LABOR ARBITRATION

&
Social Legislations
By: Atty. SONNY G. MATULA
National President, Federation of Free Workers
Former Commissioner, Social Security Commission;
Former Executive Director V, Presidential Anti-Graft
Commission;
Law Lecturer, UPH-College of Law
UM-College of Law and MLQU-School of Law;
UE LAW CENTER
JUNE 18, 2016
 Dreamers!
The dreamers of the
The dreamers Night forget their
of the day dreams after the woke
& the Up in the morning
dreamers of The dreamers of the day
The night Pursue their dreams
with open eyes.
- Lawrence of Arabia
 Law & Jurisprudence

Law
–Constitution, legislative acts,
administrative issuances

Jurisprudence
–Decisions of the SC
ILO Convention Part of Law of the land

 In the recent case of The Heritage

Hotel Manila vs. National Union of
Hotel, Restaurant and Allied Industries
(G.R.178296, January 12,2011), the
court treats ILO Convention No 87
with high respect as a binding law.
 Sources of Labor Law

 Primary;
 Secondary; or
 Auxiliary.
The primary sources of the laws

 (1) the Constitution

 (2) legislation passed by congress
 (3) decisions of the Supreme Court;
(4) implementing rules and
regulations;
 (5) decisions of the quasi-judicial
bodies
 Secondary sources

 (1) opinion of the Labor Secretary or

Justice Secretary; (2) reports, debates,
hearings conducted by Congress; (3)
labor law reviews; (4) labor law and
social legislation textbooks; (5) opinion
of legal luminaries; and (6) foreign
laws and jurisprudence.
 Auxiliary Sources

 usages, procedures and agreements

that are common to particular
enterprise and specific groups of
workers (i.e. collective bargaining
agreements, constitutions and by-
laws of various labor unions and
grievance settlements).
 The Constitution is
Supreme
 In the hierarchy of laws, the Constitution is
supreme. No branch or office of the
government may exercise its powers in any
manner inconsistent with the Constitution,
regardless of the existence of any law that
supports such exercise. The Constitution
cannot be trumped by any other law. All
laws must be read in light of the
Constitution. Any law that is inconsistent
with it is a nullity. (Sameer vs Cabiles, Aug
5, 2015)
A law that was already declared
unconstitutional remains as such

 Thus, when a law or a provision of law is

null because it is inconsistent with the
Constitution, the nullity cannot be cured by
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
circumstances have so hanged as to warrant
a reverse conclusion. (Sameer vs Cabiles,
August 5, 2014).
 A society that cares
 Years ago, a young mother was making her way across the
hills of South Wales, carrying her tiny baby in her arms, when
she was overtaken by a blinding blizzard. She never reached
her destination and when the blizzard had subsided her body
was found by searchers beneath a mound of snow. But they
discovered that before her death, she had taken off all her
outer clothing and wrapped it about her baby. When they
unwrapped the child, to their great surprise and joy, they
found he was alive and well. She had mounded her body over
his and given her life for her child, proving the depths of her
mother love. Years later that child, David Lloyd George, grown
to manhood, became prime minister of Great Britain, and,
without doubt, one of England’s greatest statesman.
 James S. Hewett, Illustrations Unlimited, Tyndale, 1972, p.
375.
 Transformation or
incorporation
 “Under the 1987 Constitution,
international law can become part of
the sphere of domestic law either by
transformation or incorporation.
The transformation method requires
that an international law be
transformed into a domestic law
through a constitutional mechanism
such as local legislation.
 Incorporation

 “The incorporation method applies

when, by mere constitutional
declaration, international law is
deemed to have the force of domestic
law.” (Pharmaceutical and Health Care
Association of the Philippines v. Duque
III, 535 SCRA 265 [2007])
 Pacta Sunt Servanda

 The pacta sunt servanda rule is the

cornerstone of the law of treaties.
 Fulfillment of treaty obligations is
essential to stable international
relations and promote trust and
cooperation between States. Deutsche
Bank AG Manila Branch vs. CIR ( G.R.
No. 18850 promulgated August 19,
2013)
 Social Legislation
Social Legislation is broader than
Labor Laws. It also includes laws
that provide particular kinds of
protection or benefits to society
or segments thereof in furtherance
of social justice -- i.e. Social
Security law, health care law,
agrarian reform law,And the law on
migrant workers.
 Bar Question
Is there a distinction between
labour legislation and social
Legislation? (1995)

•Labour Laws – limited in scope,

deals with rights and duties of
employees and employers
•Social legislation – more
encompassing
 Labour

Physical or
What is mental exertion
Labour?
Necessary to
Produce goods/
deliver services
Broader concept: Labor may include
the labor force who are employed or
those who are willing work but are
temporarily unemployed.
Social Justice

 “He wHo Has less

in life should
have more in
law!”

 - Ramon Magsaysay
 Social Justice
Calalang vs
Williams, Humanization Equalization
70Phils 726 of laws S&E forces
Social justice is the promotion of the welfare of all the
people, the adoption by the government of measures
calculated to insure economic stability of all the
component elements of society thru the maintenance of
proper economic equilibrium in the interrelations of the
members of the community, constitutionally, thru the
adoption of measures legally justifiable, or extra-
constitutionally, thru the exercise of the power of the
government, based on the time-honored principle of salus
populi est suprema lex.”
 “The social justice
principles of labor law
outweigh or render
inapplicable the civil
law doctrine of unjust
enrichment…”

- Justice Carpio Morales

in an en banc decision (Garcia & Dumago vs PAL,
G.R. 164856, Jan 20, 2009)
 Social justice does allow
oppression to employer
 “After all, in the eyes of all fair minded men
(and women), injustice to the more affluent
and fortunate sectors of society cannot be
less condemnable and reprehensible, and
should be avoided as much as injustice to
labor and the poor,” SC said in Federation of
Free Farmers vs. Court of Appeals (107
SCRA 352, 362-3, September 10, 1981)
 Labor Standards

Employer
Terms,
Set out Must
Conditions &
the minimum Provide or
benefits
Comply with

to which workers are entitled

as a matter of right.
 Minimum Standards Workers are
entitled to as a matter of right:

 Minimum wage  Paternity leave

 Holiday pay  Parental leave for
 Overtime pay solo parent
 Night shift  Leave for victims
differential against women and
 Service charges children
 Service incentive  13th month pay
leave  Separation pay
 Maternity leave  Retirement pay
Social security and welfare lesgislation

 Socialsecurity (RA 8282)

 Employees’ Compensation

 Philhealth

 Pag-ibig
 Labor Relations

define That govern

As well as
Status, Individual &
Institutional
rights & Collective
mechanism
duties interactions

between employers, employees and

their representatives.
 Labor Code

What is Codification into

Labor Code? One volume of 60
PD 442, as pieces of law
amended
8 hr law,
min wage law,
termination law
 Labor Code

 Preliminary Title  Book 4: Health

 Book 1: Pre- Safety and Social
employment Benefits
 Book 2: Human  Book 5: Labor
Resource Dev’t Relations
 Book 3: Conditions  Book 6: Post
of Employment Employment
 Book 7: Transitory
and Final Provisions
ILO Core Labor
Standards
 the prohibition of slavery and
compulsory labor (C29; C105),
 the elimination of
discrimination (C100;C111),
 the prohibition of exploitative
child labor (C182),
 freedom of association and the
right to collective bargaining
(C87;C98)
ILO CONVENTION # 102 (1952)

 THE SOCIAL SECURITY (MINIMUM

STANDARDS)
 Identifies nine (kinds) of benefits
– Medical care - Employment injury
– Sickness - old age
– Unemployment - family benefits
– Maternity - survivors’ benefits
– invalidity
 Basic Constitutional Rights

