which
would better accomplish the business purpose,
an ER may discriminate against an EE based
on the identity of the EE’s spouse [Star Paper
Corp. v. Simbol, G.R. No. 164774 (2006)].
A personal or marital relationship with an

employee of a competitor might compromise
the interests of the company. Thus an
employer policy prohibiting the same may be
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2. Minors (R.A. No. 7610, as amended c. Prohibited Acts
by R.A. No. 9231)
No child shall be engaged in the worst forms of
a. Child Labor vs. Working Child child labor. The phrase "worst forms of child
labor" shall refer to any of the following:
1. All forms of slavery, as defined under
Child Labor Working Child the "Anti-trafficking in Persons Act of
2003", or practices similar to slavery
Refers to any work or Refers to any child such as sale and trafficking of children,
economic activity engaged as follows: debt bondage and serfdom and forced
performed by a child 1. when the child is or compulsory labor, including
that subjects him/her below eighteen (18) recruitment of children for use in armed
to any form of years of age, in conflict; or
2. The use, procuring, offering or
exploitation or is work or economic
exposing of a child for prostitution, for
harmful to his/her activity that is not the production of pornography or for
health and safety or child labor as pornographic performances; or
physical, mental or defined in the 3. The use, procuring or offering of a child
psychosocial immediately for illegal or illicit activities, including
development. preceding the production and trafficking of
dangerous drugs and volatile
subparagraph; and
substances prohibited under existing
2. when the child is laws; or
below fifteen (15) 4. Work which, by its nature or the
years of age, in circumstances in which it is carried out,
work where he/she is hazardous or likely to be harmful to
is directly under the the health, safety or morals of children,
responsibility of such that it:
a. Debases, degrades or
his/her parents or
demeans the intrinsic worth
legal guardian and and dignity of a child as a
where only human being; or
members of the b. Exposes the child to physical,
child‘s family are emotional or sexual abuse, or
employed; or in is found to be highly stressful
public psychologically or may
prejudice morals; or
entertainment or
c. Is performed underground,
information [Sec. 3, underwater or at dangerous
D.O. No. 65-04] heights; or
d. Involves the use of dangerous
machinery, equipment and
tools such as power-driven or
b. Allowed Working Hours and explosive power-actuated
Industries of a Working Child tools; or
e. Exposes the child to physical
Age Bracket Daily Max Weekly Max danger such as, but not limited
to the dangerous feats of
Below 15 y/o 4 hrs 20 hrs balancing, physical strength or
contortion, or which requires
the manual transport of heavy
15 to below 8 hrs 40 hrs loads; or
18 y/o f. Is performed in an unhealthy
environment exposing the child
to hazardous working
conditions, elements,
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substances, co-agents or 3. Kasambahay (R.A. No. 10361)
processes involving ionizing,
radiation, fire, flammable Domestic work - This refers to work
substances, noxious performed in or for a household or households
components and the like, or to [Sec 4(c)., RA 10361].
extreme temperatures, noise
levels, or vibrations; or Household - refers to the immediate members
g. Is performed under particularly of the family or the occupants of the house that
difficult conditions; or" are directly provided services by the domestic
h. Exposes the child to biological worker [Sec 4(f), RA 10361].
agents such as bacteria, fungi,
viruses, protozoans, Domestic worker or “Kasambahay” - Refers
nematodes and other to any person engaged in domestic work within
parasites; or an employment relationship such as, but not
i. Involves the manufacture or limited to, the following: general househelp,
handling of explosives and nursemaid or “yaya”, cook, gardener, or
other pyrotechnic products laundry person [Sec 4(d), RA 10361].
[Section 12-D, R.A. 7610, as
amended by R.A. 9231]. The term domestic worker or “kasambahay”
5. No child shall be employed as a model excludes any person who performs domestic
in any advertisement directly or work only occasionally or sporadically and not
indirectly promoting alcoholic on an occupational basis [Sec.4(d), RA 10361].
beverages, intoxicating drinks, tobacco
and its byproducts, gambling or any Note: IRR, Sec. 2 does not include family
form of violence or pornography drivers.
[Section 14, R.A. 7610, as amended by
R.A. 9231]. Minimum Wage
The minimum wage of domestic workers shall
The Following are Hazardous Workplaces: not be less than the following:
1. Mining and Quarrying; a. P2,500 a month for those employed in
2. Construction; NCR
3. Transportation and Storage; b. P2,000 a month for those employed in
4. Water Supply; Sewerage, Waste chartered cities and first-class
Management and Remediation municipalities
Activities; c. P1,500 a month for those employed in
5. Forestry and Logging; other municipalities
6. Fishing and Aquaculture;
7. Hunting, Trapping and Related Service Within one year from the effectivity of RA
Activities; 10361, and periodically thereafter, the
8. Security and Investigation; Regional Board shall review, and if proper,
9. Manufacturing of alcoholic beverages, determine and adjust the minimum wage rates
tobacco, pyrotechnics, weapons, of domestic workers [Sec. 24, RA 10361].
rubber, plastic or chemical products;
10. Certain Farming and Animal Produce Standard of Treatment
Activities [DO 149-16, as amended by The employer or any member of the household
Sec. 6 DO 149-A-17] shall not subject a domestic worker or
“kasambahay” to any kind of abuse nor inflict
any form of physical violence or harassment or
any act tending to degrade the dignity of a
domestic worker [Sec. 5, RA 10361].
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Board, Lodging and Medical Attendance Rest Periods
The employer shall provide for the basic Daily Rest Period: 8 hours
necessities of the domestic worker to include:
a. At least three adequate meals a day Weekly Rest Period: at least 24 consecutive
b. Humane sleeping arrangements that hours. The employer and employee may agree
ensure safety to:
c. Appropriate rest and assistance in a. Offsetting a day of absence with a
case of illnesses and injuries sustained particular rest day;
during service without loss of benefits b. Waiving a particular rest day in return
[Sec. 6, RA 10361]. for an equivalent daily rate of pay;
c. Accumulating rest days not exceeding
Privacy five (5) days; or
Respect for the privacy of the domestic worker d. Other similar arrangements [Sec. 20,
shall be guaranteed at all times and shall 21, RA 10361].
extend to all forms of communication and
personal effects [Sec. 7, RA 10361]. Pre-Employment Requirement
Prior to the execution of the employment
Access to Outside Communication contract, the employer may require the
The employer shall grant the domestic worker following from the domestic worker:
access to outside communication during free a. Medical certificate or a health
time: Provided, That in case of emergency, certificate issued by a local
access to communication shall be granted government health officer;
even during work time [Sec. 8, RA 10361]. b. Barangay and police clearance;
c. National Bureau of Investigation (NBI)
Education and Training clearance; and
The employer shall afford the domestic worker d. Duly authenticated birth certificate or if
the opportunity to finish basic education and not available, any other document
may allow access to alternative learning showing the age of the domestic
systems and, as far as practicable, higher worker such as voter’s identification
education or technical and vocational training card, baptismal record or passport.
[Sec. 9, RA 10361].
However, Sec. 12(a), (b), (c) and (d) shall be
Social and Other Benefits standard requirements when the employment
A domestic worker who has rendered at least of the domestic worker is facilitated through the
one (1) month of service shall be covered by PEA.
the Social Security System (SSS), the
Philippine Health Insurance Corporation The cost of the foregoing shall be borne by the
(PhilHealth), and the Home Development prospective employer or agency, as the case
Mutual Fund or Pag-IBIG, and shall be entitled may be [Sec. 12, RA 10361].
to all the benefits in accordance with the
pertinent provisions provided by law. Pre-Employment Prohibition
The following shall be unlawful:
Leave Benefits a. Charging any share in the recruitment
A domestic worker who has rendered at least or finder’s fees against the domestic
one (1) year of service shall be entitled to an worker by a private employment
annual service incentive leave of five (5) days agency or third party [Sec. 13, RA
with pay [Sec. 29, RA 10361]. 10361].
b. Requiring a domestic worker to make
deposits from which deductions shall
be made for the reimbursement of loss
or damage to tools, materials, furniture
and equipment in the household [Sec.
14, RA 10361].
c. Placing the domestic worker under
debt by the employer or any person
acting on behalf of the employer to
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place the domestic worker under debt Daily Rest Period: Aggregate of eight (8)
bondage [Sec. 15, RA 10361]. hours per day [Sec. 20, RA 10361].
Time and Manner of Payment Employment Certification: ER shall give the

Payment of wages shall be made: househelper a written statement of the nature
a. Directly to the domestic worker in cash and duration of the service and his or her work
b. At least once a month performance as house helper upon severance
c. With no deductions from the wages [Sec. 35, RA 10361].
other than that which is mandated by
law, unless allowed by the domestic Termination
worker through a written consent
Initiated By the Domestic Worker
No employer shall pay the wages of a domestic The domestic worker may terminate the
worker by means of promissory notes, employment relationship at any time before the
vouchers, coupons, tokens, tickets, chits, or expiration of the employment contract for any
any object other than the cash wage as of the following causes:
provided for under this Act [Sec. 25, RA a. Verbal or emotional abuse of the
10361]. domestic worker by the employer or
any member of the household;
Payslip b. Inhuman treatment including physical
The employer shall at all times provide the abuse of the domestic worker by the
domestic worker with a copy of the pay slip employer or any member of the
containing the amount paid in cash every pay household;
day, and indicating all deductions made, if any. c. Commission of a crime or offense
The copies of the pay slip shall be kept by the against the domestic worker by the
employer for a period of three (3) years [Sec. employer or any member of the
26, RA 10361]. household;
d. Violation by the employer of the terms
Wage Prohibitions and conditions of the employment
It shall be unlawful for the original employer to contract and other standards set forth
charge any amount from the said household under this law;
where the service of the domestic worker was e. Any disease prejudicial to the health of
temporarily performed [Sec. 23, RA 10361]. the domestic worker, the employer, or
member/s of the household; and
Other Prohibited Acts f. Other causes analogous to the
a. Interference in employee’s wage foregoing [Sec. 33, RA 10361].
disposal [Sec. 27, RA 10361]
b. Direct or indirect withholding of wages Initiated by The Employer
by the employer [Sec. 28, RA 10361] An employer may terminate the services of the
c. Payment in forms other than cash [Sec. domestic worker at any time before the
25, RA 10361] expiration of the contract, for any of the
following causes:
Right against assignment to non- household a. Misconduct or willful disobedience by
work at a wage rate lower than that mandated the domestic worker of the lawful order
for agricultural or non-agricultural enterprises of the employer in connection with the
depending on the case [Sec. 22, RA 10361]. former’s work;
b. Gross or habitual neglect or
Employment Age of Domestic Workers inefficiency by the domestic worker in
Unlawful to employ any person below fifteen the performance of duties;
(15) years of age as a domestic worker [Sec. c. Fraud or willful breach of the trust
16, RA 10361]. reposed by the employer on the
domestic worker;
Persons between 15-18 years old should only d. Commission of a crime or offense by
be employed in non-hazardous work [D.O. No. the domestic worker against the person
4-99 Sec. 4]. of the employer or any immediate
member of the employer’s family;
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e. Violation by the domestic worker of the 4. Homeworkers
terms and conditions of the
employment contract and other a. Rights and Benefits
standards set forth under this law;
f. Any disease prejudicial to the health of 1. Right to form, join or assist
the domestic worker, the employer, or organizations [Sec. 3, Rule XIV, Book
member/s of the household; and III, IRR]
g. Other causes analogous to the 2. Right to acquire legal personality and
foregoing [Sec. 34, RA 10361]. the rights and privileges granted by law
to legitimate labor organizations upon
Employment Certification issuance of the certification of
Upon the severance of the employment registration [Sec. 4, Rule XIV, Book III,
relationship, the employer shall issue the IRR]
domestic worker within five (5) days from 3. Immediate payment upon employer’s
request a certificate of employment indicating receipt of finished goods or articles
the nature, duration of the service and work [Sec. 6, Rule XIV, Book III, IRR]
performance [Sec. 35, RA 10361]. 4. SSS, MEDICARE and ECC premium
contributions shall be deducted from
Unjust Dismissal their pay and shall be remitted by
Neither the domestic worker nor the employer ER/contractor/subcontractor to the
may terminate the contract before the SSS [Sec. 6, Rule XIV, Book III, IRR]
expiration of the term except for grounds
provided in Secs. 33 and 34 of RA 10361. b. Employer Liability
If the domestic worker is unjustly dismissed, 1. Employer may require homeworker to
the domestic worker shall be paid the redo work improperly executed without
compensation already earned plus the additional pay [Sec. 9(a), Rule XIV,
equivalent of 15 days work by way of indemnity Book III, IRR]
[Sec. 32, RA 10361]. 2. Employer need not pay homeworker
for any work done on goods or articles
Leaving Without Justifiable Reason by the not returned due to homeworker’s fault
Domestic Worker [Sec. 9(b), Rule XIV, Book III, IRR]
a. Any unpaid salary due not exceeding 3. If subcontractor/contractor fails to pay
the equivalent 15 days work shall be homeworker, employer is jointly and
forfeited AND severally liable with the former to the
b. The employer may recover from the homeworker for his/her wage [Sec. 11,
domestic worker the costs incurred Rule XIV, Book III, IRR]
related to the deployment expenses, if 4. Employer shall assist the homeworkers
any: Provided, that the service has in the maintenance of basic safe and
been terminated within 6 months from healthful working conditions at the
the domestic worker’s employment homeworkers’ place of work [Sec. 11,
[Sec. 32, RA 10361]. Rule XIV, Book III, IRR]
Notice to End the Working Relationship Regional Office shall provide technical
If the duration of the domestic service is not assistance to registered homeworkers’
determined either in stipulation or by the nature organizations [Sec. 14, Rule XIV, Book III, IRR]
of the service, the employer or the domestic
worker may give notice to end the working
relationship five (5) days before the intended
termination of the service.
The domestic worker and the employer may

mutually agree upon written notice to pre-
terminate the contract of employment to end
the employment relationship [Sec. 32, RA
10361].
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5. Night Workers III, IRR, through D.O. No. 119-
12]
Night Worker
Any employed person whose work requires 6. Persons with Disabilities (R.A. No.
performance of a substantial number of hours 7277)
of night work which exceed a specified limit.
This limit shall be fixed by the Secretary of Definitions
Labor after consulting the workers’ Disabled persons are those suffering from
representatives/labor organizations and restriction or different abilities, as a result of a
employers [Art. 154, as amended by RA mental, physical or sensory impairment, to
10151]. perform an activity in the manner or within the
range considered normal for a human being
Any employed person whose work covers the [Sec. 4(a), RA 7277].
period from 10:00 pm to 6:00 am the following
morning, provided that the worker performs no Impairment is any loss, diminution or
less than 7 consecutive hours of work [Sec. 2, aberration of psychological, physiological, or
Rule XV, Book III, Rule XV, Sec. 2, IRR, anatomical structure or function [Sec. 4(b), RA
through D.O. No. 119-12]. 7277].
a. Mandatory Facilities Disability shall mean (1) a physical or mental

impairment that substantially limits one or more
Mandatory facilities shall be made available for psychological, physiological or anatomical
workers performing night work, which include function of an individual or activities of such
the following: individual; (2) a record of such an impairment;
1. Suitable first-aid and emergency (3) being regarded as having such an
facilities; impairment [Sec. 4(c), RA 7277].
2. Lactation station in required companies
pursuant to RA 10028; Handicap refers to a disadvantage for a given
3. Separate toilet facilities for men & individual, resulting from an impairment or a
women; disability, that limits or prevents the function or
4. Facility for eating w/ potable drinking activity, that is considered normal given the
water; and age and sex of the individual [Sec. 4(d), RA
5. Facilities for transportation and/or 7277].
properly ventilated temporary sleeping
or resting quarters, separate for male Coverage
and female workers, shall be provided RA 7277 covers all disabled persons and, to
except where any of the ff. the extent herein provided, departments,
circumstances is present: offices and agencies of the National
a. There is an existing company Government or nongovernment organizations
guideline, practice or policy, involved in the attainment of the objectives of
CBA, or any similar agreement this Act [Sec. 3, RA 7227].
providing for an equivalent or
superior benefit; or a. Discrimination
b. Start or end of the night work
does not fall within 12 mn - 5 No entity, whether public or private, shall
am; or discriminate against a qualified disabled
c. Workplace is located in an area person by reason of disability in regard to:
that is accessible 24 hours to 1. Job application procedures
public transportation; or 2. The hiring, promotion, or discharge of
d. Number of employees does not employees
exceed a specified number as 3. Employee compensation
may be provided for by the 4. Job training
SOLE in subsequent issuances 5. Other terms, conditions, and privileges
[Art. 156, as amended by RA of employment.
10151; Sec. 4, Rule XV, Book
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Acts of Discrimination: 9. Excluding disabled persons from
1. Limiting, segregating or classifying a membership in labor unions or similar
disabled job applicant in such a organizations [Sec. 32, RA 7277].
manner that adversely affects his work
opportunities; b. Incentives for Employers
2. Using qualification standards,
employment tests or other selection 1. For employment of disabled persons –
criteria that screen out or tend to additional deduction, from their gross income,
screen out a disabled person unless equivalent to 25% of the total amount paid as
such standards, tests or other selection salaries and wages to disabled persons:
criteria are shown to be job-related for a. Private entities that employ disabled
the position in question and are persons either as regular EEs,
consistent with business necessity; apprentice or learner;
3. Utilizing standards, criteria, or methods b. Provided such entities present proof as
of administration that: certified by the DOLE and the DOH
a. have the effect of [Sec. 8[b], RA 7277]
discrimination on the basis of
disability; or 2. For construction of disabled-friendly
b. perpetuate the discrimination facilities – additional deduction from their net
of others who are subject to taxable income, equivalent to 50% of the direct
common administrative control. costs of the improvement or modifications:
4. Providing less compensation, such as a. Private entities that improve or modify
salary, wage or other forms of their physical facilities in order to
remuneration and fringe benefits, to a provide reasonable accommodation for
qualified disabled employee, by reason disabled persons;
of his disability, than the amount to b. Does NOT apply to improvements or
which a non-disabled person modifications or facilities required
performing the same work is entitled; under BP 344 [Sec. 8 (c), RA 7277].
5. Favoring a non-disabled employee
over a qualified disabled employee with 3. For establishments giving discounts –
respect to promotion, training may claim such discounts as tax deductions
opportunities, study and scholarship based on the net cost of the goods sold on
grants, solely on account of the latter's services rendered:
disability; a. The cost of the discount shall be
6. Re-assigning or transferring a disabled allowed as deduction from gross
employee to a job or position he cannot income for the same taxable year that
perform by reason of his disability; the discount is granted
7. Dismissing or terminating the services b. The total amount of the claimed tax
of a disabled employee by reason of his deduction net of VAT if applicable, shall
disability unless the employer can be included in their gross sales receipts
prove that he impairs the satisfactory for tax purposes and shall be subject to
performance of the work involved to the proper documentation and to the
prejudice of the business entity: provisions of the National Internal
Provided, however, That the employer Revenue Code, as amended [Sec. 32,
first sought to provide reasonable RA 7277, as amended by RA 9442].
accommodations for disabled persons;
8. Failing to select or administer in the
most effective manner employment
tests which accurately reflect the skills,
aptitude or other factor of the disabled
applicant or employee that such tests
purports to measure, rather than the
impaired sensory, manual or speaking
skills of such applicant or employee, if
any; and
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F. Sexual Harassment in the Duties and Liabilities of Employers
1. To prevent or deter the commission of
Work Environment acts of sexual harassment
2. To provide procedures for the
Definition resolution, settlement, or prosecution
Work, education or training-related sexual of acts of sexual harassment
harassment is committed by an employer, 3. To promulgate appropriate rules and
employee, manager, supervisor, agent of the regulations
employer, teacher, instructor, professor, a. Administrative sanctions shall
coach, trainer, or any other person who, not be a bar to prosecution in
having authority, influence or moral the proper courts for unlawful
ascendancy over another in a work or training acts of sexual harassment
or education environment, demands, requests [Section 4(a), RA 7877]
or otherwise requires any sexual favor from i. The victim of sexual
the other, regardless of whether the demand, harassment may still
request or requirement for submission is institute a separate and
accepted by the object of said Act. independent action for
damages and other
Any person who directs or induces another affirmative relief
to commit any act of sexual harassment as [Section 6, RA 7877]
herein defined, or who cooperates in the b. The said rules shall include,
commission thereof by another without which guidelines on proper decorum
it would not have been committed, shall also in the workplace and
be held liable under this Act [Sec. 3, RA 7877]. educational or training
institutions, among others
When Committed in a Workplace
In a work-related or employment environment, Applicable Laws
sexual harassment is committed when: a. Anti-Sexual Harassment Act (R.A. No.
1. The sexual favor is made as a condition
7877) – February 14, 1995
in the hiring or in the employment, re-
employment or continued employment
Who may be held liable: An employer,
of said individual, or in granting said
employee, manager, supervisor, agent of the
individual favorable compensation,
employer, teacher, instructor, professor,
terms of conditions, promotions, or
coach, trainer, or any other person who, has
privileges; or the refusal to grant the
authority, influence or moral ascendancy over
sexual favor results in limiting,
another [Section 3, RA 7877].
segregating or classifying the
employee which in any way would
Any person who directs or induces another to
discriminate, deprive or diminish
commit any act of sexual harassment as
employment opportunities or otherwise
defined under RA 7877 or who cooperates in
adversely affect said employee.
the commission thereof by another without
2. The above acts would impair the
which it would not have been committed, shall
employee’s rights or privileges under
also be held liable.
existing labor laws; or
3. The above acts would result in an
How committed: When such person
intimidating, hostile, or offensive
demands, requests or otherwise requires any
environment for the employee [Sec. 3,
sexual favor from the other, regardless of
RA 7877].
whether the demand, request or requirement
for submission [Section 3, RA 7877].
Where committed:
1. In a work-related or employment
environment, sexual harassment;
2. In an education or training
environment, sexual harassment is
committed.
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Modes of Commission Duty of Employer or Head of Office in
Employment Education or Employment or Education Environment
environment training It shall be their duty to prevent or deter the
environment commission of acts of sexual harassment and
to provide the procedures for the resolution,
Sexual favor is made Against one:
settlement or prosecution of acts of sexual
as a condition in 1. Who is under the harassment.
hiring or care, custody, a. Promulgate appropriate rules and
employment, re- and supervision regulations in consultation with and joint1y
employment, or of the offender; approved by the employees or students or
continued 2. Against one trainees, through their duly designated
employment of the whose representatives, prescribing the procedure
for the investigation of sexual harassment
victim, or in granting education, cases and the administrative sanctions
the individual training, therefor.
favorable apprenticeship, b. Create a committee on decorum and
compensation, or tutorship is investigation of cases on sexual
terms, promotions entrusted to the harassment.
and privileges, or offender [Section i. For work related environment: The
committee shall be composed of at
refusal to grant the 3(b)(1), (2), RA
least one (1) representative each from
sexual favor results 8788]. the management, the union, if any, the
in the employee employees from the supervisory rank,
being discriminated and from the rank and file employees.
upon, deprived, or ii. For educational or training
having diminished institutions: The committee shall be
employment composed of at least one (1)
representative from the administration,
opportunities or the
the trainers, instructors, professors or
employee is coaches and students or trainees, as
otherwise adversely the case may be [Section 4, RA 7877].
affected [Section
3(a)(1), RA 8788]. Liability of the Employer or Head of Office
The employee’s rights The sexual favor is The employer or head of office, educational or
or privileges under made a condition to training institution shall be solidarily liable for
damages arising from the acts of sexual
existing labor laws are the giving of a passing
harassment committed in the employment,
impaired [Section grade, or the granting
education or training environment if the
3(a)(2), RA 8788]. of honors and employer or head of office, educational or
scholarships, or training institution is informed of such acts by
payment of a stipend, the offended party and no immediate action is
allowance, or other taken [Section 5, RA 7877].
benefits, privileges, or
consideration Penalties
[Section 3(b)(3), RA Upon conviction, the offender is penalized by
8788]. imprisonment of not less than one (1) month
nor more than six (6) months, or a fine of not
The above acts would The sexual advances
less than Ten thousand pesos (P10,000) nor
result in an result in an
more than Twenty thousand pesos (P20,000),
intimidating, hostile, intimidating, hostile, or both such fine and imprisonment at the
or offensive or offensive discretion of the court [Section 7, RA 7877].
environment for the environment for the
employee [Section student, trainee or Prescription of action: Three (3) years.
3(a)(3), RA 8788]. apprentice [Section
3(b)(4), RA 8788].
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b. Safe Spaces Act (R.A. No. 11313) – Duties of Employers
April 17, 2019 Employers or other persons of authority,
influence, or moral ascendancy, in a workplace
Gender-Based Sexual Harassment in the shall have the duty to prevent, deter, or punish
Workplace includes the following: the performance of acts of gender-based
1. An act or series of acts involving any sexual harassment in the workplace.
unwelcome sexual advances, requests or 1. Disseminate or post in a conspicuous place
demand for sexual favors or any act of a copy of RA 11313 to all persons in the
sexual nature, whether done verbally, workplace;
physically or through the use of technology 2. Provide measures to prevent gender-
such as text messaging or electronic mail based sexual harassment in the workplace,
or through any other forms of information such as the conduct of anti-sexual
and communication systems, that has or harassment seminars;
could have a detrimental effect on the 3. Create an independent internal mechanism
conditions of an individual’s employment or or a committee on decorum and
education, job performance or investigation to investigate and address
opportunities; complaints of gender- based sexual
2. A conduct of sexual nature and other harassment which shall;
conduct- based on sex affecting the dignity a. Adequately represent the
of a person, which is unwelcome, management, the employees from the
unreasonable, and offensive to the supervisory rank, the rank-and-file
recipient, whether done verbally, physically employees, and the union, if any;
or through the use of technology such as b. Designate a woman as its head and not
text messaging or electronic mail or less than half of its members should be
through any other forms of information and women;
communication systems; c. Be composed of members who should
3. A conduct that is unwelcome and pervasive be impartial and not connected or
and creates an intimidating, hostile or related to the alleged perpetrator;
humiliating environment for the recipient: d. Investigate and decide on the
Provided, That the crime of gender-based complaints within ten days or less upon
sexual harassment may also be committed receipt thereof;
between peers and those committed to a e. Observe due process;
superior officer by a subordinate, or to a f. Protect the complainant from
teacher by a student, or to a trainer by a retaliation; and
trainee; and g. Guarantee confidentiality to the
4. Information and communication system greatest extent possible;
refers to a system for generating, sending, 4. Provide and disseminate, in consultation
receiving, storing or otherwise processing with all persons in the workplace, a code of
electronic data messages or electronic conduct or workplace policy which shall;
documents and includes the computer a. Expressly reiterate the prohibition on
system or other similar devices by or in gender-based sexual harassment;
which data are recorded or stored and any b. Describe the procedures of the internal
procedure related to the recording or mechanism created under Sec. 17(c)
storage of electronic data messages or RA 11313; and
electronic documents [Article IV, Section c. Set administrative penalties [Article IV,
16, RA 11313]. Section 17, RA 11313].
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Duties of Employees and Co-Workers
1. Employees and co-workers shall have the
duty to: Refrain from committing acts of
gender-based sexual harassment;
2. Discourage the conduct of gender-based
sexual harassment in the workplace;
3. Provide emotional or social support to
fellow employees, co-workers, colleagues
or peers who are victims of gender-based
sexual harassment; and
4. Report acts of gender-based sexual
harassment witnessed in the workplace
[Article IV, Section 18, RA 11313].
Routine inspections
Yearly spontaneous inspections shall be
conducted to ensure compliance of employers
and employees with their obligations.
Who conducts:
1. DOLE – for private sector;
2. CSC – for public sector.
Liability of Employee
In addition to liabilities for committing acts of
gender-based sexual harassment, employers
may also be held responsible for:
a) Non-implementation of their duties
under Sec. 17 (Duties of Employers),
as provided in the penal provisions; or
Penalty: Fine of not less than P5,000

nor more than P10,000.
b) Not taking action on reported acts of

gender-based sexual harassment
committed in the workplace.
Penalty: Fine of not less than P10,000

nor more than P15,000 [Article IV,
Section 19, RA 11313].
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IV. SOCIAL WELFARE for employment abroad (OFWs) [Sec. 9, RA

7877].
LEGISLATION
Any foreign government, international
organization or their wholly-owned
A. Social Security System Law instrumentality employing workers in the
(R.A. No. 8282) Philippines or employing Filipinos outside of
the Philippines, may enter into an agreement
1. Coverage and Exclusions with the Philippine Government for the
inclusion of such employees in the SSS except
Compulsory Coverage those already covered by their respective civil
All employees not over sixty (60) years of age service retirement systems [Sec. 8(j)(4), RA
and their employers, including domestic 7877].
helpers with at least P1,000.00 monthly pay
[Sec. 9, RA 8282]. Exclusion
a. Employment purely casual and not for
Self-Employed Persons [Sec. 9-A, RA 8282] the purpose of occupation or business
a. All self-employed professionals of the employer;
b. Partners and single proprietors of b. Service performed on or in connection
businesses with an alien vessel by an employee if
c. Actors and actresses, directors, he is employed when such vessel is
scriptwriters and news correspondents outside the Philippines;
who do not fall within the definition of c. Service performed in the employ of the
the term "employee" Philippine Government or
d. Professional athletes, coaches, instrumentality or agency thereof;
trainers and jockeys and d. Service performed in the employ of a
e. Individual farmers and fishermen foreign government or international
organization, or their wholly-owned
A domestic worker who has rendered at least instrumentality;
one (1) month of service shall be covered by e. Such other services performed by
the Social Security System (SSS), the temporary and other employees which
Philippine Health Insurance Corporation may be excluded by SSS regulation
(PhilHealth), and the Home Development [Sec. 8(j), RA 7877].
Mutual Fund or Pag-IBIG, and shall be entitled
to all the benefits in accordance with the Note: Employees of bona fide independent
pertinent provisions provided by law. contractors shall not be deemed employees of
the employer engaging the service of said
Premium payments or contributions shall be contractors.
shouldered by the employer. However, if the
domestic worker is receiving a wage of Five 2. Dependents and Beneficiaries
thousand pesos (P5,000.00) and above per
month, the domestic worker shall pay the Primary
proportionate share in the premium payments a. The dependent spouse until he or she
or contributions, as provided by law. remarries
b. The dependent legitimate, legitimated
The domestic worker shall be entitled to all or legally adopted, and illegitimate
other benefits under existing laws [Sec. 30, RA children
10361]. 1. Entitled to fifty percent (50%) of
the share of the legitimate,
Voluntary legitimated or legally adopted
Spouses who devote full time to managing the children.
household and family affairs, unless they are 2. If there are no legitimate
also engaged in other vocation or employment children, they shall be entitled
which is subject to mandatory coverage to one hundred percent (100%)
Filipinos recruited by foreign-based employers of the benefits.
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Secondary b. 65 years - entitled to monthly pension
a. Dependent parents from retirement until death.
b. Any other person designated
The monthly pension shall be suspended upon
3. Benefits the reemployment or resumption of self-
employment of a retired member who is less
Monthly Pension [Sec. 12] than sixty-five [65] years old.
The monthly pension shall be the highest of the
following amounts: In Case of Death of Member
a. P300.00 + [20% x average monthly a. Primary beneficiaries as of the date of
salary credit] + [2% x average monthly retirement shall be entitled to receive
salary credit x years of service in the monthly pension; or
excess of 10 years] b. If no primary beneficiaries and he dies
b. 40% x average monthly salary credit; within 60 months from the start of
or monthly pension, secondary
c. P1,000.00; the monthly pension cannot beneficiaries shall be entitled to a
be less than the aggregate amount for lump sum benefit equivalent to the total
sixty (60) months monthly pensions corresponding to the
balance of the five-year guaranteed
Minimum Pension period, excluding the dependents’
a. At least 10 credited years of service - pension.
P1,200.00
b. At least 20 credited years of service - Lump Sum Alternative
P2,400.00 Member may opt to receive the first 18 monthly
pensions in lump sum but such is discounted at
Dependent’s Pension [Sec. 12-A] a preferential rate of interest.
Payable on account of:
a. Death, Lump Sum Eligibility
b. Permanent total disability, or A 60-year-old member with less than 120
c. Retirement monthly contributions who is no longer
employed or self-employed, and who is not
Paid to each dependent child conceived on or continuing contributions independently, is
before the date of the contingency beginning entitled to a lump sum equal to his total
with the youngest. contributions paid.
a. Not exceeding 5
b. Legitimate shall be preferred over The monthly pension of a member who retires
illegitimate children after reaching age 60 shall be the higher of
either:
Amount Paid a. The monthly pension computed at the
a. 10% of the monthly pension or earliest time he could have retired had
b. P250.00, whichever is higher, he been separated from employment
Retirement Benefits or ceased to be self-employed + all
adjustments thereto;
Retirement Benefits [Sec. 12-B] b. The monthly pension computed at the
time when he actually retires.
Eligibility
A member who has paid at least 120 monthly Death Benefits [Sec. 13]
contributions prior to the semester of
retirement. Eligibility Requirement
36 monthly contributions prior to the semester
Age of death.
a. 60 years; already separated from
employment or has ceased to be self- Entitled to monthly pension to primary or a
employed; or lump sum benefit equivalent to 36 times the
monthly pension secondary beneficiaries.
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If ineligible, lump sum benefit which shall be the In Case of Death of Member
higher between the two: a. Primary beneficiaries as of the date of
a. monthly pension x 12; or disability shall be entitled to receive the
b. monthly pension x [# of monthly monthly pension; OR
contributions] b. If no primary beneficiaries and he dies
within 60 months from the start of his
Permanent Disability Benefits monthly pension, his secondary
beneficiaries shall be entitled to a lump
Eligibility Requirement sum benefit equivalent to the total
a. 36 monthly contributions prior to the monthly pensions corresponding to the
semester of disability; same as death balance of the five-year guaranteed
benefit; the only difference is that the period excluding the dependents’
pension is paid directly to the member. pension.
b. In case the permanently disabled
member dies, it would be given the Funeral Benefits [Sec. 13-B]
same treatment as a retiree dying. P12,000 in cash or in kind, upon the death of
c. For permanent partial disability, the the member.
pension is not lifetime [e.g. loss of
thumb entitles members to only 10 Loan
months of pension, while loss of arm 50 Treatment of salary loans; more flexible
months]. It shall be paid in lump sum if payment terms or condonation for delinquent
the period is less than 12 months. payers.
d. For multiple partial disabilities, they
shall be additive when related or Sickness Benefits [Sec. 14]
deteriorating, the percentage shall be
equal to the number of months the Eligibility Requirements and Other
partial disability is entitled to, divided by Conditions
75 months [e.g. loss of sight in one eye a. Inability to work due to sickness or
= 25/75; loss of arm = 50/75; if both injury;
occur due to same cause, then 25/75 + b. Confined for at least 4 days either in a
50/75 = 100% so treated as if it were hospital or elsewhere with SSS
permanent total disability]. approval;
c. At least 3 months of contributions in the
Lump Sum Alternative 12-month period immediately before
A member is entitled to a lump sum benefit the semester of sickness or injury has
equivalent to the monthly pension times the been paid;
number of monthly contributions paid to the d. All company sick leaves with pay for
SSS or 12 times the monthly pension, the current year have been used up;
whichever is higher. e. Maximum of 120 days per calendar
year [i.e. maximum permissible for the
Lump Sum Eligibility same sickness and confinement is 240
A member who has not paid at least 36 monthly days for 2 consecutive years];
contributions. f. The employer has been notified, or, if a
separated, voluntary or self-employed
Note: A member who has received a lump sum member, the SSS directly notified
benefit; and is reemployed or has resumed within 5 days of confinement;
self- employment not earlier than 1 year from g. Notice to employer or SSS not needed
the date of his disability shall again be subject when confinement is in a hospital;
to compulsory coverage and shall be notice to employer not required as well
considered a new member. when Employee became sick or injured
while working or within premises of the
employer.
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Entitled to daily cash allowance paid for the Employer’s Reimbursement
number of days a member is unable to work That the SSS shall immediately reimburse the
due to sickness or injury equivalent to 90% x employer of one 100% of the amount of
[average daily salary credit] maternity benefits advanced to the employee
a. 100% of the daily benefits provided by the employer upon receipt of satisfactory
shall be reimbursed by the SSS to said proof of such payment and legality thereof.
employer upon receipt of satisfactory
proof of such payment and legality Note: All of these benefits are tax-exempt.
thereof if the following conditions are
met: B. Government Service
b. The employer notified the SSS of the
confinement within five calendar days Insurance System Law (R.A. No.
after receipt of the notification from the 8291)
employee member
c. If the notification to the SSS is made by 1. Coverage and Exclusions
the employer beyond five calendar
days after receipt of the notification Compulsory
from the employee member, he shall All employees receiving compensation who
be reimbursed only for each day of have not reached the compulsory retirement
confinement starting from the tenth age, irrespective of employment status.
calendar day immediately preceding
the date of notification to the SSS Excluded
d. SSS shall reimburse the employer or a. Armed Forces of the Philippines and
pay the unemployed member only for Philippine National Police. However,
confinement within the one-year period they must settle first their financial
immediately preceding the date the obligation with the GSIS.
claim for benefit or reimbursement is b. Contractuals who have no employer
received by the SSS, except and employee relationship with the
confinement in a hospital in which case agencies they serve.
the claim for benefit or reimbursement
must be filed within one year from the General Rule: All members of the GSIS shall
last day of confinement have life insurance, retirement, and all other
social security protection such as disability,
Maternity Leave Benefits [Sec. 14-A] survivorship, separation, and unemployment
benefits.
Eligibility Requirements
a. A female member Exception: Members of the judiciary and
b. Paid at least three [3] monthly constitutional commissions who shall have life
contributions in the twelve-month insurance only.
period immediately preceding the
semester of her childbirth or 2. Dependents and Beneficiaries
miscarriage
c. Notified her employer of her pregnancy Primary
and the probable date of her childbirth, a. Legal dependent spouse until he/she
which notice shall be transmitted to the remarries
SSS b. Dependent children
Process Secondary
The full payment shall be advanced by the a. Dependent parents
employer within 30 days from the filing of the b. Other legitimate descendants
maternity leave application.
Coverage
The maternity benefits provided under this Sec.
shall be paid only for the first four deliveries or
miscarriages.
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3. Benefits b. Below 60 years of age, but at least 15
years of service rendered
Computation of Service
a. From the date of original Separation Benefit
appointment/election. Including: For 60 years of age or separated from service
b. Periods of service at different times with 3 to 15 years of service → cash payment
under one or more employers, of 100% of average monthly compensation for
c. Those performed overseas under the each year of service (total amount of all
authority of the Republic of the contributions paid) or P12,000 whichever is
Philippines, higher.
d. Those that may be prescribed by the
GSIS in coordination with the Civil Below 60 years of age and at least 15 years of
Service Commission. service → cash payment equivalent to 18 x
[monthly pension] at the time of resignation or
In Case of Reinstatement: separation plus an old-age pension benefit
All service credited for retirement, resignation equal to basic monthly pension.
or separation for which corresponding benefits
have been awarded under this Act or other Retirement Benefits
laws shall be excluded in the computation of
service. Eligibility Requirements
The member who retires:
Basic Monthly Pension Computation a. Has rendered at least 15 years of
37.5% x [revalued average monthly service;
compensation] Plus 2.5 x [revalued average b. Is at least 60 years of age at the time of
monthly compensation] x [years in service in retirement; and
excess of 15 years]. c. Is not receiving a monthly pension
benefit from permanent total disability.
The monthly pension shall:
a. Not exceed 90% of the average Retirement shall be compulsory for an
monthly compensation. employee at 65 years of age with at least 15
b. Not be less than P2,400 for those with years of service.
20 years of service and not less than
P1,300 for everyone else. If he has less than 15 years of service, he may
be allowed to continue in the service in
Unemployment or Involuntary Separation accordance with existing civil service rules and
Benefits regulations.
Monthly cash payments of 50% of average
monthly compensation for a duration which is Retirement Benefit
proportional to years rendered, ranging from 2 a. The lump sum payment payable at the
months to 6 months. time of retirement + old-age pension
benefit (basic monthly pension payable
Eligibility Requirements monthly for life, starting upon expiration
a. Employee separated from service due of the five-year (5) guaranteed period
to abolition of his office or position; and covered by the lump sum); or
b. Employee has been paying integrated b. Cash payment equivalent to 18 months
contributions for at least 1 year prior to of his basic monthly pension + monthly
separation. pension for life payable immediately
with no five-year (5) guarantee.
Separation Benefits c. It shall be periodically adjusted as may
be recommended by the GSIS.
Eligibility Requirements
a. 60 years of age, or separation from
service with at least 3 years but not
over 15 years served
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Permanent Disability Benefits If Ineligible
A member that has rendered at least 3 years of
Eligibility Requirements service shall receive cash payment equal to
A member suffers permanent disability for 100% of average monthly compensation for
reasons not due to his grave misconduct, each year of service (essentially total amount
notorious negligence, habitual intoxication, or of contributions made) or P12,000 whichever is
willful intention to kill himself or another. higher.
Employee is: Permanent Partial Disability Benefit

a. In service at the time of disability; or Paid according to GSIS prescribed schedule.
b. Even if separated, he has paid at least
36 monthly contributions within the 5- Temporary Disability Benefits
year period immediately prior to
disability or has paid a total of at least Eligibility requirements
180 monthly contributions prior to Employee must be:
disability; and a. In service at the time of disability; or
c. Member is not enjoying old-age b. If separated, he has rendered at least
retirement benefits. 3 years of service and paid at least 6
monthly contributions in the 12-month
Disabilities Deemed Total and Permanent period immediately prior to disability;
a. Complete loss of sight of both eyes; c. All sick leave credits including CBA
b. Loss of 2 limbs at or above the ankle or sick leaves for the current year has
wrist been used up; and
c. Permanent complete paralysis of 2 d. Maximum of 120 days per 1 calendar
limbs year (maximum permissible for the
d. Brain injury resulting in incurable same sickness and confinement is 240
imbecility or insanity days for 2 consecutive years).
e. Other cases as determined by the
GSIS Temporary Disability Benefit
Entitled to 75% of the current daily
Disabilities Deemed Partial and Permanent compensation for every day or fraction thereof
Complete and permanent loss of the use of: of disability or P70 whichever is higher.
a. Any finger
b. Any toe Survivorship Benefits
c. One arm Consists of
d. One hand a. The basic survivorship pension (50% of
e. One foot the basic monthly pension); and
f. One leg b. The dependent children’s pension (not
g. One or both ears exceeding fifty percent (50%) of the
h. Hearing of one or both ears basic monthly pension).
i. Sight of one eye
Other cases as determined by the GSIS Funeral Benefits
Paid upon the death of:
Permanent Total Disability Benefit a. An active member; or
a. Monthly income benefit for life equal to b. A member who has been separated
basic monthly pension (effective from from the service, but who may be
date of disability); entitled to future benefit; or
b. If member is in service at the time of c. A pensioner; or
disability and he has paid at least 180 d. A retiree who at the time of his
monthly contributions, in addition to the retirement was of pensionable age
monthly income benefit, he shall under this Act but who opted to retire.
receive an additional cash payment of
18 times basic monthly pension. Funeral Benefit
a. Entitled to not be less than P12,000.00.
b. Increased to not less than P18,000.00
after 5 years.
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Life Insurance Benefits C. Limited Portability Law (R.A.
Compulsory for all employees, except AFP and
PNP. No. 7699)
Effectivity A scheme for totalization and portability of

a. Employed after GSIS - date of social security benefits with the view of
employment. establishing within a reasonable period a
b. Mature after GSIS - insurance deemed unitary social security system [Sec. 1].
renewed on the date after
maturity/expiry. A covered worker who transfers employment
c. Without life insurance - date of from one sector to another or is employed in
effectivity of GSIS. both sectors shall have his credible services or
contributions in both Systems credited to his
Dividends service or contribution record in each of the
Granted to all members of the GSIS whose life Systems and shall be totalized for purposes of
insurance is in force for at least 1 year in old-age, disability, survivorship and other
accordance with a dividend allocation formula benefits in case the covered member does not
to be determined by the GSIS. qualify for such benefits in either or both
Systems without totalization.
Optional Insurance ● Overlapping periods of membership
Member may apply for insurance and/or pre- shall be credited only once for
need coverage embracing life, health, purposes of totalization [Sec. 3].
hospitalization, education, memorial plans, and
such other plans. All contributions paid by such member
personally, and those that were paid by his
Employer may also apply for group insurance. employers to both Systems shall be considered
in the processing of benefits which he can
The payment of the premiums/installments for claim from either or both Systems.
optional insurance may be made by: ● The amount of benefits to be paid by
a. The insured or one System shall be in proportion to the
b. His employer and/or number of contributions actually
c. Any person acceptable to the GSIS. remitted to that System [Sec. 4].
Reinsurance D. Disability and Death Benefits

