Art. 211. Declaration of Policy.

“Labor Relations” refers to the interactions between

employer and employees or their representatives and
A. It is the policy of the State: the mechanism by which the standards and other terms
a. To promote and emphasize the primacy of free and conditions of employment are negotiated, adjusted
collective bargaining and negotiations, including and enforced.
voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
EMPLOYER-EMPLOYEE RELATIONSHIP
b. To promote free trade unionism as an instrument for
the enhancement of democracy and the promotion of The existence of employer-employee relationship is
social justice and development; determined by the presence of the following elements:

c. To foster the free and voluntary organization of a (a) selection and engagement of the employee;
strong and united labor movement; (b) payment of wages;
(c) power to dismiss; and
d. To promote the enlightenment of workers concerning (d) power to control the employee’s conduct.
their rights and obligations as union members and as The fourth is the most important element.
employees;
WHO ARE EMPLOYEES AND EMPLOYERS?
e. To provide an adequate administrative machinery for
the expeditious settlement of labor or industrial “Employee" includes any person in the employ of an
disputes; employer. The term shall not be limited to the
employees of a particular employer, unless the Code so
f. To ensure a stable but dynamic and just industrial explicitly states. It shall include any individual whose
peace; and work has ceased as a result of or in connection with any
g. To ensure the participation of workers in decision and current labor dispute or because of any unfair labor
policy-making processes affecting their rights, duties practice if he has not obtained any other substantially
and welfare. equivalent and regular employment. (Art. 212(f), LC)

B. To encourage a truly democratic method of “Employer” refers to any person or entity who employs
regulating the relations between the employers and the services of others, one for whom employees work
employees by means of agreements freely entered into and who pays their wages or salaries. An employer
through collective bargaining, no court or includes any person directly or indirectly acting in the
administrative agency or official shall have the power to interest of an employer. It shall also refer to the
set or fix wages, rates of pay, hours of work or other enterprise where a labor organization operates or seeks
terms and conditions of employment, except as to operate. (Art. 212(e), LC)
otherwise provided under this Code. (As amended by EMPLOYEES UNDER LABOR RELATIONS
Section 3, Republic Act No. 6715, March 21, 1989)
1. Managerial employee
 The person who is vested with the
LABOR STANDARDS V. LABOR RELATIONS
powers or prerogatives to lay down and
“Labor Standards” refers to the minimum terms and execute management policies and/or to
conditions of employment which employees are legally hire, transfer, suspend, lay-off, recall,
entitled to and employers must comply with. discharge, assign or discipline Ees.

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 2. Supervisory employee The test of whether a labor controversy comes within
 The person who effectively the definition of a labor dispute depends on whether it
recommends such managerial actions; involves or concerns terms, conditions of employment
provided, that the recommendation is or representation.
not merely routinary or clerical in
The existence of a labor dispute is not negative by the
nature but requires the use of
fact that the plaintiffs and defendants do not stand in
independent judgment
the proximate relation of employer and employee.
3. Rank-and-File employees
 Those persons who are neither KINDS OF LABOR DISPUTES
managerial nor supervisory Ees are
considered rank-and-file. [Art. 219(m), A. LABOR STANDARDS DISPUTES
LC] They perform job that is routinary (1) Compensation
or clerical in nature. (2) Benefits
(3) Working conditions
B. LABOR RELATIONS DISPUTES
(1) Organizational right dispute/ULP
(2) Bargaining disputes
LABOR DISPUTE (3) Contract administration or personnel policy
disputes
DEFINITION (4) Employment tenure disputes
“Labor Dispute” includes any controversy or matter
concerning terms and conditions of employment or the
association or representation of persons in negotiating, JURISDICTION AND REMEDIES
fixing, maintaining, changing or arranging the terms and
Art. 217. Jurisdiction of the Labor Arbiters and the
conditions of employment, regardless of whether the
Commission.
disputants stand in the proximate relation of employer
and employee. a. Except as otherwise provided under this Code, the
Labor Arbiters shall have original and exclusive
NATURE
jurisdiction to hear and decide, within thirty (30)
Dispute arises from employer-employee relationship, calendar days after the submission of the case by the
although disputants need not be proximately parties for decision without extension, even in the
“employee” or “employer” of the other. absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-
SUBJECT MATTER agricultural:
Dispute concerns: 1. Unfair labor practice cases;
(1) terms or conditions of employment; or 2. Termination disputes;
(2) association or representation of persons in 3. If accompanied with a claim for reinstatement,
negotiating, fixing, maintaining, or changing terms or those cases that workers may file involving wages,
conditions of employment rates of pay, hours of work and other terms and
TEST conditions of employment;