1.Right to organize;
Article XIII 2.Right to CB & Nego;
Section 3 3.Peaceful concerted
1987 Consti- activities, strike;
tion
4.Security of tenure;
5.Humane condition
of work; 6.living wage;
& 7.participate in
Decision making
Management Prerogative
 In SAMEER OVERSEAS PLACEMENT AGENCY
vs. JOY C. CABILES, August 5, 2014), Justice Leonen said:

 Employers have the prerogative to

impose productivity and quality
standards at work. They may also
impose reasonable rules to ensure that
the employees comply with these
standards.Failure to comply may be a
just cause for their dismissal.
 Management Prerogative

Established
CBA Laws
company practice

Everything concerning the business

Management Prerogative

 Theauthority to hire is likewise

covered and protected by its
management prerogative. (J.
Peralta, St. Paul College of Qc vs Spouses
Ancheta, September 7, 2011, GR No
169905)
Right to regulate all
aspects of employment
 (1) hiring  (5) supervision of
 (2) the freedom to their work
prescribe work  (6) lay-off and
assignments discipline, and
 (3) working  (7) dismissal and
methods, process recall of workers (J.
to be followed Peralta, St. Paul College of
Qc vs Spouses Ancheta,
 (4) regulation September 7, 2011, GR No
regarding transfer 169905)

of employees
Management Prerogatives emanate
from an owner’s property right

 Managerial Prerogatives are considered

natural rights that allow employers to
manage their business/employees

 Article 428 of the Civil Code provides that:

“the owner has the right to enjoy and
dispose of a thing, without other limitations
other than those established by law.”
 Jurisdiction

 Authority to hear and decide

– Labor Arbiter of NLRC (Article 217, PD

442, as amended)
– Voluntary Arbitrator (Arts. 261 & 262)
– Secretary of Labor (Arts 128, 129 &
263g)
– PRC/DECS/CSC
 LABOR ARBITER

 a. Original and exclusive jurisdiction

to hear and decide the following cases
involving all workers, whether
agricultural or non-agricultural:
 1. Unfair labor practice cases;
 2. Termination disputes;

 Labor Arbiter

 3. If accompanied with a claim for

reinstatement, those cases that
workers may file involving wages,
rates of pay, hours of work and other
terms and conditions of employment;
 4. Claims for actual, moral,
exemplary and other forms of
damages arising from employer-
employee relations;
 Labor Arbiter

 5. Cases arising from any violation of

Article 264 of the Labor Code, as
amended, including questions
involving the legality of strikes and
lockouts;
 Labor Arbiter
 6. Except claims for employees compensation
not included in the next succeeding paragraph,
social security, medicare, and maternity benefits, all
other claims arising from employer-employee
relations, including those of persons in domestic or
household service, involving an amount exceeding
Five Thousand Pesos (P5,000.00), whether or not
accompanied with a claim for reinstatement;
 Labor Arbiter

 7. Wage distortion disputes in

unorganized establishments not
voluntarily settled by the parties
pursuant to Republic Act No. 6727;
 8. Enforcement of compromise
agreements when there is non-
compliance by any of the parties
pursuant to Article 227 of the Labor
Code, as amended;
 Labor Arbiter
 9. Money claims arising out of employer-
employee relationship or by virtue of any law or
contract, involving Filipino workers for overseas
deployment, including claims for actual, moral,
exemplary and other forms of damages as provided
by Section 10, Republic Act No. 8042, as amended
by Republic Act No. 10022; and

 10. Other cases as may be provided by law.

 Commission Proper
 1. Cases decided by the Labor Arbiter;
 2. Cases decided by the Regional Directors or hearing
officers on small money claims;
 3. Cases of national interest certified to by the Secretary of
Labor;
 4. Petitions for injunctions or temporary restraining order
under Article 218 (e) of the Labor Code, as amended; and
 5. Petition to annul or modify the order or resolution
(including those issued during execution proceedings) of the
Labor Arbiter.


Jurisdiction of Voluntary Arbitrators or
Panel of Voluntary Arbitrators (Art. 261-
262, Labor Code)

 Exclusive and original jurisdiction to

hear and decide all grievances:
 Arising from the implementation or
interpretation of the collective
bargaining agreements;
 Arising from the interpretation or
enforcement of company personnel
policies;
Voluntary Arbitrator
 Wage distortion issues arising from the application of any
wage orders in organized establishments (Par. 4, Art. 124, RA
6727);
 “Where the application of any prescribed wage
increase by virtue of a law or Wage Order issued by any
Regional Board results in distortions or wage structure within
an establishment, the employer and the union shall negotiate
to correct the distortions. Any dispute arising from wage
distortion shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless otherwise
agreed by the parties in writing, such dispute shall be decided
by the voluntary arbitrators within ten (10) calendar days
from the time said dispute was referred to voluntary
arbitration.”
Voluntary Arbitrator
 4. Unresolved grievances arising from the interpretation and
implementation of the productivity incentive programs under RA
6971.
Sec. 9, RA 6971
 Sec. 9. Disputes and Grievances – Whenever disputes, grievances, or
other matters arise from the interpretation or implementation of the
productivity incentive program, the labor-management committee shall meet
to resolve the dispute, and may seek the assistance of the National
Conciliation and Mediation Board of the Department of Labor and
Employment for such purpose. Any dispute which remains unresolved within
twenty (20) days from the time of its submission to the labor-management
committee shall be submitted for voluntary arbitration in line with the
pertinent provisions of the Labor Code as amended.
 The Productivity incentives program shall include the name(s) if the voluntary
arbitrator or panel of voluntary arbitrators previously chosen and agreed upon
by the labor-management committee.
Voluntary Arbitrator

 Concurrent Jurisdiction
 Any other labor dispute upon agreement of the party may be
submitted to a voluntary arbitrator or panel of voluntary arbitrators.
 Before or at any stage of the compulsory arbitration process, the
parties may opt to submit to their dispute to voluntary arbitration.

 The NLRC and its Regional Branches as well as the Regional

Directors of the DOLE are prohibited from entertaining disputes,
grievances or matters under the exclusive and original jurisdiction of
the voluntary arbitrator or panel of voluntary arbitrators. They shall
immediately dispose and refer the same to the appropriate grievance
machinery or voluntary arbitration provided in the collective
bargaining agreement.
Powers of the Voluntary Arbitrators or
Panel of Voluntary Arbitrators (Sec. 4,
Rule XI, Book V)

 To hold hearings;
 To receive evidence;
 To take whatever action is necessary to resolve the
issue/s subject of the dispute;
 To conciliate or mediate to aid the parties in
reaching a voluntary settlement of the dispute;
 To issue a writ of execution to enforce final
decisions, orders, resolutions or awards.
 Labor Arbiter on Termination

 The labor arbiter, the appellate court, and the NLRC differed in their rulings
on the matter of jurisdiction. The labor arbiter and the appellate court
agreed with Ayson and the union’s position. The labor arbiter assumed
jurisdiction and emphasized that when the union met with Landtex on 8 July
1996, Ayson was no longer an employee becauseLandtex terminated him
effective 30 June 1996. The manifestation of the union’s desire to “refer the
matter to a third party in accordance with law and the CBA” does not deviate
from the fact that Ayson was already dismissed. On the other hand, the
NLRC sustained Landtex and William Go’s position. The NLRC asserted that
the determination of whether Ayson’s dismissal constitutes a “disciplinary
action” within the scope of the CBA calls for an interpretation of the
CBA. When the union called for a meeting withLandtex, the union effectively
initiated the grievance procedure. Thus, Ayson’s case should have been
subjected to voluntary arbitration.
 The SC agreed with Ayson and the union and affirm the rulings of the labor
arbiter and the appellate court. (Landtex vs Ayson and FFW, August 9, 2007)
Termination disputes fall under the
jurisdiction of the labor arbiter