GSIS may reinsure any of its interests or part
thereof with any private company or reinsurer 1. Labor Code
whether domestic or foreign.
Under the Labor Code, employees'
GSIS shall submit an annual report on its compensation (EC) benefits are granted to
reinsurance operations to the Insurance employees or their dependents for work-
Commission. connected disability or death, or those resulting
from accidents arising out of and in the course
of employment [Art. 166, LC in rel. to Sec. 1,
Rule III, IRR].
Types of Disability
a. Temporary Total Disability [Art. 197]
b. Permanent Total Disability [Art. 198]
c. Permanent Partial Disability [Art. 199]
Disability Benefits
Disability does not refer to the injury nor to the
pain and suffering it has occasioned, but to the
loss and impairment of earning capacity. There
is disability when there is a loss or diminution
of earning power because of actual absence
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from work due to injury or illness arising out of continuous period exceeding 120 days [Arts.
and in the course of employment. The basis of 198 in rel. to Sec. 2(b), Rule VII].
compensation is reduction of earning power
[Azucena, p. 525]. The test of whether or not an employee suffers
from ‘permanent total disability’ is a showing of
Temporary Total Disability the capacity of the employee to continue
A total disability is temporary if as a result of performing his work notwithstanding the
the injury or sickness, the employee is unable disability he incurred. It does not mean an
to perform any gainful occupation for a absolute helplessness but rather an incapacity
continuous period not exceeding 120 days [Art. to perform gainful work which is expected to be
197 in rel. to Sec. 2(a), Rule VII, Amended permanent [Vicente v. ECC, G.R. No. 85024
Rules on Employees’ Compensation]. (1991)].
The object of the law in allowing compensation The Labor Code enumerates six instances
during temporary disability is to compensate considered to be a permanent total disability:
the laborer or employee for what he might have 1. Temporary total disability lasting
earned during the period of the treatment of his continuously for more than one
injury [Cañete v. Insular Lumber Co., 61 Phil. hundred twenty days, except as
592 (1935)]. otherwise provided for in the Rules;
2. Complete loss of sight of both eyes;
Amount of Benefit 3. Loss of two limbs at or above the ankle
An employee suffering from temporary total or wrist;
disability shall be paid by the System an 4. Permanent complete paralysis of two
equivalent of ninety percent (90%) of the limbs;
average salary credit, provided: 5. Brain injury resulting in incurable
a. The daily income benefit is not less imbecility or insanity; and
than Ten (10) pesos nor more than 6. Such cases as determined by the
Ninety (90) pesos, nor paid for a Medical Director of the System and
continuous period longer than 120 approved by the Commission [Art. 197
days [Art. 197] (c)].
b. The monthly income benefit shall be
suspended if the employee fails to Amount of Benefit
submit a monthly medical report The employee suffering from a permanent total
certified by its attending physician disability shall be entitled to an amount
[Art.194] equivalent to the monthly income benefit, plus
ten percent thereof for each dependent child,
Period of Entitlement but not exceeding five, beginning with the
The employee is entitled to the benefit from the youngest and without substitution: Provided,
day of the start of the disability. It shall not be That the monthly income benefit shall be the
paid longer than 120 consecutive days except new amount of the monthly benefit for all
where such injury or sickness still requires covered pensioners [Art. 198].
medical attendance beyond 120 days but not
to exceed 240 days from onset of disability. Period of Entitlement
An employee with permanent total disability
When after the period of temporary total shall be entitled to receive benefits monthly for
disability had ceased, an employee was found five (5) years.
to be suffering from a permanent partial
disability, he was entitled to an award based However, Art. 198(b) provides that the benefits
upon partial disability permanent in character may be suspended if the employee is gainfully
[Cañete v. Insular Lumber Co., 61 Phil. 592 employed, or recovers from his permanent total
(1935)]. disability, or fails to present himself for
examination at least once a year.
Permanent Total Disability
A disability is total and permanent if as a result
of the injury or sickness the employee is unable
to perform any gainful occupation for a
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Permanent Partial Disability Note:
A disability is partial and permanent if as a 1. A loss of a wrist shall be considered as
result of the injury or sickness the employee a loss of the hand, and a loss of an
suffers a permanent partial loss of the use of elbow shall be considered as a loss of
any part of his body [Art. 199 in rel. to Sec. 2(c), the arm.
Rule VII, Amended Rules on Employees’ 2. A loss of an ankle shall be considered
Compensation]. as loss of a foot, and a loss of a knee
shall be considered as a loss of the leg.
The object of the law in granting compensation 3. A loss of more than one joint shall be
for a permanent partial disability is to considered as a loss of one-half of the
compensate the injured laborer or employee whole finger or toe: Provided, That
for the actual and permanent loss of a member such a loss shall be either the
of the body, or the use thereof [Cañete v. functional loss of the use or physical
Insular Lumber Co., 61 Phil. 592 (1935)]. loss of the member [Art. 199(c)].
Amount of Benefits In case of permanent partial disability less than

For an employee who has suffered a the total loss of the member specified in Art.
permanent partial disability, the amount of 199(b), the same monthly income benefit shall
benefits, as well as the period of entitlement to be paid for a portion of the period established
receive such benefits is based upon the degree for the total loss of the member in accordance
of disability, as well as the lost body part. The with the proportion that the partial loss bears to
body parts and the corresponding period of the total loss. If the result is a decimal fraction,
equivalent disability are specified in Art 199. the same shall be rounded off to the next higher
integer [Art. 199(d)].
Benefits
In cases of simultaneous loss of more than one
Body Part/s Months member or a part thereof as specified in Art.
199(b) the same monthly income benefit shall
One thumb 10 be paid for a period equivalent to the sum of
the periods established for the loss of the
One index finger 8
member or the part thereof. If the result is a
One middle finger 6 decimal fraction, the same shall be rounded off
to the next higher integer [Art. 199(e)].
One ring finger 5
In cases of injuries or illnesses resulting in a
One little finger 3 permanent partial disability not listed in the Art.
199(b), the benefit shall be an income benefit
One big toe 6 equivalent to the percentage of the permanent
loss of the capacity to work [Art. 199(f)].
One toe 3
Distinguished from Permanent Total
One arm 50
Disability
One hand 39
While “permanent total disability” invariably
results in an employee’s loss of work or inability
One foot 31 to perform his usual work, “permanent partial
disability,” on the other hand, occurs when an
One leg 46 employee loses the use of any particular
anatomical part of his body which disables him
One ear 10 to continue with his former work [Vicente v.
ECC, G.R. No. 85024 (1991)].
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
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Conversion from Permanent Partial who is under permanent total disability under this
Disability to Permanent Total Disability Title, eighty percent of the monthly income benefit
A person’s disability may not manifest fully at and his dependents to the dependents’ pension:
one precise moment in time but rather over a Provided, That the marriage must have been validly
period of time. It is possible that an injury which subsisting at the time of disability: Provided, further,
at first was considered partial disability may That if he has no primary beneficiary, the System
become totally and permanently disabled from shall pay to his secondary beneficiaries the monthly
the same cause. There is nothing in the law pension excluding the dependents’ pension, of the
that prohibits the conversion of permanent remaining balance of the five-year guaranteed
partial disability benefit to permanent total period: Provided, finally, That the minimum death
disability benefit if it is shown that the benefit shall not be less than fifteen thousand pesos
employee’s ailment qualifies as such [GSIS v. (As amended by Section 4, Presidential Decree No.
Court of Appeals and R. Balais, G.R. No. 1921).
117572 (1998)].
c. The monthly income benefit provided herein shall
When Salary is Higher After the Injury be the new amount of the monthly income benefit for
In a case where the employee filed a claim for the surviving beneficiaries upon the approval of this
permanent partial disability but the ECC denied decree.
the claim because in fact his salary was higher
than before, the Court ruled that the fact of
higher earning capacity fact would not in itself Condition to Entitlement
necessarily affect the laborer’s claim for The beneficiaries of a deceased employee
compensation for a permanent partial shall be entitled to an income benefit if all of the
disability. An injured laborer’s incapacity for following conditions are satisfied:
work is not to be measured solely by the wages 1. The employee has been duly reported
he receives, or his earning, after the injury, to the System;
since the amount of such wages or earnings 2. He died as a result of an injury or
may be affected by various extraneous matters sickness; and
or factors [Central Azucarera Don Pedro v. C. 3. The System has been duly notified of
de Leon, in his capacity as Workmen’s his death, as well as the injury or
Compensation Commissioner and L. Alla, G.R. sickness which caused his death. His
No. L-10036 (1957)]. employer shall be liable for the benefit
if such death occurred before the
Death Benefits employee is duly reported for coverage
to the System [Sec. 1(a), Rule XIII,
Article. 200. Death – a. Under such regulations as IRR].
the Commission may approve, the System shall pay Note:
to the primary beneficiaries upon the death of the 1. If the employee has been receiving
covered employee under this Title, an amount monthly income benefit for permanent
equivalent to his monthly income benefit, plus ten total disability at the time of his death,
percent thereof for each dependent child, but not the surviving spouse must show that
exceeding five, beginning with the youngest and the marriage has been validly
without substitution, except as provided for in subsisting at the time of his disability.
paragraph (j) of Article 167 hereof: Provided, 2. In addition, the cause of death must be
however, That the monthly income benefit shall be a complication or natural consequence
guaranteed for five years: Provided, further, That if of the compensated Permanent Total
he has no primary beneficiary, the System shall pay Disability [Sec. 1(b), Rule XIII, IRR].
to his secondary beneficiaries the monthly income
benefit but not to exceed sixty months: Provided,
finally, That the minimum death benefit shall not be
less than fifteen thousand pesos (As amended by
Section 4, Presidential Decree No. 1921).
b. Under such regulations as the Commission may

approve, the System shall pay to the primary
beneficiaries upon the death of a covered employee
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Beneficiaries to a physical or mental defect which is
The beneficiaries are: congenital or acquired during minority
1. Primary beneficiaries: [Sec. 2(a), Rule XII, IRR].
a. Dependent spouse until he/she
remarries; For Secondary Beneficiaries
b. Dependent children (legitimate, The income benefit shall be sixty (60) times the
legitimated, natural-born, or monthly income benefit of a primary beneficiary
legally adopted). which in no case be less than P 15,000.00,
2. Secondary beneficiaries: which shall likewise be paid in monthly pension
a. Illegitimate children [Sec. 2(a), Rule XII, IRR].
descendants;
b. Parents, grandparents, Manner of Payment
[Azucena, p. 541] Death benefits are paid in the form of cash
monthly pension:
Dependents 1. For life to the primary beneficiaries,
"Dependent" means the legitimate, legitimated guaranteed for five years;
or legally adopted or acknowledged natural 2. For not more than 60 months to the
child who is unmarried, not gainfully employed, secondary beneficiaries in case there
and not over twenty-one (21) years of age or are no primary beneficiaries;
over twenty-one (21) years of age provided he 3. In no case shall the total benefit be less
is incapacitated and incapable of self-support than P15,000 [Art. 200].
due to a physical or mental defect which is
congenital or acquired during minority; the Amount of Benefits
legitimate spouse living with the employee and
the parents of said employee wholly dependent For Primary Beneficiaries
upon him for regular support [Art. 173 (i)]. Monthly income benefit shall be equivalent to
the monthly income benefit for permanent total
The test of dependency is not merely whether disability, which shall be guaranteed for five
the contributions were necessary to bear years, increased by ten percent for each
subsistence. Dependency may exist although dependent child but not exceeding 5, beginning
the dependent could have subsisted without with the youngest and without substitution
the assistance he/she received, if such [Sec. 3, Rule XII, IRR].
contributions were relied on by claimant for
his/her means of living as determined by The aggregate monthly benefit payable in the
his/her position in life [Malate Taxicab v. Del case of the GSIS shall in no case exceed the
Villar, G.R. No. L-7489 (1956)]. monthly wage or salary actually received by the
employee at the time of his death. The
Period of Entitlement minimum income benefit shall not be less than
Fifteen Thousand Pesos (P15,000.00) [Sec. 3,
For Primary Beneficiaries Rule XII, IRR].
The income benefit shall be paid beginning at
the month of death and shall continue to be For Secondary Beneficiaries
paid for as long as the beneficiaries are entitled Income benefit is payable in monthly pension
thereto [Sec. 2, Rule XII, IRR]. which shall not exceed the period of 60 months
and the aggregate income benefit shall not be
Qualifications less than P15,000.00 [Sec. 3, Rule XII, IRR].
With respect to the surviving legitimate spouse,
the qualification is that he/she has not Death Benefits After Retirement are
remarried. Allowed
Generally, the term “covered employees”
For the dependent children, the qualifications refers to an employee who, at the time of his
are: death, is still covered by the GSIS. However,
1. Unmarried; the implementing rules and regulations of the
2. Not gainfully employed; and Employees’ Compensation Commission allow
3. Not over 21 years of age provided death benefits to those retired employees
he/she is incapable of self-support due
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whose retirement was brought about by injury or illness, he/she shall be so provided at
permanent disability. cost to the employer until such time he/she is
declared fit or the degree of his/her disability
The Court is aware that death benefits must be has been established by the company-
granted to the primary beneficiaries of the designated physician [Sec. 20, A.2, POEA-
decedent to help the family of a permanent and SEC].
totally disabled person who was so disabled
because of causes that are work-oriented. The Sickness Allowance
rule applies all the more when the disabled The seafarer shall also receive sickness
person later dies because of the same cause allowance from his/her employer in an amount
or related cause [Manuzon v. ECC, G.R. No. equivalent to his/her basic wage computed
88573 (1990)]. from the time he/she signed off until he is
declared fit to work or the degree of disability
Death of a Person Receiving Permanent has been assessed by the company-
Total Disability Benefits designated physician.
Under Art. 200(b), death benefit shall be paid
to the beneficiaries if an employee, while The period within the seafarer shall be entitled
receiving permanent total disability benefit, to sickness allowance shall not exceed 120
dies. days. Payment of the sickness allowance shall
be made on a regular basis, but not less than
Prescription of Claims once a month [Sec. 20. A.3, POEA-SEC].
All money claims arising from employer-
employee relations shall be filed within three Other Expenses
(3) years from the time the cause of action The seafarer shall be entitled to reimbursement
accrued; otherwise they shall forever be barred of the cost of medicines prescribed by the
[Art. 306, LC]. company-designated physician.
2. Philippine Overseas Employment In case treatment of the seafarer is on an out-

Administration-Standard patient basis as determined by the company-
Employment Contract for Seafarers designated physician, the company shall
approve the appropriate mode of transportation
As part of a seafarer's deployment for overseas and accommodation.
work, he and the vessel owner or its
representative local manning agency are The reasonable cost of actual traveling
required to execute the POEA-SEC. expenses and/or accommodation shall be paid
Containing the standard terms and conditions subject to liquidation and submission of official
of seafarers' employment, the POEA-SEC is receipts and/or proof of expenses [Sec. 20,
deemed included in their contracts of A.3, POEA-SEC].
employment in foreign ocean-going vessels
[Sharpe Sea Personnel Inc. v. Mabunay, G.R. Post-Employment Medical Examination
No. 206113 (2017)]. General Rule: The seafarer shall submit
himself/herself to a post-medical examination
a. Compensation for Benefits for Injury by a company- designated physician within
three working days upon his return.
or Illness
Exception: When the seafarer is physically
incapacitated to do so. In which case, a written
Medical Expenses
notice to the agency within the same period is
If the injury or illness requires medical and/or
deemed as compliance [Sec. 20, A.3, POEA-
dental treatment in a foreign port, the employer
SEC].
shall be liable for the full cost of such medical,
serious dental, surgical and hospital treatment
Mandatory Reporting Requirement
as well as board and lodging until the seafarer
In the course of the treatment, the seafarer
is declared fit to work or to be repatriated.
shall also report regularly to the company-
designated physician specifically on the dates
However, if after repatriation, the seafarer still
as prescribed by the company-designated
requires medical attention arising from said
physician and agreed to by the seafarer.
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Failure of the seafarer to comply with the has the burden to prove that the
mandatory reporting requirement shall result in company-designated physician has
his forfeiture of the right to claim the above sufficient justification to extend the
benefits [Sec. 20, A.3, POEA-SEC]. period; and
4. If the company-designated physician
Schedule of Benefits still fails to give his assessment within
See Sec. 32 of POEA-SEC for the schedule of the extended period of 240 days, then
disability or impediment for injuries suffered the seafarer's disability becomes
and diseases including occupational diseases permanent and total, regardless of any
of illness contracted in the course of work. justification [Jebsens Maritime Inc. v.
Rapiz, G.R. No. 218871 (2017)].
Those illnesses not listed in Sec. 32 are
disputably presumed as work-related [Sec. 20, b. Compensation and Benefits for Death
A.4, POEA-SEC].
In case of work-related death of the seafarer,
Repatriation during the term of his contract, the employer
In case a seafarer is disembarked from the ship shall pay his/her beneficiaries the Philippine
for medical reasons, the employer shall bear currency equivalent to the amount of Fifty
the full cost of repatriation in the event the Thousand US dollars (US$50,000) and an
seafarer is declared: additional amount of Seven Thousand US
1. Fit for repatriation; or dollars (US$7,000) to each child under the age
2. Fit to work but the employer is unable of twenty-one (21) but not exceeding four (4)
to find employment for the seafarer on children, at the exchange rate prevailing during
board his/her former ship or another the time of payment [Sec. 20, B.1, POEA-
ship of the employer [Sec. 20, A.5, SEC].
POEA-SEC].
When Compensation Payable is Double
Guidelines for the Claim of Permanent Where death is caused by warlike activity while
Total Disability Benefits sailing within a declared war zone or war risk
The employer must also compensate the area, the compensation payable shall be
seafarer for his/her permanent total or partial doubled [Sec. 20, B.2, POEA-SEC].
disability as finally determined by the company-
designated physician. Other liabilities of the employer when the
seafarer dies as a result of work-related injury
The following guidelines shall govern or illness during the term of employment are as
seafarers' claims for permanent and total follows:
disability benefits: 1. The employer shall pay the deceased’s
1. The company-designated physician beneficiary all outstanding obligations
must issue a final medical assessment due the seafarer under this Contract.
on the seafarer's disability grading 2. The employer shall transport the
within a period of 120 days from the remains and personal effects of the
time the seafarer reported to him; seafarer to the Philippines at
2. If the company-designated physician employer’s expense except if the death
fails to give his/her assessment within occurred in a port where local
the period of 120 days, without any government laws or regulations do not
justifiable reason, then the seafarer's permit the transport of such remains. In
disability becomes permanent and case death occurs at sea, the
total; disposition of the remains shall be
3. If the company-designated physician handled or dealt with in accordance
fails to give his/her assessment within with the master’s best judgment.
the period of 120 days with a sufficient
justification (e.g. seafarer required In all cases, the employer/master shall
further medical treatment or seafarer communicate with the manning agency
was uncooperative), then the period of to advise for disposition of seafarer’s
diagnosis and treatment shall be remains.
extended to 240 days. The employer
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3. The employer shall pay the
beneficiaries of the seafarer the
Philippine currency equivalent to the
amount of US$1,000.00 for burial
expenses at the exchange rate
prevailing during the time of payment
[Sec. 20, B.4, POEA-SEC].
When Compensation is Not Payable

No compensation and benefits shall be
payable in respect of any injury, incapacity,
disability or death of the seafarer resulting from
his willful or criminal act or intentional breach of
his duties, provided however, that the employer
can prove that such injury, incapacity, disability
or death is directly attributable to the seafarer
[Sec. 20, D, POEA-SEC].
Note: Applies to both disability and death

benefits.
Prescription of Claims
All claims arising from this contract shall be
made within three (3) years from the date the
cause of action arises, otherwise the same
shall be barred [Sec. 30, POEA-SEC].
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V. LABOR RELATIONS b. Government Employees of

Corporations Created Under the
Corporation Code
A. Right to Self-Organization
The right to self-organization shall not be
1. Who May Join, Form, or Assist denied to government employees [Sec. 2(5),
Art. IX-B, Constitution].
Labor Organizations or Workers’
Employees of government corporations
Associations established under the Corporation Code shall
a. All employees
have the right to organize and to bargain
b. Government employees of collectively with their respective employers.
corporations created under the
Corporation Code All other employees in the civil service shall
c. Supervisory Employees
have the right to form associations for
d. Aliens with valid working permits
purposes not contrary to law [Art. 254].
e. Security personnel
All government employees can form, join or
a. All Employees assist employees’ organizations of their own
choosing for the furtherance and protection of
All persons employed in commercial, industrial their interests. They can also form, in
and agricultural enterprises and in religious, conjunction with appropriate government
charitable, medical or educational institutions, authorities, labor-management committees,
whether operating for profit or not, shall have work councils and other forms of workers’
the right to self-organization and to form, join or participation schemes to achieve the same
assist labor organizations of their own objectives [E.O. 180, Sec. 2 (1987)].
choosing for purposes of collective bargaining.
(Presumes an employer-employee c. Supervisory Employees
relationship)
Supervisory employees are those who, in the
Ambulant, intermittent and itinerant workers, interest of the employer, effectively
self-employed people, rural workers and those
recommend such managerial actions if the
without any definite employers may form labor
exercise of such authority is not merely
organizations for their mutual aid and
routinary or clerical in nature but requires the
protection [Art. 253]. use of independent judgment [Art. 219(m)].
Any employee, whether employed for a definite What is essential is the nature of the
period or not, shall, beginning on his first day of employee’s function and not the nomenclature
service, be considered an employee for or title given to the job which determines
purposes of membership in any labor union
whether the employee has rank-and-file or
[Art. 292(c)].
managerial status or whether he is a
supervisory employee [Tagaytay Highlands
Employee […] shall include any individual
International Golf Club, Inc. v. Tagaytay
whose work has ceased as a result of or in
Highlands Employees Union-PTGWO, G.R.
connection with any current labor dispute or 142000 (2003)].
because of any unfair labor practice if he has
not obtained any other substantially equivalent
and regular employment [Art. 219(f)].
d. Aliens with Valid Working Permits
General Rule: All aliens, natural or juridical,

Employees of non-profit organizations are now
[…] are strictly prohibited from engaging
permitted to form, organize or join labor unions
directly or indirectly in all forms of trade union
of their choice for purposes of collective
activities [Art. 284].
bargaining [FEU-Dr. Nicanor Reyes Medical
Foundation Inc. v. Trajano, G.R. No. 76273
(1987)].
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Exception: Aliens may exercise the right to Supervisory employees shall not be eligible for
self-organization and join or assist labor unions membership in the collective bargaining unit of
for purposes of collective bargaining, provided the rank-and-file employees but may join,
the following requisites are fulfilled: assist or form separate collective bargaining
1. With valid working permits issued by units and/or legitimate labor organizations of
the DOLE; and their own. The rank and file union and the
2. They are nationals of a country which supervisors' union operating within the same
grants the same or similar rights to establishment may join the same federation or
Filipino workers [Art. 284] national union.
a. As certified by DFA; OR
b. Has ratified either ILO Conventions Rationale: Supervisory employees, while in
No. 87 and 98 [Sec. 2, Rule II, Book the performance of supervisory functions,
V, IRR] become the alter ego of the management in the
making and the implementing of key decisions
e. Security Personnel at the sub-managerial level. Certainly, it would
be difficult to find unity or mutuality of interests
The security guards and other personnel in a bargaining unit consisting of a mixture of
employed by the security service contractor rank-and-file and supervisory employees
shall have the right: [Toyota Motor Phil. Corp. v. Toyota Motor Phil.
1. To form, join, or assist in the formation Corp. Labor Union, G.R. No. 121084 (1997)].
of a labor organization of their own
choosing for purposes of collective Supervisor and Rank and File Union
bargaining and Affiliation
2. To engage in concerted activities which The rank and file union and the supervisors’
are not contrary to law including the union operating within the same establishment
right to strike [D.O. No. 14 Series of may join the same federation or national union
2001 (Guidelines Governing the [Art. 255].
Employment and Working Conditions
of Security Guards and Similar Note also: Prior to the enactment of RA 9481,
Personnel in the Private Security which inserted a new provision [Art. 245-A,
Industry)]. now Art. 256], the Court held in De La Salle
University v. Laguesma that a local
On Dec. 24, 1986, President C. Aquino issued supervisors’ union is not allowed to affiliate with
EO No. 111 which eliminated the provision a national federation of unions of rank and file
which made security guards ineligible to join employees only where two conditions concur:
any labor organization. In 1989, Congress 1. The rank-and-file employees are
passed RA 6715 which also did not impose directly under the authority of
limitations on the ability of security guards to supervisory employees
join labor organizations. Thus, security guards 2. The national federation is actively
“may now freely join a labor organization of the involved in union activities in the
rank-and-file or that of the supervisory union, company [De La Salle University
depending on their rank” [Manila Electric Co. v. Medical Center and College of
SOLE, G.R. No. 91902 (1991)]. Medicine v. Laguesma, G.R. No.
102084 (1998)].
2. Restrictions as to:
c. Confidential Employees
a. Managerial Employees
Doctrine of Necessary Implication
Managerial employees are not eligible to join, While Art. 255 of the Labor Code singles out
assist or form any labor organization [Art. 255]. managerial employees as ineligible to join,
assist or form any labor organization, under the
b. Supervisory Employees doctrine of necessary implication, confidential
employees are similarly disqualified. This
doctrine states that what is implied in a statute
is as much a part thereof as that which is
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expressed [Metrolab Industries Inc. v. Roldan- internal business operations of the company is
Confessor, G.R. No. 108855 (1996)]. not per se a ground for the exclusion in the
bargaining unit [Coca-Cola Bottlers v. IPTEU,
Nature of Access Test G.R. No. 193798 (2015)].
Confidential employees, by the nature of their
functions, assist and act in a confidential d. Employee-Members of Cooperatives
capacity to, or have access to confidential
matters of, persons who exercise managerial General Rule: An employee of a cooperative
functions in the field of labor relations. who is a member and co-owner thereof cannot
invoke the right to collective bargaining for
Requisites certainly an owner cannot bargain with himself
1. The confidential relationship must exist or his co-owners [Batangas-I Electric
between the employees and his Cooperative Labor Union v. Romeo A. Young,
supervisor, and G.R. No. 62386 (1988)].
2. The supervisor must handle the
prescribed responsibilities relating to Irrespective of the degree of their participation
labor relations [San Miguel Supervisors in the actual management of the cooperative,
and Exempt Union v. Laguesma, G.R. all members thereof cannot form, assist or join
No. 110399 (1997)]. a labor organization for the purpose of
collective bargaining [Benguet Electric
Function Test: Nomenclature is not Cooperative v. Ferrer-Calleja, G.R. No. 79025
controlling (1989)].
The mere fact that an employee is designated
“manager” does not ipso facto make him one. Exception: Employees who withdrew their
Designation should be reconciled with the membership from the cooperative are entitled
actual job description of the employee [Paper to form or join a labor union for the negotiations
Industries Corp. of the Philippines. v. of a Collective Bargaining Agreement [Central
Laguesma, G. R. No.101738 (2000)]. Negros Electric Cooperative, Inc. v. DOLE,
G.R. No. 94045 (1991)].
Rationale of Exclusion of Confidential
Employees e. Employees of International
If confidential employees could unionize in Organizations
order to bargain for advantages for
themselves, then they could be governed by International organizations are endowed with
their own motives rather than the interest of the some degree of international legal personality.
employers. They are granted jurisdictional immunity, as
provided in their organization’s constitutions, to
Moreover, unionization of confidential safeguard them from the disruption of their
employees for the purpose of collective functions.
bargaining would mean the extension of the
law to persons or individuals who are supposed Immunity […] is granted to avoid interference
to act in the interest of the employers. It is not by the host country in their internal workings.
far-fetched that in the course of collective The determination [by the executive branch]
bargaining, they might jeopardize that interest has been held to be a political question
which they are duty bound to protect [Metrolab conclusive upon the Courts in order not to
Industries Inc. v. Roldan-Confessor, G.R. No. embarrass a political department of
108855 (1996)]. Government [Hence], a certification election
cannot be conducted in an international
Confidential Information: Must relate to organization to which the Philippine
labor relations and not from a business Government has granted immunity from local
standpoint jurisdiction [International Catholic Migration
An employee must assist or act in a confidential Commission v. Calleja, G.R. No. 85750
capacity and obtain confidential information (1990)].
relating to labor relations policies. Exposure to
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3. Determination of Appropriate B. Legitimate Labor
Bargaining Unit (ABU) Organizations
Effect of inclusion of employees outside 1. Registration with the DOLE
of the ABU
General Rule: It shall not be a ground for the Independent Labor Unions, Chartered
cancellation of the registration of the union. Locals, Workers’ Associations
Said employees are automatically deemed Applications for registration of independent
removed from the list of membership of said labor unions, chartered locals, workers’
union [Art. 256]. associations shall be filed with the Regional
Office where the applicant principally operates.
Exception: Unless such mingling was brought It shall be processed by the Labor Relations
about by misrepresentation, false statement or Division at the Regional Office in accordance
fraud under Art. 247 (Grounds for cancellation with Sections 2-A, 2-C, and 2-E of this Rule
of Union Registration) of the Labor Code [Sec. 1, Rule III, IRR].
[SMCC-Super v. Charter Chemical and
Coating Corporation, G.R. No. 169717 (2011)]. Federations, National Unions Or Workers’
Associations
Applications for registration of federations,
4. Non-Interference with Workers’ national unions or workers’ associations
Rights to Self-Organization operating in more than one region shall be filed
with the Bureau or the Regional Offices, but
It shall be unlawful for any person to restrain, shall be processed by the Bureau in
coerce, discriminate against or unduly interfere accordance with Sections 2-B and 2-D of this
with employees and workers in their exercise Rule [Sec. 1, Rule III, IRR].
of the right to self-organization.
2. Cancellation of Registration
Such right shall include the right to form, join,
or assist labor organizations for the purpose of Where to File:
collective bargaining through representatives Subject to the requirements of notice and due
of their own choosing and to engage in lawful process, the registration of any legitimate
concerted activities for the same purpose for independent labor union, local/chapter and
their mutual aid and protection, subject to the workers’ association may be cancelled by the
provisions of Article 264 of this Code [Art. 257]. Regional Director upon the filing of a petition
for cancellation of union registration, or
application by the organization itself for
voluntary dissolution.
The petition for cancellation or application for

voluntary dissolution shall be filed in the
Regional Office which issued its certificate of
registration or creation.
In the case of federations, national or industry

unions and trade union centers, the Bureau
Director may cancel the registration upon the
filing of a petition for cancellation or application
for voluntary dissolution in the Bureau of Labor
Relations [Sec. 1, Rule XIV, IRR].
Who May File:

Any party-in-interest may commence a
petition for cancellation of registration, except
in actions involving violations of Article 250
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(renumbered), which can only be commenced Union Chartering Affiliate
by members of the labor organization An independent union affiliated with a
concerned [Sec. 2, Rule XIV, IRR]. federated, national union or a chartered local
which was subsequently granted independent
Grounds for Cancellation: registration but did not disaffiliate from its
Any of the following may constitute as ground/s federation, reported to the Regional Office and
for cancellation of registration of labor the Bureau in accordance with Rule III, Secs. 6
organizations: and 7 [Sec. 1(b), Rule I, Book V, IRR].
a. misrepresentation, false statement or
fraud in connection with the adoption or Independent Union
ratification of the constitution and by- A labor organization operating at the enterprise
laws or amendments thereto, the level that acquired legal personality through
minutes of ratification, the list of independent registration under Art. 234 of the
members who took part in the Labor Code and Rule III, Sec. 2-A [Sec. 1(x),
ratification; Rule I, Book V].
b. misrepresentation, false statements or
fraud in connection with the election of National Union or Federation
officers, minutes of the election of A group of legitimate labor unions in a private
officers, and the list of voters; or establishment organized for collective
c. voluntary dissolution by the members bargaining or for dealing with employers
[Art. 247, Labor Code; Sec. 3, Rule concerning terms and conditions of
XIV, IRR]. employment for their member union or for
participating in the formulation of social and
Prohibited Grounds for Cancellation [Sec. employment policies, standards and programs,
6, Rule XIV, Book V, IRR]: registered with the BLR in accordance with
a. The inclusion as union members of Rule III Sec. 2-B [Sec. 1(ll), Rule I, Book V,
employees who are outside the IRR].
bargaining unit shall not be a ground
to cancel the union registration. Chartered Local (Local Chapter)
b. The ineligible employees are A labor organization in the private sector
automatically deemed removed from operating at the enterprise level that acquired
the list of membership of the union. legal personality through registration with
c. The affiliation of the rank-and-file Regional Office [Sec. 1(i), Rule I, Book V, IRR].
and supervisory unions operating
within the same establishment to the A duly registered federation or national union
same federation or national union shall may directly create a local chapter by issuing a
not be a ground to cancel the charter certificate indicating the establishment
registration of either union. of the local chapter. The chapter shall acquire
legal personality only for purposes of filing a
3. Affiliation/Disaffiliation from petition for certification election from the date it
National Union or Federation was issued a charter certificate.
Local unions do not owe their creation and The chapter shall be entitled to all other rights
existence to the national federation to which and privileges of a legitimate labor organization
they are affiliated but, instead, to the will of their only upon the submission of the following
members [...] The local unions remain the basic documents in addition to its charter certificate:
units of association, free to serve their own 1. The names of the chapter's officers,
interests subject to the restraints imposed by their addresses, and the principal office
the constitution and by-laws of the national of the chapter; and
federation, and free also to renounce the 2. The chapter's constitution and by-laws:
affiliation upon the terms laid down in the Provided, That where the chapter's
agreement which brought such affiliation into constitution and by-laws are the same
existence [Philippine Skylanders, Inc. v. NLRC, as that of the federation or the national
G.R. No. 127374 (2002)]. union, this fact shall be indicated
accordingly.
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The additional supporting requirements shall Purpose of Affiliation
be: To foster the free and voluntary organization of
1. Certified under oath by: a strong and united labor movement [Art. 218-
a. Secretary; or A(c)].
b. Treasurer
2. Attested by: Its president [Art. 241]. The sole essence of affiliation is to increase, by
collective action, the common bargaining
Lesser Requirements for Chartered power of local unions for the effective
Locals enhancement and protection of their interests.
The intent of the law in imposing less Admittedly, there are times when without
requirements in the case of a branch or local of succor and support local unions may find it
a registered federation or national union is to hard, unaided by other support groups, to
encourage the affiliation of a local union with a secure justice for themselves [Philippine
federation or national union in order to increase Skylanders, Inc. v. NLRC, G.R. No. 127374
the local unions’ bargaining powers respecting (2002)].
terms and conditions of labor [SMCEU-
PTGWO v. SMPEU-PDMP, G.R. No. 171153 Nature of Relationship: Agency
(2007)]. The mother union, acting for and on behalf of
its affiliate, had the status of an agent while the
Trade Union Centers Cannot Create local union remained the basic unit of the
Locals or Chapters association, free to serve the common interest
Art. 241 mentions only “a duly registered of all its members subject only to the restraints
federation or national union.” imposed by the constitution and by-laws of the
association [...] The same is true even if the
The solemn power and duty of the Court to local is not a legitimate labor organization
interpret and apply the law does not include the [Filipino Pipe and Foundry Corp v. NLRC, G.R.
power to correct by reading into the law what is No. 115180 (1998)].
not written therein [SMCEU-PTGWO v.
SMPEU-PDMP, G.R. No. 171153 (2007)]. Effect of Affiliation
Inclusion of [the federation’s initials] in the
National Union or Federation v. Trade registration is merely to stress that they are its
Unions affiliates at the time of registration. It does not
mean that said local unions cannot stand on
National Union or Trade Unions their own [Adamson v. CIR, G.R. No. L-35120
Federation (1984)].
With at least ten (10) Composed of a
Mere affiliation does not divest the local union
locals or chapters (or group of registered
of its own personality, neither does it give the
independent unions national unions or
mother federation the license to act
[Sec. 2-B(5), Rule III, federations
independently of the local union. It only gives
Book V, IRR], each
rise to a contract of agency, where the former
of which must be a
acts in representation of the latter. Hence, local
duly recognized
unions are considered principals while the
collective bargaining
federation is deemed to be merely their agent
agent [Art. 244]
[Insular Hotel Employees Union NFL v.
Can directly create Cannot directly Waterfront Insular Hotel, G.R. No. 174040-41
local chapter [Art. create local chapter (2010)].
241] [SMCEU-PTGWO v.
SMPEU-PDMP, G.R. Disaffiliation
No. 171153 (2007)] In the absence of specific provisions in the
federation’s constitution prohibiting
disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its
parent union [Malayang Manggagawa sa M.
Greenfield v. Ramos, G.R. No. 113907 (2000)].
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Local unions have the right to separate from Obligation to Pay Union Dues is
their mother federation on the ground that as Coterminous with Membership
separate and voluntary associations, local “The employees’ check-off authorization, even
unions do not owe their creation and existence if declared irrevocable, is good only as long as
to the national federation to which they are they remain members of the union concerned”.
affiliated but, instead, to the will of their A contract between an employer and the
members [Philippine Skylanders, Inc. v. NLRC, parent organization as bargaining agent for the
G.R. No. 127374 (2002)]. employees is terminated by the disaffiliation of
the local of which the employees are members
A local union is free to serve the interests of all [Volkschel Labor Union v. BLR, No. L-45824
its members, including the freedom to (1985)].
disaffiliate or declare its autonomy from the
federation to which it belongs when Power to Represent Principal Severed
circumstances warrant, in accordance with the By [the local union’s disaffiliation from the
constitutional guarantee of freedom of federation], the vinculum that previously bound
association [Malayang Samahan ng mga the two entities was completely severed [The
Manggagawa sa M. Greenfield, Inc. v. Ramos, federation] was divested of any and all power
G.R. No. 113907 (2000)]. to act in representation of the union. Thus, any
act performed by [the federation] affecting the
Period of Disaffiliation interests and affairs of the [local union] is
Generally, a labor union may disaffiliate from rendered without force and effect [ANGLO v.
the mother union to form a local or independent Samana, G.R. No. 118562 (1996)].
union only during the 60-day freedom period
immediately preceding the expiration of the Substitutionary Doctrine
CBA. However, even before the onset of the The “substitutionary” doctrine provides that the
freedom period, disaffiliation may be carried employees cannot revoke the validly executed
out when there is a shift of allegiance on the collective bargaining contract with their
part of the majority of the members of the union employer by the simple expedient of changing
[Alliance of Nationalist and Genuine Labor their bargaining agent.
Organization v. Samahan ng mga
Manggagawang Nagkakaisa sa Manila Bay It is in the light of this that the phrase “said new
Spinning Mills, G.R. No. 118562 (1996)]. agent would have to respect said contract”
must be understood. It only means that the
[A] local union which has affiliated itself with a employees, thru their new bargaining agent,
federation is free to sever such affiliation cannot renege on their collective bargaining
anytime and such disaffiliation cannot be contract, except of course to negotiate with
considered disloyalty [Malayang Manggagawa management for the shortening thereof
sa M. Greenfield v. Ramos, G.R. No. 113907 [Benguet Consolidated v. BCI Employees and
(2000)]. Workers Union-PAFLU, G.R. No. L-24711
(1968)].
Effect of Disaffiliation
Conditions to Apply the Doctrine
a. On Legal Personality 1. Change of bargaining agent (through
A registered independent union retains its legal affiliation, disaffiliation, or other
personality while a chartered local loses its means); and
legal personality unless it registers itself. 2. Existing CBA with the previous
bargaining agent [Benguet
b. No Effect on CBA Consolidated v. BCI Employees and
A disaffiliation does not disturb the Workers Union-PAFLU, G.R. No. L-
enforceability and administration of a collective 24711 (1998)].
agreement; it does not occasion a change of
administrators of the contract nor even an
amendment of the provisions thereof
[Volkschel Labor Union v. BLR, No. L-45824
(1985)].
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Effects 5. Rights and Conditions of
1. New bargaining agent cannot revoke Membership in Legitimate Labor
and must respect the existing CBA; Organizations [Art. 250]
and
2. It may negotiate with management to
a. Direct election and tenure of officers
shorten the existing CBA’s lifetime.
b. Payment of membership dues and
other assessments
4. Rights of Legitimate Labor
Organizations [Art. 251] 6. Check Off, Assessments, Union
Dues, and Agency Fees
a. Right to act as the representative of
its members for the purpose of
a. Check-off
collective bargaining [Art. 251]
b. Right to be certified as the exclusive
representative of all the employees in A check-off is a process or device whereby the
an appropriate bargaining unit for employer, on agreement with the Union,
recognized as the proper bargaining
purposes of collective bargaining [Art.
251] representative, or on prior authorization from
c. Right to be furnished by the employer, the employees, deducts union dues or agency
upon written request, with its annual fees from the latter’s wages and remits them
audited financial statements, including directly to the Union [Marino v. Gamilla, G.R.
the balance sheet and the profit and No. 149763 (2009)].
loss statement, within thirty (30)
calendar days from the date of receipt The system of check-off is primarily for the
of the request, after the union has been benefit of the Union and, only indirectly, for the
duly recognized by the employer or benefit of the individual employees [Marino v.
certified as the sole and exclusive Gamilla, G.R. No. 149763 (2009)].
bargaining representative of the
employees in the bargaining unit, or Note: For a check-off to be valid, it must comply
with the requirements of a valid special
within sixty (60) calendar days before
the expiration of the existing collective assessment.
bargaining agreement, or during the
collective bargaining negotiation [Art. Jurisdiction over Check-off Disputes
251] The Bureau of Labor Relations has jurisdiction
d. Right to own property, real or to hear, decide and to mete out punishment
personal, for the use and benefit of the any violation under Art. 250 upon report of at
labor organization and its members least 30% of the union membership OR
[Art. 251] members specially concerned to the
e. Right to sue and be sued in its Bureau.
registered name [Art. 251]
f. Right to undertake all other activities Note: Secretary of Labor or his duly authorized
designed to benefit the organization representative may inquire into financial
and its members, including activities of legitimate labor orgs
cooperative, housing, welfare and a. UPON filing of complaint under oath
other projects not contrary to law [Art. and supported by written consent of at
251] least 20% of total membership,
g. Right to draw up their constitutions b. Provided, such inquiry shall not be
and rules to elect their representatives conducted during (60)-day freedom
in full freedom, to organize their period nor within the thirty (30) days
administration and activities and to immediately preceding the date of
formulate their programs [Minette election of union officials [Art. 289].
Baptista, et al. v. Rosario Villanueva, et
al., G.R. No. 194709 (2013)]
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b. Assessment Union dues are payments to meet the union’s
general and current obligations. The payment
Special assessments are payments for a must be regular, periodic, and uniform
special purpose, especially if required only for [Azucena].
a limited time [Azucena].
Every payment of fees, dues or other
General Rule: No special assessment or other contributions by a member shall be evidenced
extraordinary fees may be levied upon the by a receipt:
members of a labor organization. a. signed by the officer or agent making
the collection and
Exception: Unless authorized by a written b. entered into the record of the
resolution of a majority of all the members at a organization to be kept and maintained
general membership meeting duly called for for the purpose [Art. 250 (h)].
the purpose [Art. 250 (n)].
d. Agency Fees
Other than for mandatory activities under the
Code, the following may not be checked off Art. 259 (e) [2nd sentence to last
from any amount due to an employee without sentence]
an individual written authorization duly signed Nothing in this Code or in any other law shall
by the employee: stop the parties from requiring membership in
a. special assessments a recognized collective bargaining agent as a
b. attorney’s fees condition for employment.
c. negotiation fees
d. or any other extraordinary fees Exception: Those employees who are already
members of another union at the time of the
The authorization should specifically state the signing of the collective bargaining agreement.
amount, purpose and beneficiary of the
deduction [Art. 250 (o)]. Employees of an appropriate bargaining unit
who are not members of the recognized
Requisites for a Valid Special collective bargaining agent may be assessed
Assessment a reasonable fee.
1. Authorization by a written resolution of • Amount of reasonable fee:
the majority of ALL the members at the equivalent to the dues and other fees
general membership meeting called for paid by members of the recognized
the purpose; collective bargaining agent
2. Secretary’s record of the minutes of the • Condition for assessment: If such
meeting; AND non-union members accept the
3. Individual written authorization for benefits under the collective bargaining
check off duly signed by the employees agreement:
concerned which indicates the: o Provided, That the individual
a. Amount authorization required under
b. Purpose Article 242, paragraph (o) shall
c. Beneficiary of deduction [Gabriel v. not apply to the non-members
SOLE, G.R. No. 115949 (2000)]. of the recognized collective
bargaining agent
Strict Compliance for Special
Assessment An amount, equivalent to union dues, which a
There must be strict and full compliance with non-union member pays to the union because
the requisites. Substantial compliance is not he benefits from the CBA negotiated by the
enough [Palacol v. Ferrer-Calleja, G.R. No. union [Azucena].
85333 (1990)].
c. Union dues
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Rationale for Allowing Agency Fees Statutory Basis and Rationale
The legal basis of the union’s right to agency Art. 259(e). Unfair Labor Practices of
fees is neither contractual nor statutory but Employers: Nothing in this Code or in any
quasi-contractual, deriving from the other law shall stop the parties from requiring
established principle that non-union employees membership in a recognized collective
may not unjustly enrich themselves by bargaining agent as a condition for
benefiting from employment conditions employment, except those employees who are
negotiated by the bargaining union [Holy Cross already members of another union at the time
of Davao College, Inc v. Hon. Joaquin, G.R. of the signing of the collective bargaining
No. 110007 (1996)]. agreement.
When Agency Fee Assessed The law has allowed stipulations for 'union
If such a non-union member accepts the shop' and 'closed shop' as means of
benefits under the collective bargaining encouraging workers to join and support the
agreement [Art. 259(e)]. union of their choice in the protection of their
rights and interests vis-a-vis the employer [Del
Measure of Fee Monte Philippines v. Salvidar, G.R. No. 158620
A reasonable fee equivalent to the dues and (2006)].
other fees paid by members of the recognized
collective bargaining agent [Art. 259(e)]. Purpose: To safeguard and ensure the
existence of the union and thus, promote
Requirements: unionism in general as a state policy.
1. Non-member of SEBA
2. Member of Collective Bargaining Unit It is the policy of the State to promote unionism
3. Reasonable fee equivalent to the dues to enable the workers to negotiate with the
and other fees paid by members management on the same level and with more
4. Acceptance of CBA benefits persuasiveness than if they were to individually
and independently bargain for the
7. Union Security Clause improvement of their respective conditions […]
For this reason, the law has sanctioned
Union security is a generic term which is stipulations for the union shop and closed shop
applied to and comprehends “closed shop,” as a means of encouraging the workers to join
“union shop,” “maintenance of membership” or and support the labor union of their own choice
any other form of agreement which imposes vis-à-vis the employer [Liberty Flour Mills
upon employees the obligation to acquire or Employees v. Liberty Flour Mills, G.R. No.
retain union membership as a condition 58768-70 (1989)].
affecting employment [NUWHRAIN v. NLRC,
G.R. No. 179402 (2008)]. Coverage
General Rule: All employees in the bargaining
[Union security clause] is an indirect restriction unit covered by the union security clause are
on the right of an employee to self- subject to its terms.
organization. It is a solemn pronouncement of
a policy that while an employee is given the Exception:
right to join a labor organization, such right 1. Employees who are already members
should only be asserted in a manner that will of another union at the time of the
not spell the destruction of the same signing of the collective bargaining
organization [Tanduay Distillery Labor Union v. agreement may not be compelled by
NLRC, G.R. No. 75037 (1987)]. any union security clause to join any
union [Art. 254 (e)].
[Employees], although entitled to disaffiliation 2. Employees already in service at the
from their union to form a new organization of time the closed shop union security
their own, must, however, suffer the clause took effect.
consequences of their separation from the a. A closed shop provision in a
union under the security clause of the CBA CBA is not to be given a
[Villar v. Inciong, G.R. No. L-50283-84 (1983)]. retroactive effect as to preclude
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its being applied to employees b. Maintenance of Membership Shop
already in service [Guijarno v.
CIR, G.R. No. L-28791-93 Condition for Continued Employment
(1973)]. An agreement where present and future
3. Any employee who, at the time the employees are not compelled to join the SEBA,
union security clause took effect, is a but once so joined, they must maintain their
bona fide member of religious membership as a condition for continued
organization which prohibits its employment until they are promoted or
members from joining labor unions on transferred out of the bargaining unit or the
religious grounds [Reyes v. Trajano, agreement is terminated.
209 SCRA 484 (1992)].
4. Confidential employees who are There is maintenance of membership shop
excluded from the rank-and-file when employees, who are union members as
bargaining unit. of the effective date of the agreement, or who
5. Employees excluded from the union thereafter become members, must maintain
security provisions by express terms of union membership as a condition for [their]
the agreement [BPI v. BPI Employees continued employment until they are promoted
Union-Davao Chapter, G.R. No. or transferred out of the bargaining unit or the
164301 (2010)]. agreement is terminated [General Milling
Corporation (GMC) v. Casio, G.R. No. 149552
a. Closed-shop (2010)].
Condition for Employment c. Union Shop

An agreement where only union members may
be employed and, for the duration of the Condition for Continued Employment
agreement, remains a member in good There is union shop when all new regular
standing of a union. employees are required to join the union within
a certain period as a condition for their
A closed shop may be defined as an enterprise continued employment [General Milling
in which, by agreement between the employer Corporation (GMC) v. Casio, G.R. No. 149552
and his employees or their representatives, no (2010)].
person may be employed in any or certain
agreed departments of the enterprise unless Non-members may be hired, but to retain
he or she is, becomes, and, for the duration of employment, they must become union
the agreement, remains a member in good members after a certain period. The
standing of a union entirely comprised of or of requirement applies to present and future
which the employees in interest are a part employees [Azucena].
[General Milling Corporation (GMC) v. Casio,
G.R. No. 149552 (2010)]. d. Modified Union Shop
The closed shop provision can also be a potent Condition for Continued Employment of
weapon wielded by the union against the Future Employees
workers whom the union is supposed to protect Employees who are not union members at the
in the first place. Hence, any doubt as to the time of signing the contract need not join the
existence of a closed shop provision in the CBA union, but all workers hired thereafter must join
will be resolved in favor of the nonexistence of [Azucena].
the closed shop provision [Azucena].
e. Agency Shop
Employees belonging to an appropriate

collective bargaining unit who are not members
of the recognized collective bargaining agent
may be assessed a reasonable fee equivalent
to the dues and other fees paid by members of
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the recognized collective bargaining agent, if it is based on a [union security clause] of a
such non-union members accept the benefits CBA, i.e. the substantive as well as the
under the collective agreement. procedural due process requirements [Del
Monte v. Saldivar, G.R. No. 158620 (2006)].
Provided, That the individual authorization
required under Art [250], paragraph (o) of [the Obligations and Liabilities
Labor] Code shall not apply to non-members of Where the employer dismissed his employees
the recognized collective bargaining agent [Art. in the belief in good faith that such dismissal
259(e)]. was required by the [union security provision]
of the collective bargaining agreement with the
Termination Due to Union Security union, he may not be ordered to pay back
Provision compensations to such employees although
Termination of employment by virtue of a union their dismissal is found to be illegal
security clause strengthens the union and [Confederated Sons of Labor v. Anakan
prevents disunity in the bargaining unit within Lumber Co., G.R. No. L-12503 (1960)].
the duration of the CBA. The authorized
bargaining representative gains more numbers As dictated by fairness, […] the union shall be
and strengthens its position as against other liable to pay their backwages. This is because
unions which may want to claim majority management would not have taken the action
representation [Alabang Country Club v. it did, had it not been for the insistence of the
NLRC, G.R. No. 170287 (2008)]. labor union seeking to give effect to its
interpretation of a closed shop provision
Requisites for the Enforcement Of Union [Guijarno v. CIR, G.R. No. L-28791-93 (1973)].
Security Clauses
In terminating the employment of an employee
by enforcing the union security clause, the
employer needs only to determine and prove
that:
1. The union security clause is applicable;
2. The union is requesting for the
enforcement of the union security
provision in the CBA;
3. There is sufficient evidence to support
the union’s decision to expel the
employee from the union [Alabang
Country Club v. NLRC, G.R. No.
170287 (2008)].
Company Must Conduct Separate

Investigation or Hearing
The enforcement of union security clauses is
authorized by law provided such enforcement
is not characterized by arbitrariness, and
always with due process. Even if there are
valid grounds to expel the union officers, due
process requires that these union officers be
accorded a separate hearing by respondent
company [Malayang Samahan ng
Manggagawa sa M. Greenfield v. Ramos, G.R.
No. 113907 (2000)].
Requirement of Due Process

The requirements laid down by the law in
determining whether or not an employee was
validly terminated must still be followed even if
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C. Bargaining Representative makes no distinction as to their employment
status [...] All they need to be eligible to support
The labor organization designated or selected the petition is to belong to a bargaining unit
by the majority of the employees in an [Airtime Specialists, Inc. v. Ferrer-Calleja, G.R.
appropriate collective bargaining unit shall be No. 80612-16 (1990)].
the exclusive representative of the employees
in such unit for the purpose of collective Rationale for Non-Distinction Policy
bargaining [Art. 267]. Collective bargaining covers all aspects of the
employment relation and the resultant CBA
Labor Management Council binds all employees in the bargaining unit. All
Any provision of law to the contrary rank and file employees, probationary or
notwithstanding, workers shall have the right: permanent, have a substantial interest in the
a. To participate in policy and decision- selection of the bargaining representative
making processes of the establishment [Airtime Specialists, Inc. v. Ferrer-Calleja,
where they are employed insofar as supra].
said processes will directly affect their
rights, benefits and welfare. Dismissed Employees [Sec. 6, Rule IX,
b. To form labor-management councils, Book V, IRR]
for this purpose [Art. 267]. General Rule: [Dismissed] employees [who]
contested legality of the dismissal in a forum of
Selection of Representatives appropriate jurisdiction at the time of the
In organized establishments, issuance of the order for conduct of a
• the workers’ representatives to the certification election.
council shall be nominated by the
exclusive bargaining representative. Exception: Dismissal was declared valid in a
In establishments where no legitimate labor final judgment at the time of the conduct of the
organization exists, certification election.
• the workers representative shall be
elected directly by the employees at Disagreement Over Voters’ List
large [Sec. 2, Rule XXI, Book V, IRR]. All contested voters shall be allowed to vote
[but] their votes shall be segregated and sealed
in individual envelopes [Sec. 6, Rule IX, Book
Eligible Voter
V, IRR].
Eligible voter refers to a voter belonging to the
appropriate bargaining unit that is the subject
of the petition for certification election [Sec. Voting List and Voters
1(q), Rule VIII, Book V, IRR]. The basis of determining voters may be agreed
upon by the parties (i.e. the use of payroll)
All employees who are members of the [Acoje Workers Union v. NAMAWU, G.R. No.
appropriate bargaining unit three (3) months L-18848 (1963)].
prior to the filing of the petition shall be eligible
to vote [Sec. 6, Rule IX, Book V, IRR]. Non-Participation in Previous Election
has No Effect
Note: Rule VIII, Sec. 14 (f) and Rule IX, Sec. 6 Failure to take part in previous elections is no
refer to employees as those employed 3 bar to the right to participate in future elections.
months prior to the issuance of the order/the No law, administrative rule or precedent
filing of the petition for certification election prescribes forfeiture of the right to vote by
while Rule IX, Sec. 2 reckon the period of reason of neglect to exercise the right in past
employment from the “time of filing the certification elections [Reyes v. Trajano, G.R.
petition”. This difference has not been resolved No. 84433 (1992)].
in any case before the Supreme Court.
All rank and file employees in the appropriate

bargaining unit, whether probationary or
permanent are entitled to vote. The Code
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1. Modes to Acquire Status as Sole Failure to comply within the prescribed period
and Exclusive Bargaining Agent shall be deemed withdrawal of the request.
(SEBA)
If Unorganized Establishment [Sec. 4]
a. Finding of only 1 legitimate labor
a. SEBA Certification
organization – Regional Director shall
call a conference within five (5) working
Procedure [Rule VII, Book V, IRR] days for the SUBMISSION of:
1. File request for SEBA Certification [Sec. 1] 1. Names of employees in the
covered bargaining unit who signify
Who: Any legitimate labor organization support for certification; [and these]
employees comprise at least
File where: Regional Office which issued its majority of the number of
certificate of registration or certificate of
employees in the covered
creation of chartered local bargaining unit; and
2. Certification under oath by the
2. Indicate in the request [Sec. 2]: president of the requesting union or
a. Name and address of the requesting local that all documents submitted
legitimate labor organization; are true and correct based on
b. Name and address of the company personal knowledge
where it operates; b. Failure to Complete Requirements for
c. Bargaining unit sought to be SEBA Certification - the request for
represented; SEBA certification shall be referred to
d. Approximate number of employees in the election officer for the conduct of
the bargaining unit; and election pursuant to Rule IX of this
e. Statement of the existence/non- rules.
existence of other labor
organization/CBA. Note: If there is more than one Legitimate
Labor Organization, Art. 269 applies.
Certificate of Duly Certified by
If Organized Establishment [Sec. 6]
If the Regional Director finds the establishment
Registration President of requesting organized he/she shall refer it to the mediator-
union arbitrator for determination and propriety of
conducting a certification election.
Creation of President of the local
chartered local federation of the local 4. Regional Director shall act on the
submission [Sec. 4.1]
3. Regional Director shall act on the request
[Sec. 3] Incomplete The request shall be
requirements referred to Election Officer
When: Within one (1) day from submission of for the conduct of election
request pursuant to Rule IX.
Action: Complete Regional Director shall

a. Determine whether request is requirements issue a certification as
compliant with Sec. 2 and whether the SEBA
bargaining unit sought to be
represented is organized or not; and
b. Request a copy of the payroll 5. Regional Director shall post the SEBA
Certification [Sec. 4.1]
Note: If the Regional Director finds it deficient,
he/she shall advise the requesting union or Period: Fifteen (15) consecutive days
local to comply within ten (10) days from notice.
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Where: At least two (2) conspicuous places in 2. Certification Election
the establishment or covered bargaining unit.
Certification Election is the process of
Effect of SEBA Certification [Sec. 4.2] determining, through secret ballot, the sole and
Upon the issuance of the [SEBA Certification], exclusive representative of the employees in
the certified union or local shall enjoy all the an appropriate bargaining unit for purposes of
rights and privileges of an exclusive bargaining collective bargaining or negotiation [Sec. 1(i),
agent of all the employees in the covered Rule I, Book V, IRR].
bargaining unit.
Purpose
The certification shall bar the filing of a [PCE] The purpose of a certification election is
by any labor organization for a period of one (1) precisely the ascertainment of the wishes of
year from the date of its issuance. the majority of the employees in the
appropriate bargaining unit: to be or not to be
Upon expiration of this one-year period, any represented by a labor organization, and in the
legitimate labor organization may file a [PCE] affirmative case, by which particular labor
in the same bargaining unit represented by the organization [Reyes v. Trajano, G.R. No.
certified labor organization, unless a [CBA] 84433 (1992)].
between the employer and the certified labor
organization was executed and registered with Petition For Cancellation of Union
the Regional Office in accordance with Rule Registration DOES NOT Suspend or
XVII. Prevent Filing of Certification Election
A petition for cancellation of union registration
b. Certification/Consent Election shall not:
1. suspend the proceedings for
1. Consent Election certification election; nor
2. prevent the filing of a petition for
Consent Election means the election certification election [Art. 246].
voluntarily agreed upon by the parties with or
without the intervention by DOLE [Sec. 1(i), A certification election can be conducted
Rule I, Book V, IRR]. despite pendency of a petition to cancel the
union registration certificate. For the fact is that
Procedure [Sec. 11, Rule VIII, Book V, IRR] at the time the [union], whose registration
1. The parties may agree to hold a certificate is sought to be cancelled, filed its
consent election petition for certification, it still had the legal
a. Where no petition for certification personality to perform such act absent an order
election was filed; or directing its cancellation [Association of Court
b. Where a petition for certification of Appeals Employees v. Calleja, G.R. No.
election had been filed, and upon 94716 (1991)].
the intercession of Med-Arbiter
[Sec. 25, Rule VIII, Book V, IRR]. Allegation of Company Union a
2. Mediator-Arbiter shall call for the Prejudicial Question to a Petition for
consent election, reflecting the parties’ Certification Election
agreement and the call in the minutes A complaint for unfair labor practice may be
of the conference. Regional Director or considered a prejudicial question in a
authorized representative shall proceeding for certification election when it is
determine the Election Officer by raffle charged therein that one or more labor unions
in the presence of representatives of participating in the election are being aided, or
the contending unions if they so desire. are controlled, by the company or employer
3. First pre-election conference is [company union] [United CMC Textile Worker’s
scheduled within ten (10) days from the Union v. BLR, G.R. No. 51337(1984)].
date of the agreement. Subsequent
conferences may be called to expedite
and facilitate the holding of the consent
election.
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Rationale: The certification election may lead Who May Vote [Sec. 6, Rule IX, Book V,
to the selection of an employer-dominated or IRR]
company union as the employees’ bargaining All employees who are members of the
representative, and when the court finds that appropriate bargaining unit three (3) months
said union is employer-dominated in the unfair prior to the filing of the petition/request shall be
labor practice case, the union selected would eligible to vote.
be decertified and the whole election
proceedings would be rendered useless and An employee who has been dismissed from
nugatory [B.F. Goodrich Phils. Marikina v. B.F. work but has contested the legality of the
Goodrich Confidential and Salaried Employees dismissal in a forum of appropriate jurisdiction
Union, G.R. No. L-34069-70 (1973)]. at the time of the issuance of the order for the
conduct of a certification election shall be
Nature of Proceeding considered a qualified voter, unless his/her
Certification election is the most effective and dismissal was declared valid in a final judgment
the most democratic way of determining which at the time of the conduct of the certification
labor organization can truly represent the election.
working force in the appropriate bargaining unit
of a company [Samangang Manggagawa sa In case of disagreement over the voters’ list or
PERMEX v. SOLE, G.R. No. 107792 (1998)]. over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be
[It] is not a ‘litigation’ [...] but a mere segregated and sealed in individual envelopes.
investigation of a non-adversary, fact-finding
character [...] Who May File [Sec. 1, Rule VIII, Book V,
IRR]
The determination of the proceeding does not 1. Legitimate labor organization [Art. 219
entail the entry of remedial orders or redress of (h)]
rights, but culminates solely in an official 2. Local/chapter that has been issued a
designation of bargaining units and an charter certificate
affirmation of the employees’ expressed choice The chapter shall acquire legal personality
of bargaining agent [Angat River Irrigation only for purposes of filing a petition for
System v. Angat River Worker’s Union certification election from the date it was
(PLUM), G.R. Nos. L-10943 and L-10944 issued a charter certificate [Art. 241]
(1957)]. 3. National union or federation that has
issued a charter certificate to its
Technical rules and objections should not local/chapter [in behalf of the latter]
hamper the correct ascertainment of the labor 4. A group of legitimate labor unions in a
union that has the support or confidence of the private establishment organized for
majority of the workers and is thus entitled to collective bargaining or for dealing with
represent them in their dealings with employers concerning terms and
management [Port Workers Union v. conditions of employment for their
Laguesma, G.R. Nos. 94929-30 (1992)]. member unions or for participating in
the formulation of social and
Certification Union Election employment policies, standards and
Election programs, registered with the BLR in
accordance with Rule III Sec. 2-B [Sec.
To determine the To elect union 1 (ll), Rule I, Book V, IRR]
Exclusive Bargaining officers 5. Employer (when requested to bargain
Agent collectively and no existing CBA)
All members of the Only union members Requisites:

appropriate may vote a. Employer is requested to bargain
bargaining unit collectively; AND
b. No existing registered CBA in the
unit [Art. 270]
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Venue for Filing Petition Procedure: Certification election in an
File with the Regional Office which issued the organized establishment
petitioning union’s certificate of registration or
certificate of creation of chartered local. Organized Establishment
Refers to an enterprise where there exists a
At [petitioner’s option], [it may file] the petition recognized or certified sole and exclusive
and its supporting documents [...] online [Sec. bargaining agent [Sec. 1(ll), Rule I, Book V,
2, Rule VIII, Book V, IRR]. IRR].
Where two or more petitions involving the Procedure [Art. 268]

same bargaining unit [Sec. 2, Rule VIII, Book 1. File a verified petition questioning the
V, IRR]: majority.
2. It must be filed within the 60-day period
Filed in Automatically consolidated with
before expiration of CBA (freedom
One [Med-Arbiter] who first acquired
period).
Regional jurisdiction.
3. Supported by written consent of at
Office
least 25% of ALL employees in the
Filed in The Regional Office in which the bargaining unit (substantial support).
Different petition was first filed shall 4. Med-Arbiter shall automatically order
Regional exclude all others; [...] the latter an election.
Offices shall indorse the petition to the
former for consolidation. When Petition Must be Filed
Freedom Period
Procedure: Certification election in an Within the sixty (60)-day period before the
unorganized establishment expiration of the collective bargaining
agreement [Art. 271].
Unorganized Establishment
[It is an] establishment where there is no Note: The expiration referred to is the
certified bargaining agent [Art. 269]. expiration of the 5-year period for the
representation aspect [see Art. 265].
Procedure [Art. 269]
1. File a petition for certification election. Rationale of Prohibition of Filing Outside
2. Upon filing of the petition, the Med- the Freedom Period
Arbiter shall automatically conduct a To ensure industrial peace between the
certification election. employer and its employees during the
existence of the CBA [Republic Planters Bank
Filing of Petition is by a Legitimate Labor Union v. Laguesma, G.R. No. 119675 (1996)].
Organization
It cannot be filed by an unregistered labor Signing of Authorization is Merely
organization. Art. 251 enumerates the rights Preparatory
granted to a legitimate labor organization and What is prohibited is the filing of the petition for
one of those rights is the right to be chosen as certification election outside the 60-day
the exclusive bargaining representative. This is freedom period [...] The signing of the
one way the law encourages union registration. authorization to file was merely preparatory to
the filing of the Petition for Certification
Note: Art. 269 should be related to SEBA Election, or an exercise of [the] right to self-
Certification. If there are multiple LLOs in an organization [PICOP Resources Inc. v. Ricardo
unorganized establishment, Art. 269 applies. If Dequita, G.R. No. 172666 (2011)].
there is only one LLO in an unorganized
establishment, Rule VII on SEBA Certification 25% Substantial Support Rule
applies. Under this rule, when there is failure to In organized establishments, the incumbent
complete requirements, the Regional Director sole bargaining agent should not be easily
will refer it to the Election Officer. replaced for that would disturb industrial peace.
To justify the disturbance, it must appear that
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at least a substantial number (25% operating within the bargaining unit
requirement) seeks to have a new exclusive may file a motion for intervention with
bargaining unit. the Med-Arbiter during the freedom
period of the collective bargaining
Discretionary Rule agreement.
The [Med-Arbiter], in the exercise of sound
discretion, may order a certification election In an unorganized establishment, the motion
notwithstanding the failure to meet the [25%] shall be filed at any time prior to the decision of
requirement [in petitions for certification the Med-Arbiter. The motion shall be resolved
election in an organized establishment] [Scout in the same decision issued in the petition for
Albano Memorial College v. Noriel, G.R. No. L- certification election.
48347 (1978)].
In both cases, the form and contents of the
Inapplicable to Motions for Intervention motion shall be the same as that of a petition
[The] requisite written consent of at least 20% for certification election [Sec. 9, Rule VIII, Book
(now 25%) of the workers in the bargaining unit V, IRR].
applies to certification election only, and not to
motions for intervention. Nowhere in the legal When to File Motion for Intervention
provisions [and in the Omnibus Rules] does it Organized establishment: during the freedom
appear that a motion for intervention in a period of the collective bargaining agreement.
certification election must be accompanied by
a similar written consent [PAFLU v. Calleja, Unorganized establishment: any time prior to
G.R. No. 79347 (1989)]. the decision of the Med-Arbiter [Sec. 9, Rule
VIII, Book V, IRR].
Intervenors
1. Incumbent bargaining agent as forced Effect of Withdrawal of Signatures
intervenor: The incumbent bargaining
agent shall automatically be one of the The Employees’ Withdrawal from a Labor
choices in the certification election as Union Made
forced intervenor [Sec. 8, Rule VIII, 1. Before the filing of the petition for
Book V, IRR]. certification election is presumed
2. Legitimate labor union other than the voluntary
incumbent bargaining agent operating 2. After the filing of such petition is
within the bargaining unit: When a considered to be involuntary and does
petition for certification election was not affect the [petition] [S.S. Ventures
filed in an organized establishment, International v. S.S. Ventures Labor
any legitimate labor union other than Union, G.R. No. 161690 (2008)].
the incumbent bargaining agent
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Organized v. Unorganized Establishments
Art. 268: Organized Art. 269: Unorganized
Sole and Existing None

exclusive
bargaining agent
Must be VERIFIED No need to be verified

Petition filed
No petition for certification election EXCEPT Not applicable (i.e. no

within 60 days before the expiration of the freedom period; petition can
collective bargaining agreement (See Arts. be filed anytime)
264 and 265)
Freedom period
Rationale: To keep industrial peace in
organized establishments
Must be duly supported by 25% of ALL THE NO substantial support rule

MEMBERS OF THE APPROPRIATE
BARGAINING UNIT Rationale: Intention of law is
Substantial to bring in the union, to
support rule Rationale: Law wants to know the intention implement policy behind Art.
of the employees – if they really want a 218A.
certification election, since they already have
a bargaining agent
Certification Election v. Consent Election

Certification Election Consent Election
"Certification Election" or "Consent Election" refers to the process of

determining through secret ballot the sole and exclusive representative of the
employees in an appropriate bargaining unit for purposes of collective
Purpose bargaining or negotiation. A certification election is ordered by the Department,
while a consent election is voluntarily agreed upon by the parties, with or
without the intervention by the Department [Book V, Rule 1, Sec. 1(h)]
Rule IX Rule VII, Sec. 11, pars. 1, 2

SECTION 2. Raffle of the Case. — The contending unions may agree
Within twenty-four (24) hours from to the holding of an election, in
receipt of the notice of entry of final which case it shall be called a
judgment granting the conduct of a consent election. The mediator-
certification election, the Regional arbiter shall forthwith call for the
General Director shall cause the raffle of the case consent election, reflecting the
Procedure to an Election Officer who shall have parties' agreement and the call in
control of the pre-election conference the minutes of the conference. The
and election proceedings. (1a) mediator-arbiter shall immediately
forward the records of the petition to
the regional director or his/her
authorized representative for the
determination of the election officer
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who shall be chosen by raffle in the

presence of representatives of the
contending unions if they so desire.
With the exception of aforementioned provisions that specifically apply only for
Certification Election or Consent Election respectively, Rule IX, on the Conduct
of Certification, Secs. 3 – 21, applies to both certification and consent elections
Ordered by the DOLE Voluntarily agreed upon by the

Conduct parties, with or without the
intervention of DOLE
c. Bars to the Holding of Certification/ 2. Negotiation Bar Rule

Consent Election
No certification of election may be filed when:
Bars to a Certificate Election 1. Within 1 year after the valid certification
Petition for certification may be filed: election
General Rule: Anytime 2. The DULY CERTIFIED union has
Exceptions: COMMENCED AND SUSTAINED
1. One-year bar rule negotiations in good faith with the
2. Negotiation bar rule employer
3. Deadlock bar rule 3. In accordance with Art. 261 of the
4. Contract bar rule Labor Code Sec. 3(b), Rule VIII, Book
V
See Grounds for denying a Petition for
Certification Election 3. Deadlock Bar Rule
1. One-Year Bar Rule No certification of election may be filed when:

1. The incumbent or certified bargaining
No certification election may be held within 1 agent is a party;
year from the time a valid certification, consent 2. A bargaining deadlock had been:
or run-off election has been conducted within a. Submitted to conciliation or
the bargaining unit. arbitration or;
b. Had become the subject of a valid
[If the order of the Med-Arbiter certifying the notice of strike or lockout [Sec.
results of the election has been appealed], the 3(c), Rule VIII, Book V, IRR].
running of the one-year period shall be
suspended until the decision on the appeal A “deadlock” is defined as the “counteraction of
becomes final and executory [Sec. 3(a), Rule things producing entire stoppage;
VIII, Book V]. • a state of inaction or of neutralization
caused by the opposition of persons or
Note: This bar also applies to a SEBA of factions (as in government or voting
Certification under Rule VII. “The certification body): standstill.” [...]
shall bar the filing of a petition for certification • The word is synonymous with the word
election by any labor organization for a period impasse which [...] “presupposes
of one (1) year from the date of its issuance” reasonable effort at good faith
[Sec. 4.2, Rule VII, Book V, IRR]. bargaining which, despite noble
intentions, does not conclude in
agreement between the parties”
[Divine World University v. SOLE, G.R.
No. 91915 (1992)].
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4. Contract Bar Rule d. Failure of Election, Run-Off Election,
Re-run Election
BLR shall not entertain any petition for
certification election or any other action which 1. Failure of Election
may disturb the administration of DULY
REGISTERED existing collective bargaining The Election Officer shall declare a failure of
agreements affecting the parties, except under election in the minutes of the election
Arts. 264, 265, and 268 (60-day freedom proceedings when:
period) [Art. 238]. 1. Number of VOTES CAST is less than
the majority of the number of eligible
No petition for certification election may be filed voters; AND
when a [CBA] between the employer and a 2. There are no material challenged votes
SEBA has been registered in accordance with [Sec. 17, Rule IX, Book V, IRR].
Art. 237.
Effect of Failure of Election [Sec. 19, Rule
Where such [CBA] is registered, the petition IX, Book V, IRR]
may be filed only within sixty (60) days prior to Shall not bar the filing of a motion for the
its expiry [Sec. 3(d), Rule VIII, Book V, IRR]. immediate holding of a certification or consent
election within six (6) months from date of
The Contract-Bar Rule shall apply in any of the declaration of failure of election.
following: (1) when there exists an unexpired
registered CBA; or (2) when there is no Note: Under Sec. 1(tt), Rule I, Book V, a RE-
challenge on the representation status of the RUN ELECTION “shall likewise refer to an
incumbent union during the freedom period election conducted after a failure of election
[D.O. No. 40-1-15]. has been declared by the Election Officer
and/or affirmed by the [Med-Arbiter].” Thus,
The five-year representation status acquired by under the Rules, this is the other definition of a
an incumbent bargaining agent either through Re-Run Election.
single enterprise collective bargaining or multi-
employer bargaining shall not be affected by a Motion for Another Election After Failure
subsequent [CBA] executed between the same
of Election [Sec. 20, Rule IX, Book V, IRR]
bargaining agent and the employer during the
Within twenty-four (24) hours from receipt of
same five-year period [Sec. 7, Rule XVII, Book
the motion, the Election Officer shall:
V, IRR].
1. Immediately schedule another election
within fifteen (15) days from receipt of
Despite an agreement for a CBA with a life of
motion
more than five years, either as an original
2. Cause posting of the notice of election
provision or by amendment, the bargaining
a. At least ten (10) days prior to
union’s exclusive bargaining status is effective
the scheduled date of election;
only for five years and can be challenged within
In two (2) most conspicuous
sixty (60) days prior to the expiration of the
places in the establishment.
CBA’s first five years [FVC Labor Union-
PTGWO v. SANAMA-FVC-SIGLO, G.R. No.
Same guidelines and list of voters shall be
176249 (2009)].
used.
The rule is that despite the lapse of the formal
Nullification of Election Results
effectivity of the CBA the law still considers the
It is precisely because respect must be
same as continuing in force and effect until a
accorded to the will of labor thus ascertained
new CBA shall have been validly executed.
that a general allegation of duress is not
Hence, the contract bar rule still applies
sufficient to invalidate a certification election; it
[Colegio de San Juan de Letran v. Association
must be shown by competent and credible
of Employees, G.R. No. 141471 (2000)].
proof [United Employees Union of Gelmart
Industries Philippines (UEUGIP) v. Noriel, No.
L-40810 (1975)].
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2. Run-Off Election The labor union receiving the GREATER
number of VALID VOTES cast shall be certified
Run-Off Election refers to an election as the winner [Sec. 2, Rule X, Book V, IRR].
between the labor unions receiving the two (2)
highest number of votes in a certification or Note: Please note the difference between valid
consent election when the following requisites votes cast versus votes cast – valid votes
have been complied with: excludes spoiled votes.
1. Valid election;
2. The certification or consent election 3. Re-run election
provides for three (3) or more choices;
3. None of the contending unions Re-run Election refers to an election
received a majority of the VALID conducted to break a tie between contending
VOTES cast; unions, including between "no union" and one
4. No objections or challenges which if of the unions. It shall likewise refer to an
sustained, can materially alter the election conducted after a failure of election
results; and has been declared by the election officer
5. The total number of votes for all and/or affirmed by the mediator-arbiter [Sec.
contending unions is at least fifty 1(tt), Rule 1, Book V, IRR].
(50%) of the number of votes cast [Art.
268; Sec. 1(uu), Rule I, Book V, IRR; Situations Contemplated
Sec. 1, Rule X, Book V, IRR]. 1. A tie between two (2) choices
2. Failure of Elections
Illustration
The CBU has 100 members and 80 of which Duty of Election Officer
voted. Union “A”= 30; Union “B”= 15; Union 1. Notify parties of a re-run election
“C”=15 and No Union= 20. There were no 2. Cause posting of notice within five (5)
invalid votes. Since none got the majority of the days from said election
80 valid votes (41) and the contending unions
obtained 60 votes (which is at least 50% of the When will re-run be conducted
VOTES cast), a run-off election is proper. The The re-run shall be conducted within 10 days
run-off will be between the labor unions after the posting of notice of re-run election.
receiving “the two highest number of votes.”
Pursuant to Art. 268, when an election which e. Employer as a Mere Bystander Rule
provides for three or more choices results in no
choice receiving a majority of the valid votes Bystander Rule
cast, a run-off election shall be conducted In all cases, whether the petition for
between the labor unions receiving the two certification election is filed by an employer or
highest number of votes. Thus, the run-off will a legitimate labor organization, the employer
be among Union “A”, “B”, and “C” [Azucena]. shall not be considered a party thereto with a
concomitant right to oppose a petition for
Procedure for Run-Off Election certification election [Art. 271].
Election Officer shall motu proprio conduct a
run-off election within ten (10) days from the The Employer’s Participation Shall Be
close of the election proceedings between the Limited To:
labor unions receiving the two highest number a. Being notified or informed of petitions
of votes. of such nature
b. Submitting the list of employees during
“No Union” shall not be a choice in the run-off the pre-election conference, should the
election [Sec. 1, Rule X, Book V, IRR]. Med-Arbiter act favorably on the
petition [Art. 271]
Same voters’ list used in the certification
election shall be used in the run-off election. The principle of the employer as by-stander
shall be strictly observed throughout the
conduct of certification election.
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The employer shall not harass, intimidate, D. Collective Bargaining
threat[en], or coerce employees before, during
and after elections [Sec. 1, Rule IX, Book V, Definition, Nature, and Purpose
IRR]. Collective bargaining is:
● Defined as negotiations towards a
However, manifestation of facts that would aid collective agreement;
the [Med-Arbiter] in expeditiously resolving the ● One of the democratic frameworks
petition such as existence of a contract-bar, under the [Labor] Code;
one year bar or deadlock bar may be ● Designed to stabilize the relations
considered [Sec. 1, Rule VIII, Book V, IRR]. between labor and management and to
create a climate of sound and stable
The employer is not a party to a certification industrial peace;
election, which is the sole or exclusive concern ● A mutual responsibility of the employer
of the workers [...] and the Union and is characterized as
a legal obligation [Kiok Loy v. NLRC,
The only instance when the employer may be G.R. No. L-54334 (1986)].
involved in that process is when it is obliged to
file a petition for certification election on its
1. Duty to Bargain Collectively
workers’ request to bargain collectively
pursuant to Art. 258 [now Art. 270] [Hercules
Industries, Inc. v. Sec. of Labor, G.R. No.
Definition
96255 (1992)]. The duty to bargain collectively
[The employer] did not possess the legal Meaning: the performance of a mutual
personality to file a motion to dismiss the obligation to meet and convene promptly and
petition for certification election even if based expeditiously in good faith
on the ground that its supervisory employees
are in reality managerial employees. Purpose: negotiating an agreement with
respect to:
It is well-settled that an employer has no 1. wages
standing to question a certification election 2. hours of work,
since this is the sole concern of the workers. 3. and all other terms and conditions of
The only exception to this rule is Art. 258 [now employment including:
Art. 270] [PT&T v. Laguesma, G.R. No. 101730 a. proposals for adjusting any
(1993)]. grievances, or
b. questions arising under such
[A] company’s interference in the certification agreement, and
election below by actively opposing the same c. executing a contract incorporating
[...] unduly creates a suspicion that it intends to such agreements,
establish a company union [Oriental Tin Can d. if requested by either party, but
Labor Union v. Secretary of Labor, G.R. No. such duty does not compel any
116751 (1998)]. party to agree to a proposal or to
make any concession [Art. 263].
Jurisdictional Preconditions on Duty To