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 4. Claims for actual, moral, exemplary and other 3. Enforcement of compromise agreements when
forms of damages arising from the employer- there is non-compliance by any of the parties
employee relations; pursuant to Article 227 of the Labor Code, as
amended; and
5. Cases arising from any violation of Article 264 of 4. Other cases as may be provided by law
this Code, including questions involving the legality
of strikes and lockouts; and NATURE OF THE CASES WHICH THE LABOR ARBITER
MAY RESOLVE
6. Except claims for Employees Compensation,
Social Security, Medicare and maternity benefits, all The cases that the LA can hear and decide are
other claims arising from employer-employee employment related. Where no Er-Ee relationship exists
relations, including those of persons in domestic or between the parties and no issue is involved which may
household service, involving an amount exceeding be resolved by reference to the LC, other labor statutes,
five thousand pesos (P5,000.00) regardless of or any CBA, it is the RTC that has jurisdiction (Lapanday
whether accompanied with a claim for Agricultural Dev’t. Corp v. CA, G.R. No. 112139, January
reinstatement. 31, 2000)

b. The Commission shall have exclusive appellate The LA has jurisdiction over controversies involving Ers
jurisdiction over all cases decided by Labor Arbiters. and Ees only if there is a “reasonable causal connection”
between the claim asserted and the ErEe relations.
c. Cases arising from the interpretation or Absent such link, the complaint is cognizable by the
implementation of collective bargaining agreements regular court (Eviota v. CA, G.R. No. 152121, July 29,
and those arising from the interpretation or 2003)
enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same CASES WHICH DO NOT FALL UNDER THE JURISDICTION
to the grievance machinery and voluntary arbitration as OF THE LABOR ARBITERS
may be provided in said agreements. (As amended by
Section 9, Republic Act No. 6715, March 21, 1989) 1. Foreign governments
2. International agencies
3. Intra-corporate disputes which fall under P.D.
ADDITIONAL CASES 902-A and now falls under the jurisdiction of
the regular courts pursuant to the new
To the 6 kinds of cases mentioned in Article 217, the Securities Regulation Code
following should be added: 4. Executing money claims against government
1. Money claims arising out of employer- 5. Cases involving GOCCs with original charters
employee relationship or by virtue of any law or which are governed by civil service law, rules or
contract, involving Filipino workers for overseas regulations
deployment, including claims for actual, moral, 6. Local water district except where NLRC
exemplary and other forms of damages, as well jurisdiction is invoked
as employment termination of OFWs; 7. The aggregate money claim does not exceed
2. Wage distortion disputes in unorganized P5,000 and without claim for reinstatement
establishments not voluntarily settled by the 8. Claim of Ee for cash prize under the Innovation
parties pursuant to Republic Act No. 6727, as Program of the company, although arising from
reflected in Article 124; Er-Ee relationship, is one requiring application

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 of general civil law on contracts which is within 1. The State affirms labor as a primary social
the jurisdiction of the regular courts economic force. It shall protect the rights of the
9. Cause of action based on quasi-delict or tort workers and promote their welfare. (Art. II, Sec.
which has no reasonable connection with any of 18)
the claims enumerated in Art.217, LC 2. The State is required to guarantee the rights of
10. Complaint arising from violation of training all workers to self-organization, CB and
agreement negotiations, and peaceful concerted activities,
including the right to strike in accordance with
RIGHT TO SELF-ORGANIZATION law. (Art. XIII, Sec. 3)
It is the right of workers and Ees to form, join or assist 3. The right of the people, including those
unions, organizations or associations for purposes of CB employed in the public and private sectors, to
and negotiation and for mutual aid and protection. It form unions, associations, or societies for
also refers to the right to engage in peaceful concerted purposes not contrary to law, shall not be
activities or to participate in policy and decision-making abridged. (Art. III, Sec. 8)
processes affecting their rights and benefits. 4. The civil service embraces all branches,
subdivisions, instrumentalities, and agencies of
WHY WORKERS ORGANIZE? the Government, including government-owned
or controlled corporations with original
Self-help through economic action necessarily requires
charters. [Art. IX-B, Sec. 2(1)]
increasing the bargaining power of employees; hence
one of the basic purposes of a labor union is to EXTENT OF THE RIGHT TO SELF-ORGANIZATION
eliminate competition among employees in the labor
market. It includes the following rights:

Three other human desires should be noted among the 1. To form, join and assist labor organizations for
forces that led workers to organize: the purpose of CB through representatives of
their own choosing; and
(1) One is the desire for job security. 2. To engage in lawful and concerted activities for
the purpose of CB or for their mutual aid and
(2) Employees wished to substitute what we should
protection .(Art. 253, LC)
term “the rule of law” for the arbitrary and often
capricious exercise of power by the boss. WHO MAY UNIONIZE FOR THE PURPOSE OF
COLLECTIVE BARGAINING
(3) Finally, unions helped to give employees a sense of
participation in the business enterprises of which they 1. All persons employed in commercial, industrial
are part—a function of labor unions which became and agricultural enterprises;
important as organizations spread into mass production 2. Employees of government-owned and/or
industries. controlled corporation, without original
charters established under the Corporation
The union is the recognized instrumentality and
Code;
mouthpiece of the laborers.
3. Workers in religious, charitable, medical, or
educational institutions, whether operating for
CONSTITUTIONAL PROVISIONS THAT PROTECT THE profit or not;
RIGHT TO SELF-ORGANIZATION 4. Supervisors;

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  Supervisory Ees shall not be eligible for (1) Assist or act in a confidential
membership in a labor organization of capacity
the rank-and-file Ees but may join, (2) Formulate, determine, an
assist or form separate labor effectuate management policies in
organizations of their own. the field of labor relations
 The rank and file union and the  RATIONALE BEHIND THE EXCLUSION:
supervisors’ union operating within the Because if allowed to be affiliated with
same establishment may join the same a union, the ers might not be assured of
federation or national union their loyalty in view of evident conflict
5. Alien employees; of interests and the union can also
6. Working children; become company-dominated with the
7. Homeworkers; presence of managerial Ees in the union
8. Security Guards; membership. Having access to
9. Workers of Cooperatives; and confidential information, confidential
10. Employees of legitimate contractors not with Ees may also become the source of
the principal but with the contractors undue advantage. Said Ees may act as a
spy or spies of either party to a CBA
EES ELIGIBLE TO JOIN A LABOR ORGANIZATION FOR 6. Ees of cooperatives who are its members.
MUTUAL AID AND PROTECTION However they may form workers’ association
1. Ambulant workers 7. Non-ees
2. Intermittent workers 8. Government Ees, including GOCC’s with original
3. Intinerant workers charters
4. Self-employed people 9. Aliens without a valid working permit or aliens
5. Rural workers with working permits but are nationals of a
6. Those without definite Ers country which do not allow Filipinos to exercise
their right of self-organization and to join or
WHO CANNOT FORM, JOIN, AND ASSIST (XPN TO ART. assist labor organizations. [LC, Art. 284; D.O. No.
253) 9, Rule II, Sec. 2 (1997)]

1. High level or Managerial government ees

2. Ees of International organizations with
functional immunities BARGAINING UNIT
3. Managerial Ees – vested with the powers or "Bargaining Unit" refers to a group of employees
prerogatives to lay down and execute sharing mutual interests within a given employer unit,
management policies and/or to hire, transfer, comprised of all or less than all of the entire body of
suspend, lay-off, recall, discharge, assign or employees in the employer unit or any specific
discipline Ees. [LC, Art. 219 (m)] occupational or geographical grouping within such
4. Members of the AFP including the police employer unit.
officers, policemen, firemen, and jail guards
(E.O. 180, Sec. 4) TEST TO DETERMINITE THE APPROPRIATE BARGAINING
5. Confidential Ees who have access to UNIT
confidential labor relations information
1. Community or mutuality of interest doctrine
 Confidential ees are defined as those
who:
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  the employees sought to be
represented by the collective bargaining
agent must have community or
mutuality of interest in the terms of
employment and working conditions as
evinced by the type of work they
perform
 It is characterized by similarity of
employment status, same duties and
responsibilities and substantially similar
compensation and working conditions.
2. Globe doctrine/ globe election doctrine or will
of the members
 in defining the appropriate bargaining
unit, that in case where the company’s
production workers can be considered
either as a single bargaining unit
appropriate for the purpose of
collective bargaining or as three (3)
separate and distinct bargaining unit,
the determining factor is the desire of
the workers themselves. Consequently,
a certification election should be held
separately to choose which
representative union will be chosen by
the workers.
3. Collective bargaining history doctrine
 This doctrine puts premium to the prior
collective bargaining history or affinity
of the employees in determining the
appropriate bargaining unit.
 However, the existence of a prior
collective bargaining is neither decisive
nor conclusive in the determination of
what constitute an appropriate
bargaining unit
4. Employment status doctrine
 The determination of the appropriate
bargaining unit is based on the
employment status of the employees.

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