 Article 261 of the Labor Code provides that voluntary arbitrators

shall have original and exclusive jurisdiction to hear and decide all
unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those
arising from the interpretation or enforcement of company personnel
policies. On the other hand, a reading of Article 217 in conjunction
with Article 262 shows that termination disputes fall under the
jurisdiction of the labor arbiter unless the union and the company
agree that termination disputes should be submitted to voluntary
arbitration. Such agreement should be clear and unequivocal.
Existing law is an intrinsic part of a valid contract without need for
the parties to expressly refer to it. Thus, the original and exclusive
jurisdiction of the labor arbiter over unfair labor practices,
termination disputes, and claims for damages cannot be arrogated
into the powers of voluntary arbitrators in the absence of an express
agreement between the union and the company (Landtex vs Ayson)
Labor Arbiter and Regular Court

 Illegal termination of officers or other

employee of a private corporation is
under LA (Article 217,PD 442, as
amended)
 Corporate officers is under RTC (PD
902-A, amended by RA 8799)
 Corporate Officers

 Section 25 of PD 907-A enumerates

them:
– President;
– Secretary;
– Treasurer
– Such other officers in the by laws
 Corporate Officers

 “Conformably with Section 25, a

position must be expressly mentioned
in the By-laws in order to be
considered as corporate office. Thus,
the creation of an office pursuant to or
under a By-Law enabling provision is
not enough to make a position a
corporate office.xxx” (Matling Industrial &
Commercial Corp vs Coros [633 SCRA 12], 2010)
 Damages on EE-ER

 It is settled under this jurisdiction that

employer’s claim for damages arising
from employer-employer relationship
is outside the jurisdiction of the
regular court (Article 217 of the Labor
Code as amended; Banez vs Hon.
Valdevilla, G.R. No. 128024, May 9,
2000)
School may adopt its own
standards
 As long as the standards fixed are
reasonable and not arbitrary, courts
are not at liberty to set them aside.
Schools cannot be required to adopt
standards which barely satisfy criteria
set for government recognition.
(Mercado, et al. v. AMA Computer College-
Parañaque City, Inc., G.R. No. 183572, April 13,
2010, 618 SCRA 218, 233).
Not to renew contract

 “This is a right of the school that is

mandated by law and jurisprudence. It
is the prerogative of the school to set
high standards of efficiency for its
teachers since quality education is a
mandate of the Constitution.” (J. Peralta,
St. Paul College of Qc vs Spouses Ancheta,
September 7, 2011, GR No 169905)
Closure of business is a management
prerogative

Dangan vs NLRC, 127 SCRA 706:

Abolition of a department or section of an
employer’s establishment for economic reasons
is a managerial prerogative.

Coca Cola vs. NLRC, 194 SCRA 592:

Closure or cessation of an establishment not due
to serious business losses includes the complete
cessation of operations of only part of
company’s activities.
 Teaching is not only
governed by Labor Code
 In the consideration of employment on
probationary status of teaching personnel,
such is not governed purely by the Labor
Code (Mercado, et al. v. AMA Computer College-Parañaque City,
Inc., G.R. No. 83572, April 13, 2010, 618 SCRA 218, 233)
 1

 The LC is supplemented with respect to the

period of probation by special rules found in
the Manual of Regulations for Private
Schools. (Magis Young Achievers' Learning Center v. Manalo,
G.R. No. 178835, February 13, 2009, 579 SCRA 421, 431-438)
 Written Contract

 Before the start of the term, the institution

shall execute a written contract with its
teaching and non-teaching personnel
 The contract does not affect tenure of
permanent or part-time employees
 Binds them to finish the entire school term
and comply all requirements (Sec 116,
Manual, 2008.
Provisionary under the LC

 Art 287. Probationary employment –

Probationary employment shall not
exceed six (6) months from the
employee started working, unless
covered by an apprenticeship
agreement stipulating a longer period.
xxx. An employee who is allowed to
work after a probationary period shall
be considered a regular employee.
PROBATIONARY EMPLOYEE

 an employee’s failure to perform the duties

and responsibilities
 which have been clearly made known to him
 constitutes a justifiable basis for a
probationary employee’s non-regularization.
 (Abbott Laboratories, Phils., et al vs. Pearlie
Ann F. Alcar [April 22, 2014])
Probationary Employment
under the Manual (2008)
 Section 117. Probationary Period. –
xxx

 Probationary employment for

academic teaching personnel shall not
be more than six (6) semesters or nine
(9) trimesters of satisfactory service,
as the case maybe. (Manual, 2008)
 Part-time Teachers

 Academic personnel who do not

possess minimum qualification under
Sections 35 and 36 of the Manual are
considered part-time employees
 PTs cannot avail of the status &
privileges of a probationary employee
 PTs cannot acquire permanent regular
status (Section 117 of the Manual, 2008)
 Permanent Status

 Full-time academic personnel

 Satisfactorily qualified probationary
employment
 Possess minimum qualifications
 Rehired immediately after
probationary employment (Section 118
of the Manual, 2008)
 The state regulates relations
between workers & employers

SEC 3 (par. 4) , ARTICLE XIII OF THE CONST:

“The state shall regulate the relations between
workers and employers,
 recognizing the right of labor to its just share
in the fruits of production and
 the right of enterprises to reasonable returns
on investments, and to expansion and growth.”
Employment is a property right

Callanta vs Carnation Phils, 145 SCRA 268:

“It is a principle well recognized under this
jurisdiction, that one’s employment, profession,
trade or calling is a property right, and the
wrongful interference therewith is an
actionable wrong. The right is considered to be
property right within the protection of the
constitutional guarantee of due process of law.”
Is an OFW has security of
tenure?
 Employees are not stripped of their
security of tenure when they move to
work in a different jurisdiction. With
respect to the rights of overseas
Filipino workers, we follow the
principle of lex loci contractus.
(Sameer Placement Agency vs Joy
Cabiles, August 5, 2014)
 Just causes for termination

Article 288 (old 282):

1. Serious misconduct or willful disobedience of lawful

orders
2. Gross and habitual neglect of duties
3. Fraud or willfull breach of trust
4. Commission of a crime
5. Other analogies cases
1. Abandonment
2. Defiance of the AJO of Labor Secretary
 Authorized causes for
termination
Article 289 (old 283):

1. Introduction of labor saving device

2. Redundancy
3. Retrenchment
4. Closure

Article 290 (old 284: disease

Article 291 (old 285): Retirement
 Gross misconduct

In the case of Molato vs. NLRC, the Supreme Court

ruled:

“For misconduct or improper behavior to be a just

cause for dismissal the same must be related to the
performance of the employee’s duties and must
show that he has become unfit to continue
working for the employer.”
Grossly immoral Conduct

 A teacher’s act of entering into said second

marriage constitutes grossly immoral
conduct. No doubt, such actuation
demonstrates a lack of that degree of
morality required of him as a member of the
teaching profession. When he contracted
his second marriage despite the subsistence
of the first, he made a mockery of marriage,
a sacred institution demanding respect and
dignity. (Rene Ventenilla Puse vs Ligaya Delos Santos
Puse, March 15, 2010, GR No. 183678)
Is falling in love to a student an
immoral conduct?
 “If the two fell in love, despite disparity in
their age and academic levels, this only
lends substance to the truism that the heart
has reasons that of its own which reason
does not know
 “But, definitely, yielding to this gentle and
universal emotion is not to be so casually
equated with immorality.”
 (Evelyn Chua-Qua vs Hon Jacobo Clave,
G.R. 49549[August 30,1990)
 Marriage between persons despite
differences of ages of 14 years is not
defiance of contemporary norms