Bargain
1. Possession of the status of majority
representation of the employees’
representative in accordance with any
of the means of selection or
designation provided for by the Code;
2. Proof of majority representation; AND
3. Demand to bargain under Art. 261(a)
[Kiok Loy v. NLRC, G.R. No. L-54334
(1986)].
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Only the labor organization designated or bargains to that end. However, the duty to
selected by the majority of the employees in an bargain does not obligate the parties to make
appropriate collective bargaining unit is the concessions or yield a position fairly held
exclusive representative of the employees in [Azucena].
such unit for the purpose of collective
bargaining [Phil. Diamond Hotel and Resort Inc The duty to bargain is limited to mandatory
v. Manila Diamond Hotel and Employees bargaining subjects; as to other matters, he is
Union, G.R. No. 158075 (2006); Art. 267]. free to bargain or not to bargain.
a. Bargaining in Bad Faith Over mandatory subjects, a party may insist

on bargaining, even to the point of deadlock,
Good Faith vs. Bad Faith and his insistence will not be construed as
There is no per se test of good faith in bargaining in bad faith.
bargaining.
Over a non-mandatory subject, on the other
Good faith or bad faith is an inference to be hand, a party may not insist on bargaining to
drawn from the facts [Union of Filipino the point of impasse, otherwise his insistence
Employees v. Nestle Philippines, Inc., G.R. can be construed as bargaining in bad faith.
Nos. 158930-31 (2008)].
Blue-Sky Bargaining
[T]he failure to reach an agreement after Blue-Sky Bargaining is defined as "unrealistic
negotiations continued for a reasonable period and unreasonable demands in negotiations by
does not establish a lack of good faith. either or both labor and management, where
neither concedes anything and demands the
The laws invite and contemplate a collective impossible." It actually is not collective
bargaining contract, but they do not compel bargaining at all [Roberts Dictionary of
one [Tabangao Shell Refinery Employees Industrial Relations as cited in Standard Bank
Association v. Pilipinas Shell Petroleum Chartered Employees Union v. Confesor, G.R.
Corporation, G.R. No. 170007 (2014)]. No. 114974 (2004)].
Duty to Bargain does NOT include: Surface Bargaining

1. Any legal duty [on the employer] to Surface bargaining is defined as "going
initiate contract negotiation [Kiok Loy v. through the motions of negotiating," without
NLRC, G.R. No. L-54334 (1986)]; any real intent to reach an agreement [Roberts
2. The obligation to reach an agreement: Dictionary of Industrial Relations as cited in
While the law makes it an obligation for Standard Bank Chartered Employees Union v.
the employer and the employees to Confesor, supra].
bargain collectively with each other,
such compulsion does not include the It violates the Act's requirement that parties
commitment to precipitately accept or negotiate in "good faith." It is prohibited
agree to the proposals of the other. All because the bargaining status of a union can
it contemplates is that both parties be destroyed by going through the motions of
should approach the negotiation with negotiating almost as easily as by bluntly
an open mind and make reasonable withholding recognition […] As long as there
effort to reach a common ground of are unions weak enough to be talked to death,
agreement [Union of Filipro Employees there will be employers who are tempted to
v. Nestle, G.R. Nos. 158930-31 engage in the forms of collective bargaining
(2008)]. without the substance [K-MART Corporation v.
NLRB, 626 F.2d 704 (1980)].
Evading the Mandatory Subjects of
Bargaining Individual Bargaining
The refusal to negotiate a mandatory subject of It is an unfair labor practice for an employer
bargaining is an unfair labor practice, although operating under a CBA to negotiate with his
either party has every desire to reach employees individually.
agreement and earnestly and in all good faith
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That constitutes interference because the b. Mandatory Provisions in a CBA
company is still under obligation to bargain with (1) Wages and other types of
the union as the bargaining representative. compensation, including merit
increases;
Individual bargaining contemplates a situation (2) Working hours and working days,
where the employer bargains with the union including work shifts;
through the employees instead of the (3) Vacations and holidays;
employees through the union [The Insular Life (4) Bonuses;
Assurance Co. Ltd., Employees Assn. v. (5) Pensions and retirement plans;
Insular Life Assurance Co. Ltd, G.R. No. L- (6) Seniority;
25291 (1971)]. (7) Transfer;
(8) Lay-offs;
Boulwarism (9) Employee workloads;
A take-it-or-leave-it approach in negotiation (10) Work rules and regulations;
constitutes bad faith. "Although the law cannot (11) Rent of company houses;
open a man's mind, it can at least compel him (12) Union security arrangements
to conduct himself as if he were trying to [Azucena]
persuade and were willing to be persuaded. To
offer the union a contract saying 'Take it or No Duty to Agree Even on Mandatory
leave it,' is not bargaining collectively within the Subjects
meaning of the act” [Herald Delivery Carriers Where the subject of the dispute is a
Union v. Herald Publication Inc., G.R. No. L- mandatory bargaining subject, either party may
29966 (1974), citing NLRB v. Pilling and Son bargain to an impasse as long as he bargains
Co. US, 119 F2D 32 (1941)]. in good faith. The duty to bargain does not
obligate a party to make concessions or yield a
2. Collective Bargaining Agreement position fairly held [Azucena].
(CBA), Mandatory Provisions
3. Signing, Posting, Registration
Collective Bargaining Agreement or “CBA”
refers to the negotiated contract between a a. Ratification
legitimate labor organization and the employer
concerning wages, hours of work and all other Within thirty (30) days from the execution of a
terms and conditions of employment in a collective bargaining agreement
bargaining unit [Sec. 1(k), Rule I, Book V, IRR].
The parties shall submit copies of the same
a. Nature of CBA directly to the Bureau or the Regional Offices
The CBA is the law between the parties and of the Department of Labor and Employment
they are obliged to comply with its provisions for registration, accompanied with:
[Zuellig Pharma Corporation v. Alice Sibal, 1. Verified proofs of its posting in two
G.R. No. 173587 (2013)]. conspicuous places in the place of
work, and
Although it is a rule that a contract freely 2. Ratification by the majority of all the
entered between the parties should be workers in the bargaining unit [Art. 237;
respected, since a contract is the law between Book V, IRR Rule XVII, Sec. 2 (c)].
the parties, said rule is not absolute [... Citing
Art. 1700,] the relations between capital and The posting of copies of the collective
labor are not merely contractual. They are so bargaining agreement is the responsibility of
impressed with public interest that labor the employer.
contracts must yield to the common good
[Halagueña v. Philippine Airlines, G.R. No. The fact that there were "no impartial members
172013 (2009)]. of the unit" is immaterial.
The purpose of the requirement is precisely to

inform the employees in the bargaining unit of
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the contents of said agreement so that they 1. If it is concluded within 6 months from
could intelligently decide whether to accept the the expiry date, the new CBA will
same or not [Associated Labor Unions v. retroact to the date following the expiry
Ferrer-Calleja, G.R. No. L-77282 (1989)]. date [Illustration: expiry date:
December 13; renegotiations
1. Effect of Non-ratification concluded on November 30; effectivity
date: December 14].;
General Rule: The collective bargaining 2. If it is concluded beyond 6 months from
agreement should be ratified by the majority of the expiry date, the matter of
all the members of the bargaining unit. Non- retroaction and effectivity is left with the
compliance with this requirement renders the parties.
CBA ineffective [Associated Trade Unions v.
Trajano, G.R. No. 75321 (1988)]. b. Hold-Over Principle
Exception: Even if there was no ratification, Hold Over Principle

the CBA will not be invalid or void considering It shall be the duty of both parties to keep the
that the employees have enjoyed benefits from status quo and to continue in full force and
it. effect the terms and conditions of the existing
agreement:
[The employees] cannot receive benefits under a. during the 60-day period and/or
provisions favorable to them and later insist b. until a new agreement is reached by
that the CBA is void simply because other the parties [Art. 264].
provisions turn out not to the liking of certain
employees [Planters Products Inc. v. National The last sentence of Art. 264, which provides
Labor Relations Commission, G.R. No. 78524 for automatic renewal [upon expiry], pertains
(1989)]. only to the economic provisions of the CBA
and does not include representational aspect
Note: Ratification of the CBA by the employees of the CBA.
in the bargaining unit is not needed when the
CBA is a product of an arbitral award as a result A [CBA which continues to take effect beyond
of voluntary arbitration under Art. 275 or from its expiration date] cannot constitute a bar to a
the secretary’s assumption of jurisdiction or filing of petition for certification election.
certification under Art. 278 (g).
When there is a representational issue, the
b. Registration status quo provision insofar as the need to
await the creation of a new agreement will not
Within thirty (30) days from the execution of a apply.
Collective Bargaining Agreement, the parties
shall submit copies of the same directly to the Otherwise, it will create an absurd situation
Bureau or the Regional Offices of the where the union members will be forced to
Department of Labor and Employment for maintain membership by virtue of the union
registration […] [Art. 237]. security clause existing under the CBA and,
thereafter, support another union when filing a
4. Term of CBA, Freedom Period petition for certification election.
a. CBA Effectivity If we apply it, there will always be an issue of

disloyalty whenever the employees exercise
their right to self-organization. The holding of a
If it is the first ever CBA, the effectivity date is
certification election is a statutory policy that
whatever date the parties agree on.
should not be circumvented, or compromised
[PICOP Resources, Inc. v. Taneca et al., G.R.
If it is a renegotiated CBA, the retroactivity of
No. 160828 (2010)].
the date of effectivity depends upon the
duration of conclusion [Art. 265]:
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Arbitrated CBA As a general rule, there is no law requiring a
In the absence of an agreement between the bona fide purchaser of the assets of an on-
parties, an arbitrated CBA takes on the nature going concern to absorb in its employ the
of any judicial or quasi-judicial award [Manila employees of the latter.
Electric Company v. Quisumbing, G.R. No.
127598 (1999)]. However, although the purchaser of the assets
or enterprise is not legally bound to absorb in
[I]n the absence of the specific provision of law its employ the employees of the seller of such
prohibiting retroactivity of the effectivity of the assets or enterprise, the parties are liable to the
arbitral awards issued by the Secretary of employees if the transaction between the
Labor pursuant to Art. 263(g) of the Labor parties is colored or clothed with bad faith
Code, [the Secretary] is deemed vested with [Sundowner Development Corporation v.
plenary powers to determine the effectivity Drilon, G.R. No. 82341 (1989)].
thereof [LMG Chemicals v. Secretary of Labor,
G.R. No. 127422 (2001)]. Where the change of ownership is in bad faith
or is used to defeat the rights of labor, the
c. CBA Duration successor-employer is deemed to have
absorbed the employees and is held liable for
Terms of a Collective Bargaining the transgressions of his or her predecessor
Agreement: Any Collective Bargaining [Philippine Airlines, Inc. v. NLRC, G.R. No.
Agreement that the parties may enter into shall, 125792 (1998)].
insofar as the representation aspect is
concerned, be for a term of five (5) years [...] General Rule: An innocent transferee of a
All other provisions of the Collective Bargaining business establishment has no liability to the
Agreement shall be renegotiated not later than employees of the transferor to continue
three (3) years after its execution [Art. 265]. employing them. Nor is the transferee liable for
past unfair labor practices of the previous
CBA Duration for economic provisions owner.
3 years.
Exception: When the liability therefore is
CBA Duration for Non-Economic assumed by the new employer under the
Provisions contract of sale, or when liability arises
5 years for representational or political issues; because of the new owner's participation in
cannot be renegotiated to extend beyond 5 thwarting or defeating the rights of the
years [FVC Labor Union-PTGWO v. SANAMA- employees.
FVC-SIGLO, G.R. No. 176249 (2009)].
The most that the transferee may do, for
CBA Duration: Freedom period reasons of public policy and social justice, is to
No petition questioning the majority status of give preference to the qualified separated
the incumbent bargaining agent shall be employees in the filling of vacancies in the
entertained and no certification election shall facilities of the purchaser [Manlimos v. NLRC,
be conducted by the DOLE outside of the G.R. No. 113337 (1995)].
sixty-day period immediately before the
date of the expiry of such five-year term of The general rule applies only to the sale and
the Collective Bargaining Agreement [Art. purchase of asset. If the method of acquisition
265]. is by way of purchase of controlling shares, the
employer remains the same and the new
CBA and 3rd Party Applicability owners must honor the existing contracts.
Labor contracts such as employment contracts
and CBAs are not enforceable against a
transferee of an enterprise, labor contracts
being in personam, is binding only between the
parties.
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E. Unfair Labor Practices Employer-Employee Relationship Required
General Rule: An unfair labor practice may be
committed only within the context of an
1. Nature, Aspects
employer-employee relationship [American
President Lines v. Clave, G.R. No. L-51641
Unfair labor practice refers to acts that violate (1982)].
the workers’ right to organize. The prohibited
acts are related to the workers’ right to self- Exception: “Yellow Dog” condition or
organization and to the observance of a contract: to require as a condition of
CBA. Without that element, the acts, no matter employment that a person or an employee
how unfair, are not unfair labor practices. The shall not join a labor organization or shall
only exception is Art. 259(f) [i.e. to dismiss, withdraw from one to which he belongs [Art.
discharge or otherwise prejudice or 259 (b)].
discriminate against an employee for having
given or being about to give testimony under
Parties Not Estopped from Raising ULP
this Code] [Philcom Employees Union v. Phil.
by Eventual Signing of the CBA
Global, G.R. No. 144315 (2006)].
The eventual signing of the CBA does not
operate to estop the parties from raising unfair
Nature of ULP
labor practice charges against each other
a. inimical to the legitimate interests of
[Standard Chartered Bank Union v. Confesor,
both labor and management, including
G.R. No. 114974 (2004)].
their right to bargain collectively and
otherwise deal with each other in an
Statutory Construction
atmosphere of freedom and mutual
The Labor Code leaves to the court the work of
respect
applying the law's general prohibitory
b. disrupt industrial peace
language, in light of infinite combinations of
c. hinder the promotion of healthy and
events, which may be charged as constituting
stable labor-management relations
an unfair labor practice [HSBC Employee
d. violations of the civil rights of both labor
Union v. NLRC, G.R. No. 125038 (1997)].
and management but are also criminal
offenses [Art. 258].
Note: Bargaining in bad faith constitutes Unfair
Labor Practice, which may be committed by
Four Forms of Unfair Labor Practice in
either Employer or Labor Organization.
Collective Bargaining
1. Failure or refusal to meet and convene
2. Evading the mandatory subjects of
2. By Employers
bargaining a. Interference/Restraint/Coercion
3. Bargaining in bad faith b. Yellow Dog Contracts
4. Gross violation of the CBA c. Contracting Out Services which
Discourage Unionism
d. Company Union
Purpose of the Policy Against ULPs
e. Discrimination to Encourage/
Protection of right to self-organization and/or
Discourage Unionism
collective bargaining:
f. Discrimination for having given or
a. The employee is not only protected
about to give testimony
from the employer but also from labor
g. Violation of Duty to Bargain Collectively
organizations.
h. Payment of Negotiation or Attorney’s
b. The employer is also protected from
Fees
ULP committed by a labor
i. Violation of a Collective Bargaining
organization.
Agreement
The public is also protected because it has an
interest in continuing industrial peace. a. Interference, Restraint or Coercion
To interfere with, restrain or coerce employees
in the exercise of their right to self-organization
[ Art. 259(a)].
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The fact that the resignations of the union Employees Assn. v. Insular Life Assurance
members occurred during the pendency of the Co. Ltd, G.R. No. L-25291 (1971)].
case before the labor arbiter shows GMC’s
desperate attempts to cast doubt on the Concerted Activities
legitimate status of the union. The ill-timed The mass demonstration and stoppage of work
letters of resignation from the union members of the Union is not ULP. They did not
indicate that GMC had interfered with the right demonstrate against the employer, but against
of its employees to self-organization [General the Pasig police for alleged human rights
Milling Corporation v. Court of Appeals, G.R. abuses. This is merely an exercise of their
146728 (2004)]. freedom of expression, assembly, and right to
redress of grievances enshrined in the
Interrogation Constitution [Philippine Blooming Mills
General Rule: employer may interrogate its Employment Organization v. Philippine
employees regarding their union affiliation for Blooming Mills Co., Inc., G.R. No. L-31195
legitimate purposes and with the assurance (1973)].
that no reprisals would be taken against the
unionists. Compare with the ruling in Biflex Phils. Inc.
Labor Union v. Filflex Industrial and
Exception: when interrogation interferes with Manufacturing Corp:
or restrains employees' right to self- Even if petitioners' joining the welga ng bayan
organization [Phil. Steam Navigation Co. v. were considered merely as an exercise of their
Phil. Marine Officer’s Guild, G.R. Nos. L-20667 freedom of expression, freedom of assembly or
and 20669 (1965)]. freedom to petition the government for redress
of grievances, the exercise of such rights is not
Note: The interrogation of the ER should not be absolute. For the protection of other significant
persistent and/or hostile state interests such as the "right of enterprises
to reasonable returns on investments, and to
Speech expansion and growth" enshrined in the 1987
The acts of a company which subjects a union Constitution must also be considered,
to vilification and its participation in soliciting otherwise, oppression or self-destruction of
membership for a competing union are also capital in order to promote the interests of labor
acts constituting a ULP [Phil. Steam Navigation would be sanctioned. And it would give
Co. v. Phil. Marine Officer’s Guild, G.R. Nos. L- imprimatur to workers' joining
20667 and 20669 (1965)]. demonstrations/rallies even before affording
the employer an opportunity to make the
An employer may not send letters containing necessary arrangements to counteract the
promises or benefits, nor of threats of obtaining implications of the work stoppage on the
replacements to individual workers while the business, and ignore the novel "principle of
employees are on strike due to a bargaining shared responsibility between workers and
deadlock. This is tantamount to interference employers" aimed at fostering industrial peace
and is not protected by the Constitution as free [Biflex Phils. Inc. Labor Union v. Filflex
speech [Insular Life Assurance Co. Employees Industrial and Manufacturing Corp., G.R. No.
Assn. v. Insular Life Assurance Co. Ltd, G.R. 155679, Dec. 19, 2006].
No. L-25291 (1971)].
b. Yellow Dog Contracts
Espionage
Espionage and/or surveillance by the employer Art. 259(b): To require as a condition of
of union activities are instances of interference, employment that a person or an employee
restraint or coercion of employees in shall not join a labor organization or shall
connection with their right to organize, form withdraw from one to which he belongs.
and join unions as to constitute unfair labor
practice […] The information obtained by Condition of Employment
means of espionage is invaluable to the Yellow dog contracts require, as a condition of
employer and can be used in a variety of cases employment, that a person or an employee
to break a union [Insular Life Assurance Co.
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shall not join a labor organization or shall defined as unfair labor practice by this Code
withdraw from one to which he belongs. [Art. 219(i)].
Requisites of a Yellow Dog Contract: The employer commits ULP if it initiates,

1. A representation by the employee that dominates, or otherwise interferes with the
he is not a member of a labor formation or administration of any labor
organization; organization.
2. A promise by the employee that he will
not join a union; Example: giving out financial aid to any union's
3. A promise by the employee that upon supporters or organizers.
joining a labor organization, he will quit
his employment [Azucena] e. Discrimination to Encourage or
Discourage Unionism
Example: To discriminate in regard to wages, hours of
The evidence of record showed that the work and other terms and conditions of
workers who were not admitted to work employment in order to encourage or
beginning from November, 1955 were discourage membership in any labor
precisely those belonging to the union. The organization [Art. 259(e)].
Company Branch Manager had told the
workers point-blank that severance of their General Rule: It is ULP to discriminate in
connection with the UWFA was the remedy, if regard to wages, hours of work, and other
they wanted to continue working with the terms and conditions of employment in order to
Company [Visayan Stevedore Trans. Co. v. encourage or discourage membership in any
CIR, G.R. No. L-21696 (1967)] labor organization.
c. Contracting Out Services Which Exception: Union security clauses

Discourage Unionism
To contract out services or functions being f. Discrimination for Having Given or
performed by union members when such will About to Give Testimony
interfere with, restrain or coerce employees in To dismiss, discharge or otherwise prejudice or
the exercise of their right to self-organization discriminate against an employee for having
[Art. 259(c)]. given or being about to give testimony [Art. 259
(f)].
General Rule: contracting out is not a ULP, but
is covered by the employer’s management Note: This is broader than the prohibition under
prerogative. Art. 118 because Art. 259 (f) covers testimony
under the whole Code, while Art. 118 only
Exception [Art. 259 (c)]: covers testimony under Book I: Pre-
1. Contracted-out services or functions Employment, Title II: Wages.
are performed by union members AND
2. Contracting out will interfere with, Note further: Includes not giving testimony
restrain, or coerce employees in the [Azucena].
exercise of their right to self-
organization. g. Violation of Duty to Bargain
Collectively
d. Company Union To violate the duty to bargain collectively as
To initiate, dominate, assist or otherwise prescribed by this Code [Art. 259 (g)].
interfere with the formation or administration of
any labor organization, including the giving of Collective bargaining does not end with the
financial or other support to it or its organizers execution of an agreement. Being a
or supporters [Art. 259 (d)]. continuous process, the duty to bargain
necessarily imposes on the parties the
Company union means any labor obligation to live up to the terms of such a
organization whose formation, function or collective bargaining agreement if entered into,
administration has been assisted by any act
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it is undeniable that non-compliance therewith 4. Not initiating the bargaining;
constitutes an unfair labor practice [Shell Oil 5. Refusal to bargain where the union
Workers Union v. Shell Co., G.R. No. L-28607 demands for recognition and
(1971)]. bargaining within the year following a
certification election, and the clear
ACTS DEEMED AS REFUSAL TO choice is no union and no ad interim
BARGAIN significant change has taken place in
1. Refusal to bargain when there is an the unit;
unresolved petition for union cancellation 6. Refusal to bargain because the other
“That there is a pending cancellation party is making unlawful bargaining
proceedings against the union is not a bar to demands.
set in motion the mechanics of collective
bargaining […] Unless [the union’s] certificate h. Payment of Negotiation or Attorney’s
of registration and status as the certified Fees
bargaining agent is revoked, [the employer], by To pay negotiation or attorney's fees to the
express provision of the law, is duty bound to union or its officers or agents as part of the
collectively bargain with the Union” [Capitol settlement of any issue in collective bargaining
Medical Center v. Trajano, G.R. No. 155690 or any other dispute [Art. 259 (h)].
(2005)].
Sweetheart contracts are favorable both to the
2. Employer’s suspension of operations in union and the employer at the expense of the
order to forestall a demand for collective employees. The settlement of bargaining
bargaining issues must be made by fair bargaining in good
By admitting that the closure [of the business] faith, and not through the payment of
was due to irreconcilable differences between negotiation or attorney's fees which will
the Union and the school management, […] ultimately lead to sweetheart contracts.
SJCI in effect admitted that it wanted to end the
bargaining deadlock and eliminate the problem
i. Violation of CBA
dealing with the demands of the union [St. John
To violate a collective bargaining agreement
Colleges Inc. v. St. John Academy Faculty and
[Art. 259 (i)].
Employees Union, G.R. No. 167892 (2006)].
3. Implied refusal Flagrant and/or Malicious Refusal to

The school is guilty of unfair labor practice Comply with Economic Provisions
when it failed to make a timely reply to the Required
proposals of the union more than one month Violations of a Collective Bargaining
after the same were submitted by the union. In Agreement, except those which are gross in
explaining its failure to reply, the school merely character, shall no longer be treated as unfair
offered a feeble excuse that its Board of labor practice and shall be resolved as
Trustees had not yet convened to discuss the grievances under the Collective Bargaining
matter. Clearly, its actuation showed a lack of Agreement.
sincere desire to negotiate [Colegio de San
Juan de Letran v. Association of Employees For purposes of this Art., gross violations of
and Faculty of Letran, G.R. No. 141471 Collective Bargaining Agreement shall mean
(2000)]. flagrant and/or malicious refusal to comply with
the economic provisions of such agreement
Acts Not Deemed Refusal to Bargain [Art. 274].
1. Adoption of an adamant bargaining
position in good faith, particularly Violations of collective bargaining agreements,
where the company is operating at a except flagrant and/or malicious refusal to
loss; comply with its economic provisions, shall not
2. Refusal to bargain over demands for be considered unfair labor practice and shall
commission of unfair labor practices; not be strikeable [Book V, Rule XXII, Sec. 5].
3. Refusal to bargain during period of
illegal strike;
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Note: The list in Art. 259 is not exhaustive. d. Illegal Exaction (Featherbedding)
Other acts which are analogous to those e. Asking or Accepting Negotiation and
enumerated can be ULPs. other Attorney's Fees
f. Violation of a Collective Bargaining
The alleged violation of the CBA, even Agreement
assuming it was malicious and flagrant, is not
a violation of an economic provision, thus a. Restraint or Coercion
not an Unfair Labor Practice [BPI Employees To restrain or coerce employees in the
Union-Davao FUBU v. BPI, G.R. No. 174912 exercise of their right to self-organization.
(2013)]. However, a labor organization shall have the
right to prescribe its own rules with respect to
An employer cannot be considered to have the acquisition or retention of membership [Art.
committed a gross and economic violation of 260 (a)].
the CBA when it, in good faith, withheld union
dues and death benefits from the union upon “Interfere” is not included in Art. 260 simply
written request of the union members in light of because any act of a labor organization
the conflict between the members and the amounts to interference to the right of self-
union officers and instead deposited such organization.
amount to the DOLE [Arellano University
Employees and Workers Union v. Court of b. Discrimination
Appeals, G.R. 139940 (2006)]. To cause or attempt to cause an employer to
discriminate against an employee, including
Motive, Conduct, Proof discrimination against an employee with
To constitute ULP, the dismissals by the ER respect to whom membership in such
need not be entirely motivated by union organization has been denied; or terminate an
activities or affiliations. It is enough that employee on any ground other than the usual
discrimination was a factor [Me-Shurn Corp. v. terms and conditions under which membership
Me-Shurn Workers Union-FSM, G.R. No. or continuation of membership is made
156292 (2005)]. available to other members [Art. 260 (b)].
Note: The basic inspiration of the dismissals General Rule: It is a ULP for a labor
should concern the right to self-organization. organization to cause an employer to
discriminate against an employee.
Totality of Evidence
Where the attendant circumstances, the history Exception: Provisions of a valid union security
of the employer's past conduct and like clause and other company policies applicable
considerations, coupled with an intimate to all employees.
connection between the employer's action and
the union affiliations or activities of the c. Violation of Duty or Refusal to
particular employee or employees, taken as a Bargain
whole, raise a suspicion as to the motivation for To violate the duty, or refuse to bargain
the employer's action, the failure of the collectively with the employer, provided it is the
employer to ascribe a valid reason therefor representative of the employees [Art. 260 (c)].
may justify an inference that his unexplained
conduct in respect of the particular employee
or employees was inspired by the latter's union
membership or activities [Royal Undergarment
Corporation of the Philippines v. CIR, G.R. No.
L-39040 (1990)].
3. By Labor Organizations
a. Restraint or Coercion
b. Discrimination: Encourage/Discourage
Unionism
c. Violation of Duty, or Refuse to Bargain
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d. Illegal Exaction (Featherbedding) F. Peaceful Concerted Activities
To cause or attempt to cause an employer to Definition
pay or deliver or agree to pay or deliver any A concerted activity is one undertaken by two
money or other things of value, in the nature of or more employees to improve their terms and
an exaction, for services which are not conditions of work.
performed or not to be performed, including the
demand for fee for union negotiations [Art. 260 Nature of the Right to Strike and Lockout
(d)]. The right to strike is a constitutional and legal
right of the workers, as the employers have the
The practice of the labor organization to cause inherent and statutory right to lockout within the
or attempt to cause an employer to pay or context of labor relations and collective
deliver or agree to pay or deliver money or bargaining.
other things of value, in the nature of an
exaction, for services which are not performed It is a means of last resort and presupposes
or are not to be performed, including the that the duty to bargain in good faith has been
demand for a fee for union negotiations. fulfilled and other voluntary modes of dispute
settlement have been tried and exhausted
e. Asking or Accepting Negotiation and [Guidelines Governing Labor Relations
Other Attorney’s Fees (1987)].
To ask for or accept negotiation or attorney's
fees from employers as part of the settlement Non-Abridgment of Right to Self-
of any issue in collective bargaining or any Organization
other dispute [Art. 260 (e)]. It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere
f. Violation of CBA with employees and workers in their exercise
To violate a collective bargaining agreement of the right to self-organization. Such right shall
[Art. 260 (f)]. include the right to (…) engage in lawful
concerted activities for the same purpose or for
Gross Violations of the CBA their mutual aid and protection, subject to the
Violations of a Collective Bargaining provisions of Art [279] of this Code [Art. 257].
Agreement, except those which are gross in
character, shall no longer be treated as unfair Limitation: Concerted activities must be
labor practice and shall be resolved as in accordance with law
grievances under the Collective Bargaining The strike is a powerful weapon of the working
Agreement. class. Thus, it must be declared only after the
most thoughtful consultation among them,
For purposes of this Art., gross violations of conducted in the only way allowed; that is,
Collective Bargaining Agreement shall mean peacefully, and in every case conformably to
flagrant and/or malicious refusal to comply with reasonable regulation. Any violation of the
the economic provisions of such agreement legal requirements and strictures will render
[Art. 274]. the strike illegal, to the detriment of the very
workers it is supposed to protect [Batangas
Laguna Tayabas Bus Co. v. NLRC, G.R. No.
101858 (1992)].
Forms of Concerted Activities

Concerted Activities by Labor
Organization:
a. Strike (includes slow downs, mass
leaves, sit downs, attempts to damage
destroy or sabotage plant equipment
and similar activities)
b. Picketing
c. Boycott
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1. Strikes counter-proposal of the company to the notice
of strike of the union was not practicable. It was
a. Grounds for Strike absurd to expect the union to produce the
1. A collective bargaining deadlock; or company’s counter-proposal which it did not
2. An unfair labor practice act of the have [Club Filipino, Inc. v. Bautista, G.R. No.
employer or employee [Art. 278] 168406 (2009)].
b. Mandatory Procedural Requirements 2. Filing and Service of Notice of Strike
Procedural Requirements for Strike [Art. Ground: Bargaining deadlocks [Art.

278] 278(c)]
1. Effort to bargain (for bargaining Filed by: The duly certified or recognized
deadlock strikes) bargaining agent may file a notice of strike
2. Filing and service of notice of strike
3. Observance of cooling-off period Filed with: With the Ministry [now DOLE]
a. 15 days for ULP
No cooling-off period when the ULP When: At least 30 days before the intended
can be considered union busting date of the strike
(dismissal of duly elected union officers
from employment) Ground: Unfair labor practice [Art. 278(c)]
b. 30 days for bargaining deadlock Filed by: The duly certified or recognized
4. Notice of strike vote meeting to NCMB bargaining agent, or in the absence of such
within 24 hours before the strike vote agent, any legitimate labor organization in
[Sec. 10, Rule XXII, Book V, IRR] behalf of its members may file a notice of strike
5. Strike vote
6. Strike vote report sent to NCMB Filed with: With the Ministry [now DOLE]
7. Observance of the waiting period (7-
day strike ban) When: The period of notice shall be 15 days
1. Effort to Bargain Note: In case of dismissal from employment of

union officers duly elected in accordance with
No labor organization […] shall declare a strike the union constitution and by-laws, which may
[…] without first having bargained collectively constitute union-busting, where the existence
in accordance with Title VII of this Book [Art. of the union is threatened, the 15-day cooling-
off period shall not apply and the union may
279(a)].
take action immediately.
In case of bargaining deadlocks, the notice
shall, as far as practicable: Notice to the Employer
a. Further state the unresolved issues in In case of unfair labor practice and/or union
the bargaining negotiations; and busting, the notice must be served to the
b. Be accompanied by the written employer. Failure to do so will constitute
proposals of the union, the counter- noncompliance with the procedural
proposals of the employer and the requirements and will result to an illegal strike
proof of a request for conference to [Filipino Pipe and Foundry Corp v. NLRC, G.R.
settle differences. No. 115180 (1999)].
In cases of unfair labor practices, the notice Rationale: Due process.

shall, as far as practicable, state the acts
complained of, and efforts taken to resolve the Contents of Notice of Strike
dispute amicably [Sec. 4, Rule XXII, Book V, 1. Names and addresses of the employer
IRR]. and the union involved
2. Nature of the industry to which the
The Implementing Rules use the words as far employer belongs
as practicable. In this case, attaching the 3. Number of union members and of
workers in the bargaining unit
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4. Such other relevant data as may may strike or the employer may declare a
facilitate the settlement of the dispute lockout [Art. 278 (e)].
Additional Requirements The purpose of the cooling-off period is to

provide an opportunity for mediation and
In case of Bargaining Deadlocks: conciliation [National Federation of Sugar
1. Statement of unresolved issues in the Workers v. Ovejera, G.R. No. L-59743 (1982)].
bargaining negotiations
2. Written proposals of the union 4. Notice of Strike-Vote Meeting
3. Counter-proposals of the employer
4. Proof of a request for conference to The Department may, at its own initiative or
settle the differences [Sec. 4, Rule upon the request of any affected party,
XXII, Book V, IRR] supervise the conduct of the secret balloting
[Art. 278(f)].
In Cases of ULP:
1. Statement of acts complained of In every case, the union or the employer shall
2. Efforts taken to resolve the dispute furnish the regional branch of the Board the
amicably [Sec. 4, Rule XXII, Book V, notice of meetings referred to in the preceding
IRR] paragraph at least twenty-four (24) hours
before such meetings [Sec. 10, Rule XXII,
Action on Notice: Book V, IRR].
1. Upon receipt of a valid notice of strike
or lockout, the NCMB, through its The purpose of the notice is to allow the NCMB
Conciliator-Mediators, shall call the to decide whether or not they will send a
parties to a conference the soonest representative to supervise the strike vote.
possible time in order to actively assist
them to explore all possibilities for 5. Strike Vote
amicable settlement.
2. The Conciliator-Mediator may A decision to declare a lockout must be
suggest/offer proposals as an approved by a majority of the board of directors
alternative avenue for the resolution of of the corporation or association or of the
their disagreement/conflict which may partners in a partnership, obtained by secret
not necessarily bind the parties. ballot in a meeting called for that purpose [Art.
3. If conciliation/mediation fails, the 278(f)].
parties shall be encouraged to submit
their dispute for voluntary arbitration. Requirements for a Declaration of a Strike
in a Strike Vote
3. Observance of Cooling-Off Periods 1. Approval by a majority of the total union
membership in the bargaining unit
Cooling off periods concerned;
1. Bargaining deadlock – 30 days 2. Approval is obtained by secret ballot in
2. ULP but not union busting – 15 days a meeting/referendum called for the
3. ULP and union busting – no cooling-off purpose
period
Duration of the Validity of the Strike-Vote
Purpose of Cooling Off Period The decision shall be valid for the duration of
During the cooling-off period, it shall be the the dispute based on substantially the same
duty of the Ministry [now DOLE] to exert all grounds considered when the strike or lockout
efforts at mediation and conciliation to effect a vote was taken [Art. 278(f)].
voluntary settlement.
Should the dispute remain unsettled until the

lapse of the requisite number of days from the
mandatory filing of the notice, the labor union
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6. Strike Vote Report offer of the employer on or before the 30th day
of strike.
In every case, the union or the employer shall
furnish the Department the results of the voting When at least a majority of the union members
at least 7 days before the intended strike or vote to accept the improved offer:
lockout, subject to the cooling-off period herein a. The striking workers shall immediately
provided [Art. 278(f)]. return to work and;
b. The employer shall thereupon re-admit
7. Observance of the 7-Day Waiting them upon the signing of the
Period agreement [Sec. 12, Rule XXII, Book
V]
7 Day Observance of the Strike Ban .
The waiting period, on the other hand, is c. Legal Strike vs. Illegal Strike
intended to provide opportunity for the
members of the union or the management to Valid v. Illegal Strike
take the appropriate remedy in case the strike a. Legal strike – one called for a valid
or lockout vote report is false or inaccurate purpose and conducted through means
[National Federation of Sugar Workers v. allowed by law.
Ovejera, G.R. No. L-59743 (1982)]. b. Illegal strike – one staged for a purpose
not recognized by law, or if for a valid
The waiting period is intended to give the purpose, conducted through means not
DOLE an opportunity to verify whether the sanctioned by law.
projected strike really carries the imprimatur of
the majority of the union members [Lapanday Effect of Illegality / Liability of
Workers Union v. NLRC, G.R. Nos. 95494-97 Participating Members/Officers of the
(1995)]. Union
a. Ordinary striking worker – cannot be
Compliance with Both Cooling-off and terminated for mere participation in an
Waiting Periods illegal strike; proof must be adduced
The observance of both periods must be showing that he or she committed
complied with, although a labor union may take illegal acts during the strike.
a strike vote and report the same within the b. Participating union officer – may be
statutory cooling-off period. The cooling-off and terminated, not only when he actually
7-day strike ban provisions of law constitute a commits an illegal act during a strike,
valid exercise of police power of the State but also if he knowingly participates in
[National Federation of Sugar Workers v. an illegal strike [Phimco Industries, Inc.
Ovejera, G.R. No. L-59743 (1982)]. v. PILA, G.R. No. 170830 (2010)].
Mutually Exclusive Periods (used in the 1. Prohibited Grounds for Strike