 “The deviation of the circumstances of

their marriage from the social pattern
cannot be considered as defiance of
the contemporary social norms.”
(Evelyn Chua-Qua vs Hon. Jacobo
Clave, G.R. 49549 [August 30, 1990]).
 Insubordination

 Isabelo vs. NLRC:

“In order for insubordination to be a

valid or just cause for dismissal, the
employee’s assailed conduct must have
been willful or intentional, the
willingness being characterized by a
wrongful and perverse attitude, and the
order violated must have been reasonable,
lawful, made known to the employee and
must pertain to the duties which he had
been engaged to discharge.”
 Willful dis-obedience

 The conduct must be willful or

intentional, willfulness being
characterized by wrongful and
perverse mental attitude (Nissan
Motors vs Angelo, 657 SCRA 520, 529-
30)
Refusal to comply due to
pending criminal
complaint
 Employer failed to prove that
Montallana’s non compliance to
apologize was “willfull or intentional”,
the dismissal is illegal (Montallana vs
La Consolacion College Manila, Dec 8,
2014).
 Non-compliance to apologize invoking
“self-incrimination” due to a pending
case.
Refusal to submit to drug test
(2012)

 Employees’ refusal to submit

themselves to drug test is a just cause
for their dismissal
 serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representative in connection with his
work (KAKAMPI vs Kingspoint
Express,G.R. 194813, April 25, 2012)
 KAKAMPI vs Kingspoint Express
(April 25, 2012): Define, willfull
disobedience
 (1) the employee's assailed conduct must
have been willful, that is, characterized by a
wrongful and perverse attitude; and
 (2) the order violated must have been
reasonable, lawful, made known to the
employee, and must pertain to the duties
which he had been engaged to discharge.
Both elements are present in this case.
Two (2) Tests in Drug cases

 Section 36 of R.A. No. 9165 provides

that drug tests shall be performed only
by authorized drug testing centers.
 Moreover, Section 36 also prescribes
that drug testing shall consist of both
– the screening test and
– the confirmatory test.
Automotive Engine Rebuilders Inc. vs
Progressibong Manggagawa sa AER
(G.R. 163138, July 13, 2011).
 Serious business losses

North Davao Mining Dev. Corp. vs

NLRC, 254 SCRA 721:

When the closure is due to

serious business losses, Art 283
does not obligate payment of
separation pay.

One cannot squeeze blood

from a dry stone. Nor water out
of parched land.
 Jurisdiction on EE-ER Relationship

Rep. of Phils. Q: Question of EE-ER

Represented by exclusive with NLRC?
SSS & SSC vs
Asiapro Coop Ans: No. SSC not NLRC
(Nov 23, 2007): resolves EE-ER
on SS coverage.
The question of the existence of an employee-employer relationship is
not the exclusive jurisdiction of the NLRC. Article 217 (a) (6) of the
Labor Code exempts from its jurisdiction claims for Social Security, xxx.
Hence, the Social Security Commission has primary jurisdiction on
question of an existence employee-employer for purposes of determi-
ning the coverage of SSS (Sec 5 of SS Law of 1987, R.A. 8282)
 No EE-ER stipulation binding?

Q: Is the no EE-ER
Rep. of Phils. stipulation binding
Represented by To parties in contract?
SSS & SSC vs
Asiapro Coop Ans: No. provision must
(Nov 23, 2007): be struck down as
it circumvents the law
The Service contract in question must be struck down for
being contrary to law and public policy since it is apparently
being used by the respondent cooperative merely to
circumvent the compulsory Coverage of its employees,
who are also its owners-members,
by the social security law.
Other than the NLRC, can the
Secretary of Labor Determine
EE/ER Relationship?
 Yes! No limitation in the law was placed
upon the power of the DOLE to determine
the existence of an employer-employee
relationship. No procedure was laid down
where the DOLE would only make a
preliminary finding, that the power was
primarily held by the NLRC (Bombo Radyo
vs Sec of Labor, Regional Dirctor and
Juezan, March 6, 2012)
 Bombo Radyo case

 Bombo Radyo case recognizes the

validity of the Department of Labor
and Employment’s (DOLE’s) plenary
power under Article 128(b) of the
Labor Code, as amended by Republic
Act No. 7730, including its power to
determine the existence of employer-
employee relationship in the exercise
of its Article 128(b) power.
DOLE has power to determine
employer-employee relationship

 The DOLE must have the power to

determine whether or not an
employer-employee relationship exists,
and from there to decide whether
or not to issue compliance orders
in accordance with Art. 128(b) of the
Labor Code, as amended by RA 7730
 SOCIAL PROTECTION

 LABOR PROTECTION

 SOCIAL SECURITY
Centesimus Annus (1991)
 Social Teaching calls for the adoption of
adequate social protection for all workers
(C.A. # 10)
 i.e. Unemployment insurance, pension,
health insurance & compensation in case of
accident
 as measure to restore dignity of work and to
ensure fair wage levels for the maintenance
of worker and his family
 Workers’ movement has big role in the
adoption of these social protection.
WHAT IS SOCIAL SECURITY?

Social Security is the

protection that society gives to
its members against the
economic and social distresses
caused by contingencies such as
sickness, child birth, disability,
retirement and death.
Early forms of social Support

 Societies have devised ways to

support people who cannot
support themselves
 particularly older people, persons
with disabilities, widows &
orphans
 Concept of solidarity & protection
Origin of Social Protection
 The Code of Hammurabi (18th century BC) is one of
the oldest documents to discuss social protection
for widows and orphans
 “Poor laws” of England in the 16th Century
– Almshouses for old and sickly
– Workhouses for unemployed
 Trade unions developed their social insurance and
mutual aid societies in England, Sweden & Germany
in the 18th century
 Bismarck created the 1st broad system of social
insurance in Germany in the 19th century
“Social Security” obscure origin

 SS can be traced to a bill entitled

“Economic and Security Act”
introduced during the economic crisis
in 1930s
 Passed into law by US Congress “The
Social Security Act (1935)”
 In the Phiippines, Magsaysay signed
into law in 1954 and SSS started
operations in 1957.
FEATURES OF SSS (R.A. 8282)
As a Social Insurance Program:

• Coverage is compulsory
• Contributions are shared between the employer
and employee
• Funds are pooled to pay for the members’
benefits
• Surplus funds are put on reserve and are
invested
• Amount of benefits depends on contributions
paid
• There are inter-generation cross-subsidies
SSS COVERAGE
Mandatory Coverage

Employees
• Workers from the private sector; not
over 60 years of age
• Household helpers;
• Seafarers deployed by local manning
agencies in foreign ships
• Public utility drivers
Who is an employee?

Under “boundary system”, a jeepney

driver is an employee of the jeepney
owner. Though the driver is not paid a
fixed wage, and he remits boundary
and shoulders gas expenses, these
factors themselves do not create
lessor-lessee relationship. Owner still
exercise control and supervision over
the driver.(Jardin v. NLRC, 326 SCRA
299)
How control exercise over
the driver?
 The owner sees to it that his driver
negotiates or follows the government
prescribed route in accordance with
the franchise given by the LTFRB
 In lease, the lessor loses complete
control or possession over the chattel
 In boundary system, the owner retains
control over his vehicle. (Jardin vs.
NLRC, 326 SCRA 299)
 Working scholars not
employees
 Students who work for the school or
university in exchange for the privilege
to study free of charge, provided they
are given real opportunity, including
such facilities as may be reasonably,
necessary to finish their chosen course
under the arrangement (Sec 14, Rule
III, Rules Implementing the Labor
Code).
 In civil suit, school is liable for
the act of working scholars as if
it is an employer
 In must be noted that for
purposes of imposing liability for
tortious act, the working scholar is
considered an employee and the
school as employer (Filamer
Christian Institute v. IAC, 212
SCRA 637)
 OFW is entitled to
security of tenure
 Overseas workers regardless of their
classifications are entitled to security
of tenure, at least for the period
agreed upon in their contracts. This
means that they cannot be dismissed
before the end of their contract terms
without due process. If they were
illegally dismissed, the workers’ right
to security of tenure is violated.
 SAMEER OVERSEAS PLACEMENT AGENCY vs. JOY C. CABILES, August
5, 2014).
Failure to register: “Labor
Only” contracting
 For failing to register as a contractor,
a presumption arises that one is
engaged in labor-only contracting
unless the contractor overcomes the
burden of proving that it has
substantial Capital, investment, tools
and the like. (Manila Memorial Park
vs Edzard Lluz et. Al, G.R. No.
208451, Feb 3, 2016)
Rafael Quillopa vs Quality Guards
Services (Dec 2, 2015)