NCMB Manual) a. Labor standards cases such as wage
The cooling off period and the 7-day period are orders;
mutually exclusive. Thus, in the case of Capitol b. Issues involving wage distortion
Medical Center v. NLRC [G.R. No. 147080 caused by legislated wage orders;
(2005)], the Court held that when the strike vote c. Inter or intra union disputes;
is conducted within the cooling-off period, the d. Execution and enforcement of final
7-day requirement shall be counted from the orders or awards of cases pending at
day following the expiration of the cooling off the DOLE Regional Offices, BLR,
period. NLRC, VA, CA and SC and related
offices;
Improved Offer Balloting e. Violations of the CBA which are not
In case of a strike, the regional branch of the gross in character (not ULP) [BPI
Board shall, at its own initiative or upon the Employees Union-Davao FUBU v. BPI,
request of any affected party, conduct a G.R. No. 174912 (2013)].
referendum by secret balloting on the improved
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Gross in character shall mean flagrant and/or area, or work in place of the strikers [Art.
malicious refusal to comply with the economic 279(d)].
provisions of such agreement [Art. 274].
CATEGORIES OF ILLEGAL STRIKE
d. Prohibited Acts During Strike 1. Prohibited by Law (e.g. Strike By
Government Employees)
1. By Anyone (Art. 279(b)) While the Constitution guarantees the right of
government employees to organize, they are
No person shall obstruct, impede, or interfere not allowed to strike.
with, by force, violence, coercion, threats, or
intimidation, any peaceful picketing by 2. Improper Grounds (e.g. Intra or Inter
employees [Art. 279(b)]; Union Dispute, Wage Distortion)
a. Blocking the free ingress to/ egress A legal strike must be based on a bargaining
from work premises for lawful deadlock and/or a ULP act only.
purposes;
b. Obstruction of public thoroughfares; Intra-union and inter-union disputes are not
c. Threatening, coercing and intimidating proper grounds to strike.
non-striking employees, officers,
suppliers and customers; Note: Good faith strike
d. Resistance and defiance of Good faith may be used as a defense if the
assumption of jurisdiction by the Labor strike is held on the basis of an act of ULP by
Secretary or an injunction; the employer even if it turned out that there was
e. Acts of violence [Association of no act of ULP. However, the mandatory
Independent Unions in the Philippines procedural requirements cannot be dispensed
(AIUP), et. al. v. NLRC, G.R. No. with (notice of strike, cooling-off period, strike
120505 (1999)]. vote, strike vote report) [Grand Boulevard Hotel
v. GLOWHRAIN, G.R. No. 153664 (2003)].
The violence must be pervasive and
widespread, consistently and deliberately Good Faith Strike Requires Rational Basis
resorted to as a matter of policy [Shell Oil A mere claim of good faith would not justify the
Workers v. Shell Company of the Phil., 39 holding of a strike under the aforesaid
SCRA 276 (1971)] (if violence was resorted to exception as, in addition thereto, the
by both sides, such violence cannot be a circumstances must have warranted such
ground for declaring the strike as illegal) belief. It is, therefore, not enough that the union
[Malayang Samahan ng Manggagawa sa M. believed that the employer committed acts of
Greenfield v. Ramos, 357 SCRA 77 (2000)]. ULP when the circumstances clearly negate
even a prima facie showing to sustain such
2. By Employer (Art. 279(c)) belief [Interwood Employees Assoc. v. Int’l
Hardwood, G.R. No. L-7409 (1956)].
No employer shall use or employ any strike-
breaker, nor shall any person be employed as 3. Noncompliance with Procedural
a strike-breaker [Art. 279(c)]. Requirements
A strike which does not strictly comply with the
3. By Public Official or Police Force (Art. procedural requirements set by law and the
279(d)) rules is an unlawful/illegal strike [Sta. Rosa
Coca-Cola Plant Employees Union v. Coca-
No public official or employee, including Cola Bottlers Philippines, Inc., G.R. Nos.
officers and personnel of the New Armed 164302-03 (2007)].
Forces of the Philippines or the Integrated
National Police, or armed person, shall bring in, Note: Good faith strike must still comply with
introduce or escort in any manner, any procedural requirements.
individual who seeks to replace strikers in
entering or leaving the premises of a strike Even if the union acted in good faith in the
belief that the company was committing an
unfair labor practice, if no notice of strike and a
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strike vote were conducted, the said strike is Guidelines and Balancing of Interest
illegal [Grand Boulevard Hotel v. 1. A strike, otherwise valid, if violent in
GLOWHRAIN, G.R. No. 153664 (2003)]. character, may be placed beyond the
pale.
General Rule: A strike based on a non- 2. Care is to be taken especially where an
strikeable ground is an illegal strike; a strike unfair labor practice is involved, to
grounded on ULP is illegal if no such acts avoid stamping it with illegality just
actually exist. because it is tainted by such acts. To
avoid rendering illusory the recognition
Exception: Even if no ULP acts are committed of the right to strike, responsibility in
by the employer, if the employees believe in such a case should be individual and
good faith that ULP acts exist so as to not collective.
constitute a valid ground to strike, then the 3. A different conclusion would be called
strike held pursuant to such belief may be legal for if the existence of force while the
[NUWHRAIN v. NLRC, G.R. No. 125561 strike lasts is pervasive and
(1998)]. widespread, consistently and
deliberately resorted to as a matter of
4. Unlawful Means and Methods policy. It could be reasonably
Purpose and means test concluded then that even if justified as
There must be concurrence between the to ends, it becomes illegal because of
validity of the purpose of the strike and the the means employed.
means of conducting it. 4. This is not by any means to condone
the utilization of force by labor to attain
To be valid, a strike must be pursued within its objectives. It is only to show
legal bounds. The right to strike as a means for awareness that in labor conflicts, the
the attainment of social justice is never meant tension that fills the air as well as the
to oppress or destroy the employer. feeling of frustration and bitterness
could break out in sporadic acts of
The law provides limits for its exercise. Among violence.
such limits are the prohibited activities under
Art [279], particularly paragraph (e), which It would be unjustified, considering all the facts
states that no person engaged in picketing disclosed, to stamp the strike with illegality. It is
shall: enough that individual liability be incurred by
1. commit any act of violence, coercion, those guilty of such acts of violence that call for
or intimidation or loss of employee status [Shell Oil Workers
2. obstruct the free ingress to or egress Union v. Shell Co. of the Phils, G.R. No. L-
from the employer's premises for lawful 28607 (1971)].
purposes or
3. obstruct public thoroughfares. It bears stressing that the requirements of
strike notice and strike-vote report are
A Legal Strike May Turn into an Illegal Strike mandatory, meaning, non-compliance
Even if the strike is valid because its objective therewith makes the strike illegal. The evident
or purpose is lawful, the strike may still be intention of the law in requiring these is to
declared invalid where the means employed reasonably regulate the right to strike
are illegal [Phil. Diamond Hotel and Resort, Inc. [Stamford Mark Corp. v. Julian, G.R. No.
v. Manila Diamond Hotel Employees Union, 145496 (2004)].
G.R. No. 158075 (2006)].
5. Violation of Injunction Order
Examples of Unlawful Means and Methods An automatic injunction under Art. 278(g) or a
1. Acts of violence and terrorism valid injunction order under the exceptions to
2. Destruction of property Art. 279 must be complied with. Otherwise, the
strike becomes illegal.
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6. Those Contrary to an Existing Agreement Workers Association v. NLRC, 537 SCRA 171
(e.g. No strike/lockout provisions in the CBA) (2007)].
[Citing Ludwig Teller in Toyota Motors v.
NLRC, G.R. Nos. 158786 & 158787 (2007)]. Note: The mere fact that the criminal
complaints against terminated Union members
No Strike/Lockout Provisions in the CBA were subsequently dismissed does not
A “no strike, no lock-out” is a valid provision in extinguish their liability under the Labor Code
the CBA. However, it only applies to economic [C. Alcantara & Sons, Inc. v. CA, G.R. No.
provisions. It cannot prevent a strike which is 155109 (2011)].
grounded on unfair labor practice [Malayang
Samahan ng mga Manggagawa sa Greenfield Liability of Employer
v. Ramos, G.R. No. 113907 (2000)]. Any worker whose employment has been
terminated as a consequence of any unlawful
7. The Strikers do not Belong to a lockout shall be entitled to reinstatement with
Legitimate Labor Organization [Magdala full backwages [Art. 279(a)].
Multipurpose & Livelihood Coop. v. Kilusang
Manggagawa Ng LGS, G.R. Nos. 191138-39 Waiver of Illegality of Strike/ Condonation
(2011)]. Doctrine
e. Liability of Union Officers and When Defense of Illegality of Strike is

Members for Illegal Strike and Illegal Deemed Waived
Acts During Strike An employer can be deemed to have waived
the defense that a strike is illegal. In one case,
Liabilities of Parties the Court held that: “Admitting for the sake of
Any union officer who knowingly participates in argument that the strike was illegal for being
an illegal strike and any worker or union officer premature, this defense was waived by the
who knowingly participates in the commission [Company], when it voluntarily agreed to
of illegal acts during a strike may be declared reinstate the radio operators” [Bisaya Land
to have lost his employment status [Art. Transportation Co., Inc. v. CIR, G.R. No. L-
279(a)]. 10114 (1957)].
Note: Mere participation in an illegal strike by a When Defense of Illegality of Strike is Not
union officer is sufficient ground to terminate Deemed Waived
his employment. In case of a lawful strike, the The ruling cited in the Bisaya case that the
union officer must commit illegal acts during a employer waives his defense of illegality of the
strike for him to be terminated [Art. 279(a)]. strike upon reinstatement of strikers is
applicable only to strikers who signified their
Procedural due process is still required for intention to return to work and were accepted
dismissing union officers/ordinary workers. back […]
Where an opportunity to be heard either
through oral arguments or through pleadings is Condonation shall apply only to strikers who
accorded, there is no denial of procedural due signified their intention to return, and did return
process [Equitable PCI Banking Corp. v. RCBC to work, since these strikers took the initiative
Capital Corp, 574 SCRA 858 (2004)]. in normalizing relations with their employer and
thus helped promote industrial peace.
Liability of Ordinary Workers However, as regards the strikers who
General Rule: Participation by a worker in a decided to pursue with the case, […] the
lawful strike is not ground for termination of his employer could not be deemed to have
employment [Art. 279(a)]. condoned their strike, because they had not
shown any willingness to normalize relations
Exception: When the worker participated in with it [Philippine Inter-Fashion, Inc. v. NLRC,
illegal acts during the strike; needs clear, G.R. No. L-59847 (1982)].
substantial and convincing proof available
under the circumstances to justify the penalty
of dismissal [Toyota Motors Philippines
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However, the mere act of entering into a employees during any labor
compromise agreement cannot be deemed to controversy or in the exercise of the
be a waiver of the illegality of the strike, unless right to self-organization or collective
such a waiver is clearly shown in the bargaining, or shall aid or abet such
agreement [Filcon Manufacturing Corp v. obstruction or interference [Art.
Lakas Manggagawa sa Filcon – Lakas 279(b)].
Manggagawa Labor Center, G.R. No. 150166 2. By police force. The police force shall
(2004)] keep out of the picket lines unless
actual violence or other criminal acts
2. Picketing occur therein: Provided, That nothing
herein shall be interpreted to prevent
The right of legitimate labor organizations to any public officer from taking any
strike and picket and of employers to lockout, measure necessary to maintain peace
consistent with the national interest, shall and order, protect life and property,
continue to be recognized and respected [Art. and/or enforce the law and legal orders
278(b)]. [Art. 279(d)].
3. By person engaged in picketing. No
Picketing involves merely the marching to and person engaged in picketing shall
fro at the premises of the employer, usually commit any act of violence, coercion or
accompanied by the display of placards and intimidation or obstruct the free ingress
other signs making known the facts involved in to or egress from the employer’s
a labor dispute. premises for lawful purposes, or
obstruct public thoroughfares [Art.
As applied to a labor dispute, to picket means 279(e)].
the stationing of one or more persons to
observe and attempt to observe. The purpose Picketing as Part of Freedom of
of pickets is said to be a means of peaceable Speech/Expression
persuasion [Sta. Rosa Coca-Cola Plant General Rule: picketing enjoys constitutional
Employees Union v. Coca-Cola Bottlers protection as part of freedom of speech and/or
Philippines, Inc., G.R. Nos. 164302-03 (2007)]. expression.
Peaceful Picketing is the right of workers Exceptions/Limitations:

during strikes consisting of marching to and fro a. When picketing is coercive rather than
before an establishment involved in a labor persuasive [Security Bank Employees
dispute generally accompanied by the carrying Union v. Security Bank, G.R. No. L-
and display of signs, placards and banners 28536 (1968)]
intended to inform the public about the dispute b. When picketing is achieved through
[Guidelines Governing Labor Relations, illegal means [Mortera v. CIR, G.R. No.
October 19, 1987; NCMB Manual, Sec. 1]. L-1340 (1947)]
c. Courts may confine the
Purpose communication/ demonstration to the
The purpose of the picket line is to persuade parties to the labor dispute [PCIB v.
employers peacefully by publicizing the labor Philnabank Employees Association,
dispute to inform the public of what is G.R. No. L-29630 (1981)]
happening and thus cause other workers not to d. Innocent bystander rule. Courts may
work in the establishment and for customers insulate establishments or persons
not to do business there [Phimco Industries, with no industrial connection or having
Inc. v. Phimco Industries Labor Association interest totally foreign to the context of
(PILA), et al., 628 SCRA 119 (2010)]. the dispute [PCIB v. Philnabank
Employees Association, G.R. No. L-
Prohibited Activities in Picketing 29630 (1981)]
1. By any person. No person shall
obstruct, impede, or interfere with, by
force, violence, coercion, threats or
intimidation, any peaceful picketing by
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Picketing and Libel 8. Report of lockout vote;
Libel laws are not applied strictly considering 9. Observance of the waiting period (7-
that there is emotional tension in the picket day strike ban).
lines and expected discourteous and impolite
exchanges between the employees and the 1. Effort to Bargain
employer [PCIB v. Philnabank Employees No employer shall declare a […] lockout
Association, G.R. No. L-29630 (1981)]. without first having bargained collectively in
accordance with Title VII of this Book [Art.
Peaceful Picketing is Legal Even in the 279(a)].
Absence of Employer-Employee
Relationship 2. Filing and Service of Notice of Lockout
Picketing, peacefully carried out, is not illegal Filed by: The duly certified or recognized
even in the absence of employer-employee bargaining agent may file notice of lockout
relationship, for peaceful picketing is a part of
the freedom of speech guaranteed by the Filed with: With the Department
Constitution [De Leon v. National Labor Union,
G.R. No. L-7586 (1957)]. When: At least 30 days before the intended
date of the lockout [Art. 278(c)].
3. Lockouts
Note: The notice must be served to the
Lockout is the temporary refusal of an employees through the SEBA or the legitimate
employer to furnish work as a result of an labor organization (if no SEBA).
industrial or labor dispute [Art. 219 (p)].
Contents of Notice
Illegal Strike and Illegal Lockout/In Pari 1. Names and addresses of the employer
Delicto Doctrine and the union involved
When the employer engaged in illegal lockout 2. Nature of the industry to which the
and the employee engaged in illegal strike, employer belongs
both parties are in pari delicto, and such 3. Number of union members and of
situation warrants the restoration of the status workers in the bargaining unit
quo ante and bringing the parties back to the 4. Such other relevant data as may
respective positions before the illegal strike facilitate the settlement of the dispute
and illegal lockout [Philippines Inter-Fashion
Inc. v. NLRC, G.R. No. L-59847 (1982)]. Additional Requirements [Sec. 8, Rule XXII,
Book V, IRR]
a. Grounds for Lockout In Cases of Bargaining Deadlocks
1. Statement of unresolved issues in the
bargaining negotiations
Similar to a Strike, the Proper Grounds for
2. Written proposals of the union
a Lockout are
3. Counter-proposals of the employer
1. Bargaining deadlock;
4. Proof of a request for conference to
2. ULP by labor organizations.
settle the differences.
b. Mandatory Procedural Requirements In Cases of ULP
1. Effort to bargain (in case of bargaining 1. Statement of acts complained of
deadlock); 2. Efforts taken to resolve the dispute
2. Filing and service of notice of lockout to amicably
the NCMB;
3. Observance of cooling-off period; Action on Notice
4. 15 days for ULP; 1. Upon receipt of a valid notice of strike
5. 30 days for bargaining deadlock; or lockout, the NCMB, through its
6. Notice of lockout vote meeting within Conciliator-Mediators, shall call the
24 hours before the intended vote [Sec. parties to a conference the soonest
10, Rule XXII, Book V, IRR]; possible time in order to actively assist
7. Lockout vote;
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them to explore all possibilities for 4. Assumption of Jurisdiction by the
amicable settlement. DOLE Secretary
2. The Conciliator-Mediator may suggest/
offer proposals as an alternative When May the SOLE Assume Jurisdiction
avenue for the resolution of their When in his opinion, there exist a labor dispute
disagreement/conflict which may not causing or likely to cause a strike or lockout in
necessarily bind the parties. an industry indispensable to the national
3. If conciliation/mediation fails, the interest, the SOLE may assume jurisdiction
parties shall be encouraged to submit over the dispute and decide it or certify the
their dispute for voluntary arbitration same to the Commission for compulsory
[Sec. 9, Rule XXII, Book V, IRR]. arbitration [Art. 278(g)].
3. Observance of Cooling-off Periods Requisites for Assumption of Jurisdiction
1. Both parties have requested the SOLE
Lockout cooling-off periods: to assume jurisdiction; or
1. Based on bargaining deadlock – 30 2. After a conference called by the Office
days of the SOLE on the propriety of its
2. Based on ULP – 15 days [Art. 278(c)] issuance, motu proprio or upon a
request or petition by either parties to
the labor dispute [Book V, IRR Rule
4. Notice of Lockout Vote Meeting XXII, sec. 15, IRR as amended by D.O.
In every case, the union or the employer shall No. 40-H-13 s 2013].
furnish the regional branch of the Board the
notice of meetings referred to in the preceding Immediately Executory
paragraph at least twenty-four (24) hours The assumption and certification orders are
before such meetings [Sec. 10, Rule XXII, executory in character and must be strictly
Book V, IRR]. complied with by the parties [Allied Banking v.
NLRC, G.R. No. 116128 (1996)].
5. Lockout Vote
A decision to declare a lockout must be Effect of Defiance of Assumption or
approved by a majority of the board of directors Certification Orders
of the corporation or association or of the No strike or lockout shall be declared after
partners in a partnership, obtained by secret assumption of jurisdiction by the President or
ballot in a meeting called for that purpose. The the Minister or after certification or submission
decision shall be valid for the duration of the of the dispute to compulsory or voluntary
dispute based on substantially the same arbitration or during the pendency of cases
grounds considered when the strike or lockout involving the same grounds for the strike or
vote was taken [Art. 278(f)]. lockout [Art. 279(a), par. 2].
6. Report of Lockout Vote A strike undertaken despite the issuance by the
In every case, the union or the employer shall Secretary of Labor of an assumption or
furnish the Ministry the results of the voting at certification order becomes a prohibited activity
least seven days before the intended strike or and thus, illegal, pursuant to Art. 279(a) of the
lockout, subject to the cooling-off period herein Labor Code [Allied Banking v. NLRC, G.R. No.
provided [Art. 278(f)]. 116128 (1996)].
7. Observance of Waiting Period (7 Days)

See notes under Strike.
Effect of Illegal Lockout

Any worker whose employment has been
terminated as a consequence of any unlawful
lockout shall be entitled to reinstatement with
full backwages [Art. 279(a)].
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a. Industry Indispensable to the National Return-to-work and readmission if strike or
Interest lockout has already taken place
1. Hospital sector If strike or lockout has already taken place at
2. Electric power industry the time of assumption or certification,
3. Water supply service, to exclude small 1. All striking or locked out employees
water supply services, such as bottling shall immediately return-to-work; and
and refilling stations 2. The employer shall immediately
4. Air traffic control resume operations and readmit all
5. Other industries as may be workers under the same terms and
recommended by the National conditions prevailing before the strike
Tripartite Industrial Peace Council or lockout [Art. 278 (g)].
(TIPC) [Sec. 16, Rule XXII, Book V,
IRR as amended by D.O. No. 40-H-13]. The SOLE may also determine the retroactivity
of arbitral awards pursuant to power to assume
Who Determines Industries jurisdiction as part of his/her plenary powers to
Indispensable to the National Interest [Art. determine the effectivity thereof in absence of
278(g)] specific provision of law [LMG Chemicals Corp.
1. Secretary of Labor and Employment v. Sec. of Labor and Employment, 356 SCRA
2. President 577 (2001)].
Strikes and Lockouts in Hospitals, Clinics Nature of return-to-work order

and Similar Medical Institutions The return-to-work order not so much confers
It shall be the duty of the striking union or a right as it imposes a duty; and while as a right
locking-out employer to provide and maintain it may be waived, it must be discharged as a
an effective skeletal workforce of medical and duty even against the worker's and/or
other health personnel, whose movement and employers’ will.
services shall be unhampered and
unrestricted, as are necessary to insure the The worker must return to his job together with
proper and adequate protection of the life and his co-workers so the operations of the
health of its patients, most especially company can be resumed and it can continue
emergency cases, for the duration of the strike serving the public and promoting its interest.
or lockout. That is the real reason such return can be
compelled. So imperative is the order in fact
In such cases, therefore, the Secretary of that it is not even considered violative of the
Labor and Employment may immediately right against involuntary servitude [Kaisahan
assume, within twenty-four (24) hours from ng Mga Manggagawa sa Kahoy v. Gotamco
knowledge of the occurrence of such a strike or Sawmills, G.R. No. L-1573 (1948)].
lockout, jurisdiction over the same or certify it
to the Commission for compulsory arbitration Note: It must be strictly complied with even
[Art. 278, par. 2]. during the pendency of any petition questioning
its validity [Manila Hotel Employees
Rationale: The highest respect is accorded to Association and its Members v. Manila Hotel
the right of patients to life and health. Corp., 517 SCRA 349 (2007)].
5. Injunctions The purpose of SOLE’s extraordinary power is

aimed at arriving at a peaceful and speedy
Automatic Injunction of Intended of solution to labor disputes without jeopardizing
national interest [Union of Filipro Employees-
Impending Strike or Lockout
The assumption of jurisdiction by the SOLE Drug v. Nestle, 499 SCRA 521 (2006)].
automatically enjoins intended or impending
strike or lockout [Art. 278 (g)].
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VI. TERMINATION OF Reasonable Connection Rule

The primary standard to determine regular
EMPLOYMENT employment is the reasonable connection
between the activity performed by the
employee to the business or trade of the
A. Security of Tenure employer.
1. Categories of Employment as to Test: W/N the employee is usually necessary

Tenure or desirable in the usual business or trade of
the employer.
a. Regular
If the employee has been performing the job for
An employment shall be deemed to be regular at least one year, even if not continuous or
where the employee has been engaged to merely intermittent, the repeated and
perform activities which are usually necessary continuing need for performance is sufficient
or desirable in the usual business or trade of evidence of necessity, if not indispensability of
the employer, except where: that activity to the business of the employer.
1. The employment has been fixed for a Hence, the employment is also considered
specific project or undertaking, the regular, but only with respect to such activity
completion or termination of which has and while such activity exists [Forever Richons
been determined at the time of the Trading Corp. v. Molina, G.R. No. 206061
engagement of the employee; or (2013)].
2. The work or service to be performed is
seasonal in nature and the employment is When Art. 295 Not Applicable
for the duration of the season [Art. 295]. It does not apply where the existence of an
EER is in dispute. It is not the yardstick for
An employee who is allowed to work after a determining the existence of an EER, as it
probationary period shall be considered a merely distinguishes between two kinds of
regular employee [Art. 296]. employees, i.e., regular and casual, for
purposes of determining the right of an
Regular Employee Defined employee to certain benefits, to join or form a
One who is engaged to perform activities that union, or to security of tenure [Atok Big Wedge
are necessary and desirable in the usual Co., Inc. v. Gison, G.R. No. 169510 (2011)].
business or trade of the employer as against
those which are undertaken for a specific Hiring For an Extended Period
project or are seasonal. Where the employment of project employees is
It is not synonymous with permanent emp extended long after the supposed project has
loyee, because there is no such thing as a been finished, the employees are removed
permanent employment. Any employee may from the scope of project employees and
be terminated for just cause. considered regular employees [Audion Electric
Co., Inc. v. NLRC, G.R. No. 106648 (1999)].
Two Kinds of Regular Employee
1. Those engaged to perform activities which While length of time is not a controlling test for
are necessary or desirable in the usual project employment, it can be a strong factor in
business or trade of the employer; and determining whether the employee was hired
1. Casual employees who have rendered at for a specific undertaking or in fact tasked to
least 1 year of service, whether perform functions which are vital, necessary
continuous or broken, with respect to the and indispensable to the usual business or
activity in which they are employed trade of the employer [Tomas Lao Const. v.
[Romares v. NLRC, G.R. No. 122327 NLRC, G.R. No. 116781 (1997)].
(1998)].
Repeated Renewal of Contract
While contractual stipulations as to the duration
of employment are valid, they cannot apply
where the contract-to-contract arrangement
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was but an artifice to prevent the acquisition of contracted for a specific project [Tabas
security of tenure and to frustrate constitutional v. California Marketing Co., Inc., G.R.
decrees [Beta Electric Corp. v. NLRC, G.R. No. No. L-80680 (1989)].
86408 (1990)]. 2. Employment shall continue while such
activity exists.
Length of Time Not Controlling
Length of time is merely a badge of regular Nature of Work Determines Kind of
employment [Maraguinot v. NLRC, G.R. No. Employment
120969 (1998)]. What determines regularity or casualness is
not the employment contract but the nature of
b. Casual the job. If the job is usually necessary or
desirable to the main business of the employer,
An employment shall be deemed to be casual then employment is regular [A. M. Oreta and
where: Co., Inc. v. NLRC, G.R. No. 74004 (1989)].
1. An employee is engaged to perform a
job, work or service which is merely c. Probationary
incidental to the business of the
employer, and such job, work or Probationary Employee Defined
service is for a definite period made One who is made to go on a trial period by an
known to the employee at the time of employer during which the employer
engagement [Sec. 5(b), Rule I, Book determines whether he is qualified for
VI, IRR]; permanent employment, based on reasonable
2. The employment has been fixed for a standards made known to him at the time of
specific project or undertaking, the engagement [Robinson’s Galleria et al. v.
completion or termination of which has Ranchez, G.R. No. 177937 (2011)].
been determined at the time of the
engagement of the employee; or Rules for Probationary Employment
3. The work or service to be performed is 1. Shall not exceed 6 months from the
seasonal in nature and the date the employee started working,
employment is for the duration of the unless it is covered by an
season [Art. 295]. apprenticeship agreement stipulating a
longer period [Art. 296].
Provided, That any employee who has 2. The services of an employee who has
rendered at least one year of service, whether been engaged on a probationary basis
such service is continuous or broken, shall be may be terminated for a just cause or
considered a regular employee with respect to when he fails to qualify as a regular
the activity in which he is employed and his employee in accordance with
employment shall continue while such activity reasonable standards made known by
exists [Art. 295]. the employer to the employee at the
time of his engagement [Art. 296].
Casual Employee Defined 3. The employer shall make known to the
One engaged to perform a job, work or service employee the standards under which
that is merely incidental to the business of the he will qualify as regular employee at
employer, and such job, work or service is for the time of his engagement.
a definite period made known to the employee 4. Where no standards are made known
at the time of engagement. to the employee at the time of
engagement, he shall be deemed a
It is also someone who is not a regular, project regular employee [Sec. 6(d), Rule I,
or seasonal employee. Book VI, IRR].
5. An employee who is allowed to work
Requirements to Become a Regular after a probationary period shall be
Employee considered a regular employee [Art.
1. One (1) year service, continuous or 296].
broken with respect to activity
employed, unless he has been
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Duration An employer is deemed to have made known
General Rule: Shall not exceed 6 months from the standards when it has exerted reasonable
the date of the commencement of employment. efforts to apprise the employee of what he is
expected to do or accomplish during the trial
Exceptions: period of probation. This employee must be
1. When it is covered by an sufficiently made aware of his probationary
apprenticeship agreement stipulating a status as well as the length of time of the
longer period [Art. 296]; probation. The exception to the foregoing is
2. When the parties to the employment when the job is self-descriptive in nature
contract agree otherwise, such as [Abbott Laboratories Phil. et al. v. Alcaraz, G.R.
when established by company policy or No. 192571 (2013)].
required by the nature of the work
performed by the employee [Buiser v. Effect of Failure to Comply
Leogardo, G.R. No. L-63316 (1984)]; If the employer fails to comply with the above-
3. When it involves the 3-year requirements, the employee is deemed as a
probationary period of teachers regular and not probationary employee [Alcira
[Mercado v. AMA Computer College, v. NLRC, G.R. No. 149859 (2004)].
G.R. No. 183572 (2010)]; and
4. When it involves an act of liberality on Burden of Proof of Compliance with
the part of his employer affording him a Employer
second chance to make good after The employer has the burden of proving that
having initially failed to prove his worth they have informed the probationary employee
as an employee [Mariwasa v. of the standards, that those standards have
Leogardo, G.R. No. 74246 (1989)]. been applied to the employee, and that the
employee fell short of such standards.
Purpose of Probationary Employment
1. Observation Period – for the employee Prohibition on Extended/Double
to demonstrate his skills to the Probation
employer who determines whether the When the employer renews the employment
former is qualified. contract after the lapse of the 6-month
2. Restrictive - As long as termination was probationary period, the employees thereby
made before the expiration of the 6- became regular employees. No employer is
month probationary period, the allowed to indefinitely determine the fitness of
employer has a right to sever the EER. its employees [Bernardo v. NLRC, supra].
The employer has the right to choose who will Furthermore, an employee who is merely
be hired. It is within the exercise of this right transferred to his employer’s sister company
that the employer may fix a probationary period cannot be subjected to new probationary
within which he may test and observe the employment when he had already attained
conduct of the employee before permanent regular employment under his original
hiring [Grand Motor Parts Corp. v. MOLE, G.R. employer [A Prime Security Services, Inc. v.
No. L-58958 (1984)]. NLRC, G.R. No. 107023 (2000)].
Requirements for Validity of Qualification Termination of Probationary Employee

Standards A probationary employee enjoys only a
In order for the standards set by the employer temporary employment status. He is
to be validly used in determining whether the terminable at any time, permanent employment
employee qualifies for permanent employee: not having been attained in the meantime. The
1. The employer must communicate such employer could decide he no longer needed
standards to the probationary the probationary employee’s services or his
employee; and performance fell short of expectations. As long
2. Such communication must be made at as termination was made before the
the time of the probationary termination of the 6-month probationary period,
employee’s engagement. the employer was within his rights to sever the
EER. A contrary interpretation would defect the
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clear meaning of the term “probationary” [De la Heavy Industries & Const. Co. v. Ibañez, G.R.
Cruz, Jr. v. NLRC, G.R. No. 145417 (2003)]. No. 170181 (2008)].
Termination Can Only Be For: Rationale for Project Employment

1. Just causes; If a project has already been completed, it
2. Authorized causes; or would be unjust to require the employer to
3. Failure to qualify as a regular employee maintain them in the payroll while they are
in accordance with reasonable doing absolutely nothing except waiting until
standards made known by the another project is begun. In effect, these stand-
employer to the employee at the time by workers would be enjoying the status of
of engagement [Robinson’s Galleria et privileged retainers, collecting payment for
al. v. Ranchez, G.R. No. 177937 work not done, to be disbursed by the employer
(2011)]. from profits not earned [De Ocampo, Jr. v.
NLRC, G.R. No. 81077 (1990)].
Nonetheless, procedural and substantial due
process must be observed during termination Two Kinds of Project Employees
of the probationary employee. 1. For a particular job or undertaking that
Note: In order to invoke “failure to meet the is WITHIN the regular or usual
probationary standards” as a justification for business of the employer company, but
dismissal, the employer must show how these which is distinct and separate, and
standards have been applied to the subject identifiable as such, from the other
employee [Univac Development, Inc. v. undertakings of the company (e.g.,
Soriano, G.R. No. 182072 (2013)]. construction)
2. For a particular job or undertaking that
Limits to Termination is NOT within the regular business of
1. It must be exercised in accordance with the corporation. Such a job or
the specific requirements of the undertaking must also be identifiably
contract separate and distinct from the ordinary
2. If a particular time is prescribed, the or regular business operations of the
termination must be within such time employer [Villa v. NLRC, G.R. No.
and if formal notice is required, then 117043 (1988)].
that form must be used
3. Employer’s dissatisfaction must be real Test of Project Employment
and in good faith, not feigned so as to W/N employment has been fixed for a specific
circumvent the contract or the law project or undertaking the completion or
4. There must be no unlawful termination of which has been determined at
discrimination in the dismissal [Manila the time of the engagement of the employee
Hotel Corporation v. NLRC, G.R. No. [D.M. Consunji v. NLRC, G.R. No. 116572
53453 (1986)]. (2000)].
d. Project Note: When the employment contract does not

state a particular date, but it does specify that
Employment is not deemed regular where the termination of employment is to be on a “day
employment has been fixed for a specific certain” -- the day when the specified phase of
project or undertaking the completion or work would be completed --, the employee
termination of which has been determined at cannot be considered regular. He is a project
the time of the engagement of the employee employee [Filipinas Pre-Fabricated Building
[Art. 295]. Systems, Inc. v. Puente, G.R. No. 153832
(2005)].
Project Employee Defined
One who is hired for carrying out a separate
job, distinct from the other undertakings of the
company, the scope and duration of which has
been determined and made known to the
employees at the time of employment [Hanjin
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Indicators of Project Employment Generally, length of service provides a fair
1. The duration of the specific/identified yardstick for determining when an employee
undertaking for which the worker is initially hired on a temporary basis becomes a
engaged is reasonably determinable; permanent one, entitled to the security and
2. Such duration, as well as the specific benefits of regularization. But this standard
work/service to be performed, is will not be fair, if applied to the construction
defined in an employment contract; industry, simply because construction firms
3. Agreement and is made clear to the cannot guarantee work and funding for its
employee at the time of the hiring; payrolls beyond the life of each project [William
4. The work/service to be performed by Uy Construction Corp. v. Trinidad, G.R. No.
the employee is in connection with the 183250 (2010)].
particular project/undertaking for which
he is engaged; e. Seasonal
5. The employee, while not employed and
awaiting engagement, is free to offer Employment is not deemed regular where the
his services to any other employer; work or service to be performed is seasonal in
6. The termination of his employment in nature and the employment is for the duration
the particular project/undertaking is of the season [Art. 295].
reported to the DOLE Regional Office
having jurisdiction over the workplace Seasonal Employees Defined
following the date of his separation Those whose work or services to be performed
from work, using the prescribed form are seasonal in nature, as there is no
on employees’ terminations continuing need for the worker. Their
/dismissals/suspensions; employment is for the duration of the season.
7. An undertaking in the employment
contract by the employer to pay “Regular Seasonal” Employees After One
completion bonus to the project Season
employee as practiced by most Seasonal workers who are constantly rehired
construction companies [D.O. No. 19, and are only temporarily laid off during off-
Sec. 2.2; Samson v. NLRC, G.R. No. season are not separated from service in said
11366 (1996)]. period, but are merely considered on leave
until work resumes. They are considered
Repeated Hiring, Length of Service Not regular and permanent employees. The nature
Determinative of their relationship is such that during off-
The repeated and successive rehiring of season they are temporarily laid off but during
project employees do not qualify them as summer season they are re-employed, or when
regular employees. What is determinative is their services may be needed. They are not
whether the employment has been fixed for a strictly speaking separated from the service but
specific project or undertaking, its are merely considered as on leave of absence
completion has been determined at the time of without pay until they are re-employed
the engagement of the employee [Leyte [Philippine Tobacco Flue-Curing & Redrying
Geothermal Power Progressive Employees Corp. v. NLRC, G.R. No. 127395 (1998)].
Union v. Philippine National Oil Company, G.R.
No. 170351 (2011)]. Must Only Be Hired for the Duration of
One Season
The fact that employment as project To be considered seasonal employees, it is not
employees has gone beyond 1 year does not enough that work or services performed are
legally dissolve their status as project seasonal in nature. The employees must have
employees. LC 280(2) providing that an been employed only for the duration of one
employee who has served at least 1 year season [Hacienda Fatima v. National
shall be considered a regular employee, Federatiom of Sugarcane Workers, G.R. No.
relates to casual employees, not to project 149440 (2003)].
employees [Raycor Aircontrol Systems v.
NLRC, G.R. No. 114290 (1996)].
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Exception to One Season Rule (illustrative employees, the determining factor is the day
case) certain agreed upon (i.e., the commencement
Although respondent constantly availed herself and termination of the EER) [GMA Network v.
of the petitioners’ services from year to year, it Pabriga, G.R. No. 176419 (2013)].
was clear from the facts therein that they were
not in her regular employ. Petitioners therein Distinguished from Independent
performed different phases of agricultural work Contractors
in a given year. However, during that period, No EER exists between independent
they were free to work for other farm owners, contractors and their principals; their contracts
and in fact they did. In other words, they are governed by the law on contracts and other
worked for respondent, but were nevertheless applicable law. Employees under fixed-term
free to contract their services with other farm contracts cannot be independent contractors
owners. The Court was thus emphatic when it because in fixed-term contracts, an EER
ruled that petitioners were mere project exists [Fuji Television Network, Inc. v. Espiritu,
employees, who could be hired by other farm G.R. No. 204944-45 (2014)].
owners [Mercado, Sr. v. NLRC, G.R. No.
79869 (1991)]. Regular Fixed-Term Employee
Where an employee’s contract had been
f. Fixed-Term continuously extended or renewed to the same
position, with the same duties and remained in
Brent Doctrine the employ without any interruption, then such
When the following indicators are present, employee is a regular employee. The
fixed-term employment is valid: employee’s contract indicating a fixed-term did
1. Fixed period of employment was not automatically mean that he/she could never
knowingly and voluntarily agreed upon be a regular employee.
by the parties absent any circumstance
vitiating consent An employee can be a regular employee with a
2. It satisfactorily appears that the fixed-term contract. The law does not preclude
employer and employee dealt each the possibility that a regular employee may opt
other on more or less equal footing with to have a fixed-term contract for valid reasons.
no moral dominance exercised by one For as long as it was the employee who
over the other. requested, or bargained, that the contract have
a “definite date of termination,” or that the fixed-
Reason for Equal Footing Indicator term contract be freely entered into by the
When a prospective employee, on account of employer and the employee, then the validity of
special skills or market forces, is in a position the fixed-term contract will be upheld [Fuji
to make demands upon the prospective Television Network Inc v. Espiritu, G.R. No.
employer, such prospective employee needs 204944-45 (2014)].
less protection than the ordinary worker. The
level of protection to labor must be determined No Implied Renewal Upon Termination
on the basis of the nature of the work, When the day certain for the termination of
qualifications of the employee, and other employment comes, there is no implied
relevant circumstances [Fuji Television renewal or extension of employment This must
Network Inc v. Espiritu, G.R. No. 204944-45 be expressly and mutually-agreed upon [Unica
(2014)]. v. Anscor Swire Ship Management Corp., G.R.
No. 184318 (2014)].
Distinguished from Project Employees
Fixed-term employees are different from In Case of Pre-Termination
project employees, as the former negotiates Due process must be observed in the pre-
their employment contract on more equal termination of fixed-term contracts in order for
footing with the employer than the latter. the employer to not be liable for illegal
Furthermore, both kinds of employment dismissal [Fuji Television Network Inc v.
happen within a period. For project employees, Espiritu, G.R. No. 204944-45 (2014)].
the determining factor is the activity (w/n
project) to be performed. For fixed-term
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g. Work-Pool Employees National Construction Corp., G.R. No. 192394
(2013)].
Work Pool Employee
Project employees may or may not be 2. Legitimate Subcontracting vs.
members of a work pool. Those who are Labor-Only Contracting
members of a work pool may either be project
or regular employees [Raycor Aircontrol a. Elements
Systems, Inc. vs. NLRC, G.R. 114290 (1996)]. To be considered legitimate contracting or
subcontracting, the following elements must
A work pool may exist although the workers in concur:
the pool do not receive salaries and are free to 1. Distinct and independent business:
seek other employment during temporary Contractor or subcontractor is engaged
breaks in the business, provided, that the in a distinct and independent business
worker shall be available when called to report and undertakes to perform the job on
for a project. Although primarily applicable to its own responsibility, according to its
regular seasonal workers, this set-up can own manner and method;
likewise be applied to project workers insofar 2. Substantial capital or investment:
as the effect of temporary cessation of work is Contractor or subcontractor has
concerned [Maraguinot v. NLRC, G.R. No. substantial capital to carry out the job
120969. (1998)]. farmed out by the principal on his
account, manner and method,
Work Pools in Construction Companies investment in the form of tools,
Members of a work pool from which a equipment, machinery and
construction company draws its project supervision;
employees, if considered employees of the 3. Free from control/direction of the
construction company while in the work pool, principal: In performing the work,
are non-project employees or employees for an contractor or subcontractor is free from
indefinite period. If they are employed in a the control/direction of the principal in
particular project, the completion of the project all matters regarding performance of
or any phase thereof will not mean severance the work except the result;
of the EER [Policy Instruction No. 20; J. & DO 4. Compliance with labor laws: Service
Aguilar Corp. v. NLRC, G.R. No. 116352 Agreement ensures that employees of
(1997)]. the contractor/subcontractor are given
all the benefits and rights they are
When a Project Employee or a Member of entitled to under labor laws [Sec. 8,
a Work Pool Acquires the Status of D.O. No. 174-17].
Regular Employment
1. Continuous rehiring of project Substantial Capital
employees even after cessation of a Refers to paid-up capital stocks/shares of at
project; least P5,000,000 in the case of corporations,
2. Task performed by the alleged “project partnerships and cooperatives; in case of
employees” are vital, necessary and single proprietorship, a net worth of at least
indispensable to the usual business or P5,000,000 [Sec. 3(l), D.O. No. 174-17].
trade of the employer [Maraguinot v.
NLRC, G.R. No. 120969. (1998)]. b. Trilateral Relationship
When the above-elements are present, a
Termination Requirements trilateral relationship arises. It consists of the
A report of termination to the nearest public following parties:
employment office every time their 1. Principal - Any natural or juridical
employment was terminated due to completion entity, whether an employer or not, who
of each construction project. Failure of the puts out or farms out a job or work to a
employer to file termination reports after every contractor.
project completion proves that the employees 2. Contractor - Any person or entity
are not project employees [Pasos v. Philippine engaged in a legitimate contracting or
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subcontracting arrangement providing B. Termination by Employer
services for a specific job or
undertaking farmed out by a principal
1. Substantive Due Process
under a Service Agreement.
3. Contractor’s employee - Employee of
Substantive Due Process - whether the
the contractor hired to perform or
termination was based on the provisions of the
complete a job or work farmed out by
Labor Code or in accordance with
the principal [Sec. 3, D.O. No. 174-17].
jurisprudence.
The dismissal must be for any of the causes