 Waiver/Quitclaim and Release cannot be

construed to sever the employer-employee
relationship between respondents and
petitioner as the 1st complaints pertains to
monetary claims and the 2nd to constructive
dismissal , simply because there is nothing
therein that would operate as such. Thus, the
CA erred in dismissing the 2nd Complaint on the
ground that there is no more employer-employee
relationship between respondents and petitioner
upon the filing of the same.
 Floating status not more than
six months allowed
 Temporary off-detail or the period of time
security guards are made to wait until they
are transferred or assigned to a new post or
client does not constitute constructive
dismissal, so long as such status does not
continue beyond six months. The onus of
proving that there is no post available to
which the security guard can be assigned
rests on the employer x x x. (Rafael Quillopa
vs Quality Guards Services [Dec 2, 2015])
Constructive Dismissal of
Security Guard
 In view of their unjustified failure to
place petitioner Security Guar back in
active duty within the allowable six
(6)-month period and to discharge the
burden placed upon it by prevailing
jurisprudence, the Court is constrained
to hold respondents liable for
petitioner’s constructive dismissal.
(Rafael Quillopa vs Quality Guards
Services, Dec 2, 2015)
Samonte vs La Salle
Greenhills (Feb 10, 2016)
 Given the following: ( 1) repeated
renewal of petitioners‘ contract for
fifteen years, interrupted only by the
close of the school year;
 (2) the necessity of the work
performed by petitioners as school
physicians and dentists;
Samonte vs La Salle
(Feb 10, 2016)

 and (3) the existence of LSGI's power of

control over themeans and method pursued
by petitioners in the performance of their
job

 The SC ruled that petitioners attained

regular employment, entitled to security of
tenure who could only be dismissed for just
and authorized causes.
5-5-5 Outlawed in Purefood
case (1997)
 The workers (numbering 906) were hired by petitioner Pure
Foods Corporation to work for a fixed period of five months at
its tuna cannery plant in Tambler, General Santos City, SC
found illegally dismissed.
 SC said that since reinstatement is no longer possible because
the petitioner's tuna cannery plant had, admittedly, been
closed in November 1994, the proper award is separation pay
equivalent to one month pay or one-half month pay for every
year of service, whichever is higher, to be computed from the
commencement of their employment up to the closure of the
tuna cannery plant. The amount of back wages must be
computed from the time the private respondents were
dismissed until the time petitioner's cannery plant ceased
operation
 Digital Communications Phils.
(“Digitel”) v.Digitel Employees
Union (2012)
 Digiserv, the call center arm of Digitel, ceased
operations and retrenched 100 employees, 42 of
whom were union members. The SC held that
Digiserv was a labor-only contractor, and thus, the
retrenched employees were Digitel employees.

 The retrenchment was also found to be in bad

faith, as another call center arm, I-Tech, was later
created to perform the same functions as Digiserv,
and that the new call center even rehired some of
the retrenched employees.
Regular or DomWorker
 Linda was employed by Sectarian University (SU) to
cook for the members of areligious order who teach
and live inside the campus. While performing her
assigned task, Linda accidentally burned herself.
Because of the extent of her injuries, she went on
medical leave. Meanwhile, SU engaged a
replacement cook. Linda filed a complaint for illegal
dismissal,but her employer SU contended that Linda
was not a regular employee but a domestic
househelp. Decide. (4%) (Bar 2014)

 Suggested Answer

 I will decide in favor of Linda. The

contention of her employer Sectarian
University (SU) is not correct. Linda is
a regular employee and not a
domestic worker. She is employed by
the SU as a cook in the campus and
not “engaged in domestic work” or
performing work “in or for a
household” (R.A. 10361 [c] and [d]).
 Suggested Answer

 In APEX Mining Co., Inc. vs. NLRC

(196 SCRA 25), the Supreme Court
held that “a laundrywoman in staff
houses of a company or within the
premises of the business of the
employer, not actually serving the
family of the employer, is a REGULAR
EMPLOYEE. She is not included in the
definition of domestic servants”
 Requisites to validly
dismiss an employee
San Miguel Corp. vs. NLRC:
“The requisites to validly dismiss an
employee are:
(1) the dismissal must be for a
cause provided for under the Labor
Code; and
(2) the observance of notice
and hearing prior to employee’s
dismissal”.
 2 Notice Rule
Cabalen Management Co., Inc. vs. Jesus Quiambao,
March 14, 2007:
“An employee sought to be dismissed must be
served two written notices before the termination
of his employment.
The First notice must apprise him of the
particular acts or ommissions upon which his
dismissal is grounded;
the second, to inform him of the employer’s
decision to terminate his employment.”
Is a verbal appraisal of the charges
against the employee a breach of the
procedural due process? (King of Kings
Transport vs Mamac [June 29, 2007])
 A verbal appraisal of the charges
against an employee does not comply
with the first notice requirement.
 In Pepsi Cola Bottling Co. v. NLRC,
(210 SCRA 277) the Court held that
consultations or conferences are not a
substitute for the actual observance of
notice and hearing.
 Worker’s written explanation
does not cure lack of notice to
explain
 Also, in Loadstar Shipping Co., Inc. v.
Mesano, (408 SCRA 478) the Court,
sanctioning the employer for
disregarding the due process
requirements, held that the
employee’s written explanation did not
excuse the fact that there was a
complete absence of the first notice.
 What is a “reasonable
Opportunity”?
 “Reasonable opportunity” under the Omnibus Rules
means every kind of assistance that management
must accord to the employees to enable them to
prepare adequately for their defense.[15]
 This should be construed as a period of at least five
(5) calendar days from receipt of the notice to give
the employees an opportunity to study the
accusation against them, consult a union official or
lawyer, gather data and evidence, and decide on
the defenses they will raise against the
complaint. (King of Kings Transport vs Mamac [June 29, 2007])
 [15] Ruffy v. National Labor Relations Commission, GR No. 84193,
February 15, 1990, 182 SCRA 365, 369-370.
 “Reasonable Opportunity”?
 Detailed narration of facts -- in order to enable
the employees to intelligently prepare their
explanation and defenses, the notice should contain
a detailed narration of the facts and circumstances
that will serve as basis for the charge against the
employees. A general description of the charge will
not suffice.
 Specific company rules -- the notice should
specifically mention which company rules, if any, are
violated and/or which among the grounds under Art.
282 is being charged against the employees. (King of
Kings vs Mamac, June 27, 2007)
The evidence must be clear and
not ambivalent

Maneja vs. NLRC:

"Petitioner has been charged with a very serious offense --

dishonesty. This can irreparably wreck her life as an
employee as no employer will take to its bosom a
dishonest employee. Dismissal is the supreme penalty
that can be meted to an employee and its imposition
cannot be justified where evidence is ambivalent.[2] It
must, therefore, be based on a clear and not on an
ambiguous or ambivalent ground. Any ambiguity or
ambivalence on the ground relied upon by an employer in
terminating the services of an employee denies the latter his full
right to contest its legality. Fairness cannot countenance
such ambiguity or ambivalence
 Reliefs for illegally dismissed
employee
-As a penalty to an erring employer, the illegally dismissed employee
is entitled to reinstatement and to full backwages without any
diminution
Bustamante et al vs. NLRC:

"On 21 March 1989, Republic Act No. 6715 took effect, amending
the Labor Code. Article 279 thereof states in part:
"Article 279. Security of Tenure. An employee who is unjustly
dismissed from work shall be entitled to reinstatement without
loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other benefits or
their monetary equivalent, computed from the time his
compensation is withheld from him up to the time of his actual
reinstatement… "
 The employer has the option to reinstate an
employee who has been declared illegally dismissed,
either physically or in the payroll. The employer
must have to notify the employee of its option

Pioneer Texturizing Corp et al vs. NLRC:

“Furthermore, the rule is that all doubts in the
interpretation and implementation of labor laws
should be resolved in favor of labor. In ruling that an
order or award for reinstatement does not require a
writ of execution the Court is simply adhering and
giving meaning to this rule. Henceforth, we rule that
an award or order for reinstatement is self-executory.
Pioneer Texturizing Corp et al vs. NLRC:
“… After receipt of the decision or resolution ordering
the employee’s reinstatement, the employer has the
right to choose whether to re-admit the employee to
work under the same terms and conditions prevailing
prior to his dismissal or to reinstate the employee in
the payroll. In either instance, the employer has
to inform the employee of his choice. The
notification is based on practical considerations
for without notice, the employee has no way of
knowing if he has to report for work or not.”
(Underscoring and emphasis supplied).
If the decision declaring an employee to
have been illegally dismissed, is
reversed on appeal, the said employee is
entitled to backwages pending such an
appeal
Noah’s Ark Sugar Refinery and/ or A. Louyoco vs, NLRC:

“The right to immediate reinstatement, pending appeal to the NLRC, stems

from the constitutional right of a laborer to security of tenure.xxx.

Assuming that on appeal the finding of illegal dismissal is reversed and

ruled to be valid, the laborer is still entitled to the compensation
he shall have received during the pendency of the appeal before
the NLRC and/or the Court. The reason is simple: the laborer
rendered services during that period. The same conclusion holds for
payroll reinstatement. In this instance, the employer unilaterally opted to
pay the laborer even if the latter will not perform services for the
company during the pendency of the appeal.”
 When is the period for the computation of
backwages and separation pay supposed to
end?

Surima vs, NLRC:

“Second, as to the time frame for the computation of backwages, the

provision mentions the period from withholding of compensation up
to actual reinstatement, which period can be established with
facility. However, there may be an instance when reinstatement is
considered no longer feasible, necessitating award of separation
pay instead. The question now arises: When is the period for
the computation of backwages and separation pay
supposed to end? Gaco vs. NLRC[1] addressed the question
squarely by holding that in such circumstance, the computation
shall be up to the time of finality of this Court’s decision.
xxx.” (Underscoring and emphasis supplied).
 Every union member, unless expressly
excluded themselves, are deemed included
in the complaint filed by their union,
hence, there can be res judicata
Aldovino et al vs. NLRC:

“xxx. In Davao Free Workers Front vs. Court of Industrial

Relations, this Court ruled – 18 [No. L-29356, 31 October 1976, 60
SCRA 408, pp. 426-427.]

“The detail that the number and names of the striking members
of petitioner union were not specified in the decision nor in the
complaint is of no consequence xxx. It is the function precisely of a
labor union such as petitioner to carry the representation of its
members particularly against employers’ unfair labor practice against
it and its members and to file an action for their benefit and behalf
without joining them and to avoid the cumbersome procedure of
joining each and every member as a separate party.”
.

Union represents its members

 The right of URFA as a legitimate labor union to represent its

members is expressly guaranteed under Art. 242 of the Labor Code.
19 [Art. 242. Rights of legitimate labor organizations.- A legitimate
labor organization shall have the right:

– (a) To act as the representative of its members for the purpose

of collective bargaining; xxx

– (e) To sue and be sued in its registered name; xxx] This right,
however, does not deprive its individual members of their
concomitant right to file a case in their own names, nor of their
right to withdraw from any case filed by the union in their behalf.
More importantly, the individual member may seasonably
exercise his option to withdraw from a case filed by his union if
he does not want to be bound thereby
Members who have no manifes-
tation to withdraw, bound by
the decision
 In Philippine Land-Sea-Air Labor Union
(PLASLU), Inc. vs. CIR, 20 [93 Phil.
747 (1953)] this court ruled that only
those members of the petitioning
union who did not signify their
intention to withdraw from the case
before its trial and judgment on the
merits are bound by the outcome of
the case.”
Quitclaims and releases are not effective
bar to employees claims arising from
unfair labor practice

Lopez Sugar Corp vs. Federation of Free

Workers (FFW, 189 SCRA 179):
Quit claims executed by employee are general
frowned upon as contrary to public policy and
ineffective to bar claims for full measures of
worker’s legal right.
Quitclaims and releases are not effective
bar to employees claims arising from
unfair labor practice

Golden Farms vs. Ferrer Calleja, 175 SCRA 74:

It has been held that quitclaims are not binding if:
(a) contrary to law, morals and public policy;
(b) where voluntariness is put into issue;
(c ) where it is established that there is an
unwritten agreement entitling the employee to other
renumeration or benefits, for which claim of the
employee may be given due course.
 Strained Relationship
must be anchored on hard facts
Sagum vs. Court of Appeals (May 26, 2005):

The SC directed the erring employer to “create an

equivalent position” and immediately reinstate
petitioner without loss of seniority rights. The Court
ruled that: “the existence of strained relationships is a
factual finding and should be initially raised, argued
and proven before the labor arbiter. Petitioner is
correct in stating that the finding of strained relations
does not have any basis on the record. Indeed
nowhere was the issue raised in private respondent’s
pleadings before the Labor Arbiter and the NLRC.” It
was raised for the first time in a motion for partial
reconsideration before the CA xxx.
 Strained Relationship
must be anchored on hard facts

Sagum vs. Court of Appeals (May 26, 2005):

“As a rule, no strained relations should arise

from a valid and legal act of asserting one’s
right xxx.”
 Two Kinds of Regular employees

Rowell Industrial Corp (RIC) vs. CA and Taripe

(March 07, 2007 ):

“Thus, there are two kinds of regular employees,

namely:

(1) those who are engaged to perform activities

which are usually necessary or desirable in the usual
business or trade of the employer; and

(2) those who have rendered at least one year of

service, whether continuous or broken, with respect to
the activity in which they are employed. “
Continued re-hiring not basis
for regularization of OFW
 The exigencies of their work necessitate
that they be employed on contractual basis
(Gu-muro vs vs Adorable, G.R. No. 160952,
Aug 20, 2004);
 For mutual interest of both seafarer and the
employer;
 Seafarer cannot stay for long and an indefinite
period of time at sea. (Ravago vs Esso Eastern
Marine, Ltd (G.R. 158324, Mar 14, 2005)
 Violation of statutory due
process nominal damages is due
to worker
Genuino vs NLRC, Citibank (Dec 4, 2007):
In Agabon, we explained:

The violation of the petitioners’ right to statutory due

process by the private respondent warrants the payment of
indemnity in the form of nominal damages. The amount of such
damages is addressed to the sound discretion of the court,
taking into account the relevant circumstances. Considering the
prevailing circumstances in the case at bar, we deem it proper to
fix it at P30,000.00. We believe this form of damages would
serve to deter employers from future violations of the statutory
due process rights of employees. At the very least, it provides a
vindication or recognition of this fundamental right granted to
the latter under the Labor Code and its Implementing Rules.
 Nominal damages Abbott Laboratories,
Phils., Cecille A. Terrible, Edwin D. Feist, Maria Olivia T. Yabut-Misa, Teresita C.
Bernardo, and Allan G. Alamazar Vs. Pearlie Ann F. Alcar

The rule is that when a valid cause for

termination exists, the procedural
infirmity attending the termination only
warrants the payment of nominal
damages. This was the principle laid
down in the landmark cases of Agabon v.
NLRC and Jaka Food Processing
Corporation v. Pacot
Whether worker may collect their wages during the
period between the Labor Arbiter’s order of
reinstatement pending appeal and the NLRC decision
overturning that of the Labor Arbiter ?