c. Solidary Liability provided for in Art. 297-299.
Solidary Liability of Principal and a. Just Causes
Contractor
1. Serious Misconduct or Willful
Every employer or indirect employer shall be
Disobedience (Insubordination)
held responsible with his contractor for any
2. Gross & Habitual Neglect of Duties
violations of labor laws. For purposes of
3. Fraud/Willful Breach of Trust
determining the extent of their civil liability, they
4. Commission of A Crime
shall be considered as direct employers [Art.
5. Analogous cases
109].
An employer may terminate an employment for
any of the following causes:
1. Serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representatives in connection with his
work;
2. Gross and habitual neglect by the
employee of his duties;
3. Fraud or willful breach by the employee
of the trust reposed in him by his
employer or duly authorized
representative;
4. Commission of a crime or offense by
the employee against the person of his
employer or any immediate member of
his family or his duly authorized
representatives; and
5. Other causes analogous to the
foregoing [Art. 297].
Basis
As a measure of self-protection against acts
inimical to the employer’s interest. An employer
cannot be compelled to continue employing an
employee guilty of acts inimical to the
employer’s interest, justifying loss of
confidence in him [Yabut v. Meralco, G.R. No.
190436 (2012)].
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1. Serious Misconduct or Willful 2. Gross and Habitual Neglect of Duties
Disobedience
Requisites
Requisites of Serious Misconduct 1. There must be a neglect of duty
1. There must be misconduct 2. The neglect must be both gross and
2. The misconduct is of such grave and habitual in character
aggravated character
3. It must relate to the performance of Gross negligence has been defined as the
the employee’s duties want or absence of or failure to exercise slight
4. A showing that the employee care or diligence, or the entire absence of care.
becomes unfit to continue working It evinces a thoughtless disregard of
for the employer [Sec. 5.2(a), D.O. No. consequences without exerting any effort to
147-15] avoid them. In order to constitute just cause for
an employee’s dismissal due to negligence, it
Misconduct refers to the improper or wrong must be both gross and habitual. A single or an
conduct that transgresses some established isolated act cannot be categorized as habitual
and definite rule of action, a forbidden act, a [National Bookstore v. CA, G.R. No. 146741
dereliction of duty, willful in character, and (2002)].
implies wrongful intent and not mere error in
judgment [Northwest Airlines Inc v. Del Gross negligence - want of care in the
Rosario, G.R. No. 157633 (2014)]. performance of one’s duties.
Example: Accusatory and inflammatory Habitual neglect - repeated failure to perform

language used by an employee to the one’s duties for a period of time.
employer or superior [Nissan Motors Phils v.
Angelo, G.R. No. 164181 (2011)]. Estoppel by Toleration of Management
Breach of rules and regulations which are
Requisites of Willful Disobedience tolerated by management cannot serve as a
1. There must be disobedience or basis for termination. The rule only applies
insubordination; when the violation is not tantamount to fraud or
2. The disobedience or insubordination commission of illegal activities. One cannot
must be willful or intentional evade liability based on obedience to the
characterized by a wrongful and corporate chain of command [PNB v. Padao,
perverse attitude; G.R. No. 180849, 187143 (2011)].
3. The order violated must be
reasonable, lawful and made known Gross Negligence Includes Gross
to the employee [Mirant Philippines Inefficiency
Corp v. Sario, G.R. No. 197598 Gross and habitual neglect of duty includes
(2012)]; and gross inefficiency, negligence and
4. The order must pertain to the duties carelessness [Century Iron Works, Inv. v.
which he has been engaged to Banas, G.R. No. 184116 (2013)].
discharge [Sec. 5.2(b), D.O. No. 147-
15]. 3. Fraud/Willful Breach of Trust
The employee’s initial reluctance to prepare Requisites of Fraud or Willful Breach of

the checks which was seemingly an act of Trust:
disrespect and defiance, was for honest and 1. There must be an act, omission or
well-intentioned reasons to protect the concealment;
company from liability under the Bouncing 2. The act, omission or concealment
Checks Law. It was not wrongful nor willful. involves a breach of legal duty, trust, or
Neither can it be considered an obstinate confidence justly reposed;
defiance of company authority [Lores Realty 3. It must be committed against the
Enterprises v. Paria, G.R. No. 171189 (2011)]. employer or his/her representative; and
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4. It must be in connection with employer [Equitable Banking Corp. v. NLRC,
employee’s work [Sec. 5.2 (d), DO No. G.R. No. 102467 (1997)].
147-15].
Note: DO 174-15 distinguishes fraud or willful
When Dismissal is Proper for breach of trust from loss of confidence, but, as
Fraud/Willful Breach of Trust seen in cases, jurisprudence seems to make
Such breach is willful if it is done intentionally, no such distinction.
knowingly, and purposely, without justifiable
excuse as distinguished from an act done Positions of Trust and Confidence
carelessly, thoughtlessly, heedlessly or 1. Managerial employees - vested with
inadvertently. The act complained of must be powers or prerogatives to lay down
work-related and shows that the employee is management policies and to hire,
unfit to continue working. In addition, it must be transfer, suspend, lay-off, recall,
premised on the fact that the employee discharge, assign or discipline
concerned holds a position of responsibility, employees or effectively recommend
trust and confidence or is entrusted with such managerial actions.
confidence with respect to delicate matters 2. Fiduciary Rank and File - those who in
such as handling or case and protection of the the normal and routine exercise of their
property and assets of the employer functions, regularly handle significant
[Villanueva, Jr. v. NLRC, G.R. No. 176893 amounts of money or property. Ex.
(2012)]. cashiers, auditors, property custodians
[Prudential Guarantee and Assurance
Requisites of Loss of Confidence Employee Labor Union v. NLRC, G.R.
1. There must be an act, omission or No. 185335 (2012)].
concealment;
2. The act, omission or concealment Managerial Fiduciary Rank-
justifies the loss of trust and confidence and-File
of the employer to the employee;
3. The employee concerned must be
holding a position of trust and Mere existence of a Proof of involvement
confidence; basis for the belief of
in the alleged events
4. The loss of trust and confidence should employee’s guilt
in question required;
not be simulated; [Grand Asianmere uncorroborated
5. It should not be used as a subterfuge Shipping Lines Inc.v.assertions and
for causes which are improper, illegal Galvez, G.R. No. accusations are not
or unqualified; and 178184 (2014) enough [Etcuban, Jr.
6. It must be genuine and not a mere v. Sulpico Lines Inc,
afterthought to justify an earlier action Employment for a G.R. No. 148410
taken in bad faith [Sec. 5.2(e), DO No. long time is counted (2005)]
147-15]. AGAINST the
employee [Salvador
When Dismissal is Proper for Loss of v. Philippine Mining
Trust/Confidence Service, G.R. No.
The employee is one holding a position of trust 148766]
and confidence (e.g. managerial or fiduciary
employees). There must be an act that justifies
the loss of trust and confidence based on a Reason for Rule on Managerial
willful breach of trust and founded on clearly Employees
established facts [Wesleyan University - While plain accusations are not sufficient to
Philippines v. Reyes, G.R. No. 208321 (2014)]. justify the dismissal of rank and file employees,
the mere existence of a basis for believing that
Moreover, the act complained must be related managerial employees have breached the trust
to the performance of the duties of the reposed on them by their employer would
employee such as would show him to be suffice to justify their dismissal [Grand Asian
thereby unfit to continue working for the
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Shipping Lines Inc.v. Galvez, G.R. No. 178184 5. Analogous Causes
(2014)].
Requisites
Acquittal in Criminal Case Arising from 1. There must be an act or omission
Misconduct similar to those specified just causes;
Notwithstanding acquittal in the criminal case and
for qualified theft, the company had adequately 2. The act or omission must be voluntary
established the basis for the company’s loss of and/or willful on the part of the
confidence as a just cause to terminate. As employees.
opposed to the “proof beyond reasonable
doubt” standard of evidence in criminal cases, No act or omission shall be considered as
labor suits require only substantial evidence to analogous cause unless expressly specified in
prove the validity of the dismissal [Paulino v. the company rules and regulations or policies
NLRC, G.R. No. 176184 (2012)]. [Sec 5.2. (g), D.O. No. 147-15].
Betrayal By a Long-Time Employee Analogous means susceptible of comparison

Length of service is not a bargaining chip that with another either in general or in some
can simply be stacked against the employer. specific detail; or has a close relationship with
After all, an employer-employee relationship is the latter.
symbiotic where both parties benefit from
mutual loyalty and dedicated service, If an Other Causes
employer had treated his employees well, has 1. Abandonment
accorded him fairness and adequate 2. Courtesy resignation
compensation as determined by law, it is only 3. Change of ownership
fair to expect a long-time employee to return 4. Habitual absenteeism/tardiness
such fairness with at least some respect and 5. Poor performance
honesty. Thus, it may be said that betrayal by 6. Past offenses
a long-time employee is more insulting and 7. Habitual infractions
odious for a fair employer [Moya v. First Solid 8. Immorality
Rubber Industries, G.R. No. 184011 (2013)]. 9. Totality of infractions
10. Pregnancy out of wedlock
4. Commission of a Crime 11. Conviction/commission of a crime
12. Temporary “off-detail” or “floating
Requisites status”
1. There must be an act or omission
punishable or prohibited by law; and Abandonment
2. The act or omission was committed by It is the deliberate and unjustified refusal of an
the employee against the person of employee to resume his employment. It is a
the employer, his immediate family form of neglect of duty.
member, or his duly authorized
representative [Sec. 5.2(f), D.O. No. Requisites
147-15]. 1. Failure to report for work or absence
without valid or justifiable reason, and
The employer may validly dismiss for loss of 2. Clear intention to sever the employer-
trust and confidence an employee who employee relationship (more
commits an act of fraud prejudicial to the determinative factor and manifested in
interest of the employer. Neither a criminal overt acts).
prosecution nor a conviction beyond
reasonable doubt for the crime is a requisite for The burden to prove whether the employee
the validity of the dismissal [Concepcion v. abandoned his work rests on the employer
Mimex Import Corporation, G.R. No. 153569 [Protective Maximum Security Inc. v. Celso E.
(2012)]. Fuentes, G.R. No. 169303 (2015)].
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Absence must be accompanied by overt acts cause for dismissal only if it amounts to gross
unerringly pointing to the fact that the and habitual neglect of duties. Poor or
employee simply does not want to work unsatisfactory performance of an employee
anymore. The employer has the burden of does not necessarily mean he is guilty of gross
proof to show a deliberate and unjustified and habitual neglect of duty [Shipmanagement
refusal of the employee to resume employment Inc. v. Campo-Redondo, G.R. No. 199931
without any intention of returning [Tan Brothers (2015)].
Corp v. Escudero, G.R. No. 188711 (2013)].
Past Offenses
Courtesy Resignation Previous offenses may be used as a valid
Resignation per se means voluntary justification for dismissal only if the infractions
relinquishment of a position or office. Adding are related to the subsequent offense upon
the word ‘courtesy’ did not change the essence which the basis of termination is decreed
of the resignation [Batongbacal v. Associated [Century Canning Corporation v. Ramil, G.R.
Bank, G.R. No. 184517 (2013)]. No. 171630 (2010)].
Change of Ownership Habitual Infractions

A mere change in the equity composition of a A series of irregularities when put together may
corporation is neither just nor an authorized constitute serious misconduct, under which Art.
cause that would legally permit the dismissal of 297 of the Labor Code is a just cause for
the corporation’s employees en masse [SME dismissal [Gustilo v. Wyeth Phil Inc., G.R. No.
Bank Inc. v. De Guzman, G.R. No. 184517, 149629 (2004)].
186641 (2013)].
Immorality
Habitual Absenteeism/Tardiness DECS Order No. 92 provides that disgraceful
It is a form of neglect of duty. Lack of initiative, or immoral conduct can be used as a basis for
diligence and discipline to come to work on termination of employment [Santos, Jr. v.
time everyday exhibit the employee’s NLRC, G.R. No. 116795 (1998)].
deportment towards work. It is inimical to the
general productivity and business of the The act of engaging in extramarital affairs was
employer. This is especially true when the specifically provided for by the cooperative’s
tardiness and/or absenteeism occur frequently Personnel Policy as one of the grounds for
and repeatedly within an extensive period of termination of employment. The Board
time [RB Michael Press v. Galit, G.R. No. received complaints and petitions from the
153510 (2008)]. cooperative members for the removal of
Bandiola because of his immoral conduct,
However, there are instances when hence immorality (extramarital affair) justified
absenteeism is not sufficient to justify the termination of his employment [Alilem
termination. In the case of Cavite Apparel v. Credit Cooperative v. Bandila, Jr. G.R. No.
Michelle Marquez [G.R. No. 172044 (2013)], 173489 (2013)].
the SC ruled that though Michelle was guilty of
violating company rules on leaves of absences Standard of Morality
and discipline, the dismissal imposed on her It is public and secular, not religious. Whether
was unjustified under the circumstances. a conduct is considered disgraceful or immoral
Michelle had been employed with the employer should be made in accordance with the
for 6 years, with no derogatory record other prevailing norms of conduct, which as stated in
than the four absences without official leave, Leus, refer to those conducts which are
not to mention she had already been penalized proscribed because they are detrimental to
for the first three absences, the most serious conditions upon which depend the existence of
being a six-day suspension. and progress of human society.
Poor Performance The fact that a particular act does not conform
It is tantamount to inefficiency and to the traditional moral views of a certain
incompetence in the performance of official sectarian institution is insufficient to qualify the
duties. An unsatisfactory rating can be a just act as immoral unless it likewise does not
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conform to the public and secular standards. previous post until they are transferred to a new
More importantly, there must be substantial one.
evidence to establish premarital sexual
relations and pregnancy out of wedlock is When this Occurs
considered disgraceful or immoral [Capin- 1. Security agency’s clients decide not to
Cadiz v. Brent Hospital, G.R. No. 187417 renew their contracts with the agency,
(2016)]. resulting in a situation where the
available posts under its existing
Totality of Infractions contracts are less than the number of
The totality of infractions or the number of guards in its roster,
violations committed during the period of 2. Contracts stipulate that the client may
employment shall be considered in determining request the agency for replacement of
the penalty to be imposed upon an erring guards assigned to it even for want of
employee. Fitness for continued employment cause.
cannot be compartmentalized into tight little
cubicles of aspects of character, conduct and
ability separate and independent of each other. During such time, the security guard does
While it may be true that the petitioner was not receive any salary or financial
penalized for his previous infractions, this does assistance provided by law. It does not
not and should not mean that his employment constitute a dismissal, as the assignments
record would be wiped clean. After all, the primarily depend on contracts entered into
record of an employee is a relevant between security agencies and third
consideration in determining the penalty that parties, so as long as such status does not
should be meted out since an employee’s past continue beyond a reasonable time. When
misconduct and present behavior must be such status lasts for more than 6 months,
taken together in determining the proper the employee may be considered
imposable penalty [Merin v. NLRC, G.R. No. constructively dismissed [Salvaloza v.
171790 (2008)]. NLRC, G.R. No. 182086 (2010)].
Pregnancy Out of Wedlock Transfer/Reassignment of Work

When the law speaks of immoral or Jurisprudential guidelines
necessarily, disgraceful conduct, it pertains to 1. A transfer is a movement from one
public and secular morality. position to another of equivalent rank,
level or salary without break in the
Pre-marital sexual relations between two service or a lateral movement from one
consenting adults, who have no impediment to position to another of equivalent rank
marry each other, and consequently, or salary;
conceiving a child out of wedlock, gauged from 2. The employer has the inherent right to
a purely public and secular view of morality transfer or reassign an employee for
does NOT amount to an immoral conduct legitimate business purposes;
[Cheryl Leus v. St. Scholastica College 3. A transfer becomes unlawful where it is
Westgrove, G.R. No. 187226 (2015)]. motivated by discrimination or bad faith
or is effected as a form of punishment
Conviction/Commission of a Crime or is a demotion without sufficient
The charge of drug abuse within the company’s cause;
premises and during work hours constitutes 4. The employer must be able to show
serious misconduct which is a just cause for that the transfer is not unreasonable,
termination [Bughaw Jr. v. Treasure Island inconvenient or prejudicial to the
Industrial, G.R. No. 173151 (2008)]. employee [Rural Bank of Cantilan Inc
v. Julve, G.R. No. 169750 (2007)].
Temporary “Off-Detail” or “Floating
Status”
This is the period of time when security guards
are in between assignments or when they are
made to wait after being relieved from a
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b. Authorized Causes General Rule: In cases of installation of labor-
Also known as “Business-related Causes” saving devices, redundancy and retrenchment,
the Last-In, First-Out Rule shall apply.
The employer may also terminate the
employment of any employee due to: Exception: Employee volunteers to be
1. The installation of labor-saving separated from employment [Sec. 5.2(a), D.O.
devices; No. 147-15].
2. Redundancy;
3. Retrenchment to prevent losses; or 2. Redundancy
4. The closing or cessation of operation of Redundancy exists when the service capability
the establishment or undertaking not of the workforce is in excess of what is
due to serious loss [Art. 298]. reasonably needed to meet the demands of the
business enterprise.
Other Causes
1. Disease incurable in 6 months [Art. A position is redundant when it is superfluous
299] and superfluity of a position or positions could
2. Enforcement of union security clause in be the result of a number of factors such the
the CBA overhiring of workers, a decrease in the volume
3. Dismissal of union officers for the of business or dropping of a particular line or
conduct of an illegal strike; Dismissal of service previously manufactured or undertaken
union members for participating in the by the enterprise [Morales v. Metrobank, G.R.
commission of illegal acts in a strike No. 182475 (2012)].
[Art. 279 (a)]
4. Termination in conformity with existing Requisites
statute/qualification requirements 1. There must be superfluous positions or
services of employees;
2. The positions or services are in excess
1. Installation of Labor-Saving Devices of what is reasonably demanded by the
This refers to the installation of machinery to actual requirements of the enterprise to
effect efficiency and economy in the operate in an efficient and economical
employer’s method of production [Edge manner;
Apparel Inc v. NLRC, G.R. No. 121314 (1998)]. 3. There must be good faith in abolishing
redundant positions;
Requisites 4. There must be fair and reasonable
1. There must be introduction of criteria in selecting the employees to
machinery, equipment, or other be terminated; and
devices; 5. There must be adequate proof of
2. The introduction must be done in good redundancy such as but not limited to
faith; the new staffing pattern, feasibility
3. The purpose for such introduction must studies/proposal, on the viability of
be valid such as to save on cost, newly created positions, job description
enhance efficiency and other justifiable and the approval by the management
economic reasons; of the restructuring [Sec. 5.4(b), D.O.
4. There is no other option available to No. 147-15].
employer than the introduction of
machinery, equipment or device and In implementing a redundancy program, the
the consequent termination of employer is required to adopt fair and
employment of those affected thereby; reasonable criteria taking into consideration
and factors such as (a) preferred status, (b)
5. There must be fair and reasonable efficiency, and (c) seniority among others
criteria in selecting employees to be [Morales v. Metrobank, G.R. No. 182475
terminated. (2012)].
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3. Retrenchment to Prevent Serious Loss 3. There is no other option available to
the employer except to close or cease
Requisites operations [Sec 5.4(d), DO No. 147-
1. The retrenchment is reasonably 15].
necessary and likely to prevent
business losses; Unless the closing is for the purpose of
2. The losses, if already incurred, are not circumventing the provisions of this Title [Art.
merely de minimis, but substantial, 298].
serious, actual and real, or if only
expected are reasonably imminent as By serving a written notice on the workers and
perceived objectively and in good faith the Ministry of Labor and Employment at least
by the employer; 1 month before the intended date thereof [Art.
3. The expected or actual losses must be 298].
proved by sufficient and convincing
evidence; Guidelines
4. The retrenchment must be in good faith 1. Closure or cessation of operations of
for the advancement of its interest and establishment or undertaking may
not to defeat or circumvent the either be partial or total.
employees’ right to security of tenure; 2. Closure or cessation of operations of
and establishment or undertaking may or
5. There must be fair and reasonable may not be due to serious business
criteria in ascertaining who would be losses or financial reverses. In both
dismissed and would be retained instances, proof must be shown that:
among the employees such as status, 1. It was done in good faith to
efficiency, seniority, physical fitness, advance the employer's
age and financial hardship for certain interest and not for the purpose
workers [Sec. 5.4(c), D.O. No. 147-15]. of defeating or circumventing
the rights of employees under
The employer bears the burden of proving the the law or a valid agreement;
existence of the imminence of substantial and
losses with clear and satisfactory evidence that 2. A written notice on the affected
there are legitimate business reasons justifying employees and the DOLE is
a retrenchment [Mount Carmel College served at least 1 month before
Employees Union v. Mount Carmel College, the intended date of
G.R. No. 187621 (2014)]. termination of employment.
3. The employer can lawfully close shop
Two Kinds of Losses Justifying even if not due to serious business
Retrenchment losses or financial reverses but
a. Incurred losses - substantial, serious separation pay, which is equivalent to
actual and real at least one month pay as provided for
b. Expected losses - reasonably imminent by Article 283 of the Labor Code, as
[Sanoh Fulton Phils v. Bernardo amended, must be given to all the
Tagohoy, G.R. No. 187214 (2013)]. affected employees.
4. If the closure or cessation of operations
4. Closing or Cessation of Business Not of establishment or undertaking is due
Due to Serious Loss to serious business losses or financial
reverses, the employer must prove
Requisites such allegation in order to avoid the
1. There must be a decision to close or payment of separation pay. Otherwise,
cease operation of the enterprise by the affected employees are entitled to
the management; separation pay.
2. The decision was made in good faith; 5. The burden of proving compliance with
and all the above-stated falls upon the
employer [Manila Polo Club
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Employees’ Union v. Manila Polo Club,
employees shareholders
G.R. No. 172846 (2013)].
affected by are not
the sale, nor entitled to
Closure of Department is it liable for lawfully
The closure of a department or division of a the payment dismiss
company constitutes retrenchment by, and not of their corporate
closure of, the company itself [Waterfront Cebu claims. The employees
City Hotel v. Jimenez, G.R. No. 174214 most that it absent a just
(2012)]. may do, for or authorized
reasons of cause [SME
Corporate Acquisitions public policy Bank v. De
Asset Sales Stock Sales and social Guzman,
justice, is to G.R.
give No.184517
Corporate The preference (2013)]
entity sells individual or to the
all or corporate qualified
substantially shareholders separated
all of its sell a personnel of
Sale the selling
assets to controlling
another lock of stock firm.
entity. to new or
existing
shareholders. Criteria in Selecting Employees for
Dismissal
1. Preferred status (e.g. temporary,
Seller in A shift in the casual or regular employees)
good faith is composition 2. Efficiency
authorized to of its 3. Physical fitness
dismiss the shareholders 4. Age
affected will not affect 5. Financial hardship
employees, its existence 6. Seniority [Asian Alcohol Corp v.
but is liable and NLRC, G.R. No. 131108 (1999)].
for the continuity.
payment of
separation Notwithstandi
pay. ng the stock
Obligations
sale, the
of Seller
corporation
continues to
be the
employer of
its people
and
continues to
be liable for
the payment
of their
wages.
The buyer in The

Obligation good faith is corporation
of Buyer not obliged or its new
to absorb the majority
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Summary
Retrenchment Redundancy Closure Closure
due to
serious
Reduction of Service of The business
personnel employee is in reversal losses, no
usually due to excess of what of the separatio
poor financial is required by fortune of n pay
returns so as to an enterprise the [Manila
cut down on employer Polo Club
costs of whereby Employee
operations in there is a s union v.
terms of wages complete Manila
and salaries cessation Polo
of Club,
business G.R. No.
operation 172846
s and/or (2013)].
actual
locking-
up of the 5. Disease
doors of
the An employer may terminate the services of an
establish employee:
ment, 1. Who has been found to be suffering
usually from any disease; and
due to 2. Whose continued employment is
financial prohibited by law or is prejudicial to his
losses. health as well as the health of his co-
employees [Art. 299].
To avoid or To save To Separation Pay
minimize production prevent An employee terminated on the ground of
business costs. further disease shall be paid separation pay
losses. financial equivalent to at least 1 month salary or to ½
drain month salary for every year of service,
upon the whichever is greater [Art. 299].
employer.
Note: A fraction of at least six (6) months being
1 month or ½ 1 month or 1 Closure considered as one (1) whole year.
month pay per month pay per not due to
year of service year of service serious Requisites
separation pay separation business 1. The employee must be suffering from a
(whichever is pay losses, 1 disease which cannot be cured within 6
higher) (whichever is month or month, even with proper medical
higher) ½ month treatment;
pay per 2. Continued employment is either:
year of 1. Prohibited by law or
service 2. Prejudicial to his health or
separatio 3. Prejudicial to the health of his
n pay co-employees; and
(whichev 3. A certification to that effect issued by a
er is competent public health authority,
higher). which must state that the disease is of
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such nature or at such a stage that it termination, in that it is analogous to a
cannot be cured within a period of six “wrongful act or omission out of one's own
(6) months even with proper medical volition” [Slord Development Corp. v. Noya,
treatment [Sec. 8, Rule I, Book VI; G.R. No. 232687 (2019)].
Crayons Processing v. Pula, G.R. No.
167727 (2007), Sec. 5.2(f), D.O. 147- 7. Dismissal of Union Officers for the
15]. Conduct of an Illegal Strike; Dismissal of
Union Members for Participating in the
Burden of Proof with Employer commission of Illegal Acts in a Strike
The burden of proof falls upon the employer to
establish the requisites. In the absence of such Any union officer who knowingly participates in
certification, the dismissal must be necessarily an illegal strike, and any worker or union officer
declared illegal. who knowingly participates in the commission
of illegal acts during a strike may be declared
Prior Certification Required to have lost employment status [Art. 279 (a)].
It is only where there is a prior certification from
a competent public authority that the disease 8. Termination in Conformity with
afflicting the employee sought to be dismissed Existing Statute/ Qualification
is of such nature or at such stage that it cannot Requirements
be cured within 6 months even with proper
medical treatment that the latter could be While the right of workers to security of tenure
validly terminated from his job [Crayons is guaranteed by the Constitution, its exercise
Processing v. Pula, G.R. No. 167727 (2007)]. may be reasonably regulated pursuant to the
police powers of the State to safeguard health,
Note: If the disease or ailment can be cured morals, peace, education, order, safety, and
within the period of 6 months, the employer the general welfare of the people.
shall not terminate the employee but shall ask
the employee to take a leave of absence. The Consequently, persons who desire to engage
employer shall reinstate such employee to his in the learned professions requiring scientific or
former position immediately upon the technical knowledge may be required to take
restoration of his health [Sec. 8, Rule I, Book an examination as a prerequisite to engaging
VI]. in their chosen careers [St. Luke's Medical
Center Employees Assn v. NLRC, G.R. No.
6. Enforcement of Union Security Clause 162053 (2007)].
in CBA
2. Procedural Due Process
The law authorizes the enforcement of union
security clauses, provided it is not
The employer shall:
characterized by arbitrariness and always with
1. Furnish the worker, whose
due process.
employment is sought to be
terminated, a written notice containing
In terminating the employment of an employee
a statement of the causes for
by enforcing the Union Security Clause, the
termination; and
employer needs only to determine and prove
2. Afford the latter ample opportunity to
that:
be heard and to defend himself, with
1. The union security clause is applicable
the assistance of his representative if
2. The union is requesting for the
he so desires, in accordance with
enforcement of the union security
company rules and regulations
provision in the CBA
promulgated pursuant to guidelines set
3. There is sufficient evidence to support
by the DOLE [Art. 292 (b)].
the union’s decision to expel the
employee from the union or company
Any decision taken by the employer shall be
without prejudice to the right of the worker to
As a result of enforcing a union security clause
contest the validity or legality of his dismissal
falls under the category of just causes for
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by filing a complaint with the regional branch of 2. The employer must give the employee
the National Labor Relations Commission [Art. an opportunity to be heard. This can be
292 (b)]. done either through:
1. Position paper or
Procedural Due Process - manner in which 2. Clarificatory hearing.
the dismissal was effected. 3. The employee MAY also be assisted
1. The first written notice to be served on by a representative or counsel.
the employees should contain the 4. The employer must give another
specific causes or grounds for written notice apprising the employee
termination against them, and a of its findings and the penalty to be
directive that the employees are given imposed against the employee, if any.
the opportunity to submit their written
explanation within a reasonable period. In labor cases, these requisites meet the
2. The requirement of a hearing is constitutional requirement of procedural due
complied with as long as there was an process, which contemplates, “notice and
opportunity to be heard, and not opportunity to be heard before judgment is
necessarily an actual hearing was rendered affecting one’s person or property”
conducted. [Montinola v. PAL, G.R. No. 198656 (2014)].
3. After determining that termination of
employment is justified, the employers a. Two-Notice Rule
shall serve the employees a written The employer has the burden of proving that a
notice of termination indicating that: dismissed worker has been served two notices:
1. All circumstances involving the 1. First written notice: specifying the
charge against the employee ground(s) for termination and giving the
have been considered, and employee the reasonable opportunity
2. The grounds have been within which to explain his side.
established to justify the 2. Second written notice: indicating that
severance of the employment upon due consideration of all
[Inguillo v. First Phil Scales, circumstances, grounds have been
G.R. No. 165407 (2019)]. established to justify his termination.
The employee must be afforded an opportunity Reasonable opportunity for the first written
to be heard and defend himself [Fujitsu notice should be construed at least 5 calendar
Computer Products Corporation of the Phil v. days from receipt of the notice.
CA, G.R. No. 158232 (2005)].
Ratio: to give the employee an opportunity to
The employer may not substitute the required study the accusation against him, consult a
prior notice and opportunity to be heard with union official or lawyer, gather data and
the mere payment of 30 day’s salary [PNB v. evidence, and decide on his defenses [King of
Cabansag, G.R. No. 157010 (2005)]. Kings Transport v. Mamac, G.R. No. 166208
(2007); Puncia v. Toyota Shaw/Pasig, G.R. No.
Right to Counsel 214399 (2016)].
The right to counsel, a very basic requirement
of substantive due process, has to be Contents of First Notice
observed. Indeed the rights to counsel and to 1. Specific causes or grounds for
due process of law are two of the fundamental termination against the employee
rights guaranteed by the 1987 Constitution to 2. Directive that the employee is given the
any person under investigation, be the opportunity to submit his written
proceeding administrative, civil or criminal explanation within a “reasonable
[Salaw v. NLRC, G.R. No. 90786 (1991)]. period” or every kind of assistance that
The procedure can be summarized as follows: management must accord to enable
1. Employer must furnish the employee him to prepare adequately for his
with a written notice containing the defense. This should be construed as a
cause for termination. period of at least 5 calendar days from
receipt of notice.
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3. Detailed narration of the facts and The Test of Constructive Dismissal
circumstances that will serve as basis Whether a reasonable person in the
for the charge against the employees. employee’s position would have felt compelled
A general description of the charge will to give up his position under the circumstances
not suffice [Unilever v. Rivera, G.R. No. [Tuazon v. Bank of Commerce, G.R. No.
201701 (2013)]. 192076 (2012)].
4. The company rules, if any, violated
and/or the grounds under Art. 288 It is an act amounting to dismissal but made to
being charged against the employee appear as if it were not. Constructive dismissal
[United Tourist Promotions v. Kemplin, is, therefore, a dismissal in disguise. As such,
G.R. No. 205453 (2014)]. the law recognizes and resolves this situation
in favor of employees in order to protect their
Contents of Second Notice rights and interests from the coercive acts of
1. All circumstances involving the charge the employer. In fact, the employee who is
against the employee considered constructively dismissed may be allowed to
2. Grounds established to justify the keep on coming to work [McMer Corp., Inc. v.
severance of employment [United NLRC, G.R. No. 193421 (2014)].
Tourist Promotions v. Kemplin, G.R.
No. 205453 (2014)]. Unlawful withholding of wages for a long time
could be tantamount to an illegal constructive
Pre-Dismissal Notice Grounds dismissal [Gilles v. CA, G.R. No. 149273
An employee may be dismissed only if the (2009)].
grounds mentioned in the pre-dismissal notice
were the ones cited for termination of A bona fide suspension of work is allowed for
employment [Erector Advertising Sign Groups as long as it does not exceed 6 months.
v. Cloma, G.R. No. 167218 (2010)]. Failure of the employer to recall the suspended
employees in the 6-month period amounts to
3. Illegal Dismissal, Reliefs Therefrom constructive dismissal [SKM Art. Craft Corp. v.
Bauca, G.R. No. 171282 (2013)].
Kinds
For a transfer to be a valid exercise of
No Just or Authorized Cause management prerogative:
For the dismissal of an employee to be valid, 1. There is no demotion in rank;
the dismissal must be for any of the causes 2. There is no diminution of salary,
provided for in Art. 297-299. benefits, and other privileges;
3. The action is not motivated by
An employer who dismisses an employee discrimination, made in bad faith, or
without just or authorized cause is liable for: effected as a form of punishment or
1. Reinstatement or separation pay if demotion without sufficient cause.
reinstatement is not possible; and
2. Full backwages. Otherwise, the transfer could be considered as
constructive dismissal [The Philippine
Constructive Dismissal American Life and General Insurance Co. v.
Constructive dismissal is cessation of work Angelita S. Gramaje, G.R. No. 156963 (2004)].
because continued employment is either:
1. rendered impossible, unreasonable or Forced Resignation is Constructive
unlikely; Dismissal
2. when there is a demotion in rank or Mere allegations of threat or force do not
diminution in pay or both; or constitute evidence to support a finding of
3. when a clear discrimination, forced resignation.
insensibility, or disdain by an employer
becomes unbearable to the employee
[Dusit Hotel Nikko v. NUHWRAIN-Dusit
Hotel Chapter, G.R. No. 160391
(2005)].
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In order for intimidation to vitiate consent, the Reliefs from Illegal Dismissal
following requisites must concur:
1. that the intimidation caused the The following reliefs are cumulative and not
consent to be given; alternative:
2. that the threatened act be unjust or 1. Reinstatement
unlawful; 2. Options Given to Employers
3. that the threat be real or serious, there 1. Actually reinstate the
being evident disproportion between dismissed employees or,
the evil and the resistance which all 2. Constructively reinstate them
men can offer, leading to the choice of in the payroll.
doing the act which is forced on the 3. Backwages
person to do as the lesser evil; AND 4. Damages and Attorney’s Fees
4. that it produces a well-grounded fear 5. Separation Pay
from the fact that the person from
whom it comes has the necessary a. Reinstatement
means or ability to inflict the threatened
injury to his person or property Reinstatement means restoration to a state or
[Mandapat v. Add Force Personnel, condition from which one had been removed or
G.R. No. 180285 (2010)]. separated. The person reinstated assumes the
position he had occupied prior to his dismissal
Burden of Proof [Asian Terminals, Inc. v. Villanueva, G.R. No.
The burden of proving that the termination was 143219 (2006)].
for a valid or authorized cause shall rest on the
employer [Art. 292 (b)]. General Rule: Reinstatement and backwages
Exceptions:
In illegal dismissal cases, the onus of proving a. Separation pay
that the employee was not dismissed or, if b. Closure of business [Retuya v. Hon.
dismissed, that the dismissal was not illegal, Dumarpa, G.R. No. 148848 (2003)]
rests on the employer, failure to discharge c. Economic business conditions [Union
which would mean that the dismissal is not of Supervisors v. Secretary of Labor,
justified and, therefore, illegal [Macasero v. G.R. No. L-39889 (1981)]
Southern Industrial Gases Philippines, G.R. d. Employee’s unsuitability [Divine Word
No. 198656 (2014)]. High School v. NLRC, G.R. No. 72207
(1986)]
Degree of Proof e. Employee’s retirement/ overage [New
In labor cases, as in other administrative Philippine Skylanders, Inc. v. Dakila,
proceedings, substantial evidence is required G.R. No. 199547 (2012)]
and it is such relevant evidence as a f. Antipathy and antagonism [Wensha
reasonable mind might accept as adequate to Spa Center v. Yung, G.R. No. 185122
support a conclusion [Andrada v. Agemar (2010)]
Manning Agency, G.R. No. 194758 (2012)]. g. Job with a totally different nature [DUP
Sound Phils. v. CA, G.R. No. 168317
Substantial evidence is necessary for an (2011)]
employer to effectuate any dismissal. h. Long passage of time
Uncorroborated assertions and accusations by i. Inimical to the employer's interest
the employer do not suffice; otherwise the j. When supervening facts have
constitutional guarantee of security of tenure of transpired which make execution on
the employee would be jeopardized [Kulas that score unjust or inequitable or, to an
Ideas & Creations et. al. v. Alcoseba & Arao increasing extent [Emeritus Security &
Arao, G.R. No. 180123 (2010)]. Maintenance Systems, Inc. v. Dailig,
G.R. No. 204761 (2014)]
Prescription Period
An action for reinstatement by reason of illegal
dismissal is one based on an injury, which may
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be brought within 4 years from the time of execution of awards during pendency of the
dismissal [Art. 1146, Civil Code]. appeal. However, it expressly disallows
restitution of wages paid due to reinstatement
In any event, the decision of the Labor Arbiter pending appeal.
reinstating a dismissed or separated
employee, insofar as the reinstatement aspect b. Backwages
is concerned, shall immediately be executory,
pending appeal. The employee shall either be Definition
admitted back to work under the same terms Backwages are:
and conditions prevailing prior to his dismissal 1. Earnings lost by a worker due to his
or separation or, at the option of the employer, illegal dismissal;
merely reinstated in the payroll. The posting of 2. A form of relief that restores the income
a bond by the employer shall not stay the lost by reason of such unlawful
execution for reinstatement provided herein dismissal;
[Art. 229]. 3. In the nature of a command to the
employer to make a public reparation
Options Given to Employers for illegally dismissing an employee.
a. Actually reinstate the dismissed 1. It is not private compensation or
employees or, damages;
b. Constructively reinstate them in the 2. Nor is it a redress of a private right [St.
payroll. Theresa's School of Novaliches
Foundation v. NLRC, G.R. No. 122955
Either way, this must be done immediately (1998)].
upon the filing of their appeal, without need of
any executory writ. Backwages and reinstatement are two reliefs
that should be given to an illegally dismissed
If the order of reinstatement of the Labor Arbiter employee. They are separate and distinct from
is reversed on appeal, it is obligatory on the each other.
part of the employer to reinstate and pay the
wages of the dismissed employee during the An illegally dismissed employee is entitled to
period of appeal until reversal by the higher (1) either reinstatement, if viable, or separation
court. pay if reinstatement is no longer viable, and (2)
backwages [Aurora Land Projects Corp. v.
The Labor Arbiter's order of reinstatement is NLRC, G.R. No. 114733 (1997)].
immediately executory and the employer has to
either re-admit them to work under the same Effect of Failure to Order Backwages
terms and conditions prevailing prior to their A “plain error” which may be rectified, even if
dismissal, or to reinstate them in the payroll, employee did not bring an appeal regarding the
and that failing to exercise the options in the matter [Aurora Land Projects Corp. v. NLRC,
alternative, employer must pay the employee's supra].
salaries [Magana v. Medicard Philippines, Inc.,
G.R. No. 174833 (2010)]. Extent of Entitlement
General Rule: An illegally dismissed employee
No Refund Doctrine is entitled to full backwages.
An employee cannot be compelled to Exceptions:
reimburse the salaries and wages he received 1. The Court awarded limited backwages
during the pendency of his appeal, where the employee was illegally
notwithstanding the reversal by the NLRC of dismissed but the employer was found
the LA's order of reinstatement [College of the to be in good faith [San Miguel
Immaculate Conception v. NLRC, G.R. No. Corporation v. Javate, Jr., G.R. No. L-
167563 (2010)]. 54244 (1992)];
2. Delay of the EE in filing the case for
Note: However, Rule XI, Sec. 14 of the 2011 illegal dismissal [Mercury Drug Co.,
NLRC Rules of Procedure provide for Inc. v. CIR, supra].
restitution of amounts paid pursuant to
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Computation of Backwages Note that according to Nacar v. Gallery
Full backwages means exactly that, i.e., Frames, when the judgment of the court
without deducting from backwages the awarding a sum of money becomes final and
earnings derived elsewhere by the concerned executory, the rate of legal interest … shall be
employee during the period of his illegal 6% per annum from such finality until its
dismissal [Bustamante v. NLRC, G.R. No. satisfaction, this interim period being deemed
111651 (1996)]. to be by then an equivalent to a forbearance of
credit [Nacar v. Gallery Frames, G.R. No.
The formula of awarding reasonable net 189871 (2013)].
backwages without deduction or
qualification relieves the employees from c. Separation Pay, Doctrine of Strained
proving or disproving their earnings during their Relations
lay-off and the employers from submitting [Arts. 289 & 290; DOLE Handbook on Worker’s
counterproofs, and obviates the twin evils of: Statutory Monetary Benefits (2018)]
1. Idleness on the part of the employee Separation pay is defined as the amount that
who would "with folded arms, remain an employee receives at the time of his
inactive in the expectation that a severance from the service and is designed to
windfall would come to him" [Itogon provide the employee with the wherewithal
Suyoc Mines, Inc. v. Sangilo-Itogon during the period that he is looking for another
Workers Union, G.R. No. L-24189 employment [A’ Prime Security Services v.
(1968), as cited in Diwa ng Pagkakaisa NLRC, G.R. No. 107320 (1993)].
v. Filtex International Corp., G.R. No.
23960-61 (1972)]; and Coverage
2. Attrition and protracted delay in
satisfying such award on the part of General Rule:
unscrupulous employers who have
seized upon the further proceedings to Cause for Entitlement
determine the actual earnings of the Termination
wrongfully dismissed or laid-off
employees [See La Campana Food Art. 288: Termination None
Products, Inc. v. CIR, G.R. No. L- by Employer:
27907 (1969); and Kaisahan ng Mga a. Serious
Manggagawa v. La Campana Food misconduct or
Products, Inc., G.R. No. L-30798 willful
(1970)]. disobedience
of lawful
The salary base properly used should be the orders
basic salary rate at the time of dismissal plus b. Gross and
the regular allowances; allowances include: habitual
1. Emergency cost of living allowances neglect of
(ECOLA), transportation allowances, duties
13th month pay [Paramount Vinyl c. Fraud or willful
Product Corp. v. NLRC, G.R. No. breach of trust
81200 (1990)]; d. Commission
2. Also included are vacation leaves, of a crime
service incentive leaves, and sick against
leaves. employer or
immediate
The effects of extraordinary inflation are not to member of his
be applied without an official declaration family or
thereof by competent authorities [Lantion v. representative
NLRC, G.R. No. 82028 (1990)]. e. Analogous
causes
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[Phimco Industries v. NLRC, G.R. No. 118041
Cause for
Entitlement (1997); Hinatuan Mining Corp v. NLRC, G.R.
Termination
No. 117394 (1997) cited in JPL Marketing
Promotions v. CA, G.R. No. 151966 (2005)]
Art. 289: Installation of Equivalent to at
labor-saving devices least 1 month pay or Amount
or redundancy 1 month pay for
every year of One-Half (½) Month Pay per Year of Service
service, whichever An employee is entitled to receive separation
is higher pay equivalent to ½ month pay for every year
of service, a fraction of at least six (6) months
Art. 289: Equivalent to at being considered as one whole year, if his/her
Retrenchment to least 1 month pay or separation from the service is due to any of the
prevent losses or ½ month pay for following authorized causes:
closure or cessations every year of 1. Retrenchment to prevent losses (i.e.
of operations of service*, whichever reduction of personnel effected by
establishments or is higher management to prevent losses) [Art.
undertaking not due to 298];
serious business 2. Closure or cessation of operation of an
losses or financial establishment not due to serious
reverses losses or financial reverses [Art. 298];
3. When the EE is suffering from a
disease not curable within a period of
Art. 290: Disease Equivalent to at six (6) months and his/her continued
when continued least 1 month pay or employment is prejudicial to his/her
employment is ½ month pay for health or to the health of his/her co-
prohibited by law or is every year of employees [Art. 299]; and,
prejudicial to his service*, whichever 4. Lack of service assignment of security
health or health of co- is higher guard for a continuous period of six (6)
employees months [D.O. 150, s. 2016].
Art. 291: Termination None In no case will an employee get less than one
by employee whether (1) month separation pay if the separation is
with or without just due to the above stated causes [DOLE
cause Handbook on Workers’ Statutory Monetary
Benefits, 2018 ed.].
*A fraction of at least 6 months shall be One-Month Pay per Year of Service
considered 1 whole year An employee is entitled to separation pay
equivalent to his/her one-month pay for every
year of service, a fraction of at least 6 months
Exceptions: Considerations of equity as in being considered as one whole year, if his/her
the cases of Filipro, Inc. v. NLRC [G.R. No. separation from service is due to any of the
70546 (1986)]; Metro Drug Corp. v. NLRC following:
[G.R. No. 72248 (1986)]; Engineering 1. Installation by employer of labor-saving
Equipment, Inc. v. NLRC [G.R. No. L-59221 devices;
(1984)]; and San Miguel Corp v. NLRC [G.R. 2. Redundancy, as when the position of
No. 80774 (1988)] [PLDT v. NLRC, G.R. No. the employee has been found to be
80609 (1988)]. excessive or unnecessary in the
operation of the enterprise;
An employee who voluntarily resigns is not 3. Impossible reinstatement of the
entitled to separation pay unless stipulated in employee to his/her former position or
the employment contract, or the collective to a substantially equivalent position for
bargaining agreement, or is sanctioned by reasons not attributable to the fault of
established practice or policy of the employer
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the employer [Gaco v. NLRC, G.R. No. b. in a manner oppressive to labor; or in a
104690 (1994)]; manner contrary to morals, good
4. Lack of service assignment of security customs, or public policy [Montinola v.
guard by reason of age [D.O. 150, s. PAL, G.R. No. 198656 (2014)].
2016; DOLE Handbook on Workers’
Statutory Monetary Benefits, 2018 ed.]. In labor cases, the court may award exemplary
damages "if the dismissal was effected in a
Notice of Termination wanton, oppressive or malevolent manner"
The employer may terminate the employment [Garcia v. NLRC, G.R. No. 110518 (1994)].
of any employee due to the above-mentioned
authorized causes by serving a written notice e. Attorneys’ Fees
on the employee and the DOLE through its
regional office having jurisdiction over the In cases of unlawful withholding of wages: the
place of business at least 1 month before the culpable party may be assessed attorney’s
intended date thereof [DOLE Handbook on fees.
Workers’ Statutory Monetary Benefits, 2018
ed.]. Amount: equivalent to 10% of the amount of
wages recovered.
Basis of Separation Pay
The computation of separation pay of an It shall be unlawful for any person to demand
employee shall be based on his/her latest or accept, in any judicial or administrative
salary rate [DOLE Handbook on Workers’ proceedings for the recovery of wages,
Statutory Monetary Benefits, 2018 ed.]. attorney’s fees which exceed 10% percent of
the amount of wages recovered [Art. 111, Civil
Inclusion of Regular Allowance in the Code].
Computation
In the computation of separation pay, it would General Rule: attorney's fees and expenses of
be error not to integrate the allowance with the litigation, other than judicial costs, cannot be
basic salary. The salary base properly used in recovered.
computing the separation pay should include
not just the basic salary but also the regular Exception: stipulation to the contrary xxx in
allowances that an employee has been actions for the recovery of wages of household
receiving [Planters’ Products, Inc. v. NLRC, helpers, laborers and skilled workers [Art.
G.R. No. 78524 (1989); DOLE Handbook on 2208(7), Civil Code].
Workers’ Statutory Monetary Benefits, 2018
ed.]. f. Liabilities of Corporate Officers
Non-Taxable Corporate Officers and Directors and