 In Garcia & Dumago vs PAL (G.R. 164856, Jan 20, 2009, En

Banc), the SC reaffirms the prevailing principle that even if the
order of reinstatement of the Labor Arbiter is reversed on
appeal, it is obligatory on the part of the employer to
reinstate and pay the wages of the dismissed employee
during the period of appeal until reversal by the higher
court.[21] It settles the view that the Labor Arbiter's order of
reinstatement is immediately executory and the employer has
to either re-admit them to work under the same terms and
conditions prevailing prior to their dismissal, or to reinstate
them in the payroll, and that failing to exercise the options in
the alternative, employer must pay the employee’s salaries.[22]

 [21] Air Phils vs Zamora G.R. No. 148247, August 7, 2006, 498
SCRA 59.
 [22] Kimberly Clark (Phils), Inc. v. Facundo, supra.
 Gross violation of CBA

 It must be remembered that a CBA is entered into

in order to foster stability and mutual cooperation
between labor and capital.
 An employer should not be allowed to rescind
unilaterally its CBA with the duly certified
bargaining agent it had previously contracted with,
and decide to bargain anew with a different group
if there is no legitimate reason for doing so and
without first following the proper procedure.
(Employees’ Union of Bayer Philippines –FFW
vs Bayer Phil 162943, Dec 6, 2010)
 RTW immediately executory
Univ. of San Augustine Empl. Union-FFW vs CA & USA (March
28, 2006):
Article 263(g) of the Labor Code, supra, is explicit that if a strike has already
taken place at the time of assumption of jurisdiction or certification, all
striking or locked out employees shall immediately return to work and the
employer shall immediately resume operations and readmit all workers
under the same terms and conditions prevailing before the strike or lock-
out. xxx On the other hand, the tenor of these ponencias[1][18] indicates
an almost instantaneous or automatic compliance for a striker to return to
work once an AJO has been duly served.
[1][18] Union of Filipro Employees vs. Nestle Philippines, Inc., G.R. Nos. 88710-12,
December 19, 1990, 192 SCRA 396; St. Scholastica’s College vs. Torres, G.R. No. 100158,
June 29, 1992, 210 SCRA 565; Telefunken Semiconductors Employees Union-FFW vs.
Court of Appeals, G.R. Nos. 143013-14, December 18, 2000, 348 SCRA 565; Grand
Boulevard Hotel vs. Genuine Labor Organization of Workers in Hotel, Restaurant and Allied
Industries (GLOWHRAIN), G.R. No. 153664, July 18, 2003, 406 SCRA 688.
RTW of AJO: Urgent matter
& Executory in Character
 Instructive is the ruling of this Court in Philippine
Airlines Employees Association v. Philippine Airlines,
Inc.[26]:
 The very nature of a return-to-work order issued in
a certified case lends itself to no other construction.
The certification attests to the urgency of the
matter, affecting as it does an industry
indispensable to the national interest. The order is
issued in the exercise of the court’s compulsory
power of arbitration, and therefore must be obeyed
until set aside. x x x.
 [26] 148 Phil. 386, 392 (1971).
 ULP under NLRC
 Indeed, in Silva v. National Labor Relations
Commission (G.R. No. 110226, June 19, 1997, 274
SCRA 159). The SC explained the correlations of
Article 248 (1) and Article 261 of the Labor Code to
mean that for a ULP case to be cognizable by the
Labor Arbiter, and for the NLRC to exercise
appellate jurisdiction thereon, the allegations in the
complaint must show prima facie the concurrence
of two things, namely:
– (1) gross violation of the CBA; and
– (2) the violation pertains to the economic provisions of
the CBA
EUBP-FFW vs Bayer Phils
(December 6, 2010)
 When an employer proceeds to
negotiate with a splinter union despite
the existence of its valid CBA with the
duly certified and exclusive bargaining
agent, the former indubitably
abandons its recognition of the latter
and terminates the entire CBA.
 Neither Party Shall Terminate
CBA during its lifetime

 Where there is a collective

bargaining agreement, the duty
to bargain collectively shall also
mean that neither party shall
terminate or modify such
agreement during its lifetime
(Article 253 of the Labor Code)
 Rules on Prescription

Tamayo vs Baterbonia, 165 SCRA 94:

 1. Offenses penalized under the Labor Code,
and the rules and regulations shall prescribed in
3 years (Art 296);
 2. All ULP shall be filed within one (1) year,
otherwise forever barred (Art 296); and
 3. All monetary claims shall be filed within 3
years (Art 297).
How about Illegal dismissal?

The SC said in Callanta vs Carnation

Phils, 145 SCRA 268, inter alia:
IIlegal dismissal case does not fall as an
offense under the Labor Code, but under
Art. 1146 of the Civil Code as “an injury
to the rights of the plaintiff” which under
the Code’s statute of limitations
prescribed in four (4) years.
SSS COVERAGE
Mandatory Coverage:
Self-Employed Individuals
• Professionals licensed under the
Professional Regulatory Commission
(doctors, lawyers, accountants, etc.)
• Single Proprietors and Business Owners
• Farmers and Fisher folk
• Professionals in the entertainment and
sports fields who are not under an
employer-employee contract
• Informal sector workers
SSS COVERAGE
Mandatory Coverage:

Employers
• Local and foreign
companies doing business
in the Philippines
 Voluntary Coverage:
Employees separated from Employment
• Former private sector employees or former self-employed
members
Overseas Filipino Workers (OFWs)
• A former employee or self-employed member who has an
existing SSS number is no longer required to register again
as an OFW-member
Non-Working Spouses
• The legal spouse of a currently employed and actively
paying SSS member
Employees of International Organizations and foreign
embassies in the Philippines
• Filipinos hired by foreign institutions may be voluntarily
covered under an administrative agreement
 EFFECTIVITY OF COVERAGE

Employer - On the first day of operation with at least

one (1) employee
Employee - On the first day of employment.
Self-employed - Upon first payment of contribution
OFW - Upon first payment of contribution
NWS - Upon first payment of contribution
Separated Member - On the month the member resumed
payment of contribution
Social Security PROGRAM
Social Security Benefits

Sickness – It is daily cash allowance granted to a person who is

unable to work due to sickness or injury.

Maternity – It is a daily cash allowance granted to a female

member who is unable to work due to childbirth or
miscarriage .

Disability – It is a cash benefit granted to a member who

suffered partial or total permanent disability.
 Retirement – It is a cash benefit paid to a member who
can no longer work due to old age.

Death – It is a cash benefit paid to the beneficiaries of a

deceased member, either as monthly pension or lump
sum amount.

Funeral Grant – It is a cash grant given to whoever pays for

the burial expenses of a deceased member or pensioner.
Do we have unemployment
insurance?
 Yes, but only in the public sector
(GSIS)
 None, in the private sector (SSS)
 UNEMPLOYMENT BENEFIT IN GSIS
LAW

The Unemployment benefit is paid when

a permanent government employee who
has paid the required 12 months
integrated contributions under RA 8291
is involuntarily separated from the
service as a result of the abolition of his
office or position usually resulting from
reorganization.
 How much is the unemployment benefit?