In case of separation of an official or employee Partners Solidarily Liable
from the service of the employer due to death, If the recruitment/placement agency is a
sickness or other physical disability or for any juridical being, the corporate officers and
cause beyond the control of the said official or directors and partners as the case may be,
employee, any amount received by him or by shall be joint and severally liable with the
his heirs from the employer as a consequence corporation or partnership for the claims and
of such separation shall likewise be exempt damages [Sec. 10, RA 8042 as amended].
from tax [Last proviso of par. 1, Sec. 1, RA
4917]. g. Burden of Proof
d. Damages Summary on Burden of Proof
1. Existence of ER-EE Relationship:
The employee is entitled to moral damages Employee
when the employer acted: 2. Fact of dismissal: Employee
a. in bad faith or fraud; 3. Validity of Dismissal: Employer
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EE has Burden of Proving Fact of C. Termination by Employee
Employment and of Dismissal
Before a case for illegal dismissal can prosper,
an employer-employee relationship must first 1. Resignation Versus Constructive
be established by the employee [Javier v. Fly Dismissal
Ace Corp., G.R. No. 192558 (2012)].
Definition of Resignation
The employee must first establish by Resignation is the voluntary act of an employee
substantial evidence the fact of his dismissal who finds himself in a situation where he
from service. If there is no dismissal, then there believes that personal reasons cannot be
can be no question as to the legality or illegality sacrificed in favor of the exigency of the
thereof [MZR Industries v. Colambot, G.R. No. service, such that he has no other choice but to
179001 (2013)]. disassociate himself from his employment
[Cervantes v. PAL Maritime Corp., G.R. No.
ER has Burden of Proving Valid Dismissal 175209 (2013)].
Unsubstantiated accusations or baseless
conclusions of the employer are insufficient To constitute a resignation:
legal justifications to dismiss an employee. The 1. It must be unconditional and with the
unflinching rule in illegal dismissal cases is that intent to operate as such;
the employer bears the burden of proof 2. There must be an intention to
[Garza v. Coca-Cola Bottlers Philippines, Inc., relinquish a portion of the term of office
G.R. No. 180972 (2014)]. accompanied by an act of
relinquishment.
The fact that the employee signified his desire

to resume his work when he went back to
AZCOR after recuperating from his illness, and
actively pursued his case for illegal dismissal
before the labor courts when he was refused
admission by his employer, negated any
intention on his part to relinquish his job at
AZCOR [Azcor Manufacturing Inc. v. NLRC,
G.R. No. 117963 (1999)].
Well-entrenched is the rule that resignation is

inconsistent with the filing of a complaint for
illegal dismissal [Blue Angel Manpower and
Security Services Inc. v. Court of Appeals, G.R.
No. 161196 (2008)].
The rule requiring an employee to stay or

complete the 30-day period prior to the
effectivity of his resignation becomes
discretionary on the part of management, as an
employee who intends to resign may be
allowed a shorter period before his resignation
becomes effective [Hechanova Bugay Vilchez
Lawyers v. Matorre, G.R. No. 198261 (2013)].
Requisites of a Valid Resignation

1. Voluntary, unconditional, and
intentionally to relinquish a portion of a
term of employment;
2. Accompanied by an act of
relinquishment.
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Intent to Relinquish 2. Abandonment
As the intent to relinquish must concur with the
overt act of relinquishment, the acts of the It is the deliberate and unjustified refusal of an
employee before and after the alleged employee to resume his employment. It is a
resignation must be considered in determining form of neglect of duty.
whether he or she, in fact, intended to sever his
or her employment [Saudi Arabian Airlines v. Requisites
Rebesencio, G.R. No. 198587 (2015)]. 1. Failure to report for work or absence
without valid or justifiable reason, and
Resignation is voluntary when the act of 2. Clear intention to sever the employer-
resignation and the intention to resign concur. employee relationship (more
If the resignation was done because of determinative factor and manifested in
oppressive conditions set by the employer, overt acts).
such is tantamount to constructive dismissal
[Saudi Arabian Airlines v. Rebesencio, G.R. The burden to prove whether the employee
No. 198587 (2015)]. abandoned his work rests on the employer
[Protective Maximum Security Inc. v. Celso E.
Constructive Fuentes, G.R. No. 169303 (2015)].
Resignation
Dismissal
Absence must be accompanied by overt acts
unerringly pointing to the fact that the
Voluntary act of an Involuntary or forced employee simply does not want to work
employee who is in a resignation due to the
anymore. The employer has the burden of
situation where one harsh, hostile, and
proof to show a deliberate and unjustified
believes that personal unfavorable
reasons cannot be conditions set by the
refusal of the employee to resume employment
sacrificed in favor of employer. It is without any intention of returning [Tan Brothers
the exigency of the essentially quitting or Corp v. Escudero, G.R. No. 188711 (2013)].
service. It is a formal cessation of work
pronouncement or because continued
relinquishment of an employment is
office, with the rendered impossible,
intention of unreasonable or
relinquishing the unlikely; when there is
office accompanied a demotion in rank or
by the act of a diminution of pay
relinquishment [Gan and other benefits. It
v. Galderma exists if an act of clear
Philippines, Inc.] discrimination,
insensibility, or
disdain by an
employer becomes so
unbearable on the
part of the employee
that it could foreclose
any choice by him
except to forego his
continued
employment [Gan v.
Galderma Philippines,
Inc.]
Valid termination of Illegal dismissal

employment by the
employee.
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D. Preventive Suspension b. The worker shall not be bound
to reimburse the amount paid
Definition to him during the extension if
Preventive suspension is a disciplinary the employer decides, after
measure for the protection of the company’s completion of the hearing, to
property pending investigation of any alleged dismiss the worker [Sec. 9,
malfeasance or misfeasance committed by the Rule XXIII, Book V, IRR].
employee [Gatbonton v. NLRC, G.R. No.
146779 (2006)]. Note: The portion on preventive suspension
under the cited Book V, Rule XXIII, Secs. 8-9
It is important to note that preventive are no longer in existence. The current IRR of
suspension is not a penalty, but a part of a the Labor Code (as of 2020) has replaced Rule
process to investigate a questioned action of XXIII with “Rule XXIII Contempt” and does not
an employee. Preventive suspension does not contain provisions on preventive suspension.
in itself prove that the employer already finds It is curious to note, however, that in a 2018
the employee guilty of the charges he is asked case [Consolidated Building Maintenance, Inc.
to answer and explain [Soriano v. NLRC et. al., v. Asprec, Jr., G.R. No. 217301 (2018)], the
G.R. No. 75510 (1987)]. Court stated that “preventive suspension shall
not last for more than 30 days” however, in
When Imposed stating so, the Court cited an OLD provision of
Preventive suspension may be legally imposed the IRR of the Labor Code. In fact, it is a
on employee whose alleged violation is the recurring theme in a number of more recent
subject of an investigation. cases that the Court would cite old provisions
of the IRR of the labor code which have long
The employer may place the worker concerned been amended or repealed.
under preventive suspension if his continued
employment poses a serious and imminent When Preventive Suspension is Deemed
threat to the life or property of the employer or Dismissal
of his co-workers. When, however, it is When preventive suspension exceeds the
determined that there is no sufficient basis to maximum period allowed without reinstating
justify an employee’s preventive suspension, the employee either by actual or payroll
the latter is entitled to the payment of salaries reinstatement or when preventive suspension
during the time of preventive suspension” is for an indefinite period, only then will
[Gatbonton v. NLRC, G.R. No. 146779 (2006)]. constructive dismissal set in.
Purpose Not Entitled to Pay

The purpose of his suspension is to prevent Employee placed under preventive suspension
him from causing harm or injury to the company is not entitled to the payment of wages.
as well as to his fellow employees [Sec. 8, Rule However, if the basis for suspension is later
XXIII, IRR]. proven to be unfounded or invalid, the said
employee is entitled to his salary during the
Period of Suspension whole period of his suspension [Gatbonton v.
No preventive suspension shall last longer than NLRC, G.R. No. 146779 (2006)].
thirty (30) days.
Upon the expiry of such period, the employer

shall thereafter:
1. Reinstate the worker in his former or in
a substantially equivalent position; or
2. The employer may extend the period of
suspension provided that:
a. During the period of extension,
he pays the wages and other
benefits due to the worker
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E. Floating Status F. Retirement
Floating Status in Security Agencies What is Retirement
Temporary “off-detail” or “floating status” is the It is the result of a bilateral act of the parties, a
period of time when security guards are in voluntary agreement between the employer
between assignments or when they are made and the employee whereby the latter, after
to wait after being relieved from a previous post reaching a certain age agrees to sever his or
until they are transferred to a new one. her employment with the former.
Dire exigency of the employer’s bona fide Three Kinds of Retirement Schemes
suspension of operation, business or 1. Mandated by law: Compulsory and
undertaking takes place when: contributory in character
1. The security agency’s clients decide 2. CBA and other agreements:
not to renew their contracts with the Agreement between the employer and
agency; and the employees
2. Contracts for security services stipulate 3. Voluntarily given by the employer:
that the client may request the agency expressly as in an announced
for the replacement of the guards company policy or impliedly as in a
assigned to it failure to contest the employee's claim
for retirement benefits [Gerlach v.
The employer should prove that there are no Reuters Limited, PH, G.R. No. 148542
posts available to which the employee (2005)].
temporarily out of work can be assigned [Peak
Ventures Corp v. Nestor Villareal, G.R. No. Requisites for Retroactive Application
184618 (2014)]. 1. The claimant for retirement benefits
was still in the employ of the employer
Requirement to be Reinstated at the time the statute took effect; and
The employee on floating status must indicate 2. The claimant had complied with the
his desire to resume his work not later than one requirements for eligibility for such
(1) month from the resumption of operations of retirement benefits under the statute
his employer or from his relief from the military [Universal Robina Sugar Milling Corp.
or civic duty. v. Caballeda, G.R. No. 156644 (2008)].
Thereafter, the employer shall reinstate the 1. Eligibility and Coverage

employee to his former position without loss of
seniority rights [Art. 301]. Who are Covered
All employees in the private sector, regardless
When Deemed Constructive Dismissal of their position, designation, or status, and
When that "floating status" of an employee irrespective of the method by which their
lasts for more than six months, he may be wages are paid [Sec. 1, IRR, RA 7641].
considered to have been illegally dismissed
from the service. Thus, he is entitled to the Exceptions:
corresponding benefits for his separation, and 1. Employees covered by the Civil
this will apply to the two types of work Service Law;
suspension, that is, either of the entire 2. Employees in retail, service and
business or of a specific component thereof agricultural establishments or
[Valdez v. NLRC, G.R. No. 125028 (1998)]. operations regularly employing not
more than ten employees [Sec. 2, IRR,
RA 7641].
Note: Domestic helpers and those in the

personal service of others used to be
exempted but such was deleted by D.O. 20
(1994).
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When the Provisions of RA 7641 Apply 2. Amount of Retirement Pay
RA 7641 only applies in a situation where there
is: Minimum Retirement Pay [Sec. 5, IRR, RA
1. No CBA or other applicable 7641]
employment contract providing for
retirement benefits; OR Minimum Components
2. Retirement benefits provided by CBA
or other employment contract fall below
the requirements set by law [Oxales v. ½ month salary for “One-half month
Unilab, G.R. No. 152991 (2008)]. every year of service salary” shall include
all of the following:
Age of Retirement NOTE: a fraction of Fifteen (15) days
In the absence of a retirement plan or at least 6 months salary based on the
agreement: shall be considered a latest salary rate;
1. Compulsory retirement: 65 years old year
[Sec. 4, IRR, RA 7641] Cash equivalent of
2. Optional retirement: 60 years or more “one-half month five (5) days of
(but below 65) and having served the salary” is equivalent service incentive
establishment for at least 5 years [Sec. to 22.5 days [Capitol leave;
1, IRR, RA 7641]. Wireless, Inc. v. Sec.
Confessor, G.R. No. One-twelfth (1/12) of
An employer is free to impose a retirement age 117174 (1996); the 13th month pay.
less than 65 for as long as it has the Reyes v. NLRC, (1/12 x 365/12 = .083
employees’ consent [Jaculbe v. Silliman G.R. No. 160233 x 30.41 = 2.52)
University, G.R. No. 156934 (2007)]. (2007)].
All other benefits that
For surface mine workers: the employer and
1. Compulsory retirement age: 60 years employee may agree
old upon
2. Optional retirement age is 50 and
having served the establishment for at
least 5 years [Sec. 2, RA 10757]. Retirement Pay under RA 7641 vis-à-vis
Retirement Benefits under SSS and GSIS
Forfeiture of Benefits Laws
Employees dismissed for just cause are not The benefits under RA 7641 are other than
entitled to retirement benefits and other those granted by the SSS or the GSIS [Secs. 1
privileges including reinstatement and & 2, RA 7641].
backwages. To rule otherwise would be to
reward acts of willful bread of trust by Retirement Benefits under a CBA or
employees [Sy v. Metropolitan Bank, G.R. No Applicable Contract
160618 (2006)]. Any EE may retire or be retired by his/her ER
upon reaching the age established in the CBA
Employee May Still Work After Retirement or other applicable agreement/contract and
Upon retirement of an employee, whether shall receive the retirement benefits granted
optional or compulsory, his services may be therein; provided, however, that such
continued or extended on a case to case basis retirement benefits shall not be less than the
upon the agreement of the employer and retirement pay required under RA 7641, and
employee [Sec. 4, IRR, RA 7641]. provided further that if such retirement benefits
under the agreement are less, the ER shall pay
the difference [Art. 302; Sec. 3.2, IRR].
Where both the ER and the EE contribute to a

retirement fund pursuant to the applicable
agreement, the ER’s total contributions and the
accrued interest thereof should not be less
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than the total retirement benefits to which the under any legal or equitable process
EE would have been entitled had there been no whatsoever [Sec. 1, RA 4917].
such retirement benefits’ fund. If such total
portion from the ER is less, the ER shall pay Exception: Payment of debts
the deficiency [Sec. 3.3, IRR, RA 7641].
The benefits may be subject of attachment,
a. Retirement Benefits for Workers Paid garnishment, levy or seizure to cover a debt of
by Results the official or employee concerned to the
private benefit plan or that arising from liability
Basis for Computation of Salary for 15 imposed in a criminal action [Sec. 1, RA 4917].
Days
Average Daily Salary (ADS): The ADS is Requirements to Avail of Exemption
derived by dividing the total salary for the last 1. That the retiring official or employee
12 months reckoned from the date of has been in the service of the same
retirement by the number of actual working employer for at least 10 years;
days in that particular period, provided that the 2. He is not less than fifty years of age at
determination of rates of payment by results the time of his retirement;
are in accordance with established regulations 3. That the retirement benefits shall be
[Sec. 5.3, IRR, RA 7641]. availed of by an official or employee
only once [Sec. 1, RA 4917];
4. The benefit plan must be approved by
b. Retirement Benefit of Part-Time
the BIR [Sec. 6, IRR, RA 7641].
Workers
Coverage of Exemption from Income Tax
Requisites Exempted from Taxation are:
Part-time workers are also entitled to 1. The retirement benefits received under
retirement pay of “one-half month salary” for RA 7641;
every year of service under RA 7641 after 2. Those received by officials and
satisfying the following conditions precedent employees of private firms, whether
for optional retirement: individual or corporate, in accordance
1. There’s no retirement plan between the with a reasonable private benefit plan
ER and the EE; and, maintained by the employer [Handbook
2. The EE should have reached the age on Workers’ Statutory Monetary
of 60 years, and should have rendered Benefits, 2018 ed.];
at least 5 years of service with the ER. 3. Amount received by the
official/employee or his heirs as a
Applying the foregoing principle, the consequence of separation due to
components of retirement benefit of part-time death, sickness, or other physical
workers may likewise be computed at least in disability or for any cause beyond the
proportion to the salary and related benefits control of the said official or employee
due them [DOLE Handbook on Workers’ [Sec. 1, RA 4917].
Statutory Monetary Benefits, 2018 ed.].
Reasonable Private Benefit Plan Defined
c. Non-Taxable It refers to a pension, gratuity, stock bonus or
profit-sharing plan:
General Rule: Exempt from all taxes, not liable 1. Maintained by an employer for the
to attachment benefit of some or all of his officials and
employees,
The retirement benefits received by officials 2. Wherein contributions are made by
and employees of private firms in accordance such employer or officials and
with a reasonable private benefit plan employees, or both, for the purpose of
maintained by the employer: distributing to such officials and
1. shall be exempt from all taxes and employees the earnings and principal
2. shall not be liable to attachment, of the fund thus accumulated, and
garnishment, levy or seizure by or
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3. Wherein it is provided in said plan that
at no time shall any part of the corpus
or income of the fund be used for, or be
diverted to, any purpose other than for
the exclusive benefit of the said
officials and employees [Sec. 1, RA
4917; Handbook on Workers’ Statutory
Monetary Benefits, 2018 ed.].
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VII. MANAGEMENT penalties, when prescribed, commensurate to

the offense involved and to the degree of the
PREROGATIVE infraction [Consolidated Food Corporation v.
NRLC, G.R. No. 118647 (1999); St. Michael’s
Institute v. Santos, G.R. No. 145280 (2001)].
A. Discipline
Although the right of employers to shape their
own work force is recognized, this
Management has the prerogative to discipline
management prerogative must not curtail the
its employees and to impose appropriate basic right of employees to security of tenure
penalties on erring workers pursuant to [Alert Security & Investigation Agency, Inc. v.
company rules and regulations [Jose P. Saidali Pasawilan, et. al., G.R. No. 182397
Artificio v. NLRC, G.R. No. 172988 (2010)]. (2011)].
Among the employer’s management
Disciplinary action against an erring employee
prerogatives is the right to prescribe
is a management prerogative which, generally,
reasonable rules and regulations necessary or is not subject to judicial interference. However,
proper for the conduct of its business or this policy can be justified only if the disciplinary
concern, to provide certain disciplinary action is dictated by legitimate business
measures to implement said rules and to
reasons and is not oppressive [Areno v.
assure that the same would be complied with
Skycable, G.R. No 180302 (2010)].
[St. Luke’s Medical Center, Inc. v. Sanchez,
G.R. 212054 (2015)].
B. Transfer of Employees
The employer’s right to conduct the affairs of
his business, according to its own discretion An employee’s right to security of tenure does
and judgment, includes the prerogative to instill not give him such a vested right in his position,
discipline in its employees and to impose as would deprive the company of its
penalties, including dismissal, upon erring prerogative to change his assignment or
employees [Consolidated Food Corporation v. transfer him where he will be most useful.
NRLC, G.R. No. 118647 (1999)].
The employer has the right to transfer or assign
Right to dismiss or otherwise impose employees from one area of operation to
disciplinary sanctions upon an employee for another, or one office to another or in pursuit of
just and valid cause, pertains in the first place its legitimate business interest.
to the employer, as well as the authority to
determine the existence of said cause in Management has the prerogative on whether
accordance with the norms of due process or not to renew the contract of a fixed-term
[Makati Haberdashery, Inc. v. NLRC, G.R. Nos. employee [Fonterra Brands Phils., Inc. v.
83380-81 (1989)]. Largado, G.R. No. 205300 (2015)].
Corollary Duty of Employees Criteria

The employee has the corollary duty to obey all Provided there is no demotion in rank or
reasonable rules, orders, and instructions of diminution of salary, benefits and other
the employer; and willful or intentional privileges and not motivated by discrimination
disobedience thereto, as a general rule, or made in bad faith, or effected as a form of
justifies termination of the contract of service punishment or demotion without sufficient
and the dismissal of the employee [St. Luke’s cause [Westin Phil. Plaza Hotel v. NLRC, G.R.
Medical Center, Inc. v. Sanchez, G.R. 212054 No. 121621 (1999)].
(2015)].
When the transfer is not unreasonable, or
Criteria inconvenient, or prejudicial to the employee,
The policies, rules and regulations on work- and it does not involve a demotion in rank or
related activities of the employees must always diminution of salaries, benefits, and other
be fair and reasonable and the corresponding privileges, the employee may not complain that
it amounts to a constructive dismissal [Bisig ng
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Manggagawa sa TRYCO v. NLRC, G.R. No. supervisor such as the employee fail to meet
151309 (2008)]. his quota for several consecutive months, he
will be demoted, whereupon his supervisor’s
It is management prerogative for employers to allowance will be withdrawn and be given to the
transfer employees on just and valid grounds individual who takes his place. When the
such as genuine business necessity [William employee concerned succeeds in meeting the
Barroga v. Data Center College of the quota again, he is re-appointed supervisor and
Philippines, G.R. No. 174158 (2011)]. his allowance is restored.
Re-Assignments The Supreme Court held that this arrangement

Re-assignments made by management is an allowable exercise of company rights
pending investigation of irregularities allegedly since an employer is entitled to impose
committed by an employee fall within the ambit productivity standards for its workers. In fact,
of management prerogative. The purpose of non-compliance may be visited with a penalty
reassignments is no different from that of even more severe than demotion.
preventive suspension which management
could validly impose as a disciplinary measure
for the protection of the company's property,
D. Bonus
pending investigation of any alleged
malfeasance or misfeasance committed by the A bonus is "a gratuity or act of liberality of the
employee [Ruiz v. Wendel Osaka Realty Corp., giver which the recipient has no right to
G.R. No. 189082 (2012)]. demand as a matter of right" [Philippine
National Construction Corp. v. National Labor
Employer Bears the Burden of Proof Relations Commission, 345 Phil. 324, 331
In cases of a transfer of an employee, the rule (1997)]. It is something given in addition to
is settled that the employer is charged with the what is ordinarily received by or strictly due the
burden of proving that its conduct and action recipient.
are for valid and legitimate grounds such as
genuine business necessity and that the The granting of a bonus is basically a
transfer is not unreasonable, inconvenient or management prerogative which cannot be
forced upon the employer "who may not be
prejudicial to the employee. If the employer
cannot overcome this burden of proof, the obliged to assume the onerous burden of
employee’s transfer shall be tantamount to granting bonuses or other benefits aside from
unlawful constructive dismissal [Jonathan the employee's basic salaries or wages" xxx
Morales v. Harbor Centre Port Terminal Inc., [Kamaya Point Hotel v. National Labor
G.R. No. 174208 (2012)]. Relations Commission, Federation of Free
Workers and Nemia Quiambao, G.R. No.
75289 (1989); Traders Royal Bank v. NLRC,
C. Productivity Standards G.R. No. 120592 (1990)].
The employer has the right to demote and The matter of giving a bonus over and above
transfer an employee who has failed to observe the worker’s lawful salaries and allowances is
proper diligence in his work and incurred entirely dependent on the financial capability of
habitual tardiness and absences and indolence the employer to give it [Kimberly-Clark
in his assigned work [Petrophil Corporation v. Philippines, Inc. v. Dimayuga, G.R. No. 177705
NLRC, G.R. No. L-64048 (1986)]. (2009)].
In the consolidated cases of Leonardo v. NLRC

[G.R. No. 125303 (2000)] and Fuerte v. Aquino
[G.R. No. 126937 (2000)], the employer
claimed that the employee was demoted
pursuant to a company policy intended to foster
competition among its employees. Under this
scheme, its employees are required to comply
with a monthly sales quota. Should a
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E. Change of Working Hours secrets, manufacturing formulas, marketing
strategies and other confidential programs and
Management retains the prerogative, information from competitors. We considered
whenever exigencies of the service so require, the prohibition against personal or marital
to change the working hours of its employees. relationships with employees of competitor
So long as such prerogative is exercised in companies upon Glaxo’s employees
good faith for the advancement of the reasonable under the circumstances because
employer’s interest and not for the purpose of relationships of that nature might compromise
defeating or circumventing the rights of the the interests of Glaxo. In laying down the
employees under special laws or under valid assailed company policy, we recognized that
agreements, this Court will uphold such Glaxo only aims to protect its interests against
exercise [Sime Darby Pilipinas Inc. v. NLRC, the possibility that a competitor company will
G.R. No. 119205 (1998)]. gain access to its secrets and procedures [Star
Paper Corp. v. Simbol, G.R. No. 164774
(2006)].
F. Bona Fide Occupational
Qualifications A requirement that a woman employee must
remain unmarried could be justified as a "bona
General Rule: Employment in particular jobs fide occupational qualification," or BFOQ,
may not be limited to persons of a particular where the particular requirements of the job
sex, religion, or national origin unless the would justify the same, but not on the ground
employer can show that sex, religion, or of a general principle, such as the desirability
national origin is an actual qualification for of spreading work in the workplace. A
performing the job. requirement of that nature would be valid
provided it reflects an inherent quality
Exception: The exception is called a bona fide reasonably necessary for satisfactory job
occupational qualification (BFOQ). performance [Phil. Telegraph and Telephone
Company v. NLRC, G.R. No. 118978 (1997)].
In the United States, there are a few federal
and many state job discrimination laws that G. Post-Employment
contain an exception allowing an employer to
engage in an otherwise unlawful form of Restrictions
prohibited discrimination when the action is
based on a BFOQ necessary to the normal In cases where an employee assails a contract
operation of a business or enterprise. BFOQ is containing a provision prohibiting him or her
valid "provided it reflects an inherent quality from accepting competitive employment as
reasonably necessary for satisfactory job against public policy, the employer has to
performance" [Yrasuegui v. PAL, G.R. No. adduce evidence to prove that the restriction is
168081 (2008)]. reasonable and not greater than necessary to
protect the employer’s legitimate business
BFOQ in Philippine Jurisdiction interests. The restraint may not be unduly
The concept of a bona fide occupational harsh or oppressive in curtailing the
qualification is not foreign in our jurisdiction. employee’s legitimate efforts to earn a
We employ the standard of reasonableness of livelihood, and must be reasonable in light of
the company policy which is parallel to the sound public policy [Rivera v. Solidbank, G.R.
bona fide occupational qualification No. 163269 (2006)].
requirement.
In Duncan Association of Detailman-PTGWO

and Pedro Tecson v. Glaxo Wellcome
Philippines, Inc., we passed on the validity of
the policy of a pharmaceutical company
prohibiting its employees from marrying
employees of any competitor company. We
held that Glaxo has a right to guard its trade
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H. Clearance Procedures Brewery Sales Force Union (PTGWO) v. Ople,
G.R. No. L-53515 (1989)].
Institution of Clearance Procedures has
Legal Bases The exercise of management prerogative is
Requiring clearance before the release of last valid, provided it is not performed in a
payments to the employee is a standard malicious, harsh, oppressive, vindictive or
procedure among employers, whether public or wanton manner or out of malice or spite
private. Clearance procedures are instituted to [Magdadaro v. PNB, G.R. No. 166198 (2009)].
ensure that the properties, real or personal,
belonging to the employer but are in the 2. Without grave abuse of discretion - The
possession of the separated employee, are managerial prerogative to transfer personnel
returned to the employer before the must be exercised without grave abuse of
employee’s departure. discretion, bearing in mind the basic elements
of justice and fair play. Having the right should
As a general rule, employers are prohibited not be confused with the manner in which the
from withholding wages from employees. The right is exercised [Tinio v. CA, G.R. No. 171764
(2007)].
Labor Code also prohibits the elimination or
diminution of benefits. However, our law
supports the employers’ institution of clearance 3. Law – The privilege of management
procedures before the release of wages. As an prerogative is not absolute, but subject to
exception to the general rule that wages may limitations imposed by law.
not be withheld and benefits may not be
diminished, the Labor Code provides for Wage Management prerogative is limited by Sec.
deduction under Art. 113. The Civil Code, 236(g), which gives the Secretary the power to
under Article 1706, also provides that the assume jurisdiction and resolve labor disputes
employer is authorized to withhold wages for involving industries indispensable to national
debts due. interest. The company’s management
prerogatives are not being unjustly curtailed
As long as the debt or obligation was incurred but duly tempered by the limitations set by law,
taking into account its special character and
by virtue of the employer-employee
relationship, generally, it shall be included in the particular circumstances in the case at
the employee’s accountabilities that are bench [Metrolab Industries, Inc. v. Roldan-
subject to clearance procedures [Milan v. Confesor, G.R. No. 108855 (2013); University
NLRC, G.R. No. 202961 (2015)]. of Immaculate Concepcion Inc. v. Sec. of
Labor, G.R. No. 151379 (2005)].
I. Limitations on Management Although management prerogative refers to

Prerogative; Police Power of the the right to regulate all aspects of employment,
it cannot be understood to include the right to
State temporarily withhold salary/wages without the
consent of the employee. To sanction such an
1. Good faith - So long as a company’s interpretation would be contrary to Art. 116 of
management prerogatives are exercised in the Labor Code [SHS Perforated Materials, Inc.
good faith for the advancement of the v. Diaz, G.R. No. 185814 (2010)].
employer’s interest and not for the purpose of
defeating or circumventing the rights of the 4. Collective Bargaining – The CBA
employees under special laws or under valid provisions agreed upon by the Company and
agreements, this Court will uphold them the Union delimit the free exercise of
[Ernesto G. Ymbong v. ABS-CBN management prerogative. The parties in a CBA
Broadcasting Corp., G.R. No. 184885 (2012)]. may establish such stipulations, clauses, terms
and conditions as they may deem convenient
It is incumbent upon the company to show that provided these are not contrary to law, morals,
decisions made under management good customs, public order or public policy
prerogative are in good faith and not intended [Goya Inc. v. Goya, Inc., Employees Union-
to circumvent employees’ rights [San Miguel
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FFW, G.R. No. 170054 (2013)].
5. Equity and/or Substantial Justice – The