Unemployment benefit are in the form of monthly cash

payments equivalent to 50% of the average monthly
compensation (AMC). The duration of the benefit depends on
the length of service and ranges from 2 months to a maximum
of 6 months. Unemployment benefits shall be paid in
accordance with the following schedule
Contributions Made Benefit Duration
1 year but less than 3 years 2 months

3 or more years, but less than 6 years 3 months

6 or more years, but less than 9 years 4 months

9 or more years, but less than 11 years 5 months
11 or more years, but less than 15 years 6 months
 Bar Question (2014)
XIII. Don Luis, a widower, lived alone in a house with a
large garden. One day, he noticed that the plants
in his garden needed trimming. He remembered
that Lando, a 17-year old out-of-school youth, had
contacted him in church the other day looking for
work. He contacted Lando who immediately
attended to Don Luis’s garden and finished the job
in three days. (4%)
 Is there an employer-employee relationship
between Don Luis and Lando?
 Does Don Luis need to register Lando with the
Social Security System(SSS)
 Suggested Answer

 No. There is no employee-employer relation

between Don Luis and Lando as the work of
Lando in the garden is only for three days.
Though Lando performed domestic work, the
same is one “occasionally or sporadically and
not on an occupational basis.” Such is
excluded in domestic work as employment
(Section 4 [c] of R.A. 10361)
 No. As there is no employee-employer
relationship between them as shown above.
 EC PROGRAM
Employees Compensation Benefits for work-related
sickness or injury resulting in disability or death
Income cash benefit for:

• Temporary total disability or sickness– an income

cash benefit equivalent to 90% of the average daily salary
credit not to exceed P200, payable for a period not to
exceed 120 days (for sickness) and 240 days (for disability).

• Permanent total disability –this benefit is a monthly

pension for life plus 10% for each of the five dependent
children starting from the youngest.

• Permanent partial disability

• Death and funeral grant
 Survivorship Pension

Dycaico vs SSS et.al, November 30, 2005:

 The SSS denied the petitioner’s application for survivor’s
pension on the sole ground that she was not the legal
spouse of Bonifacio “as of the date of his retirement”, hence,
she could not be considered as his primary beneficiary
under Section 12 of Rep. Act No. 8282. Is SSS correct?
 The SC holds that the proviso “as of the date of retirement”
in section 12-B(d) of Rep. Act No. 8282, which qualifies the
term “primary beneficiaries”, is unconstitutional for it violates
the due process and equal protection clauses of the
Constitution.
 SS pension vested right
Dycaico vs SSS et.al, November 30, 2005:
 A pension plan when employee participation is
mandatory, the prevailing view is that employees
have contractual or vested rights in the pension
where the pension is part of the terms of
employment. Thus, it was ruled that “a vested right
to benefits that is protected by due process clause”
and “retirees enjoy a protected property interest
whenever they acquire a right to immediate
payment under existing law”.
 REPUBLIC ACT NO. 7699

PORTABILITY LAW
All creditable services or periods of contributions made
continuously or in the aggregate of a worker under either the
GSIS or SSS shall be added up and considered for purposes of
eligibility and computation of benefits.
All services rendered or contributions paid by a member
personally and those that were paid by the employers to either
SSS or GSIS shall be considered in the computation of benefits
which may be claimed from SSS or GSIS. However, the amount
of benefits to be paid by one System shall be in proportion to the
services rendered / periods of contributions made to that
System.
 Bar Question (2014)

XIV
 Luisito has been working with Lima Land for 20
years. Wanting to work in the public sector, Luisito
applied with and was offered a job at Livecor.
Before accepting the offer, he wanted to consult
you whether the payments that he and Lima Land
had made to the Social Security System (SSS) can
be transferred or credited to the Government
Service Insurance System (GSIS). What would you
advice? (4%)
 Suggested Anwer
 Section 3 of Republic Act No. 7699 reads:
 “SEC 3.Xxx, a covered worker who transfer(s)
employment from one sector to another or is
employed in both sectors, shall have his creditable
services or contributions in both systems credited to
his service or contribution record in each of the
Systems and shall be totalized for purposes of old-
age, disability, survivorship, and other benefits in
case the covered employee does not qualify for
such benefits in either or both Systems without
totalization xxx”

 Suggested Answer

 His 20 years of service which is

equivalent to 240 months of
contributions is more than enough to
qualify him to retire under the SSS
Law. The SSS Law only requires a
minimum of 120 months of
contribution(Sec 12-B , RA 8282).
 Is a biological mom entitled to
EC benefits after adoption?
 The ECC denied petitioner’s claim on the
ground that she is no longer the deceased’s
legitimate parent, as required by the
implementing rules. As held by the ECC, the
adoption decree severed the relation
between John and petitioner, effectively
divesting her of the status of a legitimate
parent, and, consequently, that of being a
secondary beneficiary.
Is a biological mom entitled to
EC benefits after adoption?
 Yes! the term “parents” in the phrase
“dependent parents” in Article 167 (j) of the
Labor Code is used and ought to be taken in
its general sense and cannot be unduly
limited to “legitimate parents” as what the
ECC did. The phrase “dependent parents”
should, therefore, include all parents,
whether legitimate or illegitimate and
whether by nature or by adoption. (Bernadina
Bartolome vs SSS & Scanmar Maritime Services,
G.R. No. 192531, November 12, 2014)
 Retrenchment or
Redundancy (Bar 2014)
 IX. Luisa Court is a popular chain of motels. It
employs over 30 Chambermaids who, among
others, help clean and maintain the rooms. These
chambermaids are part of the union rank-and-file
employees which has an existing collective
bargaining agreement (CBA) with the company.
While the CBA was in force, Luisa Court decided to
abolish the position of chambermaids and
outsource the cleaning of the rooms to Malinis
Janitorial Services, a bona fide independent
contractor which has invested in substantial
equipment and sufficient manpower
 Redundancy or
retrenchment (Bar 2014)
 The chambermaids filed a case of
illegal dismissal against Luisa Court. In
response, the company argued that
the decision to outsource resulted
from the new management’s Labor
Law –directive to streamline
operations and save on costs. If you
were the Labor Arbiter assigned to the
case, how would you decide? (4%)
 Suggested Answer

 I will declare the termination of

Chambermaids illegal. Under Article 248
[c]of the Labor Code, it is unlawful for the
employer to contract out service or
functions being performed by union member
when such will interfere with restrain and
coerce employees in the exercise of their
right to self-organization (see Eugene
Arabit and FFW vs Jardine Pacific Finance,
April 21, 2014).
Redundancy/Retrenchment

 Eugene S. Arabit and Federation of Free

Workers. Vs. Jardine Pacific Finance, Inc.
G.R. No. 188190. April 21, 2014

 The SC has already ruled before that

retrenchment and redundancy are two
different concepts; they are not
synonymous; thus, they should not be
used interchangeably.
 Redundancy
 Redundancy exists where the services of an
employee are in excess of what is reasonably
demanded by the actual requirements of the
enterprise. A position is redundant where it is
superfluous, and superfluity of a position or
positions may be the outcome of a number of
factors, such as over hiring of workers, decreased
volume of business, or dropping of a particular
product line or service activity previously
manufactured or undertaken by the enterprise
 Retrenchment
 Retrenchment, on the other hand, is used
interchangeably with the term “lay-off.” It is the
termination of employment initiated by the
employer through no fault of the employee’s and
without prejudice to the latter, resorted to by
management during periods of business
recession, industrial depression, or seasonal
fluctuations, or during lulls occasioned by lack of
orders, shortage of materials, conversion of the
plant for a new production program or the
introduction of new methods or more efficient
machinery, or of automation.
Muchas Gracias!

Thank you!