Court should still ensure that the employer
exercises the prerogative to discipline
humanely and considerately, and that the
sanction imposed is commensurate to the
offense involved and to the degree of the
infraction [Dongon v. Rapid Movers and
Forwarders Co., Inc., G.R. No. 163431 (2013)].
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VIII. JURISDICTION AND any law or contract, involving claims for

actual, moral, exemplary and other
RELIEFS forms of damages, as well as
employment termination of OFWs;
h. Wage distortion disputes in
A. Mandatory Conciliation- unorganized establishments not
Mediation, SENA voluntarily settled by the parties [Art.
124];
The Single-Entry Approach (SENA) is a i. Enforcement of compromise
prescribed 30-day Mandatory Conciliation- agreements when there is non-
Mediation Services to be made operational compliance by any of the parties [Art.
through the Single Entry Approach Desk 233];
(SEAD) for all labor and employment cases j. Other cases as may be provided by
except: law.
1. cases on notices of strikes or lock-outs,
or on preventive mediation cases 2. Labor Arbiter vs. Regional Director
(NCMB) [Art. 129]
2. interpretation and implementation of
CBA (Grievance Machinery) [D.O. No. A money claim arising from employer-
107-10]. employee relations, except SSS,
ECC/Medicare [Philhealth] claims, is within the
jurisdiction of a Labor Arbiter if:
B. Labor Arbiter a. The claim, regardless of amount, is
accompanied with a claim of
1. Jurisdiction reinstatement; or
b. The claim exceeds P5,000, whether or
Except as otherwise provided under the Code, not there is a claim for reinstatement.
the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide: The Regional Director has jurisdiction if:
a. Unfair labor practices cases; a. Money claim arose out of employer-
b. Termination disputes; employee relationships;
c. Cases that workers may file involving b. Money claim is NOT accompanied by a
wages, rates of pay, hours of work and claim for reinstatement; AND
other terms and conditions of c. Money claim does not exceed P5,000,
employment, if accompanied with a whether or not claim arose from ER-EE
claim for reinstatement; relationships.
d. Claims for actual, moral, exemplary
and other forms of damages arising 3. Procedure
from the employer-employee relations;
e. Cases arising from any violation of Art. a. Requirements for Appeal
279 of this Code, including questions
involving the legality of strikes and
Period of Appeal
lockouts;
Labor Arbiter to NLRC: Decisions, awards, or
f. Except claims for Employees
orders of the [LA] shall be final and executory
Compensation, Social Security,
unless appealed to the [NLRC] by any or both
Medicare [Philhealth] and maternity
parties within 10 calendar days from receipt
benefits, all other claims, arising from
[thereof] [Art. 229].
employer-employee relations,
including those of persons in domestic
Note: If the last day of the reglementary period
or household service, involving an
falls on a Sunday or a holiday, the last day shall
amount exceeding P5,000 regardless
be the next working day.
of whether accompanied with a claim
for reinstatement [Art. 224];
g. Money claims arising out of employer-
employee relationship or by virtue of
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Grounds of Appeal [Art. 229] b. Merely reinstated in the payroll, at the
a. If there is prima facie evidence of option of the employer.
abuse of discretion on the part of the
Labor Arbiter or Regional Director; The posting of a bond by the employer shall not
b. If the decision, resolution or order was stay the execution for reinstatement provided
secured through fraud or coercion, herein [Art. 229].
including graft and corruption;
c. If made purely on questions of law; Reversal of the Order of Reinstatement of
and/or the Labor Arbiter
d. If serious errors in the findings of fact During the period of appeal until reversal by the
are raised which, if not corrected, higher court, it is obligatory on the part of the
would cause grave or irreparable injury employer to:
to the appellant. 1. Reinstate, and
2. Pay the wages of the dismissed
Judgment Involving a Monetary Award employee.
An appeal by the employer may be perfected
only upon the posting of a cash or surety bond If the employee has been reinstated during the
issued by a reputable bonding company duly appeal period and such reinstatement order is
accredited by the Commission in the amount reversed with finality, the employee is NOT
equivalent to the monetary award in the required to reimburse whatever salary he
judgment appealed from [Art. 229]. received. He is entitled to such especially if he
actually rendered services during the period
It is clear from the NLRC Rules of Procedure [Garcia v. Philippine Airlines, Inc., G.R. No.
that appeals must be verified and certified 164856 (2009)].
against forum-shopping by the parties-in-
interest themselves [Antonio B. Salenga, et al. C. National Labor Relations
v. CA, G.R. No. 174941 (2012)].
Commission
Note: Decisions of the Labor Arbiter are
appealable to the NLRC. Decisions by the 1. Jurisdiction
NLRC are appealable to the CA via Rule 65 [St.
Martin’s Funeral Homes v. NLRC, 295 SCRA NLRC en banc
494 (1998)]. a. To promulgate rules and regulations
governing the hearing and disposition
Memorandum of Appeal of cases
In all cases, the appellant shall furnish a copy b. To formulate policies affecting its
of the memorandum of appeal to the other administration and operations
party who shall file an answer not later than ten c. To allow cases within the jurisdiction of
(10) calendar days from receipt thereof [Art. any division to be heard and decided by
229]. another division
d. To recommend appointment of a Labor
b. Reinstatement and/or Execution Arbiter
Pending Appeal
NLRC in Divisions (8 divisions with 3
In any event, the decision of the Labor Arbiter commissioners each)
reinstating a dismissed or separated a. Exclusive appellate jurisdiction from
employee, insofar as the reinstatement aspect decisions of LA (within respective
is concerned, shall immediately be executory, territorial jurisdiction)
even pending appeal. b. Jurisdiction over petitions for injunction
or temporary restraining order under
The employee shall either be: Art. 225(e)
a. Admitted back to work under the same c. Certified cases: “national interest” labor
terms and conditions prevailing prior to disputes certified (or referred) to the
his dismissal or separation; or Commission by the SOLE for
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compulsory arbitration under Art. 278 D. Judicial Review of Labor
(g)
Rulings
Exclusive Appellate Jurisdiction: over all
cases decided by Labor Arbiters [Art. 224(b)] Petition for Certiorari
and the DOLE Regional Directors under Art. A person may file a verified petition in the
129. proper court, alleging the facts with certainty
and praying that judgment be rendered
2. Function annulling or modifying the proceedings of
any tribunal, board or officer exercising judicial
or quasi-judicial functions, and granting such
When sitting in a compulsory arbitration
incidental reliefs as law and justice may
certified to by the Secretary of Labor, the NLRC
require:
is tasked:
1. When such tribunal, board or officer
a. To implement the order of the
has acted:
Secretary as an administrative body,
a. Without or in excess its or his
not as a judicial court
jurisdiction, or
b. To formulate the terms and conditions
b. With grave abuse of discretion
of the CBA, staying within the scope of
amounting to lack or excess of
the order
jurisdiction; AND
c. To act within the earliest time possible
2. When there is no appeal, or any plain,
and with the end in view that its action
speedy, and adequate remedy in the
would not only serve the interests of the
ordinary course of law.
parties alone, but would also have
favorable implications to the
The petition shall be accompanied by:
community and to the economy as a
1. A certified true copy of the judgment,
whole. [Art. 278(g); Union of Filipino
order or resolution subject thereof;
Employees v. NLRC, G.R. No. 91025
2. Copies of all pleadings and documents
(1990)].
relevant and pertinent thereto; and
3. A sworn certification of non-forum
3. Procedure shopping as provided in the third
paragraph of Sec. 3, Rule 46.
When there is no need to conduct a
clarificatory hearing, the Commission shall Petition for Prohibition
resolve all certified cases within 30 calendar A person may file a verified petition in the
days from receipt by the assigned proper court, alleging the facts with certainty
Commissioner of the complete records, which and praying that judgment be rendered
shall include the position papers of the parties commanding the any tribunal, corporation,
and the order of the SOLE denying the motion board, officer or person, whether exercising
for reconsideration of the certification order, if judicial, quasi-judicial or ministerial functions to
any. desist from further proceedings in the action
or matter specified therein, or otherwise
Where a clarificatory hearing is needed, the granting such incidental reliefs as law and
Commission shall, within 5 calendar days from justice may require:
receipt of the records, issue a notice to be 1. When the proceedings of such tribunal,
served on the parties through the fastest corporation, board, officer or person
means available, requiring them to appear and are:
submit additional evidence, if any. All certified a. Without or in excess of its or his
cases shall be resolved by the Commission jurisdiction; or
within 60 calendar days from receipt of the b. With grave abuse of discretion
complete records by the assigned amounting to lack or excess of
Commissioner. jurisdiction, AND
2. When there is no appeal or any other
plain, speedy, and adequate remedy in
the ordinary course of law.
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The petition shall be accompanied by: Regional Trial Court or other courts whenever
1. A certified true copy of the judgment, authorized by law, may file with the Supreme
order or resolution subject thereof; Court a verified petition for review on certiorari.
2. Copies of all pleadings and documents The petition shall raise only questions of law
relevant and pertinent thereto; and which must be distinctly set forth [Sec. 1].
3. A sworn certification of non-forum
shopping as provided in the third Since the Court of Appeals had jurisdiction
paragraph of Sec. 3, Rule 46. over the petition under Rule 65, any alleged
errors committed by it in the exercise of its
Petition for Mandamus jurisdiction would be errors of judgment which
A person may file a verified petition in the are reviewable by timely appeal, and not by a
proper court, alleging the facts with certainty special civil action of certiorari.
and praying that judgment be rendered
commanding any tribunal, corporation, board, If the aggrieved party fails to do so within the
officer or person, immediately or at some other reglementary period, and the decision
time to be specified by the court, to do the act accordingly becomes final and executory, he
required to be done to protect the rights of the cannot avail himself of the writ of certiorari, his
petitioner, and to pay the damages sustained predicament being the effect of his deliberate
by the petitioner by reason of the wrongful acts inaction [Tirazona v. Phil EDS Techno-Service
of the respondent: Inc, G.R. No. 169712 (2009)].
1. When any tribunal, corporation, board,
officer or person: Note: Review of decisions of the NLRC shall be
a. Unlawfully neglects the done through (in order):
performance of an act which the 1. Motion for reconsideration
law specifically enjoins as a duty 2. Rule 65 to the CA
resulting from an office, trust, or 3. Rule 45 to the SC
station; or
b. Unlawfully excludes another from E. Bureau of Labor Relations
the use and enjoyment of a right or
office to which such other is
1. Jurisdiction
entitled; AND
2. When there is no other plain, speedy
and adequate remedy in the ordinary Original Jurisdiction
course of law. a. Inter-union and intra-union disputes
and other related labor relations
Supreme Court disputes.
All references in the amended Sec. 9 of B.P. b. All disputes, grievances or problems
No. 129 to supposed appeals from the NLRC arising from or affecting labor-
to the Supreme Court are interpreted and management relations in all
hereby declared to mean and refer to petitions workplaces whether agricultural or
for certiorari under Rule 65. non-agricultural, except those arising
from the implementation or
Consequently, all such petitions should hence interpretation of collective bargaining
forth be initially filed in the Court of Appeals, in agreements which shall be the subject
strict observance of the doctrine on the of grievance procedure and/or
hierarchy of courts, as the appropriate forum voluntary arbitration [Art. 232].
for the relief desired [St. Martin Funeral Home
v. NLRC, G.R. No. 130866 (1998)]. Note: If the complaint involves an independent
union, chartered local or worker’s association,
Rule 45, Rules of Court file with the DOLE Regional Office but if the
complaint involves a federation or an
Filing of Petition with Supreme Court industry/national union, file with the BLR.
A party desiring to appeal by certiorari from a
judgment or final order or resolution of the Inter-Union Dispute: one which occurred
Court of Appeals, the Sandiganbayan, the between or among legitimate labor unions
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involving representation questions for 9. Such other disputes or conflicts involving
purposes of collective bargaining or to any the rights to self-organization, union
other conflict or dispute between legitimate membership and collective bargaining
labor unions [IRR Book V, IRR Rule 1, Sec. 1 a. Between and among legitimate labor
(x)]. organizations; or
b. Between and among members of a
Intra-Union Dispute: conflict within and inside union or workers' association [Sec.
a union between and among union members 1(n)].
including grievances from any violation of
rights and conditions of membership or Appellate Jurisdiction
provisions from the union’s constitution and by- The BLR Director exercises exclusive
laws and chartering of unions [D.O. No. 40-03, appellate jurisdiction over:
Rule I, Sec. 1 (bb)]. 1. All decisions of the Med-Arbiter in:
a. Inter/Intra-union disputes (Note:
Inter/Intra – Union Disputes shall include: Complaints involving Federations,
[DO No. 040-I-15, Book V, Rule XI] National Unions, etc. pursuant to Rule
1. Cancellation of registration of a labor XI Sec. 4, formerly Sec. 5, as amended
organization filed by its members or by by D.O. 40-F-03).
another labor organization [Sec. 1a] b. Other related labor relations disputes.
2. Conduct of election of union and workers' 2. All decisions from the DOLE Regional
association officers/nullification of election Director in the cases falling under their
of union and workers' association officers original jurisdiction as enumerated [Sec.
[Sec. 1(b)] 14, Rule XI, Book V, IRR].
3. Audit/accounts examination of union or
workers' association funds [Sec. 1(c)] Decisions of the BLR through its appellate
4. Deregistration of collective bargaining jurisdiction are final and executory 10 days
agreements [Sec. 1(d)] after receipts by the parties [Sec. 20, Rule XI,
5. Validity/invalidity Book V, IRR].
a. Of union affiliation or disaffiliation [Sec.
1(e)] 2. Function
b. Of acceptance/non-acceptance for
union membership [Sec. 1(f)] The Bureau of Labor Relations and the Labor
c. Of impeachment/expulsion of union Relations Divisions in the regional offices of the
and workers' association officers and Department of Labor and Employment shall
members [Sec. 1(g)] have original and exclusive authority:
d. the SEBA certification [Sec. 1(h)] a. To act –
e. Or disagreements over any provision in 1. At their own initiative, or
a union or workers' association 2. Upon request of either or both
constitution and by-laws [Sec. 1(j)] parties,
6. Opposition to application for union and b. On all inter-union and intra-union
CBA registration [Sec. 1(i)] conflicts, and
7. Disagreements over chartering or c. All disputes, grievances or problems
registration of labor organizations and arising from or affecting labor-management
collective bargaining agreements [Sec. relations in all workplaces –
1(k)] 1. Whether agricultural or non-
8. Violations of – agricultural
a. The rights and conditions of union or 2. Except those arising from the
workers' association membership [Sec. implementation or interpretation of
1(l)] collective bargaining agreements
b. The rights of legitimate labor which shall be the subject of grievance
organizations, except interpretation of procedure and/or voluntary arbitration
collective bargaining agreements [Sec. [Art. 232].
1(m)]; and
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The Bureau shall have fifteen (15) calendar 2. Conciliation as Distinguished from
days to act on labor cases before it, subject to Mediation
extension by agreement of the parties.
Conciliation Mediation
F. National Conciliation and
Mediation Board Both refer to a process where a third person
called a Conciliator/Mediator intervenes in a
1. Jurisdiction dispute to reconcile differences or persuade
them to adjust or settle their dispute
All issues arising from labor and employment
C-M facilitates C-M assists parties
shall be subject to mandatory conciliation-
disputants to keep to voluntarily reach
mediation.
things calm, delivers mutually
messages back and acceptable
Exception: As provided in Title VII-A, Book V
forth between the settlement.
of this Code, as amended, or as may be
parties.
excepted by the Secretary of Labor and
Employment. [Conciliation-Mediation, DOLE – NCMB
Website, available at:
The Labor Arbiter or the appropriate DOLE http://ncrwp.ncmb.ph/?page_id=99]
agency or office that has jurisdiction over the
dispute shall entertain only endorsed or Conciliator-Mediator [C-M] — Official of the
referred cases by the duly authorized officer. NCMB whose principal function is to settle and
dispose potential and actual labor disputes
Any or both parties involved in the dispute may through conciliation and preventive mediation
pre-terminate the conciliation-mediation including the promotion and encouragement of
proceedings and request referral or voluntary approaches to labor disputes
endorsement to the appropriate DOLE agency prevention and settlement [Sec. 1, Rule III,
or office which has jurisdiction over the dispute, NCMB Manual of Procedure for Conciliation
or if both parties so agree, refer the unresolved and Preventive Mediation Cases].
issues to voluntary arbitration [Art. 228].
Pre-Termination of Conciliation-Mediation:
The NCMB is an agency attached to the DOLE Any or both parties in the dispute may pre-
principally in charge of the settlement of labor terminate the proceedings and request referral
disputes through conciliation, mediation and of or endorsement to the appropriate DOLE
the promotion of voluntary approaches to labor agency or office with jurisdiction or to the
dispute prevention and settlement [NCMB voluntary arbiter if both parties agreed.
Manual of Procedures for Conciliation and
Preventive Mediation Cases, Rule III, sec. 1]. Privileged Communication not Available as
Evidence: Any statement made in conciliation
proceedings shall be treated as privileged
communication, and shall not be used as
evidence in the NLRC. Conciliators may not
testify in any court or body regarding any
matter during the conciliation proceedings
[D.O. No. 40-03, Rule XXII, Sec. 2].
3. Preventive Mediation
Note: Refer also to Sec. 3 (Action on Non-

Strikeable Issues) & Sec. 4 (Notice Converted
to Preventive Mediation) of Rule V of the
NCMB Manual of Procedure for Conciliation
and Preventive Mediation Cases involving non-
strikeable issues.
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Definition [Sec. 1(20), Rule III, NCMB Manual Petitions for review shall be filed within ten (10)
of Procedure for Conciliation and Preventive calendar days from receipt of the Order by the
Mediation Cases]. parties.
Preventive Mediation Cases - refer to the All Motions for Reconsideration shall be treated
potential labor disputes which are the subject as a petition for review.
of a formal or informal request for conciliation
and mediation assistance – H. DOLE Regional Directors
a. Sought by either or both parties, or
b. Upon the initiative of the NCMB to
avoid the occurrence of actual labor 1. Jurisdiction
disputes. The DOLE Regional Directors shall have
original and exclusive jurisdiction over:
Purpose of Preventive Mediation — to a. Labor standards enforcement cases
remedy, contain or prevent potential labor under Art. 128;
disputes’ degeneration into a full-blown Note: as the duly authorized
dispute through amicable settlement. It can be representative of the SOLE
initiated by: b. Small money claims from labor
a. Filing a notice or request of preventive standards violations not exceeding
mediation; or P5,000 and not accompanied with a
b. Conversion of the notice of claim for reinstatement under Art. 129;
strike/lockout into at preventive c. Operational safety and health
mediation case. conditions (can order stoppage or
suspension of operations) [Art. 128;
Note: If the subject of the strike is non- Bk. IV, Rule II, Sec. 8];
strikeable, the NCMB can motu proprio convert d. Registration of unions and
the notice into preventive mediation or refer the cancellations thereof, cases filed
issues to voluntary arbitration. against unions and other labor
relations related cases [Sec. 4, Rule XI
(renumbered, D.O. 40-F-03];
G. POEA Note: only if against an independent
labor union, chartered local or workers’
1. Jurisdiction association;
e. Complaints against private recruitment
Original and exclusive jurisdiction and placement agencies (PRPAs) for
POEA shall exercise original and exclusive local employment [Secs. 45/46, D.O.
jurisdiction to hear and decide all pre- 141-14]; and
employment cases which are administrative in f. Cases submitted to voluntary
character, involving or arising out of violation of arbitration in their capacity as Ex
recruitment laws, rules and regulations Officio Voluntary Arbiters under D.O
including money claims arising therefrom or 83-07 (2007).
violation of the conditions for issuance of
license to recruit workers [Sec. 1, Rule I, Book Note: The DOLE Regional Director, as the duly
VI, POEA Rules]. authorized representative of the SOLE, also
has visitorial and enforcement power under:
Petition for Review 1. Art. 37, Art. 128 (have access to
POEA shall have exclusive jurisdiction to employer’s records and premises with
review recruitment violation cases and other right to copy or investigate to determine
related cases decided by the Administration violations of law); and
motu proprio or upon petition of parties in 2. Art. 289 (where it can inquire into the
interest [Sec. 1, Rule IV, Book VI, POEA financial activities of any legitimate
Rules]. labor organization and examine their
books and records to determine
compliance with the law if requested by
at least 20% of total membership).
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Appeal: Appeal of decisions from visitorial and be used exclusively for the amelioration and
enforcement power to the SOLE within 10 benefit of workers.
calendar days from receipt thereof [Rule IV,
sec. 1, Rules on Disposition of Labor Standard When any such sum not paid to the employee
Cases in the Regional Offices]. or househelper because he cannot be located
after diligent and reasonable effort to locate
2. Recovery and Adjudicatory Power him within a period of three (3) years [Art. 129,
par. 4].
Art. 129. Recovery of Wages, Simple
Money Claims and Other Benefits. Appeal of Decision or Resolution [Art. 129,
Who: The Regional Director of the Department par. 5]:
of Labor and Employment or any of the duly Any decision or resolution of the Regional
authorized hearing officers of the Department Director or hearing officer pursuant to this
[par. 1]. provision may be appealed on the same
grounds provided in Article 223 of this Code.
What: They are empowered to hear and
decide any matter involving the recovery of Period: Within five (5) calendar days from
wages and other monetary claims and benefits receipt of a copy of said decision or resolution.
• including legal interest, owing to an
employee or person employed in To whom: To the National Labor Relations
domestic or household service or Commission which shall resolve the appeal
househelper under this Code, arising within ten (10) calendar days from the
from employer-employee relations submission of the last pleading required or
allowed under its rules.
How: Through summary proceeding and after
due notice The Secretary of Labor and Employment or his
duly authorized representative may supervise
When: Upon complaint of any interested party the payment of unpaid wages and other
monetary claims and benefits, including legal
Conditions: interest, found owing to any employee or
a. Provided that such complaint does not househelper under this Code [Art. 129, par. 6].
include a claim for reinstatement;
b. Provided, further, That the aggregate Small Money Claims
money claims of each employee or See also discussion in VI.F. on Money Claims
househelper do not exceed five arising from Employer-Employee Relationship
thousand pesos (P5,000).
Period of Appeal to NLRC: Decisions of the
Period to decide: The Regional Director or Regional director on recovery of wages, simple
hearing officer shall decide or resolve the money claims and other benefits, shall be final
complaint within thirty (30) calendar days from and executory unless appealed within 5 days
the date of the filing of the same [Art. 129, par. from receipt thereof [Art. 129].
2].
Definition: Recovery/adjudicatory power is the
Effects of Decision to the Recovered Sum power of the Regional Director or any duly
authorized hearing officer of DOLE to
on Behalf of Any Employee or
adjudicate on recovery of wages of
Househelper
employees/househelpers employed in a
General Rule: Shall be held in a special
domestic household for claims not exceeding
deposit account by, and shall be paid, on order
P5,000 and without seeking reinstatement [Art.
of the Secretary of Labor and Employment or
129].
the Regional Director directly to the employee
or househelper concerned [Art. 129, par. 3].
If any of the requisites are missing, the Labor
Arbiter shall have jurisdiction over claims
Exception: Shall be held as a special fund of
arising from ER-EE relations except claims for
the Department of Labor and Employment to
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employees’ compensation, SSS, PhilHealth Power of the Secretary of Labor to
and maternity benefits [Art. 224]. Assume Jurisdiction (alternative)
a. Decide the labor dispute
Money claims should be filed within 3 years himself/herself.
from the time the cause of action accrued [Art. b. Certify the labor dispute to the NLRC
306]. for compulsory arbitration.
I. DOLE Secretary Scope: The authority of the Secretary to

assume jurisdiction over a labor dispute
includes and extends to all questions and
1. Jurisdiction
controversies arising from such labor dispute.
The power is plenary and discretionary in
When May the SOLE Assume Jurisdiction
nature to enable him to effectively and
Art. 278 (g). Strikes, Picketing and
efficiently dispose of the dispute [Philcom
Lockouts. – The SOLE may:
Employees Union v. Philippine Global
a. Assume jurisdiction over the dispute
Communications, 495 SCRA 214 (2006)].
and decide it; or
b. Certify the same to the Commission for
Appellate Jurisdiction
compulsory arbitration
1. Orders issued by the duly authorized
representative of the SOLE under Art.
When in his opinion there exists a labor dispute
128 may be appealed to the latter.
causing, or likely to cause, a strike or lockout in
2. Denial of application for union
an industry indispensable to the national
registration or cancellation of union
interest.
registration originally rendered by the
BLR may be appealed to the SOLE (if
Requisites for Assumption of Jurisdiction
originally rendered by the Regional
1. Both parties have requested the SOLE
Office, appeal should be made to the
to assume jurisdiction; or
BLR)
2. After a conference called by the Office
3. POEA — The Office of the SOLE shall
of the SOLE on the propriety of its
have exclusive jurisdiction to act on
issuance, motu proprio or upon a
appeals from the Orders of the
request or petition by either party to the
Administration [Sec. 185, Rule VII,
labor dispute [Book V, IRR Rule XXII,
Revised POEA Rules and Regulations
sec. 15, IRR as amended by D.O. No.
Governing The Recruitment and
40-H-13 s 2013].
Employment of Landbased Overseas
Filipino Workers of 2016]
Industries Indispensable to the National
4. Decisions of the Med-Arbiter in
Interest
certification election cases are
a. Hospital sector
appealable to the SOLE [Art. 272]
b. Electric power industry
(decisions of med-arbiters in intra-
c. Water supply service, to exclude small
union disputes are appealable to the
water supply services such as bottling
BLR [Sec. 15, Rule XI, Book V, IRR])
and refilling stations
d. Air traffic control
Voluntary Arbitration Powers
e. Other industries as may be
Art. 278 (h). Strikes, Picketing and
recommended by the National
Lockouts. – The parties may opt to submit
Tripartite Industrial Peace Council
their dispute to voluntary arbitration.
(TIPC) [Sec. 16, Rule XXII, Book V,
IRR as amended by D.O. No. 40-H-13]
When: Before or at any stage of the
compulsory arbitration process.
Who Determines Industries Indispensable
to the National Interest [Art. 278(g)]
Sec. 15, Rule XXII, Book V. Assumption by
a. Secretary of Labor and Employment
the Secretary of Labor and Employment. –
b. President
… parties to the case may agree at any time to
submit the dispute to the SOLE or his/her duly
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authorized representative as Voluntary a. they voluntarily submit their
Arbitrator… potential or ongoing dispute to intervention
by the Office of the Secretary of Labor and
Employment;
DOLE Circular No. 1 Series of 2006. –…this
b. there is no pending notice of strike
administrative procedure for the voluntary
or lockout or any related complaint in
settlement of labor disputes is hereby established:
relation with their potential or ongoing
1. Either or both the employer and the
dispute;
certified collective bargaining agent (or
c. they shall refrain from any strike
representative of the employees where there is
or lockout or any form of work stoppage or
no certified bargaining agent) may voluntarily
from filing any related complaint while the
bring to the Office of the SOLE through a
SOLE’s intervention is in effect; and
REQUEST FOR INTERVENTION, any
d. they shall abide by the agreement
potential or ongoing dispute defined below.
reached, whose terms may be enforced
through the appropriate writs issued by the
A potential or ongoing dispute refers to:
SOLE
a. live and active dispute;
b. that may lead to a strike or lockout
All agreements settling the dispute shall be in
or to massive labor unrest;
writing and signed by the parties as well as the
c. is not the subject of any complaint
official who mediated the dispute.
or notice of strike or lockout at the time a
request for intervention is made.
5. The parties and officials or employees of
the DOLE who took part in the proceedings
This recourse is separate from the established
shall not testify in any court or body regarding
dispute resolution modes of mediation,
the disclosures, submissions or positions made
conciliation and arbitration under the Labor
by the parties in these proceedings.
Code, and is an alternative to other voluntary
a. If the intervention fails, either or
modes of dispute resolution such as the
both parties may avail themselves of the
voluntary submission of a dispute to the
remedies provided under the Labor Code.
Regional Director for mediation, to the NCMB
Alternatively, the parties may submit their
for preventive mediation, or to the intervention
dispute to the Office of the Secretary for
of a regional or local tripartite peace council for
voluntary arbitration. Such voluntary
the same purpose.
arbitration shall be limited to the issues
defined in the parties’ submission to
2. all requests shall be in writing and filed with
voluntary arbitration agreement and shall
the office of the secretary. a request shall state:
be decided on the basis of the parties’
a. the name and address of the
position papers and submitted evidence.
employer;
The Office of the Secretary shall resolve
b. the name of the certified
the dispute within sixty (60) days from the
bargaining agent, or the employee
parties’ submission of the dispute for
representative duly designated in writing by
resolution.
a majority of the employees where there is
b. This circular shall take effect
no collective bargaining agent;
fifteen (15) days after publication in a
c. the number of employees affected
newspaper of general publication. Done in
by the potential or ongoing dispute; and d.
the City of Manila, Philippines, 11 August
a brief description of the potential or
2006.
ongoing dispute.
3. Upon receipt of the REQUEST, the Office of

the Secretary shall forthwith notify the parties
2. Visitorial and Enforcement Powers
and invite them for conference. The
conference for REQUESTS coming from the Art. 128. Visitorial and Enforcement
National Capital Region, Regions III, IV-A or Power
IV- B shall be held at the Office of the Secretary The Secretary of Labor and Employment or his
of Labor and Employment unless the Secretary
otherwise directs. The conference for
duly authorized representatives, including
REQUESTS coming from the other regions labor regulation officers, shall:
shall be conducted by the Regional Director for 1. Have access to employer’s records
the Secretary. and premises at any time of the day or
night whenever work is being
4. The Office of the Secretary or the Regional undertaken therein
director, in the proper case, shall proceed to
intervene after the parties shall have
a. And the right:
manifested that; i. To copy therefrom,
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ii. To question any 1. To inquire into the financial activities of
employee and legitimate labor organizations
iii. To investigate any fact, a. Upon the filing of a complaint
condition or matter under oath and duly supported
which may be by the written consent of at
necessary to determine least twenty percent (20%) of
violations or which may the total membership of the
aid in the enforcement labor organization concerned
of this Code and of any 2. To examine their books of accounts
labor law, wage order and other records to determine
or rules and regulations compliance or non-compliance with the
issued pursuant law
thereto. 3. To prosecute any violations of the law
2. Have the power to issue compliance and the union constitution and by-laws
orders
a. Purpose: to give effect to the Provided, That such inquiry or examination
labor standards provisions of shall not be conducted during the sixty (60)-day
this Code and other labor freedom period nor within the thirty (30) days
legislation based on the immediately preceding the date of election of
findings of labor employment union officials.
and enforcement officers or
industrial safety engineers The visitorial and enforcement powers of the
made in the course of DOLE Regional Director to order and enforce
inspection. compliance with labor standard laws can be
b. Notwithstanding the provisions exercised even where the individual claim
of Arts. 129 and [224] of this exceeds P5,000.00 [Cirineo Bowling Plaza,
Code to the contrary, and in Inc. v. Sensing, G.R. No. 146572 (2005)].
cases where the relationship of
employer-employee still exists If a complaint is brought before the DOLE to
3. Issue writs of execution to the give effect to the labor standards provisions of
appropriate authority for the the Labor Code or other labor legislation, and
enforcement of their orders there is a finding by the DOLE that there is an
a. Exception: cases where the existing employer-employee relationship, the
employer contests the findings DOLE exercises jurisdiction to the exclusion of
of the labor employment and the NLRC.
enforcement officer and raises
issues supported by The findings of the DOLE, however, may still
documentary proofs which be questioned through a petition for certiorari
were not considered in the under Rule 65 of the Rules of Court.
course of inspection.
The DOLE's labor inspection program can now
Art. 37. Visitorial Power. – The Secretary of proceed without being sidetracked by
Labor or his duly authorized representatives unscrupulous employers who could render
may, at any time – nugatory the "expanded visitorial and
1. Inspect the premises, books of enforcement power of the DOLE granted by RA
accounts and records of any person or 7730 . . . by the simple expedient of disputing
entity covered by this Title the employer-employee relationship [and] force
2. Require it to submit reports regularly on the referral of the matter to the NLRC”
prescribed forms, and [People's Broadcasting Service v. Secretary of
3. Act on violation of any provisions of this the Department of Labor and Employment,
Title. G.R. No. 179652 (2012 Resolution)].
Art. 289. Visitorial Power. –The Secretary of The factual findings of the SOLE or the
Labor and Employment or his duly authorized Regional Directors made in the exercise of
representative is hereby empowered: their visitorial and enforcement powers are
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binding on Labor Arbiters and the NLRC under J. Grievance Machinery
the doctrine of res judicata [Norkis Trading v.
Buenavista, G.R. No. 182018 (2012)].
1. Definition
Art. 292 (b). Visitorial and Enforcement
Grievance machinery is a machinery for the
Power - The SOLE may suspend the effects of
expeditious resolution of grievances arising
a termination pending resolution of the dispute
from the interpretation or implementation of the
in the event of a prima facie finding by the
collective bargaining agreement and those
appropriate official of the DOLE that:
arising from the interpretation or enforcement
a. The termination may cause a serious
of company personnel policies [Sec. 1, Rule
labor dispute (may or may not be a
XIX, Book V, IRR].
strike or a lockout)
b. The termination is in implementation of
a mass lay-off 2. Establishment
a. A grievance machinery may be
established in the CBA; or
3. Remedies
b. In the absence of applicable provision
in the collective bargaining agreement,
The aggrieved party from a decision of the a grievance committee shall be created
SOLE may file one motion for reconsideration within ten (10) days from signing of the
within ten (10) days from receipt thereof. collective bargaining agreement. The
committee shall be composed of at
If the motion for reconsideration is denied, the least two (2) representatives each from
party may appeal via Rule 65 to the CA 60 days the members of the bargaining unit and
from receipt of the denial. Upon denial, the the employer, unless otherwise agreed
party may proceed via Rule 45 to the SC [Rule upon by the parties. The
65, ROC; St. Martin Funeral Home v. NLRC, representatives from among the
G.R. No. 130866 (1998)]. members of the bargaining unit shall be
designated by the union [Sec. 1, Rule
Clearly, before a petition for certiorari under XIX, Book V, IRR].
Rule 65 of the Rules of Court may be availed
of, the filing of a motion for reconsideration is a
3. Remedies
condition sine qua non to afford an opportunity
for the correction of the error or mistake
Unresolved grievances will be referred to
complained of [PIDLTRANCO Service
voluntary arbitration.
Enterprises Inc v. PWU – AGLO, G.R. No.
● For this purpose, parties to a collective
180962 (2014)].
bargaining agreement shall name and
designate in advance a voluntary
arbitrator or panel of voluntary
arbitrators, or include in the agreement
a procedure for the selection of such
voluntary arbitrator or panel of
voluntary arbitrators, preferably from
the listing of qualified voluntary
arbitrators duly accredited by the Board
[Sec. 1, Rule XIX, Book V, IRR].
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K. Voluntary arbitrator in accordance with the finding of regularization
[Manila Pavilion Hotel, etc. v. Henry Delada,
G.R. No. 189947 (2011)].
1. Jurisdiction
Other Labor Disputes
Exclusive and Original Jurisdiction Over
Unresolved Grievances Article. 275. Jurisdiction Over Other Labor
Disputes. – The VA or panel of VAs, upon
a. Interpretation or implementation of the agreement of the parties, shall also hear and decide
CBA [Art. 274] all other labor disputes including ULP and
b. Interpretation or enforcement of bargaining deadlocks.
company personnel policies [Art. 274]
c. Violations of a CBA which are not gross
in character (gross being flagrant and/or Article 274. Jurisdiction of Voluntary Arbitrators or
malicious refusal to comply with the Panel of Voluntary Arbitrators. – The Commission,
its Regional Offices and the Regional Directors of
economic provisions of [the CBA]) [Art. the DOLE:
274]. 1. Shall not entertain disputes, grievances or
matters under the exclusive and original
Note: Gross violations of the CBA shall mean jurisdiction of the Voluntary Arbitrator or panel
flagrant and/or malicious refusal to comply with of Voluntary Arbitrators and
the economic provisions of such agreement. 2. Shall immediately dispose and refer the
same to the grievance machinery or Voluntary
Arbitration provided in the Collective Bargaining
Termination Cases: Plenary Jurisdiction Agreement.
of Voluntary Arbitrator vis-à-vis Labor
Arbiter
Termination cases arising in or resulting from Article 224 (c). Jurisdiction of the Labor Arbiters and
the interpretation and implementation of CBAs the Commission. – Cases arising from the
interpretation or implementation of CBAs and those
and interpretation and enforcement of
arising from the interpretation or enforcement of
company personnel policies which were initially company personnel policies shall be disposed of by
processed at the various steps of the plant- the LA by referring the same to the grievance
level Grievance Procedures under the parties' machinery and VA as may be provided for in said
CBAs fall within the original and exclusive agreements.
jurisdiction of the VA.
Option – Voluntary Arbitration
If such is filed before the LA, these cases shall
be dismissed by the LA for lack of jurisdiction Article 278 (h). Strikes, Picketing and Lockouts. –
Before or at any stage of the compulsory arbitration
and referred to the concerned NCMB Regional process, the parties may opt to submit their dispute
Branch for appropriate action towards an to voluntary arbitration.
expeditious selection by the parties of a VA or
Panel of Arbitrators based on the procedures
agreed upon in the CBA [Policy Instruction #56 Summary of Arbitrable Issues
(April 6, 1993)]. a. Interpretation or implementation of the
CBA [Art. 274]
Even if the specific issue brought before the b. Interpretation or enforcement of
arbitrators merely mentioned the question of company personnel policies [Art. 274]
“whether an employee was discharged for just c. Violations of a CBA which are not gross
cause,” they could reasonably assume that in character (gross being flagrant
their powers extended beyond the and/or malicious refusal to comply with
determination thereof to include the power to the economic provisions of [the CBA])
reinstate the employee or to grant back wages. [Art. 274]
In the same vein, if the specific issue brought d. All other labor disputes including ULP
before the arbitrators referred to the date of and bargaining deadlock, if the parties
regularization of the employee, law and agree [Art. 275]
jurisprudence gave them enough leeway as e. Wage distortions arising from
well as adequate prerogative to determine the application of any wage orders in
entitlement of the employees to higher benefits organized establishments [Art. 124]
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f. Unresolved grievances arising from the L. Prescription of Actions
interpretation and implementation of
the productivity incentives program
under RA 6971 [Book V, IRR Rule XIX.
1. Money Claims
Sec. 4].
Article 306. Money Claims. – All money claims
In general, the arbitrator [“VA”] is expected to arising from employer-employee relations accruing
decide those questions expressly stated and during the effectivity of this Code shall be filed
within three (3) years from the time the cause of
limited in the submission agreement. action accrued; otherwise they shall be forever
However, since arbitration is the final resort for barred.
the adjudication of disputes, the arbitrator can
assume that he has the power to make a final
settlement. All money claims accruing prior to the
effectivity of the Code
[The VA has] plenary jurisdiction and authority a. Shall be filed with the appropriate
to interpret the [CBA] and to determine the entities established under this Code
scope of his [or her] own authority. [...] Subject within one (1) year from the date of
to judicial review, this leeway of authority [and] effectivity, and
adequate prerogative is aimed at b. Shall be processed or determined in
accomplishing the rationale of the law on accordance with the implementing
voluntary arbitration – speedy labor justice rules and regulations of the Code;
[Goya, Inc. v. Goya, Inc. Employees Union- c. Otherwise, they shall be forever
FFW, G.R. No. 170054 (2013)]. barred.
2. Remedies Workmen's compensation claims accruing

prior to the effectivity of this Code and during
the period from November 1, 1974 up to
Motion for Reconsideration December 31, 1974.
The absence of a categorical language in Art a. Shall be filed with the appropriate
[276] does not preclude the filing of a motion regional offices of the Department of
for reconsideration of the VA’s decision within
Labor not later than March 31, 1975;
the 10-day period [Teng v. Pahagac, G.R.
b. Otherwise, they shall forever be
169704 (2010)].
barred.
c. The claims shall be processed and
Appeal adjudicated in accordance with the law
The decision of a Voluntary Arbitrator or panel and rules at the time their causes of
of Voluntary Arbitrators is appealable by action accrued.
ordinary appeal under Rule 43 of the Rules of
Civil Procedure directly to the Court of Appeals The Labor Code has no specific provision on
[AMA Computer College-Santiago City, Inc. v. when a monetary claim accrues. Thus, again
Nacino, G.R. No. 162739 (2008)]. the general law on prescription applies. Art.
1150 of the Civil Code provides that, “The time
But See: Guagua National Colleges v. CA, for prescription for all kinds of actions, when
G.R. 188412, Aug. 28, 2018, the 10-day period there is no special provision which ordains
under Article 276 of the Labor Code refers to otherwise, shall be counted from the day they
the filing of a motion for reconsideration vis-à- may be brought.”
vis the Voluntary Arbitrator's decision or award,
while the 15 days is the period to file petition for The day the action may be brought is the day a
review under Rule 43 of the Rules of Court. claim started as a legal possibility [Anabe v.
Asian Construction, G.R. No. 183233 (2009)].
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2. Illegal Dismissal 4. Offenses under the Labor Code
Article 1146, Civil Code. – The following actions Article 305, LC. – Offenses penalized under this
must be instituted within four years: Code and the rules and regulations issued pursuant
a. Upon an injury to the rights of the plaintiff; thereto shall prescribe in three (3) years.
b. Upon a quasi-delict;
However, when the action arises from or out of any
act, activity, or conduct of any public officer involving Article 305, Civil Code. – Offenses penalized
the exercise of powers or authority arising from under this Code and the rules and regulations issued
Martial Law including the arrest, detention and/or pursuant thereto shall prescribe in three (3) years.
trial of the plaintiff, the same must be brought
within one year [As amended by PD No. 1755, Dec.
24, 1980.] 3 years, except ULP (see: above)
4 Years from Dismissal 5. Illegal Recruitment

In illegal dismissal cases, the employee
concerned is given a period of four years from Illegal recruitment cases under this Act shall
the time of his dismissal within which to institute prescribe in five (5) years.
a complaint. This is based on Art. 1146 of the
Civil Code which states that actions based Provided, however, that illegal recruitment
upon an injury to the rights of the plaintiff must cases involving economic sabotage as defined
be brought within four years [Victory Liner, Inc. herein shall prescribe in twenty (20) years
v. Race, G.R. No. 164820 (2007)]. [Migrant Workers and Overseas Filipinos Act of
1995, Sec. 12].
3. Unfair Labor Practice
All unfair labor practice arising from Book V

a. Shall be filed with the appropriate
agency within one (1) year from
accrual of such unfair labor
practice;
b. Otherwise, they shall be forever
barred.
Art. 258. Concept of unfair labor practice

and procedure for prosecution thereof – No
criminal prosecution under this Title may be
instituted without a final judgment finding that
an unfair labor practice was committed, having
been first obtained in the preceding paragraph.
During the pendency of such administrative

proceeding, the running of the period of
prescription of the criminal offense herein
penalized shall be considered interrupted:
a. The final judgment in the administrative
proceedings shall not be binding in the
criminal case nor be considered as
evidence of guilt
b. But merely as proof of compliance of
the requirements therein set forth.
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MB07C FY3AUI9N

TABLE OF CONTENTS 7. Penalty ............................................................... 22

g. Against False Reporting ............................. 53 2. Dependents and Beneficiaries ....................... 79

a. SEBA Certification ................................... 104 b. Mandatory Procedural Requirements .... 124

2. Labor Arbiter vs. Regional Director .......... 171

LABOR 1 LABOR LAW

I. GENERAL PRINCIPLES choosing for purposes of

A. Basic Policy on Labor Ambulant, intermittent and itinerant workers,

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

Article 5. Rules and Regulations. – The Department

Article 6. Applicability. – All rights and benefits

LABOR 1 LABOR LAW

II. RECRUITMENT AND Overseas Filipino Worker/Migrant Worker –

LABOR 1 LABOR LAW

both indirectly, (c) The Secretary of Labor and Employment or his

a. Labor Code b. R. A. No. 8042, as Amended by R.A.

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

Not allowed [7 acts under

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

b. Any of the 3. Liability of Local Recruitment

LABOR 1 LABOR LAW

Non- In every case, conviction carries with it:

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

Contents of the Publication: General Rule: 1 year

LABOR 1 LABOR LAW

Grounds for Denial [Mi-Fa-Co-Mi-CAW- Effect of Denial/Revocation or

LABOR 1 LABOR LAW

When and Where to File

The decision of the DOLE Secretary shall be

Employing aliens without valid AEP:

Failure to pay penalty: not allowed to employ

LABOR 1 LABOR LAW

III. LABOR STANDARDS current labor dispute or because of any

Does not include any labor organization or any Elements of an EER

LABOR 1 LABOR LAW

Competent and Relevant Evidence Doctrine Illustrated in Jurisprudence

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

Definition g. Persons in Personal Service of

The definition of “Kasambahay” excludes: Definition

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW

Shall hold regular office hours for eight (8)

LABOR 1 LABOR LAW

Lectures, Meetings, Trainings On Call

LABOR 1 LABOR LAW

LABOR 1 LABOR LAW